Growing threats for the plastics converting industry: Companies at risk due to multiple crisis
Never-ending price increases, a still persistent difficult supply situation and rising ‘Force Majeure’ statements in the third quarter of 2022: The PVC industry is continuously confronted with several crisis – partly beginning to endanger existences in the plastics converting industry in Europe.
The plastics converting industry is hard hit by the multiples crisis in Europe: Compared to the beginning of the year, converters must pay up to 750 % higher prices for electricity. The never-ending price increases go hand in hand with the still difficult supply situation for raw materials. Consequences are temporary shutdowns of production plants which affects the entire PVC value chain of the plastics industry badly. Urgently planned and needed investments for example in innovative products as well as recycling technologies cannot be made due to the extreme financial burdens of companies.
In addition to these difficult circumstances, we see a major increase of ‘Force Majeure’ statements in the third quarter of 2022: Current data show a total of 58 active Force Majeures at the beginning of October 2022 – 25 of them only reported between July and September. Of all polymers, PVC (polyvinylchloride) is worst affected. Overall, the data report that FM statements have continuously increased monthly since March 2022. The forecasts for the industry and for the member companies of IVK Europe e.V. look similarly alarming. A last sign for the German and European policy, who must act urgently to prevent even worse developments.
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