IRL Profiles the Russian Paint Industry

Citation

(2006), "IRL Profiles the Russian Paint Industry", Pigment & Resin Technology, Vol. 35 No. 6. https://doi.org/10.1108/prt.2006.12935fac.007

IRL Profiles the Russian Paint Industry

IRL Profiles the Russian Paint Industry

Keywords: Paints, Russia

Paint demand in Russia exceeded one million tons in 2005 and is estimated at 1,050,000 tons, according to IRL, London. Russian paint output is climbing as a result of limited investment across the top tier of industry, and imports are spiraling to help fill the technology gap especially in some of the most important economic areas such as Moscow and St Petersburg. The performance of the industry in the future is expected to be good, growing at an average of 7.1 per cent per year between 2005 and 2010, when Russian paint demand will approach 1.5 million tons.

Although Russian GDP growth is beginning to soften, one of the major growth markets will be the rapidly growing automotive industry as foreign carmakers invest on Russian soil. It is expected that the level of car output in Russia will soar from 165,000 units in 2004 to 900,000 units by 2010 and that demand for automotive OEM coatings will multiply rapidly, possibly by as much as 30 percent per year from the present level of about 40,000 tons. There is a long waiting list for foreign car models in Russia, and with purchasing power rising there will be associated increases in refinish consumption within the coming years.

One of the key difficulties for the Russian paint and coatings sector, and the Russian chemical sector in its widest sense is a lack of investment interest. At present, the level of investment in the Russian chemical industry is insufficient while for most the paint sector remains unattractive. Some major paint companies have been able to expand production capacity, but most are in need of new manufacturing equipment, ideally with a degree of cost- effectiveness. Most consumers would prefer to see the quality of Russian paint output rise rather than being able to choose from a wider range of colors or being offered new formulations.

Also, with regard to raw materials supply:

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  There is a major shortage of good quality binder, resin and paint- additive production in Russia.

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  There is a limited degree of good quality pigment production, and Indian and Chinese sources are now penetrating the Russian paint- pigment market with pigments of rising quality and steady price, which has made them attractive.

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  Appreciable volumes of titanium dioxide are imported from Ukrainian sources such as Sumykhimprom and GAK Titan, but Kemira, Kronos and Du Pont are also major suppliers.

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  High-quality pure solvents are only manufactured by a handful of major chemical producers, while mixed solvents are more widely available.

A Profile of the Russian Paint Industry, second ed., can be purchased from Information Research, London (IRL). Contact Terry Knowles at tknowles@brg.co.uk or visit www.informationresearch.co.uk/