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Future Of Plastics And Rubber
2009-10-14

Future of plastics and rubber kit sales bleak

European sales of core plastics and rubber manufacturing machinery are expected to plummet 30% this year, due to ailing demand from the automotive sector and falling packaging demand.

 

According to figures released by Euromap, the association for plastics and rubber machinery, production is expected to drop 22% in 2009 to about EUR 13.6bn.


Although packaging has contributed to the slump, Euromap said that demand from the consumer packaging market segment had fared better than industrial packaging and "medical applications proved to be a constantly growing market for plastics".


Bernhard Merki, Euromap's president, said: "In autumn 2009, new order income for plastics and rubber machinery is substantially down in all member countries of the European association. The use of production capacities is much lower than last year."


A fall in demand for cars hit the plastics and rubber industry the hardest, although its decline was tempered somewhat by national car scrappage schemes. The construction industry was also weak, except for insulation.

However, Euromap was cautiously optimistic about the prospects for 2010 and hoped that the slump has "bottomed out". It added: "Sentiment and business expectations in the plastics and rubber converting industry have improved recently".

Merki said: "The demand for plastics and rubber machines slowly seems to be on the increase again, and yet financing remains an obstacle. The industry expects an upward trend in time for the K 2010 [event] at the latest."

K 2010 takes place in Düsseldorf next year, between 27 October and 3 November.

This year's decline contrasts starkly with 2008's 1.2% hike in total production and 1.5% increase in exports. Core machinery manufacturing reflected that increase, while moulds and dies were up 1% and 1.5% respectively. Only flexographic printing machines declined in 2008, down 7%.

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