The United Kingdom had voted to leave the European Union at the end of June. The British plastics industry will survive the 'Brexit' vote, but obviously, it will bring market volatility in the short term.

Managing director of polymer distributor Plastribution, Mike Bowell, as well as former president of the British Plastics Federation, said to PRW "The industry will survive, we will be more competitive in the value-added arena, although raw material costs will likely rise as sterling falls against other currencies." He also said there could be implications for investment on the back of the 'Leave' vote.

Commenting that Europe would remain the firm's largest market, Matthews, managing director of automotive supplier Nifco UK said: "We have to continue making superior, high-quality products in this country. That is essential.

"Investment decisions will be crucial in the months to come. As an industry we need to show that we are creative and innovate, as we did before."

Matthews expressed concerns at the possibility of rising logistics costs, and noted the fall of sterling against the US dollar, since his company imported a lot of equipment priced in the latter currency.

"If it falls significantly we will become uncompetitive," he said.

Meanwhile, Philip Law, director general of the British Plastics Federation (BPF), said the ramifications of the vote were currently not known or understood.

"However the BPF will continue working with government, members and other stakeholders to make sure the interests of the U.K. plastics industry are protected and developed.

"We will also be working closely with members to help them interpret the impact these changes will have on their business."

(Source: Plasticnews China)