The Danish Hempel company will begin construction by the end of June of a plant to produce paint and varnish in the Ulyanovsk region, it announced late last week.
The company's first Russian plant will begin producing 16.3 million liters of product a year after December 2012 and will reach a capacity of 26 million liters when it switches to double shifts.
Hempel will be located in the Zavolzhye special economic zone. Hempel is investing 23 million euros ($34.5 million). It will pay a lowered profits tax of 13.5 percent and no property tax while the project recoups its investment, up to five years, the company and the regional government said late last week.