Hempel Paints, a global supplier of marine, protective and decorative coatings, plans to move its entire production unit in Saudi Arabia to its new plant in Jeddah’s second industrial city as part of a strategy aimed at meeting the needs of its Saudi customers.

Inaugurated two years ago, the factory in Jeddah is Hempel’s first 100 per cent water-based production factory in the Middle East, the largest in the region, and the second largest in the world.

The strategic move coincides with the centennial anniversary of the inception of Hempel Group.

Unveiling the plan, Ahmed Abdul Aziz, the sales and marketing director at Hempel Paints Middle East, said the move is in line with the market developments and its commitment to meet customer needs and requirements.

"We completely understand that Saudi Arabia, in line with its Vision for 2030, will witness dynamic developments across all aspects, particularly the construction sector, which is the largest in the region," remarked Abdul Aziz.

"Plans are under way to build 40,000 hotel rooms by 2018 in Riyadh and Jeddah and 120 hotels by 2020 in the kingdom," he stated.

According to Raden bin Sa’afaq Al Dweish, the chairman of the Housing and Urban Development Committee of the Eastern Province Chamber of Commerce Industry, around 1.5 million residential units are in demand in the market.

Commenting on Hempel Paints’ current annual production and 2017 expansion plans, Abdul Aziz said: “Built on 15,000 sq m, the factory has production lines with manufacturing capacity of 32 million litres a year. The plan is to increase the maximum capacity to around 40 million litres annually.”

As for Hempel’s market share, Abdul Aziz said the paints and coatings market has a great growth potential, with an estimated value of SR3 billion ($799 million) a year.

According to him, the company is aiming to double its market share in the kingdom.

"Our market share is expected to grow in the next five years due to the company’s commitment to providing its customers with best quality products and services," he noted.

Hempel has been present in the kingdom for more than 45 years, controlling a considerable market share and maintaining strong market positioning thanks to its technologically-advanced paints available at its showrooms located strategically in the kingdom, said Abdul Aziz.

Its decorative paints are widely used by homeowners, architects, and construction companies. Armed with over 100 years of paint expertise, the company produces a wide range of interior, exterior and floor coatings solutions, he added.-TradeArabia News Service