AkzoNobel Breaks Ground on China Decorative Paints Site
Dutch chemical producer AkzoNobel has broken ground on its new decorative paints site at Chengdu, the capital city of China's Sichuan Province.
The new facility is part of an investment of more than €50 million in construction of new production facilities for both powder coatings and decorative Paints.
The first phase of the project, the company's fourth plant for decorative paints in China, is scheduled to be opened in 2016, with full operations expected by 2017.
Speaking at the ground-breaking ceremony, AkzoNobel CEO Ton Büchner said the investment "is further proof of our ongoing commitment to China, which is one of our most strategically important markets."
Establishing the new facility also gives added momentum to the company's organic growth ambitions, as well as enabling it to continue expanding its manufacturing footprint in Asia, Büchner said.
Ruud Joosten, AkzoNobel's executive committee member responsible for decorative paints, pointed to "strong demand for our products," adding that "we will continue to innovate to meet the increasing needs of the market."
The new state-of-the-art plant, which will manufacture the full range of AkzoNobel's decorative paint offerings and market them in China, will create 100 jobs locally.
The Dutch chemical producer employs more than 7,400 people in China, including 500 in research and development. In 2013, it generated revenues of €1.6 billion, the majority coming from local demand.
Within Sichuan province, AkzoNobel currently operates a regional office, a powder coatings production site and a car refinishes training center. A new powder coatings production site is also under construction.