The plastics company Proplast in Præstø, which in recent years has experienced significant growth and expanded production, is now feeling the consequences of the unrest in the Middle East.
Rising oil prices are directly impacting the business, where both raw materials, packaging, and transport have become more expensive.
- Price increases are pouring in, says managing director Peter Rosenkrands.
Proplast manufactures plastic solutions for a range of industries and is affected by changes in the price of crude oil.
- Oil is used to produce plastic, so that increase hits us. But it also affects other areas, such as packaging and transport, he says.
Uncertain customers
The company, which employs around 75 people, is thus experiencing pressure in several areas at once.
At the same time, customers are reacting to the global uncertainty and seeking greater clarity about deliveries.
- Customers want to be sure that we can deliver, and therefore they contact us to hear about our contingency plans, so they can get a better overview of their risk, says Peter Rosenkrands.
However, he emphasises that the situation can be managed through dialogue.
- Everyone is aware of what happens when it's a global crisis, so it's not difficult to explain the situation, he says.
Pressure and opportunities
At the same time, the same unrest that pressures costs can also create increased activity in parts of the market.
Proplast supplies offshore activities in the oil industry in, among other places, Canada, South America, and Africa, but not the Middle East. When uncertainty rises in the Middle East, it can prompt energy companies to increase activities elsewhere in the world.
- When there is unrest, it can shift focus and investments, and it can lead to more activity for some of our customers, says the director.
Thus, Proplast is in a situation where global tensions both pressure costs and at the same time can help increase demand in the part of the oil industry the company supplies to.
