New AkzoNobel Site Strengthens Leading Powder Coatings Position in China

AkzoNobel has officially opened its Euro 11 million powder coatings facility in Chengdu, western China. The new site will help to meet growing demand in the region and supply customers with a full range of powder products for the automotive, construction, furniture and IT industries. AkzoNobel announced on January 17.
The company now operates six powder coatings sites in the China region, while a seventh – the biggest powder coatings plant in the world – is currently being constructed in Changzhou (eastern China) and is due to open in October 2017. AkzoNobel currently has more than 30 production sites in total across the whole of China.
“The opening of our Chengdu production site will strengthen our position as the global leader and China’s largest powder coatings supplier,” said Conrad Keijzer, AkzoNobel’s Executive Committee member responsible for Performance Coatings. “It will allow us to leverage the strong growth that we see in the western provinces of China, furthering our organic growth momentum.”
Powder coatings have a sustainability advantage in that they do not require the use of solvents. The Chengdu site is also notable from a sustainability perspective as it is the company’s first powder facility in China to use innovative technology that allows full recycling of waste water.
Investment in the new site reflects the Chinese government’s Western Development Policy, which has prompted rapid industrial growth in the region. For example, Longquanyi District – where the Chengdu plant is located – has become one of the largest car manufacturing centers in the country.
“We are going through a rapid change in western China and that is generating more demand for our business,” explained Eddie Wang, Business Director for AkzoNobel’s Powder Coatings business in North Asia. “The new Chengdu site is an important investment in the region and will enhance our support to local customers, particularly those in the automotive industry.”
Headquartered in Amsterdam, the Netherlands, AkzoNobel has approximately 45 000 people in around 80 countries, while its portfolio includes well-known brands such as Dulux, Sikkens, International, Interpon and Eka.
The new Chengdu site is executed in two phases. The first phase has come on line now, while the second phase is expected to be opertional in 2019.