Chemtura has signed a distribution agreement with Tentonn of St. Petersburg, Russia for the supply of Chemtura's chemicals for polyurethane foams and Bisamin A product in Russia. The parties did not disclose the financial terms.
According to Chemtura, this step will strengthen its position in regions of the country away from the major cities of Moscow and St. Petersburg, where it is often very hard to deal with the logistic issues of the polyurethane foam due to the huge size of the country.
In particular, the Republic of Sakha, where many polyurethane foam buyers are located, is about five times larger than France. Infrastructure is very poor there, so Chemtura said Tentonn's experience will be valuable there.
A Chemtura spokesperson said the partnership will "strengthen our presence and support the growth of sales of our products in the (far away) regions as well as it will help us to provide a better services to our customers."
Chemtura said Tentonn's significant experience in the polyurethane foam industry is also supported by good market coverage. Tentonn already has an operating network of warehouses and offices, both in the central and industrial areas of the country, but also in less populated and more distant areas, were previously the delivery of Bisamin A and other Chemtura products was "simply impossible," Chemtura representatives said.
Tentonn is working with about 30 foreign companies supplying different type of chemicals in all regions of Russia.
According to the Chemtura, the first deliveries will take place later this year.