AsianScientist (Mar. 28, 2011) – Dutch paints and specialty chemical group, AkzoNobel, is to invest more than €60 million ($85 million) in boosting production capacity for its paint and building material thickeners (Bermocoll cellulose derivatives) in China. It plans to double revenue in China to €3 billion ($4.2 billion) by 2015.
AkzoNobel currently employs around 6,700 people in China, with revenue for 2010 totaling €1.3 billion. The majority of revenue is generated from local demand.
Besides the new plant, the company’s Functional Chemicals business already operates facilities in Ningbo for chelates, ethylene amines and ethylene oxide. An organic peroxides facility is also due to come on stream in 2011.
The new Bermocoll unit should be on stream in early 2013 and the funding allocated for this facility will bring the total investment in Ningbo to more than €320 million.
“Ningbo is the ideal location for the new facility as the infrastructure is already in place and we have access to on-site production of ethylene oxide, as well as being close to other key suppliers,” added Managing Director of AkzoNobel Functional Chemicals, Jan Svärd. “The fact that Asia is the world’s fastest-growing market also means that building the plant in China makes perfect strategic sense.”
Based on a natural polymer, the company’s cellulose derivatives are sourced from wood pulp or cotton linters. The main application areas are water-based paints, building additives and pharma/healthcare.
As well as constructing a new facility at its Ningbo multi-site in China, the company now has 27 manufacturing locations in China.
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Source: Akzo Nobel N.V..
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