Foreign sales grew more than 6%, while domestic sales were up by around 1%

German plastics converters increased their turnover last year by nearly 3% to E44.8bn, The GKV trade association said today that exports reached record levels in 2005 – growing 6.4% over the previous year to reach E15.8bn. Domestic sales, however, remained sluggish, up 1% to just below E30bn. In specific sectors, sales to the building industry declined by around 2%, but those to packaging saw 6% growth. Growth in 2006 is expected to be similar to last year.

“If we reach our present forecast of 2.5-3% in 2006, we will be satisfied,” said GKV president Reinhard Proske. German converters are not only producing more at home for export, but are increasingly manufacturing abroad – principally in Eastern Europe, according to Proske. This, he says, has led to a slight decline in employment in Germany.

GKV is concerned about the weak demand in the domestic market and low profitability – due to high raw material and energy costs. A survey among German processors last year showed that 41% expected declining profitability, against only 27% two years ago.