Raw material turmoil
AT A recent high level meeting between the leading plastics packaging associations of France and Germany, IK and Elipso, the greatest threat facing plastic packaging manufacturers today is lack of liquidity.
The associations debated potential solutions and ways forward for this new and pressing issue that plastic packaging manufacturers have to face since, for some companies, the rising cost of feedstocks has had disastrous financial consequences.
In view of this situation Elipso and IK came to the conclusion that new solutions in relation to raw material supply have to be found in order to be able to manage these challenges. Since plastic prices change every month the industry is forced to take this into account to protect its business operations.
An additional solution in the future could be hedging. At the same time the market should be brought to greater awareness that the risk concerning the costs for raw material is not to be borne by the packaging producers only.
Apart from that the two associations are said to be ‘optimistic’ about the future of the plasticspackaging industries in both countries. The presidents of both industry groups agreed upon a regular cooperation concerning various issues leading to a stronger publication of the diversity of plastics packaging well adapted for consumers and environment, greater commitment to energy efficiency and better attractiveness of skilled young people for the plastic packaging industries.
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