Toray Plastics Europe S.A. (Saint-Maurice de Beynost, BP 140, F-10701 Miribel), one of Europe´s biggest producers of polyester film, submitted the following statement to Plasteurope.com last week via Toray Deutschland GmbH (Nibelungenplatz 3, D-60318 Frankfurt).

The European polyester film industry experienced a serious crisis in 1998. A dramatic fall in prices caused total destabilisation of the markets for these products. This development was triggered first and foremost by imports from India and Korea, which almost doubled over the past three years against the backdrop of the economic crisis and currency erosion in South East Asia. State subsidies to the export industry in a number of these countries have rendered the competitive situation even more acute – a situation that is currently being investigated by the EU Commission in Brussels.

Over this same period, polyester film producers in Europe have considerably expanded their capacities. Toray too will have invested a total of some EUR 150m in new plant by the end of 1999. It will be necessary to gradually raise polyester film prices by 20 to 30% in order to arrive at an acceptable price level again and guarantee the further development of this branch of industry.