Nonwovens growth leads to consolidation
The Russian nonwovens are on the verge of consolidation,
mainly due to the recent acquisition of Regent NM, one of
Russia’s major nonwovens producers, by its rival Moscow-based
Netkanika Company. The deal, worth US$ 25 million, is one of the
largest to be concluded in the industry in recent years.
To date, Regent NM was operated by Russian billionaires the
Ananiev brothers, through their subsidiary Promsvyazbank. As a
result of the deal, Netkanika aims to control up to 20% of the
Russian market for nonwoven materials.
The majority of the company’s products are supplied to the
Russian agricultural industry, hygiene, disposable and medical
clothing, mattresses, and protective membranes. In total, the
company’s production capacity is around 8,000 tonnes per year.
Regent NM also operates production facilities with the capacity
to produce up to 20,000 tonnes per year.
After integration of the newly acquired asset, Netkanika
plans to invest around US$ 10 million in modernization and
increase its capacity by 40%. This should help the company
achieve its recently announced plans to capture 20% of the
nonwovens market in Russia.
Overall, the domestic nonwovens industry is steadily growing
this year, amid the on-going recovery of the national economy
from the financial crisis. According to Denis Manturov, Russia’s
Minister of Industry and Trade, since the beginning of the
current year, the industry has already grown by 35% to US$ 600
million in value terms, compared to the same period of last
year, a record high in the last 36 months.
According to the Russian Ministry of Industry and Trade, if
the same growth rates are achieved in the second half of the
current year, the total value of the market could reach US$ 1.2
billion, a historical record for the nonwovens industry in