Tikkurila has signed an agreement to sell its 50% stake in Sto-Tikkurila to the other party, Sto AG of Germany.
The joint venture Sto-Tikkurila was established in June 2006 in Moscow, Russia, with the business idea of production and project sales of various coatings systems for facades. Now the Germany-based Sto AG wishes to continue the business on its own, while Tikkurila will continue operating in the Russian facade coatings market under its own brands. The markets for facade systems are developing rapidly due to the strong growth in construction activity.
Tikkurila has been exporting paints and coatings to Russia since the 1970s, and started local production in St. Petersburg in 1995. Today the company has six paint plants and a distribution network covering 100 cities and towns in the country. The most popular brands are Tikkurila, Finncolor and Teks with a common market share of nearly 25% of the Russian decorative paints market.
Sto AG Group is one of the most significant producers of construction paints. Its main products include high-quality facade elements and renders, plasters and paints for exterior and interior applications.
Tikkurila to sell its stake