Transcript ICIS 9th Conference Karl * H. Foerster 12 March 2014

European Plastics Industry –
Competitiveness and Challenges
Karl-H. Foerster
Wednesday 28 October 2015
III Moscow International Chemical Forum
World
Plastics Production* by Regions
Middle
East,
Latin Africa
America 6%
5%
NAFTA
23%
Rest of
Asia
14%
Middle
East,
Latin Africa
America 7%
5%

Asia
with the leading country
China (26%) meanwhile accounts for
nearly half of worldwide
production

Europe and NAFTA
are on a similar level
each with a share of
around 20%.
NAFTA
19%
Rest of
Asia
16%
Japan
6%
China
21%
CIS
2%
2006
205 Mio. t*
Europe
(WE +
CEE)
22%
Europe
(WE +
CEE)
20%
Japan
4%
China
26%
CIS
3%
2014
260 Mio. t*
2
European Union (EU28)
Plastics Industry Production
Production Index
(2010 = 100, Trend cycle data)
140
• 1990-2008
130
Continuous growth due to rising
demand in Central Eastern Europe
and positive GDP development
120
110
100
• 2008-2019
90
Real economy crisis
80
• Since 2010
70
60
Plastics in Primary Forms
Manufacture of Plastics Products
Plastics Machinery
Slight growth in line with GDP
development
50
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Actual data status of Production: 06/2015
Source: Eurostat / PlasticsEurope Market Research Group (PEMRG)
Issue August 26, 2015 / Expiration 2015-09-15 / Slide 4
Europe
Plastics Demand* by Segments 2014
Others
26%
Packaging
40%
• Packaging and Building
& Construction
represent the largest
end-use markets
• Automotive Industry,
accounts for nearly 10%
E&E
6%
• Others includes
Consumer, Agriculture,
Household, Appliances,
Furniture, Medical, etc.
Automotive
9%
Building &
Construction
20%
47.8 Mio t
4
Europe
Plastics Demand by Countries in 2014
Others
21%
Germany
25%
• Demand in Europe rose by
2,6% vs. 2013
• Demand in Western
European countries increased
by 2.4%, while demand in
Central Europe rose by 4.9%
in 2014
Netherlands
4%
Belgium/Lux.
5%
Italy
14%
Poland
6%
Spain
7%
United
Kingdom
8%
• Germany and Italy, account
for nearly 40% of total
France
10%
47.8 Mio t
EU27+N, CH incl. Other Plastics (~5.6 Mio t)
Source: PlasticsEurope Market Research Group (PEMRG) & in Cooperation with Eastern and Central European Business Development (ECEBD)/ Consultic Marketing &
Industrieberatung GmbH
5
IMPORTS/EXPORTS EU28 – EASTERN
EUROPE
in Mio. Euro
2400
2000
1600
Import
Export
1200
800
400
0
Russia
2011
2013
Ukraine
2014
2012
2013
Rest of Eastern Europe
2014
2012
2013
2014
Source: Eurostat, Chemdata
Steering
Board, Brussels, 27 November 2012
6
Continued Export Surplus of around €18b
Exports of plastic raw materials and products in €m
40000
35000
30000
25000
Imports
Exports
20000
15000
10000
5000
0
2007
2008
2009
2010
2011
2012
2013
7
European plastics producers participate in
the growth of China
Imports (in kt):
Exports (in kt):
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
Saudi Arabia (1,664) ; 3.2%
USA (1,120) ; 2.2%
South Korea (1,105) ; 2.1%
Norway (430) , 0.8%
Switzerland (388) ; 0.8%
China (2,876) ; 4.8%
Turkey (2,527) ; 4.2%
Russia (1,152) ; 1.9%
Hong Kong (1,111) ; 1.9%
Switzerland (913) ; 1.5%
8
Source: PlasticsEurope, Eurostat- extra EU28 trade 2014
Competitiveness of European plastics industry
threatened by a number of “game changers”
 Strong
investments in
chemicals (also on
public side)
 3rd world’s
exporter of
plastics
machineries
(11.6% global share,
besides Germany
and Japan)
 Emphasis on coalto-chemicals
 Energy costs reduction
due to non-conventional
fuels (shale gas: 36% of
U.S. energy production in
2035)
 ~33% of world
bioplastics
 Opportunities for
Brazilian
petrochemical
industry
 Direct access to fossil
resources (67% world’s
oil reserves and 45%
world’s natural gas
reserves)
 External growth and
integration processes
in downstream phases
Source: the European House – Ambrosetti elaboration based on different sources, 2013
 Strong growth mainly in
plastics converting (10%12% CAGR, more than
22,000 companies and 4
Mln employees)
 Key drivers: demographic
and manufacturing
industry (automotive, etc.)
99
The European Plastics Industry
A Strategic Sector for Europe to achieve:
• Economic Recovery
• Sustainable Growth
10
The European Plastics Industry: a pillar for
economy and society
The European plastics industry accounts for:
11
The European plastics industry contributing
with a significant multiplier effect
The Multiplier Effect
12
Plastics: A Key Enabler of Innovation
• Top five of the most
innovative sectors in the EU
• During the period 2003-2012
more than 63.000 patents.
• Represents 4.2% of all the
patents submitted in the
European Union.
1313
The European Plastics Industry
A great contributor to a resource efficient Europe
• Circular Economy (zero landfill leads to more recycling)
• Reduction of Energy Consumption (houses,
transportation)
• Food Waste
14
PlasticsEurope is A
Pan-European Organisation
Brussels and 5 Regional
Centres:
• (North) London
• (Central) Frankfurt,
Vienna, Warsaw
• (West) Paris, The
Hague
• (Mediteranean) Milan
• (Iberia) Madrid
15
15
Regulatory context
Food Contact
Sustainable
Consumption
& Production
Packaging &
Packaging
Waste
Energy &
Climate
Waste
legislations
Circular
Economy
Product
Legislations
Plastics
Resource
Efficiency
REACH
Endocrine
Disrupters
Bio Economy
7th
Environmental
Action
Programme
Marine litter
Today’s perceptions
What “plastics “ say
What “stakeholders“ say
Source: akkanto
17
Today’s perceptions
What “plastics“ say
What “stakeholders“ say
Source: akkanto
18
Today’s perceptions
What “plastics“ say
What “stakeholders“ say
“The plastics
industry is at the
forefront of
innovation in
Europe”
Source: akkanto
19
Concern No. 1: Waste & Littering
Landfilling of Plastic Waste
Marine Litter
20
1. Landfilling is still the most common
waste treatment option for Plastics
PlasticsEurope Campagne: Zero Plastics
to Landfill by 2025
Municipal Solid
Waste Incineration
Fuel for energy intensive
industrial production, e.g.
chemicals, cement etc.
Energy
Landfill
Recovery
38%
36%
8.9 mt
25 mt 9.5 mt
Recycling
26%
6.6 mt
Treatment of post-Consumer
Plastic Waste in Europe in
2012:
Source: Consultic, 2013
21
2. Do plastics affect our health?
2. Emotions and plastics
23
Towards a Resource Efficient Europe
Towards a more resource
efficient economy
Use less resources over the
whole product lifecycle
Use unavoidable waste
as a resource
Circular
Economy
Reuse
Recycle
24