{"id":6807,"date":"2020-05-27T17:40:17","date_gmt":"2020-05-27T17:40:17","guid":{"rendered":"http:\/\/polymers.com.ua\/?p=6807"},"modified":"2020-05-27T17:42:38","modified_gmt":"2020-05-27T17:42:38","slug":"%d0%b2%d0%bb%d0%b0%d1%81%d1%82%d0%b8-%d0%b7%d0%b0%d0%b3%d1%80%d0%b0%d0%b4%d0%b8%d0%bb%d0%b8-%d0%b2%d1%81%d0%b5-%d0%bf%d0%be%d0%bb%d0%b8%d0%bc%d0%b5%d1%80%d1%8b-%d0%b8%d0%b7-%d0%b7%d0%b0-%d0%b3%d0%be","status":"publish","type":"post","link":"https:\/\/polymers.com.ua\/en\/%d0%b2%d0%bb%d0%b0%d1%81%d1%82%d0%b8-%d0%b7%d0%b0%d0%b3%d1%80%d0%b0%d0%b4%d0%b8%d0%bb%d0%b8-%d0%b2%d1%81%d0%b5-%d0%bf%d0%be%d0%bb%d0%b8%d0%bc%d0%b5%d1%80%d1%8b-%d0%b8%d0%b7-%d0%b7%d0%b0-%d0%b3%d0%be\/","title":{"rendered":"Authorities have blocked all polymers: due to state duties in Ukraine, plastic windows will go up"},"content":{"rendered":"

\"\"The government will support the Karpatneftekhim bankruptcy risk, but 60 other companies in the industry may close due to this
\nUkrainian enterprises appealed to the president and the government with a request to reconsider the decision to introduce on May 22 an 18% duty on imported polymer materials. Protectionism, according to their estimates, could lead to the closure of more than 60 of the 100 enterprises that manufacture polymer products. Today, the industry employs more than 50 thousand people, and also participates in the production chain of a wide range of consumer goods – from plastic windows and cables to plastic bags and packaging.
\nAll the listed domestic products, indicated in the petition, are waiting for a rise in price, since the cost of raw materials will become higher than in world and regional markets. One of the consequences of the decision may also be an increase in the cost of construction.
\nThe decision of the authorities was an interim result of the special investigation launched by the Interdepartmental Commission on International Trade (MKMT) in February – the duty will work at least until its completion. The measure was also needed to protect the domestic manufacturer – the Karpatneftekhim company, which initiated the investigation.
\nThe Kalush enterprise, through the union and the city council, requested to investigate the possibility of duty in February 2020. Then “Karpatneftekhim” faced the risk of closure due to the inability to compete with dumping imports.
\nKarpatneftekhim is the only producer of goods included in the duty list in the country. However, the quality of the products offered by him, according to the signatories of the petition, does not always meet the requirements of the market, which excludes the complete reorientation of processing companies to domestic raw materials. The factory does not produce a number of goods subject to duties at all.<\/p>\n

Limited supply monopolist<\/p>\n

In February, Karpatneftekhim was forced to stop the production of polyethylene. The management of the enterprise, petitioning the authorities for support, announced the threat of dismissal of 80% of 2792 plant workers. The reason is the low prices of imported polyethylene, PVC and caustic soda, which deprived the Kalush enterprise of the Ukrainian consumer.<\/p>\n

The drop in demand for Karpatneftekhim products is also confirmed by statistics. According to the Market Report company, which monitors the CIS polymer market, in April Karpatneftekhim was even forced to increase its exports due to the lack of demand on the domestic market.<\/p>\n

Meanwhile, the purchase by Ukrainian consumers of polymer raw materials abroad is largely a necessary measure. The 12 petitioning companies processing the \u201cduty-free\u201d polyvinyl chloride (PVC) argue for the injustice of the measure as a whole by its anti-market character, and, above all, the inability of Karpatneftekhim to provide the full range and quality of the products that were on the list.<\/p>\n

So, during a press conference held by the petitioning companies the day before the decision to impose a duty was published, the general director of the Prominvest-Plastika producing compounds Igor Domnich drew attention to the fact that his company uses special fire-resistant types of polymer resins, and the products of the Kalush enterprise producing only one type of resin, resorted only “in the most undemanding processes.”<\/p>\n

As a result of MKMT’s decision, one of the most affected Ukrainian enterprises will be manufacturers of PVC window profiles. The petition notes that in order to avoid bankruptcy due to overpayment for raw materials imported into Ukraine, they will have to purchase it abroad.<\/p>\n

UBR.ua and Sergey Pozhay, director of Steko Plant LLC, one of the three factories of Steko window manufacturing company, spoke about the low quality of PVC raw materials produced in Kalush. The company buys ready-made PVC profiles from both European and Ukrainian manufacturers, however, less than 5% of Steko suppliers use Karpatneftekhim’s PVC raw materials.<\/p>\n

“The position of the initiators of changes in the legislation is now biased. The Kalush plant of Karpatneftekhim LLC offers products of not the best quality. As an entrepreneur, I am disappointed by the news that the state plans to intervene in the work of a particular enterprise,” said Pozhay.<\/p>\n

In other conditions, the market would have preferred domestic producers, explained UBR.ua Alexander Antonyuk, marketing director of Miroplast LLC, one of the petition signatory companies.<\/p>\n

\u201cThe business is first and foremost looking for suppliers in Ukraine, and last of all, we are trying to look for them abroad. These are huge risks. Buying in Ukraine means that we will receive products definitely on time, we will not be stopped by customs, we will not have to pass certification if necessary, “explains Antonyuk.<\/p>\n

Karpatneftekhim did not respond to a request from UBR.ua regarding the fairness of such an assessment of its products, the ability to meet the needs of the market, and the prospects for developing compromise market conditions that suit all participants, at the time of publication of the material.<\/p>\n

The objectivity of the investigation in question<\/p>\n

According to Antonyuk, the state support of Karpatneftekhim will be at a loss for the rest of the industry and will put the Ukrainian profile systems in an unequal position compared to foreign ones, which will be able to import products to Ukraine without extra charges, which, accordingly, will not rise in price.<\/p>\n

\u201cWe are a manufacturing company like Karpatneftekhim, and we face very strong competition in the market. However, we see a solution to the problem by optimizing internal processes, but by no means creating any artificial tools. We are in a market economy and state support should be provided exactly not in the plane of duties, “said the marketing director of Miroplast.<\/p>\n

Dissatisfaction of the signatories of the petition was also caused by the adoption by the authorities of a decision without consulting the market. This, in particular, was stated in the American Chamber of Commerce (ATP). Its representative, Angela Makhinova, during a press conference noted that although the WTO rules allow countries to protect their producer by anti-dumping measures, polymers – a specific product and the introduction of duties will lead to its cost and loss to the processing industry.<\/p>\n

In general, the decision was made without taking into account the needs of all market players, the ATP said, urging the Ministry of Economy to objectively approach the consideration of the case.<\/p>\n

“The question arises of the objectivity of the investigation by the Ministry of Economic Development. After we listened to all interested parties, we had many questions,” Makhinova said during a press conference.<\/p>\n

Prices of domestic windows are equal to foreign ones. Quality is not a fact<\/p>\n

Expressing support for the authors of the petition, the director of the Steko Plant, Sergei Pozhai, whose company buys PVC profiles on both the European and Ukrainian markets, however, found positive in anti-dumping measures.<\/p>\n

“If in Ukraine there will be an increase in duties related to the pricing of windows, then German, Polish and other systems will become more competitive. In my opinion, competition is a normal market situation, I do not mind it,” said the director of the Steko Plant.<\/p>\n

Please add that domestic specialized enterprises currently produce the least quality products that can not be compared with European ones.<\/p>\n

\u201cIt is time for other Ukrainian enterprises to pay attention to the results of their work and finally switch from\u201c small-chamber \u201dto\u201c multi-chamber \u201dprofile constructions with large widths in order to increase the real energy-saving properties of the finished window,\u201d Sergey Pozhay suggests.<\/p>\n

The Miroplast did not agree with the critical assessment of the quality of Ukrainian specialized systems, put forward by Put. Alexander Antonyuk notes that the windows made from the profiles issued by his enterprise have been successfully tested in Europe, and the company itself, having its own quality laboratory, has been “heading for the last decade to increase the share of multi-chamber energy-efficient products in its sales.”<\/p>\n

It was difficult to predict exactly how much the cost of their products on the domestic market will increase in Miroplast, but if the duty is maintained, Antoniuk says, domestic profile systems of all price niches will be more expensive. The share of multichamber profile systems in the proposal of Miroplast is now about 70%, said Alexander Antonyuk, expressing the conviction that the term “economy” does not apply to the entire domestic industry.<\/p>\n

\u201cWe understand that at the moment there is a big risk that we will become more expensive than our foreign competitors, despite the fact that we manufacture products and create jobs in Ukraine,\u201d said Antoniuk, marketing director of Miroplast. He also expressed concern that the duty would close the export window for Ukrainian profile companies, “which in recent years have entered the markets of near and far abroad, including Asia and even North America.”<\/p>\n

For their part, Steko summarized that the increase in their price offer would affect only the most budget category of windows.<\/p>\n

\u201cWith such prospects as described in the petition, Steko’s products in the economy segment may well go up in price – just those profiles and windows made in Ukraine. But Steko Ideal windows are made from the European profile, so the price increase for this position associated with the text a petition would be illogical, “remarks Put.<\/p>","protected":false},"excerpt":{"rendered":"

The government will support the Karpatneftekhim bankruptcy risk, but 60 other companies in the industry may close due to this Ukrainian enterprises appealed to the president and the government with a request to reconsider the decision to introduce on May 22 an 18% duty on imported polymer materials. Protectionism, according to their estimates, could lead […]<\/p>\n

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