A project for the construction of the JSC Ivanovo Polyester Complex, reportedly suspended due to lack of state guarantees to the lender, could be revived in Russia’s Republic of Bashkiria, Innovation in Textiles reports.
According to the news outlet, there is a possibility that the decision will be revised in the coming weeks and that work on the project will resume. The new plant, however, will be most likely built in the Bashkiria Republic, with machinery and equipment being ordered from the German company Uhde Inventa-Fischer, which is part of ThyssenKrupp Industrial Solutions.
The original project was announced by the Russian government as part of it plan to reduce the dependence on imports in the synthetic fibers segment. It was to have the capacity to produce up to 175,000 tons of polyester fibers and 30,000 tons of textile PET granulate per year. Construction was due to start 2017 and the plant was to be commissioned in 2020. Building costs were estimated at $350 million, and the majority of funds were to be provided by one of Russia’s largest state-owned banks, most likely VTB.
The majority of the plant’s future output would be intended for the needs of the domestic market (130,000-140,000 tons), while the remainder would be exported, primarily to Italy, Germany, Poland, and Czech Republic.
Despite the fact that the development of domestic production of synthetics fabrics has been declared as one of the government’s top priorities, Russia’s technical textiles industry may face a shortage of raw materials this year, after government and business plans have so far failed to resolve the country’s dependence on imports, Innovation in Textiles writes.
In recent years, the demand for synthetic fabrics in Russia has increased significantly and still continues to grow. According to data provided by Denis Manturov, the Russian Minister of Industry and Trade, at present, imports account for around 90% of the local market. Most of the products come from China (more than 47%). In value terms, annual imports are estimated at US$ 296.6 million, with annual growth rates of 10-12%.
According to analyst agency Discovery Research Group, the market currently varies in the range of 250,000-270,000 tons per year in volume terms and has big potential for further growth, thanks to its rich raw materials base and well-developed petrochemical industry.