Turnover in the domestic market has returned to the long-term trend

Turnover in the domestic market has returned to the long-term trend

German plastics processors recorded 3.6% growth in turnover during 2003 to E42.154bn, according to final figures published by trade association GKV. This is a little higher than the 3% growth forecast by GKV in January, and when falling prices for plastic goods are taken into account, the real growth was 3.9%, it said.

Looking ahead, GKV is sticking with its earlier forecast of 2.5-3% growth in turnover in 2004. GKV president Reinhard Proske said that clouds on the horizon include tight regulation of plastics processors which prevents them running their businesses optimally.

The strong euro is a problem for his own company that exports 60-65% of its injection moulded chip card products to eastern Europe, where calculations are traditionally made in US dollars rather than euros. Those customers are seeing a 30% rise in prices just on account of the strong euro, he said.

Despite the difficulties seen ahead, plastics processing in Germany has returned to its long-term growth pattern. After two years of declining turnover in the domestic market, it once again grew in 2003, by 2.4% to E28.304bn. However, with continued uncertainty about social and economic policy among German consumers, exports still grew faster in 2003, by 6.1% to E13.850bn.