For months now the raw materials used in flexible packaging, especially those used for plastics such as polyethylene (PE) and polypropylene (PP), have been undergoing drastic price increases. In many cases prices have risen by a third to a half on a year-on-year basis. “These are serious blows for manufacturers of flexible packaging that add to production costs and further depress margins,” explains Dr Ulf Wienböker, chairman of the Flexible Laminates trade association within Gesamtverband der Aluminiumindustrie e.V. (GDA).

During the period from March 2009 to March 2010, the price of polypropylene rose by almost 50 per cent, LDPE by about 40 per cent, HDPE by over 30 per cent and PET by almost 30 per cent.

This development is all the more problematic because the worst effects of the economic crisis have now been overcome and recently there has gradually been a slight recovery in demand, also for flexible packaging. According to Dr Wienböker, “The drastic price increases on the raw materials side threaten to snap off these delicate shoots of economic growth.” He views the shortage of plastics as one reason for these price movements. Some raw-materials suppliers are even restricting the quantities they are delivering, which conjures up the risk of production stoppages. This could quickly dampen the recovery in flexible packaging, especially as the order situation is characterised by orders being placed at short notice.

The GDA specialist trade association Flexible Laminates represents 24 member companies that are mostly organised along the lines of medium-sized companies and employ around 9,600 people. Their main markets are the food, pharma and cosmetics industries. Smaller markets are industrial users in the building, automotive, electrical engineering and chemical sectors. About two-thirds of turnover is generated by exports, mainly to other European countries. The chairman of the trade association, Dr Ulf Wienböker, is managing director of Huhtamaki Deutschland GmbH und Co. KG.

Your contact:
Stefan Glimm
Gesamtverband der Aluminiumindustrie e.V.
Tel.: +49 2 11 - 47 96 150
Fax: +49 2 11 - 47 96 408
stefan.glimm@aluinfo.de