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TO THE READER

by Pavel Lyakhovich, member of the Management Board and Managing Director of SIBUR.

Dear Clients and Partners,

This summer brought many surprises, with an unusually low demand for disposable plastic tableware, garden tools, soft drinks and, hence, their packaging. As a result, the seasonal peak in sales expected in these segments did not fully materialise.

While the cold weather is hard to forecast, there are factors that can be analysed more accurately. These include tougher competition among polymer manufacturers due to an active commissioning of new capacities, and return to the import market that occurred on the back of the rouble appreciation. Green technologies and closed-loop production are also gaining popularity. Experts warn that the changing demographic landscape is another factor to be taken into account in the long run: similar to other countries, Russia is facing population ageing, which affects the most active consumers aged fr om 25 to 34.

However, new challenges bring about not only problems, but also opportunities. For instance, in an increasingly competitive environment, the winner is the one who offers the most promising product. A bigger role of older consumers means new requirements for product shelf life, packaging quality, etc.

The ability to identify and grasp key trends underpins the success of every business. SIBUR focuses on an in-depth analysis of all new developments and strives to offer its customers the products that meet their current needs. We showcased some of our solutions, such as innovative BOPP films for food packaging, at RosUpack and Interpack wh ere they aroused great interest.

To get more details on the emerging market trends and potential responses to them, please read the next issue of our online SIBUR for Clients. If you have any questions, suggestions and opinions (including critical comments), do not hesitate to email them to dearcustomer@sibur.ru.

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