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PP and PET strapping threatened: industry seeks exemption from new EU regulation17 Apr 2025 / ChemCourier. Polyolefins Market Weekly / regulations

image1.pngThirteen European producers of strapping materials have formed the Project Alliance Strapping to seek the exclusion of strapping materials from the requirements of the new EU Packaging and Packaging Waste Regulation (PPWR). The issue is particularly critical with Article 29, which sets mandatory quotas for the reuse of packaging for transportation, including strapping materials.

Polypropylene (PP) and polyethylene terephthalate (PET) — the two key materials used in strapping production — are known for their high strength, moisture resistance, full recyclability, and energy efficiency in production, making them highly eco-friendly compared to other types of packaging.

However, industry representatives warn that the repeated use of recycled PP and PET strapping is unsafe, as over time these materials lose strength, which can lead to cargo instability during transportation. Furthermore, the organisation of reverse collection and reuse of such strapping is practically unfeasible from a logistical perspective.

Martin Bussmann, a representative of Mosca and Vice-Chair of the alliance, stated: ‘In principle, we support and welcome the PPWR. However, there is an urgent need for action regarding Article 29, which defines the requirements and quotas for the reuse of transportation safety devices such as stretch film, pallet covers, and strapping materials.’

The alliance plans to submit a scientifically-backed position paper to the European Commission by mid-2025. The document will argue that a ban on the single-use of PP and PET strapping will lead to a reduction in transportation safety and an increase in overall waste. The arguments will be supported by studies, including research conducted by the Fraunhofer Institute.

The alliance includes companies such as Mosca, Teufelberger, Fromm Plastics, Messersi, Sekisui Jushi, Embalcer, Cpdesign, Green Tech, and others.

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China's economy sees strong growth in Q1 202516 Apr 2025 / ChemCourier. PVC Market Weekly / ChemCourier. Polyolefins Market Weekly / prices & market situation

image1.pngChina's economy demonstrated robust growth in Q1 2025, with GDP reaching CNY 31,875.8 billion, up 5.4% year-on-year, according to recent government data.

The manufacturing sector showed particularly strong performance, with value added increasing by 7.1% year-on-year. High-tech production grew by 9.7%, accelerating 0.8 percentage points faster than in 2024.

However, Chinese citizens are concerned that recent US tariff announcements could impact China's manufacturing exports, particularly in the automotive, high-tech sectors and, by extension, polymer market.

Reminder: China increased tariffs on US goods to 125% from 84% on 11 April in retaliation to President Donald Trump's recent tariff hikes. Chinese officials stated that with tariffs at current levels, ‘there is no longer a market for US goods imported into China’ and warned they would ignore any further US increases. China expressed openness to trade talks with the US on 16 April, even after the White House clarified that China now faces up to a 245% tariff on imports in the United States.

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Rehau Automotive and SRG Global merge to form new auto parts entity9 Apr 2025 / ChemCourier. Polyolefins Market Weekly / company news

image1.jpegAtlas Holdings, a US-based company, has announced the acquisition of Rehau Automotive, a German automotive components producer, and its merger with SRG Global. The result of this merger is the creation of a new player in the automotive exterior parts market, RESGR Automotive.

After receiving approval from EU antitrust authorities in February, Atlas Holdings finalised the acquisition of Rehau Automotive, merging it with its portfolio company SRG Global. The new company, RESGR Automotive, combines SRG Global's expertise in injection-moulded and decorated parts with Rehau Automotive's expertise in plastic bumpers and body panels.

The Rehau Group, the previous owner of Rehau Automotive, retained a minority stake in the new industrial entity. RESGR Automotive currently operates 22 production facilities and employs 10,000 people worldwide.

RESGR Automotive has been headed by Jeff Stafeil as CEO, while Markus Distelhoff, former CEO of Rehau Automotive, will oversee operations in Europe and Africa.

‘The combination of Rehau Automotive and SRG Global creates a leading global supplier with highly complementary positions, unique capabilities and trusted customer relationships, ensuring RESGR's long-term success,’ Stafeil said. ‘Rehau and SRG bring to their work a combined 160 years of experience serving the world's leading automakers with unparalleled capabilities.’

Atlas Holdings is headquartered in Greenwich, Connecticut, and has a portfolio of 27 companies with more than 57,000 employees at 350 facilities worldwide. The group operates in a wide range of industries, including automotive parts supply, building materials, construction services, food manufacturing, metal processing, packaging, paper making, power generation, and supply chain management. Atlas Holdings' total annual revenue is about $18 billion.

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