Akzo Nobel has formed a joint venture in Indonesia with PT Bina Propertindo Edikarya to produce decorative paint for the Indonesian market.
“The decorative paint market in Indonesia is very big, despite the fact that the per capita consumption still is relatively low,” said Rudy van der Meer, member of the Akzo Nobel board of management responsible for coatings. “This joint venture leaves us ideally placed to play a major role in future growth in this area, because our position will be increased now that our products are being produced locally.”
Production for the new company will be based in Cikarang, on the premises of Akzo Nobel’s marine and protective coatings business unit.
“This is an important step in increasing our market share in the Asia-Pacific region where we already have operations in China and Vietnam,” added Jan Andersson, general manager of Akzo Nobel decorative coatings international, who is also responsible for the Indonesian joint venture. “Indonesia is a big market with great potential.”
Also in June, Akzo Nobel signed a contract with its joint venture partner in Korea, DPI Co., Ltd. (formally Daihan Ink & Paint), to acquire a manufacturing site in Chilseo, South Korea. The facility toll manufactures products for Akzo-DPI joint venture business, International Paint (Korea) (IPK). As part of the deal, Akzo Nobel will acquire an additional 10% share in IPK, upping its stake to 60%.
International Paint (Korea), operational since 1980, sells products in the powder, marine and protective coatings markets.
“The purchase of this new facility and the increase in shareholding will enable Akzo Nobel to further strengthen its position in this important region, which is in line with our global strategy,” said Mr. van der Meer.
“Our International coatings brand has a strong position in this market,” added Leif Darner, general manager of the marine and protective coatings business unit. “Integrating the Korean factory into our global network will allow us to more rapidly meet our customers’ specific requirements.”