Nuplex Resins BV, a European business of Nuplex Industries, has entered a memorandum of understanding (MoU) to form a joint venture (JV) company with KVIL Group (KVIL).
Nuplex said it will invest a capital of €3.5m ($4.5m) to build the JV plant, which is expected to be completed during the 2012 March quarter.
Under the MOU, the JV company will initially be responsible for the exclusive sales and marketing of resins produced by both the companies.
Nuplex said the JV also plans to build a resins manufacturing plant in Belgorod, Russia, within the next two years, which is estimated to cost around €20m ($25.7m).
Nuplex chief executive Emery Severin said as the Russian coatings market continues to grow, the joint venture with KVIL will enable them to participate in this growth.
"With a number of our large multinational customers expanding their Russian operations, the JV provides us with the opportunity to supply them and the growing local coating companies, with our high quality, European standard resins," stuff.co.nz qutoes Severin as saying.
Nuplex manufactures polymer resins are essential ingredients in a wide range of products used every day, from basic necessities through to consumer durables and luxury goods.
Nuplex said it will also distribute raw materials to the chemical, plastics, general industrial, food and pharmaceutical sectors in Australia and New Zealand.
In October 2011 Nuplex acquired a resin and coatings manufacturer, Viverso, from Bayer Material Science for €75m ($96.6m) and broadened its presence in Europe.
Nuplex has also purchased Acquos's Masterbatch unit for $23.5m, which is mainly involved in the production of concentrated pigments and additive masterbatches for the plastics industry.
