SCHOTT solutions no. 2/2010 > Eastern Europe

Today, close to 100 employees work at the plant in Nizhny Novgorod that opened in 2007. The main products are shelves for refrigerators and glass panels for ovens. Photo: SCHOTT/A. Sell

Good Prospects

SCHOTT is present in Russia with its flat glass processing plant for the home appliance industry. Now, a plant for pharmaceutical packaging is being added to the mix.

Jürgen Breier

On the international stage, Russia now speaks the language of global capitalism and presents itself as an economic power. However, long-term economic success presumes that Russia’s raw materials sector will gradually be replaced by other means of value creation – necessitating a herculean modernization effort. SCHOTT sees an excellent opportunity for its products to play an active role in this transformation process, particularly in the home appliance and pharmaceutical industries. Russia’s home appliance market is back on track for growth. The sales decline that resulted from the financial and economic ­crisis was only a blip in Russia’s otherwise dynamic development. Sales are gradually climbing back to nearly 3.5 million units for refrigerators and 2.5 million ovens per year.

International industry giants and SCHOTT customers like Italy’s Indesit, Bosch-Siemens from Germany, Turkish manufacturers Arcelik and Vestel, as well as LG Electronics from Korea have long had local production facilities for the Russian market. The market for processed flat glass for use in household appliances is valued at roughly 20 million euros. In light of that fact, SCHOTT moved decisively in 2007 to launch its own facility for flat glass processing near the Russian city of Nizhny Novgorod. The major processing steps involve the cutting, grinding, drilling, printing, and thermal toughening of soda-lime glass. The main products are glass shelves for refrigerators and glass panels for ovens. The company currently employs nearly 100 employees there.
Russia’s home appliance market is back on its growth course. As the ­leading supplier of flat glass for white goods, SCHOTT feels it has good chances here – by offering top quality and customer-oriented service. Photo: SCHOTT/A. Sell
“The home appliance market will expand over the long term. As the leading provider of flat glass for white goods, our quality and service will help us profit enormously from this trend,” emphasizes Michael Schuhmann, head of the Flat Glass Business Unit at SCHOTT. The prospects look equally promising for high-quality ampoules and vials: forecasts predict double-digit growth rates. To jump-start business in Russia, SCHOTT built its own pharmaceutical packaging plant in 2010, also near the city of Nizhny Novgorod. “We were able to stay on schedule, thanks to the active assistance and support of the local administration. The first packaging products will roll off the assembly line in December,” Managing Director Sergey Mokhonko says in summing up the good news. The plant’s official inauguration is scheduled for the spring of 2011.

Previously, the SCHOTT plant in Hungary supplied the ­Russian pharmaceutical industry with primary packaging. The Russian plantworkers were sent to the Hungarian plant for training before they took up their new positions. With the ­inauguration of a new pharmaceutical packaging plant in Argentina in November 2010, a joint venture with the Japanese manufacturer of pharmaceutical packaging Naigai and the new production coming on-line in Russia, SCHOTT has strengthened its position as one of the world’s leading manufacturers of glass and polymer-based pharmaceutical primary packaging.
Photos: SCHOTT/A. Sell

Nizhny Novgorod – »Russia’s wallet«