High level of interest despite difficult times
07.11.2016
Western technology for the production of packaging and related processes, as well as for the manufacturing of plastic and rubber goods is still highly valued by Russian companies. However, the political framework conditions, the fall of the oil price, and a continually weak rouble, having an inflation rate of approx. 15.8 percent last year, as well as hesitant lending as a result thereof are making it difficult to make investments, especially for small businesses.
High level of interest despite difficult times
interplastica and UPAKOVKA/UPAK ITALIA 2016 in Moscow
recorded considerably more visitors than in the previous year
Western technology for the production of packaging and related processes, as well as for the manufacturing of plastic and rubber goods is still highly valued by Russian companies. However, the political framework conditions, the fall of the oil price, and a continually weak rouble, having an inflation rate of approx. 15.8 percent last year, as well as hesitant lending as a result thereof are making it difficult to make investments, especially for small businesses.
On the other hand, there is still considerable investment needed in Russia and neighbouring countries. Above all, the demand has been placed on the domestic consumer goods industry, the food industry, and the packaging industry to optimise production processes and product quality in order to be able to substitute imports. Therefore staying informed concerning innovative technologies, maintaining business relationships with suppliers, or establishing new ones represented the main focus of visitors to the interplastica and the UPAKOVKA/UPAK ITALIA 2016. From 26 to 29 January, 20,900 specialist visitors from Russia and its neighbouring countries came to the Moscow Expocentre in Krasnaya Presnya - around 1,900 more than in 2015. The atmosphere within the halls was remarkably great. The exhibitors reported there being extremely interested business people, who were also, in part, ready to make orders. A total of 828 companies from 38 countries presented their range of offers at both trade fairs.
“Russia is still a potentially significant market currently experiencing difficult times. At the moment, for small and middle-sized Russian companies in particular, it is not easy – the problem of financing planned investments is a quite big. However, the market has in no way come to a halt. There is still a high level of interest in high-quality and innovative machinery, systems, and materials. Companies want to invest and are also making effort to realise planned projects. In such a situation, trade fairs play an important role! With their participation, the exhibitors have provided that they do not only have short-term success in mind, but are making endeavours to sustainably maintain relationships. This was clearly rewarded,” commented Matthias Werner Dornscheidt, Chairman and CEO of Messe Düsseldorf. The trade fair company organises both specialist trade fairs, the interplastica and UPAKOVKA/UPAK ITALIA together with its subsidiary, Messe Düsseldorf Moscow OOO, the latter in cooperation with the Italian organiser CPA.
The visitors unanimously expressed positive feedback regarding the versatile range of companies and products, the numerous product debuts, and the presence of many market leaders. Special suppliers and newcomers were also able to be delighted with the lively activity at their trade fair stands.
For German machine manufacturers, Russia is still an interesting sales market, even if figures are currently in decline. During the period from January to November 2015, German export shipments of machinery for processing plastics and rubber to Russia amounted to 118.8 million euros, which is a decrease of 16.7 percent in relation to the same period during the previous year. Despite this decrease in orders, Germany remains the most important supplier in this segment. In 2014 (figures for 2015 are not yet available), the German market share was at 23.9 percent. Italy followed with 12.6, being right ahead of China, whose market share was at 11.6 percent. The world export of plastics and rubber machines to Russia showed an increase of 4.1 percent in 2014 in comparison to the previous year, corresponding to a total value of 666.0 million euros.
Bernd Nötel from the VDMA Association for Plastics and Rubber Machinery (“Fachverband Kunststoff- und Gummimaschinen”) is pleased that the German-Russian business relations, which have traditionally been full of trust, are continuing even in difficult times. “Machinery made in Germany has a good reputation here, and the service provided by the German companies is highly appreciated. German suppliers have taken advantage of their on-site presence to maintain close contact with their customers and present their innovations. The financing of planned and also necessary investments currently represents the greatest problem. However, there is definitely optimism for the future - especially because it seems that efforts are being taken by the Russian government in order to drive forward the expansion of domestic production. Developing the value-added chain has long been neglected – the current low oil and gas prices have now provided for some movement on this field.” Nötel summarised that many German companies came to the interplastica with subdued expectations, but these were clearly surpassed due to the increased number and the high quality of customer leads. On the first evening of the trade fair, this VDMA specialist association, together with the VDMA Association for Food Processing Machinery and Packaging Machinery (Fachverband Nahrungsmittel- und Verpackungs-maschinen), extended an invitation for a social exchange to take place between German suppliers and Russian customers and was very pleased with the positive feedback.
As is customary, Italy was strongly represented during the interplastica. In halls 1 and 3, numerous individual exhibitors and the large community stand offered an extensive overview. And, although Italian manufacturers were not able to sell as many machines and tools to Russia as in 2013, companies are relying on good customer contacts that have endured for many years as well as the quality of their products. That was confirmed by Mario Maggiani, CEO of the Italian machinery manufacturer's association, Assocomaplast: “Exports of plastics and rubber machinery as well as moulds dropped by 12 percent in 2014 in relation to the previous year, i.e. from 119.5 to 105.3 million euros. And if we take a look at 2015, we have to even assume a decline of 20 to 30 percent in light of the existing figures to date for the first three quarters. Thereby, Russia has fallen into eighth place in our export statistics after being one of the five most important sales markets for Italian manufacturers of plastics and rubber machinery for many years.” However, Maggiani further commented, although no quick improvement had been expected in the face of the difficult economic environment, in particular, the weak rouble, the fall of the oil price, and the sanctions, the great visitor turnout at the interplastica as well as the specific discussions were clearly far beyond the expectations of the Italian exhibitors.
The range of offers of interplastica exhibitors was complemented by an expert supporting programme. At the “Raw Materials Meeting Point” on the Polymer Plaza located in trade fair hall 1, lectures and rounds of discussions took place where raw materials, the recycling of plastics, and additive production were the topics of focus. In addition, exhibitors presented innovative products and processes during the course of open seminars.
The next interplastica in Moscow will take place from 24 to 27 January 2017, again running in parallel with UPAKOVKA/UPAK ITALIA. More information is available online at www.interplastica.de and at Messe Düsseldorf GmbH, Mr Thomas Franken, tel. 0211/4560-7739, e-mail: FrankenT@messe-duesseldorf.de,, and Ms Claudia Wolfgram, Tel. +49 (0) 211-4560-7712, E-mail: WolfgramC@messe-duesseldorf.de