The Russian nonwovens and technical textiles industries is facing a decline in demand in the domestic market. The biggest rates of decline have been observed in the middle and high price segments. One reason for the decline in demand is the rapid devaluation of the national currency.

During January to October this year, the volume of production of technical textiles and nonwovens in Russia declined by about 15 per cent compared to the same period last year. And the decline is expected to continue until the end of the current year. In the case of technical textiles, the increase in prices for raw materials, in particular synthetic fibers and yarns, has resulted in a significant increase in prices for finished products and there is a possibility that prices will continue to grow during the next few months.

The industry is facing growing production costs, in particular for energy and labor. In contrast to many European Union and Asian states, where governments often subsidize building of large facilities for the production of technical textile and nonwovens, Russia’s industry gets small support from the government.

The situation is aggravated by the reluctance of national banks to provide loans to domestic producers of nonwovens and technical textiles.