“KuibyshevAzot” ojsc

Country

Russia

Year of entry

No information about the time when a company started producing for export, but the plant was established in 1966

Industry/ business area

Production of caprolactam and its derived products, ammonia and nitrogen fertilizers

Entry mode

A company supplies Asia, Europe, North America, Central America, near East countries, South America, Africa, Australia, CIS, which makes up more than 55counries.

2007 - СП Kuibyshevazot Engineering Plastics (Shanghai) Co., Ltd production plant was established in China, the joint venture with HE Ye with the majority stake in hands of “KuibyshevAzot” OJSC.

2011 - Strategic partnership agreement of "KuibyshevAzot" and Royal DSM NV (Holland) - one of the largest global companies to develop and manufacture high-performance materials and industrial chemicals.

Motives

Huge base of raw materials, relatively small domestic demand; increasing foreign demand for particular products, high producing potential.

Firm specific advantages used on the foreign market

 It the only enterprise in Russia, which produces high-viscosity polyamide, high-tenacity yarn and tire cord fabric derived from it. In comparison to other domestic equivalents, our yarn is characterized by higher tenacity and fully conforms to the international standards. Besides, "KuibyshevAzot" produces process gases which meet requirements of the main business-directions and at the same time are independent commodity products.

First mover or follower

N/A

Type of state involvement

No direct involvement of state

Evaluation of the success of the internationalization

1. Is the leader in caprolactam production within the CIS

2. is a part of ten greatest word producers and takes the first place in CIS countries in caprolactam production;

3. is a leader in PA-6 production in Russia, CIS countries and Eastern Europe;

4. is a part of the first ten enterprises in domestic nitrogen and nitrogen compound making industry;

5. is the only company in Russia that produces of tire cord fabric on high tenacity industrial yarns basis

Country

Russia

Year of entry

No information about the time when a company started producing for export, but in 1979 the corporation was founded.

Industry/ business area

Production of chemicals and petrochemicals

Entry mode

A company does not have any facilities outside Russian Federation. It sells its products via transit through Ukraine to North America, Europe, Africa, and Asia.

Motives

Huge base of raw materials, relatively small domestic demand; increasing foreign demand for particular products, high producing potential.

Firm specific advantages used on the foreign market

• It possesses one of the biggest ammonia producing plants in the world – Tolliati ammonia plant, also has:

• developed infrastructure

• high quality of products

First mover or follower

It depend on a particular market and a particular country.

Type of state involvement in the process of internationalization

No direct involvement of state

Evaluation of the success of the internationalization

As it is stated in its annual report, the results of the company’s activities could have been better, but the company faces problems with dealing a well thought out raider attacks to misappropriation of assets of the company, which is forced to spend considerable effort and resources to protect their assets, deal with multiple audits by various state and public authorities, manage litigation related to the spurious and illegal claims tax inspection and minority shareholders.