BRUSSELS, Belgium—Belgium's plastics and rubber industry output fell nearly 3 percent last year, according to Federplast, the country's plastic and rubber manufacturers' association.

Federplast said processors saw a 2.6 percent decrease in output, after a 3.7 percent increase in 2011, while the employment in the sector fell 2.4 percent in 2012.

While prospects for the industry are mixed, the overall view was downbeat, said the association.

Stephane Dalimier, chairman of Federplast, said 41 percent of company chief executives expected more decline in employment, while 65 percent relied on some growth in new markets, and 70 percent expect no growth in existing markets.

"These figures demonstrate the importance for the sector of innovation with new products and in new applications," Dalimier said.