Akzo Nobel will expand its powder coatings operations in China this year with a pair of new factories. One will be in Langfang, halfway between Beijing and Tianjin, with the second facility being constructed in Guangdong Province, at a site neighboring the company’s existing powder operation in Shenzhen.
Akzo Nobel’s powder coatings business moved into China in 1992, according to Rudy van der Meer, member of Akzo Nobel’s board of management responsible for coatings. “Since then we have consolidated our position through acquisition and organic growth. We have continued to invest over the years and have successfully managed to grow quicker than what has undoubtedly been the world’s fastest growing powder market. These two new factories will continue our strategic focus on this important region.”
Bill McPherson, general manager of Akzo Nobel Powder Coatings, added, “Our Interpon powder coatings business serves both foreign and local customers in China. We service the needs of those who export their powder coated goods, as well as the domestic operations.”
McPherson called Guangdong Province an important region for Akzo’s exporting customers operating in metal furniture, electrical and other goods. He said the region also has a high concentration of powder users operating in architectural aluminum and IT.
“This particular expansion involves building a new factory on 22,000-sq. meters of land, with scope for another 12,000-sq. meters to be used in later expansion phases. It will support our key strategic goal, which is to continue growing ahead of the market,” McPherson said.
According to company officials, with the Langfang project, Akzo will relocate its existing Beijing facility to a new 17,000-sq. meter site.
“Langfang is one of the fastest developing industrial regions of North China and one of our largest functional powder customers has its operations there. This expansion will enable us to better serve its needs, as well as respond to general market growth in that region,” McPherson added.