EDITORIAL
In between ambitious and absurd: Sibur's change in strategy
 Sven Arnold (Photo: PIE) |
The western sanctions against Ukraine’s aggressor Russia do not seem to be quite as unsuccessful as they are often described. That at any rate is indicated by the basic strategy turnaround at present being carried out by Sibur, the major Russian polymer and petrochemicals group.
In the past two years, the heads of the giant group have repeatedly described – even if in an ever-quieter tone – the increase in trade relations with China and India as a highly successful counter-model to trading with Europe. With the strategy turnaround that has now been announced, this assertion can finally be shifted to the realm of fantasy.
In the latest statement from the company, the word “export” is not even mentioned anymore. Instead, the supply of the local plastics processors is described as a “crucial task”. The focus here is no longer to be on granule production solely, but rather on the supply of semi-finished and finished products – there seems to be a distinct shortage of these in Russia at present. The statement that they want to replace imports can probably be more or less disregarded.
Sibur’s strategy of taking the bull by the horns cannot cover up the fact that the frequently propagated technological independence of Russia has not made much progress. The lack of plant components is putting a brake on the construction of the new factories that are needed for the country to become self-sufficient. Capital has also become a scarce resource in Putin’s empire. When priority is given to the purchase of drones and the hiring of more soldiers, it is not surprising that money is lacking to expand the economy – not to mention the declining trust of the business partners and investors from China and India.
This makes the goal that has now been set, of providing a remedy for some missing products in the medium term, seem all the more ambitious. Pessimists might even describe it as absurd because Russia is doing its calculations while completely failing to recognise the facts, namely the international and domestic flow of goods. Russian packaging manufacturers already prefer to buy Chinese-made films because of the lower prices.
Sven Arnold
Deputy Editor-in-Chief,
Kunststoff Information (www.kiweb.de), Plasteurope.com’s sister publication
In the past two years, the heads of the giant group have repeatedly described – even if in an ever-quieter tone – the increase in trade relations with China and India as a highly successful counter-model to trading with Europe. With the strategy turnaround that has now been announced, this assertion can finally be shifted to the realm of fantasy.
In the latest statement from the company, the word “export” is not even mentioned anymore. Instead, the supply of the local plastics processors is described as a “crucial task”. The focus here is no longer to be on granule production solely, but rather on the supply of semi-finished and finished products – there seems to be a distinct shortage of these in Russia at present. The statement that they want to replace imports can probably be more or less disregarded.
Sibur’s strategy of taking the bull by the horns cannot cover up the fact that the frequently propagated technological independence of Russia has not made much progress. The lack of plant components is putting a brake on the construction of the new factories that are needed for the country to become self-sufficient. Capital has also become a scarce resource in Putin’s empire. When priority is given to the purchase of drones and the hiring of more soldiers, it is not surprising that money is lacking to expand the economy – not to mention the declining trust of the business partners and investors from China and India.
This makes the goal that has now been set, of providing a remedy for some missing products in the medium term, seem all the more ambitious. Pessimists might even describe it as absurd because Russia is doing its calculations while completely failing to recognise the facts, namely the international and domestic flow of goods. Russian packaging manufacturers already prefer to buy Chinese-made films because of the lower prices.
Sven Arnold
Deputy Editor-in-Chief,
Kunststoff Information (www.kiweb.de), Plasteurope.com’s sister publication
03.04.2024 Plasteurope.com [254994-0]
Published on 03.04.2024