Business of Germany’s plastics producers stabilised at a low level during the course of the first quarter, following a late 2008 market crash that depressed full-year sales and production. Speaking at the annual spring press conference of PlasticsEurope Deutschland (Frankfurt; www.plasticseurope.org), association president Günter Hilken, head of the polycarbonates business unit at Bayer MaterialScience (BMS, Leverkusen / Germany; www.bayerbms.com), said the outlook for 2009 is too uncertain to predict developments going forward. However, he cited forecasts that economic recovery is not likely to set in before late 2010 or even 2011.

Some customer industries, such as packaging, have held up fairly well, Hilken noted. While national economic stimulus packages have boosted automotive demand slightly, the gains undoubtedly will be only temporary, and auto makers may face five to six years of weakness, he added. Along with the demand crunch, many plastics producers – even major players – are finding it difficult to obtain credit, said the association president. Despite pressure to cut costs, he stressed that producers will try to retain qualified personnel, reiterating statements by majors such as Bayer MaterialScience, BASF and Lanxess that employees will need to show flexibility.

Figures for 2008 show German polymer production (including adhesives, coatings and fibres) down 2.5% on 2007 to 20m t, valued at EUR 22.8 bn. Export volumes – 70% to other EU countries – sank by 2.2% to 13.1m t, worth EUR 20.3 bn. Imports (88% from EU countries) declined by 2.3% to 8.4m t worth EUR 12.8 bn. The largest chunk of output went into packaging (32.4%), construction (25.2%) and automotive (9.2%) applications. PlasticsEurope Deutschland said margins remained under pressure throughout 2008, as prices for feedstock and other raw materials soared and then collapsed. While capacities were run flat out for most of 2008, utilisation rates sank to 30-50% at year end.