“Chinaplas” organiser Adsale has reported that the Chinese plastics industry is witnessing a normalisation of operations, with the spread of the coronavirus there slowing down. It advises the sector to “stay positive and prepare for the expected market rebound after the epidemic.”

According to the China Plastic & Rubber Journal (CPRJ, Hong Kong; www.adsalecprj.com), most Chinese provinces have seen work return to normal after the extended holiday period. In recent weeks, production was often only permitted with special approval for system-critical components, and many plastics companies waited for the green light from the authorities – see Plasteurope.com of 20.02.2020. Large enterprises have been relatively quick to resume production compared with SMEs.

CPRJ said governments and municipalities have put certain policies in place to coordinate the resumption of companies’ production and work, ensuring stable economic development. For example, Beijing has introduced financial support measures, and Shanghai has set up tax reduction and exemption targets.

Some companies have reported positive steps too, with medical plastic products naturally being in demand. Since 10 February 2020, most of Lanxess’ (Cologne / Germany; www.lanxess.com) production sites in China have resumed production. “At this point it is difficult to provide a reliable outlook into the second half. We believe however that business may rebound quickly once the situation is controlled and are already planning accordingly,” said Ulf Dressler, Lanxess’ VP corporate communications APAC. The German group welcomed the decision to postpone Chinaplas 2020 – see Plasteurope.com of 19.02.2020 – which is “in line with the company’s policy to place the safety of its employees and business partners first.”

Clariant’s (Muttenz / Switzerland; www.clariant.com) head of sales for the Asia-Pacific region, Darren Soo, noted that the impacts of the epidemic on the plastics industry are heavy, but he foresees large, post-epidemic consumer demand. The company has around 1,400 employees and 16 sites in China, although none of its production facilities or offices are in the provinces of Wuhan or Hubei. It says there is currently no significant impact, but Clariant is strictly following the instructions from the Chinese government on travelling and employment-related arrangements. As such, there is a travel ban to Hubei, and all global travel into and out of China including Hong Kong was also banned.