PZPTS warns about mounting pressure on the plastics supply chain

PZPTS warns about mounting…

The Polish Union of Plastics Converters (PZPTS) has presented its position on the growing pressure on the European plastics supply chain, referring to the communication issued by EuPC. The association points out that the ongoing geopolitical tensions and their impact on the prices of energy and petrochemical feedstocks have a direct effect on the operation of the plastics converting sector in Poland. This applies in particular to enterprises in the small and medium-sized segment, which constitute the core of the national plastics processing industry.

According to PZPTS, domestic companies are already facing sharp increases in raw material prices, unstable supplies and rising energy and logistics costs. This configuration of cost and supply factors makes production planning more difficult, limits the ability to conclude long-term contracts and reduces investment capacity. These constraints also affect investments related to the transition towards a circular economy, including the development of recycling, improvement of raw material efficiency and implementation of circular solutions in the design and use of plastic products.

The association shares EuPC's view that a further increase in energy and polymer costs may ultimately lead to a reduction in production at processing plants and, in extreme cases, to plant closures. PZPTS notes that the potential threat to sectors considered strategic from the perspective of the economy and social security is particularly worrying. These include, among others, healthcare, packaging, construction and automotive, whose operation largely depends on stable and predictable supplies of plastics with appropriate quality parameters.

Risk for strategic sectors of the economy

The statement emphasizes that disruptions in the supply chain and rising raw material costs may translate into reduced availability of plastic products in areas that are crucial for market functioning. In the healthcare sector this concerns, among other things, components and medical devices, pharmaceutical packaging and single-use materials. In the packaging industry, systems ensuring the safety and quality of food and consumer products are particularly sensitive. In construction, plastics are an important element of thermal insulation, installation and structural solutions, while in automotive they affect safety, vehicle weight and energy efficiency.

PZPTS indicates that supply instability and rising energy costs may undermine the competitiveness of the European and domestic plastics converting industry compared with producers from outside the European Union operating under different regulatory and cost conditions. In the longer term this may result in shifting part of production outside Europe, which would weaken both local value chains and the ability to deliver environmental objectives based on the existing industrial infrastructure.

Call for measures to stabilize the energy market

In its position, the association calls on national and EU institutions to take urgent action to stabilize the energy market. PZPTS proposes that mechanisms to limit energy price increases be considered, as well as measures to ensure predictable operating conditions for the plastics converting industry. In the association's view, stable energy prices are crucial both for current production activities and for investment decisions concerning plant modernization, energy efficiency improvements and the implementation of new technologies.

The organization also draws attention to the importance of actions in the field of foreign and security policy. The statement underlines that coordinated diplomatic efforts aimed at de-escalating geopolitical tensions are necessary, since these tensions have a direct and indirect impact on the availability of energy and petrochemical feedstocks and on price levels in international markets. The association notes that a more stable geopolitical environment would help reduce the risk of supply chain disruptions and facilitate long-term planning by enterprises.

Transformation towards a circular economy under pressure

PZPTS recalls that the plastics converting sector remains committed to environmental objectives, including activities aimed at reducing environmental and climate impact, improving resource efficiency and developing a circular economy. However, the association points out that the implementation of ambitious targets in the area of environmental transformation is strongly dependent on the stability of the economic environment and access to investment capital.

The statement stresses that without adequate support from public policies and without predictable market conditions, the deployment of innovative solutions in recycling, eco-design of packaging and emission reduction may be significantly slowed down or partially halted. This may hinder the achievement of the circular economy targets adopted at EU and national level and weaken the sector's potential to provide solutions that support the decarbonization of other branches of the economy.

Declaration of cooperation from PZPTS

In conclusion, PZPTS declares its readiness to cooperate with national and European partners in developing solutions that support the stability and competitiveness of the plastics converting industry. The association highlights the importance of dialogue between industry representatives, public administration and sector organizations at EU level, which should make it possible to better align regulatory and intervention measures with the actual situation of enterprises.

In the organization's view, constructive cooperation between stakeholders can help develop instruments that, on the one hand, ensure security of supply and conditions for the development of production in Europe and, on the other hand, enable the continuation of the transition towards more sustainable models of manufacturing and using plastic products.