Wednesday, April 10, 2013

Flexible packaging can grow 4% this year, says Entire

The flexible plastic packaging industries will grow 4% this year, as a reflection of increase national agricultural harvest and demand more of the middle class. The balance sheet was made yesterday by Alfred Schmitt, who passed the baton of the Brazilian Association of Plastic Flexible packaging industry (Entire) for businessman Sergio Carneiro Filho, who is President of the organization between this year and 2015. Schmitt remains in the Association as Vice President of institutional relations.
Last year, the flexible plastic packaging segment ended with revenues of $ 12 billion, an increase of 7.5% over the previous year (R $ 11.2 billion), according to a survey done by Maxiquim consulting the Entire request. In volume, the sector grew 1.9%, to 1.813 million tons.
"In spite of this growth, the industry was unable to pass on to the market. The expansion of the segment, in practice, was below the inflationary index, "said Schmitt. The industry suffered from the volatility of costs, such as raw materials and labor, and have had a negative impact with the increase in imports of finished products.
For this year, Schmitt estimates a growth of 4% in volume, pulled by the food sector, in particular.
According to the study by Maxiquim, flexible packaging imports grew 11.5% in value ($ 573 million in 2011 to $ 639 million last year) and 12.8% in volume (120 thousand tons in 2011 to 136 thousand tonnes in 2012). Exports fell during the period. In value, the fall was 14% ($ 217 million in 2011 to $ 186 million in 2012) and 14.7% in volume (of 62 thousand tonnes in 2011 to 53 thousand tonnes last year). As a result, the trade balance deficit in this segment was $ 453 million, the largest of the last eight years.
The plastic packaging sector of the country has about 11 thousand companies and generates 350 thousand direct jobs. Companies associated with the Entire account for 40% of production in the sector.
Reducing the cost of electricity (as announced by the federal Government in 2012), maintaining the availability of resources for new investments by the BNDES and the current stability of raw materials costs indicate a more upbeat year for the flexible plastic packaging industry, according to Castro, current President of the entire supply.
The chemical industry in General has gone through a period of instability. Last year, the deficit of the trade balance of the hit record, reaching $ 28.1 billion. This year, preliminary estimates point to a even greater damage, surpassing the US $ 30 billion, according to the Brazilian chemical industry Association (Abiquim).
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