06 April 2009 23:19 [Source: ICIS news]
HOUSTON (ICIS news)--Economic struggles within the US automotive industry may force US plastics suppliers to lower costs or improve technology in order to maintain profits, a university research scientist said on Monday.
Delphi, a major ?xml:namespace>
Should Delphi be unsuccessful in securing financing, the company could be forced to sell off several of its divisions to foreign rivals, according to Bruce Belzowski, assistant research scientist for the
That, in turn, would complicate matters for downstream plastics companies with established relationships with
“I think there would be some [initial] opportunities for the current plastics suppliers to Delphi to continue to supply the company that purchases one of the Delphi divisions because
“But in the long-term, I think plastics suppliers would need to prove their value to the new company through cost advantages and/or new innovation in order to keep the business,” he added.Each US-made automobile uses 331 lb (150 kg) of plastics, according to Kevin Swift, chief economist of the American Chemistry Council (ACC). Moreover, the ACC estimates that each vehicle contains nearly $2,700 (€1,998) worth of chemical products or chemical processing value.
($1 = €0.74)
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