Plastics Europe Deutschland forecasts further growth in 2006

German polymer producers achieved new records in 2005 in both production volume and value, according to Plastics Europe Deutschland. Output increased by 2.9% to 18.0 million tonnes and the value by 5.3% to E21bn, within which domestic growth was lower by 3.5% to E8.5bn compared with export growth of 6.5% to E12.5bn. Export growth in volume was 3.2% higher at 12.16 million tonnes, while imports grew only 1.8% to 7.10 million tonnes.

The resulting positive trade balance grew 5.1% to 5.06m tonnes and by 15.6% in value to E7.84bn. In terms of materials, highest production growth was achieved by HDPE, which increased by 5.7% to 1.4 million tonnes, followed by PET with 4.7% growth to 0.45 million tonnes.

With the European Forecasting Network recently predicting 2.3% growth in the German gross national product (GNP) in 2006 and the ifo business climate index at its highest level for 15 years, PlasticsEurope Deutschland has a positive outlook for 2006. Chairman Dr Gьnter Hilke said it forecasts further 2.5 to 3.0% growth in plastics production volume in Germany this year and 3.5% average annual growth in demand up to 2010. Hilke’s optimism for 2006 is supported by double digit demand growth already achieved in some areas in January. March was said to have been a new record month for engineering plastics.

Referring to increasing investment by German companies in plastics production outside Germany, particularly China, Hilke said: “If we do not invest in China, others will, especially Asian companies and that would then later mean more exports to Europe.”