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[Nov 2006]
Sanitec Invests in New Partnership in Ukraine
On 26 October 2006, after a ceremony attended by the Presidents of Finland and Ukraine, the Finnish Sanitec Group and the Ukrainian Ukrbudmaterialy Group signed an agreement to establish a joint company in which Sanitec will hold 51% and the Ukrainian shareholders 49%. The agreement concerns the largest Ukrainian bathroom ceramics manufacturer, Slavutskiy Plant Budfarfor.
The partners intend to restructure the existing bathroom ceramics plant in Slavuta, Ukraine, and to transform it into a state-of-the-art company with extended production capacity. The factory currently produces 2.5 million pieces annually.
The investment will be realised in the coming years, as the plant will be thoroughly reorganised. The existing buildings will be modernised and new plant facilities constructed. The intention is to use proven equipment and production techniques as currently used in Sanitec's production plants throughout Europe. The applied technologies will allow for a significant reduction in the production costs and improve productivity and efficiency. All employees will undergo extensive training in new technologies.
The present product range will be extended with upgraded quality and design. New ceramic series will be designed both for the Ukrainian market and for export.
The new company will remain as the main player on the Ukrainian market, and will extend activities in the traditional export markets of Budfarfor, such as Russia, Belarus and Kazakhstan. The market position of Budfarfor, combined with Sanitec's experience in technology and marketing, will bring a large potential for the future, adds the Finnish company.
Sanitec is a European multi-brand group that designs, manufactures and markets bathroom ceramics and bath and shower products. Sanitec Group is based around locally well-known brands, which have strong positions and deep roots in the bathroom business. The Sanitec brand portfolio includes brands such as Albatros, Allia, Ido, Ifö, Keramag, Kolo, Koralle, Leda, Pozzi-Ginori, Revita, Selles, Sphinx and Twyford.
Sanitec has historically grown both organically and through acquisitions. In 2005 the Group net sales amounted to 848 million euro and today the group employs almost 7,000 people. The company is the largest or second largest supplier in all its main markets. The 28 production plants are in Europe whereas the sales and marketing network operates worldwide.
Ukrbudmaterialy Group is a Ukrainian multi-brand Group that designs, manufactures and markets building materials. A member of Ukrbudmaterialy, the Budfarfor industrial complex in Slavuta, Ukraine, is the largest manufacturer of sanitary ceramics in Eastern Europe with annual output exceeding 2.5 million products and a hundred years' experience in manufacturing bathroom ceramics.
The industrial complex currently produces more than 50 types of various bathroom ceramic products. These porcelain products are made of environmentally clean raw materials according to the requirements of the international ISO 9001:2000 standard.
The products are presently exported to the Russian Federation, Belarus, Moldova, Kazakhstan, Latvia, Lithuania, Kyrgyzstan, Tajikistan, Georgia and Azerbaijan.
www.sanitec.com
ENDS