Lakra Sintez takes over BASF coatings plant in Moscow Region

MOSCOW. July 1 (Interfax) - Lakra Sintez LLC, one of Russia's largest producers of paints and varnishes, has become the sole owner of BASF Wostok, the Russian coatings division of German chemicals giant BASF, data from the Unified State Register of Legal Entities showed.

A Russian presidential order approved this transaction was published in May.

BASF Wostok was BASF set up in Pavlovsky Posad, Moscow Region in October 1999, and is core business is manufacturing paints, varnishes and other coatings, printing ink and mastic.

In 2022, BASF announced plans to wind down its business in Russia and Belarus, with the exception of production of additives for the food industry. The company recognized impairments on these assets of 51 million euros and provisions for obligations to customers, suppliers and employees in the amount of 27 million euros. In 2021, Russia and Belarus accounted for around 1% of BASF Group's total sales.

BASF had at least four other subsidiaries in Russia: BASF LLC (fertilizer trading), BASF Industrial Metals LLC (trading of metals in primary forms), BASF Yug LLC (seed trading) and Chemetall LLC (industrial chemicals trading). BASF Industrial Metals was liquidated in September 2023.

Lakra Sintex has a plant that produces water-based and alkyd coatings in Staraya Kupavna, Moscow Region and is one of Russia's leading makers of water-based coatings for general construction and industrial applications, including paints, varnishes and enamel, as well as plaster, wood protection products, sealing foam, sealers and other materials. The company's markets are Russia, Kazakhstan, Belarus and Kyrgyzstan.