• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    High Performance and Special Effect Pigments Update

    Industrial Coatings Market Sees Strong Recovery

    Biocides Market Outlook - 2027

    Lab & Testing Equipment Directory

    Aerospace Coatings
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    H.M. Royal Becomes Exclusive OCSiAl Distributor

    American Colors to Expand Sandusky, Ohio Facility

    Vaughn O’Dea Named Director of Epoxytec

    Dr. Tammo Boinowitz to Join ALTANA's Management Board

    Hempel Launches New Fast-drying CUI Coating
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Hempel Launches New Fast-drying CUI Coating

    PPG’s New Paint for a New Start Initiative to Transform 25-plus Schools Worldwide

    AkzoNobel Adds New Capacity for Water-Based Texture Paints in China

    Sherwin-Williams to Acquire German Industrial Coatings Company, Gross & Perthun GmbH

    PPG Introduces PPG DIGIMATCH Camera and PPG VisualizID Software
    Additives
    Binders
    Pigments
    Solvents

    H.M. Royal Becomes Exclusive OCSiAl Distributor

    American Colors to Expand Sandusky, Ohio Facility

    IGM Receives Gold Medal from EcoVadis

    Orion Announces Price Increase, Reduced Payment Terms

    INEOS to Build Acetic Acid Plant and Associated Derivatives on US Gulf Coast
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    W. R. Grace & Co.

    Active Minerals

    Siltech Corporation

    Pilot Chemical Company

    Clariant Additives
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Latin American Coatings Show 2022

    Metropolitan New York Coatings Association (MNYCA) Annual Golf Outing

    Asia Pacific Coatings Show 2022

    2022 Pacific Coatings Show

    64th Polyurethanes Technical Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    W. R. Grace & Co.

    Active Minerals

    Siltech Corporation

    Pilot Chemical Company

    Clariant Additives
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • India/Asia Pacific Report
      • China Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Russian Report

    An Outward Glance

    A look at the present state of the Russian paint and coatings market, opportunities for export and the impact of sanctions.

    An Outward Glance
    Averyanov
    An Outward Glance
    Russian failed to establish export of coatings.
    An Outward Glance
    Russian achieved full import-substitution on decorative coatings.
    An Outward Glance
    The demand on the Russian market remains high.
    Related CONTENT
    • Chromaflo Technologies Names Tara Weinmann Territory Sales Manager
    • Allnex Launches ECOWISE CHOICE Product Portfolio for Building and Deco Applications
    • BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality
    • BASF's Coatings Division Employs Covestro's Ultra Line of Coating Hardeners
    • hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs
    Vladislav Vorotnikov, Russia Correspondent11.05.18
    Gennady Averyanov, director of the Russian Association of paints and varnishes manufacturers, commonly known as Centrlack, speaks about the present conditions of the Russian market, export opportunities and the impact of sanctions on the paint industry.

    Coatings World:  Where does the Russian paint and varnish market stand today?

    Averyanov: The market is quite sustainable. Decorative paints segment grew slightly, with CAGR between one and two percent. Industrial coatings segment shows good performance. Forecast for 2017/2018 is 10 to 15 percent growth. The demand of customers in the industrial segment of coatings hold steady for the materials that meet the requirements on coatings for painted products.

    Both one- and two- component materials, with organic or aqueous binders are applied. In the decorative sector, we note a slight increase in sales of materials in the economy segment, with stable sales in the premium segment, or high-quality materials. In the decorative segment, the leaders, as always, are paints and varnish based on water binders.

    CW: How would you describe the current situation in the industry?

    Averyanov: Production potential remains smooth. We forecast sales at the level between 1.2 and 1.3 million tons. Companies compete for the market, replacing each other in the hierarchy of sales, which evidences a good competitive ability of the manufacturers. There are no problems with the capacity utilization factor. In terms of the production potential, the companies have enough reserve capacity and so in peak seasonal months, there is no shortage of products at the consumer market.

    CW: Do you notice a progress in the import-substitution program? Are there any segments where the imports are still strong?

    Averyanov: The import substitution program has affected the business of domestic producers. There are more offers of high-tech coating systems for the industry now, which are not inferior in terms of quality, and in their technological characteristics are similar to the products of foreign manufacturers. Foreign companies that have launched their factories in Russia, provide customers with the coatings of the Russian-origin, manufactured in the Russian Federation. We evidence competition on price and competition on the ways of technological application of coatings in all market segments. However, in the finished vehicle industry, dominated primarily by the foreign OEMs, there is still a direct import of cataphoretic coatings. As for the decorative sector, we can safely say that import-substitution and localization of production of the entire range of paints and varnishes have been completed. Import accounts for 10 to 15 percent from the market volume, which is the originally targeted figure.

    CW: Does the Russian coatings industry increase export, as it was planned? What are your forecasts for overseas sales of the Russian materials?

    Averyanov: Unfortunately, we do not see strong growth in exports. Today the CAGR is ranging between three and five percent. Development of new markets is a complex and systemic task. In our opinion, it is impossible to simultaneously deal with import-substitution on the domestic market and with the development of new markets. We expect that in the near future, in three to five years, we will see more substantial growth in export volumes. This is what both producers and the authorities that provide constants support to exporters, are interested in. Almost all companies from the list of top ten Russian manufacturers  export their products and harbor plans to increase exports.

    We hope that those foreign companies that localized production in Russia will also increase exports of products manufactured at the Russian capacities.

    CW: What are your forecasts on the industry development for the coming years?

    Averyanov:  The forecasts are positive. The structure of production capacities in terms of producers, range and priority segments have already been created. The capacities established by Russian and foreign investors allowed to meet the demand on the domestic market, increase both production and exports. The companies are heavily investing in the development of new products, in improving the efficiency of production processes and creating competitive advantages. Russian manufacturers are a little concerned about the shortage of raw materials for the production of paints, for example, acrylic, epoxy resins, isocyanate hardeners. But there is an investment activity seen in this field and we hope that in future these issues will be resolved. Within the coming five to ten years, under favorable foreign economic conditions, which as we have seen depend on political relations, the paints and varnishes market in Russia will steadily grow with the CAGR three to five percent. The offer of industrial high-tech materials will expand. Competition in the industrial segment will grow, whilst imports of industrial paints and varnishes will decrease. In the decorative segment, the product range will depend on the customers’ needs. They will be able to choose products with different quality at affordable prices. The range of decorative paints and varnishes and a broad range will drive the competition among the domestic and foreign producers with the capacities localized in Russia.

    CW: Do you believe Russia can get rid of import-dependence on raw materials in the paint industry?

    Averyanov: Russia is no different from most countries in the world on this issue. In our market, there are both raw materials of our own production and imported raw materials. For example, the market is fully provided with domestic alkyd resins and their modifications. The production of polyester resins is developing quite intensively. Polymethylphenylsiloxane and organosilicon resins are produced in a wide range and of good quality and manufacturers of water dispersions can almost completely meet the needs of the market for dispersions of different quality and price. We observe the shortage of binders on epoxy and acrylic resins. Pigments for paints and varnishes are also manufactured by Russian companies, but not in the full range, just as in most other markets. The Russian petrochemical industry meets the needs of the market for paints and varnishes in solvents and thinners by about 70 percent, while the remaining 30 percent is imported. The missing range of raw materials with a certain chemical composition, quality and technological characteristics the companies purchase on direct contracts with their manufacturers either from abroad or on the Russian market, through a wide network of distributors.

    The development of raw materials production in Russia is a complex issue. The efficiency of investments, the size of the domestic market and export opportunities must be evaluated. As you know, no country in the world produces 100 percent of raw materials for all brands of coatings. Investors, both domestic and foreign ones, carefully assess the feasibility of production, looking for the most “valuable” segments and investing in the development of production. The Russian government also assists them in this process. Russia has adopted a handful of documents that promote the development of low-tonnage and medium tonnage chemistry, which, among other could be used in coatings production. Thus, neither the business community nor the government has set the goal to completely avoid importing raw materials.

    CW: Do you think there is a room for new players in the industry? Recently a Turkish company declared plans to build a new paint production plant in Crimea. Do you believe there will be more projects of that kind?

    Averyanov: Currently, the market structure is balanced on producers. There is an excess of production capacities and the companies are ready to quickly expand capacities if needed. As noted above, the range of paints and varnishes in Russia is consistent with global trends. The competition in the industrial segment shows that the quality of Russian coatings meets the needs of the manufacturers. In the decorative segment, the customers can purchase almost any product. The emerging of new manufacturers is still possible. Interests in our market are showing not only Turkish companies but also Korean and Chinese manufacturers. On the contrary, Western companies that have localized the production of coatings in Russia, according to our observations, put their development and further localization plans on halt. This is associated with the impact of sanctions, political issues and unpredictable decisions made by U.S. and EU governments. As for the Turkish companies, I can say that imports of materials from Turkey are quite sustainable and if Turkish companies open production in Russia, imports would decrease. This is a good trend.

    CW: Did the sanctions bring any other impact on the Russian paint industry?

    Averyanov: Sanctions have an indirect impact on the industry. I can not say definitely which of these factors more influences on the incomes of the population: sanctions or decisions of the Russian government. But if revenues fall, the sales in the decorative segment slumped. In the industrial segment, the actions of the government and top management of the companies allow sustainable production of coating on a competitive platform on price/quality/producer ratio. As an example of the impact of the sanctions, it can be noted that the business community and the government are concerned about the great pressure and unpredictability of the consequences of the decisions of the U.S. Presidential administration regarding the companies of Mr. Deripaska. However, the negative scenario in regard to the supply of coatings by U.S. companies, according to our assessment, could be compensated by the supply of coatings by the domestic manufacturers and the companies from Asia-Pacific. 
    Related Searches
    • coatings
    • paints
    • chemical
    • paint
    Suggested For You
    Chromaflo Technologies Names Tara Weinmann Territory Sales Manager Chromaflo Technologies Names Tara Weinmann Territory Sales Manager
    Allnex Launches ECOWISE CHOICE Product Portfolio for Building and Deco Applications Allnex Launches ECOWISE CHOICE Product Portfolio for Building and Deco Applications
    BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality
    BASF BASF's Coatings Division Employs Covestro's Ultra Line of Coating Hardeners
    hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs
    AGM Launches Range of Eco-Friendly Graphene Dispersions AGM Launches Range of Eco-Friendly Graphene Dispersions
    European Coatings Show Conference to be Held Remotely European Coatings Show Conference to be Held Remotely
    LANXESS Presents Two New Low Free Prepolymer Technologies LANXESS Presents Two New Low Free Prepolymer Technologies
    Arkema Releases Second-quarter 2021 Results  Arkema Releases Second-quarter 2021 Results
    AGM Launches Range of Eco-friendly Graphene Dispersions AGM Launches Range of Eco-friendly Graphene Dispersions
    Axalta Releases Second Quarter 2021 Results Axalta Releases Second Quarter 2021 Results
    RPM Reports Results for Fiscal 2021 Fourth Quarter, Full Year RPM Reports Results for Fiscal 2021 Fourth Quarter, Full Year
    WACKER Polymers to Raise Prices for Dispersions and Dispersible Powders in North America WACKER Polymers to Raise Prices for Dispersions and Dispersible Powders in North America
    Miller Paint Opens Two New Stores Miller Paint Opens Two New Stores
    Axalta Announces Global Price Increases Axalta Announces Global Price Increases

    Related Content

    • Additives | Breaking News | People in the News
      Chromaflo Technologies Names Tara Weinmann Territory Sales Manager

      Chromaflo Technologies Names Tara Weinmann Territory Sales Manager

      Weinmann is responsible for managing Chromaflo Thermoset and Coatings products sold in her assigned region.
      09.20.21

    • Additives | Architectural Coatings | Construction Chemicals
      Allnex Launches ECOWISE CHOICE Product Portfolio for Building and Deco Applications

      Allnex Launches ECOWISE CHOICE Product Portfolio for Building and Deco Applications

      Allnex has launched the latest ECOWISE CHOICE portfolio of environmentally friendly products for building and decorative applications.
      09.17.21

    • Breaking News | Industry News
      BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality

      BASF and CATL Sign Agreement to Accelerate the Achievement of Global Carbon Neutrality

      The partnership supports both companies’ commitment to global carbon neutrality and CATL’s localization strategy in Europe.
      09.17.21


    • Additives | Automotive Refinish | Breaking News | Paint & Coatings Manufacturer News
      BASF

      BASF's Coatings Division Employs Covestro's Ultra Line of Coating Hardeners

      BASF Coatings and collision centers benefit from simple 1:1 replacement.
      09.15.21

    • Breaking News | Price Increases
      hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs

      hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs

      Transport costs, costs of pigments including titanium dioxide and petrochemical raw materials have continued to rise massively over the course of the year.
      09.02.21

      Loading, Please Wait..
      Trending
      • PPG To Showcase Specialty Automotive, Aerospace Adhesives, Sealants At Adhesives & Bonding Expo
      • Sherwin-Williams To Acquire German Industrial Coatings Company, Gross & Perthun GmbH
      • Hempel Launches New Fast-drying CUI Coating
      • PPG Introduces PPG DIGIMATCH Camera And PPG VisualizID Software
      • PPG SIGMAGLIDE 1290 Helps EST Achieve Carbon Reduction Goals
      Breaking News
      • H.M. Royal Becomes Exclusive OCSiAl Distributor
      • American Colors to Expand Sandusky, Ohio Facility
      • Vaughn O’Dea Named Director of Epoxytec
      • Dr. Tammo Boinowitz to Join ALTANA's Management Board
      • Hempel Launches New Fast-drying CUI Coating
      View Breaking News >
      CURRENT ISSUE

      June 2022

      • High Performance and Special Effect Pigments Update
      • Industrial Coatings Market Sees Strong Recovery

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      CoQ10 and Royal Jelly Supplementation May Improve High Intensity Exercise
      Shiitake Mushroom Extract Appears Helpful in HPV Infections
      Fi & Hi Europe Returns with Over 20,000 Global Attendees Expected
      Coatings World

      Latest Breaking News From Coatings World

      H.M. Royal Becomes Exclusive OCSiAl Distributor
      American Colors to Expand Sandusky, Ohio Facility
      Vaughn O’Dea Named Director of Epoxytec
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      Cepheid, BioGX Partner to Create GeneXpert Monkeypox Test
      Siemens' Varian Gains FDA IDE Nod for FAST-02 Trial
      Acutus Medical Launches AcQCross Line Extension
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Ixaka & Minaris Sign Tech Transfer & GMP Manufacturing Agreement for Cell Therapy Candidate
      Pfizer, BioNTech Adapt COVID Vax Against Omicron
      CoreRx Expands Capabilities
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      Top 5 Beauty Tech Trends at Perfect Corp.'s Global Forum
      John Frieda Supports the LGBTQIA+ Community
      Athena Club Launches in Canada
      Happi

      Latest Breaking News From Happi

      Fencing Champion Bebe Vio Grandis Named Spokeswoman of L’Oréal Paris
      Past Henkel Exec Christian Chopra Named President of Scotch Porter
      Color Street Celebrates Foster, Adoption Awareness with Limited-Edition Print
      Ink World

      Latest Breaking News From Ink World

      Dr. Tammo Boinowitz to Join Management Board of ALTANA AG
      Flint Offset Packaging Solutions Announces Price Increases for Sheetfed Inks
      Weekly Recap: INX’s VC Fund, Screen Industry and Ball Top This Week’s News
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      Harveer Sahni recognized with Global Achievement Award
      Color-Logic partners with Taktiful 
      ALTANA announces Management Board change
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Fibertex Personal Care Awarded EcoVadis Awards for Sustainability
      Yanpai Orders Batt Forming Equipment for Needlepunch Line
      Weekly Recap: SWM and Neenah Introduce Mativ Inc., Avgol honored for Biotransformation Technology & More
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      Researchers Discover Novel Patching Material for Bone Defects
      Boston Centerless Opens Second Manufacturing Plant in Indiana
      Researchers Develop Patient-Specific 3D-Printed Smart Metamaterial Implants
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Identiv-Powered CVS Spoken Rx Wins NFC Forum 2022 Innovation Award
      LG Display Announces Winners of This Year’s OLEDs GO! Competition
      Weekly Recap: eMagin, Applied Materials, and Schott Top This Week’s Stories

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login