Encouraging results of UAB Pack Klaipėda and UAB Plastara in 2024
In 2024, the European plastics industry faced significant challenges due to strict regulations, high energy prices, and competition from cheaper foreign products. By the end of the year, the latest European plastics production data revealed a greater-than-expected decline in both European plastics manufacturing and recycled plastics production.
According to Plastics – The Fast Facts 2024, EU plastics production decreased by 8.3% in 2023, while mechanically recycled plastic volumes fell by 7.8%. Meanwhile, global plastics production increased by 3.4%, leaving Europe with only a 12% share of the global market. It is important to note that Europe’s share of global plastics production had already declined from 22% in 2006 to 14% in 2022. As of now, statistical data on the plastics industry for 2024 has not yet been published, but trends in EU countries are not particularly promising.
While plastics companies operating in the EU are experiencing varying degrees of decline, Lithuanian Plastics Cluster companies UAB Plastara and UAB Pack Klaipėda are currently enjoying strong results in 2024.
UAB Plastara specialises in the production of LDPE virgin and recycled films: bags on roll with tube, loose bags, garbage bags, blocked bags,thermo shrinking films, films on roll, freezer bags, bags with print – 1 colour, running print, 2 layers Coex bags, 3 layers Coex bags, fire resistant bags, bags with macro and micro perforation ant etc. UAB Pack Klaipėda is one of the largest companies in the Baltic region specializing in sustainable plastic packaging for the food industry, ensuring food safety and extending product shelf life (takeaway food containers, packaging for fresh and frozen meat, etc.).
UAB Plastara closed the previous year with an 18% growth, while UAB Pack Klaipėda achieved a 10% increase (with a 9% growth in production volume). In 2024, UAB Plastara expanded its sales channels to Greenland, Iceland, and Romania, with exports accounting for 80% of its total production. Meanwhile, UAB Pack Klaipėda expanded its client network in the Netherlands, Spain and France, with exports making up more than 90% of its production to EU countries. Andrius Kruševičius, Commercial Director of UAB Pack Klaipėda, is pleased to report that the company has yet to experience any downturn in any segment, and the order volume is steadily growing.
Both companies are members of the Lithuanian Plastics Cluster and actively engage in visits to potential clients across the EU. According to Jurgita Stumbrevičienė, Head of Sales development of UAB Plastara, direct visits to potential customers significantly increase order volumes. On the other hand, participation in international trade fairs such as Fachpack, Scanpack, and Interpack helps establish new connections that later evolve into successful partnerships. In 2024, both companies took part in Fachpack, one of the biggest packaging sector trade shows in Europe, held in Nuremberg, Germany. The companies shared a joint stand and received significant attention as well as new orders.
At the moment, UAB Pack Klaipėda nd UAB Plastara share a significant number of clients and a steady flow of orders since they operate in the HORECA sector (food packaging boxes, films on roll, garbage bags, etc.).
Both companies operate based on circular economy principles and are already recycling production waste. Andrius Kruševičius and Jurgita Stumbrevičienė, when asked about the general outlook for the European plastics industry, expressed concerns about excessive regulations, which could significantly impact production, sales, and further expansion. To avoid further industry decline and promote sustainability, it is crucial to review policy measures, invest in recycling technologies, and encourage the use of recycled plastics. Only through these efforts can Europe maintain its competitiveness and leadership in the sustainable industry sector.
