MOSCOW (MRC) -- AkzoNobel has officially opened its EUR11 million powder coatings facility in Chengdu, western China, said the company on its website.
The new site will help to meet growing demand in the region and supply customers with a full range of powder products for the automotive, construction, furniture and IT industries.
The company now operates six powder coatings sites in the China region, while a seventh – the biggest powder coatings plant in the world – is currently being constructed in Changzhou and is due to open in October this year. AkzoNobel currently has more than 30 production sites in total across the whole of China.
"The opening of our Chengdu production site will strengthen our position as the global leader and China’s largest powder coatings supplier," said Conrad Keijzer, AkzoNobel’s Executive Committee member responsible for Performance Coatings. "It will allow us to leverage the strong growth that we see in the western provinces of China, furthering our organic growth momentum."
Powder coatings have a sustainability advantage in that they do not require the use of solvents. The Chengdu site is also notable from a sustainability perspective as it is the company’s first powder facility in China to use innovative technology that allows full recycling of waste water.
Investment in the new site reflects the Chinese government’s Western Development Policy, which has prompted rapid industrial growth in the region. For example, Longquanyi District – where the Chengdu plant is located – has become one of the largest car manufacturing centers in the country.
"We are going through a rapid change in western China and that is generating more demand for our business," explained Eddie Wang, Business Director for AkzoNobel’s Powder Coatings business in North Asia. "The new Chengdu site is an important investment in the region and will enhance our support to local customers, particularly those in the automotive industry."
As MRC informed earlier, in 2014, AkzoNobel completed the expansion of its Industrial Coatings site in Songjiang near Shanghai in China, doubling annual production capacity and creating the company’s biggest plant for packaging coatings in the world.
AkzoNobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC