Russia faces shortage of raw materials for refrigerators and auto parts

More than 20 Russian companies have complained to the authorities about a shortage of polymethylene phenyl isocyanates (MDI), a raw material used in the automotive and construction industries, as well as in the production of household appliances. They wrote about this in a letter to Industry Minister Anton Alikhanov, RBK reports , having obtained the document.

As the publication notes, the shortage of MDI, which is needed in the production of mounting foams, sealants, self-leveling floors, pipes, refrigerator components and auto parts, began in Russia after the introduction of the 14th package of EU sanctions at the end of June this year.

As emphasized in the letter from businesses to Alikhanov, MDI is not currently produced in industrial quantities in Russia, and the entire volume of raw materials consumed by domestic industry is “100% import-dependent.”

Before the introduction of the relevant sanctions by Western countries, the main suppliers of MDI to Russia were companies from Europe, the USA and Japan. However, now they have stopped deliveries, and Chinese suppliers are unable to meet the existing demand for this raw material in Russia. In addition, deliveries are further complicated by the constant problems with bank payments.

According to the authors of the letter, recently Wanhua Chemical Group, which was the largest Chinese supplier of MDI to the Russian market, announced a complete stop in accepting orders for the supply of raw materials to Russia and Belarus. "This decision was a shock to the industry, since given the limited stock of market participants and the limited shelf life of MDI, maintaining this situation over the next few months will entail the risk of shutdown and bankruptcy of existing production facilities," the letter emphasizes.

Representatives of Russian companies reminded the minister that the need to organize MDI production in Russia has been discussed for several years. This issue was even included in the list of priority areas for the implementation of the Strategy for the Development of the Chemical and Petrochemical Complex until 2030, which was approved back in 2014.

Anton Guskov, a representative of the association of trading companies and manufacturers of household electrical and computer equipment RATEK, spoke about the problems that the MDI deficit creates for Russian enterprises, using refrigerator manufacturers as an example.

He explained that MDI is required to produce a special foam, which is then used for thermal insulation. Accordingly, without MDI, it is impossible to produce refrigerators in principle.

"The only way to solve this problem is to start producing this material in Russia," Guskov said, noting that due to its chemical properties, it is impossible to create large reserves of MDI. He explained that MDI has a short shelf life, after which the raw material crystallizes and becomes unsuitable for use in production.

To get the main news faster, subscribe to our telegram and twitter .