Germany plastics producers fight margin squeeze

08 May 2008 17:45  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s plastics producing industry remains on a growth path despite rising raw material costs pressures, industry association PlasticsEurope Deutschland said on Thursday.

 

Last year alone, the industry’s cost index for crude oil rose 11% from 2006 while plastics products prices were up only 3.5%, hurting producer margins, it said.

 

However, producers remained cautiously optimistic about their outlook, mainly because there were no substitutes for its plastics, according to association head Gunter Hilken.

 

In particular, plastics were a relatively energy-efficient product, which was important in the context of growing fears about global warming, said Hilken.

 

Rather than being a problem, plastics were part in the solution in the climate change debate, he added.

 

For 2007, Germany’s plastics producers boosted production 2.8% to 20.8m tonnes and sales by 7.4% to €23.3bn ($35.8bn).

 

Export volumes rose 4.9% to 13.2m tonnes while import volumes were up 5.3% to 8.5m tonnes.

 

($1 = €0.65)

 

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By: Stefan Baumgarten
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