Russia investments in 2015 PVC processing falls 50% year on year

MOSCOW (MRC)–Russia’s investments in processing capacity of polyvinyl chloride (PVC) reduced to $40m in 2015, down 50% year on year, MRC’s annual report “PVC in Russia – 2016”, showed on Tuesday.

The peak of investment in equipment for PVC processing occurred for 2008, after which Russian companies’ investments significantly reduced.

According to the MRC, Russian companies in 2015 bought 142 lines of equipment for PVC processing worth of $40m, while a year earlier it was 232 production lines at a cost of $79.5m.

The main decrease in investments occurred for producers of profiles – the largest segment of PVC recycling. In 2015 profiles producers imported 29 lines for the value of $15m, while a year earlier it was imported 105 lines.

The current capacities of PVC processing into profiles are excessive in Russia, while the demand for these products has been weakening. In most cases, current investments are intended for the replacement of obsolete equipment, while the launch of new lines is rare.

Among the companies that imported lines for profiles production last year were producers of window profiles: Veka Rus, Profine, Proplex and companies that produce various types of panels: Remstroyplast, PKF Gunay, Vellplast etc.

Second in terms of investment in PVC processing is cable extrusion sector. Russian companies from this sector imported 31 lines worth of about $8m, while a year earlier it was imported 32 lines. Among the companies that imported the equipment, should be mentioned Energokabel Plant, Cable Factory Kabeks, Cable Factory Alyur, KZ Expert-Cable, etc.

The total volume of investment in other processing sector (pipe extrusion, injection moulding, sheet extrusion, etc.) in 2015 has exceeded $17m.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan