LONDON - Paint demand in Russia exceeded one million tons in 2005 and is estimated at 1,050,000 tons, according to Information Research (IRL), London. Russian paint output is climbing as a result of limited investment across the top tier of industry, and imports are spiraling to help fill the technology gap, especially in some of the most important economic areas such as Moscow and St. Petersburg. The performance of the industry in the future is expected to be good, growing at an average of 7.1% per year between 2005 and 2010, when Russian paint demand will approach 1.5 million tons.

Although Russian GDP growth is beginning to soften, one of the major growth markets will be the rapidly growing automotive industry as foreign carmakers invest on Russian soil. It is expected that the level of car output in Russia will soar from 165,000 units in 2004 to 900,000 units by 2010, and that demand for automotive OEM coatings will multiply rapidly, possibly by as much as 30% per year from the present level of about 40,000 tons. There is a long waiting list for foreign car models in Russia, and with purchasing power rising, there will be associated increases in refinish consumption within the coming years.

A Profile of the Russian Paint Industry, Second Ed., can be purchased from IRL. Contact Terry Knowles at terry.knowles@brg.co.uk or visit www.informationresearch.co.uk/.