Plastics News - Show Daily - October 17, 2024 - 3

FAKUMA 2024
Plastics News, October 17, 2024 * 3
Material suppliers fi nd alternative markets
amid softening auto demand
ALBIS DISTRIBUTION
GMBH & CO. KG
By Sarah Kominek
Plastics News Staff
Soft automotive demand and
lagging sustainability regulations
are shifting the plastics industry
toward other markets, creating a
competitive atmosphere.
Hamburg, Germany-based Albis
Distribution GmbH & Co. KG
is looking at extrusion as a potential
area for growth, although
most of its customer base is
in injection molding, Horst
Klink, CEO, told Plastics News
at Fakuma trade show in Friedrichshafen,
Germany.
" We just launched an initiative
for extrusion, " Klink said. " We
don't want to step on the toes of
our production partners. But ...
we have to do something to get
some support because of the really
soft markets.
" The chemical industry, maybe
for another two years, will not be
able to fully utilize capacities, "
he said. " That means there's long
markets and materials available
... so very fi erce competition, and
we have to focus on effi ciency improvements, "
Klink added.
Albis is asking its existing injection
molding customers to investigate
uses for a new recycled
PET from Amsterdam-based supplier
Aloxe, which joined the distributor's
portfolio a few weeks
ago, Klink said. The recycled PET
is processed through polycondensation
and is approved for
food applications.
Regulation is pushing demand
for recycled PET, he said, as all
beverage bottles in the European
Union must contain 25 percent recycled
content by 2025.
" We typically don't sell to bottle
producers, " Klink said. " We sell to
small- and medium-sized injector
molders, but you can use [the
material] for cosmetics packaging
and kitchen accessories. ... It's an
add-on for injection molders. "
Despite lower volumes, cosmetics
packaging is " a very demanding
business, " he said. It requires
chemical resistance, dimensional
stability, and a consideration of
haptics and optics.
" I would not underestimate
[when] L'Oreal says, 'We need
something that shows value,' and
there's a lot of plastics that we
can recommend, " he said.
The market helping Albis to
grow is health care, Klink said. The
sector has grown from 9 to 10 percent
of Albis' business since the
second quarter of 2024, he said,
and will continue to grow with the
company's team of business development
managers in Europe, China,
Vietnam and Malaysia.
Since the pandemic, Albis has
expanded with warehouses and
sales managers in Austria, Greece
and Morocco. It expects to continue
to grow business outside of
Europe, Klink added.
CORRECTION
A story on Page 11 of the Oct. 15 Fakuma daily should have said
that Evonik Industries AG is reorganizing its Coating & Adhesive
Resins and Health Care units. It does not plan to sell its nylon
and specialty resins business.
Right: Cosmetics packaging,
extrusion and more uses
of recycled content are all
part of a push from Albis
Distribution GmbH & Co. KG
to explore more markets for
its materials.
Plastics News photos by Caroline Seidel
Automotive regulation,
recycling consolidation
" There is no growth coming
from ... Europe, " he said. " Not
much in e-mobility. We've invested
so much into [e-mobility and
sustainable solutions] product
development, [for the European
market]. It's really disappointing.
We have the entire portfolio. We
can offer every sustainable solution:
chemical recycling, mass
balance, post-consumer and
post-industrial. We have it all.
But it's still small. "
Albis'
automotive
customers
can't afford the additional cost
of sustainable materials without
strong circular economy legislation,
Klink said. " Not a drafted
law, but a law that is in place. "
" Everybody is waiting for orientation
and guidance, " he added.
" [We] need ... green OEMs
and Tier 1s who are behind this.
Costs are still too high, " but the
industry needs " to honor that
maybe a sustainable solution is
a little bit more expensive than
the conventional,
traditional
[materials.]
" The industry will continue
to see consolidation, " Klink
said. " [There's a] huge number
of compounders and recyclers
- too many. So the circular
economy needs to consolidate.
I think the crisis could take a
little longer [and] contribute
to a shakeout process. The industry
is going to see some of
these changes in time, with [a]
little bit [of] support from the
politicians, from the legislation,
would be nice. "
Tarragona,
Spain-based
Elix
Polymers SL is seeing the same
trends. " We're still waiting on regulations "
that encourage demand
for recycled materials, Fabian
Herter, marketing manager for
Elix, told PN at Fakuma.
Elix is adding to its E-loop portfolio
of recycled-content ABS and
polycarbonate/ABS resins, which
are used mostly in appliances,
electric and electronics products.
Elix works closely with local
partners in Spain to maintain consistent
supply of recycled materials,
Herter said.
With a general trend of soft
markets in 2024, " everybody was
waiting for September, " Herter
said. But markets are " not looking
as good as they expected. ... Everybody's
hoping on 2025, " which
B4-4206
ELIX POLYMERS SL
B5-5003
We sell to
small- and
medium-sized
injector molders,
but you can use
[the material]
for cosmetics
packaging
and kitchen
accessories. "
Horst Klink
Albis Distribution
GmbH & Co. KG
is expected to remain stable.
Elix has also seen softening of
automotive demand in the U.S. and
Europe due to a mix of competitors
in China and infl ation, he said,
adding that automotive is about 20
percent of Elix's business.
Generally, the
Albis CEO Horst Klink at Fakuma 2024 in Friedrichshafen, Germany.
automotive
market focuses on mechanically
recycled content because " the
chemically recycled content ...
always [has] a price surcharge, "
Herter said. " Automotive is really
price-sensitive. They're always
looking for [mechanically recycled]
PCR material at the same
price or even lower. "
Eventually, Herter said, with
regulatory support, automotive
suppliers and OEMs will need
to come around to higher prices
for recycled materials to meet
EU targets.
" The good thing is we have a
good mix of customers, " Herter
said. " We're not depending on
Fabian Herter, marketing manager for Elix Polymers SL, at Fakuma.
[automotive demand]. ... Polyamide
producers depend much
more on automotive than us. In
our case, consumer goods and
appliances are bigger. Washing
machines are doing quite good
this year. Consumer goods and
appliances, even with infl ation, is
picking up a bit. "
Health care has remained a stable
market for Elix in Europe and
the U.S., as well as demand for
chemically recycled content for
toy production.
https://www.nxtbook.com/nxtbooks/crain/plasticsnews_daily_20241015/index.php#/p/10
Plastics News - Show Daily - October 17, 2024

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