SINCE 1952, the K trade fair in Düsseldorf has been presenting tangible evidence of the plastics and rubber industry’s global success. In its seventh decade, the trade fair again shows many examples of the global plastics industry’s impressive growth rates.
In tri-annual intervals, this event provides an overview of leading-edge technological developments. No other event shows polymer engineering, materials, machine, processing and mould engineering in such breadth and depth or a similar abundance of plastic and rubber applications than the Düsseldorf flagship fair. And the twentieth edition of the K trade fair in 2016 from 19-26 October is no different: a benchmark and orientation point for anybody interested in a comprehensive overview of the plastics and plastics processing industry.
In 2015, the association of European plastics processors, PlasticsEurope, reported a global plastics production volume of 322 million tons. A proportion of almost 270 million tons was attributed to polymer materials. The remaining amount, about 50 million tons, was used for the production of coatings, adhesives, dispersions, lacquer or paint. Analyses of the same period published by the International Rubber Study Group IRSG show a global rubber production and consumption volume of almost 29 million tons, 12 million tons of which were attributed to natural rubber and almost 17 million tons were synthetic rubber.
Since 2010, the year when plastics production experienced annual growth rates of only 3 to 5 %, the industry has returned to an upward growth trajectory.
At the end of 2015, KI’s capacity database Polyglobe reported global capacities of almost 305 million tons per annum for the production of thermoplastics, the largest and most important segment of the entire range of polymer materials. More than 90% of these were attributed to standard plastics, almost 9% to industrial thermoplastics, while the proportion of other thermoplastics such as high-performance polymers bio-based biodegradable plastics only amounted to one tenth of a percent, respectively.
Asia is top global plastics producer
The enormous economic growth experienced by China and many countries from Southeast Asia has turned the Asian-Pacific economic region into the world’s largest growth region – with positive repercussions for the global plastics industry. Meanwhile, Asia represents 49% of all plastics products manufactured in the world. In 2015, more than 40% of the total number of plastics processing machines used all over the world came from Asia.
Today, China has become the most important nation for all segments of the polymer industry: according to data recorded in 2015, China is responsible for 28% of the global polymer production, nearly 33% of the global plastics processing machinery production and also represents the largest individual proportion of the global plastics processing segment.
German-speaking countries leading technology providers, China dominates machinery market
In 2015, the total production value of plastics and rubber machines amounted to €33.9 billion. European plastics machinery manufacturers generated 40%, which constitutes a production value of €13.6 billion. According to Euromap, the association of machinery manufacturers from Austria, France, Germany, the UK, Italy, Luxemburg, Spain, Switzerland and Turkey, European manufacturers held their leading position with nearly 50% of the global market for plastics machines. Despite the market’s unpredictability, Euromap is confident that in 2016, the market will experience a 3% increase in global production to €34.9 billion with European production figures rising by 2 % to €13.8 billion.
In 2015, China was the largest individual nation in terms of production value, representing 32.5%, followed by Germany with 20.7%, Italy with 7.8% and the US with 7.2%. German machinery manufacturers are leading the global market, representing 22% of global export, ahead of China (15%), Japan and Italy (both 9%) and the US (6%).
The shale-gas revolution is a new game changer
Europa is trying to reduce its CO2 footprint. Due to this change of course, fossil fuels are now on the decrease. This, in turn, has triggered the ongoing decline of oil refineries and the corresponding reduction of available raw material for the production of polyolefin, the most important polymer type in terms of volume. At the same time, the Gulf States have set up substantial polymer production capacities virtually on top of their oil wells, which are intended to supply Asia and the US.
While Europe, already incapable of supplying the required polyolefin from its own resources, is dependent on imports, the shale-gas revolution in the US has now opened up a new source of fuel at prices that are second to none. This development is a veritable game changer. As a result of the investments made over the last few years, new capacities for gas-based polyolefin are predicted to come on-stream in 2017. At present, the US is installing capacities for the extraction of shale gas, which is used for the production of the required copolymers and for the polymerisation of target polymers.
Another important aspect is the expansion of infrastructure for transport, storage and shipping of starter products and processible plastic pellets. The keen price/performance ratio of the new US products is expected to tip the scale for polyolefin exports between continents in favour of the US.
Global plastics sales: light and darkness
Not everywhere in the world shows steady and rising figures for plastic materials and products like the euro region. The small but exquisite Swiss plastics industry is still reeling from recent developments following the suddenly unpegging of the Swiss franc, which sent the local currency soaring. Particularly Swiss machine manufacturers and plastics processors were hit hard – and virtually overnight.
Outside of Europe, business was slower than expected, particularly in the BRIC states. China had to revise down its growth figures, while India is fighting against an ever-increasing pressure from imports. Russia’s industry is struggling with the volatile rouble, sanctions, renewed political insecurities and shrinking profits in the energy segment. Brazil and some of its neighbouring states are also suffering from the declining oil price, the export of oil being a major contributor to their national budgets, and have been sliding into economic crisis. In Latin America, plastics producers and many plastics processors have now taken to postponing their investments until things pick up again – when that will be, is highly uncertain. In the meantime, capital goods manufacturers are pinning their hopes on the emerging Asian markets, a strengthened US and Iran’s newly opened markets.
More recycling in Europe
In recent years, the issue of marine pollution with plastic products and so-called micro-plastics has attracted major attention from the media and the European population. It has become obvious that this unfortunate development has been caused by dysfunctional waste disposal systems and human misconduct.
Despite the fact that Europe does not range among the largest polluters, the European plastics industry has been making every effort to set up suitable collection systems and to enhance the existing systematic recycling of plastic production waste with viable strategies for re-using plastic post-consumer waste. As a result of legal directives and a variety of efforts and initiatives, recycling rates in Europe (i.e. EU28 plus Switzerland and Norway) have been rising steadily: in 2014, the rate was 69%, about 10 percentage points up from the rate for 2011 and even 21 points up on the recycling rate in 2006. European countries with landfill bans record particularly high recycling rates: while these nations – Switzerland, Austria, the Netherlands, Germany, Sweden, Luxemburg, Denmark, Belgium and Norway – reuse more than 96% of their plastic waste, five European countries still only manage to recycle less than 30% of their plastic waste.
In 2014, the most important recycling methods in Europe were distributed as follows: 39% went into energy recovery and 30% into material recycling, while about 31% of plastics waste went into landfill. Ten years previously, only 26% were used for energy recovery, 17% were recycled and 57% were deposited on landfill sites. In all European countries, the rate for packaging recycling has risen to more than 20%, half of these countries recycle more than 70% and some even 99% of plastics packaging.
www.k-online.com