Hexion Specialty Chemicals (USA), one of the world's leading producers of thermoset resins, and OAO Shchekinoazot (Russia), a large industrial chemicals producer, announced that their joint venture company has begun manufacture of resins for the forest products and construction markets. The JV company -- Hexion-Shchekinoazot -- is producing a wide range of resin systems used in mineral wool insulation, plywood, oriented strand board (OSB) and laminate products. The company's resin production facility is located in the Tula region of Russia.
Initially, the new resins plant will produce phenol formaldehyde resins before expanding to include production of urea formaldehyde resins and other thermoset formaldehyde derivatives. OAO Shchekinoazot will ensure a reliable and regular supply of raw materials for the new production site through its operating UFC and formalin plants. Russia's tremendous forest resources make it likely to be one of the most dynamic forest products markets in the world over the next decade. Development of mineral wool, furniture, construction materials and other production will create an increasing demand for synthetic resins. The Tula region's excellent transportation infrastructure and location to key markets in Central Europe make it an excellent location to base Hexion-Shchekinoazot commercial activities.