said Oleg Dorin of Saint-Gobain. - CCIFR
said Oleg Dorin of Saint-Gobain. - CCIFR
said Oleg Dorin of Saint-Gobain. - CCIFR
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22<br />
RUSSIA–FRANCE<br />
A <strong>Saint</strong>-<strong>Gobain</strong> factory producing construction materials in Cognac, France. The company opened one <strong>of</strong> two factories in the Nizhny Novgorod region in 2006.<br />
solvency <strong>of</strong> Russian consumers, Baranov <strong>said</strong>.<br />
The situation in construction sector is far from<br />
stable: Since the beginning <strong>of</strong> the year, the<br />
industry has shown both positive and negative<br />
indicators.<br />
In March <strong>of</strong> this year, according to the<br />
state statistics service, the volume <strong>of</strong> residential<br />
housing made up 4 million square meters, which<br />
is 13.5 percent higher than in February <strong>of</strong> last<br />
year. But in February <strong>of</strong> this year, the result was<br />
much worse, as residential housing declined by<br />
6.1 percent.<br />
“These seesaw movements exert a significant<br />
influence on the market for construction<br />
materials and don't allow companies to count<br />
on confident growth in the market or, consequently,<br />
on the growth <strong>of</strong> their own financial<br />
indicators,“ Baranov <strong>said</strong>.<br />
“Manufacturers also have the opportunity<br />
to increase their output thanks to the secondary<br />
market, which is the market for housing<br />
renovations, individual residential construction<br />
and construction <strong>of</strong> dachas,” he <strong>said</strong>.<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
“These tendencies can be explained by the<br />
fact that the population has experienced an<br />
improvement in its financial situation, there is<br />
a stability in income, a possibility to plan for<br />
the future, and so citizens can direct a part <strong>of</strong><br />
their income to renovate their homes, and also<br />
to build houses and dachas,“ he added.<br />
“These types <strong>of</strong> work will require construction<br />
mixtures, among other supplies. And this<br />
growth can contribute to a growth <strong>of</strong> this<br />
segment by 5 percent to 9 percent per year,”<br />
Baranov <strong>said</strong>.<br />
FRENCH PLASTER OF PARIS<br />
This year, <strong>Saint</strong>-<strong>Gobain</strong> will begin construction<br />
in the Pavlovsk area <strong>of</strong> its second large factory in<br />
the Nizhny Novgorod region. It will produce drywall<br />
panels. Currently, this project is in the final<br />
planning stages, Thierry Fournier, the general<br />
director <strong>of</strong> <strong>Saint</strong>-<strong>Gobain</strong> Construction Material<br />
Rus, told Vedomosti in November 2010.<br />
According to Fournier, the company bought<br />
more than 10 hectares at the end <strong>of</strong> 2009 for<br />
Return Investors<br />
Net volume <strong>of</strong> foreign investments in the Nizhny Novgorod region (2005 -2010)<br />
$ MLN<br />
2005 2006 2007 2008 2009 2010<br />
SOURCE: Nizhny Novgorod region administration<br />
future development, and construction <strong>of</strong> the<br />
project is slated to begin in 2012.<br />
In June 2007, Jean Laronza, president <strong>of</strong><br />
<strong>Saint</strong>-<strong>Gobain</strong> for Poland, Russia and Ukraine,<br />
promised to begin, in the second half <strong>of</strong> 2008,<br />
the construction <strong>of</strong> a factory with a capacity<br />
<strong>of</strong> 30 million square meters <strong>of</strong> drywall per year.<br />
Investments into the project would have totaled<br />
2.9 billion rubles ($103 million), and costs<br />
would have been recouped in six years to nine<br />
years. The drywall was to be sold in the Nizhny<br />
Novgorod region and the surrounding regions.<br />
“All the parameters remain the same,” the<br />
company's press service <strong>said</strong> about the planned<br />
factory.<br />
“<strong>Saint</strong>-<strong>Gobain</strong> has adjusted its strategy due<br />
to the crisis on the market for construction<br />
material in Russia,“ Fournier <strong>said</strong> when explaining<br />
the delay. “Now, the crisis has changed<br />
direction.”<br />
According to a manager <strong>of</strong> one <strong>of</strong> Nizhny<br />
Novgorod’s construction companies, <strong>Saint</strong>-<strong>Gobain</strong><br />
will begin processing gypsum at the Gomzovsky<br />
deposits in the Pavlovsk area <strong>of</strong> the city, extracting<br />
approximately 30,000 tons a year.<br />
According to Vladimir Volkov, general director<br />
<strong>of</strong> Stroiinvest Nizhny Novgorod, demand for<br />
drywall in the region fell 70 percent in the last<br />
two years, but in the future it will grow 30 percent<br />
a year.<br />
“The market in Russia will grow 15 to 20<br />
percent a year in the foreseeable future,” <strong>said</strong><br />
Volkov, manager <strong>of</strong> Volma, a producer <strong>of</strong> drywall<br />
in Volgograd.<br />
Drywall panels will continue to grow in<br />
popularity because right now the majority <strong>of</strong><br />
residential buildings are delivered with an open<br />
PIERRE-ALAIN DORANGE / WIKIMEDIA COMMONS<br />
floor plan, <strong>said</strong> Safonov from Investkafe.<br />
“Drywall is a relatively new material for the<br />
Russian market, and without a question it has<br />
strong potential for growth,“ Baranov <strong>said</strong>. “It<br />
is already considered one <strong>of</strong> the most popular<br />
construction materials in Russia.”<br />
According to data provided by Knauf, one <strong>of</strong><br />
Russia’s largest producers <strong>of</strong> drywall paneling,<br />
this material has numerous benefits. It has the<br />
ability to “breathe,” which means that it can<br />
take in excess moisture from the air and give it<br />
<strong>of</strong>f when the air is dry; it is easy to install; “wet”<br />
processes are not needed during finishing; and<br />
it allows for the realization <strong>of</strong> the most varied<br />
types <strong>of</strong> architectural and design solutions,<br />
including creating curved surfaces. In addition,<br />
drywall is not only ecological but also provides<br />
a comfortable temperature indoors; it cuts construction<br />
costs by making the wall hanging<br />
faster; and it increases labor efficiency.<br />
Demand for drywall panels in the next few<br />
years will grow by 4 percent to 9 percent a year,<br />
Baranov <strong>said</strong>.<br />
FRENCH ROOF<br />
Fellow French investor Onduline, one <strong>of</strong> the largest<br />
world producers <strong>of</strong> construction material,<br />
launched its first Russian factory for producing<br />
wavy ro<strong>of</strong>ing sheets in Nizhny Novgorod in<br />
2008, <strong>said</strong> Natalya Khoroshkova, manager <strong>of</strong> the<br />
marketing department at Onduline Construction<br />
Material. That’s the Russian daughter company<br />
<strong>of</strong> the French company.<br />
“We chose Nizhny Novgorod because <strong>of</strong> its convenient<br />
geographical location,“ Khoroshkova <strong>said</strong>.<br />
“It is not far from Moscow, on the intersection <strong>of</strong><br />
major highways, which is very convenient for delivering<br />
our product to other parts <strong>of</strong> Russia.“<br />
The factory’s capacity is 7.5 million sheets<br />
per year. The company has began construction<br />
<strong>of</strong> factory in February 2006, Onduline deputy<br />
general director Andrei Nezhkin previously told<br />
Vedomosti. The factory is located on an area <strong>of</strong><br />
more than 10 hectares on the territory <strong>of</strong> Gorky<br />
Automobile Plant (GAZ).<br />
According to Nezhkin, the volume <strong>of</strong> investment<br />
in the project is $20 million <strong>of</strong> company<br />
money and borrowed funds.<br />
‘We chose Nizhny Novgorod because … it<br />
isn’t far from Moscow, at the intersection<br />
<strong>of</strong> major highways,’ <strong>said</strong> Natalya<br />
Khoroshkova <strong>of</strong> Onduline.<br />
The company gets the bitumen and organic<br />
raw material that is necessary for production<br />
from Nizhny Novgorod and other Russian markets.<br />
Using cheap local raw materials and work<br />
force, as well as cutting back on costs on logistics<br />
and customs payments allows the company<br />
to significantly lower production costs, an<br />
Onduline employee <strong>said</strong>.<br />
“This material is ecologically clean, does<br />
not contain any health-harming asbestos, has<br />
a neutral color, and is very easy to install,“<br />
<strong>said</strong> an employee <strong>of</strong> the marketing department<br />
<strong>of</strong> a Russian company that produces<br />
fiber-cement.<br />
But, at the same time, he <strong>said</strong> Onduline’s<br />
ro<strong>of</strong>ing products are less economical than regular<br />
slate and some forms <strong>of</strong> shingles in large<br />
construction projects. “Onduline’s main market<br />
remains the construction <strong>of</strong> individual homes,”<br />
he <strong>said</strong>.<br />
FUTURE PROSPECTS<br />
“Foreign investors, including French companies,<br />
will continue to actively invest in the creation<br />
<strong>of</strong> manufacturing in the Nizhny Novgorod<br />
region due to positive outlooks for demand <strong>of</strong><br />
their products in the future, especially since<br />
local <strong>of</strong>ficials are actively working to create a<br />
comfortable investment climate in the region,”<br />
Tim<strong>of</strong>eyev <strong>said</strong>.