Plastic Materials/Resins A Top Export Prospect for Mexico June 2012 Overview th Mexico ranks as the 12 largest plastics consumer in the world, which accounts for 5.3 percent of the manufacturing sector and one percent of Mexico’s GDP. According to the National Association of the Plastic Industry (ANIPAC), there are 4,102 plastic companies in Mexico. Out of that number, 60 percent are micro companies, 24 percent are small, 12 percent are medium-sized and four percent are large companies. ANIPAC also revealed that 42 percent of the companies are concentrated in the Metropolitan area (Estado de Mexico and Mexico City), 14 percent in Jalisco, 8.5 percent in Nuevo Leon and 3.4 percent in Baja California Norte. Mexico consumes around 5.3 million tons of plastic products each year and 4 million tons for raw materials. Direct plastic consumption per capita in Mexico is 48 kg a year. Over the last six years, markets became more focused and so did the competition. The Mexican plastics industry underwent a long process of consolidation. Smaller companies merged with larger ones seeking to gain more market share as Asian competition grew stronger. Productivity in Mexican plastics manufacturers has risen 56 percent over the last five years. The plastics industry has seen an average annual investment of more than $1 billion over the last 10 years, with $1.4 billion invested in 2011, a clear indication of the increased strength of this industry. While there is an excess domestic supply of PVC, PET, and polystyrene, the limited supply of polyethylene and polypropylene means that the Mexican plastics industry has to import raw material from the U.S. and Canada, as seen in the following chart for the U. S. trade activity with Mexico. U.S. Trade Statistics Imports from Mexico End-Use Code Value 2007 Value 2008 Value 2009 Value 2010 Value 2011 (12500) Plastic 977,682 981,789 739,525 918,028 1,190,388 Materials Top US pects st 2 Export Pros in Mexico 2012: Pla ic Materials/Resins Exports to Mexico End-Use Code Value 2007 Value 2008 Value 2009 Value 2010 Value 2011 (12500) Plastic 5,199677 5,737,704 4,836,492 6,023,066 6,898,685 Materials (12750) Industrial 782,663 668,182 548,960 689,285 746,912 rubber products Source: www.census.gov Best Products/Services The packaging segment remains the key growth driver. Amongst the individual plastic materials, the highest prospects can be found in Thermoplastics (PE, PP, PVC, PS, PET, ABS/SAN Nylon and Engineering Plastics); and Thermoset (PU, Epoxy, Melamine, Unsaturated PE, Phenolics and Poly Lactic Acid). Specialized and reliable mold making, repair and maintenance are in moderate demand. Machine retrofitting activity is becoming outdated and manufacturers think it is a good time to invest in modernization. Back to top Opportunities Despite the abundant crude oil reserve and a 20 million ton capacity for petrochemical product elaboration, Mexico continues importing millions of dollars in oil derivatives; this includes not only finished materials but also primary products that could be generated domestically. Mexico is exporting Ethylene and imports Polyethylene thus showing the need for polymerization technology. Resources • National Association of the Plastic Industry: http://www.anipac.com.mx • National Institute of Information and Statistics: http://www.inegi.org.mx • Scientific Electronic Library Online (UNAM): http://www.scielo.org.mx/scielo.php • The World Manufacturing Industry Today: http://www.usitoday.com/ Back to top Top US ects c 3 Export Prosp in Mexico 2012: Plasti Materials/Resins For More Information Please contact Senior Trade Specialist Mario Vidana at Mario.Vidana@trade.gov or (11-52-81) 8047-3118 or Commercial Assistant Monica Martinez at Monica.Martinez@trade.gov or (11-52-55) 5140-2628. You can also visit our website at http://www.export.gov/mexico. The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac. Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.