Plastic Pipes in Ukraine Special Market Report

2004 www.market-cis.com

Plastic Pipes in Ukraine - 2004

Definitions in Report ................................................................................... 4 Methods of Research ............................................................................................ 4 Consumption Markets........................................................................................... 4 Manufacturers ..................................................................................................... 4 Prices ................................................................................................................ 4 Investments ....................................................................................................... 5 Diagrams and Tables............................................................................................ 5 Forecast ............................................................................................................. 5 Growth Indices .................................................................................................... 5

1. Evaluation of Polymer Pipe Market in Ukraine ........................................ 6 1.1. General state of pipe industry in Ukraine .............................................. 6 1.2. Normative Basis for Application of Polymer Pipes in Ukraine .................... 9 1.3. Consumption of polymer pipes by types of raw materials ...................... 10 1.3.1. Polyethylene ............................................................................................ 14 1.3.2. PVC ........................................................................................................ 28 1.3.3. Other...................................................................................................... 30

1.4. Consumption of Plastic Pipes by Markets............................................. 31 1.4.1. Water Supply and Sewerage....................................................................... 36 1.4.2. Heat Systems .......................................................................................... 39 1.4.3. Gas Supply Systems ................................................................................. 42 1.4.4. Other...................................................................................................... 44

2. Domestic Production Statistics .............................................................. 45 3. Import Statistics ................................................................................... 50 4. Export Statistics .................................................................................... 59 5. Companies in the Ukrainian Market of Polymer Pipes ............................ 60 5.1. Ukrpolymerconstruction, Kyiv............................................................ 63 5.2. Vodpolymer, Borispol ....................................................................... 64 5.3. Elplast, Lviv .................................................................................... 64 5.4. Ukrgazifikatsiya Yug, Odessa............................................................. 65 5.5. DAK, Donetsk.................................................................................. 65 6. Perspectives of Market Development in Ukraine.................................... 66 7. Investments in the Ukrainian Pipe Market............................................. 68 8. Market News in 2003-2004.................................................................... 71

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Plastic Pipes in Ukraine - 2004

Market report includes consumption, production, export and import analysis of plastic pipes in Ukraine by types of raw materials, markets of consumption, producers. Also there is detailed sales statistics for the first 10 market players. Report provides the data from 2000 to 2003 as well as market forecast for 2004.

Current trends and perspectives for plastic pipes market in Ukraine are presented in the report. Pipe consumption in Ukraine is analyzed for two sectors – by types of raw materials and by markets. It is analyzed consumption of PE, PP and PVC pipes. PE pipes is presented by different brands. Markets include water supply and sewerage, gas supply systems and heat systems. The analysis of the state budget resources on development of new investment projects connected with pipes and for prevention of breakdowns in housing and communal services is presented in the report. Domestic production, import and export of plastic pipes were analyzed in detail (by types of raw materials, diameters and markets). The ratings of domestic pipes producers and importers are in the report. The news during 2003-2004 presented separately.

Also you could find here answers for the following questions: Why PE 80 brand will be the leader of pipes production in the nearest future? Why the share of Russian PE suppliers falls? Which are positions of large suppliers of pipe PE into Ukraine? What is the perspective of development for PP and PVC pipe markets? What is the volume of pipe sales by Ukrainian and foreign producers? In which directions and volumes state resources are distributed? Which is ukrainian production and import of pipes by diameters? Investments of which companies will influence to market consumption of polymers of pipe brands in the nearest future? Which is demand on pipes by markets (water, heat, gas)? How does develop the consumption of pipes by regions in Ukraine?

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Plastic Pipes in Ukraine - 2004

Statistics of report: 74 pages, 75 tables, 27 diagrams, 20 782 words, number of companies mentioned - 117. Format: PDF file or color paper version. Contact: [email protected]

List of tables 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37.

38. 39.

The general length of networks and the length of networks, which are to be replaced The length of networks in Russia, which need replacement Components of the Ukrainian plastic pipes market, 2000-2004, tons Consumption of pipes by types of raw materials in Europe, thousand tons Consumption of pipes by types of raw materials in Ukraine, tons Production of pipes by types of raw materials in Ukraine, tons Import of pipes by types of raw materials in Ukraine, tons Characteristics of PE pipes in accordance with GOST 18599-2001 Requirements to pipe PE in accordance with GOST 18599-2001 Pressure reduction index for different PE brands Requirements to PE for gas pipes Technical characteristics of gas pipes Types of PE production in CIS Consumption of pipe polyethylene in Ukraine, tons Consumption of pipe PE in Ukraine by types, tons Consumption of pipe PE in Russia by types, tons Production of pipe PE in Russia, tons Rating of suppliers of pipe PE into Ukraine, % Rating of suppliers of pipe PE into Ukraine, tons Supplies of pipe PE into Ukraine in January-May 2004, tons Supplies of pipe PE into Ukraine in January-May 2000-2004, tons Supplies of pipe PE 63 into Ukraine, tons Supplies of pipe PE 80 into Ukraine, tons Supplies of pipe PE 100 into Ukraine, tons Supplies of pipe PE into Ukraine by manufacturers, tons Supplies of pipe PE 63 into Ukraine by brands, tons Supplies of pipe PE 80 into Ukraine by brands, tons Supplies of pipe 100 into Ukraine by brands, tons Rating of pipe PE sales in Ukraine, % Purchasers of pipe PE in Ukraine, tons Manufacturers of PVC pipes in Ukraine, tons Foreign suppliers of PVC pipes into Ukraine, tons Foreign suppliers of PP pipes into Ukraine, tons Import of polymer pipes by markets, % Import of polymer pipes by markets, tons Resources from the state budget connected with the pipe industry, UAH The sum of state subventions allocated for projects and measures connected with the prevention of breakdowns in housing and communal servicing in the area of water supply and sewerage, UAH ‘000 The weight of pipes, needed for the amount of resources allocated by the state for water supply and sewerage systems, tons The weight of pipes, needed for the amount of resources allocated by the state for water supply and sewerage systems, km

40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75.

The sum of the state resources meant for investment projects and actions to prevent breakdowns in housing and communal servicing in the area of heat supply systems, UAH ‘000 The weight of pipes, needed for the amount of resources allocated by the state for heat supply development, tons The weight of pipes needed for the amount of resources allocated by the state for heat supply, kilometers The sum of the state resources allocated for investment projects and actions to prevent breakdowns in housing and communal servicing in the area of gas supply, UAH ‘000 The weight of pipes needed for the amount of resources allocated by the state for gasification, tons The weight of pipes needed for the amount of resources allocated by the state for gasification, kilometers Production of plastic pipes in Ukraine Production of plastic pipes in Ukraine by types of material, tons Rating of the manufacturers of plastic pipes in Ukraine, tons Rating of manufacturers of plastic pipes in Ukraine, % Dynamics of import of plastic pipes into Ukraine, tons Import of polymer pipes by markets, tons Import of polymer pipes by diameter, tons The volume of import by main markets and diameters, % The volume of pipes import by main markets and diameters, tons Import of polymer pipes by types of raw materials, % Import of polymer pipes by types of materials, tons The volume of import of pipes by types of raw materials and main markets, % The volume of import of pipes by types of raw materials and main markets, tons Rating of importers of pipes into Ukraine, % Rating of importers of pipes into Ukraine, tons Rating of importers of pipes by main markets, % Rating of importers of pipes by main markets, tons Dynamics of export of plastic pipes, tons Export of plastic pipes out of Ukraine by markets, % Net sales of pipe manufacturers in Ukraine, USD Return on equity of pipe manufacturers in Ukraine, % Profitability of sales of pipe manufacturers in Ukraine, % Net profit of pipe manufacturers in Ukraine, USD Turnover of stocks of pipe manufacturers in Ukraine, days Turnover of accounts receivable of pipe manufacturers in Ukraine, days Consumption potential for plastic pipes by regions of Ukraine, 2004, tons Assets of top ten pipe manufacturers in Ukraine, USD Fixed assets of pipe manufacturers in Ukraine, USD The number of investments into pipe production in Ukraine Purchases of import equipment for pipe manufacturing in Ukraine, USD

List of Diagrams 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

The volume of the Ukrainian plastic pipes market, 2003, tons Consumption of plastic pipes in Ukraine, thousand tons World consumption of pipes by types of raw materials, 2007, % Consumption of pipes by types of raw materials in Ukraine, 2003, % Consumption of polymers by pipes producers in Ukraine, 2003, % Import of pipes by types of raw materials into Ukraine, 2003, % Consumption of pipe polyethylene in Ukraine, thousand tons Consumption of pipe PE in Russia, 2003, % Consumption of pipe PE by types in Ukraine, 2003, % Consumption of pipe PE in Russia, 2007, forecast, % Consumption of pipe PE in Ukraine, 2007, forecast, % Consumption of pipe PE in Ukraine, 2003, thousand tons Consumption of pipe PE in Ukraine, 2003, % Consumption of PVC by pipes market in Ukraine, thousand tons Demand for replacement of pipelines in Ukraine by markets, 2003, % to tons

16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

Demand for replacement of pipelines in Russia by markets, 2003, % to tons Consumption of pipes in Ukraine by markets, 2003, % to tons Consumption of imported pipes by markets in Ukraine, 2003, % to tons State resources for pipes systems in Ukraine, 2004, % to UAH million Production of plastic pipes in Ukraine, tons Production of plastic pipes by diameters in Ukraine, mm, 2003, % The biggest producers of plastic pipes in Ukraine, 2003, % Import of plastic pipes into Ukraine, tons Import of pipes by markets, 2003, % to tons Import of pipes by diameters, 2003, % to tons Export of plastic pipes from Ukraine, tons Characteristics of pipe market by regions of Ukraine

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Plastic Pipes in Ukraine - 2004

List of companies mentioned

1

AMI

40 SABIC/ DSM

79

Металлпласт Metalplast

2

Aquatherm Gmbh

41 Tece

80

3

Atofina

42 Telwolt

81

ПАКС PAKS

4

Basell Orlen

43 Termolux

82

Пластмодерн Plastmodern

5

Borealis

44 Texor

83

Пластпайп Plastpipe

6

BP Solvay Polyethylene

45 TVK

84

Поливтор Polyvtor

7

Bесum

46 Valsir

85

Полимер-Акация Polymer-Akatsiya

8

Chemopetrol

47 Wavin

86

Полимергаз Polymergas

9

Chemspol

48 Wiplast

87

Полимерпромтекс Polymerpromtex

10

Czaplinski

49 Агригазполимер Agrigazpolymer

88

Полимир Polymir

11

Ekoplastik

50 Аквапласт Aquaplast

89

Поли-Пак Poly-pack

12

Elplast+

51 Акватерм-Украина Aquatherm-Ukraine

90

Проминь Promin

13

Firat

52 Биолог Biolog

91

Рабмер-Украина Rabmer-Ukraine

14

Freedonia

53 Бир Пекс Bir Pex

92

Розма Rozma

15

FV-Plast

54 Большевик Bolshevik

93

Нафтогаз Украины Naftogaz Ukraine

Рубежанский казенный химический завод “Заря” Rubezhanskiy State Chemical Plant “Zarya” Броварский завод пластмасс

Gamart

55

17

Genova

56 Вавин Украина Wavin Ukraine

95

Санарм Sanarm

18

Henco

57 Водполимер Vodpolymer

96

Сантехмонтаж Santechmontazh

19

InstaPlast

58 Воронеж-Пласт Voronezh-Plast

97

Сизакор Sizakor

20

Kaczmarek

59 Газ Украины Gas of Ukraine

98

21

Krauss Maffei

60 Газтрубпласт Gastrubplast

99

Brovary Plastic Plant

94

Самборский завод металлооснастки

16

Sambor Metal Components Plant

Симферопольский з-д пластмасс Simferopol Plastic Plant Софт Сервис Гоголев Soft Service Gogolev

22

KWD

61 Гаммапласт Gammaplast

100

Союзинвест Soyuzinvest

23

KWH Pipe

62 Грат Grat

101

Ставролен Stavrolen

24

Leoni Hungaria

63 ДАК DAK

102

Техноком Technokom

25

Metalchem

64 Дельта Delta

103

Укргазификация Юг Ukrgasification Yug

26

Nibco

65 Европласт Europlast

104

27

NMC

66 Евротрубпласт Eurotrubplast

105

Укрпромсоюз Ukrpromsoyuz

28

Olmas

67

106

Упак Upak

29

Organika

68 Зикс Zyx

107

Фаберпласт Faberplast

Здолбуновский завод Искра Zdolbunov Plant Iskra Инвесторполимербуд

30

Ostendorf

69

31

Pannonpipe

70 Инсталпласт-ХВ Installplast-ХВ

109

32

Petrohemija

71 Кабельный завод Cable Plant

110

Investorpolymerbud

108

Укрполимерконструкция Ukrpolymerconstruction

Харьковский монтажный з-д Kharkov Adjusting Plant Химпласт Chemplast Хмельницкий з-д экспериментального производства Khmelnitskiy Experimental Plant

33

Phillip Townsend Associates

72 Казаньоргсинтез Kazanorgsyntez Киевский завод сантехзаготовок

111

Шуртанский газохимкомплекс Shurtan Gas & Chemical Complex

34

Pipelife

73

35

Plastimex

74

36

Profil

75 Луга-Пласт Luga-Plast

114

37

Rabmer

76 Лукойл-нефтехим Lukoil-neftechem

115

Эльпласт-Львов Elplast-Lviv

38

Rehau

77 Луцкпластмасс Lutskplastmass

116

Энергокомплект Energokomplekt

39

Reifenhauser

78 Маринол Marinol

117

Юнипласт Uniplast

Kyiv Plant of Sanitary and Technical Components Комбинат стройиндустрии Complex of building industry

112

Экополимер Ecopolymer

113

ЭксПо ExPo Электромаш-комплект Elektromash-Komplekt

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Plastic Pipes in Ukraine - 2004

… extract from report…

1. Evaluation of Polymer Pipe Market in Ukraine 1.1. General state of pipe industry in Ukraine At present, Ukrainian system of housing and communal servicing is in extremely difficult situation. The general length of Ukrainian pipes networks of different kinds constitutes more than 400 thousand kilometers. About 33% out of 112 thousand kilometers of water supply networks and about 29% out of 35 thousand kilometers of sewerage systems are in emergency state. 40% of aggregates at pump stations are to be replaced. The average index for the replacement of all water supply pipes makes up 15% (Table 1.1.1). The situation in gas supply is less critical. The share of problematic gas distribution networks constitutes 3% of all distribution networks. However, the market of gas pipes is of great interest, taking into account active program on gasification of new territories in Ukraine. At the communal heat-and-power engineering plants they run 6 758 thousand of boilers with the total power 72 903 giga calories per year. 29% of them have been run for more than 20 years. 10 thousand kilometers or 41% of heating networks and 1 760 The situation in Ukraine is also close to “complete communal catastrophe”

or 29% of heat-and-power plants are in emergency state. The length of heating networks in double-pipe terms makes up 23 704 kilometers, including preliminary heat-insulated pipes, which constitute 854 kilometers.

Table 1.1.1. The general length of networks and the length of networks, which are to be replaced Sector

General length ‘000 kilometers

Gas supply

‘000 tons **

Need replacement ‘000 kilometers

‘000 tons**

% for replacement

Sample Page

Water supply

Please see full data in our Report

Sewerage Heat supply Total

* - estimation of Market Report (according to other data - 1,3 thousand kilometers) ** - converting into PE

Source: State Housing and Communal Servicing Committee, Naftogas Ukraine

In general, the state of things in Ukrainian pipe sector is very similar to Russian realities. President of Eurotrubplast, Mr. Gorylovskiy, described that situation in Russia as “an immediate proximity to complete communal catastrophe”. The general length of Russian networks, which need replacement, makes up 294 thousand kilometers or 4,13 million tons converting into PE.

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Plastic Pipes in Ukraine - 2004

… extract from report …

1.2. Consumption of polymer pipes by types of raw materials 1.3.1. Polyethylene Consumption of PE in Ukraine is regulated by several normative documents. Thus, in accordance with intergovernmental GOST 18599-2001 pertaining to waterpipes, in Ukraine it is allowed to use PE with MRS 3,2; 6,3; 8,0; 10,0 MPa (PE 32, PE 63, PE 80, PE 100). On agreement with the customer it is allowed to use pipes for technical purposes using secondary raw materials of the same brand, which is obtained in the process of own production in accordance with the existing standard. The growth of pipe PE market is not similar for different types of PE. Consumption of PE 80 is growing very quickly, although, PE 63 is still the leader in consumption (Table 1.3.1.8).

Table 1.3.1.8. Consumption of pipe PE in Ukraine by types, tons Type

2000

2001

2002

2003

2004 forecast

PE 63 PE 80

Sample Page

PE 32

Please see full data in our Report

PE 100 Other Total Source: Market Report

In 2003, 63% of supplies of pipe PE into Ukraine belonged to two Russian manufacturers. In 2003, TVK began to work more active in the market, its supplies made up 20% (Table 1.3.1.11).

Table 1.3.1.11. Rating of suppliers of pipe PE into Ukraine, % Producer

2000

2001

2002

2003

Kazanorgsyntez Stavrolen / Lukoil-Neftechim TVK BP Solvay Polyethylene Petrohemija

Sample Page Please see full data in our Report

Shurtan Gas & Chemical Complex Polymir Chemopetrol SABIC/ DSM Atofina Others Borealis Total Source: Market Report

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Plastic Pipes in Ukraine - 2004

… extract from report …

1.4. Consumption of Plastic Pipes by Markets

We considered consumption of plastic pipes by markets in different aspects. We analyzed present consumption, import of pipes by types, allocation of resources from the state budget during 2003-2004 to implement investment projects connected with pipes and allocation of budgetary resources to prevent breakdowns in housing and communal services. In accordance with the experts’ evaluations, at present, almost half of the total consumption volume belongs to water supply pipes, then follow gas pipes and sewerage systems pipes (Diagram 1.4.3).

D. 1.4.3. Consumption of pipes in Ukraine by markets, 2003, % to tons

8%

2%

1%

Sample Page

23%

Please see full data in our Report 17%

49%

Gas supply

Water supply

Sewerage

Heat supply

Insulation

Others

Source: Market Report

As accroding to the existing standards plastic pipes cannot be painted, we studied, in particular, application of yellow and orange colors by the manufacturers of PE 80 and 100 pipes in order to determine their production, for instance, production volume of gas pipes. Particularly, analyses of PE sales verified that the share of gas pipes in Ukrainian production is in terms of 20%. Another important moment in studying the structure of the pipes market is the analysis of the planned expenditures on replacement of pipe systems and on development of new investment projects at the expense of subventions form the state budget of Ukraine. Such analysis proves that in the nearest future we can expect fast growth of the gas pipes market. From the point of view of state resources meant for prevention of breakdowns in housing and communal services, the main markets consuming pipes are water supply and sewerage systems. © www.market-cis.com /

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Plastic Pipes in Ukraine - 2004

… extract from report …

2. Domestic Production Statistics Ukrainian market of plastic pipes is characterized by a stable growth of production volumes. In 2003, domestic production of pipes rose by 82%. The general rating of the Ukrainian manufacturers is represented in Table 2.3. As it is seen from the Table, the most part of the players constantly increase their production.

Table 2.3. Rating of the manufacturers of plastic pipes in Ukraine, tons Producer

The first five producers provide for 67% of production

Region

1

Ukrpolymerconstruction*

Kyiv region

2

Elplast-Lviv

Lvov region

3

Installplast-ХВ

Lvov region

4

Vodpolymer*

Kyiv region

5

Energokomplekt

Lvov region

6

Europlast

Lvov region

7

Brovary Plastic Plant

8

Promin

Donetsk region

9

Ukrgasification Yug*

Odessa region

2001

2002

2003

Growth in 2003, %

Sample Page

Kyiv region

Please see full data in our Report

10

Plastmodern

11

Luga-Plast

Kyiv region

12

Sizakor

13

Biolog

14

DAK

Donetsk region

15

Ecopolymer

Kharkov region

16

Elektromash-Komplekt

17

Simferopol Plastic Plant

18

Polymergas

Lugansk region Crimea Kherson region

Kyiv region Crimea Vinnitsa region

19

Grat

20

Polyvtor

Kyiv region

21

Rozma

22

Complex of building industry

23

Zdolbunov Plant Iskra

Crimea Chernovtsy region Kyiv region Rovno region

24

Kharkov Adjusting Plant

25

Khmelnitskiy Experimental Plant

Kharkov region

26

Delta

27

Lutskplastmass

28

Upak

29

Chemplast

Donetsk region

30

Cable Plant

Khmelnitskiy region

31

Others

Khmelnitskiy region Kherson region Volyn region Chernigov region

Total * Evaluation of Market Report

Source: Market Report

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Plastic Pipes in Ukraine - 2004

… extract from report…

3. Import Statistics Import of plastic pipes into Ukraine is growing as quick as consumption of pipes in general. Within the recent four years the volume of import has increased by almost five times (Diagram 3.1).

D.3.1. Import of plastic pipes into Ukraine, tons 18 000

Sample Page 9 000

Please see full data in our Report

0 2000

2001

2002

2003

2004 forecast

Source: Market Report

Pipes with a small diameter, less than 200 mm, prevail in sales of imported pipes.

Table 3.4. The volume of import by main markets and diameters, % Market

Diameters of pipes

2000

2001

2002

2003

Less than 200 mm Water supply

More than 200 mm Fittings Total

Sample Page Please see full data in our Report

Less than 200 mm Sewerage

More than 200 mm Fittings Total Less than 200 mm

Insulation

Fittings Others Total Less than 200 mm

Gas supply

More than 200 mm Fittings Total Less than 200 mm

Heat supply

More than 200 mm Fittings Total Source: Market Report

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