Tikkurila, which is responsible for the paint business of Kemira Oyj, is strengthening its market position in East Europe and Central Asia. In recent months the company has carried out several transactions on the paint market.

At the beginning of this year Tikkurila started production of industrial coatings in Russia by acquiring a 70 per cent interest in two St Petersburg-based producers of industrial coatings. Gamma and Ohtinski zavod poroshkovyh krasok came under Tikkurila's ownership in March.

Tikkurila has exported industrial coatings to Russia and its predecessor, the Soviet Union, since the 1970s. "This purchase will considerably increase Tikkurila's sales and market share on the market for metal industry coatings in Russia," says Ilpo Jousimaa, the President of Tikkurila Coatings Oy.

Last year Tikkurila strengthened its position in the CIS region and East Europe by acquiring Kolorit Paints, a company that produces water-borne paints in Ukraine. In September Tikkurila carried out transactions in Prague in the Czech Republic by acquiring Finncolor, which had been operating as the company importing Tikkurila's decorative paints and industrial coatings.

Central Asia expanding quickly

In autumn 2006 Tikkurila set up a sales company in Kazakhstan that markets decorative paints under the Finnish Tikkurila and Russian Teks product brand. The company is now one of the biggest paint suppliers in Kazakhstan with almost five per cent market share.

"We are seeking growth on the rapidly developing markets in Central Asia, where there are 50 million potential consumers," says Janno Paju, Tikkurila's Vice President Deco Eastern Europe.

"Thanks to the richness of its natural resources, Kazakhstan is the fastest-developing state in the region. Paint consumption is still at a low level, but it's increasing rapidly as the standard of living rises."

>> www.tikkurila.com

There are an increasing number of buildings painted with Tikkurila paints in both East Europe and Central Asia.