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Expert: Hempel has landed in Ulyanovsk

30.04.2011

Hempel Group (Denmark) and Ulyanovsk Region authorities signed an investment agreement on building a paint coatings manufacturing plant in the region. "This will be the first Hempel factory in Russia. We spent two years choosing a site for this project. In particular, we looked at Tatarstan. But Ulyanovsk Region offered us more favourable conditions," CFO Kim Junge Andersen told journalists.

Hempel is one of the global leaders in paint coating sales. The corporation operates in over
80 countries and has 21 plants with products including corrosion-resistant coatings for almost all types of steel constructions, oil and gas constructions, ships, containers and yachts.

The company is prepared to invest almost 1 billion roubles in the first phase of its 22nd plant. It will be in the Ulyanovsk's Volga district next to the Aviastar-SP aircraft construction plant. The plant will house production and storage of raw materials and finished products occupying
70 thousand square metres. The factory will produce 16.3 million litres of paint annually, and when it starts operating in December next year the Hempel product range in Russia will increase 6 (!) fold (the company currently has 310 products available on the Russia). The Danes are convinced that the new plant will have all the necessary equipment for producing environmentally safe paints using state-of-the-art technology, including a semi-automatic powder handling system, an automatic liquid dosing system and a solvent recovery unit. All floors of the production and storage building will be isolated from each other 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 and recycled for future use. "We will apply international environmental standards. Although our plants have even higher standards. This is not a two year investment, but long term about 40-50 years. Therefore, we think about the future", declared Hempel Russia CEO Stefan Schramm. 

In general, such a plant is good. However, judging by the relatively small investment and speed of construction (about 1.5 years from project to production start), this is not about exporting Danish paint technology to Russia, but production from "base" components made in Denmark of ultimate high tech products in Ulyanovsk, which Russian consumers want. Even so, for Ulyanovsk, and for every normal Russian region, this project is obviously very important. "Hempel's desire to implement its project in our region is very important to us. It will create new jobs, open a new high tech plant and, at the same time it recognises the high competitiveness of Ulyanovsk Region in the investment market.  We have set ourselves the task of achieving in 2011 capital investment growth rates of at least 105% compared to last year, which is more than 50 billion roubles," Ulyanovsk Region Governor Sergey Morozov said in welcoming the new investor to Lenin's birthplace.

So why did the Danish company decide to invest in Ulyanovsk Region, despite being invited to Tatarstan and Nizhny Novgorod Region? Recently, Zavolzhye regional industrial zone (industrial park), where the new Hempel plant is located, was certified at the federal level. "This plant will receive all preferences which are provided to Zavolzhye industrial zone residents. They are tax benefits and subsidies," noted Dmitry Ryabov, Director General of Ulyanovsk Region Development Corporation, OJSC. He said that the Danish company chose very carefully the region for building its first Russian plant. The main advantage for Ulyanovsk was the region's more favourable investment climate. In addition, the region has a special economic port zone and a large aviation construction cluster is being established, where Hempel products will find good use.

Source: Expert