Press Releases
To Our Business Partners Regarding the Global PET Film Shortage,
As you may be aware, Global PET film supply for packaging are in critically short supply. Rising prices have become a secondary challenge while securing stable material supply has become the primary focus. Vacumet has been forced to increase prices three times in 2010, with current levels for metallized film approaching unprecedented levels. Unfortunately we expect this trend to continue well into 2011 and possibly beyond due to a variety of events occurring both regionally and globally.
I am writing today to update you on the situation and Vacumet’s efforts to mitigate the effect of increased prices while securing stable qualified lines of PET supply.
The tight supply condition we find ourselves in today can be attributed to three primary drivers:
- Increased global demand for PET films in non-Packaging applications and market segments. These include electronics & photovoltaic/solar components.
- Lag in the capitalization & start up of new film manufacturing capacity due to the 2008/09 recession.
- Anti dumping action brought on by US producers of PET film against manufactures based in China, Taiwan, South Korea, India & Brazil, forcing the exit of certain suppliers from the US market place.
Vacumet is not standing still. Our focus today is on broadening the band width of our PET film supply chain, fast tracking R&D efforts on new metallized barrier technologies and materials and working closely with current vendors to secure credible forward delivery schedules. In addition we are fast tracking qualification of new materials and suppliers to ensure supply and keep rising prices in check.
I will continue to keep you updated on our efforts and any developments in the local and global situation. In the meantime, thank you for your continued loyalty and please do not hesitate to contact me with any questions or comments.
Sincerely,
Kent Kisselle
Director, Market Segments
