Trade association GKV announces a 5% increase in sales in the first half of 2004

German plastics converters achieved 5.3% growth in sales to E21.9bn in the first half 2004, according to industry association GKV. Total sales of E21.9bn were boosted by exports, which grew by 9.4%. Domestic sales grew more modestly at 3.3%. GKV points out that exports have continued to expand since they reached the 30% mark in 2001. Exports now account for 34% of the total.

However, GKV honorary president Gьnter Schwank said that high oil prices and strong Asian demand had increased the cost of raw materials significantly. “Plastics processors can only pass on price increases much more slowly than they have to accept on the purchase side,” he said.

As raw materials account for around 85% of the sales value achieved by plastics processors, many have been forced to accept a decline in profitability.