AkzoNobel Expands MCA Capacity to 60 000 T/A at Taixing Plant   

By Lily Wang     

AkzoNobel celebrated the official opening of a monochloroacetic acid (MCA) plant expansion at Taixing, Jiangsu province, eastern China on April 8th, underlining its strategic commitment to investing in high growth markets.
   The Taixing site - which now boasts production capacity of 60 000 t/a - is the largest of its kind in China. It will help to meet steadily increasing demand for MCA in China, where the market is growing in line with GDP at more than 10% annually. MCA is a chemical intermediate which is widely used for the production of agrochemicals, carboxymethylcellulose (CMC), surfactants and a variety of other applications.
   The Taixing MCA plant started up in 2002 with an initial capacity of 25 000 t/a. And now the plant - which has more than doubled the original design capacity - incorporates state-of-the-art proprietary technologies and best-in-class HSE standards to deliver a superior cost position coupled with the lowest environmental footprint available in the market.
   The Taixing plant represents the latest in a series of key developments for AkzoNobel in China. In 2009, the company inaugurated a Powder Coatings Technology Center in Ningbo, Zhejiang province, while in December 2009, the new chelates facility located at the Ningbo multi-site became operational. The Ningbo multi-site with a total investment of 275 million Euros is due to be officially opened this November.
   AkzoNobel China achieved Euro 1 billion of revenue in 2009, almost the same as that of 2008 while EBITDA in the region saw a 11% growth, according to Mr. Jorn Seiero, President of AkzoNobel China. Furthermore, the Asian region revenue accounted for 20% of the group's total revenue (Euro 13.9 billion), stood at Euro 2.8 billion by rough calculation. As of 2009, the global chemicals supplier has more than 25 sites in China, among them, 19 sites for performance coatings, three for decorative paints and 6 for specialty chemicals.
   "China is pivotal to our global business development and all investments are clear indications of our commitment to strengthen our positions and ramp up our capabilities in high growth regions," said Rob Frohn, the AkzoNobel Board member responsible for Specialty Chemicals.
   For AkzoNobel MCA business, the company is presenting on all continents with leading positions and has a global No. 1 market share of 25%, with sites in Delfzijl; the Netherlands; Taixing, China; Omi, Japan (a 50/50 joint venture between AkzoNobel and Denki Kagaku Kogyo K.K) and LeMoyne, USA. AkzoNobel is fully committed to MCA business with strong focus on continued growth, both globally and within China.
   In 2009, the Specialty Chemicals business contributed to a 37% share of the group revenue and 43% in the total EBITDA.