• Investment frenzy driving down margins in BOPP film

    Investment frenzy driving down margins in BOPP film

    In the space of two years the BOPP film industry has moved from a scenario of modest capacity growth and improving margins to one where it seems everyone is struggling to make money thanks to another frenzy of investment in high capacity BOPP film lines around the world.  While demand for BOPP film continues to grow respectably, nowhere is it advancing sufficiently to absorb these capacity increases without causing a margin fight to either grow or maintain market share.  Companies with high debt and/or aging assets that cannot match the efficiency of modern equipment are particularly vulnerable and the new capacity increases are expected to drive rationalisation of older capacity and/or merger and acquisition activity.

    These are some of the findings of AMI Consulting’s latest report on the status of the global BOPP film industry just published.  

    Click here to read the full press release.

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