Having kick started a successful 2016 with its global strategic plan of Journey to Excellence, Hempel Paints Middle East and West (MEW), expects to maintain the momentum in the New Year as it works towards consolidating its position as a leading global coatings company.

Towards this, the company is planning to continue its robust on-going expansion plan by opening new manufacturing plants, adding capacity at its existing facilities and rolling out new products across its Middle East operations spanning Saudi Arabia, Kuwait, Bahrain, Qatar and the UAE.

“For 2017, we are very much confident that group strategy of Journey to Excellence would definitely help us to grow further and lead us to consolidate our position as a leading coatings company, globally,” Parthasarathi Ramprasath, regional sales manager, Hempel (Middle East West) told Gulf Industry in an exclusive interview.

According to him, the company in continuation of its expansion in the Middle East region is now planning to come up with a new factory to meet the surplus demand and supply and to spread Hempel footprint in each and every country of the region. The paints major has recently announced plans to open a new factory in Kuwait in line with its plans to boost the company›s production capacity to double from existing capacity.

“In the year 2017, a new plant will open in Kuwait as an extension of the old one due to the rising demand of our products. This new factory will produce solvent borne as well as water borne products. Hempel is also installing a regenerative thermal oxidizer in the paint production unit that removes the volatile organic compounds to prevent atmospheric pollution,” he elaborated.

Hempel’s total production capacity at its Middle East plants located in Saudi Arabia, Kuwait, Bahrain Qatar and the UAE is crossing over successfully year-by-year with both the business units of protective as well as decorative coatings dominating its output and sales.

Ramprasath: increasing customer focus and internal efficiency has paid

According to the company, Hempel’s total production rose in 2016 and in fact, surpassed the volume it produced in 2015 and now capacity expansions are in the pipeline. 

“Yes, capacity expansions are going on in three different manufacturing locations with the roadmap for new manufacturing units within the GCC. Our manufacturing capacities are substantial to meet market growth together with expansion. In 2016 we have utilised the production potential to fullest in terms of volume,” Ramprasath said.

START OF A NEW JOURNEY

Clearly, the paints major’s optimism flows from a series of developments including the introduction of a new strategy launched in 2016 which Ramprasath said has been ‘very successful’ and could translate into faster sales.

“The year 2016 was a remarkable year for Hempel. Our focus on delivering products and services to customers has been very successful, at the same time we have continued to invest in our own internal capabilities and efficiency.

“In 2015, Hempel celebrated its 100th anniversary and marked the end of Hempel’s highly successful One Hempel-One Ambition growth strategy and in 2016 the company launched Journey to Excellence – a new strategy that focuses on further increasing customer focus and internal efficiency which will take us to 2020,” he remarked.

Additionally, during the last year, the company achieved many milestones, including:

• Launched a new assortment for internal tank linings, Hempaline Prepare (pre-treatment of lining products) and Hempaline Defend (chemically resistant lining dealing with corrosive cargos and defending the substrate from cargo and vice versa;

• Launched Hempadur Avantguard activated zinc primers for a range of industries and applications, from offshore oil and gas platforms to wind turbines. Based on unique, patented Avantguard technology, Hempadur Avantguard coatings provide better anti-corrosion protection than conventional zinc epoxies;

Hempel Paint’s factory in Jeddah, Saudi Arabia

• Launched a new range of high performance multi-layer flooring systems and coatings for concrete floors in the Middle East as Strata Floor Coatings, currently being produced in Hempel Plant,Saudi Arabia;

• Opened its largest showroom in the Middle East at Riyadh, Saudi Arabia which spans across 1,000 sq m.

“Undoubtedly, the market is receiving the products positively and there are more series of products about to come by next year. Hempel MEW is very confident that it will give value addition and enhancement to the customers as well as successful footprint for our operations,” said the confident spokesperson. The company said it is supplying to all the major projects in the region.

ORGANIC GROWTH IN 2017

Hempel expects a reasonable and organic growth for 2017 and onwards and hopes addition of new products in the assortment and expansion plan would be the major factors that would contribute to the exponential growth in the coming years.

Foreseeing sales to go up in the New Year, Ramprasath said: “We can say for 2017 we are going top-of-the-line and we are ahead of the schedule as what we have planned for.”

At the same time, the company is not losing sight of the fact that the sharp decline in oil prices is bound to have an impact on its oil and gas sub-segment. “However, we are seeing an increase in infrastructure investment by many governments and we expect that the overall trend for our protective segment will remain positive,” he added.

“The core strength of Hempel Paints MEW is always the Marine coatings and this is the point from where we have started our journey 100 years back. We adjusted our journey to the changing world and changing customer needs, which should allow us to maintain our momentum into 2017 and beyond as we look to achieve our goal of consolidating our position as a leader global coatings company,” he added.