The number of injection moulders operating in western Europe could drop by 10% by 2010, according to AMI.
The UK research group is predicting further rationalisation in a new report, following a 9% decline in companies from 1999 to 2005. Injection moulding is an 8.6 million tonne polymer market in Europe, worth more than E45bn, but moulders face weak demand, rising costs, price pressures and increased competition from overseas.
AMI believes the market will continue growing by 2% per year in volume terms, but some sectors will see relocation to lower cost countries in Asia. The most susceptible sectors are electrical components, PET preforms, portable domestic appliances, household goods and toys.
In its report, AMI calculates there are around 16,500 injection moulding sites in western and central Europe, operating more than 220,000 machines. Italy has the most sites (5,115), followed by Germany (3,200), France (1,585) and the UK (1,550).
In central Europe, Poland is expected to attract the highest levels of foreign direct investment, although automotive and appliance investment in Hungary and the Czech and Slovak republics will also support injection moulding.
