Russian automotive market has great potential - BASF Coatings starts operations at production site for paints in Russia

Pavlovski Posad / Münster. BASF Coatings has started up its new production site for paints in Russia. The new facility at Pavlovski Posad, 60 kilometers east of Moscow, has an annual production capacity of 6,000 tonnes of paints (basecoats and clearcoats).

The new site will supply customers in the burgeoning Russian automotive market with high-quality coatings. In addition, it will offer customers local support for application techniques and laboratory services. That makes BASF Coatings the first international paint manufacturer to be able to supply customers locally from its own production facility.

“Our local production capacity provides us with a good basis for shaping the dynamic development of the Russian automotive market,” explains Juan Ximenez-Camillo, head of BASF Coatings’ Automotive OEM Coatings unit for Europe.

At the Pavlovski Posad site a staff of 50 is employed in production, at the quality test lab, the warehouse and in the workshop. As demand grows, the production line can also be expanded to a volume of 25,000-30,000 tonnes. Details on the amount invested were not disclosed.

For the Russian automotive industry, as well as for prominent carmakers from all over the world, Russia has become an attractive market and location for the production of cars. Today, Russia is already considered to be one of the world’s four largest growth markets, and it will be expanding in the coming years, which will make it Europe's second strongest national economy, after Germany. All of the key carmakers, including the Asian OEMs, are either already represented in Russia or will be establishing their presence there shortly. In addition to quantitative growth, Russia is also experiencing a rise in 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,” says Semen Belyakov, head of BASF Coatings in Russia.

About BASF Coatings

BASF Coatings, the Coatings Division of the BASF Group, develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as decorative paints. BASF has significant market positions in the Coatings sector in Europe, North America, South America and the Asia/Pacific region. In 2007 BASF Coatings achieved global sales of almost 2.6 billion euros. The internet address of BASF Coatings is www.basf-coatings.com.

About BASF

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals. As a reliable partner BASF helps its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF has more than 95,000 employees and posted sales of almost €58 billion in 2007. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

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