Maya Ellison
Plastic is one of the world's most important commodities, with a global market value of $593 billion in 2021. The plastic industry is growing, with a projected increase of 3.7% between 2022 and 2030. This growth is driven by the increased use of plastics in construction, packaging, electrical and electronics, and automotive industries. Asia is the largest producer of plastics, with China alone accounting for 32%-33% of global production in 2022-2023. North America is the second-largest producer, with the USA being the third-largest manufacturing industry for plastics in the world. Other notable plastic-producing countries include Mexico, Brazil, South Korea, Germany, Italy, and Vietnam.
| Characteristics | Values |
|---|---|
| Location of pre-production microplastic facilities | 33 US states and within 13 of the 18 water basins in the continental US |
| Global plastic production in 2023 | 413 million metric tons |
| China's share of global plastic production in 2023 | 33% |
| North America's share of global plastic production in 2023 | 17% |
| Asia's share of global plastic production in 2023 | 19% |
| Plastic production in Vietnam in 2019 | 8.89 million tons |
| Plastic production in Brazil in 2020 | 7.3 million metric tons |
| Plastic production in South Korea in 2017 | 1.70 million metric tons |
| Plastic production in South Korea in 2018 | 1.77 million metric tons |
| Number of plastic refineries, plants, and chemical facilities in Louisiana, US | Nearly 150 |
| Top plastic-producing companies | ExxonMobil, Dow Chemical, BASF, SER Rezistans, Acros Pvt. Ltd |
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What You'll Learn
Plastic production facilities in the US
The US plastics industry is the third-largest manufacturing industry in the country, employing nearly one million people in the manufacturing sector and 1.4 million people when suppliers are included. In 2023, North America accounted for 17% of global plastic materials production, with US plastic production totalling 130 billion pounds.
An interactive map based on US Environmental Protection Agency data shows the locations of plastic production facilities in the US. The map reveals that plastic production facilities are located in 33 states and within 72% of the water basins in the continental US.
The Chemical Coast, along the Gulf Coast of Texas and Louisiana, is where 84% of US plastics production across the sector's supply chain is located. In 2019, the largest plastics producers in this area included ExxonMobil, Dow, LyondellBasell, Westlake Chemical, and Formosa Plastics. Cancer Alley, along the lower Mississippi River between Baton Rouge and New Orleans, Louisiana, has nearly 150 oil refineries, plastics plants, and chemical facilities.
There are plans to increase plastic production by 40% over the next decade, with new plastic plants in the pipeline from the Ohio River Valley to the Gulf Coast. However, there are significant environmental and health concerns associated with plastic production, including toxic chemical pollution and the risk of plastic pellets entering waterways.
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China's plastic production
China is the world's largest producer of plastic by far, accounting for about a third of global plastic production. In 2023, China's share of global plastic production was 33%, with the total worldwide production of plastics surpassing 413 million metric tons. China's monthly production of plastics ranges between six and 12 million metric tons. In 2021, China produced 80.1 million tons of plastic, and in 2020, the country produced about 60 million tons of plastic waste, of which only 16 million tons were recycled. China's plastic export volume has been continuously growing over the past few decades, and the industry has undergone a transition from quantity to quality, with a future development focus on technological innovation and eco-friendly concepts.
China's large-scale plastic production and consumption contribute to its significant environmental impact, particularly in plastic pollution and greenhouse gas emissions. China is the largest source of mismanaged plastic waste and the biggest offender of ocean plastic pollution, with microplastics found in fish species from Chinese waters, ultimately ending up in human diets as fish is a staple food for many in the country. China's focus on the circular economy, regulatory measures, and fiscal investments in solid waste management indicate a growing awareness of the plastic pollution challenge.
As the leading manufacturing economy and exporter of goods worldwide, China's prominent position in plastic production and consumption has significant implications for the global plastic industry and environmental sustainability. The country's efforts to address plastic pollution, transition towards quality and eco-friendly practices, and manage waste more effectively will play a crucial role in mitigating the environmental impact of plastic production and consumption, both locally and globally.
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Plastic manufacturing in Mexico
Mexico is a significant player in the global plastic manufacturing industry, with over 4,100 companies involved in the sector. The country's plastic industry was valued at USD 52 billion in 2022, and it is the 11th largest manufacturer of plastic products in the world. Mexico's plastic manufacturing sector has a strong foothold in the country's industrial landscape, with an annual production value of more than USD $20 billion.
The industry is diverse, with sub-sectors including capital equipment, plastic resins, plastic materials and parts, and plastic recycling. Many companies in this sector supply the food and beverage, pharmaceutical, automotive, and medical device manufacturing industries. The use of plastic pipe and films in agriculture has also grown, alongside the proliferation of small local manufacturers. These producers often use recycled plastics as feedstock, which they collect and process themselves.
Mexico's strengths in automotive, aerospace, and other leading industries create opportunities for plastic manufacturers to supply these sectors. Additionally, the construction industry in Mexico has been increasingly integrating plastics in water and gas piping, windows, doors, roofing tiles, and coverings.
The country's proximity to the United States makes it an attractive location for plastic manufacturing. Companies such as The Plastek Group have established facilities in Mexico to expand their reach and serve the Latin American and Western American markets. Plastek's facility in Querétaro, Mexico, offers services such as package making and plastic injection molding.
Mexico is also recognised as a leader in Latin America in Polyethylene terephthalate (PET) recycling, recovering 59% of PET bottles intended for recycling. The country's plastic manufacturers are looking for extruders, blenders, mixers, and automation solutions for primary and secondary plastics processing.
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Top plastic-producing companies
China is the world's largest producer of plastic, accounting for 33% of global plastic materials production in 2023. The rest of Asia (excluding China and Japan) also contributes significantly to plastic production, with an additional 19% share. North America, including the United States and Canada, holds a 17% share of global plastic production.
Within these regions, several companies stand out as top plastic-producing entities:
LyondellBasell Industries N.V. is a chemical company based in Houston, Texas, with a global presence, including operations in Germany, Mexico, Italy, Poland, France, Japan, China, and the Netherlands. They are one of the world's largest chemicals, plastics, and refining companies, offering products such as plastics, chemicals, petrochemical products, diesel, and gasoline. LyondellBasell is also the world's largest licensor of polyolefin and polypropylene technologies, providing materials that improve food safety and enhance automotive safety and efficiency.
INEOS Group Limited is another global leader in the plastic manufacturing industry, with a presence in over 25 countries. They produce and sell a wide range of plastic products, including polyethylene, polypropylene, polystyrene, and PVC, used in packaging, construction, automotive, and consumer goods.
Hanwool Corporation is a top-ten global plastic producer established in 1990 as Fine Fine Machinery Ind. Co. Ltd (FMICL). They are a popular company in the plastic and rubber industry, utilizing high-quality materials to produce superior products. Hanwool Corporation is a subsidiary of FMICL and provides professional engineering services in the plastics and rubber industries.
ExxonMobil is the largest publicly traded international oil and gas company and a significant player in the plastic production industry. They are renowned as a global producer of polyolefins and related polymers and resins, leveraging technology and innovation to meet energy needs.
Matsui Technologies India Ltd. (Matsui) is among the top ten largest plastic-producing companies, providing auxiliary equipment for the plastic processing industry. Their product range includes mold temperature controllers, dehumidifying dryers, low-speed granulators, hot air dryers, and blenders.
BASF is another top-ten plastic-producing company established in 1985. They are known for being one of the largest plastic and resin suppliers, with a broad portfolio that includes chemicals, plastics, performance products, and crop protection products, catering to various industries.
In addition to these global leaders, several companies are making significant contributions to plastic manufacturing in specific countries:
- Continental Structural Plastics, Inc. is one of the leading plastics manufacturers in the United States, with rapid growth across multiple plants in Ohio and Indiana. They specialize in manufacturing lightweight fiberglass components for the automotive and transport industries, adhering to stringent quality standards.
- Nifco America Corp. is a general plastics manufacturer with a global reach, specializing in plastic fasteners for commercial and residential uses.
- Sixarp LLC - Praxis Packaging Solutions is a rapidly expanding subsidiary of Praxis Packaging, offering a wide range of plastic packaging solutions.
- All Service Plastic Molding, Inc.
- Amcor Flexibles, LLC
- Centro, Inc.
- Ply Gem Windows
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Environmental impact of plastic production
Plastic is ubiquitous in our lives, from food packaging to healthcare, construction materials, furniture, and textiles. However, its prevalence comes at a cost to the environment. The environmental impact of plastic production is significant and far-reaching.
Firstly, plastic production contributes to climate change. The annual emissions related to plastic production in the EU, for example, amount to around 13.4 million tonnes of CO2, or about 20% of the chemicals industry's emissions. Plastic is derived from fossil fuels, and the process of converting these fuels into plastic releases greenhouse gases, contributing to global warming. The planned increase in plastic production by the oil industry of 40% over the next decade will only exacerbate this issue.
Secondly, plastic pollution is a significant concern. Microplastics, the tiny particles that make up all plastics, are released into the environment during production and end up in our oceans, rivers, and soil. These microplastics are ingested by marine life, birds, and other wildlife, causing harm and even death. They also contaminate ecosystems and the food chain, eventually making their way into humans, with unknown health effects. It is estimated that 85% of marine litter from land-based sources is plastic, and evidence suggests that plastic ingestion is widespread in European seas, with 93% of fulmar birds in the North-East Atlantic Ocean having ingested plastic.
Thirdly, the toxic chemicals used in plastic production contribute to air and water pollution. Petrochemical plants emit over 100 concerning chemicals into the air, including carcinogens such as benzene, toluene, ethylbenzene, and xylene. These pollutants have been linked to health problems in neighboring communities, including asthma, lung cancer, brain and organ damage, vomiting, diarrhea, and cardiovascular diseases. Additionally, wastewater discharge from plastic plants contains pollutants that can contaminate waterways and harm marine life.
Lastly, the durability of plastics means that discarded items remain in the environment for generations. Only about 9% of plastics ever produced have been recycled, and 12% have been incinerated. The remainder is either still in use or has been disposed of in landfills or released into the environment. This waste plastic can persist for hundreds of years, continuing to break down into microplastics and impacting wildlife and ecosystems.
To mitigate these environmental impacts, efforts are being made to reduce plastic use, improve recycling rates, and advocate for stricter regulations on plastic plants. Individuals can play a role by reducing their single-use plastic waste, supporting legislation that targets plastic reduction, and participating in cleanup efforts.
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Frequently asked questions
China is the world's largest producer of plastic, accounting for 32%-33% of global plastic production in 2022 and 2023. The country produces between six and 12 million metric tons of plastic products each month. The rest of Asia (excluding China and Japan) accounts for 19% of global plastic production. North America, including the United States, holds another 17% share of global plastic production.
Other countries with notable plastic production include Mexico, Brazil, South Korea, Germany, Vietnam, Taiwan, India, and Italy. Mexico has over 4,100 plastic companies and is the 11th largest manufacturer of plastic products globally. Brazil produced 7.3 million metric tons of plastic in 2020, and South Korea produced 1.77 million tons in 2018. Germany is the second-largest plastic manufacturing country after China. Vietnam's plastic industry produced 8.89 million tons of products in 2019, while Italy accounts for almost 4% of the world's plastic exports.
Pre-production microplastic facilities are where fossil fuels, typically gas or oil, are converted into plastic pellets, powders, or granules. These pre-production microplastics are then sent to another manufacturing facility to be melted and molded into various plastic products. Pre-production microplastic facilities have been mapped across the United States using data from the Environmental Protection Agency's Toxic Release Inventory Database.
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