Nuplex Industries has signed up to a joint venture with Russian paint and resins manufacturer KVIL.

Nuplex will spend $5.7 million to set up the 50-50 partnership, which is expected to be formed in the first quarter of this year.

The deal will open up access to the growing Russian market, says chief executive Emery Severin.

"Entering into Russia through a joint venture enables us to take a low risk approach to building our presence in this emerging market" he said.


The joint venture also allows for a resin manufacturing site to be built in Belgorod, Russia, in the next two years, with estimates putting the cost at $32 million.

"We will have the opportunity to build on the-the-ground experience before committing to a larger investment in a manufacturing site" he said.

Nuplex last year bought Viverso in Europe for €75 million ($121 million) from Bayer MaterialSciences, and spent A$23.5 million ($30 million) on Acquos' Masterbatch business in Australia.

Nuplex shares yesterday fell 1.3 per cent to $2.37.