Citation
(2003), "Akzo Nobel announces plans to build architectural-coatings plant in China", Pigment & Resin Technology, Vol. 32 No. 6. https://doi.org/10.1108/prt.2003.12932fab.013
Publisher
:Emerald Group Publishing Limited
Copyright © 2003, MCB UP Limited
Akzo Nobel announces plans to build architectural-coatings plant in China
Akzo Nobel announces plans to build architectural-coatings plant in China
Akzo Nobel announced plans to build a new architectural-coatings production facility in China, with construction scheduled to begin by the end of the year. The company said that the plant, which will produce water-borne wall paints, is expected to be operational by the first quarter of 2005. The plant will be built at Akzo Nobel's existing manufacturing site in Suzhou, near Shanghai, where the company currently operates production plants for its car refinishes, transportation coatings, powder coatings, and coil coatings businesses. The new plant will include R&D facilities and a warehouse for raw materials and finished goods.
"China continues to be one of the most important emerging markets for the Coatings group and this investment underlines our ongoing commitment to establish a significant presence there for all our key businesses," said Rudy van der Meer, the member of Akzo Nobel's board of management responsible for coatings. He said that the company has been selling architectural paints in China under the Levis brand for nearly 5 years, giving Akzo Nobel "a solid foothold in this fast-expanding market. We now need a new facility to further grow the business." With construction of the new plant, Akzo Nobel will transfer production from a site in eastern Shanghai.
Jan Andersson, General Manager of Akzo Nobel Decorative Coatings International, said the move to build the new plant "shows our commitment to and belief in the Chinese paint market". He said the site "will give us the platform to help expand our activities".
Akzo Nobel Coatings currently operates six production sites in China, including a 50-50 joint venture and five majority owned or wholly owned sites. The plants are located in Beijing, Shanghai, Suzhou, Shenzen, Ningbo, and Dongguan City. The Coatings group employs more than 1,600 people in China and has expanded its sales in China to more than 200 million euros in 2002, with the sales increase resulting from "organic" growth and selective acquisitions.