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Pandemic brought new opportunities for plastics companies

2020 / 04 / 24

As Sustainable plastics magazine emphasized, Klaipeda’s plastics companies are reluctant to forecast their 2020 results at this point: while the demand for some current and new segments has increased over the past few weeks, it is still unclear how oil prices and the state of the global economy will develop.

NEO GROUP, one of the largest European PET producers, says it is currently working to full capacity, although the first days of the lockdown were followed by some minor challenges in the logistics chain.

« The food industry and related activities were pronounced strategic during the pandemic, and so our production is in full swing,”

says Paulius Ambrazaitis, the chairman of NEO GROUP.

“The demand for packaged food currently grows, it is both fuelled by safety and longer shelf life that decreases the number of shopping trips. We are also seeing an increase in demand for segments such as bottles for disinfection liquids and the medical sector – the market needs more test containers, medicine packaging, and other products that use PET.”

Currently, NEO GROUP is fulfilling its first-quarter plans and expects at least ‘stable’ sales for the rest of the year.

« We’ve been hearing negative feedback from the public regarding the plastics. It looked like the plastics industry was Public Enemy No. 1. Now, as the world faces a major pandemic, we see an increasing understanding that plastics packaging is probably the safest one, it has great barrier properties and prolongs the shelf life of products. Plastics are also needed everywhere – for the production of medical masks, shields, and disposable clothing. This is all made of polyethylene, polyester, PET. Safety is the main priority now. However, as consumers, we should remain responsible for recycling and not littering, »

commented Ambrazaitis who also highlighted NEO GROUP’s commitment to circular economy efforts, as well as research and investment in this field.

Read more in Sustainable Plastics magazine: link