PET innovation investment vital to ensure growth - M&G Group

26 November 2009 12:40  [Source: ICIS news]

AMSTERDAM (ICIS news)--The polyethylene terephthalate (PET) industry needs to increase investment in the research and development of specialty products and new end-use applications to provide future growth opportunities, M&G Group's sales and technical services manager said on Thursday.

“These will be the key to penetrate new markets and to meet the future needs of downstream users,” Roberto Bertaggia from the Italian PET producer said at the 8th European Aromatics & Derivatives Conference in Amsterdam.

Bertaggia added that demand growth fell by 3% in the EU in 2008 and it was estimated fall a further 2% this year on the maturing of the market, the reduction of weight in containers and the economic crisis.

“New opportunities exist, but they will take time to develop,” he said.

EU producers had been losing market share to imports from Asia and the Middle East, said Bertaggia, and EU producers’ market share fell from 83.7% in 2007 to 72.6% in 2009.

The decline in growth together with reduced profitability had caused severe rationalisation of European suppliers and four plants had been shut in Europe since mid-2008, he added.

In addition, the number of PET producers in Europe had decline from 14 in 2004 to eight. “In our opinion, rationalisation has still some way to go,” added Bertaggia.

The 8th European Aromatics & Derivatives Conference, jointly organised by ICIS and International e-Chem, takes place from Wednesday 25 November to Thursday 26 November 2009.

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By: Peter Taffe
+44 20 8652 3214

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