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Wednesday, 19 February 2020
Markets & companies, Coatings market

New Akzo Nobel site strengthens leading powder coatings position in China

Thursday, 19 January 2017

Akzo Nobel has officially opened its EUR11 million powder coatings facility in Chengdu, Western China.

New AkzoNobel site strengthens leading powder coatings position in China. Source: Akzo Nobel

New AkzoNobel site strengthens leading powder coatings position in China. Source: Akzo Nobel

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.

Seventh powder coatings site is beeing constructed

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 and is due to open in October this year. Akzo Nobel currently has more than 30 production sites in total across the whole of China.

Strong growth in the Western provinces 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, Akzo Nobel'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."

Innovative technology allows recycling of waste water

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.

Rapid change in Western China

"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 Akzo Nobel'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."

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