Plastics & Rubber Plant Closures May Signal Tough Market

Researched by Industrial Info Resources (Sugar Land, Texas)--Researched by Industrial Info Resources (Sugar Land, Texas)--It seems as though the plastics and rubber products manufacturing industry may be showing signs of a tough market, judging by the number of planned plant closures this year in the U.S..

The Plastics and Rubber Products Industry comprises facilities that primarily make tires, rubber and plastic hosing, belts, gaskets and seals, rubber goods, plastic film and sheet, laminated plastic products, plastic pipe, bottles, foam products and other assorted products.

The packaging industry is the largest end user of plastics machinery. Plastic bags, bottles, wraps and other items are produced via plastics machinery, according to International Trade Administration. Many small- and medium-size U.S. manufacturers do not have the capital to invest in new machinery or innovations, so they opt to close the plants.

Industrial Info is tracking 15 projects with a total investment value of $18 million that involve plastics and rubber plant closures this year. Some companies are closing consolidating facilities in order to reduce production costs. Most of the closures involve plants that make plastic products, rubber belts and plastic caps.

The good news is that in 2017, things are expected to look up for the industry. Industrial Info is tracking 21 U.S. grassroot plastics and rubber projects worth $1.37 billion that are scheduled to be completed in 2017. Among them are Giti Tire USA Limited's $560 million tire plant in Richburg, South Carolina and Hankook Tire America Corporation's $400 million Phase II tire plan in Clarksville, Tennessee.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.