RUSNANO will establish a new Joint Venture to invest into flexible packaging

RUSNANO anounced that they will invest into new project for a new generation flexible packaging materials fabrication.

Danaflex Ltd. from Kazan will act as co-investor and major performer in that project. Scientific and technical support and assistance will be rendered by Kazan State University and Kazan State Technology University.

It has been decided to establish a new project company with participation of RUSNANO (49%) and Danaflex Ltd. (51%). RUSNANO investments part shall be 1.2 bln. Rubles – all as a starting capital for the new enterprise. Danaflex Ltd. shall invest the manufacturing facility and monetary deposit in the amount of 1.25 bln. Rubles to the new company’s equity capital.

The production of that new enterprise – high- barrier polymer films and flexible packaging materials based on that film would be addressed mostly for the packing of food, cosmetics, domestic chemicals, and forage packing.

The high – barrier flexible film allows thermo treatment and microwave preheat without unwrapping the produce. The most important advantage of that kind of films is the possibility of substantial reduction of preservatives and the shelf life extent not only for the food, but any produce wrapped by high – barrier film.

It is expected that the sales of these new products will reach 20,000 metric tons and will totally replace imported packing films. Most of the consumers are expected to be domestic, but part of the program could be exported.

The new project’s whole development cycle to be completed by 2016. The plan requires the equipment purchase and installation for 2009–2011, and the launch of production facility by 2011. It is expected that the calculated throughput would be achieved by 2013, and the return on investments in full – by 2016.

Russia only market share for multi-layer flexible packing materials has been estimated as 184 metric tons in 2008 (33.2 bln. Rubles). The experts expect that it will grow 14% per year in the next 7 years.

Eugene Birger