No rush to Russian label show.
by Penhallow, John
With excitement mounting in the run-up to Labelexpo Americas, spare
a thought for the Russian label show, last held in Moscow in the spring
of 2006. From its beginnings in 1995, Etiketka-LabelShow grew rapidly,
attracting over 100 exhibitors and tens of thousands of visitors in its
heyday. After the rather limited success of the 2006 event the
organizers announced that the show would henceforth be held in the
spring of even-numbered years. Originally announced for March 2008, the
show has now been rescheduled for October 7-10.
Visitors to the show's web site (www.labelshow.ru) will note
that so far just 18 exhibitors are listed. Whatever the shortcomings of
previous Moscow shows, it will be a pity if major Western equipment
suppliers decide to boycott the Russian show this year. Russia's
industrial production was up nearly 5 percent in 2007 (compared with 2.3
percent for the US economy and just 1.3 percent for the Euro zone). With
crude oil topping the $100 a barrel mark and Russia's production
now having risen to over nine million barrels a day, a lot of Russians
are quite literally laughing all the way to the bank. Major Western
brand owners continue to open new production plants in Russia (both
Pepsico and Coca-Cola did so last year) and with massive investment
continuing in supermarkets and other modern retail outlets, the demand
for all kinds of labels remains strong.
So far only a handful of Western narrow web converters have set up
business in Russia; their number was recently increased when
Toronto-based CCL Label, one of the world's biggest converters,
announced a 50/50 joint venture with Ilgar Mamedov, a well known
entrepreneur in the Russian label business. The Russian partner's
contribution will be in the form of two label converting plants, Kontur
Plus in Moscow and Asterix in Saint Petersburg. The Asterix plant is
equipped with three modern Gallus presses including a servo-driven
TV410S; the two Russian companies, both of which specialize in PS label
production, had total sales of $26 million in 2007.
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