The State of the Plastics Industry in European Countries
The Covid-19 pandemic, which closely affects everyone worldwide, has also heavily impacted the plastics industry. During the pandemic, the global plastics sector has actively contributed to various sectors, primarily medical products for the healthcare industry, as well as food packaging, disposable plastics, and hygiene products.
In this context, we are sharing the study we compiled from EuPC (European Plastics Converters), a Brussels-based European Union plastics association whose board of directors includes our President Yavuz Eroğlu, reflecting the current state of the plastics industry in European countries, with the belief that it will benefit our industry members.
We believe that, in addition to the value of information sharing during such crisis periods, communication among colleagues is extremely important. The situation of the plastics industry in the European Union during the coronavirus pandemic will also provide insights and contributions to our companies exporting to those countries.
A point of particular importance in this study is that in many European countries, the plastics industry has been defined by governments as a "sector of vital importance".
In this context, we present below a study reflecting the current state of the plastics industries in European countries.
AUSTRIA
No quarantine, production continues.
In Austria, the measures taken by the government (exit restrictions, security regulations, etc.) do not include factory closures or production stoppages in the plastics sector. A general lockdown order is considered detrimental to the continuity of supply chains. To emphasize this, industry associations have submitted a sector recommendation to the federal government. The Austrian plastics sector has shifted to producing ventilators, masks, protective clothing, and plexiglass panels to contribute to the fight against Covid-19.
Ülkede korona krizine rağmen inşaat faaliyetlerine izin veriliyor. Çalışma sırasında enfeksiyon riskini azaltmak için, inşaat sektörünün sosyal paydaşları arasında bir talimatname oluşturuldu. İşyerlerinde güvenlik için diğer sektörlere de talimatlar hazırlandı. Bununla birlikte; yapı ürünleri sektörü, inşaatların duruşuna da bağlı olarak Mart ortasında bir çöküş yaşadı. Mart ve Nisan cirosu önceki yıla oranla %50’den fazla düşüş gösterirken, Paskalya’dan sonra ticari faaliyetlerin ciddi şekilde canlandırılması ihtiyacı oluştu. Ülkede girdi malzemelerinin tedariki büyük ölçüde devam ediyor. Ambalaj sektörü kısmen faaliyettedir. Dezenfektan ambalajına yönelik talepteki artış da dikkat çekmektedir.
BELGIUM
The entire plastics industry has been classified as a "vital sector".
Belgian plastics manufacturers have been severely affected by the crisis. The plastics sector in the country...“vital sector"” olarak sınıflandırılmasına rağmen, özellikle otomotiv ve inşaat sektörlerinde talebin düşmesi nedeniyle, sektörde geçici işsizlik oranı %44,5’e tırmandı. Ambalaj ve sağlık sektöründe talep yüksekliği sürüyor. Plastik mamul üreticileri, yerel sağlık kuruluşlarına; plastik şişe, maske, tıbbi gereç, yatak vb. üreterek destek veriyorlar.
BULGARIA
There is contraction and uncertainty in the sector.
In Bulgaria, a state of emergency and quarantine were declared nationwide until May 13, 2020. Travel restrictions were imposed in major cities, and leaving home was only permitted for work or urgent health reasons. Due to the early implementation of these measures, the number of cases did not increase significantly; to date, 624 patients have been diagnosed, and 24 have died. The most significant problems faced by companies in the sector are listed as follows:
Siparişlerin iptali, tedarik ve ulaşım sistemlerinin çalışmaması nedeniyle, iç pazara çalışan şirketlerin cirosunda yaklaşık %20, dış pazara çalışan firmalarda ise %40-50 oranında düşüş söz konusu.
Due to the inability to collect payments from customers and the growing amount of receivables between companies, all businesses are experiencing liquidity problems. Although the Bulgarian Development Bank was expected to announce a package of measures including state-guaranteed loans to SMEs and the postponement of loan and debt payments during the state of emergency, no official statement has been made so far regarding the implementation of such measures.
Şirketler şimdilik işçi çıkarmamaktadırlar ancak bu durumun iki aydan fazla sürmesi halinde işçi çıkartmak zorunda kalacaklarını belirtmektedirler. Devletin destek olarak başlattığı 60:40 programı kapsamında, bordro maliyetinin %60’ını devlet, %40’ını işverenin üstlenmesi söz konusudur. Bu önlem, işlerin azalması nedeniyle işini kaybetme riski taşıyan çalışanlar için geçerlidir. Önlem özellikle turizm ve lokantacılık sektörlerini hedef alıyor.
Because the Bulgarian economy is closely linked to the major economies of the EU (Germany, France, Italy), disruptions in the international transport of raw materials and goods seriously hinder both the continuation of production and the fulfillment of export contracts. Companies are particularly experiencing problems in sourcing machinery and raw materials from Italy. While there are alternative suppliers for raw materials, prices are higher and quality is lower. For machinery, there are virtually no alternatives.
FRANCE
Some branches of the plastics industry have been classified as "essential sectors".
Sektörde genel anlamda faaliyet normal döneme göre %30 daha fazla. Üretimin çoğunluğu gıda sektörüne satışlar kaynaklıdır. Ülkede malzeme arz sorunu yaşanmıyor. Önümüzdeki haftalarda, toplama ayırma merkezlerinin kısmen kapalı olması nedeniyle geri dönüştürülmüş malzemelerde sıkıntı yaşanabilir ancak yeni malzemelerle bu sorun aşılır görünüyor. Otomotivde fabrikalar kapandı faaliyet yok denecek seviyede az. İnşaat sektörü neredeyse tümü durmuş halde. Genel anlamdaki bir zorluk da, çalışanların işe dönmeyi kabul edebilecekleri güvencelerin verilebilmesi noktasında görünüyor. Şirketler sağlık sektörüyle dayanışma halindeler ve bazıları (LVMH, Danone v.b.) üretim hatlarını değiştirerek maske ve hidralkolik jel üretimine geçti. Karantinanın beklenen süresi yaklaşık Mayıs ayı başı gibi görünüyor
GERMANY
Some branches of the plastics industry have been classified as "essential sectors".
The entire food supply chain and the food packaging sector play a key role in the functioning of the national system. The German Federal Ministry for Food has published a document defining the critical infrastructure of the "food" sector. The document is designed to support local authorities in the event of increased restrictions. However, official approval has not yet been granted for pharmaceutical and medical device packaging.
This week, chemical industry companies will register on a B2B platform established on behalf of the Federal Government's crisis management team; hospitals, nursing homes and doctors' offices, bottlers and fillers, packaging manufacturers and logistics companies will submit their offers for hand sanitizer. Their goal is to triple the amount of disinfectant in the short term. One of the prerequisites for this is the availability of plastic containers, especially those under 5 liters. To date, around 30 plastic packaging companies have registered on the platform. Work is underway to allow the use of containers currently prohibited for disinfectant use (e.g., pesticide, motor oil, antifreeze containers, etc.). Similar platforms exist in Germany for protective masks and clothing.
In Germany, manufacturers of packaging for food, pharmaceuticals, cleaning products, and disinfectants are working around the clock. While the supply of raw materials, particularly for packaging printing, is better than in previous weeks, it remains uncertain. Meanwhile, industrial packaging manufacturers have begun to experience a decline in orders.
GREECE
The use of plastic bags is being encouraged in shopping to combat the pandemic.
In Greece, to alleviate the situation faced by members of the plastics industry, the Ministry of Health was approached with the aim of slowing the spread of the pandemic by promoting the use of plastic bags instead of reusable bags in supermarkets. Industry representatives sent letters to the Ministry of Finance calling for a 75-day freeze on check maturities and for the banking sector to support customers who have written checks.
Esnek Ambalaj Faaliyetleri normale göre %25 fazla, çoğunluğu gıda ve sağlık sektörüne satışlar kaynaklı gerçekleşiyor. Termoform kalemlerinin üretimi, normale ortalama seviyeye göre %90 azaldı. Fabrikalarda personel azaltımı yapıldı. Bunun en önemli sebebi, Covid-19 nedeniyle otellerin ve paket servis restoranlarının kapanması ve turizm sezonunun başlamaması olarak gösteriliyor. Ülkede ihracat faaliyetleri durdu ve yaz sezonu için beklenen siparişler ise henüz alınamıyor.
The plastic pipe and fitting market remains stagnant. Plumbers have closed, and construction has come to a standstill. Despite the bad weather, the agricultural sector is doing relatively well. Plastic pipe factories have temporarily suspended operations to reduce stocks and lower fixed costs. Domestic raw material availability is sufficient. Businesses affected by the pandemic are experiencing cash flow problems due to government-mandated debt deferrals. Injection molding operations continue as usual. Various manufacturers in the plastics sector are ready to produce masks and face shields.
ITALY
Some branches of the plastics industry have been classified as "essential sectors".
In Italy, which has been heavily affected by the coronavirus, restrictions on economic activity, first imposed by a decree on March 22nd and expanded by a second decree on March 25th, will continue until May 4th. The lifting of restrictions is only under consideration for a few economic activities. In the country, the production of plastic products with the ATECO code 22.2 is permitted, with the exception of those with codes 22.29.01 (plastic footwear production) and 22.29.02 (plastic office and school supplies).
LITHUANIAN
There is a surge in demand for single-use packaging.
The country is under lockdown until April 13th. Schools and shops are closed, and events have been cancelled. There are no fines for going out, but wearing a mask is mandatory. Hospitals are experiencing shortages of supplies such as masks, food packaging, and disposable clothing. Businesses are making monetary donations and donating these items to hospitals. The service sector has completely shut down. Except for food and medicine, shops are closed. Others are either offering takeaway services or are closed.
The pandemic has led to increased demand and growth in the disposable packaging sector of the Lithuanian packaging industry. According to press reports, people are placing more trust in proven solutions like disposable packaging. Hygiene and safety are top priorities. Restaurants and catering companies are only open to online orders and takeaways. Returnable packaging cannot guarantee hygiene in this format. Therefore, disposable products have shown growth in all segments.
Plastik üreticilerinin %90’ı ihracata çalıştığı için, talepteki artış sadece iç pazarı değil; Polonya, Almanya, İskandinavya, Benelüks, Fransa gibi AB üye ülkelerinin tepkisini de yansıtıyor. Geçen 4 haftaki rakamlara göre: Mart ayı talebin en yoğun olduğu ay oldu. Sınırlardaki kontroller nedeniyle bazı gecikmeler yaşanmışsa da kritik boyuta ulaşmamıştır.
Litvanya’da; Tek kullanımlık gıda ambalajı siparişlerinde %15-20 artış, tek kullanımlık et ambalajı %15 oranında talep artışı olmuştur.
HOLLAND
No quarantine, production continues.
Hollanda’da karantina söz konusu değil, plastik ve geri dönüşüm şirketleri çeşitli pazarlara mal vermeye devam ediyor. Şirketlerin ortalama %10’unda üretim artarken, %70’inde üretim aynı veya hafif azalarak seyretmektedir. Otomotiv gibi sektörlere hizmet veren tedarikçilerin %20’sinde ise ciddi düşüş meydana gelmiştir. Üretimi artan şirketlerin büyük bölümü; gıdalara yönelik ürünler, sağlık ekipmanı ve ambalaj ya da destekleyici hayati süreçlerin tedarikçileri firmalardır.
Most of the raw materials in demand these days have been procured, but there have been delays at the borders. On the other hand, due to quarantine conditions in neighboring countries, the flow is expected to decrease further in the short term. Many production facilities currently have the conditions to continue production while maintaining a 1.5-meter social distancing rule. Many office workers are working from home. Absence figures are not available for the plastics sector. Many companies have already applied for short-term, government-backed unemployment benefits.
The Dutch government has announced programs such as tax deferrals, job-protecting transition programs, state support for SME loans, and temporary liquidity support for essential healthcare companies. Banks have also announced that loan repayments may be postponed. Only time will tell whether these measures will prevent bankruptcies.
POLAND
No official classification has been made yet.
An application has been submitted to the Polish Ministry of Development to have the plastic packaging sector recognized as part of the critical supply chain. The Central Executive Board of the Lewiatan Employers' Confederation is working on EPR (Electronic Product Protection) programs. PUPC has launched a fundraising campaign for healthcare centers and hospitals (bags, protective film, cups, plates, and serving dishes). Members are actively involved in this area, providing product support as well as forming collaborations.
Until now, protective face shields could only be produced in small quantities using 3D printers, but coordination has been achieved among PUPC members for mass production. Face shields help protect healthcare personnel against the virus. As a result of this collaboration, production of 10,000 face shields per day began after Easter.
PORTUGAL
Some branches of the plastics industry have been classified as "indirectly vital sectors".
The government, under the state of emergency declared due to the Covid-19 pandemic, prohibited citizens from leaving their neighborhoods until April 13th, except for health reasons or other emergencies. There has been no change compared to last week in terms of its impact on the plastics converters sector. A decline in company activity is expected in the coming weeks.
Bans on single-use plastics are being re-evaluated worldwide.
Here are some examples from the US:
NEW YORK TIMES: The Pandemic Dealt a Major Blow to Plastic Bag Bans and Plastic Reduction Efforts..
FORTUNE: Municipalities are reversing bans on single-use plastics due to coronavirus fears..
USA TODAY: Backtracking on plastic bag bans: State, municipality and retail agencies cite coronavirus. banning reusable bags during the pandemic.
SPAIN
Some branches of the plastics industry have been classified as "essential sectors".
Between March 29 and April 10, the Spanish government implemented very strict measures similar to those in Italy, halting all activities except for critical/essential sectors and closing construction sites, aiming to slow the sudden outbreak in Spain, and particularly in Madrid.
The chemical industry has been classified as vital, and in addition to the Decree issued for this purpose, Plastic Converters have also been included in the vital enterprise category.
However, the situation varies across the country, with some converters struggling while others have been forced to shut down their facilities entirely (the automotive sector is the hardest hit, while the construction and building sector is also experiencing a decline in demand).
While business is relatively good in the detergent and healthcare packaging sectors, some industry representatives have shifted to producing protective equipment such as masks and face shields. Spain is experiencing a serious shortage of personal protective equipment. The situation will become even more critical once work resumes, particularly in construction sites and non-essential industries.
The Spanish government announced that the state of emergency will be extended until April 26th, and considering examples from other countries, extending it for another 15 days after April 26th seems reasonable. The economy cannot withstand another lockdown due to a second wave of the pandemic. The Spanish plastics industry is demonstrating dedicated work despite the coronavirus pandemic.
SWEDISH
No quarantine, production continues.
Sweden is not under a full lockdown; some regions are operating at near-normal levels. Plastic manufacturers (EPS, pipes, etc.) and packaging producers serving the construction sector are continuing their usual operations. No shortages of plastic raw materials have been reported. However, the situation is quite the opposite for companies serving the automotive sector. All three car manufacturers in Sweden have temporarily suspended production.
SWITZERLAND
Whether companies are vital or not is decided on a case-by-case basis.
The number of cases is steadily increasing in Switzerland. While a nationwide lockdown hasn't been declared, non-essential shops, restaurants, and tourist businesses have been closed. Raw material supplies are currently sufficient, but there is a shortage of PMMA film (used in high-demand face shields). There are reports of minor layoffs in the plastics sector; however, companies in essential sectors (healthcare, pharmaceuticals, food) are experiencing very high demand. Disinfectant containers, gloves, and masks are in great demand. Demand for COVID test tubes is lower due to a shortage of reagents.
There is no general classification within the sector; authorities determine the level of importance on a case-by-case basis, assessing whether something is vital or not.
ENGLAND
No official classification has been made yet.
Birleşik Krallık plastik sektöründeki firmaların yaklaşık %25’i kapandı; okulların kapalı olması, virüs şüphesi, tecrit ve işe gitme korkusu nedeniyle devamsızlık yüksek.
Uncertainty surrounding which sectors the government will consider vital has led workers to question whether it's right for them to go to work.
Demand for disinfectant bottles, masks, medical gowns, and ventilators is high. Governments are beginning to better understand why plastics are used so extensively. Pump caps for spraying are difficult to find. Companies specializing in this area see potential for commercial activity.
Discussions are also ongoing with the government to postpone issues such as the plastics tax.
Kind regards,
Ertan GÜNEŞ
Secretary General
Turkish Plastics Manufacturers Research, Development and Education Foundation
Halkalı Cad. Tez-İş İş Mrk. No:132/1 Kat:4 34295 Sefaköy / İstanbul
Wire.: +90 212 425 13 13 / 3 Lines Fax: +90 212 624 49 26
E-mail: pagev@pagev.org.tr Web: www.pagev.org
Organizations that PAGEV is a member of;
