Outlook 2016: South African plastics industry to sustain growth

Plastics|SA reported on solid growth during the last financial year, and a positive outlook for 2016 at its Annual General Meeting.  “Although we certainly need to take heed of warnings from reliable economists, it is not all doom and gloom in the South African plastics industry. Despite some of the plastics subsectors experiencing a downturn in demand as they struggle to adjust to increased imports and changes in the market for their products, key opportunities still exist for growth. For instance, the recent phase-out of import tariffs on polymers and other inputs contribute to more competitive input prices,” Philip de Weerdt, outgoing chairman of Plastics|SA told board members and other interested parties who were in attendance.

Mr. Philip de Weerdt, outgoing chairman of Plastics|SA

Strong despite adverse economic conditions
Plastics manufacturing contributes approximately 1.6 % to South Africa’s GDP and 14.2 % to the manufacturing sector and has been defined as a priority sector by the government.  According to the latest figures released, local plastics consumption has seen a year on year increase in recycled (diverted) tonnages (9%), while virgin tonnage consumption has stagnated at 1,400,000 tonnes.  When compared against the GDP growth of less than 2% during the same period, this is an achievement of which the plastics industry can be proud.

Polyolefins (PE-HD, PE-LD and PP) made up approximately 57 % of the plastics market, followed by PET (13.86%), PVC (11.09%), and Polystyrene (4.2%). Multi-layered and other plastic packaging materials made up 14.49% of the market.  

“The recycling of the majority of these different types of plastics is now successfully driven by Material Recovery Organisations (MRO’s) who act as a “conscience” for the plastics industry by getting membership buy-in from plastic producers and spending those funds on worthy recycling initiatives that increase the recycling rate of their specific type of plastics.

In 2014, Plastics|SA set the pace for the recovery, recycling and diversion of plastics from the country’s landfill sites with its aspirational vision named “Zero Plastics to Landfill by 2030”. According to Plastics|SA’s Executive Director, Anton Hanekom, the most recent recycling survey has shown that plastic diverted from landfill increased by 12.8% from 2013.  

2015 Plastics|SA Board, from left to right: Jeremy Mackintosh, Bernhard Mahl, Anton Hanekom, Douglas Greig

Plastics|SA announced the names of its newly elected board members for 2016. They are Anton Hanekom (Plastics|SA), Bernhard Mahl - Chairperson (Safripol),  Douglas Greig – Deputy Vice-Chairperson (Tuffy Manufacturing), Jeremy Mackintosh – Deputy Vice Chairperson (Polyoak Packaging), Douw Steyn - Ex-officio (Plastics|SA), Jaco Breytenbach (Transpaco Recycling), Jan Venter (SAPPMA), Loutjie de Jongh (Mpact), Mxolisi Khutama (Nampak Limited), Bob Bond (PISA), David Mokomela (Sasol Base Chemicals), Mike Myers (EPSASA), Leigh Pollard (HOSAF), Rowan le Roux (Polyoak Packaging), Wayne Wiid (Pioneer Plastics), Fernando Lopes (Engen Petroleum), and Helmut Oellermann (Plastichem).

Looking ahead
Government has requested the plastics industry to submit its waste management plans for the various sectors.  Mr. Hanekom said the leadership is hopeful that this might be an indication that Industry will be allowed to continue with current initiatives, without too much interference from government.

“During this past year, the plastics industry was forced to embrace change, adapt and face enormous challenges in a struggling economy which doesn’t always facilitate local manufacturing.  We are grateful to those members of the industry who contribute towards our activities by way of membership fees. There are still raw material producers and importers who are not subscribing to the fees and we would like to encourage the industry to support the raw material producers and importers that support us, making it possible to fulfil our vision of enabling a vibrant and sustainable plastics industry in South Africa”, Mr. Hanekom concluded.