GCC succeeded in diversification in the plastics industry, says German trade fair organizer Messe Dusseldorf GmbH

Dubai, UAE, 1 June, 2010: German trade fair organizer Messe Dusseldorf GmbH has said that the region's response to 'K 2010', the largest international trade fair for the plastics and rubber industry, taking place from October 27 to November 3, 2010 in Dusseldorf, Germany, is more than 4 times bigger in terms of display area.  

This was revealed at a press conference hosted by Messe Dusseldorf in Dubai today (Tuesday, June, 1, 2010). The German company said that GCC states, especially the UAE, have succeeded in diversifying its economy by investing heavily in the plastics industry.

The company said the UAE plastics industry growth was fueled by industrial modernization initiatives spearheaded by the GCC governments. The Gulf region is also reducing its dependence on imports to plastics by enhancing local manufacturing, and is heading towards the direction of self sufficiency in the near future.

"UAE exhibitors will present their products over an exhibition space of 549 sq. m. compared to 129 sq. m. in 2007. The 242,000 trade visitors who attended the event three years ago came from nearly 100 countries. 57% of them were from outside Germany, among them about 700 experts from the UAE. As a key player in the plastics and rubber industry in the Gulf region, Dubai is an essential stop for us to announce the trade fair and discuss potential opportunities," said Ludwig Koenig, Director, Messe Duesseldorf GmbH.

According to the recent Dubai Export Development Corporation 2009 report, the plastics industry is one of the leading manufacturing sectors in Dubai, with around 90 industrial establishments in operation, producing products like bottle and containers, pipes and fittings, bags, doors and windows, caps and lids, foils and utensils. It is estimated that the value of plastic annual production in Dubai is around AED 1.3 billion. This estimate is based on exports of AED 976 million with the assumption that 75% of the production is exported.

The plastics industry is one of the high value added industries in Dubai contributing 50% of its production value in net value added components. Outsourced services like design and manufacturing services make 9% of the production value.

The plastics industry in Dubai has many positive factors capable of driving its continuous growth. These factors include the low cost of transport of some products and the availability of the raw materials from the GCC.

 Ulrich Reifenhaeuser, Chairman of the K 2010 Exhibitors' Committee, added: "The GCC is heading towards reaching a stage where there is self sufficiency in the production of plastics for the region's domestic use.

Satish Khanna, General Manager of Al Fajer Information & Services, the regional partner of Messe Dusseldorf underscored the significance of the plastics sector saying that the proof of the growth of this sector is the larger UAE participation in K 2010 and the increasing demand of participants at the 10th edition of Arab Plast to be held from 8 to 11 January.

Khanna added: "Plastics industry now accounts for 10.6% of the total manufacturing in GCC, of which 4% investment is plastics and petrochemicals."

The employment in plastics and rubber makes up 4% of the total employment in manufacturing in the Gulf, according to Gulf Organisation for Industrial Consulting (GOIC). The total number of plastics industries in the UAE is 505 units, with an investment of $732 million as per GOIC statistics.

"Despite the unsettled global economy, companies from all continents have high hopes for K 2010. This is clearly reflected in the registration figures: all 19 available trade fair halls are fully booked, and not a single company of note is absent from the list of exhibitors. About 3,000 companies will be present at the flagship trade fair," added Reifenhaeuser.

At the Dusseldorf exhibition grounds, the leading suppliers will be presenting their products and solutions in many areas including raw materials, auxiliaries, semi-finished products, technical parts, reinforced plastics products, and machinery as well as equipment for the plastics and rubber industry.

Also present at the press conference was Craig Halgreen, Vice President Global Communications, Borouge Pte Ltd.

K 2010 Dusseldorf is the world's most important contact forum, not just for the entire plastics and rubber industry, but also for visitors from the major user segments. No other trade fair offers such opportunities for experts in the automotive, packaging, electrical engineering, electronics and communications industries, the construction sector, medical technology and aerospace to learn about the latest plastics and rubber applications and experience the technical innovations of a dynamic sector.

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© Press Release 2010