In spite of huge growth with up to 15% per year on the thermoplastic market in Russia, the
market is still underdeveloped compared with the rest of Europe.
One of the fastest growing economies in the world is the Russian economy and now also several of
the CIS countries. The plastic pipe industry and the plastic industry in general are experiencing
phenomenal growth. Building and infrastructure and food packaging have been particularly strong
growth areas.

The building and infrastructure in Russia and CIS countries will continue to set growth benchmarks in
the coming years. Improving standards for finished goods and infrastructure means greater quality
demands.

Russia is experiencing not only tremendous growth in new buildings for housing, office space,
warehousing and factories but also in renovations of existing housing stock. It is estimated that
nearly two-thirds of the housing stock is more than 30 years old of which roughly 60% requires
renovation. Demand for new housing is likely to be spurred on further by the 'Affordable Housing'
project implemented in 2006, by the mortgage boom accelerating as interest rates go down and by
the emerging Russian middle class.
High growth is seen and can be expected in CIS states with large oil and gas reserves who have the
potential to develop substantial petrochemical and polymer production facilities.

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