MOSCOW (MRC) -- Russian companies' investments in equipment for polyvinyl chloride (PVC) processing fell by 24% over the first six months of 2014. Producers of shaped and linear articles accounted for the greatest decrease, reported MRC analysts.
Investments inPVC processing equipment dropped to USD58 million from January to June 2014 versus USD76.6 million a year earlier. Local producers of shaped and linear articles reduced their costs for equipment purchasing, while producers of cables, wires and pipes, on the contrary, increased their spending.
Investments in PVC processing equipment from producers of shaped and linear articles slumped to USD16.6 million over the stated period, down by 46% year on year. Weaker demand for finished products was the main reason for the decline in investment activity from companies in this processing sector. As expected, industry leaders, among which are: Veka Rus, Profine Rus, Deceuninck Rus, Rehau Rus, Brusbox, Deke Extrusion, accounted for the main costs for new equipment purchasing.
Investments in equipment for the production of cable and pipe products rose by 10% and 20%, respectively, in the first six months of the year and totalled about USD8.4 million and USD5.7 million. among key investors - manufacturers of cable products are the following companies : Kirscable, Promteh-Dubna, Pskov cable Plant. The following companies can be singled out among cables and pipes producers, which heavily invested in equipment in the first half of 2014: Polyplastic, Pipelife Rus, Chemkor, TGP Rosal.
Russian companies reduced their purchasing of equipment for compounding, sheet extrusion and coatings this year.
MRC