polymer market in ukraine - mrc · each polymer contains detailed statistic data on production of...

Polymer Market in Ukraine

Overall Market Review

2007

www.mrcplast.ru

Polymer Market in Ukraine - 2007

© www.mrcplast.ru ©

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CONTENTS

1. GENRAL STATE OF THE UKRAINIAN POLYMER MARKET .......................6

2. POLYETHYLENE MARKET..................................................................23

2.1. Finished Goods Made of Polyethylene.................................. 29

А. Films....................................................................................... 30

В. Pipes....................................................................................... 36

С. EBM........................................................................................ 40D. Injection Molding....................................................................... 41

Е. Cable....................................................................................... 42

2.2. Equipment.......................................................................... 43

3. POLYPROPYLENE MARKET................................................................50

3.1. Finished Goods Made of Polypropylene................................ 55

А. Soft Containers Made of Polypropylene.......................................... 56

В. Flooring................................................................................... 58

С. Molded Goods........................................................................... 59

D. Films....................................................................................... 63

E. Thermoformed Goods................................................................. 65

F. Pipes....................................................................................... 66

3.2. Equipment.......................................................................... 67

4. POLYSTYRENE AND STYRENE PLASTICS MARKET ..............................72

4.1. Finished Goods Made of Polystyrene.................................... 75

A. Thermoformed Goods................................................................. 76B. Refrigerators ............................................................................ 79

C. Other Household Appliances........................................................ 81

D. Expanded Polystyrene Plates....................................................... 84

4.2. Equipment.......................................................................... 86

5. PVC MARKET....................................................................................91

5.1. Finished Goods Made of PVC................................................ 97

A. Profile-Molded Goods.................................................................. 98

B. Vinyl Wallpapers...................................................................... 101

C. Linoleum................................................................................ 103

D. Other.................................................................................... 105

5.2. Equipment........................................................................ 108

6. PET MARKET..................................................................................114

6.1. Finished Goods Made of PET.............................................. 115

6.2. Equipment........................................................................ 117

7. MARKET OF TYRES AND MECHANICAL RUBBER GOODS....................120

ANNEX I. INDUSTRY MAGAZINES.......................................................124

ANNEX II. EXHIBITIONS, CONFERENCES............................................125

ANNEX III. INDUSTRY ASSOCIATIONS...............................................126



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This Review contains in-depth analysis of the Ukrainian base polymer market,

which remains one of the fastest growing markets in the world. The Report contains

analysis of the PE, PP, PVC, PS and PET markets, as well as the information on the

Ukrainian market of tyres.

Our Report will be very useful for nearly all players in the Ukrainian polymer

market: manufacturers and suppliers of polymers, processors and suppliers of

equipment.

As before, in our reports we focus on analysis of processors’ needs in polymers in

the context of processing sectors, types of polymers and their producers, as well as in

the light of their product mix. The Review contains data on consumption, production,

import and export of both polymers and goods made of them. Each processing sector of

each polymer contains detailed statistic data on production of finished goods like for

instance refrigerators, films, pipes or accumulators by each Ukrainian enterprise. The

analysis covers the period from 2000 to 2006 inclusive. All types of polymers are

indicated in compliance with the world classification. The Review also includes mini-

reviews by each type of polymers considering history of the market by each polymer,

changes, trends and principal market players.

The most important difference of this Review from all our previous reports is the

presentation of detailed information on investments into polymer processing equipment.

These data are presented in the context of processing sectors, types of lines, supplying

countries and names of companies. By each sector and by the entire market on the

whole we have compiled ratings of equipment suppliers by the number of supplied

complete lines within the recent seven years.

The Review may give you answers for the following questions:

What was the reason of the decreasing growth rates of polymer consumption in Ukraine in

2006? What is going to happen in 2007-2008?

What can we expect in 2007 from each processing sector of five base polymers?

What are the reasons of the sharp increase in consumption of LLDPE, PVC-S, PVC-E and HDPE?

Which processing sectors by each polymer are growing faster than the market on the whole?

What is the distribution of investments into polymer processing by sectors, suppliers and

processors?

Which companies made the biggest investments into equipment?

What are the volumes of production, import and export of finished goods by each polymer?

Which polymer producers increased their market shares, and which on the contrary lost their

positions?

Which equipment suppliers are leading in terms of supplies of either one or another equipment

in each polymer processing sector in Ukraine?

Which development strategy is required for polymer processing industry in Ukraine?

Review Statistics: 124 pages, 97 tables, 41 diagrams, 32 378 words, 437 mentioned companies.

Format: PDF and full-color paper version. Contacts: [email protected]



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List of Tables

1. Consumption of base polymers in Ukraine, 2000-2006, MT 2. Consumption of base polymers in Ukraine, 2000-2006, MT 3. Production of some polymer goods in Ukraine, MT 4. Consumption of finished polymer goods* in Ukraine, 2006, MT 5. Import of some polymer goods to Ukraine, MT 6. Export of some polymer goods from Ukraine, MT 7. Investments into polymer and rubber processing equipment,

USD thous. 8. Investments into base polymer processing equipment, lines 9. Delivery of polymer and rubber processing equipment, lines 10. Delivery of base polymer processing equipment, USD

thous. 11. Delivery of base polymer processing equipment, lines 12. Manufacturers specializing in production of polymer and

rubber processing equipment, 2006, units 13. Polyethylene market in Ukraine, 2000-2006, MT 14. Consumption of polyethylene in Ukraine, MT 15. Consumption of polyethylene in Ukraine by markets, 2000-

2006, MT 16. Consumption of polyethylene in Ukraine by markets, 2000-

2006, % 17. Production of polyethylene films in Ukraine, MT 18. Production of films in Ukraine, 2006 19. Production of PE bags and sacks in Ukraine, 2006 20. Specialization of some film manufacturers in Ukraine 21. Import/export of PE films in Ukraine, 2003-2006, MT 22. Production of polyethylene pipes in Ukraine, MT 23. Production of polymer pipes in Ukraine, 2004-2006, MT 24. Output capacity of PE pipe manufacturers in Ukraine 25. Production of plastic pipes in Ukraine, MT 26. Import/export of PE pipes in Ukraine, 2003-2006, MT 27. Production of EBM goods made of polyethylene in Ukraine,

MT 28. Production of polyethylene molded goods in Ukraine, MT 29. Consumption of PE for cable extrusion in Ukraine, MT 30. Import of complete PE processing lines, pcs. 31. Supplies of complete PE processing lines by countries, pcs. 32. Top-5 suppliers of lines for PE film extrusion, pcs. 33. Top-5 suppliers of lines for polyethylene extrusion blow

molding, pcs. 34. Top-5 suppliers for PE pipe extrusion, pcs. 35. Top-5 suppliers of PE injection molding lines*, pcs. 36. Import of PE processing lines by suppliers, pcs. 37. Polypropylene market in Ukraine, 2000–2006, MT 38. Consumption of polypropylene in Ukraine by types, MT 39. Consumption of polypropylene in Ukraine by types, % 40. Consumption of polypropylene in Ukraine by markets, % 41. Import of polypropylene to Ukraine by markets, % 42. Production of PP fibers in Ukraine, kg 43. Production of flooring in Ukraine, thous. m² 44. Import of carpeting to Ukraine, 2000-2005, MT 45. Consumption of polypropylene by sectors of injection

molding, MT 46. Production of lead accumulators in Ukraine, pcs. 47. Production of polypropylene films, MT 48. Import/export of PP films in Ukraine, 2003-2005, MT 49. Import of BOPP to Ukraine, 2005, MT 50. Delivery of imported complete lines for PP processing, pcs. 51. Supplies of complete PP processing lines by countries, pcs. 52. Top-7 suppliers of thermoplastic automatic machines for

PP processing, pcs. 53. Top-5 suppliers of film EBM machines* for PP processing,

pcs.

54. Top-5 suppliers of PP flat extrusion lines, pcs. 55. Supplies of complete PP processing lines by suppliers, pcs. 56. Polystyrene market in Ukraine, 2000-2006, MT 57. Consumption of polystyrene and styrene plastics in

Ukraine, MT 58. Production of disposable ware in Ukraine, 2004-2005, MT 59. Production of thermoformed containers in Ukraine, MT 60. Production of laundry washers with the capacity up to 10

kg in Ukraine, pcs. 61. Production of TV-sets in Ukraine, 2004-2006, pcs. 62. Production of household vacuum cleaners in Ukraine,

2004-2005, pcs. 63. Supplies of imported complete lines for PS processing, pcs. 64. Supplies of complete PS processing lines by countries, pcs. 65. Supplies of complete IM machines for PS processing by

countries, pcs. 66. Supplies of lines for expanded polystyrene processing by

countries, pcs. 67. Supplies of sheet extruders for PS processing by countries,

pcs. 68. Delivery of complete lines for PS processing by suppliers,

pcs. 69. PVC market in Ukraine, 2000-2006, MT 70. Components of the market of unmixed PVC in Ukraine,

2000-2006, MT 71. Supplies of PVC compounds in Ukraine, 2000-2006, MT 72. PVC consumption structure in Ukraine, 2000-2006, MT 73. Consumption of PVC-S in Ukraine by processing sectors,

MT 74. Production of wallpapers in Ukraine, 2004- 2006, MT 75. Import/export of vinyl wallpapers in Ukraine, MT 76. Production of linoleum in Ukraine, MT 77. Production of footwear in Ukraine, thous. pairs 78. Import/export of footwear to/from Ukraine, mln. pairs 79. Production of polymer footwear in Ukraine, thous. pairs 80. Import/export of PVC films in Ukraine, MT 81. Supplies of imported complete PVC processing lines, pcs. 82. Supplies of complete PVC processing lines by countries,

pcs. 83. Suppliers of lines for extrusion of profile-molded goods

made of PVC, pcs. 84. Suppliers of thermoplastic automatic machines for PVC

injection molding, pcs. 85. Suppliers of PVC pipe extrusion lines, pcs. 86. Suppliers of PVC compounding lines, pcs. 87. Delivery of complete PVC processing lines by suppliers,

pcs. 88. Consumption of bottle PET in Ukraine, MT 89. Supplies of complete PET processing lines, pcs. 90. Supplies of imported complete PET processing lines, pcs. 91. Supplies of imported IM-lines for PET processing, pcs. 92. Supplies of imported ЕВМ lines for PET processing, pcs. 93. Supplies of imported complete PET processing lines, pcs. 94. The market of tyres in Ukraine, 2000 – 2005, thous. pcs. 95. Production of tyres and inner tubes in Ukraine, 2006,

thous. pcs. 96. Production of tyres and inner tubes in Ukraine, 2006,

thous. pcs. 97. Production of rubber mechanical goods in Ukraine, 2006



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List of Diagrams

1. Consumption of base polymers in Ukraine, KT 2. Consumption of polymers in Ukraine, 2006, % 3. Consumption of polymers in Europe, 2006, % 4. Investments into polymer processing equipment

in Ukraine, EUR mln. 5. Investments into polymer and rubber processing,

Ukraine, 2000-2006, % to price 6. Investments into polymer and rubber processing,

Ukraine, 2006,% 7. Import of polymer and rubber processing lines to

Ukraine, pcs. 8. Investments into polymer and rubber processing,

Ukraine, 2000-2006, % to pcs. 9. Delivery of polymer processing equipment to

Ukraine, 2000-2006, % to price 10. Consumption of polyethylene in Ukraine, KT 11. Consumption of polyethylene in Ukraine by

markets, 2006, % 12. Domestic polyethylene price in Ukraine, СРТ,

Kyiv, UAH, incl. VAT 13. Production of PE films, 2006 14. Production of PE pipes in Ukraine, 2006 15. Production of PE pipes in Ukraine, 2006, % 16. Investments into PE processing in Ukraine, lines 17. Investments into PE processing in Ukraine, USD

mln. 18. Investments into PE processing by sectors, 2006,

%, lines 19. Investments into PE processing by sectors, 2000-

2006, % to price 20. Consumption of PP in Ukraine, KT 21. Consumption of PP in Ukraine by processing

sectors, 2006, %

22. Investments into PP processing, lines 23. Investments into PP processing in Ukraine,

USD mln. 24. Investments into PP processing in Ukraine,

2000-2006, % to price 25. Consumption of PS in Ukraine, KT 26. Consumption of PS and styrene plastics by

markets in Ukraine, 2006, % 27. Consumption of PS by processing sectors,

2006,% 28. Market of refrigerators in Ukraine, 2005, % 29. Investments into PS processing, lines 30. Investments into PS processing, USD mln. 31. Investments into PS processing by sectors

2000-2006, % to price 32. Supplies of PVC to the Ukrainian market, KT 33. Consumption of PVC-E in Ukraine by

markets, 2005,% 34. Consumption of PVC by markets, 2006, KT 35. The structure of import of linoleum to

Ukraine, 2005, % 36. Investments into PVC processing in Ukraine,

lines 37. Investments into PVC processing in Ukraine,

USD mln. 38. Investments into PVC processing by sectors,

2000-2006, % to price 39. Consumption of PET in Ukraine, KT 40. Investments into Pet processing in Ukraine,

lines 41. Investments into PET processing in Ukraine,

USD mln.



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List of Companies

1. ABB 2. AS-STEP 3. Aksoy Plastik Sanayi 4. AkzoNobel 5. Aluplast 6. AMI 7. Ampacet 8. Anwil 9. Aquatherm 10. Ardo 11. Ariston 12. Arkema 13. ATB 14. Audi 15. Auto-Consulting 16. Avon 17. Basell Orlen 18. BASF 19. BBH 20. Borealis 21. BorsdoChem 22. Botheren Machinery Industrial 23. BP Solvay 24. Bruckner Maschinenbau 25. Chemopetrol 26. Chemosvit 27. Chevron Phillips 28. Ciba 29. Cincinnati Extrusion 30. CMAI 31. ColorMAtrix 32. Debant group 33. Debant-Украина 34. Degussa 35. Dioki 36. DMT 37. Dow 38. D-plast 39. DuPont 40. Eco-Plast 41. Ekoplastik 42. Emerson & Renwick 43. Emsa 44. Enerplastics 45. Enichem 46. ES Polymer 47. Estla 48. EVC 49. Evci Plastik 50. Exxon Mobil 51. Ficher & Krecke 52. Foc Tuba 53. Follman & Co 54. Forbo 55. FV-plast 56. Gealan 57. Georgian Glass & Mineral Water

(GG&MW) 58. Gerflor 59. Global Colors 60. Gorenje 61. Hebron 62. Holiday 63. Huhtamaki 64. Hyundai Petrochemicals 65. ICIS LOR 66. Indesit 67. Isuzu Motors 68. Itochu Europe 69. Jacob Composite 70. Kaucuk 71. KBE 72. Kia 73. Klokner Desma 74. Kompen 75. Krauss Maffei 76. Krupp 77. Kumho 78. Larus 79. Lemo Maschinenbau 80. Lentex 81. LG 82. Manuli Film

83. Marburger Tapeton Fabric 84. Mazda 85. MC Donalds 86. Merck 87. Merloni 88. Metalbud Export 89. Mikrosan Ecoline 90. Moeller 91. Mohr Decor International 92. Multibase 93. Nan Rong Mechanical 94. Norsk Hydro 95. Nova Chemicals 96. Novacke chemicke zavody 97. Olbrich 98. Omya 99. Oriflame 100. Ostendorf 101. Oxeno 102. P & G 103. Parker Plastic 104. Pimas 105. Plastic Omnium 106. PlusPlak 107. Plustex 108. Polimer-Chemie 109. Polyflor 110. PolyOne 111. Polysacks 112. Pomatics 113. Profine 114. Radici Film 115. Rehau 116. Renault 117. Resilium 118. Rolson 119. Rompetrol 120. Samsung 121. Saturn 122. Sauressig 123. Sitronics 124. Sky Plastic 125. Slovnaft 126. Snaige 127. Solvay 128. Spolana 129. Stallinger & Co.Cm.b.h 130. Start 131. Stinol 132. Stork 133. Sun Interbrew 134. Tarkett 135. TCL 136. Tecnofilm 137. Thyssen 138. Treofan 139. Troplast 140. TVK 141. Unicor 142. Uniliver 143. Veka 144. Vestolit 145. Vinnolit 146. Volkswagen 147. WBD (Wimm-Bill-Dann) 148. Wella 149. Westpan 150. Winbau 151. Winhause 152. Wiplast 153. Zap Piastow 154. Avacha 155. AvtoZAZ DAEWOO 156. Avtoinveststroy 157. Azovkabel 158. Aquaplast 159. Algeal 160. Aleana 161. Alex Pak 162. Alpha Pak 163. Alphainterplast 164. Alians Krasoty

165. Amalteya 166. Andrex 167. Anphol 168. Armoni 169. ArmTech 170. Aromat 171. Art Metall Furnitura 172. As-Bud 173. Astra 174. Atem Ukraine 175. Atlant 176. Atlantis 177. Atom 178. Attis 179. Bars-2 180. Bag-Land 181. Bericap 182. Biola 183. Biolog 184. Biosistema 185. Biochemplast 186. Block Ltd 187. Bogdan 188. Bonus 189. Brovary Plastics Plant 190. Budmaister 191. Vega-Chem 192. Vector 193. Velta 194. Venta-Ukraine 195. Vesta 196. Vikont-2 197. Victoria 198. Winsdor 199. Vinysin-Ukraine 200. Vintar 201. Vladar 202. VPM 203. Gala 204. Galakton 205. Gevis 206. Gemoplast 207. Herkules 208. Global-Cosmed 209. Gradient-Plast 210. Grat 211. Grin 212. Dak 213. Devali 214. Delta 215. Diphlon 216. Dneproazot 217. Dnepromain 218. Dneproplast 219. Donbasskabel 220. Donplastavtomat 221. Drogobychy

Packaging Plant 222. Eurocar 223. Europlast 224. Eurofacade 225. Zhytomir-Polysacks 226. Zhytomir Chemical

Fiber Plant 227. Plant “Technoplast” 228. Plant “Nadezhda” 229. ZAZ 230. Zaporozhpolymertara 231. Zaporozhye Cable

Plant 232. Zenith 233. Iveria 234. Izoterm-S 235. Izotech 236. Inkopak 237. Inline-Ukraine 238. Instalplast 239. Interagropak 240. Interglast 241. Interplast 242. Iskozhскож 243. Iskra 244. Itak



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245. Kazanorgsyntez 246. Karat 247. Katek-Elektro 248. Caustic Sterlitamak 249. Kakhovka Holding 250. Ceramist 251. Kyiv 252. Kyivgorstroymaterialy 253. Kyiv-Polypack’s 254. Kyiv-Chemvolokno 255. Klaim 256. Kozhobuv 257. Coca-Cola Ukraine 258. Consensus 259. Continent 260. Kontur-Delta 261. Koryukovka Factory of Technical

Papers 262. Krok 263. Krokul 264. Krym 265. Laktalis-Ukraine 266. Lasunka 267. Lenbud 268. Leomi-Original 269. Leader 270. Linoleum Plant “Bolshevik” 271. Linos 272. Luhan 273. Lutsk Cardboard-Ruberoid Plant 274. Lutskplastmass 275. Lvov-Plast 276. Lvov Tobacco Factory 277. Lumo 278. Lust Pak 279. Maxim 280. Marway 281. Market Group 282. Masterbatch-SV 283. Mayak 284. Mega Pak 285. Metalloplastmass 286. Metkabel 287. Metra Ukraine 288. Mida 289. Minlan 290. Mirgorod Mineral Water Plant 291. Morshynsk Mineral Water Plant

“Oscar” 292. Mria-94 293. MSU 294. National Accumulator Corporation

ISTA 295. NBG-Ukraine 296. Nizhnekamskneftechem 297. Nicator-Art 298. Novatel 299. Novaya Bavaria 300. Novy Mir 301. Novy Stil 302. Nord 303. Obltorgservis 304. Obolon 305. Obriy 306. Odesskabel 307. Odessa Finishing Materials Plant 308. Ozom 309. Omsk Plastics Plant 310. Orga-Polymer 311. Orlan 312. Office Mebel Design 313. Padana Chemical Compounds 314. Paks 315. Pannone Plast 316. Pento-Pak 317. Pepsi 318. Brewery on Podol 319. Pirana 320. Plastavtomatik 321. Plast-Box Ukraine 322. Plastic 323. Plastcard 324. Plastco 325. Plastmass-Priluki

326. Plastmodern 327. Plastpipe 328. Polymer-Akatsiya 329. Polymeragro 330. Polymercontainer 331. Polymer-Trading 332. Polymercenter 333. Polymir 334. Polypak 335. Polyplast + 336. Polyterm 337. Polo-Electrotehnika 338. Prestige 339. Priluki 340. Printex 341. Prominvest 342. Promkabel 343. Propet 344. Reemtsma-Kyiv 345. Rezonans 346. Rainford 347. Ritm 348. Rodos 349. Rozma 350. Rozum 351. Rosan-Pak 352. RosEuroPlast 353. Rosinka 354. Roshen 355. S and T Ukraine 356. Sada 357. Salavatnefteorgsyntez 358. Sanok 359. Sayanskchemplast 360. SDT 361. Sever-Trade 362. Simferopol Plastics Plant 363. Syntra 364. SK Johnson 365. Slavyansk Plant “Torelast” 366. Sobraniye 367. Solygran 368. Solix 369. Sonant 370. Softsvit 371. Spetstekhosnastka 372. Stavrolen 373. Stynol 374. Styrol 375. Styrol-Pak 376. Stroitel 377. Stroitelniye Materialy 378. Sumy Rubber Mechanical Goods

Plant 379. Tandem 380. Terichem-Lutsk 381. Ternopol Imitation Leather Plant

“Vinytex” 382. Terplast 383. Technokom 384. Tech-Plast 385. TNKhZ 386. Top-Credo 387. Tumen 388. Turkmen Refinery 389. Ukr Bat 390. Ukrainskiye Dzherela 391. Ukrainian Mineral Waters 392. Ukrkabel 393. Ukrpak 394. Ukrplast 395. Ukrplastik (Kyiv) 396. Ukrplastik (Obuhov) 397. Ukrplastik ХХІ 398. Ukrpolymerkonstruktsiya 399. Ukrpromvneshekspertiza 400. Ukrprominvest 401. Ukrpromsoyuz 402. Ukrtechnoplast 403. Upak 404. Philippe Morris Ukraine 405. Fisher-Mukachevo 406. Foberplast

407. Fort-Plast 408. Forum 409. Kharkiv Brewery

“Rogan” 410. Kharkiv-Chemprom 411. Hekro 412. Hekro-PET 413. Chemosvit 414. Henkel-Uzhgorod 415. Chemical Association

named after G.I. Petrovskogo

416. Cehmplast 417. Chemprom 418. Chernigovkabel 419. Chernogov Chemical

Fiber 420. Shurtanskiy Gas-

Cehmical Plant 421. Evikem 422. Edem 423. Ecoplast 424. Elektromax 425. Elektrometriya 426. Elektron 427. Elektrotel 428. Elisium-Plast 429. Elplast-Lviv 430. Elpha 431. Energoprom 432. Ergopak 433. Erlan 434. Yuzhkabel 435. Uniplast 436. Usi


1. GENERAL STATE OF THE UKRAINIAN POLYMER MARKET

The Ukrainian polymer market is still one of the fastest growing markets in

the world. The average annual growth of consumption of large-capacity polymers

in Ukraine has made up 24.6% for the recent seven years. For reference, the

average annual growth of base polymers in the world constituted 4.4% during the

same period.

According to the data of the State Statistics Committee of Ukraine, the

annual growth of the GDP reached up the level of 5% during the last seven years.

Therefore, it is possible to state that the overall consumption of base polymers is

growing almost five times quicker than the official economy on the whole.

Source: MRC

The overall consumption of five large-capacity thermoplastics (PE, PP, PVC,

PS and PET) exceeded the level of 756 KT, according to the results of 2006. It

should be noted that that index was equal only to 204 KT in 2000; in other words

the Ukrainian market increased by almost four times during six years (see D.1.1).

Table 1.1. Consumption of base polymers in Ukraine, 2000-2006, MT

Index 2000 2001 2002 2003 2004 2005 2006

Import 178 727 238 135 321 044 421 702 506 436 624 363 715 619

Growth, % - 33% 35% 31% 20% 23% 15%

Production 73 812 138 948 174 195 198 071 218 702 213 938 228 838

Growth, % - 88% 25% 14% 10% -2% 7%

Export 47 901 105 602 150 559 168 467 163 768 157 774 187 978

Growth, % - 120% 43% 12% -3% -4% 19%

Consumption 204 638 271 481 344 680 451 306 561 370 680 527 756 479 Growth, % - 33% 27% 31% 24% 21% 11%

Import to consumption, %

87% 88% 93% 93% 90% 92% 95%

Export to production, % 65% 76% 86% 85% 75% 74% 82%

Source: MRC


…

D.1.1. Consumption of base polymers in Ukraine, KT

0

200

400

600

800

2000 2001 2002 2003 2004 2005 2006

P E PP P S PV C PET

The volume of the Ukrainian polymer

market exceeded the level of 756 KT in 2006.

Please, see the full version of the Review



11

One of the peculiarities of the Ukrainian polymer market is the dependence

of processors on import supplies of base polymers. The share of import in the

overall consumption constituted 95% in 2006. At the same time, volumes of

import supplies are growing even quicker than the consumption in general. The

average annual growth of import of polymers made up 26.2% within the recent

seven years.

Happily, the domestic production demonstrates positive development

figures as well. In 2006, the output of Ukrainian polymer manufacturers was 3.1

times higher than in 2000. The average annual growth of the domestic production

constituted 23.8% during the past seven years.

Generally, polymer production capacities in Ukraine made up almost 300 KT

in 2006 (including PE -108 KT, PP – 100 KT, PS - 50 KT, PVC – 50 KT, there is no

PET production). However, the existing production is oriented towards only a

narrow range of polymers (PE – only one brand, PP – three brands, PS – three

brands, PVC – two brands), which is acceptable only for export shipments. Thus,

the general level of export with respect to the domestic output made up in average

about 80% during the past seven years. If in 2000 65% of the output were

exported, then that figure made up already 82% in 2006. The average annual

growth of export shipments constituted 31.3% within the recent seven years.

There are four enterprises manufacturing polymers in Ukraine:

Karpatneftechem, Kalush (Lukoil-Neftechem Group) – production of low-pressure

polyethylene; Linos, Lisichansk (TNK-BP Group) – polypropylene production;

Concern Styrol, Horlovka – production of general-purpose polystyrene, impact and

expanded polystyrene; State Enterprise Chemprom, Pervomayskiy – production of

suspension PVC.

According to the analysts of MRC, the expansion of the consumer market

and the increasing construction volumes were the main driving force in the

Ukrainian polymer market within the recent seven years.

Today, consumer expenditures of Ukrainians are growing quicker than in

any other country of Eastern Europe. Only in 2006, that growth made up 16% in

Ukraine, comparing with 4% in the countries of Eastern Europe.

According to the official statistics, there is practically no growth of

construction in Ukraine; and in terms of per capita construction Ukraine is far

behind of not only East-European countries but it is also aback of Russia and

Belarus (only 0.2 m² per one resident against 3.6 m² in Poland and 0.4 m² in

Russia). However, all experts note serious positive growth in volumes of repair

works carried out at the existing real estate objects in Ukraine. Today, Ukrainians

actively invest into changing interiors of their own apartments and public buildings.

If we have a look at the growth dynamics by individual polymer processing

sectors, we will see that products connected with the market of construction and

repair works demonstrate the highest growth rates today: profile goods made of

PVC (the average annual growth made up 69% within the recent seven years),

HDPE pipes (43%), EPS plates (44%).

The overall polymer production capacity

constitutes 300 KT in Ukraine



12

Having gone through the rapid upsurge, the Ukrainian polymer market is

gradually slowing down. The growth dynamics in terms of polymer consumption

have been decreasing since 2004: thus, in 2006, the overall market increased only

by 11%, comparing with 2005.

Certainly, the decreasing growth of the Ukrainian polymer market was

affected by the overall deceleration observed in the Ukrainian economy during

2005-2006. However, the slowing-down in the Ukrainian polymer market,

according to experts, is connected with two more solid reasons. The objective

reason is the saturation of the market, particularly in some sectors. The subjective

reason is the scantiness of raw materials required to produce finished goods that

emerged in 2006.

Perhaps, the most important factor of the evident slowing-down in the

Ukrainian polymer market observed in 2006 was the saturation with finished goods

manufactured inside of the country. The resource available before 2006 in terms of

import replacement of finished goods is constantly decreasing: if in 2000,

according to the data of MRC, the share of import in the overall consumption of

polymer goods constituted 34.7%, then in 2006 it made up only 21.6%.

Moreover, by 2006, Ukrainian processors had faced a new problem

connected with the shortage of polymer raw materials. That was especially typical

of the polyethylene and polypropylene markets. Thus, if in 2005 the Ukrainian

polyethylene market increased by 20%, then in 2006 the growth constituted only

7%. In the third quarter there emerged an acute crisis in supplies of pipe and

injection molding polyethylene brands, as well as in supplies of suspension PVC.

The decrease in consumption growth rates in Ukraine in 2006 happened

against the background of the upsurge in the Russian polymer market (its growth

exceeded 50% in some segments). Though, the situation was absolutely opposite

during the last seven years: the Ukrainian market was outstripping the Russian

one in average by 1.5-2 times in terms of growth dynamics.

Strangely enough, but the active growth of the polymer consumption in

Russia was one of the reasons of the slowdown in the Ukrainian market, since the

lack of raw materials in Russia abruptly limited the export of Russian polymers to

Ukraine. Thus, in the second half of 2006 there were three sudden cuts in supplies

from Russia: in June, August and September. If in 2000, according to the

assessments made by the analysts of MRC, the share of import of polymers from

Russia constituted 37%, then in 2006 it already made up only 12%.

…

The growth of the Russian polymer market

was for the first time higher than that in

Ukraine in 2006



13

…

European and Asian manufacturers did not manage to respond timely to the

lack of polymers occurred in 2006. The increasing number of concluded contracts

was recorded only at the end of 2006, and, probably, according to the results of

2007, we will observe resuming dynamics in terms of polymer consumption in

Ukraine.

In spite of the decreasing growth rates in the Ukrainian market, we can

definitely speak about its high potential for further development. Even comparing

with the countries of Eastern Europe, Ukraine is still far aback in terms of per

capita consumption of base polymers. Thus, according to the assessments of MRC,

an average statistical Ukrainian consumed only 16 kg of base polymers in 2006,

whereas an average statistical citizen in Eastern Europe consumed 80 kg.

Certainly, the rate of consumption of finished polymer goods in Ukraine will be

constantly increasing, and the gap between Ukraine and the East-European

countries will be gradually shortening.

The preparation of Ukraine to host the European Football Championship in

2012 will become a powerful spur to further growth of the polymer business,

particularly, to the sectors dealing with construction. Investments into general

infrastructure will have made up about USD 25 billion by that time.

The difference in growth rates in some polymer processing sectors has a

definite effect on the difference in the growth dynamics of consumption of certain

types of base polymers. The annual growth of the Ukrainian polyethylene market

constituted 22% during the recent seven years, i.e. by 3% lower than the overall

polymer market on the whole. The similar showings for polypropylene and

polystyrene markets made up 21% and 24%, correspondingly. The PVC and PET

markets develop much faster: according to the results of 2000-2006, their average

annual growth rates constituted 30% and 31%.

The slowing-down in consumption of polymers in 2006 concerned, first of

all, the markets of polypropylene (the growth made up 4% comparing with 2005)

and polyethylene (the growth constituted 7%) – see Table 1.2.

The growth of PVC consumption decreased by more than 2.5 times in 2006,

comparing with 2005. However, significant investments made into PVC processing

during 2005-2006 (see below) give hopes to further growth in this market in

average by 15% within the nearest three-five years.

The polystyrene market increased by more than 15% in 2006. The growth

of expanded polystyrene consumption became the main factor in the growth of the

polystyrene market. Its consumption increased by 51% in 2006.

Investments into preparation for the European Football

Championship will make up about USD 25 billion

by 2012



14

Table 1.3. Production of some polymer goods in Ukraine, MT

Product Unit of

measure 2004 2005 2006

Polymer films MT 117 018 130 792 151 295

PP films MT 15 303 16 728 19 481

Polymer pipes MT 24 579 34 356 41 840

Polypropylene fiber MT 11 879 13 788 14 028

Flooring thous. m² 4 750 5 231 9 285

Disposable ware MT 4 787 5 180 6 644

Thermoformed containers MT 9 359 9 634 11 598

Household laundry washer pcs. 345 121 321 632 -

TV-sets pcs. 439 639 617 161 -

Household vacuum cleaners pcs. 53 336 37 456 -

Wallpapers MT 76 542 83 723 84 613

Linoleum MT 7 929 8 651 8 646

Footwear thous. pairs

34 435 35 373 -

Source: State Statistics Committee of Ukraine, MRC

Generally, in Ukraine, the share of imported finished goods in the overall

consumption constituted 21.6% in 2006 (Table 1.4). Theoretically, it is possible to

speak about the resource for the domestic production in the volume of almost 180

KT a year, which is available for Ukrainian manufacturers today, in case of

replacement of imported finished goods.

Table 1.4. Consumption of finished polymer goods* in Ukraine, 2006, MT

Product Consumption Share,

% Domestic

Production Import Export Import to

Consumption, % Export to

Production,%

Polyethylene 320 036 39% 288 535 39 465 7 964 12,3% 2,8%

Polypropylene 125 762 15% 93 326 34 547 2 111 27,5% 2,3%

Polystyrene 69 237 8% 62 230 9 383 2 376 13,6% 3,8%

PVC 177 871 21% 109 140 95 329** 26 598** 53,6% 24,4%

PET 137 408 17% 170 273 559** 33 424** 0,4% 19,6%

Total 830 314 100% 723 504 179 283 72 473 21,6% 10,0%

* taking into account conversion into net weight of polymer ** in 2005 Source: MRC

The share of import is extremely high in the markets of goods made of PVC

(53.6% to the overall consumption of finished goods) and PP (27.5%). The overall

import of finished goods made of PVC and PP to Ukraine makes up almost 130 KT,

today. Evidently, increasing volumes of Ukrainian processing shall be expected

exactly in these markets in the nearest future.

A good beginning in terms of import replacement can be observed in such

sectors as production of profile goods (the import exceeded 83.7 KT in 2005), PVC





15

films (10 KT), PP pipes and fittings (7.7 KT), as well as cable and wire products

(31 KT) – Table 1.5.

Table 1.5. Import of some polymer goods to Ukraine, MT

Изделия 2003 2004 2005

PE films 4 054 5 230 15 752

PVC profile-molded goods*

22 894 43 563 83 704

PVC films 8 120 9 200 10 059

PP films 10 573 8 670 18 400

PP pipes and fittings 1 082 2 455 7 684

PE pipes 3 102 5 740 6 069

Vinyl wallpapers 4 563 4 980 8 558

Cable products 23 996 23 909 31 217

Source: MRC

According to the analysts of MRC, Ukraine has a good chance not only to

replace the import of finished polymer goods, but to develop own export supplies

as well.

For that, it is necessary to use experience of other countries, first of all, of

China, Taiwan and Turkey, which without significant stocks of their own polymers

have managed to become leaders in terms of export of finished goods made of

them. Similarly to China, which is the biggest world “workshop”, creation of a

“workshop” of finished goods for the CIS countries and Eastern Europe can become

the best strategy for the development of the Ukrainian polymer business.

Two sectors can be marked out as the best example in the context of this

strategy: production of PET preforms and vinyl wallpapers. Thus, Ukrainian

preform manufacturers export 19.6% of produced goods (or 33.4 KT – see Table

1.4), while manufacturers of vinyl wallpapers export more than 55% of their

output.

At present, the export of finished goods demonstrates significant volumes in

some certain sectors such as production of vinyl wallpapers, PET preforms and

cable compound – Table 1.6.




16

Table 1.6. Export of some polymer goods from Ukraine, MT

Product 2003 2004 2005

Vinyl wallpapers 33 958 42 719 46 461

PET preforms 12 016 20 890 33 424

Cable compound 7 910 9 214 15 059

PE films 3 680 3 900 3 436

PE pipes 782 1 110 1 900

PVC films 150 650 989

PP films 119 180 394

Source: MRC

One of the scenarios to implement the aforementioned strategy will be the

attraction of production of finished goods from European countries to Ukraine. The

most attractive in this context are the automobile and instrument-making

industries, as well as the electrical industry. Meanwhile, there are a few examples

of such production units like Kopos (the Czech Republic), Polo (Poland), Lemo

(Germany), etc.

Today, Ukrainian manufacturers export only 10% of their overall output

(72.47 KT). The overall net import of finished goods in Ukraine constituted 106.8

KT in 2006.

It should be noted that the current high polymer consumption growth rates

clearly correlate with overall investments made by Ukrainian processors. According

to the assessments of MRC, Ukrainian processors invested more than USD 544

mln. into equipment to produce plastic and rubber goods, within the recent seven

years (D.1.4).

…

The average annual growth of investments into polymer processing

equipment in Ukraine made up 24% within the recent seven years. The most

outstanding in view of investments were 2005 and 2006. The overall level of

investments into polymer and rubber business reached its historical maximum –

USD 153.5 mln. – in 2006 – Table 1.7.




17

…

The overall rating of top thirty suppliers of equipment to the Ukrainian

polymer market is presented in Table 1.10, below.

Table 1.10. Delivery of base polymer processing equipment, lines

№ Supplier /Country 2000 2001 2002 2003 2004 2005 2006 Всего

1 Jandis Industrial/Taiwan 21 8 23 10 36 22 22 142

2 Husky/Canada 14 12 7 9 6 14 11 73

3 Zhejiang Jinhai Plastic Machinery/China - - - 2 7 16 22 47

4 Krauss Maffei/Germany 1 - 4 9 13 9 11 47

5 LGH/S. Korea - - 1 4 10 21 8 44

6 Kuasy/Germany 3 3 1 19 11 3 - 40

7 Xinhing Twin Screw Machinery/China - - - - 7 14 18 39

8 Adolf Illig/Germany 5 7 13 7 3 3 1 39

9 Klockner Ferromatic Desma/Germany - 1 2 2 6 13 11 35

10 Demag/Germany - 2 2 4 5 8 12 33

11 Ningbo Haitan/China - - - 1 9 22 32

12 Cincinnati/Austria - - - 4 16 6 2 28

13 Sipa/Italy 5 3 7 2 2 4 2 25

14 Battenfeld/Austria 1 - 3 1 4 4 9 22

15 Engel/Austria 6 - - 6 1 1 8 22

16 Jon Wai Machinery/Taiwan - - 2 2 6 1 9 20

17 Ningbo Shuangma Machinery/China - - - - - 7 11 18

18 Technoplast/Austria - - - - 6 4 7 17

19 Sidel/France - 5 4 6 - - 1 16

20 Weber/Germany - - - 1 4 9 1 15

21 Krupp/Germany 1 3 1 3 4 3 15

22 Queens Machinery/Taiwan 3 - 1 3 4 2 1 14

23 Kang Chyau Industry/Taiwan - - - 3 - 3 8 14

24 Chui Yang Industrial/China 3 3 1 3 2 - 2 14

25 Kung Hsuing Machinery/Taiwan - - - 1 2 5 5 13

26 Metalchem/Poland - 1 2 2 3 4 - 12

27 SIG Corpoplast/Germany - - - 2 1 5 3 11

28 Arburg/Germany - - 2 1 3 2 3 11

29 Sacmi/Italy 2 - - 1 1 2 4 10

30 Krones/Germany 1 - 1 4 - - 4 10

Total by 30 suppliers 66 48 77 109 162 195 221 878

Source: MRC

Own production of equipment in Ukraine is represented by 12 enterprises.

They include: “DAK” Ltd. (Donetsk), OJSC “Termoplastavtomat” (Khmelnitskiy),

“Polymash” Ltd. (Chernigov), etc. - Table 1.11.




18

2. POLYETHYLENE MARKET

The overall polyethylene consumption in Ukraine constituted 288.5 KT in

2006. According to the results of the year, the market increased by 7%. The share

of polyethylene in the market structure of base polymers is the most significant; it

made up 38% in 2006. The annual polyethylene consumption was growing in

average by 22% during the recent seven years. However, according to experts,

commencing 2007 this showing will be decreasing down to 7-10% a year. This has

been caused by the saturation of the market with domestic products made of

polyethylene, particularly in the consumer sector: production of films, boxes, caps,

etc.

Today, the Ukrainian polyethylene market is following the trends observed

in the market of Western Europe, where LDPE is being replaced with other types of

polyethylene. Thus, the share of LDPE in the Ukrainian market reduced from 61%

in 2000 down to 38% in 2006, whereas the share of LLDPE during the same

period, on the contrary, increased from 1% up to 12%. The share of HDPE

increased from 37% up to 49% during the last seven years. At present, HDPE is

forcing LDPE out of the sector of retail bags (Lukoil film brands are well presented

in this sector), LLDPE is replacing LDPE in the sector of multi-layer films (the

leaders there are such LLDPE suppliers as Shurtanskiy Gas-Cehmical Plant, Dow

and Exxon Mobil) - Table 2.2.

Table 2.2. Consumption of polyethylene in Ukraine, MT

Type 2000 2001 2002 2003 2004 2005 2006

LDPE 54 388 79 069 84 016 98 929 98 432 111 608 109 107

Growth, % - 45% 6% 18% -1% 13% -2%

HDPE 32 952 40 826 51 190 80 548 109 715 130 601 141 768

Growth, % - 24% 25% 57% 36% 19% 9%

LLDPE 884 1 981 2 243 5 278 13 130 22 143 33 218

Growth, % - 124% 13% 135% 149% 69% 50%

EVA 194 258 474 727 789 1 039 1 174

Growth, % - 33% 83% 53% 9% 32% 13%

copolymers 55 272 481 716 690 1 222 703

Growth, % - 392% 77% 49% -4% 77% -42%

other 835 907 894 1 186 1 522 2 049 2 564

Total 89 308 123 313 139 299 187 383 224 279 268 662 288 535

Growth, % - 38% 13% 35% 20% 20% 7%

Source: MRC

The average annual growth of the LDPE market made up 13% within the

recent seven years. That showing was negative (minus 2%) in 2006. We expect

that the Ukrainian LDPE market will keep on staying in the zero growth zone, since

the overall offer of LDPE from the side of manufacturers from the CIS countries

and Eastern Europe will be extremely limited.




19

The analysis of the dynamics of polyethylene consumption in the context of

its processing sectors indicates that the overall market growth is ensured mainly

by the sector of films (the average annual growth of the sector made up 25%

within the recent seven years) and by the sector of pipes (the average annual

growth constituted 43%). The EBM sector was growing by 22% during the same

period, and the sector of injection molding by 16%. The sector of cable extrusion

demonstrated lower growth dynamics – 9% a year.

The overall output of polyethylene pipes constituted 37.7 KT in 2006. The

growth of the PE film market made up 16% in 2006, and the overall consumption

exceeded 151 KT in 2006. The EBM sector will consume more than 33 KT of

polyethylene by 2007 (Table 2.3, 2.4).

Table 2.3. Consumption of polyethylene in Ukraine by markets, 2000-2006, MT

Technology 2000 2001 2002 2003 2004 2005 2006

films 40 360 58 987 71 342 95 042 117 018 130 792 151 295

Growth, % - 46% 21% 33% 23% 12% 16%

EBM 11 493 13 558 11 604 19 609 23 420 31 852 32 414

Growth, % - 18% -14% 69% 19% 36% 2%

injection molding

10 321 14 531 16 528 17 804 19 844 26 510 23 466

Growth, % - 41% 14% 8% 11% 34% -12%

coating 8 020 11 384 14 570 18 796 21 759 27 253 26 154

Growth, % - 42% 28% 29% 16% 25% -4%

pipes 4 686 6 591 9 211 16 147 22 944 30 453 37 686

Growth, % - 41% 40% 75% 42% 33% 24%

cable 9 844 11 670 11 794 11 983 13 269 15 770 15 880

Growth, % - 19% 1% 2% 11% 19% 1%

other 4 583 6 592 4 251 8 001 6 025 6 032 1 640

Total 89 308 123 313 139 299 187 383 224 279 268 662 288 535

Growth, % - 38% 13% 35% 20% 20% 7%

Source: MRC

The consumption of PE injection molding brands significantly decreased in

2006 (minus 12%). The reason of the abrupt reduction in sales of injection

molding polyethylene was connected with a sudden decrease in HDPE supplies

from Russia (first of all, HDPE shipments from Kazanorgsyntez). This enterprise is

implementing a scaled reconstruction program; therefore, a part of HDPE

production capacities was suspended during 2006.




20

А. Films

The production of films remains the biggest sector in the polyethylene

processing in Ukraine. According to the results of 2006, the overall consumption of

polyethylene films constituted 162 KT (see Picture 2.2). At the same time, the

share of domestic films verged towards the level of 92%. The share of import

made up 8%, correspondingly. Ukraine imports only those types of films that

cannot be produced today by domestic processors (these are, first of all, multi-

layer films). Export opportunities of Ukrainian manufacturers are insignificant, yet:

according to the results of 2006, less than 3% of the overall film output were

exported.

Picture 2.2. Capacity of the Ukrainian film market in 2006, KT

Source: MRC

The Ukrainian production of polyethylene films demonstrates positive

growth dynamics, its level increased by 16% in 2006, comparing with 2005 - Table

2.5.

Import

14 860

Export

4 120

Domestic Production

151 295

Market Capacity

162 035



21

…

Table 2.6. Production of films in Ukraine, 2006

№ Company Weight,

MT

Share, %

1 Hekro-PET 16 016 10,6%

2 Ukrplastic 14 691 9,7%

3 Plastmodern 10 541 7,0%

4 Torelast 6 043 4,0%

5 Terichem-Lutsk 4 076 2,7%

6 VPM 3 779 2,5%

7 Klaim 3 438 2,3%

8 Maxim 3 235 2,1%

9 KPD 2 892 1,9%

10 Polysyntez 2 870 1,9%

11 Snabresurs 2 442 1,6%

12 Mria-94 2 049 1,4%

13 Polymeragro 1 919 1,3%

14 Leomi 1 669 1,1%

15 Azot, Severodonetsk 1 568 1,0%

16 Krymplast 1 563 1,0%

17 Polymer, Kharkiv 1 489 1,0%

18 Lutskchem 1 380 0,9%

19 Metaloplastmass 1 273 0,8%

20 Kyivpolygraphmash 1 160 0,8%

Other 67 202 44,4%

Total 151 295 100%

Source: State Statistics Committee of Ukraine

The share of the top twenty manufacturers constitutes only 56% of the

overall film output. The rest of the producers (there are about 160 producers,

according to our assessments) provide the remaining 44% of the output.

Hekro-PET (Khmelnitskiy) became the leader in terms of film production in

2006. Today, Hekro-PET is one of the biggest manufacturers of pallet stretch film

in the CIS.

It is followed by Ukrplastic. Today, Ukrplastic is the flagship of the Ukrainian

polymer processing. The enterprise is equipped with the most modern equipment

(Bruckner, Macro, Brampton), and specializes in production of complicated multi-

layer films. At present, Ukrplastic is able to produce 3-, 5- and even 9-layer films.

The segment engaged in production of bags and sacks is a separate

important segment in the overall structure of film production. According to the

data of the State Statistics Committee, that sector used more than 21% of

produced polyethylene film in 2006. Among other big manufacturers of

polyethylene bags we can mark out Donplastavtomat (bags with flexographic

printing), Maxim (retail bags), and KPD (garbage bags).

Ukrplastic is the leader in production of multi-layer

films




22

…

Table 2.22. Import of PE processing lines by suppliers, pcs.

№ Suppliers 2000 2001 2002 2003 2004 2005 2006

1 Jandis Industrial/Taiwan 21 8 23 8 36 22 20

2 Queens Machinery/Taiwan 3 - 1 3 4 2 1

3 Kang Chyau Industry/Taiwan - - - 3 3 8

4 Chui Yang Industrial/China 3 3 1 3 2 - 2

5 Kung Hsuing Plastic Machinery/Taiwan - - - 1 2 5 5

6 Blasautomat/Bulgaria 2 4 2 2 1

7 Husky/Canada 1 2 3 2 2 -

8 Zhejiang Jinhai Plastic Machinery/China - - - - - 1 8

9 Dragon Plastic Mashinery/Taiwan - - - - - 3 6

10 Krupp/Germany 2 1 - - 4 1

11 Cincinnati/Austria - - - 2 1 4 1

12 Ningbo Haitan/China - - - 7

13 Krauss Maffei/Germany - - - 1 3 1 1

14 Chodos Chodov/Czech Rep. 3 1 1 - - 1

15 Chang Han Ink/S. Korea 2 4 - - -

16 Parker Plastic Machinery/Taiwan - - - - 3 2 -

17 K.H.P.M.Co/Taiwan - - - - - 3 2

18 Battenfeld/Austria - - - - - 2 3

19 Yekenciler Maсina/Turkey - 2 - - 2

20 Bekum/Germany - 1 2 1 -

21 Urola/Spain - - - 3 - - -

22 Reifenhauser/Germany - - 1 2 - - -

Total by top 22 suppliers 35 19 35 32 56 58 67

Source: MRC

In value terms, the biggest investments were recorded in the sector of pipe

production (owing to investments made by Rubezhanskiy Pipe Plant, Nikopol

Plastic Pipe Plant, Elplast-Lviv, Plastpipe, Ukrpolymerkonstruktsiya and

Installplast-XB). Among other interesting investment projects in 2006 we would

like to mark out the following ones: the launch of the production of PEX and РEX-

Al-PEX pipes at Rozma/Chernovtsy (a Luigi Bandera line), as well as the production

of composite pipes by Elplast-Lviv (a Cincinnati Extrusion line).

Among big investments into polyethylene film processing in 2006 we would

like to mark out the launch of Polymer Materials Plant “Soyuz” (the monthly output

capacity of durable covering materials for the hothouse market constitutes 300 MT),

as well as the expansion of retail film production capacities (Ukrainskiye Dzherela,

Ergopak). Hekro-PET (Khmelnitskiy) launched two modern Battenfield lines to

produce 3-meter wide 5-layer stretch film in 2006. Plastmodern launched a

Reifenhauser extruder to produce multi-layer films as well.




23

3. POLYPROPYLENE MARKET

…

С. Injection Molding

The market of molded goods is the second one in the general structure of

polypropylene consumption. It increased by almost 17% and constituted more

than 28 KT in 2006. The market of injection molding includes a number of large

sectors: production of furniture, caps for PET packaging, accumulators and

packaging.

Processors from these sectors demonstrated high growth rates. Furniture

manufacturers increased consumption of PP by 16%, packaging – by 13%, caps

for PET packaging – by 24% (Table 3.10).

Table 3.10. Consumption of polypropylene by sectors of injection molding, MT

Market 2000 2001 2002 2003 2004 2005 2006

Accumulators 1 486 1 716 1 869 2 457 2 653 2 850 3 284

Growth, % - 15% 9% 31% 8% 7% 15%

Furniture 121 648 1 212 1 829 2 686 3 587 4 174

Growth, % - 436% 87% 51% 47% 34% 16%

Caps for PET 789 830 804 1 452 1 243 2 760 3 426

Growth, % - 5% -3% 81% -14% 122% 24%

Auto 490 1 041 752 1 369 1 936 1 375 2 100

Growth, % - 112% -28% 82% 41% -29% 53%

Packaging 809 1 017 1 508 1 936 3 054 4 041 4 549

Growth, % - 26% 48% 28% 58% 32% 13%

Other 1 888 2 373 3 518 4 516 7 126 9 430 10 614

Total 5 583 7 625 9 662 13 559 18 698 24 043 28 147

Source: MRC

We expect further growth of sales in the sector of molded goods in 2007.

This is explained by investments into PP processing equipment in the market of

molded goods. The biggest investments into injection molding during 2005-2006

were made by Atem-Ukraine, Spetstekhosnastka, Aleana, Vikont-2, Novy Stil,

Vesta and Plast-Box Ukraine.

Today, the group of the leading players in the sector of furniture includes

three enterprises: Novy Stil, Aleana and Art Metall Furnitura. These companies use

thermoplastic automatic machines for large-size molding (Aleana operates Korean

machines LGH, while Novy Stil and Art Metall Furnitura work on JW equipment

from Taiwan).

The consumption of polypropylene by the production of caps for PET

packaging increased by almost 4 times during 2000-2006. Atem (Kyiv) is the only

manufacturer of PP caps for PET-packaging in Ukraine. In 2006, Atem purchased

two additional lines Netstal-Maschinen and Sacmi.


The PP consumption in the sector of

injection molding increased by 17% in

2006



24

The National Accumulator Corporation “Ista” is the leading market player

among other Ukrainian manufacturers of accumulators. Today, “Ista”

manufactures three types of lead-acid accumulators (the annual output capacity is

3.5 mln. accumulators). The output of lead accumulators exceeded the level of 1.7

mln. MT at this enterprise in 2006 (Table 3.11).

Table 3.11. Production of lead accumulators in Ukraine, pcs.

№ Company 2004 2005 2006

1 Ista /Energoavtomatika 1 676 151 1 700 662 1 703 068

2 Vesta-Dnepr 54 541 162 826 391

3 Metra 76 588 103 700 81 100

4 Sada 172 691 91 605 50 482

5 Astra 33 135 53 276 50 440

6 Vladar 30 578 28 796 20 557

Total by Ukraine 2 066 443 2 589 532 2 822 371


The second player today is the international scientific and production

corporation “Vesta”. It was founded on the basis of “Ista” in 2002. The corporation

includes three plants: two plants manufacture lead-acid accumulators and one

plant processes used accumulators, lead waste and scrap into lead alloys and lead.

In December 2004, they launched a new plant CJSC “VESTA-Dnepr” in

Dnepropetrovsk to produce hermetic unmanned starter batteries, which do not

require maintenance, with the annual output 3 mln. pieces of conditional batteries.

At present, “Vesta” has started the second implementation stage of the project,

which is the organization of production of hermetic unattended traction and fixed

industrial batteries with the annual output 1.3 mln. pieces of 300 A/hour medium

elements.

The CJSC Accumulator Plant SADA was founded in 1998 in Kherson. This is

a joint Ukrainian-Polish enterprise; one of its founders is one of the oldest

European accumulator plant ZAP Piastow (Poland), products of which meet

international standards and are sold in countries of Eastern and Western Europe,

the Baltic countries and Russia. Today, Sada specializes in production of starter

lead-acid accumulator batteries.

The Accumulator Plant “Vladar” (Kharkiv) manufactures lead-acid

accumulators and accumulator batteries.

The Consortium “Ukr Bat” (Trade House Luhansk Accumulators) is one of

the investment and production areas of activities of the Corporation “Astron-

Ukraine”.

The closed joint-stock company “Metra” is a manufacturer and an exclusive

distributor of starter accumulator batteries of famous trademarks such as “Inci

Aku”, “Hugel”.

The output capacities of enterprises

manufacturing accumulators exceed the

level of 10 mln. pieces



25

…

The general rating of top 20 suppliers of equipment is presented in Table

3.20.

Table 3.20. Supplies of complete PP processing lines by suppliers, pcs.

№ Supplier 2000 2001 2002 2003 2004 2005 2006

1 LGH/S. Korea - - - 2 8 14 6

2 Demag/Germany - - - 4 2 7 6

3 Jon Wai Machinery/Taiwan - - - 2 6 - 5

4 Ningbo Shuangma Machinery/China - - - - - - 11

5 Klockner Ferromatic Desma/Germany - 1 - 1 - 5 4

6 Hexagon Imexindo PT/China - - - 6 2 1 -

7 Ponar/Poland 7 - - 1 - - -

8 Sacmi/Italy 2 - - - - 2 3

9 Winsdor/Germany - - 3 - 3 - -

10 Union Crystal/Taiwan - - - - 2 4 -

11 Engel/Austria - - - 5 - - 1

12 Botheven Machinery Industrial /Taiwan 1 - 2 2 - 1 -

13 Netstal/Sqitzerland - - - - - 5

14 Kuasy/Germany - 2 - 1 2 - -

15 EBT-SYSMAC/Taiwan - - - - - 5 -

16 Zhejiang Jinhai Plastic Machinery/China - - - - - 1 3

17 Starlinger/Austria - 4 - - - -

18 Arburg/Germany - - - - - 1 3

19 Guangzhou Borch/China - - - - - - 4

20 Battenfeld/Austria - - 1 - 2 -

Total by 20 suppliers 10 3 10 24 27 41 51

Source: MRC



4. POLYSTYRENE AND STYRENE PLASTICS MARKET

…

The consumption of polystyrene and styrene copolymers in Ukraine

increased by 15% and constituted about 62 KT in 2006 (D.4.1). The average

annual growth verged towards the level of 24% during 2000-2006.

Source: MRC

Concern Stirol (Horlovka) is the only Ukrainian manufacturer of polystyrene

(HIPS, GPPS, EPS). Its annual capacity constitutes about 50 KT. It should be

noted that the work of this enterprise is not always predictable. The Concern does

not have its own production of styrene monomer; therefore, it has to buy it at the

prices of the world market (first of all, from such Russian suppliers as

Nizhnekamskneftechem and Salavatnefteorgsyntez). After the abrupt decrease of

the output in 2002, Stirol resumed its PS supplies, and starting from 2003, the

average annual growth dynamics of the production constituted 60%. The share of

Stirol in the domestic market increased up to 32% in 2006, comparing with 2005.

In its own production Stirol orients towards the production of expanded

polystyrene (EPS-S brand): its share in the overall PS production makes up

almost 90%. EPS-S is used in the production of EPS plates by Stirol-Pak, which is

the daughter company of the Concern.

Due to the production of this brand, the share of export supplies of the

Concern is gradually decreasing. If in 2000 it exported 68% of the PS output,

then at the beginning of 2006 the export made up only 41%. The average annual

growth of export has made up only 1% for the recent seven years.

The import is on the contrary constantly growing. The average annual

growth constituted 33% during that period. Today, the share of import in the

overall PS consumption constitutes 68%, whereas at the end of 2000 that figure

equaled to 47%.

© www.mrcplast.ru

The estimated consumption of

polystyrene and styrene plastics increased by 15%

in 2006

D. 4.1. Consumption of polystyrene in Ukraine, KT

0

32

64

2000 2001 2002 2003 2004 2005 2006

The share of import in the polystyrene

consumption constituted 68% in

2006


© www.mrcplast.ru

27

C. Other Household Appliances

The sector of electric appliances requires the closest attention. Today, it

consumes only about 2 000 MT of polystyrene a year, but it remains very

promising. Stably growing volumes of the Ukrainian market of household

appliances make it quite attractive for European companies…

Table 4.5. Production of laundry washers with the capacity up to 10 kg in Ukraine, pcs.

Company 2004 2005

OJSC “Elektorpribor” 190 196 200 313

“Polytechprom” Ltd. 52 921 52 981

“Yug-Viol” Ltd. 20 222 19 946

“Elektrotel” Ltd. 26 132 19 276

SE “Plant “Elektrotyazhmash” 12 138 13 779

“Plazma” Ltd. 13 355 7 037

“Onix” Ltd. 1267 4 435

JSC “Rostok” 224 2 111

DE “Magnit-TM” 5 400 1 754

“Corporation “Vesna-Alladin” Ltd. 2 450 -

“Panorama” Ltd. 300 -

“Rolling” Ltd. 20 516 -

Total 345 121 321 632


The Ukrainian market of TV-sets demonstrates high growth rates as well.

According to the assessments of experts, sales of TV-sets in Ukraine constituted

about 3 mln. pcs. in 2005, more than 1 mln. of them were assembled in Ukraine.

The LG and Samsung brands are still the leaders in sales of TV-sets. The top ten

Ukrainian manufacturers of TV-sets are as follows (Table 4.6).

Table 4.6. Production of TV-sets in Ukraine, 2004-2006, pcs.

Company 2004 2005

“Plazma” Ltd. 151 585 257 738

“Roling” Ltd. 13 4881 162 949

“Elektrotel” Ltd. 90 776 114 482

JV “Kiparis” Ltd. 36 623 51 241

“Corporation “Vesna-Alladin” Ltd. 12 794 14 301

“Panorama” Ltd. 3 039 5 804

SE “Novator” 406 4 203

OJSC “Systema” 3 195 3 827

OJSC “Foton” 1 680 2 604

OJSC “Topaz” 4 660 12

Total 439 639 617 161





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28

…

The overall rating of equipment supplies within the context of suppliers is

presented in Table 4.13 below.

Table 4.13. Delivery of complete lines for PS processing by suppliers, pcs.

№ Suppliers 2000 2001 2002 2003 2004 2005 2006

1 Adolf Illig/Germany 5 7 13 7 3 3 1

2 Angma Machinery /China - - - - - 10 -

3 Demag/Germany - - - - 3 - 5

4 Ningbo Haitan/China - - - - - 7 -

5 Kurtz/Germany - - - 3 - - 4

6 Battenfeld/Austria 1 - 1 1 - 1 2

7 ABM Formtec/Poland 2 - - 1 - 3

8 Sunghootech/S. Korea - - - 1 3 1 -

9 Kuasy/Germany 3 - 1 - - 1 -

10 Klockner Ferromatic /Germany - - 1 - 4 - -

11 GN Plastics/Poland - - - - 3 2

12 Meaf/Netherlands - - 2 1 - 1 -

13 Kaeler Technical/Switzerland - - 1 1 - 2

14 Conti/Italy - - 4 - - - -

15 Arburg/Germany - - 1 3 - -


Source: MRC

Generally, in 2005-2006, the biggest investment volumes in value terms

belonged to the sector of expanded polystyrene plates. We would like to mark out

the following enterprises among the investors of this sector: Izotekh (a plant in

Boryspil), Sonant (Odessa), Stirol-Pak (including a new plant in Obukhov), Termit

(increased its own production capacities by two times), Polyplast (Kyiv), Izoterm-

S (Rivne), Kremenchug Brick (Kremenchug).

In 2005, “Termpek” increased production of thermoformed blocks by three

times. Its monthly output capacity constitutes 20–30 thous. pcs. “Polyplast”

(Irpen) bought a line to produce facade plates. The daily output of the equipment

will make up 100 m³.

In 2005, “Marbet” (Boryspol District), a subdivision of the Polish company

Marbet, declared about the launch of the production of PS plates used for

warming of facades. Together with that, the company was going to start

production of plinths and suspended ceilings.

In June 2006, Stirol-Pak planned to launch a production in Obukhov; its

monthly output would make up about 20 thous. m3.

“Izotekh” took a decision to launch a new plant in Boryspol as well. The

new plant with output capacities increased by 80% will be specializing in

production of construction expanded polystyrene and packaging for furniture and

household appliances.


In 2006, three new EPS-plate productions were launched only in Kyiv

Region



29

5. PVC MARKET

…

Growth rates in the PVC market have been slowing down for the recent two

years. However, significant investments made by processors show promises for

further growth dynamics within the following five years.

Serious competition in the market among domestic manufacturers can be

considered not earlier than 2009, in other words when Lukoil-Neftechem launches

a new PVC production in Kalush. That is going to be the most up-to-date PVC-S

production in Eastern Europe. The output capacity of the project will make up: 300

KT of PVC-S a year, the engineering of the project will be carried out by Uhde

(Germany), the overall cost of the project exceeds USD 300 mln.

...

Table 5.4. PVC consumption structure in Ukraine, 2000-2006, MT

Type 2000 2001 2002 2003 2004 2005 2006

suspension 14 637 15 347 19 830 33 707 45 873 60 905 67 188

Share, % 61,0% 52,8% 50,1% 55,5% 59,9% 62,3% 61,6%

rigid compound* 612 1 847 3 547 9 093 13 916 10 517 10 524

Share, % 2,6% 6,4% 9,0% 15,0% 18,2% 10,8% 9,6%

emulsion 1 554 1 467 2 262 6 072 11 329 14 376 16 769

Share, % 6,5% 5,0% 5,7% 10,0% 14,8% 14,7% 15,4%

PVC paste* 1 694 4 269 7 151 6 939 2 181 3 184 2 263

Share, % 7,1% 14,7% 18,1% 11,4% 2,8% 3,3% 2,1%

soft compound* 4 494 3 496 3 739 2 888 2 556 8 114 10 790

Share, % 18,7% 12,0% 9,4% 4,8% 3,3% 8,3% 9,9%

plastisol 265 2 016 2 592 1 402 95 103 309

Share, % 1,1% 6,9% 6,5% 2,3% 0,1% 0,1% 0,3%

copolymers 502 279 200 222 397 283 259

Share, % 2,1% 1,0% 0,5% 0,4% 0,5% 0,3% 0,2%

other 223 337 253 435 272 318 1 038

Share, % 0,9% 1,2% 0,6% 0,7% 0,4% 0,3% 1,0%

Total 23 982 29 057 39 574 60 756 76 619 97 800 109 140

* - data on import

Source: MRC

The overall high PVC consumption growth rates in Ukraine are connected,

first of all, with the increasing construction volumes. By virtue of objective reasons

like, for instance, double growth of prices for public utilities in 2006, Ukraine has

no other variants but to switch to modern construction technologies and materials.

In 2005, the government announced that after the next increase of gas prices it

was necessary to replace old windows in all flats with metal-plastic ones; that

program envisaged even subsidies running into billions. During 2000-2006, owing

to construction and repair works, the PVC consumption increased in practically all

PVC processing sectors connected with the construction industry…

…



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30

B. Vinyl Wallpapers

The overall capacity of the Ukrainian market of wallpapers is estimated at

the level of 50 mln. rolls, today. The general development of the market is favored

by the restoration of the mass housing construction in big cities. Moreover,

townspeople have begun to afresh wallpapers approximately once in 4-5 years in

their flats, while in the Soviet times, they did it once in 8-10 years.

Owing to the domestic production, vinyl wallpapers have become 15-20%

cheaper than the imported analogues. For Ukrainian end users the difference in

the price for vinyl is the key factor; and the difference in the price, for example,

for German wallpapers comparing with Ukrainian ones exceed 25%, now.

There are thirteen manufacturers of wallpapers in Ukraine; only four of

them produce vinyl wallpapers: Sintra (Kalush), Dnepromain, Edem

(Dnepropetrovsk), and the giant of the industry – Koryukovka Factory of Technical

Paper (Koryukovka). Today, these factories operate one of the most up-to-date

lines in Europe.

The overall consumption of PVC-E in the market of vinyl wallpapers

exceeded the level of 12 KT in 2006. If in 2000 manufacturers of vinyl wallpapers

preferred to use finished compounds, then already in 2006 they began to produce

pastes on their own. According to the data of the State Statistics Committee of

Ukraine, the output of PVC paste at Edem (Dnepropetrovsk) made up 9.1 KT in

2005.

According to the official statistics, the overall output of wallpapers in

Ukraine constituted 84.6 KT in 2006 (Table 5.6).

Table 5.6. Production of wallpapers in Ukraine, 2004- 2005, MT

Company 2004 2005 2006

Koryukovka Factory of Technical Paper

35 926 43 375 42 524

Edem 20 100 19 304 22 027

Vinyl /Dnepromain 11 079 12 279 11 951

Sintra 5 164 5 605 5 813

Block Ltd. 1 776 1 324 839

Versal 718 1 065 531

Continent 1 779 771 928

Total 76 542 83 723 84 613


…


Ukrainian manufacturers of vinyl wallpapers

operate the most up-to-date equipment


© www.mrcplast.ru

31

5.2. Equipment

Commencing 2004, the sector of PVC processing became a real revelation

for the Ukrainian polymer business. If during the four years (2000-2003) the

import of PVC processing lines to Ukraine constituted 57, then only in 2004, they

imported already 80 lines. Ukrainian processors purchased 291 complete PVC

processing lines during the last seven years (D. 5.5).

Source: MRC

Investments into PVC processing during that period made up more than

USD 70.7 mln. Moreover, the market has been demonstrating increasing

investment volumes for the recent three years. The peak of investments within the

recent seven years was recorded exactly in 2006 - D. 5.6. Significant potential in

terms of replacement of imported finished PVC goods gives hopes for further

growth of investments into PVC processing right up to 2012.

Source: MRC

Half of all investments, in value terms, during the six years belonged to the

sector of profile-molded goods, 21% - to production of PVC compounds (D. 5.7).

The maximum investments into PVC

processing were recorded in 2006

D.5.5. Investments into PVC processing in Ukraine, lines

7 616

28

80 8074

0

25

50

75

100

2000 2001 2002 2003 2004 2005 2006

D.5.6. Investments into PVC processing in Ukraine, USD mln.

1,2 1,7 2,9 3,6

14,3

18,6

28,5

0

6

12

18

24

30

2000 2001 2002 2003 2004 2005 2006



© www.mrcplast.ru

32

…

We would like to touch upon three companies in the production of PVC films.

Galprodukt bought a Luigi Bandera line to produce shrinkable PVC film, in 2005.

Ukrplast (Kharkiv) purchased a Thermoline extrusion line to produce shrinkable

PVC film, as well as a Robelplast line to make films for general purposes.

Technology (Sumy) acquired a Emmendinger Maschinenbau line (Germany) to

produce decorative PVC film for bottles.

The general rating of suppliers of equipment used for the production of PVC

goods is presented in Table 5.19, below.

Table 5.19. Delivery of complete PVC processing lines by suppliers, pcs.

№ Suppliers 2000 2001 2002 2003 2004 2005 2006

1 Xinhing Twin Screw Machinery/China - - - - 7 14 18

2 Krauss Maffei/Germany 1 - 3 7 10 8 10

3 Zhejiang Jinhai Plastic Machinery/China - - - - 7 10 11

4 Cincinnati/Austria - - - 2 15 1 1

5 Technoplast/Austria - - - - 6 4 7

6 Weber/Germany - - - 1 4 8 1

7 LGH/S. Korea - - 1 2 2 6 -

8 Ningbo Haitan/China - - - - - 2 8

9 Metalchem/Poland - - 2 2 2 2 -

10 Ningbo Shuangma Machinery/China - - - - 7 -

11 Mikrosan/Taiwan - - - - 3 3 -

12 Karakus Makina/Turkey 2 - - - 2 2 -

13 Luigi Bandera/Italy - 1 1 - 2 1 -

14 Battenfeld/Austria - - 1 - 2 - 1

15 Okumuslar/Turkey - - 4 - - -

16 Amut/Italy - - - 1 3 - -

17 Greiner Extrusionstechnik/Austria - - - - 1 2 1

18 Demag/Germany - 2 2 - - - -

19 Tito/Poland 1 2 - - - - -

20 Gruber /Austria - - - - - - 3

21 Gamart/Poland - - - 3 - - -

22 Coperion/Germany - - 1 1 1 -


Source: MRC



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33

6. PET MARKET

The dynamics of the production of PET preforms in Ukraine prove that the

domestic market is actively developing, however, it is already close to saturation in

some segments. Manufacturers of preforms are looking for new sectors where they

can use PET bottles. For instance, in 2004, domestic companies began to bottle

milk, dairy products and juices into PET bottles. They are also trying to enter the

market of souvenir alcohol products, today.

The overall supplies of PET in the Ukrainian market exceeded the historic

level of 200 KT in 2006. The average growth rate of the PET consumption

constituted 31%. Similarly to all other polymers, the dynamics of the PET market

is slowing down as well: if in 2002 the growth rate made up 72%, then already in

2006 it constituted only 19%. The domestic market is being saturated with PET

packaging owing to the domestic production (PET preforms and PET bottles) from

primary PET granulated.

Source: MRC

According to the assessments of MRC, the overall output of preforms

exceeded the level of 6 billion conditional preforms (35 gr) in 2006. As earlier,

manufacturers from Southeast Asia, mainly from South Korea and China, are the

main suppliers of PET to the Ukrainian market.

…

Among the biggest projects on expansion of preform production during

2004-2006 we would like to mark out four companies. All these companies

purchased Husky equipment. Hekro-PET installed additional HYPET 400 injection

molding machines, Uniplast - HyPET 300, NBG-Ukraine - HYPET300P, and Coca-

Cola Beverages - HUSKY HYPET 500.

Italian companies are leading in supplies of EBM machines (first of all, Sipa)

- Table 6.5.

D. 6.1. Consumption of PET in Ukraine, KT

0

80

160

240

2000 2001 2002 2003 2004 2005 2006



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34

…

The most important projects in the sector of blowing bottles from preforms

in 2006 were the following ones: Slavutich Brewery, Obolon (SIG Corpoplast

blowing machines), Chumak (Sipa), Sesa (Sidel), and Mirgorod Mineral Water Plant

(Krones).

The general rating of supplies of PET processing equipment can be found in

Table 6.6, below.

Table 6.6. Supplies of imported complete PET processing lines, pcs.

№ Suppliers 2000 2001 2002 2003 2004 2005 2006

1 Husky/Canada 13 12 5 6 4 12 11

2 Sipa/Italy 5 3 7 2 2 3 2

3 Sidel/France - 5 5 6 1 - 1

4 SIG Corpoplast/Germany - - - 2 1 5 3

5 Krones/Germany 1 - 1 4 - - 4

6 Kropotkinskiy Plant MISSP/Russia - - - - 3 1 1

7 Krupp/Germany 1 1 - - 2 - 1

8 Kosme/Austria 3 - 1 1 1 2 -

9 Netstal/Switzerland - 2 - - - 1 -



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