• 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
    Mixing Equipment Directory

    The Wood Coatings Market

    Antimicrobial Coatings Market

    Additives Update

    Pigment Supplier Directory
    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
    Croda Named Most Admired Company in British Chemical Sector

    Ashland Increases 1,4-Butanediol, Derivatives Prices in Europe

    First Source Worldwide, LLC Celebrates 20th Anniversary

    Chromaflo Technologies Adds Benjamin Woeste as Territory Sales Manager

    Maroon Group Acquires Cary Company's Raw Materials, Specialty Chemicals Distribution Business
    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

    The Connection Between Color Psychology & Productivity In The Workplace

    Benjamin Moore Launches COMMAND

    IFS Coatings Breaks Ground on 70,000-Square-Foot Expansion

    Mule-Hide Products Co. Introduces Seal-Fast Liqui-Flash

    Conversation with Henning Kreis of Zeppelin Systems
    Additives
    Binders
    Pigments
    Solvents

    Ashland Increases 1,4-Butanediol, Derivatives Prices in Europe

    AOC Announces EMEA Price Increase

    OQ Chemicals Increases Carboxylic Acids, Esters Prices

    Arkema Reports Full-year 2020 Results

    New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Keim Additec Surface USA LLC

    Active Minerals

    Clariant Additives

    Shepherd Color Company, The

    Pilot Chemical Company
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Surface Finishing Mexico 2021

    Cleveland Coatings Society Zoom Meeting

    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Shepherd Color Company, The

    Siltech Corporation

    Pilot Chemical Company

    Active Minerals

    Eagle Specialty Products
    • 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

    Russian Coatings Industry Attracts New Investments

    ...

    Russian Coatings Industry Attracts  New Investments
    O3 resumes operation at Rostov plant. Photo credit- LKM Portal.
    Vladislav Vorotnikov, Russia Correspondent11.10.20
    The domestic coatings industry remains attractive for investors, despite the effects of the coronavirus pandemic.

    Russian businesses launched and expanded existing plants to produce more coatings and raw materials.

    Against the virus

    O3 Coatings recently began operating its JSC Rostov Paint Factory, investing Rub140 million ($2 million) into the project.

    O3 Coatings acquired the assets of JSC Rostov Paint Factory in 2019.

    The original factory, equipped with highly automated and productive Profarb production lines, became operational in 2013, with the designed production capacity of 30,000 tons per year of waterborne paint.

    It went bankrupt in 2014, however.

    O3 said the restored factory will focus on antiviral and antibacterial coatings currently in high demand on the market.

    “As the demand for sanitizers along with antiviral and antibacterial coatings has increased dramatically due to COVID-19, in 2020, O3 will continue focusing on disinfectant production plus antiviral and antibacterial coatings formula development and further production launch,” the company said. “In April, the company started production of antiseptic materials TRIOCLEAN PRO 0090 with a monthly output of more than 200,000 liters.”

    The production of coatings with antiviral and antibacterial properties will start in the third quarter of 2020, per O3. Import-replacement

    JSC Metal Profile Company unveiled plans to invest Rub1 billion ($15 million) to build a new coatings plant in Lobnya, near Moscow, the Moscow Oblast Investment Ministry said in a statement.

    The industrial and warehouse complex the company is constructing is designed for manufacturing and storing painted metal products: Steel roofing, sandwich panels, and profiled metal. The designed capacity of the new plant will be 6,000 tons of coatings per year.

    The plant is set to become operational in November 2020. JSC Metal Profile Company obtained substantial state aid under the project since currently, the domestic production of metal coatings in Russia is insufficient.

    “With the assistance of the Moscow Oblast Investment Ministry, the company twice received a subsidy to reimburse the costs of creating engineering and transport infrastructure facilities – in total Rub114 million ($1.5 million),” said Ekaterina Zinovieva, Moscow Oblast Investment Minister. The project’s goal is to create domestic production of coatings that are the same quality as foreign products, the Minister stressed.

    New regions offer opportunities

    Coatings production in Russia is developing in new regions.

    VMP launched a new coatings plant in the city of Aramil, Sverdlovsk Oblast. The plant is located in the Urals and is unique for this part of the country.

    According to Mikhail Vakhrushev, president of VMP, there is no coatings production of a similar scale in Sverdlovsk Oblast.

    The investment cost of the project is Rub1 billion ($15 million). The facility houses two shops – one for the production of highly dispersed metal powders with a capacity of 2,000 tons per year, and another for coatings production of 15,000 tons per year. The range of the enterprise includes anti-corrosive coatings, polymer floors coatings, and fire retardant coatings.

    “We have launched six production lines and two filling lines. Thanks to digitalization, the influence of the human factor is excluded in the entire production chain. Contact of people with harmful chemical components is eliminated,” Vakhrushev said.

    VMP also received state aid under the project within the government-run program International Cooperation and Export.

    This national project is intended to expand the presence of Russian goods and services on global markets with the help of state regulatory instruments and industry and corporate programs, including export financing, equity financing, leasing, and long-term support measures.

    VMP is yet to reveal its export plans, but usually, Russian companies participating in this project promise the authorities to sell a part of their products to non-Russian customers.

    Raw materials

    There are signs that Russia may soon overcome a shortage of raw materials needed for coatings production.

    Major oil producer Tatneft recently got the green light from the national technical regulator Glavgosexpertiza to build a maleic anhydride plant in the Tatarstan Republic for Rub6.5 billion ($90 million). Tatneft expects the plant, with a production capacity of 50,000 tons per year to become operational in 2023.

    The maleic anhydride market is constantly growing in Russia, with a CAGR between three and six percent, according to Alexey Kalachev, an analyst at Finam Group.

    Maleic anhydride is a multifunctional base chemical, and it is used as raw material for many chemical products, not only coatings. In the medium term, accelerated growth in demand for maleic anhydride both in Russia and abroad can be expected, he said.

    “I believe that the project will be able to take advantage of certain benefits and preferences since it participates in solving two all-Russian strategic tasks,” Kalachev added.

    Firstly, the project has already been included in the government plan of import substitution in the chemical industry, according to which the maleic anhydride import must be abandoned entirely. Currently, Russia and other Eurasian Economic Union members are not producing the maleic anhydride, only importing it. Secondly, the project fits into the state policy in the field of utilization of associated petroleum gas.

    However, the total demand for the maleic anhydride in the Eurasia Union is estimated at 10,000 tons.

    Tatneft would need to export most products. According to Kalachev, the company cannot manufacture less since, with production volumes less than 40,000 tons, it is impossible to ensure sufficient profitability of the project.

    However, the entire Russian chemical industry is turning to export supplies now, Kalachev said.

    Shrinking exports

    During the first half of 2020, export supplies of the Russian coatings within the Eurasia Union – the main foreign market – left a lot to be desired. 

    Between January and June, Russian companies reduced the export of organic coatings by seven percent and water-dispersible coatings by 13.1 percent, the Eurasian Economic Commission estimated.

    The export of water-dispersible coatings amounted to 6,274 tons with an overall value of $7.7 million tons – 13.1 percent lower in physical terms and 8.7 percent in monetary terms – than January-June 2019.

    Similarly, organic coatings export dropped to 25,500 tons, with an overall value of $36.6 million – seven percent lower in physical terms and 9.5 percent lower in monetary terms compared to the previous year.

    Historically, Kazakhstan has been the main sales market for Russian coating companies.

    In the first half of 2020, Kazakhstan purchased 17,500 tons (a 5.9 percent decrease) of coatings in Russia for $21.9 million – 11 percent less, compared to the same period of the previous year. The supplies totaled 3,000 tons (a 21 percent drop) for $3.74 million in the water-dispersible segment, 9.5 percent lower than in the first half of 2019.

    Export supplies to Belarus, Armenia, and Kyrgyzstan also dropped, driven primarily by low domestic demand, commonly attributed to the coronavirus pandemic.

    Turning tables

    The COVID-19 pandemic has put a heavy burden on the Russian economy. Russia’s 2020 GDP growth is projected to contract by six percent, an 11-year low, with a moderate recovery in 2021-2022, according to World Bank.

    The decline of Russian economic growth is further exacerbated by plummeting crude oil prices that dropped 53 percent between January and May 2020.

    The Russian ruble’s exchange rate has lost more than 20 percent in value since the beginning of the year, getting close to an all-time low. However, these are positive signs in these dynamics, as all Russian origin products have become more competitive in the Western markets. This, however, is not working for the Eurasia Union, where all local currencies follow the ups and downs of the Russian ruble.

    Gennady Averyanov, director of the Russian Association of paints and varnishes manufacturers, commonly known as Centrlack, claimed that almost all of the Top 10 Russian manufacturing companies exported their products and harbored plans to increase exports. Averyanov added that Centrlack expected export growth to accelerate in the future, to some extent, thanks to efforts of foreign manufacturers launching their production capacities in Russia. 

    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

    • 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

    • An Outward Glance

      An Outward Glance

      A look at the present state of the Russian paint and coatings market, opportunities for export and the impact of sanctions.
      Vladislav Vorotnikov, Russia Correspondent 11.05.18


    • 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 Price Increases Pile Pressure On Paint Manufacturers
    • AkzoNobel Completes Titan Paints Acquisition
    • Evonik Receives Sustainability Award From EcVadis
    • Benjamin Moore Launches COMMAND
    • Evonik Receives Sustainability Award From EcoVadis
    Breaking News
    • Nouryon Launches Smart-tagged Polymer System for Advanced Water Treatment
    • ROSS Offers Triple Shaft Mixers for Hygienic Processes
    • Croda Named Most Admired Company in British Chemical Sector
    • Ashland Increases 1,4-Butanediol, Derivatives Prices in Europe
    • First Source Worldwide, LLC Celebrates 20th Anniversary
    View Breaking News >
    CURRENT ISSUE

    February 2021

    • Mixing Equipment Directory
    • The Wood Coatings Market
    • Antimicrobial Coatings Market
    • 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

    Thymoquinone Inhibits Viral Infection in In Vitro Settings, New Study Finds
    IFT Transitions 2021 Annual Event to Digital Experience
    NY Federal Judge Enters Permanent Injunction Against Dietary Supplement Manufacturer
    Coatings World

    Latest Breaking News From Coatings World

    Sherwin-Williams Announces Resignation of President, COO
    Ashland Completes Expansion, Relocation of Viatel Bioresorbable Polymers Manufacturing Facility
    Evonik Receives Sustainability Award from EcoVadis
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Guided Therapeutics Raises $1.1 Million in New Preferred Stock Offering
    Bexson Biomedical Appoints Sheldon Moberg as VP, Drug Delivery
    Avacta’s Rapid Antigen Test Proves Effective for New Coronavirus Variants
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Jubilant Therapeutics Appoints Chief Scientific Officer
    Iontas and Fair Journey Biologics Partner with Quell Therapeutics
    Vetter Establishes Office in China
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    e.l.f. Cosmetics and Chipotle Collaborate on Burrito-Inspired Makeup Collection
    Weekly Recap: Sephora Expansion, Ulta Partners with Loop, International Women’s Day & More
    Ulta Beauty Opens in Herald Square
    Happi

    Latest Breaking News From Happi

    Batiste Rolls Out Wonder Woman Dry Shampoo
    Erno Laszlo Taps Carina Lau as Global Spokesperson
    It's International Women's Day
    Ink World

    Latest Breaking News From Ink World

    Massilly North America Adds Koenig & Bauer MetalStar 3 Metal Decorating Press
    Hydrocarbon Solvents Market to Surpass $8.1 Billion by 2030
    Access Direct Mail Doubles Revenue with SCREEN's Truepress Jet520HD
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    UV+EB-cured products rated 'easier to recycle'
    Epson reveals new ink for ColorWorks C6000-Series label printers
    VPF launches liner made from recycled paper
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Kimberly-Clark Names Chief Research and Development Officer
    FPInnovations Develops Biodegradable Mask
    Sani Professional Sanitizing and Disinfecting Products Approved by EPA
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Australia Clears Conformis' iTotal PS Knee Replacement System
    Colfax Decides to Divide Its Businesses
    Stryker Corp.'s 2020 Sales Slip 3.6 Percent
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Comercial Kywi Improves Customer Service, Front-Store Operations with Zebra Mobile Solution
    Global Smart Glass Market to Register 6.8% CAGR Between 2021-28: Grand View Research
    Global Printed Circuit Board Market Projected to Reach $69.32 Billion by 2027

    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