Leading Russian pipe extruder Polyplastic Group is planning major expansion of irrigation system production at its manufacturing site of Volzhskiy in the southwest of the country.
Initially, Moscow-based Polyplastic will invest more than €4.4m in a project to build new equipment to produce components for crop drip irrigation systems. Four lines to turn out pipe, hose and other parts are due to go into operation there this year and in 2020, according to the company.
The former Russo-Italian Italsovmont plant near Volgograd, acquired in 2015 by Polyplastic, has specialised in moulding high density polyethylene water and gas pipes and fittings. It already has three manufacturing lines and an annual production capacity of 17,000 tonnes.
Polyplastic is reported to be planning further expansion of irrigation pipe production with a further eight lines expected to be built for the 6.6-hectare Volzhskiy site by 2022.
Currently, Volzhskiy site, with a plant area covering around 16,000m2, employs a workforce numbering 75.
Russia's leading plastics processor, one of Europe's top PE pipe extruders and moulders of pipe fittings, is the biggest tube and pipe producer and plastics compounder in Russia and the CIS region.
Today, Polyplastic's pipe manufacturing business operates 15 subsidiaries across Russia as well as in Belarus and Kazakhstan. With a workforce of more than 5,000 and 20 trading units from Minsk to Vladivostok, the business has an overall capacity of 300,000 tpa of pipe products.
The Russian group has recorded an annual turnover of around €480m.
Meanwhile, R&P Polyplastic, the group's compounding division revealed that it achieved its best ever result last year with a record volume of 80,000 tonnes of polymer compound materials produced and sold.
It announced that its sales total increased in 2018 by 4.5% against the result achieved during 2017.
R&P Polyplastic explained that it continued to serve its main markets with automotive sector customers representing 36% of its business, the household appliance industry consuming 24% and the construction sector taking a 17% share.
The compounding subsidiary also revealed significant progress in its concerted drive to export more of its material to the European market. During 2018, the company appointed the German firm Polytrade Global as a distribution partner in Europe.
R&P Polyplastic has reported that its Export Boost programme increased business during 2018 with product shipments to customers in the Baltic States and countries in Western Europe.
Last October, Pavel Kruglov, chief executive of Polyplastic Trading House said the group aimed to supply up to 1,000 tonnes of polymer compounds to Europe in 2019.