AkzoNobel Starts China Paints Plant

03.05.2016 -

AkzoNobel has started production at its fourth, and largest, decorative paints plant in China. Located in Qionglai, Chengdu, the facility will produce waterborne and solvent-free paints. The 55,000m2 site is part of an investment of more than €50 million to build production plants for both powder coatings and decorative paints and will extend AkzoNobel’s reach to customers in the southwestern and northwestern regions.

Executive committee member responsible for decorative paints at AkzoNobel, Ruud Joosten said there was increased demand for many of its products and services in the country driven by China’s rapid growth in urbanization.

The company’s decorative paint sales have grown significantly in the western region which accounted for roughly 25% of its overall market revenue in China in 2015. Increasing demand for re-painting services as well as eco-friendly products and solutions for real estate development all contributed to the sales growth, AkzoNobel said.

Because of its central location, the site will also yield extensive savings in transportation costs and an optimized logistics network will reduce carbon emissions by 8,000 t/y.

AkzoNobel’s other China decorative paints plants are in Guangzhou, Shanghai and Langfang covering the southern, eastern and northern regions respectively. The company employs around 7,500 people in China and generated €1.8 billion in locally driven revenues in 2015.