Plastic sales to drop

MANILA, Philippines - Local plastic manufacturers expect a continuous drop in sales to both domestic and export markets this year resulting from moves toward banning or regulating the use of plastic bags.

Crispian Lao, president of the Philippine Plastics Industry Association, Inc. (PPIAI), said industry revenues have been declining due to market forces despite the growing market for plastics.

“The ban is really affecting it. We were hoping that we could at least prevent the further drop in the 25-percent decline in consumption last year. But the way it looks, it might go down further. The common perception about plastics is becoming negative already,” he said.  

Lao said if the production volume in the local market becomes smaller, the cost can go higher and can also affect their export market for plastics.

“The bulk of what we export is in the form of plastic bags. We export to the United States, Europe and Japan,” he said.

At least 17 local government units have already banned or regulated the use of plastic bags in a bid to reduce plastic wastes.

Lao pointed out that this situation is affecting the industry which directly and indirectly employs 650,000.

“Out of 175,000 (workers) in the affected companies, 20 percent are affected. What happened is that some of them lost their jobs because they were contractual, while others, instead of six-day workweek, are in a five-day workweek,” he said.

PPIAI has close to 200 members located in Metro Manila and in the provinces. – PHILEXPORT News and Features