Plastic chain registers advance, but raw material challenges banks

Pressed by the Exchange variation and increases in raw materials, the plastic industry seeks alternatives to improve its margins. Exports and investments in efficiency on the production line are some of the solutions found by companies. "The main raw materials have imported components or, although produced in Brazil, have international prices. The impact is of 40% to 70% in the total value of production and make the transfer of price is extremely difficult, "said the President of the Latin American Association of composite materials (Almaco), Gilmar Lima. The leader says that in terms of volume, the performance of the sector is being positive. "Improved this year, should grow 9%, but about a weak base and with tight margins. The manufacturing industry is suffering more, is pressed between large suppliers and customers. " In the view of Lima, companies have to get export more. "You have to look out for and seek new markets to minimize those ups and downs. Otherwise, it's going to be the same story. This political instability will exist at any time. " Another alternative is to invest in product development. "The industry always has to work accordingly, seek alternative materials and invest in research and people," says Lima. The Director of the RadiciGroup in Brazil, Jane Fields, says that the raw material has an impact of 70% on the cost of production. "This Oscillation causes Exchange losses, but we have a strict control of the Bank. It is very difficult to make the transfer, we negotiated with the client. " The Italian company manufactures polyamide, synthetic fibers and plastics, and provides for the automotive, packaging and electric. Between 2017 and 2018, the company invested $13 million in your R unit in Araçariguama (SP). "We expanded production by 50%, reaching about 20000 tonnes per year. Grew up 20% last year and should grow 10% in 2018 ", provides for the Executive. She says that in recent years, the market as a whole declined in Brazil and Radici won market share. "We have 18% share. Today, we have four large companies in this segment and left few small Brazilian, which should be reinforced in view of the small customers demand. " He points out that the automotive sector lived good time but lost pace by the fall of exports to Argentina. "The food was coming as well, fell a bit now for the sake of seasonality. The electricity sector is already falling, due to the time of construction. " Warm consumption restructuring Director (CRO) Jorge Zanatta group, Leandro Buciani, reveals that there is an inside job of reducing costs to minimize the impact of the exchange rate. "Margins are under pressure. The year is being positive in revenue, but it's challenging. " The group consists of two companies: Imbralit, manufacturer of asbestos-cement tiles and plastic water tank, and the Kangaroo, which operates in the market of flexible packaging. Both companies are headquartered in Criciúma (SC). "We feel a warm market in two companies, isn't everything that's moving. Grow through investment in marketing, innovation and new products, "says Buciani.De according to the Executive, the Kangaroo is more impacted by the increase in raw material. "The company feels directly the price of resin and the industries fail to pass. It takes a job of margin recovery. " In the perception of Buciani, the market is standing in relation to the elections. "Investors are waiting for what will happen, what will be the North of the country. The Kangaroo, we made small investments this year in upgrading of machines, but we're waiting for 2019 for something bigger. " The Group won R $146 million in the first half, 38% higher than the same period last year. "The prospect is of gross sales of R $350 million in 2018," says Buciani.