ually moving towards high quality products in
the medium-to-long term due to increasing
quality expectation,” said Paju.
With its global Dulux and Sadolin
brands, AkzoNobel also has a big presence
in the Russian premium decorative paints
sector while Germany’s Caparol is another
player in the sector in which Russian producers have made virtually no inroads.
AkzoNobel has also been expanding
sales in a range of other sectors in Russia,
such as marine, protective, powder, wood
and automotive coatings. “(We) plan substantial growth of our activities there in the
years to come,” said a company official.
Hempel, the Danish-based industrial
and decorative paints producer, is the latest EU company to invest in its first manufacturing facility in Russia where it has
been building up a distribution and marketing infrastructure.
“We’ve had a very good experience
with our organization in Russia and (we)
have become well established in the mar-
ket,” said Kim Junge Andersen, Hempel’s
chief financial officer. “This plant will sig-
nificantly increase our ability to service
our customers in the region.”
In most coatings segments Russian
producers have tended to concentrate on
the low and medium priced categories.
They have also taken advantage of their
relatively large-scale production plants to
export coatings and raw materials to
neighbouring central Asian countries.
When domestic demand slows down,
exports tend to go up as a proportion of
output. In 2009 they accounted for
around 12 percent of production, while
during last year’s rapid growth in consumption they fell to 7. 5 percent.
However Russian coating companies
are gradually becoming more competitive
in their own market as they invest in new
process and product technologies.
Empils based at Rostov-on-Don has
been modernizing its production plants
and upgrading its coatings in the decorative, wood and pipe coatings sectors. In
particular it has been increasing its capacity for waterborne coatings for which
there has been strong demand in Russia.
Last year its coatings sales went up by
six percent while those for water-disper-
sion paints rose by 30 percent. The com-
pany is expecting paints and varnish sales
to rise by around 15 percent in 2011.
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Little Joe Industries
10 Ilene Court, Suite 4, Hillsborough, NJ 08844-1922
Phone: (908) 359-5213 • Fax: (908) 359-5724
Web: www.littlejoe.com • Email: info@littlejoe.com