AkzoNobel investing €50m in Western China, to meet growing demand

September 25, 2013

AkzoNobel has announced plans to invest a total of more than €50 million in China to build new manufacturing facilities for its Powder Coatings and Decorative Paints businesses, adding further momentum to the company's strategic growth ambitions. 

Both new facilities will be located in Chengdu with the powder facility scheduled to open in 2014 and the deco site starting production in 2015.

The announcement follows the recent start-up of commercial production of Bermocoll cellulose derivatives at the company's multi-site in Ningbo, which will serve the growing demand from customers throughout the region, as well as from AkzoNobel's own decorative paints business. Cellulose derivatives are used in water-based paints and building additives applications.

"China is playing an increasingly important role in our growth strategy and by expanding production capacity we will further strengthen our position as a leading supplier to the Chinese market," said AkzoNobel CEO Ton Büchner.

"We already have a strong manufacturing footprint in eastern, central and southern China," he added. "As demand and volumes continue to rise, we will extend our production and distribution westwards and the new sites will enable us to better serve our customers whenever and wherever they need our products."

Chengdu is one of the fastest growing cities in south western China and has consistently delivered double digit growth over the last two decades. It has established itself as an important industrial hub, resulting in high demand for quality powder coatings and decorative paint, which is expected to remain strong as the area continues to develop.

"Our investments in Chengdu underline our commitment to further developing our business in China and capitalizing on the business opportunities being created by growing domestic demand," said LIN Liangqi, President of AkzoNobel in China.

AkzoNobel currently employs more than 7,700 people in China, including 500 in research and development. Revenue for 2012 was €1.7 billion, the majority being generated from local demand.