Feature Article on International Paint and China's Open Door Policy     

International Paint of AkzoNobel is a renowned brand among the trades, albeit the general public may hardly know it. The company consists of two business units, namely, protective and marine coatings. The offerings of protective coatings have been deployed in many high-profile projects in China such as Water Cube, new CCTV building, Beijing South Railway Station, Beijing Olympic Games National Stadium (Bird's Nest), Terminal 3 of Beijing Capital International Airport, Guangzhou Baiyun International Airport, Shanghai Grand Theater and Shanghai Stadium. The marine coatings unit is the market leader in technology in China as well as worldwide.
   Jackson Chan, General Manager of Protective Coatings and Mr. Li Xi Yuan, Assistant General Manager of Marine Coatings were involved in the process when International Paint made inroads into China thirty years ago. Chan noted that the evolution of China's economic reform is instrumental to the rapid developments of International Paint in China.
   Li recalled that in July 1979, the minister of the Ministry of Chemical Industry of China led a delegation to the UK. They visited several companies there including International Paint and were deeply impressed. In light of this, the minister recommended International Paint to consider co-operating with Kai Lin Paint which was the leader of the marine coating market in China at that time.
   Li said that the senior management of International Paint responded quickly and its board representatives paid a visit to Kai Lin in Shanghai four months later. The two sides started negotiations on co-operation in 1980 and reached an agreement two years later. According to the agreement, International Paint sent its technical experts to be based in the Kai Lin paint as consultants, and production started to commence in 1984.   
   The joint efforts soon bore fruits and inked its first deal with COSCO's bulk carrier "Tai Kang Hai", which was put into service in 1985. In order to showcase the company's support to this China venture, International Paints hosted its board meeting in Shanghai in July 1984. Its 17 directors also made use of this opportunity to visit Kai Lin.
   The International Paint has been swift in its development tempo in China since then. International Paint discussed with Kai Lin, as well as China State Shipbuilding Corporation (CSSC) and China Ocean Shipping (Group) Company (COSCO) on the possibility of establishing a joint venture. A deal was made in August 1989. Production commenced in December through leasing the manufacturing facilities of Kai Lin. In 1991, the newly established JV of International Paint bought a 3-hectare plot to build its own manufacturing site in Jinqiao Development Zone of Pudong District of Shanghai. It is also the second company in the zone. International Paint's marine coatings business clinched the no.1 market position in 1996.
   The marine coatings JV of International Paint in China is going to celebrate its 20th anniversary at the end of 2009. The production site of protective coatings in Suzhou is also growing vigorously. Chan pointed out that two factors will be crucial to the future success of International Paint in China, namely, the bullish Chinese economy and the competitive edge of its partner company AkzoNobel.
   AkzoNobel has made substantial investment in China. As of 2008, the total investments of AkzoNobel in China amounted to EURO 861 million, representing 25 manufacturing facilities, one innovation center, one service center as well as a nation-wide network of sales offices. These operations are supported by a team of 6 300 people. The company is investing an additional EURO 250 million to build a multi-site in Ningbo.