FSK sees strength in the building and automotive sectors.

Trade organisation Fachverband Schaumkunststoffe (FSK) expects strong growth in the German polyurethane industry despite continuing competition.

It said there is a positive outlook in the building industry on account of energy saving applications using PU foam. FSK managing director Dr Hans-W. Scholz also expects the automotive sector to be “exciting” but this will depend on how automotive production develops at German and European locations.

Although the transfer of shoe making to Asia, especially China, is a trend that has been largely completed, FSK remains concerned about possible further transfer of “certain customer industries”.

Germany, with more than 700 processing companies and sales of around E6bn, is still the largest PU market. Around 800,000 tonnes of PU is processed in Germany out of a west European total of 2.7m tonnes, and this compares with 500,000 tonnes processed in east European countries.

Furniture and mattresses provide the largest PU use in Germany, accounting for sales of E1.7bn. Building and insulation is the next largest sector at E1.2bn, and then the automotive industry at E0.6bn.