PARIS (Oct. 6)—The French rubber and polymer industry body Syndicat National du Caoutchouc et des Polymeres wants joint action by European rubber processors to counter the current pressure on margins. At a Sept. 15 meeting, SNCP decided to ask other European national industry associations to compile data about rising costs experienced by their member companies. This, it said, could strengthen the position of processors during negotiations with original equipment customers demanding price cuts. The plan is to be co-ordinated through Brussels-based BLIC, the liaison office for European rubber manufacturers. Prices for tires and rubber goods in France have fallen by 12 percent and 10 percent respectively over the past four years, according to Paris-based SNCP. The group is concerned that this trend, combined with rising raw material and energy costs, is undermining the profitability of many rubber processors.
French plan to counter industry profits squeeze
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