Russian Roulette-Plastics Packaging

Editor: Steven Pacitti | April 2010

...For McAllister, companies appear to be focusing more on domestic production as the currencies of these countries are reassessed and the unrealistic exchange rates based on the oil economy and building boom of Russia have leveled out. It therefore makes more sense to manufacture domestically for the still-growing demand than to import finished goods.


Even at minus 25 deg C in a down economy, McDonald's restaurants in Russia are full

“Many Russian packaging companies are looking more closely at domestic raw materials as quality increases and availability is better due to the lack of demand from construction,” he adds.

“I believe that the packaging industry has entered the next phase of slower but more mature growth and the shift to domestic manufacture by small-to mid-size companies will offer many opportunities for machinery manufacturers offering high quality, good value equipment.”

Up to now, North American machinery manufacturers have generally offered the best-value and robust machinery that is ideal for Russian operating conditions.

In fact, one of McAllister’s US-based clients was a source of considerable interest from domestic processors at the recent Interplastica show. PTi’s recently-launched range of co-extruded lines for multiplayer packaging offers converters the chance to invest in a flexible economic system that suits the market conditions in Russia.

The GLOBALINE® range of machines enables processors to produce smaller runs of sheet from materials including PP, PS, PET and PLA with finished product widths of 1.0 or 1.5m and production outputs of between 300 and 1,750kg per hour.

And these emerging technologies herald a future of value-added packaging solutions. Barrier products are increasing in prominence in Russia as the need for food producers to reduce waste and increase margins gathers pace. Milk is packaged in PET bottles now, whereas before it was PET sachets in most cases.

Chicken and meat are increasingly packaged in the more recognizable modified atmosphere (MAP) trays in contrast to polyethylene bags that are prone to damage and loss of quality, while consumers are also becoming more discerning and want quality products as television continues to highlight food hygiene issues.

Another US machinery manufacturer, Black Bros, is witnessing increased interest from Eastern Europe in its laminating and coating technology for multilayer packaging applications, and custom builds each machine for its clients.

And it could be said that recent technology trends in the US are providing a neat fit for the requirements of the Russian market.

“On a recent trip to North America it seemed that the buzz was all about finding low-cost ways to apply coatings to packaging, and increasing its appeal and value. I am sure that many new innovations will appear as the need for better margins drives US companies, and this will play into the hands of the Russian converters and brands,” comments McAllister.

Agricultural production is likely to drive the packaging industry in Russia as it seeks to reduce product waste, which can result in losses of up to 40 percent before reaching the consumer.

“Over the last years, Russian consumers have become used to high quality imported food products that are now just a touch out of reach due to currency devaluation,” says McAllister. “Hopefully domestic producers will step up to the plate.”

Time will tell, he explains, but his view is that the biggest needs in Russia include efficiency and brand differentiation in a tightening market, as a huge unsatisfied demand remains for all consumer goods and high-quality food and household items...

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