Successful Moscow fairs testament to Russian market strength

THE success of interplastica and UPAKOVKA/UPAK ITALIA 2015, the two major Moscow trade fairs for plastics and rubber, processing, packaging, and printing, reflects the resilience of the Russian market amid persistent economic and political turmoil.

About 19,000 visitors from Russia, CIS, and neighboring countries attended the trade events held from January 27 to 30. Approximately 950 exhibitors from 35 countries presented their products at Moscow’s EXPOCENTRE in Krasnaya Presnya.

Russia’s plastics, rubber, packaging, and process technology market continues to face a weak rouble, declining oil prices, and challenging political situation. Substantial demand for investment and advanced machinery, production and process technology and high-tech materials, however, keeps the industry afloat.

Makers in the domestic consumer goods and packaging industry are improving competitive edge to offset the decline in imports. Business owners and industrialists are exploring innovative technologies and establishing new and sustaining existing business contacts despite delays in business project rollouts.

Germany remains the most important supplier to the Russian plastics and rubber processing sector despite a decline in orders with a market share of 35.5%. China and India follow, with respective market shares of
14.9% and 14.7% for 2013.

Current figures, however, present a challenging situation for the Russian consumer industries. Germany’s plastic and rubber machines sales for the first eleven months of 2014 reached EUR 141.9 million, a decline of
30.7% from the previous year. In 2013, global exports of plastics and rubber machines to Russia amounted to EUR 615.7 million for a mere 4.7% decline from 2012.

Nevertheless, Mario Maggiani, CEO of Assocomaplast, the Association of Italian Machine Manufacturers, confirms the importance of the Russian market. “Despite the fact that our exports to Russia have dropped by about one fifth, Russia is and remains to be one of the five most important markets for Italian manufacturers of plastics and rubber machinery. Even though we must anticipate similar results in 2015, none of the Italian companies active in this market intends to withdraw from it. The market has major long-term potential. The current problems are caused by the weak rouble and the massive interest in borrowings for those few companies that were fortunate enough to qualify for loans in the first place,” Mr. Maggiani said.

Werner Matthias Dornscheidt, chairman and CEO of Messe Düsseldorf, said they are happy with the show results given current market conditions. “The fact that so many international exhibitors attended the interplastica and UPAKOVKA/UPAK ITALIA trade shows speaks of great confidence in the Russian market, and their commitment was rewarded by an unexpectedly high number of visitors. This success confirms the significance of both events for their respective industries. In times of challenging political conditions and difficult business relationships, we hosted two major trade shows to ensure that business relations will remain unaffected.”

Both trade shows were co-hosted by Messe Düsseldorf and its subsidiary, Messe Düsseldorf Moskau. UPAKOVKA/UPAK ITALIA is hosted in cooperation with the Italian organizer Centrexpo.

The next interplastica will be held in Moscow from January 26 to 29, 2016. It will again run concurrently with UPAKOVKA/UPAK ITALIA.