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Further increase in European tube production in 2011

September 2011

Following a record result in 2010, European tube producers who are members of etma were able to increase their production by a further two per cent in the first half of 2011, to about 5.6 billion units. Shipments of laminate tubes and plastic tubes rose by three per cent, whereas demand for aluminium tubes stagnated.

“The booming demand of 2010 may be over but the order situation and capacity utilisation can nevertheless still be described as satisfactory,” says Gregor Spengler, Secretary General of etma. “A positive consequence is that at the beginning of 2011 there was a reduction in the extremely long delivery times of 2010 to a healthy normal level.” Amongst other things, consumer demand in the first half of 2011 was driven by intensified promotional campaigns in the cosmetics market, which accounts for some 44 per cent of total tube shipments. Overall, a continuing trend towards smaller lot sizes and a return to elaborately decorated tubes could be observed, which means greater complexity and flexibility for tube manufacturers when it comes to production planning. In addition, increased prices for raw materials and energy and higher costs for closures, lacquers and printing inks in the first half of the year have put pressure on margins.

In view of the renewed turbulence in the international finance and currency markets and the resultant loss of confidence on the part of market players, uncertainty is spreading in the European tube industry. If this potentially explosive situation cannot be defused, it is to be feared that the negative developments will also spill over into the real economy and lead to growing caution on the part of clients and consumers. The outlook for 2012 is therefore correspondingly uncertain.

   

Press_Release_2011-09-26.zip