Gabriel-Chemie's chief financial officer, Andreas Berger (left) and the Governor of the Kaluga Oblast, Anatoly Artamonov, sign an investment agreement concerning the construction and operation of a masterbatch plant in the Vorino industrial park

Austria’s Gabriel-Chemie Group is to build a masterbatch plant in the Vorino industrial park of Kaluga Oblast, south west of Moscow, as demand for masterbatch in Russia continues to grow.

Having operated a subsidiary in Russia since 2007, Gabriel-Chemie admits that increasing demand in the country, along with Azerbaijan, Kazakhstan and Belarus, has made it necessary to adjust production capacity.

A production facility will now be constructed in the 27,000 sq m industrial park area, with the first phase being the relocation from its existing location in Dorokhovo, Moscow, by the end of 2018.

Around 260 million roubles ($4.3 million) will be invested in the new facility, which will have an initial capacity of 2,000 tonnes per year and a potential to reach 20,000 tonnes after completion of all construction phases.

Gabriel Chemie’s chief financial officer, Andreas Berger, explained that there is a high demand for colourants in the region. He added: “We have noticed an increasing interest in functional additives such as flame retardants, infrared absorbers and laser additives.”

More than 30 companies are investing in the Vorsino industrial or are already present there.