Paris, April 21 st 2015 PRESS RELEASE Plastics Packaging organisations call for new investment in European Polymer Production and for an early restoration of normal supplies The four largest national organisations 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. - no announcements of any return to normal supply conditions or on the trends ahead. An urgent restoration of normal supply is imperative, say the four organisations, 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 organisations say that unless we have security of supply for our raw materials then we do not have 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, say the four organisations. They say that Europe is a global leader and powerhouse of innovation not only in plastics packaging technology but also in waste management organisation and techniques such as recycling and the incorporation of recyclate into plastics packaging products. The development of this expertise here in Europe can support the stronger evolution of plastics packaging markets and indeed the acceptance of plastics packaging around the world. For this we need the polymer producers to invest in the production of their raw materials here in Europe. The four organisations also paid tribute to plastics packaging converters who have been skilfully managing this situation of interrupted supply and higher prices in the last months. This has been a high wire balancing act amid conditions not witnessed for many years, they say. Based in London, the British Plastics Federation is the trade association for the UK plastics industry. With some 470 member firms it represents raw material suppliers, both polymers and additives, plastics processors, machinery and equipment suppliers to the industry, recyclers and service providers. See www.bpf.co.uk The Packaging and Films Association (PAFA) represents producers and suppliers of plastic packaging and flexible packaging to the UK market. See www.pafa.org.uk/ ELIPSO represents plastic and flexible packaging manufacturers in France. Its 130 members give it 75- 90% representativeness depending on the sector of activity. The plastic and flexible packaging industries in France employ 38,000 people in 400 companies, with total annual revenue of €7.6 billion. www.elipso.org Press contact: Françoise Gerardi, Tel:+33 (0)6 80 45 38 59/Christophe Morvan: [email protected] Industrievereinigung Kunststoffverpackungen e.V. represents with over 300 members 80 % of the German plastics packaging market. The plastics packaging companies in Germany employ more than 90.000 people, with total annual turnover of about 13 billion euros. IK is involved with the interests of the entire plastics packaging industry in Germany. - Contact: Heike Richter, Tel: +49 (0)6172 / 92 66 68, [email protected]
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