Bahrain Review

Hempel sees small rise in output

Pedersen: gaining markets in all segments

Hempel Paint's Bahrain factory saw a small rise inproduction in 2009 with decorative paints accounting for a major portion of theoutput.

Karsten Pedersen, Hempel's area director, said output in2009 was around 5 per cent over the 4 million litres the local factory producedin the year before.

The plant has a total annual capacity of 6 million litres,of which 60 per cent is dedicated to decorative paints, 30 per cent toindustrial paints and 10 per cent to marine paints. Hempel expects to reach the6-million-litre output  mark in thenext couple of years.

Pedersen said new decorative coatings introduced in recentyears including special effects aqua marble and several varieties in the Fusionrange had proved very popular in the Bahrain market. 'We're gaining markets inall three segments. During 2006-08 we were growing 15 to 20 per cent whilegrowth in 2009 has been lower because of the delays in several projects,'Pedersen said. 'So far the order book for 2010 looks promising and we expect togrow by at least a double-digit percentage.' The company has a large showroomfor decorative paints near its plant.

One of the major developments was the inauguration inBahrain of Hempel's first Middle East R&D centre dedicated to decorativepaints, one of eight Hempel laboratories now operating worldwide.

'Having a local development centre will give us a furtheradvantage in terms of providing products suitable for the climatic conditionsspecial to the region,' said Pedersen. 'It is also recognition of developmentaccomplished in the Middle East in different fields.'

Hempel Paints' new regional Decorative R&D Centre in Bahrain will act as the research centre for all six of Hempel's manufacturing facilities in the Middle East (Saudi Arabia, the UAE, Kuwait, Syria, Qatar and Bahrain). It is the first Hempel R&D Centre focused on the decorative segment, and will help Hempel grow in the region by developing products specifically for the Middle Eastern climate.

Pierre-Yves Jullien, Hempel Group CEO, commented: 'Our company has a strong history of innovation focused on customer needs, and our One Hempel-Everywhere strategy ensures that every customer gets great value fromour solutions, no matter where they are in the world. We want to grow in thisexciting region and the decorative segment is an important part of our business. With this new regional Decorative R&D Centre, we are investing inour skills.' 

Latest solutions
Hempel's new regional Decorative R&D Centre will ensurethat decorative customers in the Middle East have access to the latest solutions and technology. Martin Wiese, Hempel Group vice president for R&D, explains: 'We are an innovation-based company and our products are the result of detailed research. One example is Hempatone Ecologica, a coating forinterior walls and ceilings. Hempatone Ecologica was selected as a 'Masterpurchase' by the Users and Consumers Organisation in Spain because it offersexcellent performance and has the European Eco-label for environmentally friendly products. With the regional Decorative R&D Centre in Bahrain, we will ensure that all our latest technology is available for customers in the Middle East and this will result in more solutions with long-lastingperformance and an environmental focus.' 

Paint for Aramco vessel
Another significant development concerning Bahrain waswinning an order to paint at the Asry shipyard a very large crude carrier of Saudi Aramco with Hempasil X3. 'The order involved the application of 50,000litres. 'We're confident we'll get more similar orders,' said Pedersen. 'Hempasil antifouling has won many prizes because it yields huge fuel savingsfor shipowners while at the same time being environmentally   friendly.'

As much as 50 per cent of drydocking paintwork at Asry goesto Hempel. The Hempasil X3 used in the Aramco application was made in Singaporewhile the order was placed at the Bahrain factory. Pedersen said the companyplanned to manufacture the product in one of its Middle East plants in the nearfuture

Total capacity from all five factories in the Gulf (Bahrain,Dammam, Kuwait, Doha and Sharjah) is 75 million litres. The output can beraised to 100 million litres by adding an additional shift in some of theplants.

In Bahrain the company has ample space for expansion butthere are no immediate plans at the moment for that. But with the presentgrowth in Bahrain, Hempel will have to expand the factory within a few years.