As a part of its continued growth strategy in emerging markets, DuPont (NYSE:DD) today announced the opening of its second office in Russia. The Saint Petersburg office will focus specifically on strengthening the company’s relationships with and support for the automotive industry.
The opening follows significant expansions of the company’s offices in Moscow and Kiev in the Ukraine, and the launch of an office in Almaty, Kazakhstan.
“DuPont has had a presence in Russia for more than 30 years,” said Ian Hudson, president – DuPont Europe, Middle East and Africa. “The company’s innovative solutions, materials and technologies are widely applied in Russia’s leading industries, including oil and gas, automotive, medical, agriculture and construction. Eastern Europe is a critical growth area for us as we expand our market reach.”
John Shmorhun, DuPont regional director for Eastern Europe, added, “DuPont plans to focus on growth in the region’s most in-demand business segments. Offering state-of-the-art, high-efficiency solutions for the construction and automotive industries will allow DuPont to contribute substantially to the overall development of Russia’s northwest, as well as for the country’s industry in general.”
Russia’s northwest region has seen rapid growth in the automotive industry in recent years. Boasting highly qualified manpower, low production costs and robust economic growth rates, this region has been steadily attracting domestic and foreign automotive manufacturers as well as their suppliers. According to analysts, continued growth is expected in the industry, with financial turnover expanding at an annual rate of almost 7 percent until 2010.
Automotive manufacturers use DuPont materials and coatings extensively for a variety of vehicle interiors, exteriors and engine parts. The company’s offerings for the automotive industry include more than 100 products, with 30- 40 percent being applicable to cars manufactured in Russia. In the near future, DuPont expects this ratio to increase to a provisional 70 percent, as Russian automotive manufacturers improve their vehicle quality.
The growth trend is equally true for the construction market. According to nationwide statistics, the launch of new developments was down 20 percent from 1990 to 2000 as a result of insufficient demand. Since 2001, however, Russia’s central and northwestern territories have been reporting annual expansions of construction work volume, as well as growing numbers of completed new developments. DuPont expects to expand its offerings for building and construction solutions to provide better energy efficiency, safety and comfort.