Armacell shuts Russia plant after Thermaflex insulation deal.
Petrotahlil :Global flexible foams maker Armacell Group is closing down its insulation manufacturing plant in Russia a little over three years after the group opened the facility.
Luxembourg-based Armacell, which launched the plant in Lobnya, north of Moscow early in 2016 as part of its strategy of continuing international growth, has now sealed a partnership deal in Russia with Dutch piping insulation specialist Thermaflex.
Under this commercial collaboration and distribution agreement, the firms will jointly provide an expanded range of thermal insulation products to customers across Russia and in some CIS countries.
Thermaflex will operate as the exclusive distributor for Armacell products across the Russian Federation. Initially, this partnership is set to run for a five-year term “with multiple extension possibilities”, according to Armacell.
Thermaflex, headquartered in Waalwijk, Netherlands, first established a sales and support office in Moscow in 2001. Several years later, the firm launched a local production site and five regional sales offices across Russia.
The Netherlands company produces a range of insulation material, including extruded polyethylene foam sheet, pre insulated pipe and moulded accessories.
Armacell, which has been present in the Russian market since 2008, set up its current subsidiary OOO Armacell Rus in March 2010. It had national warehouses located in Novosibirsk, Krasnodar and St Petersburg since 2012.
Since 2016, the Armacell Russia plant has supplied major distributors and general construction firms along with their installers, not only in Russia, but also in neighbouring Belarus, Kazakhstan and Azerbaijan.
“Our customers will benefit from a combined elastomeric and thermoplastic product offering and enhanced customer service levels,” commented Patrick Mathieu, Armacell Group’s president and chief executive.
Armacell’s elastomer products and accessories will be manufactured through the group’s European production network, he added.
Thermaflex CEO Hans de Haas said he was delighted to be working with Armacell, “a global industry and technology leader”. “Together, we will strengthen our presence in Russia and jointly serve the growing domestic demand for high-quality insulation solutions”, he said.
Both parties to the Russian joint venture partnership have agreed to remain silent on the financial terms of the deal.
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