Belgium´s plastics processing industry is currently recovering from two years of slack business. For 2003, INS (www.statbel.fgov.be), Belgium´s national statistics office, reported a 1.3% rise in sales for the country´s plastics processing industry to EUR 4.64 bn (EUR 4.58 bn in 2002), a slight improvement on the previous year´s results. A clearer indicator for recovery was provided by the industry´s production index, which was up 3.1%. For Henry Vliegen, president of Belgium´s association of plastics processors Febelplast (B-1000 Brussels; www.fedichem.be), formerly Fechiplast, this is a significant improvement, particularly in comparison with other European countries such as Germany, which saw 2003 production growth of only 1.4%. However, he also pointed out that Belgium´s plastics processors suffered a larger decline in 2001 and 2002, compared with their European neighbours.

In 2003, profits of plastics processors belonging to Febel- plast deteriorated slightly to EUR 4.4 bn against the 2002 figure of EUR 4.5 bn. The first signs of improvement did not materialise until 2004. While Febelplast members´ sales totalled EUR 5.4 bn in 2004, this was largely due to the creation of a larger unit following the merger with Abic, the country´s elastomers association, which took place at the end of last year (see PIE 02, 2005). Adjusted for this effect, an internal survey and preliminary results point to sales growth of only 0.1%. As at the same time production volume rose by 5.6%, this is a clear indication of unabated pressure on prices.

Hopes for the future in construction and packagingThe market for mass produced goods seems to hold little potential for Belgium´s plastics processors. Vliegen explained that faced with growing competition from eastern Europe and China the industry will most likely be forced to abandon certain market segments, either because it is no longer competitive or because of excessive bureaucratic regulation. He believes Belgian converters would be well advised to opt out of the market for semi-finished products, one of their former strongholds, in favour of a more diversified product range with a higher value added. At present, he said, the market is suffering from a “lack of stimulus for productive cooperation between different sectors of the industry,” such as projects with the automotive and packaging industry recently initiated by Febelplast.

For 2005, Belgium´s plastics processors are looking forward to higher growth rates. Their hopes are pinned on rising demand from the packaging industry, which accounts for 34% of all plastics consumed in Belgium, as well as the construction industry (25%). Demand from the automotive industry, the third largest market for plastics, is expected to remain rather modest.

Production exceeds 8 m t for the first timeCompared with the situation for the processing industry, the gap between production and turnover is even more significant for Belgium´s polymer producers. While INS reported 10.3% growth in output to 8m t in 2003 against 2002, sales growth lagged behind at EUR 6.94 bn, up only 8.4%. The most significant sales increases emerged for PP (25.8%) and PMMA (30.5%), followed by PE with 8.1%. PA was the only material for which production value declined (by 6.7%).

Associations strive for more consolidationAware of the need for the country´s plastics industry to move closer together for improved clout, Febelplast – which represents 135 of Belgium´s 200 plastics converters, 15 companies from the elastomer segment and about 50 resins producers and distributors – is currently engaged in talks with its technology-oriented counterpart, Agoria Plastiques (B-1030 Brussels; www.agoria.be/plastiques), the specialist group within Belgium´s technology association Agoria, about a possible merger. Among Agoria´s members are composites producers and suppliers of the electric/electronics and automotive industries. These companies account for the quarter of the Belgian plastics industry that is not affiliated with Febelplast.

• e-Service:Fechiplast report 2003 (French) as PDF document (206 KB)