Akzo Nobel Agrees Joint Venture for Decorative Coatings Production in Russia.ARNHEM, Netherlands--(BUSINESS WIRE)--Dec. 23, 1997--Akzo Nobel has signed a letter of intent with Russia's ZAO ZAO Zakrytoe Aktsionernoe Obschestvo (Russian: Closed Joint Stock Corporation) ZAO Zenith Angle Offset ZAO Aluminium Doped Zinc Oxide (material for producton of organic light-emitting diodes) Roschimneft to establish a joint venture for the production and marketing of decorative coatings in Russia. Financial terms were not disclosed. The Russian joint venture will be a greenfield investment A Greenfield Investment is the investment in a manufacturing plant, office, or other physical company-related structure or group of structures in an area where no previous facilities exist. to build a new plant for decorative coatings production just east of Moscow. Work has started on designing the factory, as well as on the organizational planning. "This joint venture is a further step in our strategy to build a strong and solid position in Eastern and Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. ," said Jan Andersson Jan Andersson (born 17 March 1947 in Helsingborg, Scania) is a Swedish politician and Member of the European Parliament. He is a member of the Social Democratic Workers' Party of Sweden, which is part of the Party of European Socialists, and is vice-chair of the European , general manager of the Akzo Nobel Akzo Nobel is a multinational company, active in the fields of healthcare products, coatings and chemicals. Headquartered in Amsterdam, the Netherlands, the company has activities in more than 80 countries, and employs approximately 62,000 people. Decorative Coatings unit. "Akzo Nobel is already among the leading decorative coatings suppliers in Eastern and Central Europe with paint production in Poland, Hungary, and the Baltic States. We also have a substantial export of coatings and woodcare products into Russia, mainly from Finland and Estonia." Roschimneft, a Russian Joint Stock company set up to assist enterprises and mobilize resources for investment projects, will contribute land for the plant, as well as its considerable knowledge of the business infrastructure in Russia. Akzo Nobel will contribute the necessary know-how for product development, production, marketing and sales. "Akzo Nobel has, together with our partner, great ambitions for the Russian market and the joint venture will be the platform for our near and future growth in Russia," said Mr. Andersson. Akzo Nobel, headquartered in Arnhem, the Netherlands, is a market-driven and technology-based company, serving customers throughout the world with healthcare products, coatings, chemicals, and fibers. The company employs 70,000 people and has activities in more than 60 countries. In 1996, consolidated sales aggregated NLG NLG The ISO 4217 currency code for the Dutch Guilder. 22.4 billion (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 12 billion). Coatings activities represented NLG 7.4 billion, or 33% of total sales. Akzo Nobel is a world-leading producer of paints, finishes, stains and synthetic resins for industrial applications, professional users and the do-it-yourself sector. CONTACT: Akzo Nobel Nick Sommers, 312/906-7612 |
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