Boryszew Plastic Rus says the current economic crisis can also provide opportunities and it intends to stay the course despite a plethora of economic challenges besetting the country.
Addressing the recent Russian Automotive Forum (RAF) in Moscow, the company, which produces automotive interiors in the Nizhny Novgorod region, echoed comments made by other suppliers who insisted they would not leave despite the difficulties.
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“Quitting the Russian market would be too difficult because we have invested a lot of money,” Boryszew Plastic Rus chief financial officer, Bogdan Marciniak told delegates at the RAF. So we are mired, we can’t get out.
“Maybe it is a good time to open a new business in Russia. We need political stability, that is the main factor for anyone who would want to stay.
“Crisis is an opportunity as well. You can buy cheaper real estate, cheaper labour. You can [also] put through in your company, ground-breaking decisions. We have a strategy for the next five years…development and looking for opportunities…we are watching other market segments closely.
“With the ruble weakening, it helps us to improve our position vis-a-vis other facilities outside Russia.”
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By GlobalDataLocalisation – or import substitution to use a phrase employed frequently during the conference – has become more attractive given the weakness of the ruble but the Boryszew Plastic Rus CFO pointed out domestic alternatives were not always available.
“Sustainable quality is what we need he,” added. “We can’t buy everything – raw materials and components in Russia. Sometimes it is impossible to find them.
“It is important import substitution would meet the requirements of clients.”
Speaking at the same Forum, Visteon Avtopribor Electronics general director, Alexander Kychkov, nonetheless stressed the need to believe in the Russian market’s ability to bounce back, a common theme during the conference.
“The question I am asking myself is to what extent [an] OEM will have not even the resources but the patience, optimism and belief, because it is clear the market will one day, probably not now, stop falling.
“I believe in Russia and I urge, plead with others to believe in Russia. Let’s believe in market forces and let’s stay optimists – to play with the cards we have been dealt.”
