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Russia's Aluminium Product Manufacturers Have Nothing to Fear from Accession to the WTO, Assures Frost & Sullivan

- Benefits will include access to a wider range of export opportunities

LONDON, Dec. 6, 2012 /PRNewswire/ -- The application range for aluminium products is steadily expanding. To address changing end-user needs and survive intense competition, manufacturers are modernising their production facilities and broadening their product portfolios. In Russia, manufacturers have the added challenge of dealing with the country's accession to the World Trade Organisation (WTO).

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Analysis of Russian Aluminium Products Market, finds that the market generated 858,000 tonnes in 2011 and estimates this to reach 1,144,000 tonnes in 2016.

Two distinct categories – standardised and customised – comprise the Russian aluminium products market.

"The market for massive, standardised production is currently dominated by the three largest producers, Alcoa Inc. (including CJSC Alcoa SMZ (Alcoa SMZ) and CJSC Alcoa Metallurg Rus (Alcoa MR)), OJSC Kamensk-Uralsky Metallurgical Plant (KUMZ) and Krasnoyarsk Metallurgical Plant Ltd. (KRAMZ)," noted Frost & Sullivan Industry Analyst Monika Fechner. "On the other hand, the market has numerous smaller, specialised companies that manufacture higher, value-added products such as aluminium profiles, siding, or roofing."

Some end-users require standardised aluminium products. These, for example, might include foils used in the packaging industry or wires and cables used in the electronics industry.

In contrast, the construction industry with its diverse needs requires a high degree of customisation. Aluminium product manufacturers, therefore, have to find their own specialisations in order to develop their business.

However, fluctuating energy and aluminium prices pose a challenge to market participants. Russia has accessed the WTO in 2012 and increasing competition from imports is further challenging domestic companies.

"Local aluminium product companies are afraid that Russian accession to WTO will squeeze their share in the domestic market, due to the influx of more competitors and fiercer competition," explained Fechner. "On the other hand, Russian companies which currently export only around 10 to 20 per cent of their production, mostly to other CIS countries, Asia and the Middle East, stand to gain access to a wider range of export opportunities."

Moreover, the rouble is expected to depreciate along with increased exports, making Russian products cheaper and more attractive to foreign end-users. After WTO accession, Russian manufacturers are also likely to spend less on imported foreign equipment, thereby reducing their operational costs.

If you are interested in more information on this study, please send an e-mail with your contact details to Julia Nikishkina, Corporate Communications, at julia.nikishkina@frost.com.

Analysis of Russian Aluminium Products Market is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets: Russian Diamond Market, Russian Platinum Group Metals (PGM) Market and Russian Tubes and Pipes Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of Russian Aluminium Products Market
M84B-10

Contact:
Julia Nikishkina
Corporate Communications – Europe
P: +7-(499)-918 6146
E: julia.nikishkina@frost.com

http://www.frost.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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