Innovia Films Announce Capacity Expansion to Boost BOPP Films Supplies in Germany

At the Dow ValuePark Schkopau in Germany, Innovia Films, a leader in science-based materials and a major producer of highly differentiated specialty Biaxially Oriented Polypropylene (BOPP) Film, announced a significant expansion at its Innovia business unit near Leipzig.

To meet the rising, sustainability-driven demand for materials with lower resin content, a brand-new 8.8-meter-wide multilayer co-extrusion line will produce highly engineered thin-gauge label films. With 36,000 tons of annual capacity designed for best-in-class energy efficiency, the new technology is unique for BOPP films.

Innovia Films Europe's Managing Director Simon Huber made the following observation: As the only uncoated and printable label film was currently available, the planned production of BOPP Film is an innovation for the application. The label market will receive thinner films from the new line in Germany, which is close to many buyers, and it will support the plastics circular economy.

This Innovia Films expansion in Germany will boost the supply of BOPP Film in Europe and help reduce the dependency on the product from overseas.

The imports from other countries and the cost of the feedstock Polypropylene have a major impact on the fluctuation of BOPP Film prices in Europe.

On the same side, it was observed that the BOPP Film prices in Germany increased by 1.2% during the second week of March 2023 as the demand from the downstream packaging industry increased while the supply in the market remained stable. Additionally, the price of feedstock Polypropylene was stable during this timeframe.

The BOPP Film prices in the UK increased by 1.8% during this week due to increased demand from the domestic market, while the supply remained stable across the UK market.

It should be noted that the top exporter of BOPP Film in the world is India, followed by China and Vietnam, while Germany imports most of its BOPP Films from India, Turkey, and South Korea. However, the European Union exports most of its BOPP Films to Pakistan and Ukraine.

According to ChemAnalyst, this new plant expansion and introduction of this new technology will significantly improve the country's production capacity and reduce imports from overseas. On the other side, it is anticipated that the price of BOPP Film in Europe may decline in the second half of March 2023, as the price of feedstock Polypropylene is anticipated to decrease during this period due to low demand from the downstream industries.