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Rubber & Plastic

Companies researching in rubber and plastic technology are eying the Russian market. The Russian rubber and plastic industry is most active in Europe. As the industries in construction, automotive and packaging continue to grow, so does the demand for plastic and rubber and its raw materials. Demand for machinery to process raw materials and produce finished and semi-finished products in rubber and plastic is also on the rise.

Many industries have brought a change in the use of materials. Lightweight plastics are replacing conventional materials such as steel, paper and cardboard. Municipal services in Russia are substituting plastic for steel pipes to supply water and gas. The market demand for plastic pipes in the region of St. Petersburg alone amounted to $50 million in the year 2004.

Russia had the second highest share in the export of rubber products from EU-27 in the year 2007. The tire sector in Russia is very dynamic and is keen on modernization and developing new products. The growth prospect for the rubber industry is around 25% a year. High tire demand, due to soaring car imports, is the reason why the Russian rubber is competitive in the market. Russian manufacturers are expanding rubber and plastic manufacture plants and investing in its modernization. Considering Russia’s economy growth potential, the future of industries in Russia holds great promise.

An 11.8% development in the automotive industry has triggered a revolution in the production of rubber and plastic for tires and body parts of automobiles. As major automobile makers are gradually entering the Russian automobile market, the demand for high quality tire is growing. It has been reported that Yokohama Rubber Co. Ltd., Japan will invest $396.6 million in a new Russian tire plant which is expected to begin its operations by 2011.

The packaging industry is at the peak of its marketing sales in Russia. An increasing number of products in the consumer goods section have increased the number of consumers. Plastic packaging ensures quality packaging with enchanting visual designs. Since there are a number of international food producers in Russia, the growth in the plastic industry doesn’t seem to be far behind. In 2005, there were 2000 plastic processing companies in Russia.

PepsiCo and the Pepsi bottling group (PBG) have together invested around $4 billion to develop advanced technology for producing ultra-light PET plastic bottles which uses considerably less plastic and less energy.

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