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Investment activity in Russia in 2010 grew slightly

March 29/2011
MOSCOW (MRC) -- In 2010 capacities of PVC conversion in Russia grew by 283 KTa which was 3% more than capacities growth in 2009 and by 2.5 less than record parameters in 2008, according to MRC Annual Report PVC in Russia 2011.


Investments made in 2010 reflect perspective directions of conversion. The sector of profiles production showed the biggest gain in capacities: 162 KTa in 2010 that is comparable to gain in capacities in 2005.

The gain in PVC granulation capacities was by third less compared to 2008(27 KTa). The gain in pipe production made about 12 KTa, cable extrusion 10 KTa, films and sheets about 20 KTa.


Among the companies that made the biggest investments in 2010 the following should be mentioned: Narodniy Plastik, Plafen, Veka Rus, Docke Extrusion, Polymerplast, Uralchemplast.


As we forecasted, there wasnt a quick recovery of investment activity concerning PVC conversion as well as other volume polymers. The reason for that was a stock of installed capacities in 2007-2008 when total gain in capacities of PVC conversion made 1 325 KTa whose potential remained unlocked in 2009. Taking into account that each second investment in equipment of PVC conversion was made at that period at the expense of borrowed funds (with average payback time for equipment equal to 4 years), we are forecasting mobilization of investment activity by 2012.


Detailed analysis of PVC market as well as short-term and long-term forecasts of its development are available in MRC Annual report PVC in Russia 2011.


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