PETpla.net Insider 09 / 2017

PET news 6 NEWS PET planet Insider Vol. 18 No. 09/17 www.petpla.net Gabriel-Chemie increases production capacity in Russia The Austrian Gabriel-Chemie Group has been operating successfully with its own subsidiary in Russia since 2007. Due to the steadily growing business and the increasing demand for masterbatch in the Russian region and the neighbouring countries of Azerbaijan, Kazakhstan and Belarus, it was necessary to adjust the production capacity of Gabriel-Chemie Russia to the future requirements. On August 3, 2017, Gabriel-Chemie CFO Andreas Berger and the Governor of the Kaluga oblast Anatoly Artamonov signed an investment agreement concerning the construction and operation of a masterbatch plant in the Vorino industrial park in the Kaluga oblast. On the 27,000m 2 grounds in the Vorino industrial park, a modern masterbatch production facility is to be built in four construction phases. The completion of the first section and the relocation from the existing location in Dorokhovo (Moscow region) are planned by the end of 2018. During the first stage, around 260 million roubles will be invested in the new location and modern, environmentally friendly production technology with a capacity of 2,000t/a. The maximum pro- duction capacity can be increased step by step to 20,000t/a until after completion of all construction phases. The 2,000-hectare industrial park Vorsino is about 90km southwest of Moscow city centre and attracts numerous Russian and international corporations, due to its good infrastructure and transport connections. www.gabriel-chemie.com U.S. imports of plastic bottles topped $937.9 million last year The U.S. exports of plastic bottles nearly doubled from $387.2 million in 2003 to $766.1 million in 2012. On aver- age, the annual growth of plastic bottles exports from the U.S. was 8%. In the last four years, however, it started to decrease in sync with the overall decline in U.S. total exports due primarily to the weaker economic environment of U.S. trading partners and the strengthening of the U.S. dollar. A strong dollar makes U.S. goods more expensive - a bane for U.S. exports, but a boon for imports into the U.S. Early this year, however, the U.S. dollar began moving slowly below its prior high, after it started appreciating from 2014 to 2016, to a stable rate vis-à-vis major foreign currencies. Rising imports of plastic bottles into the U.S. and falling exports means the trade deficit in plastic bottles is growing. As of June this year, the U.S. trade deficit in plastic bottles was $151.6 million - already more than half of last year’s total deficit. In 2003, the U.S. trade surplus in plastic bottles was $2.4 million. In earlier years prior to 2003 it was even higher, ranging to a high of $89.1 million between 1992 and 2002. The U.S. imports of plastic bottles last year topped $937.9 million - more than doubled from $441.2 million when U.S. began experiencing a trade deficit in plastic bottles in 2004. Such a dramatic increase in imports over time can be attrib- uted to higher demand for bottled beverages in the U.S. which is nicely complemented more recently by the U.S. ability to import more due to the stronger U.S. dollar in recent years. The popularity of bottled water, the demand of which has surpassed the demand for carbonated drinks, and the influx of fruit juices into the U.S. market have contributed to higher plastic bottles imports into the U.S. Both imports and exports of plastic bottles into, and from, the U.S. are expected to stay positive as part of an increasing trend of global production of plastics containers that is estimated to reach 67.9 million metric tons by 2020 according to Research and Markets. As the U.S. continues to experience a demographic shift - ageing baby boomers and a rising number of health conscious mil- lennials who appreciate portable products - the production volume of plastic bottles, particularly for beverages, can be expected to increase. The positive growth in bottling manufacturing and imports is part of why NPE2018 will feature the Bottle Zone, a dedi- cated section of the trade show floor full of supply chain solu- tions for the bottling industry. The Plastics Show returns to the Orange County Convention Center in Orlando, Florida, USA May 7-11, 2018. www.NPE.org/Bottle-Zone Gabriel-Chemie CFO Andreas Berger and Governor Anatoly Artamonov signing the investment agreement