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Kotovsky Nonwovens Plant Plans to Double Polyester Production by 2025
Kotovsky Nonwovens Plant Plans to Double Polyester Production by 2025

Kotovsky Nonwovens Plant Plans to Double Polyester Production by 2025

  • 15-Jan-2024 3:39 PM
  • Journalist: Gabreilla Figueroa

The Kotovsky Plant of Nonwovens, situated in the Tambov Region, is gearing up for an ambitious expansion plan to double its polyester production. This strategic initiative involves a substantial investment of nearly 141 million rubles, with 91 million rubles secured through a preferential loan from VEB.RF. The loan, granted at a minimal interest rate of 1% per annum, is earmarked for the acquisition and deployment of essential equipment that will facilitate the augmentation of polyester production. Once implemented, this project aims to elevate the annual production of polyester from 26 million to an impressive 50 million linear meters.

The driving force behind this expansion is a targeted effort to address the shortage of polyester in the domestic market. The imposition of sanctions by unfriendly nations has resulted in a decline in the supply of goods containing polyester, including clothing, bed linen, furniture, and soft toys. Consequently, there has been a surge in demand for such products among domestic manufacturers. The Kotovsky Plant of Nonwovens, recognizing this growing need, seeks to bridge the gap by significantly enhancing its production capacity. The timely execution of this project is poised to play a pivotal role in meeting the escalating demand for polyester-based products within the country.

A key aspect of the project is its broader impact on import substitution, particularly in light of the current geopolitical landscape. The report emphasizes that the increase in polyester production aligns with the imperative of reducing dependence on external sources, thereby contributing to import substitution—a crucial goal for the Russian economy. The Kotovsky Plant of Nonwovens, under the guidance of entrepreneur Andrey Letuchev, recognizes the strategic importance of such initiatives in fostering economic growth and sustainability.

Maxim Egorov, the regional head, underscores the significance of new investment projects as drivers of regional economic growth. Importantly, he highlights the role of effective support measures, coupled with the initiative and responsibility of entrepreneurs and investors, in making such expansions possible. This collaborative effort reflects a commitment to bolstering the regional economy and supporting the overall development of the Russian economy.

This expansion plan aligns with a broader trend in the region, as evidenced by the Neotex nonwovens plant in the Tula region. With a substantial loan from the Industrial Development Fund amounting to 704.7 million rubles, Neotex aims to establish a complex for the production of polypropylene nonwovens, projecting a capacity of 12.2 thousand tons annually. This concurrent initiative emphasizes the industry's commitment to diversification and the development of various nonwoven materials.

As of the end of 2022, the Kotovsky Plant of Nonwovens reported robust financial performance, with revenue totalling 4.4 billion rubles and a net profit of 160.4 million rubles. These figures underscore the company's financial stability and position it as a key player in the Russian nonwovens manufacturing landscape.

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