Brussels-Huntsman Corp. and Russian systems house NMG announced 1 Feb that they have set up a Russia-based joint venture, ZAO Huntsman-NMG. The new unit will make and sell polyurethane systems, targeting high growth markets in adhesives, coatings, elastomers and insulation, in Russia and other areas in the former Soviet Union.
No financial terms were disclosed.
The ZAO Huntsman-NMG JV will target high growth markets in the region, a Huntsman statement said.
"This joint venture marks the latest step in our plan to build strong positions in rapidly developing markets, a key component in our global growth strategy," said Tony Hankins, president of Huntsman's Polyurethanes division, in the company statement.
Huntsman-NMG will be based at NMG's existing headquarters in Obninsk, close to Moscow, and will be managed by general director Sergey Ovcharov. The company has over 200 employees, with state-of-the-art manufacturing and distribution facilities in Obninsk and a network of branch offices across the region, as well as in Belarus and the Ukraine.
Sergey Ovcharov, ceo and founder of NMG, said that a joint venture with major polyurethanes manufacturer Huntsman "will enable NMG to further accelerate its rapid growth and technology development." NMG and Huntsman's ten year history of commercial links represents "a guarantee for this venture's smooth operation in future," Ovcharov added.
The JV will serve a vast geographic area containing 300 million people and "enjoying exciting growth rates," said Hankins, adding that "NMG's dynamism, skills and market leadership position will greatly facilitate our access to some of the more specialised polyurethanes markets."
NMG was set up in 1992 and has grown to be one of the leading polyurethanes companies in the former Soviet Union, said Huntsman. It supplies a industries including construction, footwear and insulation with specialised polyurethanes systems optimised to meet specific user needs, the statement added.
The news of this systems venture by Huntsman in Russia follows a mid 2006 announcement by Dow Chemical Co. that it was setting up a systems house with Russian systems business Izolan. "