Russian plastics and chemicals producer PJSC KuibyshevAzot is set to invest in the construction of new production facilities for composite materials in eastern Germany.
The company intends to spend around €2.99m on the operation which will be located at Rudolstadt in the Thuringia region. Building is expected to start later this year with start up due in 2020, according to European media reports.
KuibyshevAzot (KuAz), based in Togliatti in southern Russia, manufactures polyamide 6 (PA6) and its intermediate caprolactam, as well as industrial yarns and fertilisers. In 2011, the group acquired the German synthetic fibres producer STFG Filamente GmbH. of Rudolstadt.
That asset purchase, reported to have cost KuAz more than €12m, was in line with its dual strategy of boosting output of value added products and increasing caprolactam processing.
KuAz's takeover of STFG Filamente, with its then nylon thread production capacity of 4,000tpa, offered the Russian firm access to the stable European synthetic industrial threads market. Customers are manufacturers of technical textile products. KuAz said at the time it had plans to raise that output.
Today, STFG Filamente produces PA6 yarn as well as polyethylene yarn for use in fields including automotive, fashion, health, medicine and high-quality technical applications.
It was early this month that KuAz's board of directors gave the green light to the business plan in Germany which will see the creation of a 22,000tpa capacity composites plant.
In 2018, KuAz reported a record year in its output for most of its product areas. During the year it produced almost 152,000tpa of PA6, 210,000tpa of caprolactam and 5,600tpa for industrial yarns.
Capital investment, including new construction projects and retrofit schemes reached nearly €114m in 2018. The firm recorded a net profit of €95m from consolidated sales worth €797m.