Litum restarts coatings production at former Hempel plant

Coatings production resumes in Ulyanovsk

Litum has restarted the former Hempel coatings plant in Ulyanovsk, Russia. The facility stands in the Zavolzhye industrial park. Employees who had been on enforced leave have returned to work, according to the regional government.

The reopened site includes three operating areas:

• paint and coatings production lines;
• raw-material and finished-product storage;
• the factory laboratory.

Governor Alexei Russkikh visited the plant and discussed its development with executives. The regional authorities identified companies from China and Turkey as new suppliers of raw materials and components.

The plant aimed to reach design capacity by the end of 2024, Russkikh said. The September restart and year-end ramp-up target were separate stages. Interfax reported the reopening on 30 September.

Hempel’s earlier shutdown

Hempel stopped its Russian operations on 1 March 2022. The suspension covered deliveries into and out of the country, domestic deliveries and the acceptance of orders. Production in Ulyanovsk was closed safely as part of that decision.

On 6 April 2022, the Danish coatings company announced its intention to leave permanently following a strategic review. It was considering different scenarios for a controlled exit. Hempel had operated in Russia since 1996 and employed 124 people in the country at that time.

The workforce figure covered Hempel’s Russian operations, rather than a separately stated Ulyanovsk headcount. The company’s dated closure announcement set out the delivery restrictions and factory shutdown alongside its plans to withdraw.

Hempel attributed the March suspension to increasingly difficult trading conditions during the war in Ukraine. Its management pledged to seek protection for the future employment of Russian colleagues while preparing to step away from the business.

Asset transfer and the regional restart plan

On 13 July 2023, Hempel announced the completed sale of its Russian subsidiary to Atomstroykomplex. The transaction included the legal entity’s assets and employees. Hempel said the new owner took them over immediately, with no active business included in the sale.

The transaction followed approvals from the Danish and Russian authorities. Hempel did not disclose its financial terms. Atomstroykomplex was described as a Yekaterinburg company active in real estate development and building materials, with construction, production and engineering businesses.

Existing equipment and industrial customers

By 31 August 2023, the Ulyanovsk regional government placed the factory within Litum and reported discussions between Russkikh and the company’s executives. Litum director Andrei Druzhinin planned to retain the technological lines and equipment transferred by the former owner.

The proposed customer sectors included construction, shipbuilding, energy, oil and gas, and large infrastructure projects. The August announcement envisaged a restart before the end of 2023; during the stoppage, employees were receiving two-thirds of their wages. The reopening reported in September 2024 followed that earlier plan.