Turkish toilet, Russian elevator: builders told what high-rise buildings are now made of

The problem of the dependence of the Russian construction industry on imports was recognized several years ago, before the introduction of sanctions in 2022. Moreover, they announced her decision “in general terms”.

So, in 2018, the Deputy Minister of Industry and Trade of Russia Viktor Evtukhov noted that the country can fully provide for itself both in terms of basic and finishing materials. And according to the co-owner of one of the major manufacturers of building materials, Sergei Kolesnikov, the shortage was observed only in plumbing and a number of finishing materials.

The motto of this very recent time, when import substitution was realized, but was not yet vitally important, can be a phrase said almost five years ago by Denis Sokolov, head of the research and analytics department for Eastern Europe at Cushman & Wakefield. “We are no longer talking about import substitution for individual goods and services,” the expert said at the time. “Everything that was needed was replaced, and what was not replaced means that it is not necessary.”

For almost a year now, this issue has moved into a purely practical plane: import substitution, including in construction, is testing its strength. And, judging by the fact that construction does not stop, in general, this test is passed. True, not without the usual element of social stratification in our conditions.

“In the segment of high-budget real estate, the share of imports can reach 50% of the total cost of construction and installation works,” Yuri Nemanezhin, managing partner of a development company, noted in May last year, assessing the effect of sanctions. According to him, elevators, engineering systems, furniture, and finishing materials remained dependent on imports.

Over the months that have passed since then, Russian developers have established alternative supplies – and not only through parallel imports, but also with the replacement of European brands with Turkish, Chinese, Indian ones. In other words, the absence of certain positions – so that the construction site would stop because of this – is not observed. However, the problem of the cost of materials and equipment remains (and even worsens in 2023).

Therefore, developers are fighting to exclude “currency” components: a year ago, only in the elite class, the share of imported materials was up to 50%, while in the business class, imports were only 30, and in mass housing no more than 10%. And the point seems to be that imported materials will become, as it was in the USSR with “Czech toilets”, an attribute of only the most “difficult” housing – although, after all, “simple”, if we are talking about Moscow, continues to cost many millions rubles for an apartment.

Rough base

As of the middle of last year, more than 20% of sheet glass used in construction was imported, a similar situation has developed with some types of facade cladding. The remaining materials were imported by only 5% (and already last year there was a tendency to reduce them).

However, some representatives of developers and contractors last fall claimed that “brick, sealant, mounting foam, self-tapping screws are 100 percent imported.”

It turned out to be much easier to deal with dry mixes: they were and are being produced not only under Western, but also under Russian brands, so here the matter was limited only to a redistribution of the market.

– Russian mixtures are generally normal, the consumer will not feel much difference, – Artem Shakirov, a contractor working on the construction of cottages, told MK. – Of course, there are nuances in terms of ease of use, a real sealant or glue is better diluted, more homogeneous in composition. But this is a matter of convenience of work, the quality will be the same if the technology is not violated.

Problems manifested themselves, however, at the next technological level: many components for the production of finishing materials were imported from the West. In particular, according to the data of the first half of 2022, titanium dioxide, impact stabilizers, additives, components for polyurethane foam and highly purified chalk for window profiles were on the list of imports. As well as sealants, sealants and laminating films.

According to Anton Solon, Executive Director of the Association “National Association of Manufacturers of Building Materials, Products and Structures” (NOPSM), the issues of import substitution for the basic ingredients of building materials, on which “important technical characteristics and product properties that consumers are accustomed to” depend, have not been fully resolved. According to the expert, in the current situation, in a year, difficulties will begin with the production of cement, aerated concrete and other basic materials, and not just finishing ones.

– In the production of roofing elements, there are indeed imported compositions, it is primarily about the coating, – a representative of one of the largest roof manufacturers in Russia told MK. – In the coming months, there are no problems with these squads, in other words, there are good reserves. We are also working on localization of production, but new suppliers will require pilot testing to ensure protection for roofs. Therefore, I recommend not to wait and buy proven materials now.

For finishing

In finishing materials, progress in terms of import substitution was especially noticeable. So, since 2017, several plants for the production of polyurethane foam have been built (then 80% of this market belonged to foreign manufacturers). A dependence of 30–70% was recorded in the production of PVC roofing membranes, polymeric thermal insulation, face clinker bricks, glass, construction chemicals, and mounting foam.

Window profiles – and plastic windows, as the most heat-efficient ones, have become a truly popular product in our country – turned out to be on the priority list for import substitution. As in many other industries, this production was considered largely localized, but the key links in the technological chain remained imported.

Over the past year, however, another site in the Oryol region has been added to the window manufacturing plant in St. Petersburg – it specializes in components and fittings. Similar processes are taking place with other components – for example, new plants for the production of paraformaldehyde, which is necessary for paint and varnish coatings of walls and floors, have been opened.

“I tried domestic profiles of the last months of production, imported ones,” Anton Shalnov, a window installation master, told MK. – The profiles themselves are completely ordinary, I don’t think that they should differ in anything. The seals were supplied by Chinese, they, frankly, do not inspire much confidence. But the fittings are worse than the European ones that were installed in the 2000s, but better than the imports of recent years. You can live.

Oddly enough, one of the sectors where the shortage was really felt was playgrounds – they are often installed as an element of improvement during the construction of residential buildings. European sites (primarily French-made) familiar to business and elite class houses turned out to be inaccessible. However, there is no particular problem here – the choice is wide even among domestic manufacturers.

“Playgrounds are distinguished not so much by quality as by “unusualness,” Anatoly, chairman of the board of one of the Moscow HOAs, who recently renovated such a playground near the house, told MK. – In rich houses, there is a request that the playground be fashionable, unlike ordinary yards. Not only swings, carousels and a slide, but all sorts of complex “web” structures. Not painted metal, but stainless steel. Not plastic, but plywood, and so on. I searched, and it turned out that this suite is also from our manufacturers. It’s just that they have it in the catalogs, but no one has seen it in real life, because the city does not order it.

Appliances and plumbing

High-tech equipment remains one of the most “under-imported” areas in construction, primarily elevators, engineering systems, and telecommunications. The share of imports, according to a number of developers, has recently exceeded 80% here – however, supplies mainly came from neighboring countries, so there was no sharp gap in 2022 either.

More often than others, they talk about problems in import substitution of elevator equipment. However, in this area over the past year there has been a breakthrough – a number of domestic plants have mastered, in partnership with companies from friendly countries, most of the nomenclature. Including we are talking about high-speed elevators. So far, import options have also remained – for example, Moscow developers work with brands from China and South Korea.

“The only problem is consumer distrust,” an employee of the engineering department of a large development company told MK. – If there are elevators with domestic nameplates in a high-rise building, the buyer can leave. It is believed that our high-speed elevators do not know how to do. Although this is not the case – the only problem that there is with high-speed elevators concerns maintenance. So I would rather be afraid of imported elevators of the previous years of production – it will be more difficult to get spare parts for them now.

There is a sector of the market where Russia is practically not represented so far – this is plumbing. A few years ago, the market was divided between European (premium) and Chinese (standard, economy) manufacturers. Now Europeans who have left the market are being replaced by manufacturers from China, which have premium models in their lines, as well as brands from Turkey and India.

“I haven’t tried Indian plumbing yet,” contractor Artem Shakirov tells MK. – In Chinese, I’ll say that you can work with it, but you need to understand the technical characteristics in full, and not just what is indicated in the information of the online store. To know, for example, the materials from which it is made, to know about the thread for taps – whether it will be possible to replace it later, if anything. Turkish faucets, I know, are distinguished by a particularly pretentious appearance, so they will replace “Italy”. The quality is better than cheap China, but worse than expensive.

However, the issue price remains an additional stress factor. Prices for plumbing fixtures have risen, and now the same Turkish product can cost about the same as German and Italian models cost in pre-Covid times. And you have to take it, because there are no analogues.

Finally, the market for smart home components has almost completely changed due to sanctions. Premium real estate developers, who previously preferred “branded” Western components, have now almost completely switched to Chinese counterparts – they were known on the market before, as they were sold in building supermarkets for self-equipping a house.

“In general, little has changed here in essence, since European brands also produced such components primarily in China,” Mikhail Tsvetov, an electrician with experience in installing smart home systems, told MK. – The only thing is that it will be more difficult to set up the equipment: the Chinese are famous for their poor management consoles, it is enough to compare “branded” and Chinese WiFi routers.

What to do?

In May last year, new schemes for the supply of components were already described in general terms – the materials had to go (and eventually went) through the CIS, Arab countries, India, China, even Africa. This worked during several months of the “weak” dollar, at the official rate of the Central Bank. However, now that the trend towards the growth of currencies against the ruble has returned, parallel imports no longer fit into the economics of projects, developers say.

Fortunately, legislative regulation has now been weakened in terms of replacing components with affordable analogues – this was done by the Decree of the Russian government dated April 19 last year No. 701. An import substitution catalog has also been created, which is about to come into force as an official document.

“We have agreed with the Ministry of Construction and Housing and Public Utilities of the Russian Federation that the catalog will be approved as mandatory for use when reviewed by state expert examination bodies,” said Anton Moroz, vice president of the National Association of Builders (NOSTROY) in November last year. The use of this catalog makes it possible to replace components with more affordable ones in Russia without re-approving the design documentation.

However, now it is much more important to establish a full cycle of production of building materials in Russia – in other words, to expand those bottlenecks in technologies, due to which import dependence persists. For this, it will be necessary to revive the entire scientific and industrial complex – starting from construction chemistry, the production of electronic components and machine tools. Perhaps a technology upgrade program for the military-industrial complex will help with this – if (when) the defense industry finds resources for civilian projects.

But there is still no other way – in a year or two, as representatives of developers interviewed by MK say, a shortage of construction equipment may begin. And here, in any case, one cannot do without the rise of mechanical engineering.