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Paints and Coatings Hempel Builds its First Russian Paints and Coatings Production Facility

| Editor: Dominik Stephan

Coating Supplier Hempel agreed with the local government of the Russian region Ulyanovsk to build the company's first Russian production facility close to the city of Ulyanovsk, 893 kilometres east of Moscow.

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Danish Paints and Coatings specialists Hempel are plaaning the company's first Russian production site at Ulyarnosk. (Picture: Hempel)
Danish Paints and Coatings specialists Hempel are plaaning the company's first Russian production site at Ulyarnosk. (Picture: Hempel)

Lyngby/Dennmark – The investment agreement of Danish Hempel and the Russian officials clears the way for the construction of modern paints and coatings production with 16.3 million litres annual output, expected to be finished in December 2012. Hempel plans to invest EUR 23 million on this this project.

“This will be our first Hempel factory in Russia,” says company 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.”

To meet local 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. A solvent recovery is used to gather solvents from the production process for recycling. Estimations expect that 90 percent of the used solvents can be recycled in this way.

At full production, the facility will employ around 120 persons. Hempel currently has 310 products available on the Russian market and hopes to expand this number six fold, with both standard and specialised products for the local market.

“Expansion in the Russian market has been an important element in Hempel’s business strategy,” says Kim. “Our investment in this plant will be instrumental in meeting goals for our company as well as for our customers.”

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