A Russian industrialist invests into a Chinese polymer producer

A Russian industrialist invests into a Chinese polymer producer

Shareholders meeting of Chinese chemical corporation Zhejiang Jusheng Ftorochemical Co. (ZJF) is to take place today where the main shareholders stakes are to be distributed.
It is expected that the meeting will officially approve the inclusion of Russian Interhimprom Group into a list of shareholders. The group will acquire at least 25% of the shares. Mr. Boris Titov, Chairman of Interhimprom Combined Managing Board, explained that in future his company would be willing to increase its stake in the largest Chinese polytetrafluoroethylene producer, which is one of international market competitors for the Russian companies.

USA is the main fluoroplastics market and Russian producers, namely - Perm-based Galogen, and Kirovo-Chepetsk–based chemical plant – are struggling to capture it.

Mr. Boris Titov, Chairman of Interhimprom Combined Managing Board, described this Chinese plant as “one of the most efficient facilities in the world”. Mr. Titov estimates the investments into the Chinese plant as $10-15 million. A Chinese affiliated company of Interhimprom will not ship its products to Russian market. According to Mr. Titov, the Russian fluoroplastic market is rather small and its requirements are satisfied primarily by the capacities of Kirovo-Chepetsk and Perm plants.

But in the global market Zhejiang Jusheng Ftorochemical will directly compete with Russian companies since 90% of their products are exported, primarily to the USA.