Interview with GKV CEO Dr. Oliver Möllenstädt

Dr. Oliver Möllenstädt (47), who holds a doctorate in industrial engineering, is CEO of GKV Gesamtverband Kunststoffverarbeitende Industrie e.V., the umbrella organization for plastics processing associations in Germany. As an umbrella organization, the GKV brings together the common interests of its member associations AVK Industrievereinigung Verstärkte Kunststoffe (Industrial Association for Reinforced Plastics), FSK Fachverband Schaumkunststoffe und Polyurethane (Professional Association for Foam Plastics and Polyurethanes), IK Industrievereinigung Kunststoffverpackungen (Industrial Association for Plastic Packaging) and pro-K Industrieverband langlebige Kunststoffprodukte und Mehrwegsysteme (Industrial Association for Durable Plastic Products and Reusable Systems). With an annual turnover of around €69.4 billion and almost 313,000 employees in over 2,985 companies, the industry is one of the most important economic sectors in Germany.
 

Dr. Möllenstädt, the GKV recently took stock at its annual economic press conference. How was the past year, and how are companies in the plastics processing industry doing?

 

As in 2023, the plastics processing industry recorded declining sales. Sales in the industry fell by approximately four percent in 2024. Sales declined particularly sharply in the construction and automotive sectors. Many companies were forced to cut jobs. Energy-intensive industries in Germany are currently not competitive on the international market due to factors such as high energy costs, high wages and non-wage labor costs, and high taxes. In addition, bureaucracy and reporting requirements are crippling many companies in our SME-dominated industry. A turnaround will only be possible if politicians create better conditions for growth and investment. This means, first and foremost, lower energy costs and systematic reduction of bureaucracy.

 

Industry is clearly committed to the principle of product responsibility and sees the closing of material cycles as a key factor in sustainable management and thus also in achieving climate targets. Without recyclates in sufficient quantity and quality, a circular economy cannot be implemented. However, the latest BKV study on the use and availability of recycled materials shows that, assuming an increase in recycled content quotas in legal regulations such as the EU Packaging Waste Directive (PPWR) or the planned End-of-Life Vehicles Directive (ELVR), the available quantities will not be sufficient. What does this mean for the plastics industry and what needs to be done?
 
The results of the BKV study on the availability of recycled materials are alarming. If we do not double the rate at which we expand the supply of recycled materials in Germany by 2030, we are heading for a recycled material gap of almost one million tons. Across the EU, the gap amounts to 3.5 million tons. That is why several levers must be set in motion now: We need more capacity in both mechanical and chemical recycling. We must tap into additional input streams for plastics recycling: Around one million tons of plastics are found in household waste and commercial waste each year, of which only a very small proportion is recycled. This has to change. In addition, manufacturers of contact-sensitive plastic packaging in particular need the option of proving that they have met the legal quotas by means of certificates if necessary. The certificates would be issued for the use of recycled materials in other plastic packaging that exceeds its legal quota.
 

What expectations do plastics processors have of the new federal government and its initiatives for a functioning circular economy for plastics in Germany? The National Circular Economy Strategy (NKWS), which was published in December 2024, is set to become a milestone for the circular economy. In Germany, revisions to legal regulations such as the Packaging Act and the Commercial Waste Ordinance are also pending, EU regulations such as the PPWR must be implemented, others will follow, and the Clean Green Industrial Deal sets a new framework. What impetus does the industry believe is needed to encourage companies to invest in a competitive circular economy?

 
The National Circular Economy Strategy (NKWS) was developed by the Federal Ministry for the Environment in collaboration with industry, science, and NGOs. The new federal government should swiftly implement the measures outlined in the NKWS. In particular, the aforementioned system for certificates for recycled materials and plastic-specific substitution quotas at the EU level should be examined and, ideally, implemented as soon as possible. Furthermore, the federal government must finally reform Section 21 of the Packaging Act to promote recyclability and the use of recycled materials. In our view, the federal government should push for a solution that is low on bureaucracy and promotes the private sector. A proposal for revising Section 21 of the Packaging Act has been put forward. The draft for a (small) novel to the Commercial Waste Ordinance presented in the last legislative period of the German Bundestag is, in our view, insufficient to contribute to significantly better sorting of commercial waste and more recycling of plastics. Greater ambition would be desirable here. The European Union is currently working on concrete legislative acts based on the PPWR. This is important in order to provide legal certainty for companies. The European Commission's Clean Industrial Deal is intended to complement the Green Deal in order to restore the international competitiveness of key industries in Europe. The latter is essential to maintain social acceptance of sustainability and climate protection and to enable industry in Europe to grow again. After all, investment in the circular economy requires industrial growth, low energy costs, and less bureaucracy. I very much welcome the fact that the European Commission has made initial proposals in this regard, which will of course need to be expanded significantly. Not all legal acts from the Green Deal will be able to remain unchanged.

 

What are the industry's expectations for an economic recovery in Germany? How do companies in the plastics processing sector assess the outlook for 2025?

 

The chance of an end to the recession and new growth requires decisive structural reforms in Germany. The future federal government must initiate these reforms as quickly as possible. The economy will only pick up again if the framework conditions for companies improve significantly and planning security is created. The industry should be permanently relieved of high electricity taxes and grid fees, unnecessary reporting requirements must be eliminated, non-wage labor costs must be reduced and permanently capped again, and we need a long-overdue corporate tax reform. To put it bluntly: we really need a major breakthrough now. The K trade fair in Düsseldorf in October 2025 could provide an additional positive boost for the plastics industry.
 

Dr. Möllenstädt, thank you very much for the interview!
 

(April 2025, Photo: © GKV)