Hempel, one of the Middle East’s leading paint manufacturers, is set to begin commercial operations at its new factory in Jeddah in January, a senior official says. The Jeddah plant is the company’s second in Saudi Arabia after the Dammam facility, which was opened four decades ago.

The new plant will strictly produce decorative waterborne paints and is the largest production facility for that kind of product in Hempel’s Middle East network, said the company’s regional supply chain manager Pampala Sukumar. The facility has capability to produce between 32 and 40 million litres per year.

“The Jeddah factory is a statement by Hempel ensuring its position as a leading paint company in the kingdom. After the opening of the first factory in 1973, we’re opening the Jeddah plant 40 years on,” commented Sukumar.

“The paint market is growing steadily as a direct response to the growth of the construction and real estate sectors and the big spend by the Saudi government on housing projects,” he said.

“The new plant is a direct response to increased market demand for high-quality decorative paint and it is in alignment with the Hempel Group’s growth strategy that lays stress on gaining a greater market share especially with the huge growth in the construction sector in Saudi Arabia.

“The Hempel group has aligned its product ranges in the Middle East, given the similarities in various markets; yet breakthrough products such as the Topaz Zero with no VOCs will be first produced in this plant.”

SALES AND PROJECTS

Hempel’s sales in the kingdom amounted to $35 million in 2012, up 12 per cent over the previous year. Around 5 per cent of the Dammam plant’s output was exported. The company is optimistic it will perform strongly this year with year-to-date growth by the first fortnight of October already registering 15 per cent.

This year Hempel completed supplying its paint products to the Holy Masha’er rail line in Makkah and the 500-bed North Jeddah Hospital. Also this year, it will begin supplying the new King Abdul Aziz Airport in Jeddah and the extension of the Holy Mosque in the same city.

In 2011 and 2012, Hempel delivered its state-of-the-art intumescent paint to Tabuk International Airport and its Topaz semi-gloss waterborne emulsion paint to the Haramain High Speed Railway, two among several major projects it was involved with.

Hempel plans to open over 30 new showrooms in Saudi Arabia in 2014 and has signed up with a major agency in the kingdom to better communicate its brand and products to the market.