Manufacturers of polymer pipes and fittings are actively discussing the impact of the crisis on the Russian market. If a year ago pipe makers cited difficulties in securing raw materials among the main problems, now there is added concern about the rapid contraction of domestic consumption due to the difficult economic situation and, as a result, a reduction in orders in the main areas of application of plastic pipes.
On April 8, the Ninth International Conference “Polymer Pipes and Fittings 2015” was held, organized by INVENTRA as part of the CREON group. The general sponsor was the Polyplastic Group, the partner was the Centropolymer company.
The colossal potential of the polymer pipe market in the Russian Federation allowed its participants to feel quite confident in difficult economic times, said CREON Energy CEO Sanjar Turgunov, opening the conference. However, the current crisis has not spared the pipe industry. At the end of 2014, the domestic market for PE pipes and fittings “sank” by 10%, and in the first quarter of this year it has already decreased by a third, which turned out to be worse than the most pessimistic forecast. In such conditions, in order to remain competitive, processors try to reduce costs as much as possible, and there is a temptation to use low-quality raw materials or outright surrogates. Accordingly, the share of counterfeits in the market is expected to increase, which cannot but worry industry participants. The conference participants answered how justified these fears are.
The domestic market for plastic pipes is actively developing, said Lola Ogrel, director of the analytics department at INVENTRA. According to its data, in 2003, the consumption of basic polymer pipes did not exceed 125 thousand tons. Over ten years, the demand for pipes increased 4.5 times and in 2013 reached 560 thousand tons. However, according to the results of last year in the segment of PE pipes There was a decrease, so the total consumption of pipes in Russia decreased by 5%. Given the problems in the economy, the result is not so bad, the speaker believes.
The issue of raw materials remains one of the most important for processors, since up to 85% of the cost of pipe products comes from raw materials. In addition to general economic and political factors, the event of last year, which significantly affected the market for polymer raw materials, was another accident at Stavrolen. On the polypropylene market, stopping production had virtually no consequences, because the missing volumes were compensated by Polyoma and Tobolsk-Polymer polypropylene. And the HDPE market, already in short supply, reacted after the accident with a sharp increase in prices, which was one of the reasons for the reduction in the production of PE pipes.
Half of the polypropylene pipes are made from imported polymer. Up to 40% comes from random and block copolymers produced by SABIC, Borealis, Hyosong Corporation, Ineos and other manufacturers, about 10% is imported homopolymer. In 2014, the situation with Russian pipe raw materials improved somewhat. Nizhnekamskneftekhim, after a 4-year break, resumed production of random copolymer PP4132B. Tomskneftekhim expanded the range of pipe grades of copolymers, and Poliom began industrial production of homopolymer pipe grade PP H007 EX for the production of non-pressure pipes, sewer and drainage systems. The PP pipe market depends on imports not only for the supply of raw materials; half of the PP pipes on the Russian market are also of imported origin. It should be noted that positive changes have been taking place in recent years: the share of pipe imports decreased from 82% to 43%, and in 2013-2014. The growth in consumption of polypropylene pipes was ensured by domestic production. In general, consumption of various types of PP pipes exceeded 120 thousand tons. The lack of domestic certified raw materials and the high cost of imported ones are a limiting factor in the development of polypropylene pipe production.
Over the past decade, the volume of consumption of PVC pipes in Russia has tripled, reaching 60 thousand tons, while the market is expanding, mainly due to the growth of domestic production. In 2014, PVC pipes remained dependent on imports for raw materials. The launch of the RusVinyl plant in September last year (with a capacity of 300 thousand tons of suspension PVC) may reduce the supply of imported raw materials to a minimum. However, this will not greatly affect the increase in pipe production volumes.
In general, the increase in production capacity for the production of plastic pipes is hampered by the lack of domestic equipment manufacturers, uncertain government policies in the housing and communal services sector, the long-term practice of using metal pipes and prevailing stereotypes.
The “subsidence” of the market for PE pipes in Russia in 2014 was predictable and in line with expectations, Miron Gorilovsky, General Director of the Polyplastic Group, said in his report. According to his estimates, the volume of the domestic market for pipe grade polyethylene has decreased by 9-10%. At the same time, in Belarus there were no sharp jumps in either the cost of PE or the market volume. The Kazakhstan market of polymer pipes, on the contrary, is full of optimism, showing fairly confident growth dynamics. The speaker noted that it is very difficult to make a forecast for the current year, since much depends on the ruble exchange rate and the cost of hydrocarbons. However, most likely in 2015 the market for polyethylene pipes in the Russian Federation will experience a contraction. The speaker clarified that, despite relatively good demand in March, January-February was a failure. According to preliminary estimates, the reduction in TMPE consumption in the first quarter was 32%. Mr. Gorilovsky explains such pessimism in the market by a sharp reduction in orders and investments, primarily in the housing and communal services sector. With cautious optimism, the company expects possible orders for the construction of facilities for the 2018 FIFA World Cup, as well as the development of the Vostochny cosmodrome.
According to the Polyplastic group, last year the use of pipe PE-100 increased to 54% from 47.5% in 2013. However, in 2015 its consumption is projected to decrease to 44%. In addition, this year the segment of PE pipes for the gas industry will amount to 16%, down from 18% in 2014. The reason was a sharp reduction in the gasification program of Gazpromregiongaz in a difficult economic situation. In such a situation, Mr. Gorilovsky is sure, one should be wary of the growth of surrogate products made from PE grades not intended for the production of pipes. However, there is a plus to this: large customers are beginning to more meticulously check the quality of the products supplied to them, which should be welcomed, the speaker is sure
Mr. Gorilovsky said that the company’s plans are to develop the direction of high-pressure reinforced pipes for oil and gas projects in the Russian Federation. He gave an example of the supply of polymer pipes for the gas transportation infrastructure of Lukoil in the Perm region. In particular, pipes with a diameter of 500-600 mm were used in the system for collecting and purifying associated petroleum gas. Such products are especially important for oil and gas workers because they are environmentally friendly, non-corrosive and thus protected from spills.
The speaker also noted that it is necessary to improve access to the international certification system for pipe products in order to simplify the possibility of exporting them. According to the speaker, in the future, Polyplastic expects to sell 5-8% of its products in this way.
Continuing the topic of exports, Mr. Gorilovsky said that the fall in oil prices caused a decrease in the cost of polyethylene in the markets of Europe and Southeast Asia. At the same time, prices for PE on the Russian market have increased. According to the speaker's forecasts, thus, in May the cost of polyethylene in the Russian Federation and abroad will reach equilibrium. Taking into account the favorable market conditions, Poliplastik carried out trial deliveries of its products to China, however, to fully operate in this market, it will be necessary to create a joint venture with a local manufacturer. According to him, to successfully enter the Chinese market it is necessary to offer customers original products. For example, we can talk about polyethylene pipes reinforced with Kevlar.
Marketing Director of the Pro Aqua company Mikhail Bondarenko presented his vision of the market for pressure polypropylene pipes. According to him, more than half of the pipes in Russia have traditionally been supplied from abroad. Therefore, a sharp devaluation of the ruble will allow domestic producers to increase their market share, despite the decline in consumption. However, he clarified, the problem is that imported equipment is poorly designed for Russian raw materials. In practice, this significantly slows down the rate of output of the final product, which is one of the limiting factors in the development of polymer processing.
The volume of supply of polypropylene pipes last year remained almost unchanged compared to 2013. However, this happened due to the overstocking of warehouses in October-November last year, said Oleg Kozlov, technical director of the Alterplast company. According to him, there is currently a surplus of imported pipes purchased at a high price, which have not found demand in the market. Accordingly, at the end of the 2015 season, we can expect a market drop of 20-50%. Next, the speaker compared the popularity of various brands of pipes in the Russian Federation and abroad. According to him, the European market is primarily focused on metal-plastic pipes, PEX/PERT products, as well as aluminum-free pipes. In Russia, PP pipes are considered one of the priorities. In 2008-2013 their consumption increased from 148.8 to 237.7 million m. He noted that PP pipes are actively used in in-house engineering systems, replacing failed steel pipes. Consumption of polybutene pipes has increased almost fourfold since 2008 to 350 thousand m in 2013. Purchases of metal-plastic pipes, the share of which in 2013 amounted to 129.1 million m, decreased by 4.3 million m compared to 2012, which , according to the speaker, is explained by their high cost.
According to dealer prices on the Russian market of fittings for heating and water supply systems in 2010-2013, sales in the PP fittings segment amounted to $305 million, sales of brass fittings for metal-plastic and PEX/PERT pipes reached $198 million.
The sales market for polymer pipes and fittings is quite stable, but its participants can turn from competitors into fellow sufferers, said Elena Volkova, head of the fittings and procurement department of the Polyplastic group. The speaker confirmed that there is currently a lull in the final product sales segment. According to her, fittings, unlike pipes, are a more marginal product. Accordingly, the speaker concludes, in order to have a stable profit, it is necessary to offer the buyer not individual components of engineering networks, but entire systems. This service insures the manufacturer in difficult economic conditions against a reduction in orders in any group of goods sold. In addition, each Poliplastika enterprise has a workshop for the production of non-standard products, which is a competitive advantage when receiving a complex order. The speaker also noted that within the framework of the Customs Union, for the company, from the point of view of the production of fittings, work in Belarus on the basis of the Kokhanovsky Pipe Plant is of particular interest due to the relatively low cost of its products.
Speaking about trends in the fittings market, Ms. Volkova added that their production will follow the pipe market. Currently, the market capacity of fittings and components in monetary terms is about 12% of the sales volume of PE pipes. At the same time, the emergence of new serious players in the fittings market is unlikely, since this requires established sales channels for pipeline systems, the speaker believes.
Immid company representative Konstantin Shepel noted that 2015 started hard for small polymer processing enterprises. In his opinion, the difficult economic situation and, as a result, a reduction in orders had an equally negative impact on both processors in central Russia and regional markets. However, he believes that the company will be able to maintain sales volumes of its products at last year’s level.
Director of the Lipetsk Research and Production Enterprise “Valok-Chugun” Alexander Babanov spoke about the production of high-strength cast iron pipes. At the end of 2014, the production of these products at the enterprise increased by 15-20% or 40 thousand tons in physical terms. According to him, there is an increase in popularity in the purchase of large-diameter cast iron pipes - 800-900 mm, since competition with polymer product manufacturers is increasing in the smaller diameter segment. In addition, Mr. Babanov noted that those infrastructure projects in which cast iron products are in demand are in limbo. He also spoke about the popularity of cast iron pipes with a polymer coating, where the base holds pressure and the applied layer provides anti-corrosion resistance.
First Deputy General Director of the Domodedovo Vodokanal Alexander Kozlov spoke about the practice of using pipes made of polymer materials at water supply and sewerage enterprises. According to him, if 15-20 years ago one could afford to doubt whether to use polymer pipes or not, now all doubts have disappeared. Almost 60% of utility networks in Russia are in a condition close to critical. According to the speaker, in order to prevent accidents at water supply and sewerage facilities, it is necessary to annually repair 5-7% of the total length of utility pipes. In reality this figure is lower. This is explained not only by the lack of funds in the housing and communal services sector, but also by technical difficulties in the conditions of dense buildings in cities. Therefore, the trenchless method of replacing steel pipes with polymer ones is becoming increasingly popular, Mr. Kozlov noted.
Leading engineer of the mechanical testing laboratory of the Mosgaz company, Alexander Emke, presented a report on the topic: “Study of the strength and deformability characteristics of polyethylene pipes and couplings” based on the experience of the Moscow City Center for the Study of Physical and Mechanical Properties of Structural Materials (MGC), owned by Mosgaz. Based on the report data, PE pipes and couplings make up a significant share of the enterprise’s total procurement volumes. Moreover, each batch purchased by the company undergoes incoming quality control in its own research center (MRC) in the temperature range from –70 to +250 degrees. During testing of polymer products, defects were detected only once, after which the products were promptly replaced by the manufacturing plant. Director of MGC OJSC Mosgaz Gumer Murzakhanov added that even in difficult economic periods, the company not only does not reduce purchases of polymer products for gas supply, but continues to increase their volumes.
Marketing Director of BV Development Olga Muratova spoke about trends in the residential and commercial real estate market. According to the speaker, even in the second half of 2014, when the Russian economy was in difficult times, 81 million m2 of housing were commissioned, which was a record since 1987. Predictably, the top three in housing commissioning were Moscow, the Moscow region and St. Petersburg. The speaker drew attention to the fact that some developers believe that in the foreseeable future, economy-class housing will remain the most in demand. Other construction companies are counting on a quick recovery from the difficult economic period and will again show interest in more expensive housing. However, the main trend in recent years has been the mass construction of apartments. Currently, they make up approximately a third of all square meters offered for housing.
The peculiarity of this segment is that the apartments have the status of non-residential premises. The fact is that this format greatly facilitates development, since significantly fewer requirements are imposed on such construction projects. For example, there is no need to provide them with social infrastructure, which makes the cost of such “apartments” noticeably cheaper. However, it is necessary to know, says Ms. Muratova, that such premises are taxed as commercial real estate. Accordingly, the funds that the buyer saves at the first stage will then be overpaid in taxes over several years.
Concluding the conference, General Director of INVENTRA Nikolai Asatiani noted that market participants found themselves in conditions where the struggle for customers would not be through price dumping on certain types of products, but through offering additional services and comprehensive design solutions. This approach insures the manufacturer against a sharp reduction in orders and turns it into a supplier of pipeline systems, rather than individual pipes, fittings, wells, installation services, etc. As for forecasts for the near future, they are extremely uncertain. The polymer pipes and fittings market will continue to be affected by many factors, such as the cost of raw materials, exchange rates and economic stagnation. However, even in unfavorable conditions, market participants must find “answers to the crisis” on their own, and in cases where the maintenance or failure of entire segments depends on the actions of the state (housing and communal services and gasification programs, national projects), openly declare the pressing problems of the industry.
Polymer (plastic, plastic) pipes - a collective term denoting pipe products made of polymers and copolymers of various designs (one-, two-, multi-layer, including composite metal-plastic, reinforced, corrugated, twisted and hydrothermal insulating), nominal diameters, for various purposes, physical, mechanical and thermal properties.
Some types of polymer pipes by design:
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The firstborn of polymer pipes include polyvinyl chloride PVC pipes, the production of which began in the pre-war years - from “hard” unplasticized polyvinyl chloride (abbreviation PVC-U, RPVC, U-PVC or UPVC), plasticized in order to improve technological properties (abbreviation PVC-P or FPVC), chlorinated polyvinyl chloride for heat resistance (abbreviation CPVC, PVC-C or PVCC) and high molecular weight polyvinyl chloride (abbreviation HMW PVC).
Rice. Structural lattice of polyvinyl chloride.
The advantages of polyvinyl chloride pipes include low sensitivity to UV radiation, reduced flammability compared to other polymers and copolymers, and increased resistance to aggressive environments. The disadvantages are the material-destructive emission of HCL with increasing temperature and prolonged exposure to light in the visible part of the spectrum, which forces manufacturers to introduce stabilizers into the raw material composition, low heat resistance (for PVC-P or rigid vinyl plastic about 75 degrees, for chlorinated PVC with 60-65% chlorine in CPVC versus 57% in RPVC or CPVC - up to 90 degrees Celsius).
In the post-war years, developments by the Max Planck Institute regarding new catalysts for the polymerization of ethylene at low pressure stimulated the emergence of an industry for the production of pipes from low-density polyethylene (or high-density polyethylene LDPE), high-density (low-pressure HDPE), and then cross-linked polyethylene PE-X, made from LDPE (or PHD) by “crosslinking” (bonding) linear bonds with peroxides (abbreviation PE-Xa), organosiloxanes (PE-Xv) or using ionizing radiation (PE-Xc).
Rice. Structural lattice of polyethylene and cross-linked polyethylene.
The binding of molecular bonds in cross-linked polyethylene made it possible to increase the strength properties of polyethylene pipes and their resistance to high temperatures (heat resistance of PE-X up to 95 degrees Celsius).
The first mass-produced polypropylene pipes (PP) appeared on the European market in 1959, and then the range of polypropylene pipes expanded thanks to the use of propylene copolymers (PPR, PPRC), reinforcement and the use of multilayer structures.
The heat resistance of polypropylene pipes is slightly lower than the heat resistance of cross-linked polyethylene pipes, but higher than that of PVC and HDPE/LDPE pipes.
Rice. Polypropylene structural lattice.
In the 60-70s, they began to produce fiberglass pipes made from glass fiber reinforced polyester polymer with operating temperatures up to 150 degrees Celsius, although in limited quantities due to the technical complexity and high cost of production (5-6 times more expensive than steel pipes), polybutylene pipes, similar similar in properties to pipes made from Random polypropylene copolymer, but more flexible.
In 1979, the English company Kitetechnology B.V. was the first to patent a technology for the production of metal-plastic pipes from five layers - internal and external PE-X, bonded with adhesive layers to a butt-welded aluminum pipe of 0.5-2 mm thickness with increased strength characteristics and a very low temperature coefficient of linear expansion compared to other polymer pipes TCLE not more than 0.024-0.026 mm/mK.
By the end of the last century, the production of pipes made of polyvinylidene fluoride (PVDF) with an operating temperature range from -40 to +140 ° C, resistant to UV radiation from the sun, was established, which allows them to be laid on the ground.
Basic performance properties of some polymer pipes
| Basic properties | Cross-linked polyethylene (PE-X) | PVC | CPVC | Polypropylene (PP) | Polyvinylidene fluoride (PVDF) | Metal-plastic |
| Density, g/cm3 | 0,93-0,95 | 1,4 | 1,5-1,6 | 0,93 | 1,78 | -- |
| TCLE, mm/mK | 0,12-0,14 | 0,06 | 0,062 | 0,12 | 0,12 | 0.26 x 10-4 |
| Elongation at break, % | 200-500 | 5-10 | 3-8 | 800 | 110 | -- |
| Modulus of elasticity, MPa | 550-800 | up to 4000 | up to 3000 | 900 | 2100 | -- |
| Thermal conductivity, W/mK | 0,40-0,41 | 0,13-0,15 | 0,16 | 0,15-0,2 | 0,19 | 0,43 |
| Operating temperature, C / operating pressure, MPa | 95/0,85 | 75/0,85 | 93/0,47 | 75/0,6 | 145/0,8 | 95-110/0,8-0,92 |
Note: According to European, American and Russian standards, the strength characteristics of metal-plastic pipes are taken according to the indicators for the polymer layer, which can be made of cross-linked and non-cross-linked polyethylene.
Compared to steel, cast iron and copper pipes, polymer pipes pollute the atmosphere very little during production, require a relatively small amount of electricity, when laid in the ground they almost do not pollute the soil, and with the exception of chlorinated polyvinyl chloride CPVC pipes do not have a polluting effect on the transported water.
In general, the advantages of polymer pipes in comparison with rolled steel pipes are shown in the table.
| Performance properties | Polymer pipes | Steel pipes |
| Average service life, years | 50 or more | 15-20 |
| Resistance to abrasive wear | from 0.06 to 0.5 mm per year - 4 times higher than steel | Sensitive to wear with accompanying electrochemical corrosion |
| Frost resistance | Repeated freezing/thawing without changing properties at a brittle temperature of -50 degrees and below | High when transporting gas and bulk materials and low when transferring liquid media |
| Corrosion resistance | High, including to aggressive environments with the exception of metal-polymers, sensitive to pitting corrosion due to stray currents | Sensitive to atmospheric, water, electrochemical, etc. corrosion, limited in corrosion resistance when protected with zinc or zinc-aluminum |
| Properties of the inner surface | Low surface roughness, eliminating the risk of deposits and reducing the turbulence of the transported flow | Noticeable deterioration in throughput during operation with an increase in the hydraulic resistance of the pipeline |
| Relative extension | From 100 to 800% for different types of pipes, which increases the processability of the material | 20-30% |
| Thermal conductivity | From 0.13 to 0.43 W/mK for metal-polymer pipes | Up to 47 W/mK, which causes fogging when transporting cold water |
| Plastic | Bending without visible deformations at radii from 20-40 diameters (depending on the material) | Low, which requires pipeline turns using fittings |
| Elasticity | It is possible to compensate for thermal expansion/elongation by design solutions of laying schemes | Compensators are required to dampen thermal expansion of the pipe |
| Number of joints | For polyethylene and polypropylene pipes of small diameters, delivery in coils is possible, which significantly reduces the number of joints in the pipeline | At least 90 joints per 1 km of pipeline |
| Ease of transportation and installation | Low specific gravity and the ability to weld (butt, electrofusion, socket) most types of pipes in various diameters | Laying large-diameter pipes requires special equipment, connecting joints using couplings, autogenous welding, and flange connections. |
| Laying method | By trench method, by pulling in old pipes, by ground method for pipes that are resistant to UV rays of the sun | Trench or ground/air with insulation and corrosion protection |
Despite a number of obvious advantages of polymer pipes in comparison with traditional pipelines (steel, cast iron, ceramic, reinforced concrete), attitudes towards them in different countries are different, largely due to the influence of rolled metal manufacturers on the media and governments. The greatest resistance to the popularization of polymer pipes is in the countries of the post-Soviet space, including Russia, where steel pipes lead the national market in terms of sales volumes.
Rice. Pipe consumption volumes in Russia (left) and EU countries (right).
The influence of pipe manufacturers on consumption in our country is also visible in the sales volumes of metal-plastic pipes, which, for example, in Germany are sold in smaller quantities than polyethylene, polypropylene, polyvinylidene fluoride, steel, cast iron and fiberglass pipes.
Rice. Consumption of pipes made of different materials in Germany.
In general, experts for Russia predict an almost threefold increase in sales and consumption of polymer pipes by 2025 compared to 2010.
The growth rate of the polymer pipe market in most European countries corresponds to double the GDP growth rate, and in Russia it exceeds this figure by approximately four and a half times. The only country where this dependence is weakly expressed is Kazakhstan - there the market for polymer pipes is growing mainly due to strong government support for the construction market. In Russia, the main driver of growth in the polyethylene pipe market is the replacement of water supply and sewerage networks, as well as government image projects (Olympics, Universiade, World Cup, APEC Summit, etc.). Despite this, in 2010 the polyethylene pipe market was unable to return to pre-crisis levels. The total accumulated capacity for the production of these products in Russia, according to Mr. Trusov, is approximately three times higher than production volumes. The market is highly competitive and difficult to work with simple and standard products.
Large players, who occupy about 70% of the market, are seeking to diversify their activities, in particular, Polyplastic has added to the traditional production of pressure pipes the production of flexible pre-insulated pipes for hot water supply and heating, sewerage pipes, pipes for trenchless installation and other products new to Russia. At the same time, according to the head of Polyplastic, Miron Gorilovsky, it is not very interesting for foreign players, even those with advanced technologies, to work in Russia, therefore, with the exception of the Pipelife company, they are not represented in the country. At the same time, in a number of segments, for example, in the market of pipes for domestic water supply and heating, the share of imported products accounts for about half of total consumption.
Chairman of the Board of the non-profit partnership “Polymer Pipeline Systems” Marat Baimukanov spoke about the polymer pipe market in Kazakhstan. According to him, the lobby of steel pipe manufacturers is still strong in the republic, and one of the organization’s tasks is to explain the safety of polymer pipes for drinking water supply. There are three major players in the pipe market in Kazakhstan: the Kazakhstan Pipe Plant, which has two sites near Astana and Taraz, the Arystan plant of the Russian Polyplastic in Stepnogorsk and a plant in Atyrau. Also, in each region of the republic, many small companies operate on the market, often using cheap raw materials of not the best quality. In addition, despite high transportation costs, large volumes of pipes are imported into the republic from Russia, Turkey and a number of other countries. In most regions of Kazakhstan, the market for polymer pipes is still poorly developed; Astana and the western regions of the republic account for half of the consumption. In both cases, public investments and projects within the framework of public-private partnerships play a large role, in particular for main drinking water supply to rural areas.
Surface modification of polymer pipes, in particular fluoridation, allows their use in aggressive environments and expands their use in industry. Evgeny Bukharev, general director of the Mayak-93M company, spoke about the pilot production of such pipes. According to him, pipes after treatment with fluorine are 30% more expensive, but acquire unique properties that allow them to be used, for example, in the technological equipment of steam boilers and for other similar purposes.
The problems of using polymer pipes in hot water supply caused a heated discussion among the conference participants. The report by Konstantin Zvezdin, commercial representative for Plastics at Dow Europe, cited shocking figures for the deterioration of Russia’s heating networks and the amount of investment required to replace them. According to him, a third of Russia's heating networks are more than 25 years old, while only 20% were laid over the past fifteen years. The cost of replacing all networks is estimated at approximately 400 billion rubles, but these costs will be recouped in just 2.5 years, since currently 10% of all thermal energy is lost in networks during transportation. The conference participants, however, noted that in the cold climate of Russia and extreme loads on the network, central hot water supply will inevitably become a thing of the past and will be replaced by on-site water heating.
Chief engineer of the Moscow United Energy Company Ilya Pulner said that MOEK has already laid 3.8 thousand km of pipelines using cross-linked polyethylene and stainless steel pipes. In total, the company manages 10.5 thousand km of hot water supply networks, including 3 thousand main ones. The main difficulty and cause of problems with the use of polymer pipes is the lack of experience among contractors in their installation, especially in joining polymer and metal pipes. This causes damage and accidents. Alexander Klimovich, head of the Uponor Rus department for microclimate systems, spoke about the company’s products for hot water supply and heating, in particular about the use of multi-layer thermal insulation of pipes, including foamed polyethylene.
Independent market expert Alexander Gorshenin told the audience about trenchless pipeline restoration technologies using polymer pipes, which are becoming increasingly popular. The pipe is inserted into the damaged pipeline, pulled along it and connected to the undamaged section. In this case, for convenience, the pipe can be inserted into the pipeline in a curled state, and then straightened with steam. This restoration method was mentioned, in particular, by Sergei Skopintsev, head of the technological control department of Mosvodokanal, which services 20 thousand km of pipelines. The share of polymer pipes in this quantity is so far only 5%, since, despite their characteristics, attitudes towards them remain wary, and inexperienced contractors have problems installing them. It is these problems that Mikhail Mordyasov, head of the laboratory of pipeline systems and structures at the Research Institute of Communal Water Supply and Water Purification, urged industry participants to focus on. According to him, design organizations, especially regional ones, very often reject the use of polyethylene pipes in water supply systems. A center for approving such projects, independent of these organizations and the pipe manufacturers themselves, is needed. This will improve the culture and quality of laying polymer pipelines, which are often laid in unprepared trenches without reinforcement and concreting with a gross violation of laying technology, which leads to accidents.
Their quality also plays an important role in creating a positive and negative image of polymer pipes. According to Kirill Trusov, up to 12% of the polyethylene consumed for the production of pipes in Russia is not pipe grades, that is, every sixth polyethylene pipe in Russia is produced from surrogate raw materials. The report of Alexander Bychkov, General Director of the Plast Profile company, was devoted to the problem of the quality of polymer pipes. The company develops regulatory documentation, especially for PVC pipes, and produces casing pipes for water wells. According to him, up to half of all raw materials consumed for the production of polyethylene pipes, one way or another, require modification with dyes and masterbatches, since otherwise it is impossible to make pipes from this polyethylene. The vast majority of manufacturers do not have full-fledged factory laboratories, product quality control is not carried out, and consumers (construction organizations) are, as a rule, only interested in the price of pipes, since issues of their durability are of little concern to them. Conference participants consider this state of the market and institutional environment in the polymer pipe industry to be extremely alarming and dangerous, since pipes made from surrogate raw materials are used, among other things, for gas supply. According to Miron Gorilovsky, in Russia, from 25 (11%) to 30 (13%) thousand tons of polyethylene pipes are produced from surrogate raw materials, less, while in Ukraine - every third pipe. The only organization that can somehow control the situation is Rospotrebnadzor, whose representatives “Polyplastic” proposes to send inspections to unscrupulous manufacturers of pipes for drinking water supply.
A heated discussion among the event participants was sparked by the question of the reasons for such widespread use of surrogate raw materials. It is mainly used by small companies that, for financial reasons, are unable to purchase high-quality pipe-grade polyethylene directly from manufacturers or importers, and are forced to purchase cheaper film grades of high-density polyethylene. This is the only way they can compete with large companies that have lower costs due to large orders from government agencies related to gasification and utility networks. At the same time, the barriers to entry for new players into the market are quite serious; the price of an “entry ticket” to the industry is about 20 million euros of investment, and even greater costs are required to create an institutional environment favorable for a new manufacturer. Those who do not have such resources can only enter the market through the “back door,” including using surrogate raw materials and refusing product quality guarantees. But this does not save many small and medium-sized companies from going out of business; the number of market participants is decreasing, it is becoming less competitive. According to the head of Creon, Fares Kilzie, if the market continues to move in the same direction, it will become an inert environment where only 3-4 companies operate and will stop growing and developing.
You can find an analysis of production technologies and an analysis of the current state and forecast of the market in the marketing research report of the Academy of Industrial Market Conditions:
Market of flexible pipes in PU insulation in Russia
Market research for polyethylene pipes in Russia
Market of corrugated pipes for drainage and storm sewerage in Russia
Market of fiberglass pipes in Russia
PVC pipe market: opportunities for import substitution and analysis of sales markets during the crisis
Market of polypropylene pipes in Russia
RCC. RU
The wide range of applications of polymer pipes is explained by durability, corrosion resistance, low thermal conductivity, environmental friendliness, and new laying possibilities. Optimal results from the use of polymer pipes can be obtained by correctly choosing the type of pipe in relation to the given operating conditions.
Polymer pipes are made from HDPE, PVC, cross-linked polyethylene, polypropylene and copolymers of propylene and polybutene.
Pipes made of polymer materials are mainly manufactured by continuous extrusion. The main element of the pipe line is a screw extruder (single screw for HDPE, LDPE and PPS, double screw for PVC). In the production of polyethylene and polypropylene pipes, granular polymer compositions are used. When producing PVC pipes, the required composition is usually prepared at pipe manufacturing plants. In this case, PVC resin and various stabilizers, lubricants and fillers are used.
To connect pipes made of polypropylene and polybutene, the diffusion welding method is usually used. For heating and hot water supply, pipes made of cross-linked PE, metal-plastic, which are connected only with fittings, and polypropylene, which are connected mainly by welding, are used. Sewer pipes are connected with fittings (regular rubber gaskets are used for tightness). Sewer pipes made of PE can be connected by welding.
According to GOST R 51613-2000, PVC pipes are divided into two types according to the connection method. The first is for adhesive joints, in which aggressive perchlorovinyl adhesives are used. The second type is for a socket connection, in which compaction and sealing is carried out by wedging the ring in the gap between the outer surface of the pipe and the inner surface of the socket.
Simply put, the pipes are simply inserted into one another. Accordingly, when installing socketed PVC pipes, neither complex pipe welding equipment nor highly qualified personnel are needed. This is the simplest and least expensive installation method of all types of polymer pipes.
Production
Currently, polymer pipes occupy a leading position in the construction of gas, water supply, sewerage and heating systems all over the world. There are about 6.8 kg of polymer pipes per resident of the European Union, and about 1.35 kg of pipes per person in Russia. First of all, such indicators indicate that the production of polymer pipes in Russia will develop dynamically.
The production of polymer pipes in Russia is actively developing. Changes occur in production, both qualitative and quantitative. According to our estimates, the production volume for 8 months of 2006 amounted to 110 thousand tons of polymer pipes, which is 20% more than in the same period in 2005. The main volumes of pipe production are made of PE pipes (about 75%), the share of pipes from PP and PVC are approximately the same (10% each), and the smallest share falls on metal-plastic pipes.
Currently, about 100 enterprises produce polymer pipes in Russia. Their number increases every year due to the growing demand for these products. For the most part, these are enterprises with small production capacities, whose products are distributed in local markets. They account for more than 35% of total production. In table 1 presents the main manufacturers of polymer pipes in Russia and their production volumes in 2005 and for eight months of 2006.
Today, of all the enterprises producing polymer pipes in Russia, two main ones can be distinguished, the share of which exceeds 50% of the total production volume. These are the Polyplastic Group and OJSC Kazanorgsintez. The development strategies of these enterprises differ significantly from each other.
About 35% of the volumes of polymer pipes produced in Russia come from the enterprises of the Polyplastic Group. The Poliplastik Group unites the Eurotrubplast Group of Companies and the Polyplastic-Tekhnopol OK. Pipe plants of the Poliplastik Group: in Russia: CJSC AND Gaztrubplast Plant, Klimovsky Pipe Plant LLC (Klimovsk, Moscow region. ), LLC "Cheboksary Pipe Plant" (Novocheboksarsk, Chuvashia), LLC "Saratov Pipe Plant" (Engels, Saratov region), LLC "Yugtrubplast Plant" (Dinskaya station, Krasnodar Territory); in Ukraine: Rubezhansky Pipe Plant LLC; in Belarus: Kokhanovsky Pipe Plant-Beltrubplast JLLC. The total design capacity of the group’s enterprises is 150 thousand tons of PE pipes per year.
The group's factories produce a wide range of pressure polyethylene pipes for water supply and gas supply with a diameter of up to 1200 mm, cross-linked polyethylene pipes for heat supply and sewerage. Polyethylene pipes are made from domestically produced PE-80 and imported PE-100. The holding's enterprises are constantly expanding the range and modernizing equipment.
No more than 20% of Russian-made polymer pipes are products of OJSC Kazanorgsintez. The company produces polyethylene pipes for gas pipelines in accordance with GOST R 50864-95 with a diameter of 63-315 mm and pressure pipes in accordance with GOST 18599-2001 with a diameter of 10-1200 mm. Pipes are produced from polyethylene of our own production PE-80. It is worth noting that Kazanorgsintez has discontinued production of PE-63 polyethylene pipes since 2006. This decision was made because the PE-63 brand is outdated and does not meet international quality standards. Production capacities have been completely reoriented to the production of pipes made of PE-80 polyethylene. At the end of 2005, a joint venture between Kazanorgsintez and Novomoskovsk Pipe Plant LLC (Tula region) was created in Russia. The capacity of the new production is 15 thousand tons of PE pipes per year. The main supplier of raw materials, low-density polyethylene PE-80, is OJSC Kazanorgsintez. We also note that the enterprises of Borodino-Plast LLC and Sibgazapparat CJSC each produce 5% of the total production volume of polymer pipes.
In the total volume of polypropylene pipes produced in Russia, a significant share is occupied by pipes from NPO Stroypolymer, Magistral Plast, Aquatex-Plast, and the Polimertara plant. At the same time, the production of this type of pipes is constantly developing in Russia. An example is ZAO Ikaplast, where in the spring of 2007 it is planned to launch a production line for polypropylene double-layer corrugated pipes.
Among the manufacturers of PVC pipes, the largest volumes are produced by Hemko LLC (Korund plant), Polymers of the 21st Century LLC (Moscow), Agrigazpolymer CJSC, Sayanskhimplast JSC.
About 30% of the volume of PVC pipes (unplasticized polyvinyl chloride) of Russian production is manufactured by Hemko LLC, Nizhny Novgorod (Korund plant). The company produces and supplies socketed PVC pipes for pressure water supply and sewerage in accordance with GOST R 51613-2000 with a diameter of 90- 500 mm and electrical wiring TU 6-19-215-83 with a diameter of 16-90 mm. Since the beginning of 2007, the company has been increasing production capacity by 300% due to the launch of a new line of extruders from the Austrian company Krauss Maffei. The smallest share in Russian production is occupied by pipes made from cross-linked polyethylene, as well as metal-polymer pipes.
The main volumes of metal-polymer pipes in Russia are produced at Metallopolymer CJSC and Liral Trade House. The main manufacturer of cross-linked polyethylene pipes is the Bir Pex company. Despite the fact that in Russia the process of redistribution of shares between manufacturers has begun, the process of developing the production of polymer pipes continues.
According to the forecasts of the Chem-Courier magazine, all positive processes of transformation of production capacities will continue in 2007. The number of small producers of polymer pipes will not change significantly compared to 2006. Due to the constantly growing demand for polymer pipes, the trend towards an increase in production volumes in Russia will continue to do so in 2007. According to our estimates, the volume of production of polymer pipes in Russia in 2006 will increase by no less than 20% compared to 2005.
Import
Despite the increase in production volumes, the share of imported polymer pipes in the markets of the CIS countries exceeds 30%. First of all, pipes are imported, the production volumes of which in the CIS countries are not enough to meet consumer demand. Also, due to imports, the range of polymer pipes on the market is replenished.
All imported pipes on the Russian market can be divided into three main groups. The first group includes products supplied from Western European countries; these products are the most expensive and are in demand mainly among individuals. The second group of products includes polymer pipes produced in Turkey and Poland. The cost of these products is slightly higher than the price of locally produced pipes, but consumers believe that they have better quality characteristics. The third group is products supplied from the CIS countries. In recent years, another group of imported polymer pipes has begun to stand out on the markets—pipes produced in Asian countries.
Over the past years, the volume of polymer pipes imported to Russia has been steadily increasing. According to the magazine "ChemCourier", for 8 months of 2006, 54.01 thousand tons of polymer pipes worth $130.16 million were imported into Russia, which exceeds the same figure in 2005 by 33% in mass and by 44% in in value terms. In Fig. Figure 1 shows the dynamics of changes in the volume of imports of polymer pipes to Russia for 8 months of 2006.
It should be noted that the dependence of the volumes of polymer pipes imported into Russia on the season is clearly visible. In the spring-summer season, the volume of imported polymer pipes increases significantly, while in the off-season it decreases noticeably. In table Figure 2 shows the volume of polymer pipes imported to Russia in 2005, as well as for 8 months of 2006.
The largest increase in the volume of polymer pipes and fittings imported to Russia is due to pipes, the production of which is insufficiently developed in Russia. It is worth noting that, despite a significant increase in polymer pipes and fittings imported into Russia, Russian manufacturers do not feel competition with imported pipes.
The cost of imported pipes on the Russian domestic market primarily depends on the manufacturer. The most expensive pipes are imported from European countries; their cost exceeds the cost of similar Russian-made products by 20-30%. The cost of pipes produced in the CIS countries (Ukraine, Belarus) is in the same price range as Russian products.
The main volumes of imports of polymer pipes and fittings to Russia come from Turkey, Poland, Germany, Ukraine, China, Italy and other countries. In Fig. Table 2 presents the main regions supplying polymer pipes to Russia and the shares of their products in the total volume of imports. The most famous foreign manufacturers supplying polymer pipes and fittings to the Russian market are Wavin (Poland, Denmark, Germany), Pragma (Poland), Rehau (Germany).
According to Chem-Courier, the upward trend in the volume of polymer pipes imported to Russia will continue in 2007, but there will not be such a significant increase in imports as in 2005. The total volume of polymer pipes imported to Russia in 2006 will increase by no less than 25% compared to 2005.
Export
Regardless of the fact that the volumes of polymer pipes produced in Russia are not enough, exports from these countries are steadily increasing. The pipes that account for the maximum production volumes are mainly exported. Due to the fact that the cost of polymer pipes increases significantly during transportation, the main volume of exports falls on the CIS countries. For 8 months of 2006, 4.60 thousand tons of polymer pipes and fittings worth $12.05 million were exported from Russia, which is 18% lower than the same figure in 2005 in mass terms and 15% higher in value terms.
In table Figure 3 shows the volume of polymer pipes exported from Russia in 2005, as well as for 8 months of 2006 (excluding supplies to Belarus). Mainly deliveries are made to the CIS countries. The largest consumers of Russian polymer pipes are Belarus and Kazakhstan. They account for approximately equal shares of Russian exports, exceeding 40% of the total volume. In Fig. Figure 3 shows the main consumer countries of Russian polymer pipes and their shares in total exports for 8 months of 2006 (excluding Belarus).
The assortment structure of the export of polymer pipes is completely similar to the structure of Russian production. The maximum volumes of pipes exported from Russia are polyethylene pipes.
The main exporters are large Russian manufacturers of polymer pipes, such as OJSC Kazanorgsintez, Poliplastik Group, OJSC Sibgazapparat, LLC Borodino-Plast, and in the PVC pipe market - LLC Hemko (Korund plant). The volume of polymer pipes exported from Russia in 2006 will remain at the 2005 level.
Market
The Russian polymer pipe market has been showing intensive development dynamics for several years. Moreover, the market capacity is growing not only due to domestic production, but also due to imports.
The intensive growth in the capacity of the markets for polymer pipes is due to several factors, among which the main ones are the advantages of polymer pipes over metal ones and the high growth rate of construction volumes.
Despite the stable growth in pipe consumption, one should not expect a significant jump in its growth in the coming years. This is primarily due to the fact that the main consumers of pipes - installers and housing and communal services - have historically been committed to metal pipes. In addition, the consumption culture of polymer pipes is still at a low level. It should be noted that the intensive development of the market for polymer pipes within the country has led to the fact that manufacturers sometimes use materials that should not be used for the production of polymer pipes, which leads to the release of low-quality products that undermine consumer confidence.
The growth of the Russian market for polymer pipes is outpacing the growth of markets for other polymer products. The demand for polymer pipes in Russia has been steadily increasing over the past few years. Primarily due to a shift in consumer preferences from metal pipes to polymer ones.
Based on global experience, we can conclude that in the near future the growth rate of consumption of polymer pipes will not be lower than in recent years, and the trend of replacing metal pipes with non-metallic ones will continue.
The increase in apparent consumption of polymer pipes in Russia for 8 months of 2006 amounted to 30% compared to the same period in 2005 and amounted to 159.41 thousand tons. According to many market players, in 2007 the growth rate of consumption of polymer pipes will continue. In table 4 calculates the apparent consumption of polymer pipes in Russia in 2005 and for 8 months of 2006.
At the same time, the growth rate of the capacity of the Russian market for polymer pipes is higher than the growth rate of their production volumes. Market growth is observed not only due to an increase in domestic production, but also due to imports. The share of foreign-made products on the Russian market for 8 months of 2006 reached 34%, which is 2% higher than the same figure in 2005.
The Russian market for polymer pipes is gradually becoming saturated. Moreover, depending on the purpose and area of application of the pipes, segmental market saturation is uneven. Initially, the structure of the Russian market was determined by imports. Due to the increase in the number of manufacturers and the expansion of the range of products, Russian pipes are present in all segments. At the same time, it is import supplies that clearly respond to changes in consumer preferences.
Today, on the Russian market of polypropylene pipes, the presence of products from Germany, the Czech Republic, Turkey, as well as domestically produced pipes is noticeable. The market is predominantly in demand for Turkish polypropylene and metal-plastic pipes. This is due, first of all, to the fairly high quality, as well as a lower price compared to analogues imported from Germany and the Czech Republic.
The demand for Russian polypropylene pipes is growing, because... their quality is not inferior to their Turkish and Czech counterparts, but the price is more attractive. This accordingly leads to active import substitution. The process of import substitution has become more possible due to the fact that on the Russian market in 2006, due to periodic shortages, the price for PP is lower than for HDPE, which is not typical for these types of plastics.
In the segment of polyethylene pipes at the beginning of 2006, the market was characterized by a significant excess of supply over demand. However, since May, demand has increased significantly for pipes of various diameters. The summer of 2006 was characterized by high consumer activity for polyethylene pipes. However, already in August September there was a shortage of large diameter pipes on the market. Caused primarily by a shortage of raw materials, as well as seasonal demand for these products, as a result, starting in July, the price of polyethylene pipes has been steadily increasing. The increase in the cost of PE pipes has led to the fact that the difference in price between a linear meter of polyethylene pipe and its steel counterpart has decreased significantly. This factor, according to some market participants, will lead to intensifying competition between steel and PE pipes.
An interesting example of a way out of the current market situation was the transition of some large manufacturers of polymer pipes to imported raw materials. It should be noted that in 2006, Russian prices for some types of these products exceeded world prices, moreover, prices of imported producers of raw materials are less elastic. Thus, the transfer of production to imported PVC resin allowed Hemko LLC (Korund plant) throughout 2006 not only to pursue a stable pricing policy, but also to predict the absence of significant price increases in the long term.
In Fig. Figure 4 shows the dynamics of changes in prices for PE and steel pipes in Russia in 2006. It is also worth noting that an important factor in changes in consumer demand is the difference in the costs of laying metal and polymer pipes. If we take into account the total cost of laying polymer pipelines and their operation, then the cost of laying polymer pipes is 22-45% lower than steel ones. However, not all consumers consider this factor to be dominant. The consumption of polyethylene pipes in a particular region largely depends on municipal programs.
Today in Russia, programs are being implemented to replace old pipelines with new polymer ones, however, due to the low level of funding, these programs are practically not implemented.
The demand for all types of polymer pipes is seasonal. Depending on the application, seasonal fluctuations in demand vary. Thus, the demand for polymer pipes for indoor water supply practically does not depend on the season, while the demand for pipes for outdoor use decreases sharply in the off-season.
The seasonal factor does not have a significant impact on changes in the cost of polymer pipes. The main factor determining the price of pipes made of polymer materials is the cost of raw materials.
The price of raw materials necessary for the production of pipes has increased significantly due to the rise in oil prices. Due to high competition, as well as close proximity to the end consumer, pipe manufacturers cannot clearly respond to changes in the cost of raw materials. Therefore, suppliers are often forced to reduce profitability in order to maintain the sales market. Large producers compensate for the decrease in profitability with large production volumes, and those producers who purchase raw materials at large discounts find themselves in more favorable conditions.
One of the important factors influencing the level of demand is the price-quality ratio. Currently, polymer pipes are available on the Russian market in two price ranges. In the “upper” price range are pipes supplied to Russia from European countries; their cost differs from the cost of Russian pipes by 10-20%.
The price of pipes produced in Russia and Eastern Europe is practically the same. As for products imported from Asian countries, they are cheaper than Russian ones.
The saturation of the market with polyethylene pipes has led to increased competition between players. One of the factors for successful competitive work in the market has become distribution networks. But at the same time, almost all manufacturers prefer to work directly with large customers. To attract the maximum number of consumers, most enterprises have developed a flexible system of discounts.
Some of the major consumers of polymer pipes are construction organizations and utilities. They account for more than 65% of the capacity of the Russian market of polymer pipes. Fierce competition between market players has led to corporate consumers currently announcing tenders for the supply of pipes.
The Russian market for polymer pipes is practically formed. Currently, representatives of trading companies strive to work with those manufacturers who provide optimal and favorable terms of cooperation.
All transformations in the Russian market of polymer pipes, both quantitative and qualitative, will lead to the consolidation of the industry in the near future. We should expect the consolidation of trading companies involved in the sale of pipes.
I would like to note that the saturation of the market with polymer pipes will lead to the fact that consumers will begin to put forward quite stringent requirements for the quality characteristics of purchased products.
Today, the market for polymer pipes is characterized by high consumer activity and shortages. According to market players, the level of demand is currently higher than last year.
The Russian market today offers polymer pipes from various manufacturers and price ranges. The Russian market for polymer pipes is developing rapidly, its capacity will increase annually by at least 25%.
Prepared on the basis of a study conducted by the magazine “Chem-Courier” (Dnepropetrovsk, Ukraine).
>>> Also read about the topic in the magazineThe production of polymer pipes and hoses in the Russian Federation has been declining since January 2015. In December 2015, 10 thousand tons of products were produced less than in the same period a year earlier. We cannot expect an overcoming of the negative trend in the near future.
Russian enterprises have shown a steady downward trend in the production of polymer pipes and hoses over the past 12 months. According to the study, with The cumulative decline in production volumes at the end of 2015 amounted to 21% y/y. IndexBox experts note that the reduction in production volumes is caused by a decrease in demand from consuming industries, as well as a decrease in investment activity. In 2015, the volume of investment in fixed assets in Russia fell by 9.9% y/y.
Dynamics of production of polymer pipes and hoses in Russia
The volume of production of polymer pipes and hoses in value terms follows the dynamics of production in physical terms, with a less pronounced decline. Thus, in 2015, production volume in value terms was 8% lower year-on-year. According to a study conducted by IndexBox specialists, the cost of producing polymer pipes has increased due to rising prices for raw materials (primary polymers) and electricity, which affected the final cost and production growth rate.
Production volume of polymer pipes and hoses in Russia
Among the most important enterprises in the polymer pipes market are: POLIPLASTIC GROUP LLC from Moscow, followed by DKS JSC from the Tver region and TECHNOPLEX Plant LLC from the Republic of Bashkortostan. As well as LLC "SMIT - YARTSEVO" of the Smolensk region and OJSC "VHZ" from the Vladimir region. These companies are the largest domestic producers of polymer pipes and hoses.
Market of polymer pipes and hoses in Russia: geography of production
The largest volume of production among all federal districts falls on the Central Federal District: in the 4th quarter. In 2015, 50.6 thousand tons of polymer pipes and hoses were produced there, which is 38% of the total volume. The Volga Federal District is in second place with a share of 29.2%, and the Southern Federal District is in third place with a share of 15.3%. Taken together, these federal districts account for 82.5% of Russian production in Q4. 2015, while in the 1st quarter. In 2015, the same districts accounted for a combined 78.6%. The stable distribution of shares in the total production volume shows uniform intra-annual capacity utilization in all federal districts.
Forecast for the development of the domestic pipe market in 2017 and subsequent years
In conditions of growing demand for products of the domestic chemical complex from related industries, the production index for the type of activity "Chemical production" in 2018 will be 115.5% of the 2014 level.
In 2018, compared to 2014, exports of chemical products (at comparable prices) will increase by 9.2% due to the development of production of products competitive on the world market, imports will decrease by 2.9%.
The implementation of promising innovative projects in the chemical complex will allow us to enter the production of completely new types of products in terms of consumer properties, which will create conditions for effective import substitution and reducing the dependence of the domestic market on the influence of foreign companies for a number of product items (plastics, chemical fibers and threads, paints and varnishes) .
In the field of development of production of rubber and plastic products in the period until 2018, it is planned to implement investment projects for the production of polymer pipes, films, sheets, containers and packaging, profile moldings, wood-polymer composite materials, rubber products for various purposes, tires, etc.