Polyplastic Group

Country

Russia

Year of entry

2003

Industry/ business area

plastic producer

Entry mode

2003

1. The Klimovsky Pipe Plant (total production capacity of about 30 thousand tons of pipes per year), pipes from 20 to 1200 mm in diameter for water and gas applications;

2. Cheboksary Pipe Plant

3. joint venture, Brugg-Plast, whose main activity is the sale of flexible pipes for corrosive and high temperature liquids within the CIS, was established;

4. Joint Venture Golan-Plast for production of crosslinked polyethylene pipes began work at the AND Gaztrubplast plant.

2004

The trading houses «Evrotrubplast » (Kyiv) and «Yugtrubplast» (Rostov-on-Don, Rostov region)

2006

The Rubezhansky Pipe Plant was launched in Rubezhnoe (Lugansk region)

2008-2013

Built or upgraded plants in Ukraine, Belarus and Kazakhstan

Motives

The main motive - production location closer to the consumer

The choice for the internationalization of markets associated with unsaturated markets.

Firm specific advantages used on the foreign market

Company produces high quality goods. Sales are mainly conducted in the Soviet Republics. Here, as similar business principles and the agreements of state cooperation.

First mover or follower

Follower (import substitution)

Type of state involvement in the process of internationalization

The main support of the state of the company is buying its products for various projects. For example Construction of cargo complex for Olympic construction project. Moreover, the company is involved in various tenders. State provides support for the construction and upgrading works by accelerating the completion of all formalities

Evaluation of the success of the internationalization

workforce of more than 5,000 employees, and annually produces thermoplastic composites, polyethylene pipe systems and fittings in excess of 290 kilotonnes. Through years we can see good tendentious of sales increasing.

Country

France

Year of entry

2004

Industry/ business area

Tyres producer

Entry mode

2002-2004 French tire concern had a series of talks on the acquisition of a Russian tire plants (among them the Moscow Tire Plant and Kirov Tyre and Volgograd "Voltyre"). But in each case, Michelin did not agree to buy at least 75% of the plant, and the talks broke down.¹³

2004 the factory was opened Michelin car tire production in the country Davydovo (Orekhovo-Zuyevo district, Moscow region)

Also one priority of Michelin in the East European area is the development of retail tire centers TYREPLUS. By mid-2011 the number of participants in the network was approximately 150 car and truck tire centers throughout Russia and the CIS countries.

Motives

1. Big market (15% annually, income growth)

2. Growth of car sales

3. Russia has experienced a positive trend - demand shifts to modern radial tires, and not created by outdated technologies on which Michelin abandoned decades ago. Therefore Michelin intends to actively conquer it is the cargo segment of the tire market.¹⁴

Firm specific advantages used on the foreign market

1. High quality of product

2. Good reputation of company in its segment

3. Company had enough knowledge of market to internationalize (It was in the Russian market in 1907. It is so respected).

First mover or follower

First mover. Michelin's first foreign tire manufacturers in Russia opened a factory for the production of high-tech buses.

Type of state involvement in the process of internationalization

1. Authorities gave support with all formalities

2. RESOLUTION OF THE GOVERNMENT OF MO 02.10.2003 N 586/37 RECOGNIZING THE FEASIBILITY OF THE INVESTMENT PROJECT tire production LLC "RUSSIAN COMPANY Michelin tire manufacturing" in Orekhovo-Zuyevo district, Moscow region

3. Also encourage the French to organize local production of truck tires can also be a possible increase in the customs duty on import of tires for trucks. In 2009, two of the largest Russian manufacturer of truck tires "Sibur-Russian Tyres" and "Nizhnekamskshina" asked the Russian government to raise tariffs on imported tires for trucks from 15% to 25%.

Evaluation of the success of the internationalization

Currently, the factory Michelin employs over 1,000 people, and the company produces an average of 3,000 tires per day.