'Strategies for survival' - the challenges facing the European plastics sector
Oil price instability, competition from new players in the Middle East and Asia, cyclical over-capacity: these are some of the factors that are driving important changes in the way commodity plastics are produced and converted in Europe. These developments and the way plastics producers and converters are responding to them are the subject of a report published by the Economist Intelligence Unit. The report, entitled Keeping competitive in commodity plastics - strategies for survival in Europe, was sponsored by Alastian, a new 'no-frills' e-business channel for experienced users of polyethylene and polypropylene.
The report identifies several 'strategies for survival' being adopted by European plastics producers and users, and describes the role played by 'no-frills' operations like that of Alastian in cutting transaction costs and boosting efficiency in the distribution process. The report also notes other strategies, including consolidation - especially among the fragmented converter sector - as well as supply-chain integration and the use of technical innovation to increase productivity. "This report offers a useful analysis of the forces behind change in the European plastics market and its prospects for the future," commented Niels Nielsen, Alastian's general manager. "We're offering the chance to download a free copy of the report to our customers and visitors to our Web site (http://futureoftheindustry.alastian.com)."
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