Double figure dip for German plastics packaging
Germany’s plastics packaging industry saw sales decline by around 10% in 2009 to €12.5bn, according to the latest status report from industry association Industrievereinigung Kunststoffverpackungen (IK).
By Chris Smith
Posted 19 February 2010
According to the association, production volumes declined by around 8% on 2008 to 3.8m tonnes for last year.
Industrial packaging was the hardest hit, with consumer oriented packaging markets seeing stable or slightly positive growth, said IK. Sales to the domestic market held up better than exports.
IK said, however, that the last two months of the year saw a clear increase in turnover across its membership. It said this, together with confirmation of a positive trend in its 2010 first quarter trend monitor, gives “reason for optimism” for 2010.
There are some clouds on the horizon, however, with materials price instability prime among them. “Previously reliable indicators for price development aren’t valid any more,” the association said in a statement.
Volatility in materials price markets has been worsened by Europe’s move to becoming a net polyethylene importer, according to IK. It says the resulting dependency on international market developments, especially in the Far East, is causing fluctuations that are hard to predict and pricing that is hard to trace.
The association is, however, more confident that its members will be able to access funding to maintain and improve their businesses in 2010.
In the review statement, IK managing director Ulf Kelterborn welcomed Deutsche Bank’s announcement of €300m of funding for medium-sized German companies.
“This is a sensible way to support company equity and, therefore, is a good way forward in this situation,” he said.
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