Opportunities for the Plastic Industry in Russia

Russia offers excellent opportunities for the Plastic Industry and considerable potential for growth. The areas where we see the greatest improvement for 2012 and best growth for the Plastic Industry is in the Packaging Industry and Medical Technology Industry; there are also big opportunities in the construction and infrastructure Industry for the Plastic’s Industry. There is a Hugh backlog of Projects in Russia and with Russia winning the World Cup in 2018 this is only adding to the amount of Construction and Infrastructure projects taking place within Russia. The Consumer Goods sector in Russia is also a big user of Plastics.

Traditionally the driving force in Russian Plastic demand has been the Food Industry followed by Packaging, Construction and Consumer Goods/Retail. Meets its local demands Russian companies and factories are rapidly increasing production capacities and are expanding and modernized their manufacturing processes across Russia to meet Russia’s needs. The expansion of the Auto industry in Russia and in particular the production of Cars will also greatly increase Russia’s opportunities for the World wide Plastic Industry. Even with the growth and potential in the Packaging Industry, Medical Technology Industry, construction and infrastructure Industry and the Consumer Goods sector its still in the Food Industry that will be the number one user of Plastics in Russia. The food industries biggest users of plastic’s are in Polymer Films, Bags and other Packaging, as Russia is quite under developed in its food retail and supermarket sector Russians still tend to buy from the markets and traditional corner shops  so therefore the Food package requirements have not changed much in the recent years. In the Construction Industry with the large funding from the Government as well as from private companies there is large demand for Plastic’s for the manufacture of Windows, Doors , Insulation , Tubes, Pipes sheets and so on.

BricPartner estimates that in Russia over 7 million Tonnes of Plastic will be consumed by the Plastic converting industry since 2012 which represents a growth of 12% from 2011 and represents 8% of the overall European primary plastics used. On average the per capita consumption of Plastic within Russia is about half of that used in Western Europe.

In the past a lot of Packaging in Russia has come from abroad but within investment a higher percentage of Packaging is produced locally now than imported, production in local sites has become more important. There has been a boom in the amount of International food manufacturers who now manufacturer Locally in Russia and they require modern packaging. There are about 2,400 Russian companies currently engaged in plastic processing and they are now rapidly modernizing their existing stock of Plastics Machinery which is often out of date. For example BricPartner estimates that over 50% of Injection molding machines in Russia will need replacing within the next 2 to 3 years. As Russian Companies lack the knowledge and know how to be able to manufacture modern Plastic machinery then it means that the majority of the technology will need to be imported so there are still huge opportunities for companies to fulfill this demand in Russia. It’s estimated that the value of exports of injection molding machines to Russia to have been 120.3 million Euro in 2011.

Dealing with any Bric market is never easy as each Bric countries bring its own set of challenges and none more so in Russia. It’s easy to see that the development of the Russian Plastic Industry will offer excellent rewards for years to come. Russia Consumption is still far below that of Western Europe but with this increasing it will only increase the demand for the Plastic’s industry across Russia. With new factories being built and planned and with increased state funding this will only increase the opportunities for Modern Plastic Machinery companies and plant engineering industries worldwide.
If you want to successful in Russia and the dynamic growth the Plastic Industry offers then a Local Partner presence is a must in Russia. You need people who know the market and the country well and have an influence on the Plastic Industry and generally across Russia. Finding the right Partners is the most important step in doing Business in Russia and with BricPartners 4 part Project then you have every chance of success in Russia and its other Bric Partner countries Brazil, India, China and South Africa.
  
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