German Plastics Packaging Industry Profits 'Tense'

Published: April 15, 2009

BAD HOMBURG, GERMANY | IK member companies judge the current economic situation as worse than three months ago, according to an IK economic poll for the second quarter of 2009. Against the background of the economic crisis, the position of the plastics packaging industry has indeed been evaluated as slightly more positive. Around 60 percent of the companies, however, expect a further decline of their output and export. In connection with stagnating sales prices and rising raw material prices, even more than 60 percent of the members anticipate a further deterioration of their profits.

In the view of IK Managing Director Ulf Kelterborn, the plastic packaging branch seems not to benefit at all from the economic stimulus package of the German federal government. E ven the bank credit lending has not improved to a noticeable extent, so that necessary investment plans are still being thwarted. The association does not expect a recovery of the economy before the second half of the year, therefore the situation of the plastics packaging producers remains extremely tense.