• 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
    Coatings World Company Profile: Siltech Corp.

    Coatings World Interviews Axalta CEO Robert Bryant

    Resins Update

    Building a Sustainable Future

    Paint for Commercial Vehicles Goes Greener
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Axalta Schedules 1Q 2021 Earnings Conference Call

    SONGWON, Chemo International Inc. Announce Distribution Partnership

    ChemQuest Group Hires Director

    PPG Directors Announce Quarterly Dividend of 54 Cents Per Share

    PPG Highlights 2020 Performance at Annual Shareholders Meeting
    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

    HMG Paints Reports Positive Feedback on Contract Matt Emulsion

    Hempel Protects O2 Tidal Energy Turbine

    PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System

    HGTV Home by Sherwin-Williams Launches Ovation Plus

    Nippon Paint Marine’s New Self-polishing Antifouling Paint Applied to 5 Bulk Carriers
    Additives
    Binders
    Pigments
    Solvents

    SONGWON, Chemo International Inc. Announce Distribution Partnership

    Evonik Joins MIT-IBM Watson AI Lab

    Stahl Outlines Sustainable Development Ambitions in 2020 ESG Report

    VideoBite: Engineered Polymer Solutions

    Shepherd Color Unveils Bismuth Vanadate Yellow Pigment
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Siltech Corporation

    Shepherd Color Company, The

    Pilot Chemical Company

    Active Minerals

    Clariant Additives
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    11th Asia Pacific Floor Fair and Guangzhou Paint & Coatings Fair

    Coatings for Africa

    Coatings Expo Vietnam 2020
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Keim Additec Surface USA LLC

    Pilot Chemical Company

    Active Minerals

    Eagle Specialty Products

    Siltech Corporation
    • 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
      • China Report
      • India/Asia Pacific 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
    • Stahl Outlines Sustainable Development Ambitions in 2020 ESG Report
    • Overview of Iranian Paint and Coatings Industry
    • Raw Material Availability, Price Increases May Be Biggest Issue for Coatings Industry in Europe
    • Resins Update
    • EU Innovation Fund Evaluating Perstorp-created Project AIR
    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
    • dispersions
    • coatings
    • chemical
    • industrial
    Suggested For You
    Stahl Outlines Sustainable Development Ambitions in 2020 ESG Report Stahl Outlines Sustainable Development Ambitions in 2020 ESG Report
    Overview of Iranian Paint and Coatings Industry Overview of Iranian Paint and Coatings Industry
    Raw Material Availability, Price Increases  May Be Biggest Issue for  Coatings Industry in Europe Raw Material Availability, Price Increases May Be Biggest Issue for Coatings Industry in Europe
    Resins Update Resins Update
    EU Innovation Fund Evaluating Perstorp-created Project AIR EU Innovation Fund Evaluating Perstorp-created Project AIR
    RPM Reports Fiscal 2021 3Q Results RPM Reports Fiscal 2021 3Q Results
    CEPE: Coatings, Ink Industry Under Pressure Due to Developments in Raw Materials Market CEPE: Coatings, Ink Industry Under Pressure Due to Developments in Raw Materials Market
    Future Of Egypt Paints & Coating Industry And Post Covid-19 Pandemic Impact Future Of Egypt Paints & Coating Industry And Post Covid-19 Pandemic Impact
    Principal Technician Principal Technician
    2021 CEO Forum 2021 CEO Forum
    Clariant Increasing Pigment, Pigment Preparations Prices Clariant Increasing Pigment, Pigment Preparations Prices
    Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue for Coatings, Ink Sectors Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue for Coatings, Ink Sectors
    CHINACOAT Returns to Shanghai CHINACOAT Returns to Shanghai
    Automotive OEM Coatings Automotive OEM Coatings
    Maroon Group Acquires Cary Company Maroon Group Acquires Cary Company's Raw Materials, Specialty Chemicals Distribution Business

    Related Russian Report

    • Belarussian Coatings Industry Stays Strong  Despite Pandemic, Political Unrest

      Belarussian Coatings Industry Stays Strong Despite Pandemic, Political Unrest

      ...
      Vladislav Vorotnikov, Russia Correspondent 01.11.21

    • Russian Coatings Industry Attracts  New Investments

      Russian Coatings Industry Attracts New Investments

      ...
      Vladislav Vorotnikov, Russia Correspondent 11.10.20

    • COVID-19: Russian Coatings Market ‘Rolling with the Punches’

      COVID-19: Russian Coatings Market ‘Rolling with the Punches’

      ...
      Vladislav Vorotnikov, Russia Correspondent 07.06.20


    • Russian Coatings Industry Holds  Ground Against COVID-19

      Russian Coatings Industry Holds Ground Against COVID-19

      Coatings producers in Russia appear to be hit less than those in the EU as a result of the COVID-19 crisis.
      Vladislav Vorotnikov, Russia Correspondent 05.13.20

    • More Single Wall Carbon Nanotubes to Hit Global Market

      More Single Wall Carbon Nanotubes to Hit Global Market

      ...
      Vladislav Vorotnikov, Russia Correspondent 03.13.20

    • Central Asia Begins to Address Coatings Safety Issues

      Central Asia Begins to Address Coatings Safety Issues

      ...
      Vladislav Vorotnikov, Russia Correspondent 01.20.20


    • Russia Ramps Up Marine Coatings Production

      Russia Ramps Up Marine Coatings Production

      ...
      Vladislav Vorotnikov, Russia Correspondent 11.11.19

    • Printing Inks: An Overlooked Segment

      Printing Inks: An Overlooked Segment

      ...
      Vladislav Vorotnikov, Russia Correspondent 09.03.19

    • Uzbekistan Set to Become Coatings Exporter

      Uzbekistan Set to Become Coatings Exporter

      ...
      Vladislav Vorotnikov, Russia Correspondent 07.03.19


    • Coatings Safety in the Spotlight in Russia Again

      Coatings Safety in the Spotlight in Russia Again

      Environmetnal and public organizations in Russia have raised concerns over the safety of coatings on the domestic market.
      Vladislav Vorotnikov, Russia Correspondent 05.10.19

    • Russia Wants to Eliminate Import  Dependency in Coatings Industry

      Russia Wants to Eliminate Import Dependency in Coatings Industry

      ...
      Vladislav Vorotnikov, Russia Correspondent 03.08.19

    • Russian Automotive Industry Seeking  Domestic Coatings

      Russian Automotive Industry Seeking Domestic Coatings

      ...
      Vladislav Vorotnikov, Russia Correspondent 01.07.19


    • Ukraine Coatings Market’s Recovery in Progress

      Ukraine Coatings Market’s Recovery in Progress

      ...
      Vladislav Vorotnikov, Russia Correspondent 09.01.18

    • Russia Looks for New Impetuses for the  Domestic Coatings Industry

      Russia Looks for New Impetuses for the Domestic Coatings Industry

      ...
      Vladislav Vorotnikov, Russia Correspondent 07.03.18

    • Russian Coatings Producers Feel Brunt of  Weak Demand at the Domestic Market

      Russian Coatings Producers Feel Brunt of Weak Demand at the Domestic Market

      ...
      Vladislav Vorotnikov, Russia Correspondent 05.04.18

    Trending
    • Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue For Coatings, Ink Sectors
    • Sika Expands Production Capacity In Qatar
    • Evonik Joins MIT-IBM Watson AI Lab
    • Hempel Protects O2 Tidal Energy Turbine
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    Breaking News
    • ChemQuest Group Hires Director
    • SONGWON, Chemo International Inc. Announce Distribution Partnership
    • Axalta Schedules 1Q 2021 Earnings Conference Call
    • PPG Directors Announce Quarterly Dividend of 54 Cents Per Share
    • PPG Highlights 2020 Performance at Annual Shareholders Meeting
    View Breaking News >
    CURRENT ISSUE

    April 2021

    • Coatings World Company Profile: Siltech Corp.
    • UV-Curable Coatings
    • Coatings World Interviews Axalta CEO Robert Bryant
    • Resins Update
    • Building a Sustainable Future
    • Paint for Commercial Vehicles Goes Greener
    • View More >

    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

    Study on Kemin’s DailyZz Botanical Supplement Yields Sleep Quality, Next-Day Performance Benefits
    FDA’s Dr. Cara Welch Opening Speaker at the 9th AHPA Botanical Congress
    Arla Foods Enters New Partnership to Reduce Malnutrition With Dried Papaya Snack
    Coatings World

    Latest Breaking News From Coatings World

    Jebsen & Jessen, Innospec Sign Distribution Agreement
    Axalta Schedules 1Q 2021 Earnings Conference Call
    SONGWON, Chemo International Inc. Announce Distribution Partnership
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    FDA Grants De Novo Clearance to Medtronic’s GI Genius Model
    Acutus Medical Receives FDA Clearance of AcQCross
    Thermo Fisher Scientific to Acquire PPD for $17.4 Billion
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Obituary Notice: Russell “Russ” Haines
    Abenza Chooses North Carolina for New Biologics Manufacturing Site
    Catalent Adds Cryogenic Capabilities at Philadelphia Facility
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Lush Launches Recycling Scheme in UK and Ireland
    Loud Lacquer Partners with Hush Puppies
    Tula Teams Up with 5 Influencers To Launch Skin Kits
    Happi

    Latest Breaking News From Happi

    PCPC Virtual Summit Features Legal & Regulatory Conference
    Biolage Unveils ColorBalm Hair Conditioners With Hair Color Benefits
    New Synthetic Biology Coalition Formed in US
    Ink World

    Latest Breaking News From Ink World

    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    SE-DA Invests in Kornit Presto S
    Acrylic Resins Market Worth $21.9 Billion by 2025: MarketsandMarkets
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    FINAT to hold online networking, educational forum
    Epson SurePress reaches milestone
    Maxcess updates user interface for Fife guiding Sensor
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    First Quality to Discontinue Tampon Operations
    Freedonia Tracks Demand for Personal Hygiene Nonwovens
    TMC Supplies Sevinçler with D-Namic Stacker and Bagger
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Mainstay Medical Launches ReActiv8 in Australia
    Biogennix Rolls Out Agilon Strip Bone Graft
    Global Bone Tumor Ablation Devices Market to Top $111 Million by 2027
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Virtual ASMC 2021 Spotlights Advanced Semiconductor Manufacturing Excellence
    LG Display Cuts Down CO2-eq Emissions by 3 Million Tons in 2020
    European Commission's Innovation Radar Acknowledges 3 ARMOR Innovations

    Copyright © 2021 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