BOPP equipment vendors converge on Chinaplas

05/25/2011

The recent Chinaplas played host to three suppliers of BOPP and BOPET film lines, making for lively sales activity and market discussion after a period of relative dominance by a single market player.

The only absentee was Japanese equipment vendor JSW (Tokyo),Current market leader in terms of shipments Brückner Maschinenbau (Siegsdorf, Germany) reported continued strong investment in China for BOPP film lines. "We saw orders for the industry as a whole of 450,000 tonnes/year of processing capacity over the past two years, which translates to 10-111 new lines," says Brückner sales director Markus Gschwandtner."In 2010, supply and demand were well balanced in China but this recent investment will push the BOPP market into overcapacity," he notes.

The BOPP investment cycle in China is around three years according to Brückner, but extended lead times of up to two years for equipment delivery mean capacity addition and demand are often out of sync. "The Chinese Government's stimulus in 2009, and a cheap Euro and availability of industrial land in 2010 enticed processors to invest," adds Gschwandtner.

Brückner also sees renewed investment in BOPP capacity in Vietnam as a possibility. "The interest rate is forecast to fall from a peak of around 25% and this could stimulate investment."...
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