Russia's plastics industry growing across all segments

03-Oct-05

Russia's per capita consumption of plastics is 2.7 kg- a very low figure when compared to per capita consumption in the Western economies averaging 17-22 kg. Currently, the plastics industry is growing at a healthy pace and is expected to intensify in the coming years. This indicates that they is tremendous scope for growth for this industry in Russia. This has ushered into the country various global players. Solvay's joint venture with the Nikos Group for a PVC plant with an annual capacity of 200,000 mt is slated to commence operations in 2008. Polyethylene consumption in Russia in 2004 was nearly 980,000 mt. Demand is expected to rise by 2010 to around 1.5 million mt. Current demand for polypropylene at 600,000 mta, is forecast to double by 2010. PET continues to grow at about 8% annually. Existing domestic production capacities in this area have been undergoing gradual expansion, and competition would be expected to intensify in the coming years. Driven by demand from the construction industry, polyvinyl chloride demand is estimated to rise to 570,000 mt by 2007. Since some of the Russian petrochem producers have put new plants into operation and increased their capacities, high imports of 75,000-80,000 mt are expected to come to an end.