Jan 22 2007
The Dow Chemical Company has started up its first ever production facility in Russia. The plant, located at Kryukovo, outside Moscow, will produce STYROFOAM™ brand extruded polystyrene (XPS) insulation boards for Dow Building Solutions, one of Dow’s market-facing business units.
The project reinforces Dow’s strategy to grow its performance business and to expand in new geographies, says Dow chairman and CEO Andrew Liveris. “The STYROFOAM facility is a significant milestone in Dow's efforts to expand in the fast-growing Russian economy,” Liveris says. “The company is evaluating further investment opportunities there, in partnership with key domestic energy producers.”
The plant also underscores Dow’s long-term commitment to supplying Russia and Eastern Europe with technologically advanced building materials that enhance the comfort of living and working environments through effective moisture management and energy conservation.
"Our strategic aim is to establish Dow as an important and integral player in the building industry in Russia,” says Kostas Katsoglou, business president, Dow Building Solutions.
“This strategy is built upon our global expertise combined with a strong brand and in-depth product and application knowledge."
Dow has been established in Russia since 1974, and its business there has been growing rapidly. The company had combined sales of about $350 million in Russia and the Commonwealth of Independent States (CIS) in 2005, about a 50% increase over the previous year.
"Dow is highly committed to Russia and the CIS as a key area for growth,” says Adriaan van den Berge, Dow general manager, Russia. “We look forward to continued growth in partnership with the tremendous potential of the Russian economic and domestic business community."
Dow is already working on a second production facility in Russia. Dow and Izolan recently announced the formation of a joint venture company (Dow Izolan) that will provide customer-tailored, polyurethane systems products to a growing customer base. The joint venture will employ more than 100 staff and plans to construct a large, state-of-the-art production plant in the Vladimir area within the next two years.