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Russian polymers processing pulling through without investments

July 27/2009
MOSCOW (MRC) -- The Russian polymers market may easily survive the crisis owing to equipment already installed, MRC’s analysts state.

The current output capacity of the installed equipment exceeds the level of polymers processing 1.4 times. In some sectors that ratio moves at 2.5 times.
Converters are better to forget about new products and new projects for, at least, two years. The current task is to revamp the existing business. Before the crisis, investments into processing had been increasing 28% annually. The year of 2008 turned out to be the all-time record in the history of the Russian polymers business: investments into equipment exceeded USD 1 billion.

For example, producers of cable goods carried out a tremendous renewal of the equipment fleet. They imported 40 complete lines to process polymers. They were mainly focusing on equipment to produce power cables with insulation made of cross-linked PE (Maillefer and Rosendahl Maschinen). Overall output capacity of the equipment mounted to 77.7 kt converting into  PE .

Detailed analytics can be found in Annual Reports.

Source: MRC

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