Finnish paints and coatings company Tikkurila has signed a Letter of Intent to buy a seven-hectare industrial site in Russia - reported goodnewsfinland.
The factory will be located in Greenstate Industrial Park, two kilometers south of St. Petersburg. Its annual capacity will be 30 million litres, with the possibility for an expansion later. The site will also include a Research, Development and Innovation (RDI) centre as well as extensive warehouse premises for raw materials and finished goods with a railway connection.
The investment will be to the tune of 30 to 35 million euros, the total sum depending on the final setup. The designing of the facility will begin immediately, and construction is scheduled to commence late next year. The factory is set to be in operation in 2020.
The new factory will produce decorative and industrial products, and it will replace the two existing production units in St. Petersburg.
“We are committed to developing our business operations in Russia, which is the second biggest market for Tikkurila after Sweden,” says Erkki Järvinen, president and CEO of Tikkurila. “We are the clear market leader in decorative paints in Russia and our aim is to strengthen our position further in all our customer segments. The new factory, warehouse and RDI premises improve our competitiveness, production capabilities and customer service.”
Tikkurila has been present in the Russian market for decades. Currently, the company runs four production units in Russia, and its logistics and retail network covers the whole country.
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