Pavlovski Posad, Russia - BASF Coatings has started up a new paint plant employing 50 people at Pavlovski Posad in Russia, 60 km east of Moscow. The facility, with capacity of 6 kilotonnes per annum for both basecoats and clearcoats, will supply customers in the "burgeoning Russian automotive market with high-quality coatings," said a 13 May BASF statement.
The unit will also offer customers local support for application techniques and laboratory services. As well as production, the Pavlovski Posad site houses a quality test lab, warehouse and workshop. As demand grows, the production line can also be expanded to a volume of 25-30 kt, said BASF Coatings.
The group did not reveal details of the amount invested.
BASF Coatings claims to be "the first international paint manufacturer to be able to supply customers locally from its own production facility," in Russia.
"Our local production capacity provides us with a good basis for shaping the dynamic development of the Russian automotive market," said Juan Ximenez-Camillo, head of BASF Coatings' Automotive OEM Coatings unit for Europe, in the company statement.
Russia has become both an attractive market for carmakers to sell into, and a good location for the production of cars, both by domestic and global OEMs (original equipment manufacturers). BASF pointed out that Russia is already considered to be one of the world's four largest growth regions, adding that future expansion will make it second only to Germany as a major European economy.
According to BASF, all the key carmakers, as well as Asian OEMs, are already represented in Russia, or will be establishing a presence there shortly.
As well as high volume growth, Russia is also experiencing rising demand for high-quality paint technologies. "BASF has years of experience in close partnership with both Russian and multinational customers, who we support with products and innovative solutions for cost-effective and ecologically efficient finishing," said Semen Belyakov, head of BASF Coatings in Russia, in the company statement.