July 17 in Nizhnekamsk, there was held a regular round of negotiations between the NKNK Inc Management and the German Concern BASF, which continued the topic over co-development of polymer materials project basing on the Nizhnekamsk Petrochemical Complex.

A memorandum on long-term cooperation between BASF Concern (Germany) and NKNK Inc in producing GPPS was signed as far back as December 2000. After that event, there were negotiations at the level of work teams, however, they would yield no desirable results. A higher level meeting held on a hot day of July in the NKNK Inc office was supposed to boost a polystyrene production project which was of equal interest both for NKNK Inc and BASF.
The negotiations were attended on the Russian part by Vladimir Boussyguine, General Director of NKNK Inc, Rafinat Yarullin, Chairman of Board of Directors, Kharis Mustafin, First Deputy General Director; on the German part by Doctor Wolfgang B?chele, Regional Director of BASF Concern for Eastern Europe, Africa, Western Asia, and Doctor Fred Baumgartner, Director of BASF Concern for plastic materials.
At the beginning of the negotiations, the both Parties confirmed yet again their interest in establishing a joint venture to produce a wide range of PS materials basing on the BASF technology and NKNK Inc production capacities and technological feedstock. And Vladimir Boussyguine, General Director of the Russian Company, made a comment that the results of the negotiations should on no account be upset by the Contract recently signed in Moscow between NKNK Inc and the American company "Fina Technology" to set a PS Plant in Nizhnekamsk.
The basis for the mutually beneficial cooperation between the two companies shall be as before the memorandum signed at the end of 2000 which contemplated some orientations: to set a foamed polyurethane plant, a PS joint venture, as well as a plant to produce vegetation protection remedy, cooling and brake liquid for motors.
There are already some factual results: a joint venture "Elastokam" was set up which obtained an official status and started its activities in selling polyethers produced at
NKNK Inc.
As a result of the negotiations, the both Parties came to the conclusion on the need to set a joint venture to produce and sell domestically and overseas a wide range of polystyrenes. The Parties shall bear equal expenses. Work teams both on the part of BASF Concern and NKNK Inc will be used to set a JV and conditions for its further activities. Tentative dates to sign a Contract have been defined: as early as this August, after mutual coordination of all items there might be signed an official document contemplating mutual liabilities of the Parties and scope of financial expenditures to set up and to operate a joint venture.
Today, nearly 90% of all styrene produced at NKNK Inc with the highest purity in the world is sold for export. In case of a successful implementation of the project between the German Concern and NKNK Inc, and the both Parties have no doubt in it, first of all the Russian PS market will be filled up by the joint venture products.

Press Service NKNK Inc