PlasticsEurope Deutschland Says Its Members Were 'positively Surprised' in 2010

PlasticsEurope Deutschland says its members were 'positively surprised’ in 2010, as production volume, turnover and exports and imports all increased during the year. At a briefing at the annual conference, the association reported increases in production volume (up 18.8% to 20m tonnes) and turnover (up 29.4% to € 23.4bn). Exports were up 11.9% to 12.2m tonnes, giving this market a value of €20.4bn, while imports grew 16% to 8.4m tonnes (€ 12.8bn). President Dr Wolfgang Hapke forecast a cautious "2% plus" growth in turnover in 2011, suggesting that margins are unlikely to rise over the full year. Plastics production and consumption traditionally grows faster than the gross national product, he added. Hapke said a delay in materials coming into Europe from plants in the Middle East, as well as high material demand in China, had contributed to the growth. The strong recovery in the automotive industry and demand from the electrical & electronics industries were also contributing factors. However, bottlenecks developed for several types of plastics materials, leading to shortages and lengthening delivery times, Producers ran down production during the recession large chemical plants take their time in ramping up production once strong demand returns, said Hapke. Looking forward, Hapke said the plastics market is shifting towards Asia. He said: "The landscape in the petrochemical industry will change considerable with these new highly modern plants and their low-cost raw material base. We are standing before a far-reaching change. No-one today wants to predict which plastics will still be produced in Germany in the medium term, but in any case the competitive pressure will certainly not diminish". Hapke continued by saying there will also be a shift within Europe from western to central and eastern Europe. "Europe, and especially Germany, has to understand how to use its advantage as an innovation and technology location, " he concluded. Source: Plastics News