RUSNANO Sells its Interest in Uralplastic-N to Strategic Investor Mondi Group

12 July 2016

RUSNANO announces sale of its interest in the portfolio company Uralplastic-N—one of the leaders of the Russian polymer packaging market. RUSNANO is selling its interest to the project's strategic investor, international packaging and paper group—Mondi.

RUSNANO joined the project in 2010. The inflow of investments allowed one of the largest Russian full-cycle plants manufacturing flexible polymer packaging to be built from the ground up in a short timeframe. Three new process technologies were implemented at the plant: the production of nanocomposites, their introduction into the composition of the film and the production of film modified with nanocomposites.

The use of nanocomposites allows it to be recycled, reduces the number of packing layers, its thickness and weight, and considerably increases its barrier characteristics.

The plant’s capacity is about 1,200 tons of flexible packaging per month, which is equal to approximately 500 million pieces of packaging for finished products.

Over the past two years, the company's revenue increased significantly and reached about 2 billion rubles in 2015. In Q1 2016 the company exceeded the target for revenue by 5% and EBITDA by 10%.

The production facility located in the town of Aramil, Sverdlovsk Region, is fitted with unique equipment for the production of nanocomposites—the only 10-layer extrusion line in Russia for the manufacturing of highly hermetic film and an unparalleled raw material batching system. These films allow the increase of the shelf life of products without the use of preservatives. The product portfolio of the company includes a wide range of packaging for the food industry (various types of flexible packaging for dairy products, meat, fish, seafood, spices and sauces), for household and personal care products, cement and dry construction mixtures and other industrial materials.

In the process of manufacturing its products Uralplastik-N relied on the development and increase in the use of domestic raw materials. An analysis and testing of raw materials, produced by Russian manufacturers, were conducted by the company’s own R&D-centre. Following the results of research, one changed the composition of the films produced, which allowed the replacement of imported components in a number of products by similar domestic ones without loss of quality. In 2015, the share of domestic raw materials increased to 44% as compared to 29% in 2014.

“The acquisition of Uralplastic supports the development of our Consumer Packaging business and strengthens our presence in the Russian consumer packaging market, complementing our existing plant in Pereslavl, near Moscow and allowing us to improve our offering to customers in this growing market,” said David Hathorn, Chief executive of Mondi Group.

“I’m proud of what we’ve achieved with Uralplastic. It has grown significantly over the years and it now joins a reputable international company that will ensure the future success of the business,” said Alexey Goncharov, co-owner of Uralplastic-N.

“A world class plant has been built within the six years of our participation in the project. This is a pure ‘greenfield’ project. The implementation of nanotechnologies, which constitute the core of the company’s products, has allowed the company to become a market leader,” said Dmitry Lisenkov, Managing Director, RUSNANO Management Company.

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 96 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.