media release

New Chinese Site Consolidates Akzo Nobel’s Leadership in Powder Coatings

PRESS RELEASE: Akzo Nobel Powder Coatings has officially opened its fifth manufacturing plant in mainland China—the first to be located in the west of the country.

Arnhem, the Netherlands, May 23, 2007 — Akzo Nobel Powder Coatings has officially opened its fifth manufacturing plant in mainland China—the first to be located in the west of the country.

The company is already the biggest powder supplier in China and the new facility—situated in Chengdu, Sichuan province—will further improve service to the strong architectural, general trade coater and functional markets.

“China’s powder coatings market is the world’s largest and continues to enjoy double digit growth,” explained Powder Coatings General Manager Rob Molenaar. “Akzo Nobel has already stated its aim of growing the company’s total sales in China to USD 1 billion by 2010 and this new investment is an integral part of that strategy.”

Akzo Nobel CEO Hans Wijers: “The company is committed to accelerating its growth strategy in China and this new facility is the latest in a series of ongoing developments. The official opening comes just weeks after our recent announcement regarding a EUR 250 million investment in a chemicals multi-site in Ningbo, while we will also be opening new chemicals and coatings plants in China in June. So it’s clear that we mean business.”

Nobel—the biggest global manufacturer of powder coatings—already operates Chinese powder sites in Bao An (in the south), Ningbo and Suzhou (central China) and Langfang (in the north). The new Chengdu plant is located in a part of the country where markets have grown strongly in recent years, reflecting the Chinese central government’s policy of encouraging investment in less developed areas, away from the prosperous eastern and southern coastal provinces.

“We have been manufacturing powder coatings in China since 1991,” said Alan Kwek, General Manager for Akzo Nobel Powder Coatings’ Asia Pacific business. “The new Chengdu plant is not only testament to our belief in continued strong market growth, but also demonstrates our ability to follow our customers into new geographic areas.”

added that 33 people will initially work at the site, bringing the company’s total number of Powder Coatings employees in China past the 1,000 mark.

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