Norwegian paint major Jotun AS signed a land sales contract through its Russian daughter—OOO Jotun Paints—for a nine hectare land plot in Fyodorovskoye industrial park.
The agreement is seen as a first step to raise a factory for the production of paints and coatings. The factory expects annual production output of 15 million liters of paint and 3,000 tons of powder coatings.
“Local production is needed to sustain the sales growth and to fully meet the demands of our Russian customers,” said vice president of Jotun, Svein Stolpestad.
Jotun said that if the project goes well, then the production capacities will be doubled. Jotun Paints is the first resident in the industrial area of the new park complex located approximately 20 kilometers south east of St. Petersburgh.
Jotun currently has eight sales offices and one distribution office in Russia. The raising of the new manufacturing facility was spurred in part by the 21 percent increase in production of waterborne paints and primers in Russia in 2010.