With the gradual recovery of the economy, domestic demand growth, the company invested to restart, the Russian polyurethane industry is experiencing earth-shaking changes.
For example, the FomLine Group, one of Russia's largest producers of polyurethane, will set up a new soft plastic plant in Kuznetsk at the end of the year, with 80,000 tonnes of capacity a year and will be built in one of the largest industrial areas in central Russia The factory will provide raw materials for the nearby local furniture cluster.
Initially, the project was planned to be implemented in the summer of 2016, but the Russian polyurethane industry was in poor market in 2016 and discontinued at the end of 2017.
At the same time, Vega is building a polyurethane foam plant in the Krasnodar region for mattress and upholstered furniture facilities and is expected to be operational in mid-2018.
Analysts at the Russian Ministry of Industry and Trade argue that the polyurethane project has been restarted due to a significant increase in demand in recent years.
According to the Ministry of Finance data, in 2016, the government to the Russian major producers to provide 40 million US dollars of subsidies, the amount will be implemented in the end of 2017.
Alexander Orlov, head of the Department of Chemical and Industrial Synthesis at the Russian Ministry of Industry and Trade, said it would finance research and development, compensate interest on investment and promote domestic production on an international scale.
The support provided by the existing national strategy is the 'Russia 2030 Chemical Complex'.
Western sanctions caused by the Russian financial crisis led to the redistribution of polyurethane consumption.
Russian industry and trade minister spokesman Dennis Manturov said the crisis has led to a decline in polyurethane consumption in the automotive, furniture and construction sectors, which were the nation's largest polyurethane consumer by 2013.
However, due to the devaluation of the ruble, the consumption of agriculture and refrigeration equipment has increased, leading to expensive imports, stimulating the production of similar domestic imported products.
"The increase in energy consumption in the building will require more polyurethane foam panels," said Alexander Dmitry, president of the Russian National Association's Polyurethane Foam Manufacturers, who said that the consumption of polyurethane in Russia will continue to grow.
At present, the Russian polyurethane market is equivalent to 275,000 tons of rigid foam and soft foam consumption accounted for 38% of the total.