High prices and supply bottlenecks for important automotive plastics are pressuring OEM suppliers, the newsletter Plastics Information Europe (PIE, Bad Homburg / Germany; www.pieweb.com) says in a current report. Companies paying more for polymer will have less to invest when increasing order volume necessitates expansion. Small and medium-sized players will be especially strained, as PIE notes.
There are no signs of an imminent turnaround, but when the auto industry revives, suppliers also will have to cope with the changing structure of the market. European R&D initiatives underscore that they fully intend to participate in such innovative developments as electric vehicles, says the newsletter.