NIKOMAG

Nanostructured Magnesium Hydroxide and High Purity Synthetic Magnesium

Operating Factories

Shareholders in Portfolio Company 
RUSNANO, NIKOCHEM Group, Sberbank

Industry Sector 
Nanomaterials

Production Location 
Volgograd
Jobs to be created: 150

Investment Started:  2010

Total Budget

3.08  bln rubles
Co-investment by RUSNANO
1.28  bln rubles

Production of nanostructured magnesium hydroxide with modified surface and high purity synthetic magnesium

RUSNANO and NIKOCHEM Group, a leading chemical holding company in Russia, are participating in a major investment project for production of two products: a flame-retardant additive of nanostructured magnesium hydroxide with modified surface and high purity synthetic magnesium. Total investment in the project is exceeds $100 million.

Nanostructured magnesium hydroxide with modified surface is in high demand for production of plastics and filled (co)polymer compositions based on PVC, PA, PS, PP, PE, PET, production of paper and paperboard, as a neutralizing agent for water treatment, and as feedstock for the pharmaceutical industry. High purity synthetic magnesium is used in the production of transformer steel for insulation blanket formation, as a vulcanizing agent for rubber production, as a filler in production of rubber, plastics, putties, adhesives and for production of refractories. It is also used in medicine and cosmetics and as a component of drilling fluids.

The project aims to create a company that will become a world market leader. Competitive advantages of the project are its raw material base of bischofite deposits and lengthy extraction licenses. They ensure the portfolio company of raw materials for the next 150 years. In addition, the company has an excellent infrastructure base and a professional management team with many successes in the chemical industry. The project is socially very significant. Nanostructured magnesium hydroxide, a non-toxic inorganic flame-retardant additive, will dramatically reduce property loss from fire, which in Russia is calculated in the billions of dollars, and deaths from smoke and gases that accompany fire.

Areas of application

  • Nanostructured magnesium hydroxide with modified surface: plastics, paper and paperboard, neutralizing agent for water treatment, feedstock for pharmaceutical industry
  • High purity synthetic magnesium: transformer steel for insulation blanket formation; production of rubber, plastics, putties, adhesives; production of refractories; oil and gas drilling; medicine and cosmetics

Market

  • Producers of soft cable compounds, industrial rubber goods, floor coverings, special polymer composites

Competitive advantages

  • Nanostructured magnesium hydroxide with modified surface: lower combustibility of polymers, greater safety if fire occurs, advanced production method
  • High purity synthetic magnesium: energy-efficient manufacturing process