Released on = April 16, 2007, 4:07 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The plastics processing industry is prominent in every
aspect of modern life. As new polymers and composite materials are introduced by the
chemical industry, so the industry is constantly refining and adding products to
those that have been made over many decades.

Press Release Body =
Plastics Processing - Market Report
The plastics processing industry is prominent in every aspect of modern life. As new
polymers and composite materials are introduced by the chemical industry, so the
industry is constantly refining and adding products to those that have been made
over many decades. In its early years, the plastics industry greatly benefited from
the substitution of plastic for other materials including various metals, wood,
paper, glass, cardboard and natural fibres, etc. However, as a mature industry, the
possibilities for substitution are limited, leading to greater dependence on
economic growth and the expansion of demand in plastic\'s existing markets. The
industry is also vulnerable to volatility in the global price of oil and gas
feedstocks, used by the chemical industry to produce its raw and semi-finished
materials.

Total apparent UK demand peaked in 2000 and then dropped to an estimated £10.41bn in
2002. This downward trend is expected to continue until there is significant global
economic recovery which will stimulate domestic and world demand. The leading
markets for plastics are in packaging, building and construction and the
automotive/transport industries, all of which have generally been buoyant. However,
a number of other industries which use some form of plastic, e.g. the textile,
clothing, electrical, electronic, mechanical engineering and agricultural
industries, have experienced a profound downturn in demand, as they struggle to
adjust to changes in the market for their products and against a rising tide of
imports.

Overseas competition from the advanced developing countries is having an impact on
domestic demand, as cheap imports of relatively low added-value products are causing
some parts of the UK\'s plastics industry to restructure. A number of UK companies
have relocated their manufacturing facilities to these low-cost countries and have
themselves become importers. The rising cost of the polymers used by the UK\'s
plastics processing industry has made many of its customers resist the inevitable
price increases that follow and led them to seek alternative sources of supply,
wherever possible. Plastic processors are also seeking cheaper material suppliers
and this downward spiral has led to the closure or suspension of production at
several bulk chemical plants in the UK.

It expects that demand will eventually recover over the next 5 years to reach
£10.97bn in 2007, but the outlook for the immediate future is uncertain. Ultimately,
the technical advances which introduce new capabilities to plastic materials and the
resulting specialised plastics, new polymer alloys and composites, should open up
new applications and opportunities for plastic which could be sufficient to offset
the rise in imports of less specialised plastic products. However, new production
techniques and materials demand investment in machinery and operator training, which
will inevitably limit the number of plastic processors able to make the necessary
investment, forcing those which cannot out of business.

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