German plastics recover after two years

According to the German association of plastics producers, Plastics Europe Deutschland, in the second quarter of 2024 plastics production in Germany rose by 2.2% compared to the previous quarter and was thus above the previous year's level for the first time since the beginning of 2022.

"After two difficult years, the plastics manufacturing industry in Germany is showing the first signs of recovery, but the structural problems remain," said Alexander Kronimus, acting CEO of Plastics Europe Deutschland. "High energy and raw material costs, too much bureaucracy and long approval procedures are putting a strain on companies. The German plastics manufacturing industry has been able to halt the downward trend for the time being. If the federal government does not succeed in making Germany competitive as an industrial location, urgently needed investments by companies in the circular transformation will be further delayed."

Despite the recovery in the first and second quarters of 2024, the production level of plastics producers remained low and is still 21% below the 2021 level in Germany. The order situation of companies also remains critical, as orders for plastics also declined slightly in the second quarter.

Even if demand for plastics increases slightly over the course of the year, Plastics Europe Germany expects only a moderate recovery. "Impulses are currently coming mainly from outside Europe, as industrial production is developing better there," explained Alexander Kronimus. "This uneven development shows how important it is for Germany to remain competitive as a location and calls for a clear response from the federal government. In order to drive the transformation to a circular economy and keep pace internationally, Germany must become both more circular and competitive again."