The signing of an investment agreement between Hempel and local government officials in the Russian Ulyanovsk region marks its first Russian paint production facility.

With the signing of the investment agreement, the Hempel Group and the Ulyanovsk authorities have sealed their commitment to the €23 million turnkey project to be built close to the city of Ulyanovsk, 893 kilometers east of Moscow.

Scheduled to start production in December 2012, the plant is meant to help meet growing demand for Hempel coatings in the Russian market.

“This will be our first Hempel factory in Russia,” said company CFO Kim Junge Andersen. “We’ve had a very good experience with our organization 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.”

The new plant will feature the latest in environmentally-friendly coating production equipment technology, including a semi-automatic powder handling system, an automatic liquid dosing system and a solvent recovery unit.

Designed to house raw materials and the finished product under one roof, the one-building factory will occupy a 70,000 square meter plot. Under one-shift operation, the factory will produce 16.3 million liters annually. If further capacity is required, the factory can operate with two shifts to raise production capacity to 26 million liters.

In order to meet local and Hempel Group 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. Solvents that have been used in the production process will be recovered in a solvent recovery unit and recycled for future use. It is estimated that this method can recover up to 90 percent.

At present, Hempel has 310 products available on the Russian market. With the new factory, it is hoped that this number will expand six fold, with a mix of standard and specialized products for the local market, the company said.

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