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BASF Coatings Extends Partnership with NLMK

Published on 2004-03-01. Author : SpecialChem


MUNSTER, Germany -- BASF Coatings and the Russian Novolipetsk Iron & Steel Corporation (NLMK) want to extend their cooperation by an additional five years. This arises from a joint agreement between both companies. According to this agreement, a second coil coating line with a capacity of about 200,000 tons of coated steel is to be commissioned in Novolipetsk in 2004.

BASF Coatings is the most important supplier of the Russian steel producer in the Central Black-Earth Region. Since 2001, the German company has been operating a Pevicoat unit in Novolipetsk, 600 kilometers south of Moscow. As the main supplier for both coil coating lines, the largest coatings manufacturer in Europe will now continue to expand the local paint mixing production.

Both companies are united by a long-standing partnership. Even during perestroika, BASF Coatings was able to form a trusting customer relationship with NLMK. In 1991, the Industrial Coatings business unit supported the Russian steel producer in starting the first coil coating line. Five years later, the company from Münster was already providing the metal combine with chromate-free primers. It also held on to the partnership when the Russian economy suffered an economic crisis at the end of the 1990s. Today, more than 75 percent of the steel sheets at NLMK are covered in BASF Coatings coil coating paints every year before they are manufactured into finished products. This corresponds to almost two-thirds of the total production in Russia. Uwe Pelchen, head of Sales Central and Eastern Europe (Precoatings), contributes the success of his business unit to the following: "Trust, reliability, and understanding were the main factors of our progress in Russia." For the BASF Coil Coatings unit, he reckons with a further increase in sales volume on the Russian market by more than 30 percent by 2006.

BASF : A major international player in coatings

BASF Coatings AG belongs to the global Coatings Division of the BASF Group. In 2002 the Coatings Division achieved world sales of 2.1 billion euros. The Coatings Division develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as decorative paints, and also the processes needed to apply them. In this business, eco-efficient water-based, powder and high-solids coatings as well as radiation-curable systems play a special part. In Brazil, the company has been successful in the decorative paints market for years and holds the leading position. BASF has a major, global presence in the Coatings sector, with significant market positions in Europe, North America, South America and the Asia/Pacific region, for example with affiliates in Australia, China, India, Japan, and the Philippines.

Source: BASF Corporation

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