Tikkurila plans to invest more than 30 million euros in a new paint factory, which is expected to start production in 2020

On June 19, Tikkurila issued an announcement stating that the company had signed a letter of intent to purchase a 7-hectare industrial land near St. Petersburg, Russia. The goal of the project is to start the construction of a new factory in 2018.
To support growth, Tikkurila plans to invest in a new factory in Russia. The plant is located in the Greenstate Industrial Park, 2 kilometers south of St. Petersburg. The annual production capacity of the factory will reach 30 million liters (approximately 40,500 tons), and it is possible to expand the production scale in the future. The new site will also include a research, development and innovation (RDI) center, as well as raw materials and finished products warehouses, which will improve and increase Tikkurila’s distribution efficiency. According to the final setting, the total investment amount will be around 30-35 million euros. The design of the plant will start immediately, and construction is scheduled to start at the end of next year. The plant will start production in 2020.
This new plant will produce decorative paints and industrial paints products, and will replace the two solvent-based paints currently produced in St. Petersburg product. After the investment, Tikkurila will operate a water-based paint and a solvent-based paint factory in the St. Petersburg area. This investment will increase the net production capacity in Russia, and there are options for further expansion.
“We are committed to developing our business in Russia, which is Tikkurila’s second largest market after Sweden. We are the market leader in Russian decorative paints. Our goal is to further strengthen our Status. New factories, warehouses and RDI locations have improved our competitiveness, production capacity and customer service.” said Erkki Järvinen, President and CEO of Tikkurila.
Tikkurila has been operating in the Russian market for decades. Since the 1970s, Tikkurila began exporting paint to the former Soviet Union. In 1995, the first western style paint factory was established in St. Petersburg. Currently, Tikkurila has 4 production bases in Russia-3 in St. Petersburg and 1 in Staryi Oskol. Tikkurila’s logistics and retail network covers the whole country. Tikkurila operates two main brands in Russia, Tikkurila and Teks.
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