Review of the Estonian plastics industry and market in 2003

Plastics industry began to develop in Estonia in the 1920`s. Casein buttons, celluloid combs, technical and consumer goods of bakelite were made. In the 1950`s thermoplastic materials were taken into use and that established a base for wider use of plastics in all fields of life.

On the basis of smaller enterprises and artells, larger enterprises with plastics processing and tool-making departments were formed. The most well-known of them were Estiko, Estoplast, Norma, Polümeer, Punane RET, and Salvo. In the 1970´s and 1980`s a fundamental reconstruction of these enterprises took place. Reconstruction was carried out on different levels in different enterprises, and was completed in 1988.

During privatization in the 1990`s, the whole branch of industry passed through great changes. New enterprises were established. Previous companies either remained intact, were divided or went through structural changes. By today, all the plastics processing and tool-making enterprises are privately owned - either by the local, foreign or mixed capital. According to the data of the commercial registry there are presently 200 companies or enterpreneurs active in the field of plastics.

After Estonia regained independence, the plastics market has also gone through great changes. Previous military and civil electronics industry has broken down due to the vanishing of the Eastern market as well as to the outdated materials that were used in this field. Food industry, construction industry and environment protection have come to the forefront. Plastics industry is adapting itself to the new conditions, directing more resources to the production of packaging and insulation materials, pipes and environment protection technology. The production of car safety belts, car parts, and baths is continued successfully. The production of plastic details for electronics has been re-established on a new modern level.

All the main plastics processing technologies - injection moulding, extrusion, blow moulding, rotational moulding, vacuum moulding, mechanical treatment, foam processing and production of reinforced plastics goods - are represented in Estonian plastics industry. Injection moulding forms the greatest part of it. There is no compression moulding of thermosets at the present time.

Estonian plastics industry offers employment for 3000 people.

In 2003, Estonia produced plastics and rubber goods for close to 190 million euros. This formed 3,9% of the total output of the processing industry. The products of the plastics and rubber industry were sold for 188 million euros. Export formed 59,4% of it. The export of plastics and rubber goods formed 4% of the total export of the industrial production.

The extent of the foreign trade of plastic and rubber goods, semimanufactured products and raw materials is continuously increasing from year to year.

The export of plastics and plastic goods makes up 85% of the total export, share of rubber and rubber goods has decreased. The main export countries are Sweden, Finland, Latvija, France, and Lithuania.

The extent of the total import was 291 million euros in 2003. Plastics and plastic goods were imported for 238 million euros. Rubber and rubber goods were imported for 53 million euros. The main import countries were Finland, Sweden, Germany, Lithuania, and Poland.

In some chapters of the Harmonized System of commodities, Estonian export is exceeding import either in quantity or value. These chapters are as follows: boxes, bottles, floor coverings, bathtubs, windows, hoses, office supplies, UF resins and recycled materials - PE, PP, PS, PVC, PET.

Also resins - urea, phenolic and epoxy resins - are produced in Estonia. In 2003, 27100 tons of synthetic resins were produced.

The plastics industry is supported by a well-developed mould-making industry.

In 1992, the Estonian plastics industry reached a great depression period due to the disappearance of the Russian market. Starting from 1997, the industry has been growing steadily. In 2003, production grew by 33%, sales grew by 24%, and exports grew by 47% compared to 2002.