Page 63 - Plastics News June 2023

ARTICLE

limau, Pulau Ayer Chawan, Pulau Ayer Merbau, Pulau Seraya, Pulau Sakra, Pulau Pesek, and Pulau Pesek Kecil) to cut
logistic costs for petrochemical and chemical factories. Marine facilities (jetties and berthing), waste treatment, ware-
housing, fire fighting, medical and emergency response, roads and drain infrastructure, and service pipelines are shared
by island companies. Service pipelines provide easy access to Jurong Island's common service corridor for all firms. By
"plugging in" to the service pipeline, enterprises can easily transfer raw materials, finished products, and utilities services
(SembCorp Utilities Terminals helps to control the flow to companies). The strategic benefit of Jurong Island is "plug
and play" capacity. Companies can save 20% on capital costs by sharing facilities, according to Economic Development
Board. The "plug and play" capability will allow new businesses to be set up faster and eliminate the need for complicated
infrastructure development and hefty expenditures.
2. Demand Conditions
Sophisticated domestic demand drives innovation and competitive advantage. Therefore, petrochemical industry de-
mand must be domestic. Additionally, plastics, electronics, and pharmaceutical sectors drive demand. India has advan-
tage due to huge local demand of the petrochemicals products.
3. Related Industries
Logistics, utilities, engineering, and finance help petrochemical companies. They support petrochemical firms in Sin-
gapore. These related industries is working in harmony to share the cost of production and bring economics of scale.
4. Firm Rivalry Context
The number of enterprises in the same industry can indicate the rivalry context's efficacy. 70 enterprises operate on
Jurong Island. Not all companies make the same things. Due to its sophisticated concept and high capital intensity, few
companies have comparable product lines, limiting competition. Long-term supply agreements and product collabora-
tions are frequent in this business. Thus, this industry's domestic rivalry is limited by low product line duplication and
long-term supply agreements. The main integrated petrochemical feedstock suppliers like Shell, Exxon Mobil, and Sin-
gapore Refineries Company compete (SRC).
India’s Chemicals Cluster
Chemical clusters in India have the potential to become major players in the global chemical industry. However, there
is a need to address the challenges faced by these clusters and develop a sustainable and environmentally friendly ap-
proach to chemical manufacturing. In India, the Upstream and downstream chemicals product cluster and plastic cluster
export potential with respect to other sectors is low (Ref: Fig. 2). However, the demand and prospective for growth is
high considering the high consumption potential.
India position for Upstream chemicals products cluster export is comparatively good as compared to downstream
chemicals products and plastics clusters in the world. It shows that the India need to improve its position in world for
the cluster development in Chemicals and Petrochemicals sector (Refer: Fig. 1).

Fig 1: Countries position in Upstream, Downstream and Fig 2: Indian Exports share in world exports and
Plastic Clusters Exports for year 2019 in world (Source: its % change from 2005-2019 across different
ISC International Cluster Competitiveness Project). clusters

June 2023 PLASTICS NEWS 63