MOSCOW (
MRC) - In 2012, the investments in processing of PVC made USD74.3 mln, down 21% from 2011, when investments rose sharply after two-years fall in investments, as per MRC
Annual Report on the Russian PVC market.
Investments in PVC processing in 2008 was 2.5 times higher than in 2012. In 2012 there were installed 436 production lines with total capacity of PVC processing about 450,000 tonnes/year, down almost 21% from 2011.
The investments in the largest sector of PVC processing - extrusion profile-moulding products (PMP), which in 2004-2012 made more than 50% of the total investment in the processing of PVC, gradually slow down compared to to the pre-crisis period with average annual growth of investments about 30%, is now being close to saturation.
The capacities of PMP production in 2012 amounted to 147,000 tonnes, down 19% compared to 2011, while in 2008 this figure was 435,000 tonnes.
Total investments in equipment for the production of PMP made USD36 mln, down 19% from 2011 and more than two times less than in the record 2008.
The largest share of investments in the sector PMP (more than USD20 mln) was provided by the sector of window profiles.
At the same time, growth in PVC processing by cable extrusion almost doubled - to 41,000 tonnes (74 production lines), which is more than twice less than the capacities of imported lines in 2008.
In 2012 such converters of PVC expanded their capacities:
Tarkett (production of linoleum), Narodnuy Plastic , Rehau, Terna Polymer, SP Vitrazh, they are all -PMP producers.
Converters spent about USD2 million on equipment for the production of soft PVC compounds with total capacity of 25,000 tonne/year (primarily Bashplast, Uralkhimplast Smolensk Korund).
The growth rate of PMP market is not expected to exceed 4-5% in the nearest years.
Therefore, investments in PVC processing are most likely to slowdown, although in some sectors the investments can grow faster - cable extrusion, coating, extrusion (seals).
MRC