EUROPEAN PROCESSING
EuPC says rising prices could stop production / Supply of packaged goods at risk / Convertors need help now, MD warns
The industry association European Plastics Converters (EuPC, Brussels; www.eupc.org) has cautioned that companies making plastic products may need to shut down due to higher costs for energy and wages, and that the current price situation threatens essential packaging production.
“Converters, like many other energy-intensive industries, are shocked by the dramatic increase in electricity and gas prices,” the group said, noting that although some companies have been able to avoid rising prices due to current contracts, the industry average for electricity costs has doubled since the beginning of the year: many companies are said to be dealing with electricity bills up to 750% higher than in January.
“Converters, like many other energy-intensive industries, are shocked by the dramatic increase in electricity and gas prices,” the group said, noting that although some companies have been able to avoid rising prices due to current contracts, the industry average for electricity costs has doubled since the beginning of the year: many companies are said to be dealing with electricity bills up to 750% higher than in January.
 EuPC MD Alexandre Dangis (Photo: EuPC) |
According to the trade group, in certain countries, salary increases on top of the rise in energy costs have converters facing “a dilemma to continue production or stop the processing lines.”
Related: European recycling companies shutter plants
“This situation will actually put at risk the supply of essential packaged goods in the EU,” the group warned. “For certain industries in some EU countries there is currently no business case to continue production nor visibility and certainty for investments and further developments. The effects of those closures are also starting to have a severe impact on the European industrial base.”
EuPC managing director Alexandre Dangis said shops require immediate support. “We do not need long-term visions (…) at a time where companies are trying to survive on a daily basis.” He called on politicians in Brussels to seek “very short-term impactful actions” at the European level that are needed to keep industrial value chains operating.
Related: European recycling companies shutter plants
“This situation will actually put at risk the supply of essential packaged goods in the EU,” the group warned. “For certain industries in some EU countries there is currently no business case to continue production nor visibility and certainty for investments and further developments. The effects of those closures are also starting to have a severe impact on the European industrial base.”
EuPC managing director Alexandre Dangis said shops require immediate support. “We do not need long-term visions (…) at a time where companies are trying to survive on a daily basis.” He called on politicians in Brussels to seek “very short-term impactful actions” at the European level that are needed to keep industrial value chains operating.
Italian recyclers shutting down
Late last month, the Italian plastics recycling association Assorimap (Rome; www.assorimap.it) said, “We have suspended 40% of activities because energy costs are no longer sustainable.”
“Some plants are already closed, while others have remained operational only a few days of the week, a consequence of the expensive bills, which from June to August have increased by 440%.”
The association said it wants “immediate interventions” by the government still in office and warned parties campaigning ahead of Italy’s 25 September national election that there is a risk the closure of companies could generate a “short circuit” of the plastics waste recovery system and a huge competitiveness gap on an international scale.
“Some plants are already closed, while others have remained operational only a few days of the week, a consequence of the expensive bills, which from June to August have increased by 440%.”
The association said it wants “immediate interventions” by the government still in office and warned parties campaigning ahead of Italy’s 25 September national election that there is a risk the closure of companies could generate a “short circuit” of the plastics waste recovery system and a huge competitiveness gap on an international scale.
21.09.2022 Plasteurope.com [251206-0]
Published on 21.09.2022
German version of this article...