THE POLYETHYLENE FILM EXTRUSION INDUSTRY IN EUROPE

Introduction
Polyethylene film extrusion represents one of the largest individual plastics processing sectors. The market for polyethylene resins used for film grew by 2.3% in 2011 and amounted to just over 7.5 million tonnes representing just under 20% of the total European polymer market. LDPE accounted for around 50% of this; linear grades and metallocenes 38% and high density grades 13% in 2011. Excluded from the figures are approximately 720,000 tonnes of reclaim materials which are also being used by the film industry.

CONSUMPTION OF POLYETHYLENE FOR FILM EXTRUSION IN EUROPE 2008-2012

8,000

7,000 HDPE

6,000
Thousand tonnes

5,000

4,000

LL/LDPE

3,000

2,000

1,000

0 2008 2009 2010 2011 2012

Applied Market Inf ormation Ltd., 2012

Market development
Polyethylene films have been highly successful in substituting other materials such as paper, cellulose and aluminium, due to its superior characteristics. Plastics now account for more than two-thirds of material consumption in the production of flexible packaging. However, the sector is now reaching a degree of maturity and recent years have been challenging for the film extrusion industry. Up until 2008 growth rates had increasingly tracked GDP advancing at 2%/year since 2004 on average. The recovery in demand for polymer by film extruders since the financial crisis has been slow and volumes in 2012 are still expected to be below the peak the market hit in 2007. Performance has been variable across Europe with overall growth pulled down by demand continuing to be weak in Southern Europe because of the effects of the eurozone crisis. In Italy the market has also been affected by the introduction of a ban on the use of single use carrier bags from 1st January 2011. Over the past two years (2010-2011) there has been relatively little re-stocking through the

OERLEMANS PACKAGING B.V

Polyethylene film companies operating in Europe
Company Location Country Estimated 2011 throughput (Tonnes) 18,000 13,000 4,500 17,200 52,700

1 2 3 4

Oerlemans Plastics Plasthill OPI Fardem Packaging

Genderen Hillegom Oosterwolde Edam

Netherlands Netherlands Netherlands Netherlands

Grand Total

Non-European polyethylene film operations

There are no operations outside Europe.

Product offering
The Oerlemans Plastics plant in Genderen houses 34 mono and co-extruders and produces polyethylene films (LDPE, LLDPE, MDPE, Metallocenes and blends) from 50mm to 10m wide. 8 colour flexo-printing is available. End products include pot soil bags, frozen food film, carrier bags, sheets, bags and many other products Plasthill uses 16 mono and co-extruders to produce 50mm tube to 10m wide film using LDPE, LLDPE, MDPE, in metallocenes and blends. Product strengths at this plant include unfolded film up to 4400mm wide, Static Intercept anti corrosion film and TopEmBoss embossed film and flame retardant films. Embossing machine for the production of its TopEmBoss film for example for the rubber and prepeg industry. OPI produce LDPE, MDPE, HDPE films in sizes up to 1,600mm. Flexographic printing is available in up to 6 colours. Products include packaging for magazine film, household (cleaning) and meat packaging including as sheets, covers and bags. Fardem concentrates production on the industrial sector and more specifically on 25-50kg heavy duty PE sacks with around 80% of supply in FFS form. The range includes open mouth bags (heat-sealed or glued versions), valve bags with internal or external valves, FFS film with or without gussets, with continuous or positioned printing and Optiblock bags on the reel with gussets, bottom weld, tear-off perforation and a watertight ventilation system.

Other activities in plastics

Perfon BV, based in Goor, Netherlands has been a part of the Oerlemans Packaging group since 1999. It specialises in packaging converting with materials such as BOPP, CPP and polypropylene, flexo printed in up to 8 colours. The company offers slitting, rewinding, hot needle perforation, macroperforation and punching.

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FORUMPLAST FOLIENFABRIK GMBH

Head Office:

Wenherr von Braun Str. 20 92224 Amberg Germany

Tel: Fax: E Mail: Web Site: Ownership:

+49 (0)9621 767 30 +49 (0)9621 733 68 info@forumplast.de www.forumplast.de Privately owned

Forumplast was established in 1976 in Nuremberg, Germany with a production of approximately 10,000 tonnes/year. In 1993, the production site was relocated into the eastern industrial area of Amberg, however in 1998, this site proved to be too small and further expansion was not possible so the company relocated again into the northern industrial area of Amberg, in the Oberfalz, Germany. By 2001 the company had expanded production to over 30 extrusion lines and now has an annual capacity of more than 30,000 tonnes of film. In 2005 Forumplast started production of stretch hoods which at that time formed only 2-3% of its business. Today stretch hoods account for over half of the companys activity. Around 80% of polymer consumption is LDPE. Company strategy is currently focused on maximising production and continuing to offer high quality products and optimal services to its customers.

Financial results
Units: EUR millions Turnover Profit before tax (PBT) % of turnover in polyethylene film extrusion % of PBT in polyethylene film extrusion % of turnover in plastics processing 2006 55.4 0.8 100% 100% 100% 2007 58.8 0.8 100% 100% 100% 2008 57.3 0.9 100% 100% 100% 2009 39.8 0.6 100% 100% 100% 2010 59.3 1.2 100% 100% 100%

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