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[March 2005]
Sanitec to Produce Bathroom Ceramics in Russia
On 17 March 2005, Sanitec Corporation (Helsinki, Finland) signed a Letter of Intent with the Russian SAVVA Group to establish a joint venture between Sanitec and SAVVA's subsidiary, Santek, in the production and sales of bathroom ceramics in Russia.
The Letter of Intent calls for the parties' joint development of two ceramic factories in Russia. The existing Santek factory is situated in Cheboksary and has an annual production capacity of about 500,000 ceramic pieces. A new factory under construction in Novochebksarsk will have a capacity of one million pieces. The new plant is planned to be on stream in summer 2005. Both factories will be capable of supplying products according to Sanitec's and Santek's needs and specifications.
"This investment is an important part of our Russian strategy and aims to establish a leading position for Sanitec in the Russian market," said Pertti Lehti, Executive Vice President. In 2004, Sanitec produced approximately 13 million ceramic pieces in 17 production plants, mainly located in Europe.
The SAVVA Group is currently active in the design, production, marketing, sales and distribution in Russia of bathroom ceramics under the Santek brand, as well as in ceramic tiles throughout Russia.
Sanitec currently markets its ceramic products in Russia under the Ido, Ifo and Kolo brands and holds approximately 6% share of the Russian ceramic sanitaryware market.
Johan Nilsson, Sanitec's Senior Vice President, North East Europe, said: "Russia is an interesting market for us; it is closely connected to the European market and there is significant potential for growth over the next years. Given our strong market position in Europe, it is logical now to focus on a market like Russia".
www.sanitec.com
ENDS