media release

Akzo Nobel expands powder coatings operations in China

Press Release - Akzo Nobel is to expand its powder coatings operations in China. Two new factories will be constructed during 2004 in a move which will further build on the company's world leadership status in powder coatings and strengthen its position in China, the fastest growing powder market in the world.

Commented Rudy van der Meer, Member of Akzo Nobel’s Board of Management responsible for Coatings: “Akzo Nobel’s powder coatings business moved into China back in 1992. Since then we have consolidated our position through acquisition and organic growth. We have continued to invest over the years and have successfully managed to grow quicker than what has undoubtedly been the world’s fastest growing powder market. These two new factories will continue our strategic focus on this important region.”

Added Bill McPherson, General Manager of Akzo Nobel Powder Coatings: “Our Interpon Powder Coatings business serves both foreign and local customers in China. We service the needs of those who export their powder coated goods, as well as the domestic operations. We are also well positioned to service our customers throughout China as we have four plants, strategically located from south to north.”

The expansion plan involves building two new factories: one in Langfang - which is halfway between Beijing and Tianjin - the other in Guangdong Province in the south, on a site neighboring the existing powder operation in Shenzhen.

Continued McPherson: “Guangdong Province is an important region for our exporting customers operating in metal furniture, electrical and other goods, and also has a high concentration of powder users operating in architectural aluminum and IT. This particular expansion involves building a new factory on 22,000 square meters of land, with scope for another 12,000 square meters to be used in later expansion phases. It will support our key strategic goal, which is to continue growing ahead of the market.”

“The Langfang project involves us relocating from our existing Beijing facility to a new site of around 17,000 square meters. Langfang is one of the fast developing industrial regions of North China and one of our largest functional powder customers has its operations there. This expansion will enable us to better serve its needs, as well as respond to general market growth in that region.”

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