LANEX established a joint venture in Russia

LANEX took an important strategic step to strengthen its position on the market of Russia. At the end of November, the Chairman of the Board of Directors signed the deeds of foundation of a joint Czech-Russian venture LANEX – KANAT Ltd having its place of business in the city of Oryol in Russia. The joint venture in which the share of LANEX a.s. makes 66% and the share of the Russian partner 34% has been entered in the Commercial Register of the Russian Federation in mid-December. The sphere of business of the joint venture is production of technical polypropylene fibres and production of fibre ropes and sale of these products on the markets of the CIS, especially that of Russia. The strategic intention is to support further development of commercial activities of the company on the CIS markets to which LANEX has been exporting successfully for more than 10 years. On those markets, domestic production is perceived positively by the customers and this step will do away with the competitive disadvantage of import duty and high transportation expenses. The basic capital of the joint venture is 50.3 million RBL (1.23 million EUR). The first stage of the project is production of technical polypropylene fibres which will start in mid-February 2011 on supplied new machines. The second stage, production of dynamic and static ropes, is planned by the founders to start in autumn 2011.

Thanks to the long-term engagement in this market, LANEX enjoys a very good reputation among the Russian buyers and regards the Russian market as a perspectively very important market due to its potential and expected growth.