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Plastics industry cuts its way through the crisis
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Plastics industry cuts its way through the crisis
With the aim of representing the joint interests of plastics producers, processors and plastics machinery manufacturers the Plastics Trade Association “Wirtschaftsvereinigung Kunststoff (WVK)” has now been established. The international plastics industry was hit full tilt by the global economic crisis – however there are first signs of the atmosphere gradually brightening up again.
Founding members of the new Trade Association are PlasticsEurope as well as the Confederation of Plastics Processing Companies, the Plastics and Rubber Machinery Association within VDMA and the BKV Platform for Plastics and Recycling (Plattform für Kunststoff und Verwertung). In Germany alone the plastics industry posts annual sales worth over EUR 84 billion and employs approx. 394,000 staff in more than 3,700 firms making it one of the most important economic sectors. “The German plastics industry ranks second in Europe,“ said the Founding Chairman of WVK, Dr. Reinhard Proske, adding: “We intend to give the entire value chain for plastics a voice vis-à-vis policy makers and the public.” In content terms the WVK wants to focus primarily on the areas of energy and raw materials, the environment and consumer protection as well as research, innovation and education. Likewise, SME promotion will be at the centre of attention.
Plastics producers hit hard
The global financial and economic crisis has not only hit plastic manufacturers in Europe hard. Plastics are a broad-based material massively affected by the precarious situation of customers in various sectors of industry. “In 2008 we went on a roller-coaster ride – the likes of which we have never seen before – of first extremely high and then plungingly low raw material prices, a boom followed by partial crumbling of prices which came under pressure from both the supply and demand side.” By implication the plastics industry should also be strongly benefited by a cyclical upswing. However, nobody expects this to occur before 2010.
For the first quarter 2009 German plastics producers have posted a 35.5% drop in sales against the same period of the previous year. Plastics processing posted losses to the tune of EUR 19.8% for the same period and the turnover in plastics and rubber machinery manufacturing also dropped dramatically by 27%.
Free fall over
The drastic drops in turnover and output mark a historical break for the plastics industry that had been growing for decades. Nevertheless, the WKV warns against long-term pessimism. “Initial signs in the market point to a stabilisation of the situation, albeit at a very low level,” says Proske adding that a sustainable upswing cannot be expected this year yet.
Hans-Theodor Kutsch, the head of Albis Plastics GmbH and Vice-Chairman of PlasticsEurope, shares this view. In an interview he said that the far-advanced consolidation in plastics distribution would continue for some more time. While the trough had been reached levels were unsatisfactory. The free fall was over, he said mentioning the situation abroad, which was not equally dramatic everywhere: Sweden, Austria and many Eastern European countries had practically not been affected at all while England, Spain and France were hit severely. In his opinion the German business would pick up in the fourth quarter of this year. A major concern though is that the change-over from short-time work might cause redundancies in many companies. This would in turn entail a dramatic rise in unemployment figures – and, hence, impact buying behaviour. He hoped that domestic demand would pick up after the summer break already and expected export-driven demand from abroad to pick up again in 2010.
Plastics industry focuses on K 2010
Hopes are also being sparked by preparations for the next “K”, the No.1 trade fair for plastics and rubber worldwide: despite the current, difficult economic climate Messe Düsseldorf GmbH as the organiser of “K 2010” announces that all 19 exhibition halls are occupied. The renowned companies in the sector have confirmed their participation. A total of 3,000 exhibitors will participate in this leading international trade fair.
Delighted at these results, Werner Matthias Dornscheidt, CEO of Messe Düsseldorf, said: “Especially now where the plastic and rubber sectors face enormously sharp declines worldwide we greatly appreciate companies’ committed trust in their No. 1 event. We are all optimistic that the trough will be over by October next year and that the market will once again be represented in all its strength and diversity. We at Messe Düsseldorf will go that extra mile to make “K 2010” a contribution to an upswing in business for all enterprises involved.”
A Special Show “Visions in Polymers” organised by Plastics Europe e.V. and Messe Düsseldorf is planned to complement the ranges displayed by exhibitors. “K 2010” will be held from 27 October to 3 November 2010 in Düsseldorf.
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