Hempel Opens Second Plant in Nashik

Hempelvhas expanded its footprint in India. After the success of its first manufacturing facility in the country, which opened in Nasik Maharastra in 2011, the Danish-based company has inaugurated a new state-of-the-art manufacturing facility in Nashik. With a production capacity of approximately 10 million litres per year, the new greenfield factory will significantly increase Hempel’s ability to serve the rapidly growing South Asian market. The new plant will mean shorter lead times for customers and will further strengthen Hempel’s presence in the region.

The new factory will manufacture paint for the marine and protective coating segments, serving customers in India, Sri Lanka, Bangladesh, the Maldives and Nepal. The plant is located in Nashik, a city in western India in the state of Maharashtra.

The facility, spread over two acres of land, is part of the company’s One Hempel & One Ambition growth strategy and is one of three new plants scheduled to open around the world in 2014 and 2015.

“India is one of the fastest growing coatings markets in the world and we expect further growth in the future,” said
Pierre-Yves Jullien, Hempel Group president and CEO. “We will invest a further €2 million in a second phase capacity expansion at the Nashik site, which will help meet our company’s and our customers’ needs in the entire South Asia region by further strengthening our manufacturing capabilities and boosting our ability to serve existing and new customers.”

According to Umesh Singh, Group Vice President & South Asia, Hempel has seen increased growth in India over the last few years, particularly in certain segments, such as the oil & gas, wind turbine, pipe production and OEM industries.

“The increasing trend to use high-end coatings in these industries has helped Hempel to make further inroads in Indian market,” he said. “The new plant will help us meet the growing demand for our coatings and will cut down lead times. Our new regional R&D facility, which is Hempel’s eleventh such facility around the globe, will also help Hempel India further consolidate its market position.”
The Nashik factory

With a production volume of approximately 10 million liters per year, the €3 million facility is spread over two acres of land.

The factory is fitted with manufacturing equipment designed for maximum productivity and safety. It features zero discharge, an automatic liquid dosing system and a barcode system that will enable faster traceability of raw materials and finished goods. The factory is also equipped with an R&D Laboratory to cater for specific customer requirements.

“With the opening of this new plant, we aim to increase our product assortment and provide a mix of standard and specialized products for the local market”, said Umesh Singh. “We want to build a stronger presence in South Asia and to be part of the exciting growth that is taking place in the region.”

Hempel plans to invest significantly in the plant over the next three years. The plant is designed for future capacity expansion and will supply marine and protective coatings to the entire region.