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05-29-2015

EuPC Launches Strategic Alliance for European Polymer Supplies

On May 22nd 2015, during the EuPC General Assembly in Warsaw, EuPC, the leading EU-level trade association, based in Brussels, Belgium, representing European plastics converters, launched a Strategic Alliance for Polymer Supplies in Europe.

This Alliance was formed in response to a recent series of force majeure declarations by some of the leading EU polymer suppliers leading to shortage of material on the European market and is the consequence of very unhappy plastics converters that do not wish to see this repeated in the future. Since early March 2015, the EU polymer industry has declared force majeure on 34 separate and consequent occasions and exacerbated an already tense situation on the EU polyethylene and polypropylene markets. This has driven polymer prices to levels not seen in the past decade, at a time when oil prices are still relatively low.

Alexandre Dangis (figure: EuPC)

''The unavailability of certain grades of polymers and record polymer prices have forced some converters to close production lines. The situation will continue to worsen if nothing is done", stated Alexandre Dangis, EuPC Managing Director. As a consequence EuPC Members set up the ‘Strategic Alliance for Polymers in Europe’ under the leadership of Ron Marsh, former CEO of RPC Group, current Chairman of Polypipe Group plc and guest to the EuPC Steering Committee.

The plastics converting industry is a major EU employer and source of growth in Europe, employing more than 1.7 million employees and generating an annual turnover in excess of EUR 280 billion. However, in order to continue this success, according to the EuPC, the plastics converting industry needs more dialogue and long-term vision in the polymer supply chain and a prompt suspension of EU import duties on polymers which are not being supplied in sufficient quantities in Europe. "We hope that Polymer producers in Europe will reinvest current margins in the ageing European production sites in order to maintain a credible European polymer base to serve the plastics converters in a sustainable manner", said to Alexandre Dangis.

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EuPC European Plastics Converters

Avenue de Cortenbergh 71
BE 1000 BRUXELLES
Tel.: +32 2 732-4124
Fax: +32 2 732-4218

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