Packaging applications to drive PE film demand growth in Russia

04-May-09

Packaging applications are expected to drive growth in demand for polyethylene film in Russia, as per a report by AMI. According to AMI, there have been many recent investments in Russian PE film production. It expects film production capacity to grow significantly, even taking the current economic downturn into account, as Russia offers a massive potential for development, particularly in the packaging sector. More sophisticated plastics packaging will feature in this growth, led by the increasing presence of multinational food processing groups and supermarket companies which will compete strongly with local Russian brands. There has been particularly spectacular growth in PE stretch film and multilayer film production." The press release did not provide any current or forecast PE film production and demand figures. Recent investments in PE stretch film and multilayer film indicate a shifting trend in the structure of Russian polymer film production. In the Soviet era LDPE was the main feedstock, reflecting local availability and lack of multilayer equipment to process linear types. LDPE is still the main material used in film production but linear resins are continually increasing their market share. Some volumes of polyethylene film inRussia are used for agricultural and building applications, but nearly all the major end use markets are in some form of packaging, principally for food products.