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. Last Updated: 07/27/2016

Akzo Nobel to Discuss Plans To Build Paint-Making Plant

Dutch paint-maker Akzo Nobel will meet with its Russian partners at the end of March to finalize plans to invest an initial $10 million into construction of production facilities in the town of Balashikha, located on the outskirts of northeast Moscow, a company official said.

Akzo Nobel, one of Western Europe's leading decorative paint-makers, and the Roskhimneft petroleum-industry company have registered the Akzo Nobel Dekor joint venture in Moscow. Akzo Nobel owns 60 percent of the new company, with the rest belonging to Roskhimneft.

According to Akzo Nobel's web site, Roskhimneft will provide the land for construction of the Balashikha plant.

Akzo Nobel Dekor's general director, Peter de Groot, said Thursday he expects the plans to go forward. "The Russian market has a lot of promise, and will grow rapidly," he said.

De Groot said the Balashikha plant will produce mid-priced high-quality paints, which account for about 30 percent to 50 percent of the decorative paint market. The plant has a planned output capacity of 10 million liters, or 14,000 tons, of paint per year.

If this first phase of the project goes as planned, de Groot said the company will launch Russian production of its organic paints.

The plant will also produce Crown water-resistant paints for indoor and outdoor use. Company representatives said about half of the plant's output will be exported to Western Europe.

Another West European paint-maker is already nearing completion of its own plant in the city of Ramenskoye, on the southern outskirts of Moscow. Owned by the Finnish company Tikkurila, the Ramenskoye plant will produce 10 million liters of paint a year upon construction, said Tatyana Lininchuk, the project's general director.