The global resin market has faced many structural changes over the past 10 years caused by a variety of factors including customer demands, government regulations, suppliers, and the changing habits and behaviors of the general population.
As sustainability has become a key focus in the consumer market, some governments have introduced regulations and policy restricting or even banning plastic made products due to their perceived impact on the environment. Because of market changes, customers are becoming more and more particular about quality, performance, and sustainability. Demand is increasing for lightweight, better performing containers that can be recyclable or that already contain a certain ratio of recycled content. In this new environment, our reconditioning business unit has become instrumental in providing services and supplying high quality recycled resin to our plants for our various applications.
On the other end of the spectrum, the low cost of abundant shale gas in North America has increased the resin supply enabling many petrochemical companies to invest in building new plants and expanding production of virgin plastic resin. Asian companies have also announced expansion projects that should impact market supply in the coming years.
In order to determine the best strategies that will support Mauser Packaging Solutions’ growth and enhance our competitiveness in the market, it is essential that we are able to navigate these ever-changing market dynamics by excelling in supply chain management to fulfill our plants in the most effective way. We must also actively develop new grades of product that meet customer quality standards and allow us to take advantage of the most cost-effective materials on the market. By continuing to explore new avenues of material procurement and product development, we are positioned to remain competitive in a constantly changing market.