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BASF begins production at Russian site

By Tim Wright | August 1, 2008

BASF begins production at Russian site

BASF Coatings has marked the launch of operations at its new production site in Russia. The new facility at Pavlovskij Posad, 60 kilometers east of Moscow, has an annual production capacity of 6,000 tons of paint, including basecoats and clearcoats. Production capacity can be expanded to over 20,000 tons at any time. With this site BASF can now supply the automotive industry in the growth market of Russia locally. At the Pavlovskij Posad site a staff of 50 will be employed in production, the quality test lab, the warehouse, the workshop and administration.

The latest figures prove that the Russian market is booming. In the first six months of 2008, Russia led the number of new registrations in Europe—ahead of Germany. Russia is already considered to be one of the world's four largest growth markets and in the coming years, will be expanding. This will make it Europe's second strongest national economy, after Germany.

"These statistics, as well as the fact that all of the key carmakers, including the Asian OEMs, are either already represented in Russia or will be establishing their presence there shortly, prompted us to make this investment," said Juan Ximénez-Carrillo Gerber, head of BASF Coatings' Automotive OEM Coatings unit for Europe. "The new site's products and processes attest to the successful combination of quality, environmental protection and ecology. The first batches of the colors Milky Way and Quarz have been produced for customer AvtoVAZ, who manufactures the Lada at its Togliatti site."
"Our next task involves expanding our existing customer relations and winning new customers for our company," said Semen Belyakov, head of BASF Coatings in Russia. "Our preliminary work and our achievement to date give me reason to be very optimistic."