Growth is picking up in Central Europe

Growth is picking up in Central Europe
By Roger Brownlie

Production of thermoplastic compounds is growing in Central Europe at the expense of sites in western Europe, according to a report from Applied Market Information. The rationalisation of production during difficult economic periods has led to fewer company start-ups in western Europe. And with an increasing trend for the relocation of plastics processing activity from the west to Central Europe, there has been growth in the latter region.

Poland, Hungary, Czech and Slovak Republic and Romania currently account for only 4% of total European volume but the region is developing fast, the report says. Many major west European companies such as Clariant, PolyOne, Rhodia, Lifocolor, Gabriel Chemie, Plastika Kritis, and Viba are investing in Central Europe either by joint ventures, acquisition or greenfield site development.

Between 2000 and 2002 output has increased by an average 3.4% a year in Central Europe. But Western Europe has demonstrated 0% overall growth with declines in demand for PVC products and little or no growth in colour compound consumption.