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Hempel Breaks Ground for Coatings Production Facility in Russia

March 12, 2014

Hempel recently broke ground for a coatings production facility in Russia.

The new plant will help meet the growing demand for Hempel coatings in Russia, Ukraine and Central Asia. Strategically located to best serve the market, it will significantly increase Hempel's ability to serve customers in the region.

Hempel held a ceremony to officially mark the beginning of the construction of its first factory in Russia. The new factory is scheduled to start production at the beginning of 2015 and will serve customers in Russia, Ukraine and Central Asia, primarily in the marine and protective industries.

Located 900 kilometers east of Moscow, in the city of Ulyanovsk, the plant will allow Hempel to be better placed to serve the rapidly growing region.

"The new plant will mean shorter lead times, will streamline our supply chain and will allow us to be closer to current and potential customers in the region," said Jesper Bødtkjer, group vice president - Europe.

Part of the 'One Hempel - One Ambition' growth strategy, Hempel's 26th factory is one of the three new plants scheduled to open around the world in 2014 and 2015.

The Russian plant will feature the latest in environmentally-friendly coating production equipment technology, including an automatic dosing system, high speed filling and robotic palletizing. Furthermore, it will include recycling of process liquids, process ventilation air cleaning, soil pollution prevention as well as fire water collection.

Designed to house raw materials and the finished product under one roof, the one-building factory will produce approximately 16 million liters per year in two shifts. To allow for future capacity expansion, it will occupy half of the 70,000 square meter plot.

The plant is the result of an investment agreement between Hempel and local government officials in the Russian Ulyanovsk region with a value of approximately €23 million. When the plant reaches full production capacity, it will bring more than 100 new jobs to the region.

At present, Hempel has 310 products available on the Russian market. With the new factory, it is expected that this number will expand six fold, with a mix of standard and specialized products for the local market. "This plant marks a milestone in Hempel's growth strategy," says Jesper Bødtkjer. "We appreciate the support that the local government officials have given to the project."

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