Shortages expected in polythene supplies

At least 6 European raw polymer manufacturers have declared Force Majeure and closed their production lines which affects the supply of raw polymers for many horticultural items, amongst them polythene tunnel covers, rope, string, twine, and packaging material. "This will not help the European horticultural industry to recover from the past 2 to 3 bad years they have had", said Les Lane, managing director of XL Horticulture.

The price of raw materials has risen by around 30% from a February low to April of this year. This has led to an immediate and very large price increase in finished products. Cynics are questioning whether there are real force majeure conditions at so many plants and in Germany, the trade group IK said that the number of force majeure cases has reached “epidemic proportions”. Officials there have added that a lack of information from resin suppliers makes it hard to know if true force majeure conditions have been met. ( source- Plastics News Europe). In addition many companies are having to ration their sales because they can’t get enough raw polymer to satisfy demand.

XL Horticulture comments that this is one year when carrying large stocks, as they do, is paying off. "We would like to point out that we have good stocks of polythene greenhouse covers and rope. However the price of new supplies will have to go up".

For more information:
XL Horticulture Ltd
Les Lane
les@xlhorticulture.co.uk
Tel: +44 01404 823044
Fax: +44 01404 823335
www.xlhorticulture.co.uk