ARCUS industrial group has conducted the Russian welding electrode market assessment

For a long time welding consumables production in Russia was on the decline. External indirect factors prevented its stabilization. Nevertheless, adoption of competent decisions and their fast implementation contributed not only to a new lease of life of the industry but also to a record growth of production volumes.

In 2023 the total volume of the welding electrode market in Russia was 149 thousand tons:

• it’s by 5 % bigger than the previous maximum indicator registered 7 years ago in 2017;
• it’s by 12 % bigger the same indicator of 2022.

 
The Director of Magnitogorsk Electrode Plant included in ARCUS industrial group, Mr. Romanenko Maxim Vladimirovich told about significance of these figures at the Russian marker of welding production and actions taken to achieve them.
 

“Previous five years was not easy for manufacturing of welding equipment in Russia.
THE FIRST CRISIS WAVE was caused by temporary shutdown of Losinoostrovskiy Electrode Plant (located in Moscow). For a long time, the plant has been the industry leader and ensured over 30 % turnover of the welding electrode market.
 

In 2018 following its shutdown none Russian manufacturer could meet demands for products, moreover even imported goods did not compensate for Russian production volume fall and losses amounted to 12.8 %. In 2019-2020 the market settled down but indicators have not returned to figures of 2017.
 

The Special Military Operation has caused the SECOND CRISIS WAVE, namely the series of related events. In addition to obvious exit of international manufacturers from the Russian market the crisis was provoked by shutdown of Svetlogorsk Welding Electrode Plant (SWEP) located at the Republic of Belarus because its owner was PlazmaTec Ukrainian company. The share of supplies of Belorussian SWEP to the Russian market was over 17 % of the total volume.
 

The second crisis wave simulated the new development stage of the welding material market in Russia including domestic production:

• product import from friendly countries has increased significantly;
• domestic production upgrade.

 
Figures also proves the growth beginning: despite the evident deficit of welding products in 2022, indicator grow was 1.5 % by the beginning of 2023.

Great contribution to the development of the welding consumables production industry in Russia was association of the largest manufacturing plants in joint industrial group ARCUS:

• “CZSM” Cherepovets Plant of Welding Wire in Cherepovets;
• “MEZ” Magnitogorsk Electrode Plant in Magnitogorsk;
• “CZSM-Ural” Plant of Welding Wire in Magnitogorsk;
• “SMS” Plant of Welding Wire in Dolgoprudny;
• Electrode Plant of “Ameta Electrode” in Svetlogorsk.

 
In the process of merging large plants into a single holding company, the management of ARСUS Industrial Group has implemented a number of critical actions necessary for stable growth:

• equipment upgrades and commissioning new facilities;
• launching additional work shifts at all enterprises of the holding company;
• purchase from the Government of the Republic of Belarus and launch of Svetlogorsk Welding Electrode Plant which was offered for sale.

 
The result was not slow to arrive: even in 2023 the production volume growth was 16 % which by 10 % bigger than in previous year of 2022.