Export Outlook for Russia's Polyurethane Market

Regardless of sector, gaining dominance in the Russian market is something every company desires. The Russian market excites and motivates companies because of its geographical proximity, substantial population, and supply shortages in many sectors. However, companies wishing to enter the Russian market often fail when encountering numerous difficulties and insurmountable regulations. Some of the challenges faced include: Legal Barriers: Overcoming these barriers is both time-consuming and costly. Special permits and certificates are required for exports, and Russia's customs authorities frequently change rules and procedures, which complicates matters for exporting companies. Differences in Mentality and Business Approach: This is generally the most difficult barrier to overcome. Even if the exporting company grows and employs Russian-speaking staff, overcoming this barrier requires considerable patience and adaptation, along with careful attention to delivering orders with consistent quality and on time. Even companies that succeed in these areas cannot be said to always reach their desired targets. Nevertheless, CanPlast took a step into the Russian market by establishing a partnership agreement with MegaPlast LTD (ООО МегаПласт), a local company in the Russian market. Prior to this contract, CanPlast conducted thorough market research and participated as an exhibitor at the Polyurethanex Fair held in Moscow to make a targeted approach, and an agreement was made for the coming year as well. In this article, we wish to share some brief information about the Russian polyurethane market with you.

Russian Polyurethane Market

[caption id="attachment_129715" align="aligncenter"] 92% of PU used in the Russian market is imported.[/caption] Main PU Import Brands DOW - 40% Huntsman - 16% Bayer - 10% BASF - 5% Other import brands – 21% Domestic producers - 8% The PU market grows approximately 10% annually; the import share remains unchanged. CanPlast is compatible with every manufacturer's PU system. Colorants Used in the Russian Market

• Milliken,
• Repi,
• Domestic producers,
• Other imported manufacturers.

Each manufacturer has one or several PU segments where they are strong; not all. Distribution of PU Types CanPlast can work with 90% of the PU market (the proportion of systems using colorants). CanPlast is a company that produces pigment pastes suitable not only for PU systems, but for all market segments. Our pigment pastes are used in the following systems: • Elastomer PU, • Integral and Rigid PU, • Sponge PU, • Polyurea, • PU Coating, • PU Compound, • Epoxy, • Polyester, • PVC. Compared to many manufacturers in the Russian market, CanPlast's pigment pastes stand out from other producers through their broad scope of application and quality. For more information about CanPlast's partners in Russia and other countries, you can contact us. Together we are coloring the world! Aida Tunç Export Manager CanPlast