Major packaging organizations call for new investment in European polymer production
The four largest national organizations representing the plastics packaging industry in Europe, Elipso (France), IK (Germany ), BPF and PAFA (UK) have called on polymer producers to invest more in European polymer production facilities.
This is set against a significantly worsening supply situation:
- Allocated supplies for polyethylene and polypropylene, with increasingly common supply interruptions.
- Rapidly escalating ethylene prices driving up the price of several polymers.
- Announcements of any return to normal supply conditions or on the trends ahead.
An urgent restoration of normal supply is imperative, say the four organizations, as the industry is in danger of losing credibility with its customers as we want to avert any possibility that they look to alternative materials to satisfy their needs.
The four organizations said that, unless the supply of raw materials is secure then it cannot be said of a truly sustainable plastics packaging industry, which has traditionally accounted for more than one third of Europe's polymer consumption.
It is understood that polymer producers are increasingly likely to invest in the faster growing markets of Asia and the Americas. Consequently there is unlikely to be significant investment forthcoming to support the European marketplace.
Ageing plant is more prone to breakdown and likely to suffer from the maintenance issues frequently cited as a cause of the "forces majeures". Only new investment will correct this situation, said the four organizations.
They said that Europe is a global leader and powerhouse of innovation not only in plastics packaging technology but also in waste management organization and techniques such as recycling and the incorporation of recyclate into plastics packaging products.
The development of this expertise in Europe can support the stronger evolution of plastics packaging markets and indeed the acceptance of plastics packaging around the world.
