The 14th International Plastics Trade Fair, K ´98 (Düsseldorf, 22 to 29 October), was a trade fair par excellence which once again impressively confirmed the unchecked dynamism of the plastics industry worldwide. Virtually all those involved – exhibitors, visitors, associations and Messe Düsseldorf alike – were pleased with the results. The Plasteurope.com editorial team has summed up the highlights for you:

Economic climate: further growth is certain
The optimistic mood prevailing in Düsseldorf (“K” Chairman and Battenfeld manager, Dr. Helmut Eschwey: “This trade fair is certainly great fun”) stems from the repeatedly-voiced opinion that the growth of the plastics industry remains unchecked – at least in the Western industrial nations. And, as far as Asia is concerned, the medium-term forecasts are already relatively optimistic once again. The fact that BASF is transferring the headquarters of its plastics division, under the direction of Dr. Volker Trautz, from Ludwigshafen to Singapore on 1 April 1999 can be viewed as a positive sign.

When it comes to the general economic trends of the next few months, optimism is also the mood prevailing in the plastics machinery sector, which reported a surprisingly high level of business transactions in Düsseldorf. The spectacular boom came to an end roughly midway through the year, of course.

The associations of the German and European plastics processing industries are expecting further growth of some 5% in 1999. Something that was also discussed in Düsseldorf needs to be borne in mind here, however – namely that the sector is no longer marked by a uniform economic climate and that the economic situation can differ greatly from one company to another. More than ever before, it is now a question of whether companies are sufficiently well-prepared for the competition of the next millennium in all the areas that count.

Topic No. 1: cost leadership
The international raw materials industry has repeatedly shown in its publications too that company mergers, acquisitions, portfolio swaps and world-scale plants are basically all aimed solely at acquiring or expanding cost leadership. And this has also become the case in the plastics machinery sector. At K ´98, increasing reference was made to the need to view cost leadership over the entire added value chain in the plastics industry as an absolute must. In many cases, it is the processor who is the stepchild here. As one expert commented to PIE: “The processor should ask much more of the raw materials and machinery suppliers in a bid to achieve a cost-leader partnership.”

Metallocenes: still no breakthrough in applications
The question as to innovations in the raw materials field at the “K” trade fair always elicited a reference to the metallocene grades. A series of raw materials producers demonstrated pioneering applications (primarily in packaging) for these innovative, “made-to-measure” materials. But the processors are still rather hesitant, since no notable capacity has been built up as yet and practical experience of production is still lacking. The situation will have become clearer by the next “K” to be held in Düsseldorf in 2001 (“K 1”??).

What else was there on the raw materials stands? The European and worldwide restructuring of the plasticsproducing industry with further concentration is still on the agenda. After the polyolefins and PVC, it is now the turn of the engineering plastics. Pan-European distributors and compounders are gaining increasing market importance. And price developments? With a surprising amount of discipline, the raw materials suppliers managed not to speak about prices on their trade fair stands – and this for good reason. It is fairly certain that prices for almost all plastics will tend to fall over the next few months, and producers fear nothing more at present than a further decline in prices.

Recycling: sobering up after the euphoria
While recycling was still a highly controversial issue at the plastics trade fair three years ago, economic, ecological and political questions relating to this field only played a subordinate role this time round. The euphoria of earlier years has given way to a more sober view more or less across-the-board. While machine and plant builders specialising in solutions to recycling problems reported good business in Düsseldorf, this was primarily from overseas. No new recycling capacity is to be set up in Germany and Europe in the foreseeable future, since existing capacity is not always used to the full. As far as the recycling of plastics packaging in Germany is concerned, insiders are expecting further insolvencies in the field of mechanical recycling.

The situation is different for the producers and suppliers of secondary materials, such as regrind and recompounds. While they report increasing demand particularly for engineering applications (e.g. polycarbonate, polyamide, ABS), they are also deploring the ruinous price pressure in some cases. This price pressure is being compounded by the weakness in the price of virgin material. Leading suppliers of secondary plastics are thus attempting to separate the grain from the chaff by playing the quality card (certified material grades, quality assurance).

Medical technology: “K ´98 Special” a success
The organisers, Messe Düsseldorf, showed competence and farsightedness with the special events that went with the “K ´98 Medical Technology Special”. A broad range of lecture topics on current innovations and on the readily implementable and visionary application potential of polymers in medicine generally ensured a well-filled auditorium. The accompanying exhibition also attracted a surprising number of visitors. All those involved agreed that the “K´98 Special”, showing current and future applications, focused on a field that was particularly relevant to the K ´98 motto – “Success through innovation”.

The “K ´98 Special” in Düsseldorf also impressively demonstrated the fact that medicine constitutes a highly attractive growth field for plastics. The absolutely vital cooperation between machine and mould builders, raw material suppliers and the plastics processors comes into its own here.