BERGEN op ZOOM, the Netherlands - Nuplex Industries announced that its European Business, Nuplex Resins BV, has signed a memorandum of understanding (MOU) to establish a joint venture company (JV) with KVIL Group (KVIL), a Russian paint and resins producer. 

Initially, the 50:50 JV will be responsible for the exclusive sales and marketing of resins produced by KVIL and Nuplex. The JV is expected to be formed during the March 2012 quarter, at which time Nuplex will invest EUR 3.5 million, mainly for working capital. The MOU also provides for the JV to build a resins manufacturing site in Belgorod, Russia, within two years, subject to market conditions. The cost of building a new site is estimated to be around EUR 20 million.