Finnish manufacturer Tikkurila is planning to invest in another paints plant in Russia in order to strengthen its position in the local market. The Vantaa-headquartered group has signed a letter of intent to buy a seven-hectare site in the Greenstate Industrial Park, near St. Petersburg. Design work will start immediately with construction set to begin late next year. Production is scheduled to start sometime in 2020.

The project, which will cost an estimated €30-35 million, will include a plant producing 30 million liters per year of decorative and industrial paints, a research, development and innovation center plus extensive warehouse facilities for raw materials and finished goods that will be connected to a rail network.

The new plant will replace two existing solvent-borne production units in St. Petersburg but will increase Tikkurila’s net Russian capacity. It will also have the option for further expansion.

Erkki Järvinen, Tikkurila’s president and CEO, said the company is committed to developing its operations in Russia, which is its second biggest market after Sweden. “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,” he commented.

According to Petri Miettinen, senior vice president of operations at Tikkurila, the company studied several sites for the new plant but selected the Greenstate Industrial Park in the Leningrad Oblast because of its optimal location and the fact that it could retain its skilled St. Petersburg workforce. Miettinen added that the use of Tikkurila’s latest technology will reduce lead times and improve its environmental footprint.

The company currently operates four production plants in Russia – three in St. Petersburg and one in Staryi Oskol.