In 1994 the first
Cellulose-producing plant came into operation in the Volga region
(town of Kanash), and in the years 1995-96 two more plants came into
operation in Moscow. These plants produced 3000 tons of Cellulose per
year. At the same time a few companies started installing
Cellulose insulation in Moscow. They used machines imported from
Finland.
Initially, it was agreed that there needed to be a
massive advertising and education campaign so the building contractors and
the public would be aware that Cellulose was the best alternative to
mainstream insulation.
Unfortunately, this never happened. There was also a
problem with fire safety regulations. There wasn't a problem with the
Cellulose, as it was treated to be fire retardant as it is elsewhere in
the world. The problem was that the process of changing regulations in
Russia is a slow one, much as it is elsewhere in the world. Cellulose was
not permitted by regulation to be installed in multi-level structures at
that time.
The lack of advertising and public awareness efforts
coupled with the single story structure regulation and the VERY high price
of imported blowing or spraying equipment ($20,000 US!) from Finland,
conspired to defeat the progression of the Cellulose Industry in Russia.
It is at about this time that the fiberglass
industry moved into Russia in full force, led by Pfleiderer, a German
fiberglass Company, and Isover, a Finland fiberglass manufacturer to
influence regulations to defeat Cellulose and now control the market. Of
the 5 main Cellulose Manufacturers that began the movement in Russia, only
one Manufacturer survives and is operating at scarcely 15%-20% of
production capacity, staying in business toward future hope of
reestablishing a viable share in the Russian Insulation market.
If one could read between the lines of this story,
that was submitted to us by the good people of Jupiter Insulation in
Moscow
www.jup.ru
, it would be easy to see the politics and infighting that went on over
there. We experienced and are experiencing the same here in the US.
Fortunately, the Cellulose Industry here was a bit stronger before the
battle ensued and there are people and Associations willing to take up the
battle to promote a healthy economy through fair business practices. That
isn't to say the battle is won. What happened in Russia, could very well
happen here. Constant vigilance, an effective public awareness program,
and a unified industry approach will insure an ever growing increase of
market share for Cellulose in this country's insulation market.
Thank you again, Jupiter Insulation in Moscow for
this excellent story. Please visit their site, as they have some
interesting products for export that involve combining insulation with
decorative building facades...
www.jup.ru
The site is in both English and Russian. Email Paul, who emails good
English and can explain what insulated decorative building facades are... yupiter@ranet.ru
Paul is interested in import/export opportunities.