- •International Business Strategies
- •Intruduction
- •Eurochem
- •Internationalization:
- •Nizhnekamskneftekhim
- •Internationalization:
- •Uralkaly Group
- •Internationalization:
- •Fosagro
- •Internationalization:
- •Internationalization:
- •Ohk Uralchem
- •Kazyanorgsintez
- •“KuibyshevAzot” ojsc
- •Togliattiazot
- •Nokian Tyres
- •Minudobreniya (Rossosh)
- •Polyplastic Group
- •Michelin
- •Nikos Group
- •Conclusion
Uralkaly Group
State influence:
There is no significant indication for influence of the Russian Federation. However, Belaruskali (the parter in BPC) is, despite privatization plans, a state owned company in Belarus.
Internationalization:
Country |
Brazil, India, China, Southeast Asia, Russia, USA, and Europe through an international trader in Belarus |
Year of entry |
2005 |
Industry/ business area |
Mineral fertilizer |
Entry mode |
Export through an international trader (Belarusian Potash Company) |
Motives |
BPC has offices in seven countries and accounts for over 40% of the world potash market, delivering its products to 60 countries. BPC holds leading positions in the BRIC countries (Brazil, Russia, India, China), which are key markets for Uralkali. Their main customers are in countries with high growth rates both in population and income, which drive demand for potash fertiliser |
Firm specific advantages used on the foreign market |
Due to the cooperation with BPC they saw several advantages: ensuring long-term price stability increasing the share of supplies in the fast-growing BRIC markets raising cost efficiency increasing the profitability of supplies due to geographical synergies |
First mover or follower |
|
Type of state involvement in the process of internationalization |
No significant indication for influence of the Russian Federation. However, Belaruskali (the partner in BPC) is, despite privatization plans, still state owned in Belarus. |
Evaluation of the success of the internationalization |
Successful. BPC, of which Uralkaly holds half of the shares, accounts to 40% of the world potash market. |
Fosagro
The world’s largest producer of high-grade phosphate rock (IFA, Fertecon, 2011)
Europe’s largest producer of phosphate-based fertilisers (IFA, 2011)
Europe’s leading and Russia’s only producer of feed monocalcium phosphate (MCP) (Fertecon, AzotEcon-Plus 2011)
One of the world’s five largest producers of MAP and DAP (IFA 2011)
Russia's only producer of nepheline concentrate
State influence:
PhosAgro is a closely held company with close ties to Moscow. The Russian government holds a blocking interest in PhosAgro’s phosphate-producing subsidiary, Apatit, whose chairman is the deputy minister of trade, Denis Manturov.
However, criteria for being in the board of directors of PhosAgro is to NOT be a representative of the Russian federal or local state authorities;
Internationalization:
Country |
South-East Asia, Latin America and Europe |
Year of entry |
N/A |
Industry/ business area |
Mineral fertilizers |
Entry mode |
Export |
Motives |
Reasons for internationalization in general. Why particular country? Why this particular business area? |
Firm specific advantages used on the foreign market |
low-cost business model diversified sales The Company has its own reserves of the high-grade ore; PhosAgro’s main production capacities are located in relatively close proximity to major ports; Owing to a flexible production platform the Company is able to rapidly redirect production capacities over one or two days to the output of products in greatest demand. Comparatively low production costs enable the Company to compete successfully on markets in different countries and in different segments of the mineral fertiliser market. |
First mover or follower |
|
Type of state involvement in the process of internationalization |
No sign of state involvement in the process of internationalization was found. |
Evaluation of the success of the internationalization |
63% market share in high-grade raw material in Europe. Export to more than 60 countries in Asia (excluding China), Europe, Africa, Latin America and North America. |
Acron
Acron Group is one of the world’s major mineral fertiliser producers. By pursuing a strategy of advanced vertical integration, including development of potash and phosphate deposits, operation of three large production facilities, own transportation infrastructure and an international distribution network, the Group is able to ensure stable and dynamic growth.
Acron Group is:
Russia’s largest and one of the world’s major NPK producers
One of Russia’s major producers of ammonia and a diversified portfolio of nitrogen fertilisers
A strong player in the world’s most promising markets such as China, Russia, Thailand, Brazil and the U.S.
The Сompany with an ambitious investment portfolio targeted at creating an independent raw material base and expanding production capacity
Focused on meeting global challenges - satisfying food requirements for a growing population and increasing yields in an environment of shrinking arable land
A responsible employer of 14,160 people
In 2005 Acron acquired a 50,5% share in a Chinese fertiliser producer in order to strengthen its hands in the growing Chinese market.
State influence:
No significant state influence could be detected