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Perspectives Plastics Industry

Petri Ven (Secretary-General Federplast.be)

Peter Perremans (Deputy Secretary-General Federplast.be)

Sustainability – Competitivity: a win – win?

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Challenges: High labor and energy costs are a competitive disadvantage for the Belgian plastic converter

Challenges: Skilled labor forces are essential to remain competitive

• Assessment of access to skilled labor forces

• Negative image of the sector

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Challenges: Increasing cost due to regulations & fragmentation of European market

Challenges: Competition is becoming global

• Direct competitors are still other European converters

• However, more and more competition from low cost countries such as:

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Challenges: Supply of raw materials is becoming more volatile

• Supply basic polymers becomes more volatile

• Belgium is net exporter of recyclate

Challenges for our Competitiviness

� High labor and energy costs� Shortage of skilled labor� Increasing costs regulatory

framework� Fragmentation of European

market� More and more competition

from low cost countries such as Turkey, Asia/China, Middle East

� Supply of raw materials is becoming more volatile

Challenges for Competitiveness

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Strategic levers to maintain competitiveness: Plastic converters go for efficient processes and skilled labor

Strategic levers: Plastic converters go for innovation and quality to increase their competitiveness

• Innovation in the field of:

• Process

• Product

• Business Model

Business

Model

Product

Process

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Strategic levers: Plastic converters go for customer proximity to differentiate themselves from low cost suppliers

Strategic levers: Plastic converters go for sustainability

• Grey text:

• Blue text

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Strategic levers: Plastic converters ask public authorities to create a supportive framework

• Plastic converters ask from the different public authorities:

• a lower administrative burden

• harmonization of the regulatory framework conditions within Europe

• the creation of a level playing field through the organisation of market surveillance

• political measures that stimulate sustainability and circular economy and that safeguard the competitiveness (e.g.: green deals,…)

Strategic levers and challenges to our competitiveness

� High labor and energy costs� Shortage of skilled labor� Increasing costs regulatory

framework� Fragmentation of European

market� More and more competition

from low cost countries such as Turkey, Asia/China, Middle East

� Supply of raw materials is becoming more volatile

Challenges for Competitiveness

� Focus on efficient processes� Focus on skilled labor� Focus on innovation and quality� Customer proximity as

differentiating factor� Focus on sustainability and

circular economy� Demand to public authorities to

create a supportive framework

Strategic levers to maintain competitiveness