Hempel to produce paint in Russia
Danish coatings supplier Hempel has signed an agreement to establish a paint production facility in Russia.
According to Hempel, the investment agreement with local government officials in the Russian Ulyanovsk region marks an important milestone in its expansion plans, representing its first Russian facility. With the signing of the agreement, the Hempel Group and the Ulyanovsk authorities have sealed their commitment to the €23 million turnkey project to be built close to the city of Ulyanovsk, 893 km east of Moscow. Scheduled to start production in December 2012, the plant will help meet growing demand for Hempel coatings in the Russian market.
The new plant will feature the environmentally-friendly production technology, including a semi-automatic powder handling system, an automatic liquid dosing system and a solvent recovery unit. Designed to house raw materials and the finished product under one roof, the 70,000m2 factory will produce 16.3 million litres annually, enabling Hempel to considerably increase its range of specialised products for the Russian market. Operating an extra shift will allow capacity to expand still further, up to 26 million litres. When the plant reaches full production capacity, it will bring around 120 new jobs.
In order to meet local and Hempel Group environmental standards, all floors will be sealed to prevent soil contamination in the event of a spill, or to collect water in the event of a fire.
“This will be our first Hempel factory in Russia,” says CFO Kim Junge Andersen. “We’ve had a very good experience with our organisation in Russia, and they have become well-established in the market. This plant will significantly increase our ability to service our customers in the region. Expansion in the Russian market has been an important element in Hempel’s business strategy. Our investment in this plant will be instrumental in meeting goals for our company as well as for our customers.”
