Henkel Surface Technologies sets up Joint Venture in Russia
Henkel's contribution to the joint venture will consist of technical expertise, machinery, and engineering. OAO Plastik will provide the infrastructure, buildings, and sales organization. Henkel will be investing a sum of 1.7 million euro. The new company, a 50:50 joint venture managed by Henkel, will have about 55 employees. It is expected to generate sales amounting to some 1 million euro per year over the first three years and achieve a growth rate of approx. 20 percent in the subsequent years. By engaging in this joint venture, Henkel Surface Technologies is responding to the growing importance of the Russian automotive market. Russia's car output amounted to 1.2 million domestic-brand vehicles in 1999. Its production is scheduled to rise to 3 million vehicles by 2005.
Henkel Surface Technologies has been supplying imported products to the Russian automotive industry since 1998. These activities are to be reinforced in the context of the new joint venture.
The joint venture partner OAO Plastik is a manufacturer of automotive plastic parts such as impact absorbers, hat racks and interior door trim. OAO Plastik has 6,500 employees and reported sales of 180 million euro in 1999.
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