
- •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
Internationalization:
Country |
China |
Year of entry |
2005 |
Industry/ business area |
Mineral fertilizers |
Entry mode |
FDI 50,5% Brownfield: Shandong Chemical Hongri Acron, Ltd., a Chinese complex fertiliser producer |
Motives |
China: world’s largest fertiliser market, going there in order to strengthen its hand in the world's largest fertiliser market |
Firm specific advantages used on the foreign market |
|
First mover or follower |
First mover |
Type of state involvement in the process of internationalization |
No indication of involvement of the state in the internationalization process. |
Evaluation of the success of the internationalization |
2011: EBDITA 854 RUB mn (whole Acron group: 20,762 RUB mn) Hongri Acron is the largest Russian-Chinese chemical company |
Ohk Uralchem
URALCHEM Holding P.L.C., a company incorporated in Cyprus and the holding company for URALCHEM Group, one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS.
URALCHEM Group is the second largest ammonium nitrate producer in the world and number one in Russia and the second largest nitrogen fertilizer producer in Russia.
The principal raw stuff used in production of nitrogen fertilizers is the natural gas that is delivered to the companies’ producers under the long-term contracts with OAO Gazprom and OAO Novatek.1
Country |
Cyprus, Russia |
Year of entry |
2007 |
Industry/ business area |
Mineral fertilizer producer |
Entry mode |
|
Motives |
Russia has a range of valuable scarce resources, while it uses only small portion of them (1,8% out of 10% produced in the global scale), out of which ammonium nitrate – 25,5%, ammonia – 20,2%, nitrogen fertilizers – 26,9% is produced by UralChem (for 2011). The market for mineral fertilizers has been growing, and as the earth population is increasing, the demand is also substantially growing. The acquisition of controlling stakes in Kirovo-Chepetsk Chemical Works, OJSC and Azot, OJSC lead to further development and enlargement of the company and its activities both in Russian and international markets. UralChem Freight: provide forwarding services, trans-shipment services in ports and sea freight services for our Russian production facilities in relation to their exports UralChem Trading (Latvia): consolidate our export sale and distribution operations and locate them in close proximity to the Port of Riga, one of the key trans-shipment points for our exports UralChemTrans: consolidate the ownership and operation of all our Russian rail and logistics assets UralChem Trans acquired Murashi Depot for repairs and maintenance of our railcar fleet, and it became a branch of UralChem Trans UralChem Handel and UralChem Trading (Brazil) to further focus our marketing and sales efforts in Germany and Brazil respectively UralChem Trading House to arrange sales and promote our products in the Russian and CIS markets Riga Fertiliser Terminal is the development of specialised terminal in the Port of Riga for the transshipments and storage of fertiliser and related chemical products |
Firm specific advantages used on the foreign market |
Access to a rich resource base within the country= optimal low price for materials and energy resources Developed logistical resources, including seaports URALCHEM'S main competitive advantage is the development and production of innovative fertilizers tailored to particular countries, markets and segments along with ammonium nitrate and urea – in accordance with the chosen strategy of “market tailored products” focused on ensuring production flexibility |
First mover or follower |
N/A |
Type of state involvement in the process of internationalization |
The Governments of Moscow and Russian Federation affect the activities of URALCHEM only via legislative and regulatory measures which may have significant impact on financial situation and performance of the Company.2 Russian government did not take part in a company’s internationalization process. |
Evaluation of the success of the internationalization |
Yes, the sales are increasing, and the company is one of the biggest players in Russia, CIS, and East Europe |
Henkel
Founded in 1876, the company "Henkel" is a leader in the world, both in the consumer and in the industrial sector due to such brands as Persil, Schwarzkopf and Loctite.
The headquarters of the company "Henkel" is in Dusseldorf, Germany. More than 47,000 employees work in "Henkel" in the different countries of the world, and it is considered one of the multinational companies in the global market, based in Germany.3
Country |
Germany |
Year of entry |
1886 |
Industry/ business area |
Laundry @ homecare, beauty care, and adhesive technologies |
Entry mode |
First trading representative centers in Austria, the Netherlands, and Switzerland in 1886-89 Emery Industries Inc., successor of Henkel of America Inc, the today’ s subsidiary of Henkel in USA 1908 – started to export washing powder through it’s trading representatives 1909 – licensing agreement with Société d'Electro Chimie in France and Joseph Crosfields & Sons Ltd in England 1913 – first subsidiary Henkel & Cie AG in Switzerland 1925 – Henkel Kemiskt – Teknisch Aktiebolag (FDI) 1930 – Henkel AS, Norway (FDI) 1930 – OY Persil AB, Finland (FDI) 1931 – established UMA AG in Switzerland (FDI) 1932 – established Nederlandsche Persil Mij,NV in the Netherlands 1933 - established Societa Italiana Persil Spa, Italia 1934 – new plant in Belgium 1950 – acquired assets of Productos Gota de Ambar SA, Spain 1951 – subsidiary Southern Chemical Manufacturers in South Africa 1952 – acquired all its subsidiaries in Switzerland 1960 – acquired Standard Chemical Products Inc in the US 1969 – agreement with Kotuyo Co Ltd in Japan on selling Pitt 1963 – established Turk Henkel Sanayi ve Ticaret Ltd in Turkey 1965 – acquired Turyag AS in Turkey 1967 – acquired Societe Anonyme Henkel in France 1969 – acquired Franchini Quimika SA, Argentina 1970 – established Iran Henkel AS 1970 –established Henkel Chemicals Ltd in Jamaica 1971 – subsidiaries: Henkel Industries Ltd, England; Henkel Hellas SA, Greece; Henkel Chemicals (Canada) Ltd; Henkel Chemicals (HK) Ltd, Honk Kong 1972 – Henkel Chemicals (Nigeria) Ltd; Henkel Thai Ltd,Thailand 1972 – acquired Gordon Slater Ltd in the USA 1973 – acquired Kepec Chemische Fabrik GmbH and its subsidiary in the USA 1974 – acquired Produites Chimiques du Sidobre Sinnova SA in France 1974 – acquired Mo. Sinnova in France 1974 – acquired assets of Clorox in the USA 1975- subsidiary Henkel Australia Pty Limited in Australia 1975 – subsidiary Quinica Henkel Centroamericana SA,Quatemala 1976 – agreement on co-production with PT Henkel Indonesia 1977 –acquired General Mills Chemicals Inc and its international subsidiaries 1978 – established Grupo Quimico Mexicano 1980 – acquired Ross Chemicals Co, US 1980- acquired Diademine in France 1980 – acquired Amchem Products Inc in the USA 1981 – established Henkel Oleochemicals Malasio (HOM) 1982 – established Henkel South East Asia Pte Ltd in Singapore 1984 – acquired Monarch/Adams Adhesives Ltd in England 1985 – acquired 28% of assets of Quimica Harting SA in Chili 1985 – acquired 25% of assets of Loctite Corporation in the USA 1985 – acquired Societa Europea Produzione Adhersivi SPA (SEPA) 1986 – acquired Copydex in England 1986 – acquired Chemische Fabrik Gruxau GnbH in Austria 1986 – acquired production of Beecham Group London Rubson in France and Unibond-Copydex Ltd in France 1987 – acquired Parker Chemicals in the USA 1987 – acquired Nopco in the USA 1990 – acquired VEB Waschmittelwerk Genthin 1990 –established Henkel Bautechnik Polska Sp zoo in Poland 1991 – co-production agreement wirh Sovhenk, Russia 1993 – Era in Russia, St.Petersburg 1994 – Macroflex in Moscow, Russia 1995 – acquired LePage’s Ltd in Canada 1995 – acquired Tenaz in Brazil 1996 – Schwarzkopf and Helkel, Moscow 1996 – acquired Novamax Technologies Corporation in the USA 1996 – acquired Thiem Automotive Division in the USA 1996 – established Henkel Mexicana AS in Mexico 1996 – Israel and Livan co-producing agreements 1998 – control package of assets of Manco Inc and Dep Corporation in the USA 1999 – acquired French Laboratories Sero – biologiues Group in France 2000 – establishment of Pemos, Russia 2002 – acquired: Chelgoum Laid, Alger; Solyplat SA, Spain; Cemedine USA, Inc; Sello-lape, England 2004 – acquired: Pial Corporation, USA; Advanced Research Laboratories, USA; Orbseal LLC 2005 – control package of Huawei Electronics Co Ltd 2006 – acquired Right, Guard, Soft dry and Dry idea, USA 2008 – acquired Akzo Nobel |
Motives |
Henkel started with producing washing powder, which was highly successful in Germany. They acquired companies in the other countries to develop their technologies and differentiate the products which they were producing, winning market shares in those countries. |
Firm specific advantages used on the foreign market |
Differentiation of products and brands, unique technologies, tremendous experience and ability to acquire vital companies in this particular type of business |
First mover or follower |
It is a German company, which has its subsidiaries and joint ventures all around the world, including Russia. For producing adhesive technologies, Henkel is probably the first mover in most of the countries, where it has operations. As for laundry, home and beauty care, there are other huge producers, such as Procter and Gamble. |
Type of state involvement in the process of internationalization |
No state involvement |
Evaluation of the success of the internationalization |
Its sales reach 15092 EU millions, it is “world leader in brands and technologies”, which make it one of the most successful processes of internationalization. |