Mikhail Katsevman, R&P POLYPLASTIC: There will be no explosive growth of the plastic procession industry; however, annual 3-5% increase is possible

Head of Research and Development of R&P POLYPLASTIC, Chairman of the Russian Association of Plastics Processors, Mikhail Katsevman made a report on the Situation in the plastics procession industry at the plenary meeting of IX International Polymer Technology Forum in Saint Petersburg. The audience met this sensitive issue with great interest. Following the report industry, Plastics and Polymeric materials magazines are preparing review papers.

Within his report, Mikhail Katsevman told about production and consumption of plastic products in Russia noting that national market of large capacity plastics last year reached the volume of 7 mln. tons while overall production grew by 3.2%. The speaker paid special attention to structure of the industry and its prospectives.  

Special emphasis was made on problems disrupting successful development of the industry. Among others Mikhail Katsevman mentioned weak legislative and regulatory framework, high dependence on imported goods, principles of price formulation for raw materials and their poor availability for national manufacturers as well as lack of competence of top-managers and specialists.

“Today, import ratio of plastic products to Russia amounts to 20 %. Despite growing manufacturing capacities of national plastic processors and producers of compounds total dependence of the industry on imports is over 80%. It is quite hard for Russian manufacturers to fill in the corresponding niche on the market. Of course, there are some exceptions, for example, R&P POLYPLASTIC. Due to professional management, this company feels confident not only on the local market but constantly increases its export potential. However, in practice this remains an exception rather than the rule. For this example to become standard practice government support and applicable legislation to limit “polymer discrimination” is required,” noted Mikhail Katsevman.

There is a number of action-oriented proposals to improve the situation: improvement of technical regulation and standardization; government support of polymer producers in the form of tax exemptions; exchange trading of base polymer raw materials – sale of 10 – 20% of the total amount of production through raw exchange markets. Mikhail Katsevman is confident: every effort should be made to avoid surplus in production of raw materials to become deficit of supplies on the Russian market, which leads to unintentional growth of prices for polymers.

“Overall production and procession levels of polymer materials in Russia have large potential capacity and an increasing trend. Despite problems caused by the coronavirus pandemic, force-majeures of base raw materials producers and the container crises, level of output is growing. Of course, there will be no explosive growth of the plastic procession industry; however, annual 3-5% increase is possible,” said Mikhail Katsevman.