March 23, 2026 17:31

The energy crisis and geopolitical tensions are placing severe pressure on the European plastics value chain, prompting EuPC, the European Plastics Converters association, to warn that, if polymer and energy costs continue to rise, the risk of plant shutdowns or production cutbacks could increase, with possible knock-on effects on strategic sectors such as healthcare, packaging, automotive, construction and energy production.

“Given such extreme volatility in raw materials and energy prices, price increases will have to be passed on along the entire plastic value chain,” said EuPC President Benoit Hennaut.

The emergency relates in particular to the sudden rise in plastic raw material prices, instability in supply availability, increasing energy and logistics costs, as well as reduced predictability and growing difficulties in production planning.

“Companies in the supply chain are already operating with severely compressed margins and are seeing a decrease in their profitability, taking significant financial risks to secure essential materials for strategic sectors,” the association said. “If the situation continues to deteriorate and plastics converters are left to absorb rising raw material costs on their own, there is a serious risk that some companies will be forced out of business.”

For this reason, EuPC is calling on European policymakers and Member States to introduce a cap on energy prices, as discussed at the EU Council meeting on March 19, and to make every diplomatic effort to stop the war in the Middle East.

Europe’s plastics converting and processing sector includes 50,000 companies, employs more than 1.6 million people and generates turnover of more than EUR 300 billion.

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