Even in difficult times, international providers demonstrate confidence in the Russian market

Rubber market weakness, falling oil prices, and tense political situations are currently affecting the Russian market for plastics and rubber technology as well as packaging and processing technology, but they have by no means brought it to a standstill. In Russia and neighboring countries, there remains a significant need for investment; interest in modern machinery, production and process equipment, and high-tech materials continues to be very high. Especially the domestic consumer goods and packaging industries are challenged to improve their competitive position in order to substitute imports. Entrepreneurs and industry experts want to learn about innovative technologies and maintain or establish new business relationships with suppliers, even if investment projects cannot be realized in the short term.

Accordingly, there was strong interest in the two leading trade fairs for plastics and rubber as well as for packaging and processing technology, interplastica and UPAKOVKA/UPAK ITALIA 2015. Around 19,000 trade visitors from Russia, all regions of the CIS, and neighboring countries attended the events. Many were regular visitors, but there were also representatives from companies that see new sales opportunities for their products due to market changes. From January 27 to 30, approximately 950 exhibitors from 35 countries showcased their offerings at the Moscow EXPOCENTRE in Krasnaya Presnya.

"Given the current difficult conditions, we are very satisfied," summarizes Werner Matthias Dornscheidt, Chairman of the Management Board of Messe Düsseldorf, the course of the events. "The many international exhibitors demonstrated with their participation in interplastica and UPAKOVKA/UPAK ITALIA that they still place great trust in the Russian market. The unexpectedly high number of trade visitors has rewarded this commitment and confirms the great importance of these two events for their industries. At a time when political frameworks complicate economic relations, we were able to contribute with our two major technology fairs to ensure that business connections are not broken." Messe Düsseldorf, together with its subsidiary Messe Düsseldorf Moscow OOO, organizes the two trade fairs, with UPAKOVKA/UPAK ITALIA in cooperation with the Italian organizer Centrexpo.

Visitors use the four-day trade fair to gather comprehensive information about the international offerings. Overall, it was expressed that the presence of globally active companies is highly appreciated. The exhibitors, for their part, mostly expressed pleasure at the interest shown by professionals, given that many Russian companies are currently facing major challenges. Particularly, the financing of projects, it was unanimously heard, has become extremely difficult and is causing problems especially for small and medium-sized companies.

Despite the decline in orders, Germany remains the most important supplier for plastics and rubber processors in Russia by a large margin, with a market share of 35.5 percent. China follows with 14.9 percent, ahead of Italy with 14.7 percent (figures for 2013). The current figures reflect the tense situation of Russian buyers: In the first eleven months of 2014, German deliveries of plastics and rubber machinery amounted to 141.9 million euros, which is 30.7 percent below the previous year's level. The global export of plastics and rubber machinery to Russia in 2013 showed only a 4.7 percent decrease compared to the previous year, totaling 615.7 million euros.

Bernd Nötel from the VDMA Plastics and Rubber Machinery Association knows that the Russian market remains important for German machine builders: "Experts are sure to assume that the per capita consumption of plastic products in Russia will continue to rise in the coming years – a great opportunity for providers of high-quality processing equipment. Investments are planned and necessary, but many projects are currently postponed because the financing modalities are difficult to define due to the rapidly changing exchange rate. However, German providers are aware of the importance of their presence right now and use interplastica to personally present their innovations and maintain good contact with customers even in difficult times." Both sides wish for increased diplomatic efforts from governments to find a way out of the current political conflict, so that the traditionally good relations between German companies and their Russian business partners are not jeopardized. For Russia, it remains important to expand its value chain. First activities in refining raw materials are detectable, albeit at a low level.

The fundamental importance of the Russian sales market is confirmed by Mario Maggiani, Managing Director of the Italian machinery manufacturing association Assocomaplast. "Russia still ranks among the five most important countries for Italian producers of plastics and rubber machinery, although our exports decreased by about one-fifth last year. Even if we have to assume a similar magnitude for 2015, none of the Italian companies active in the market intends to withdraw. The market still has great potential in the long term. The main problems currently are the weakness of the ruble and the extremely high credit interest rates – if companies can obtain loans at all." Many Italian exhibitors at interplastica have been active in Russia for a long time—they maintain good personal contacts that still play a major role in Russian business life. Visitors from other CIS countries such as Armenia, Kazakhstan, Belarus, Ukraine, and Uzbekistan were also welcomed in the exhibition halls.

The broad international offerings of the exhibitors were complemented by a framework program that attracted lively interest among interplastica 2015 visitors. At the Polymer Plaza in Hall 1, lectures and discussion rounds focused on plastic recycling and bioplastics. Additionally, open exhibitor seminars showcased innovative developments in raw material production and application.

The next interplastica in Moscow will take place from January 26 to 29, 2016, again parallel to UPAKOVKA/UPAK ITALIA.