MOSCOW (MRC) -- Investments in polyethylene (PE) processing capacity decreased by 30% in 2015 and totalled USD184 million. Films and containers producers accounted for the greatest reduction in investments, according to the Annual Report "PE in Russia - 2016".
The year of 2013 accounted for the peak of investments in PE processing equipment over the last nine years, after which investments of Russian companies decreased. According to MRC's data, about 700 kits of equipment for PE processing for the total amount of USD184 million were shipped to Russia last year, whereas 900 production lines at the amount of USD264 million were imported in the previous year. Producers of films and containers by extrusion blow moulding (EBM) accounted for the main decrease in investments.
75 lines for the production of PE films for the total amount of USD22 million were shipped in 2015, whereas 196 kits for the total amount of USD56.5 million were imported a year earlier. Such a major fall in investment in the film products production was primarily caused by a significant growth of the equipment costs because of the rouble devaluation and rising credit costs. Some companies just temporarily froze their plans for capacity expansion.
The decline in procurement of equipment for the PE films production was also caused by the saturation of some segments, particularly, of the PE stretch films segment. Demand for this type of films developed very dynamically in the past seven years, but since last year, the market has entered into a stage of saturation.
It is worth mentioning the companies that delivered lines for the PE films production last year: Vicona-SP, Aleko-Polymers, Atlantis-Pak, Foliopak, Polymer (Desnogorsk), etc.
Last year's investment in equipment for the PE pipes production dropped to USD15 million, with 46 lines imported production lines. Around USD22,5 million were spent for purchasing of this type of equipment in 2014, and 53 lines were shipped. The following companies that continued to expand their PE pipes production capacities in 2015 should be noted: Polyplastic, Rosturplast, Water Supply and Sewerage Systems, Uponor Rus, Tekhstroy, etc.
41 lines for production of PE containers by EBM for the total amount of USD14 million were imported in 2015. A year earlier, this figure was 56 kits, totalling USD28 million. Lower investment in this PE processing segment was partially caused by the increased competition from PET containers (they actively displaced PE containers in the household and automotives chemicals, dairy segment, etc.). The following companies, which expanded their production capacities last year, should be mentioned: Serioplast, Delphine Distribyushen, Alpla, Stupino Chemical Plant, etc.
MRC