Ceepackaging

In the research AMI carried out for its report “Corporate performance and ownership among polyethylene film extruders”, it estimated RKW’s 2005 throughput at 325,500 tonnes, narrowly surpassing BPI’s estimated 321,500 tonnes. However, AMI pointed out that in turnover terms BPI is still the largest European PE films group.

RKW has been growing through acquisition, a policy similar to BPI’s in the 1990s. BPI, meanwhile, has been consolidating after growth, and has closed a number of plants. As a result BPI’s polymer throughput in Europe is now some 45,000 tonnes less than at its peak in 2000, said AMI.

The involvement of private equity in the PE film industry also leads to rationalisation, said AMI, as investors look to focus on core areas or improve profitability. It indicated the example of Autobar, sold by Charterhouse Capital Partners to another private equity company in January, which closed one of its three sites in France and its operations in the UK to create a more profitable platform.

In another report, AMI’s “Guide to polyethylene film extrusion in Europe”, it said there had been an 11% drop in the number of companies operating in the UK. France and Italy too have seen some loss of capacity reflecting the challenging market conditions for PE film extruders.

Italy still accounted for the largest number of PE film extruders in 2006, with a 19.9% share of the European industry. It was followed by Germany (17.2%), Spain (11.1%), France (10.5%) and the UK (9.7%).

PE film extruders in Central Europe accounted for 9% of production in Europe in 2006, compared with 8% in 2003. Production of PE films has been growing at the annual rate of 12% for the past two years in Central Europe compared with 3% in western Europe.