media release

Akzo Nobel Opens New Paper Chemicals Plant in China

Akzo Nobel’s Pulp and Paper Chemicals business, Eka Chemicals, has doubled its presence in China following the official opening of a new site in Guangzhou.

Arnhem, the Netherlands, November 28, 2006 — Akzo Nobel’s Pulp and Paper Chemicals business, Eka Chemicals, has doubled its presence in China following the official opening of a new site in Guangzhou.

The facility—which will produce high quality paper chemicals for the rapidly expanding Chinese paper industry—is not only a key investment in one of the company’s main growth platforms for Chemicals, but also represents the latest milestone in Akzo Nobel’s growth strategy for China.

“Growth in emerging markets is fundamental to our strategic plan,” explained Leif Darner, the Akzo Nobel Board member responsible for Chemicals. “This investment in one of our core activities forms part of the overall growth plan for the Pulp & Paper Chemicals business, which already operates a Chinese facility in Suzhou.”

Added Pulp and Paper Chemicals General Manager, Jan Svärd: “The demand for paper and board in China is among the highest in the world, with the paper industry in Southern China having expanded rapidly over the last five years. With this trend expected to continue, we need to ensure that we remain a leading supplier in the market.”

He went on to explain that an additional benefit of the new Guangzhou facility is its strategic location close to the Pearl River Delta port area. “The new site will enable us to achieve a cost leadership position because our major raw materials will be sourced locally and our major customers are all located within a short distance of the location. We will also have a strong platform for export to other countries in the Asia Pacific region.”

Headquartered in Sweden, Eka Chemicals is a global leader in bleaching technology and paper chemistry, with manufacturing sites located all over the world.

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