AkzoNobel Opens New Decorative Paints Site in Western China

AkzoNobel has started production at its fourth – and largest – plant for decorative paints in China. Located in Chengdu, the new facility represents an important milestone in the company’s growth plans for the west of the country. The new plant is part of an investment in excess of €50 million to build manufacturing facilities for both Powder Coatings and Decorative Paints.

Located in Qionglai, Chengdu, the new 55,000-square meter decorative paints site observes the company’s highest sustainability and safety standards. All products produced will be waterborne and solvent-free, and the facility’s manufacturing environment will generate lower carbon emissions and be more sustainable. Given its central location, the site will enable extensive savings in transportation costs and an optimized logistics network that will reduce carbon emissions by eight kilotons per year – equivalent to carbon emissions of 3,000 tons of standard coal.

Ruud Joosten, Executive Committee member responsible for Decorative Paints at AkzoNobel, said: “China’s rapid growth in urbanization has meant an increase in demand for many of our products and services in the region. This new site enables us to respond to this demand and have the expertise on the ground locally to share our knowledge with industry stakeholders. We are looking forward to supplying more essential products to more customers in China than ever before.”

AkzoNobel’s Decorative Paints sales have grown significantly in Western China. In 2015, the sales volume in the region constituted around one quarter of its overall market revenue in China.  Contributing to the sales growth is the increasing demand for its re-painting services, as well as its eco-friendly products and product solutions to the region’s real estate development.

“As the site becomes fully operational, we will be able to provide greater value for our customers in the region through our enhanced geographical coverage and production capacity. Centered in Chengdu, the site enables us to extend our reach to southwestern and northwestern regions, and to provide quality products that are customized for the needs of local customers, in a timely, efficient way,” said Dr. Lin Liangqi, President of AkzoNobel China, and Managing Director of Decorative Paints, China and North Asia.

Zhaoxu Hui, Mayor of Qionglai, said: “Western provinces are currently experiencing urbanization at an unprecedented speed. With its specialties in color and sustainability, AkzoNobel will bring in great value to this journey helping us to provide more colorful and livable urban space.”

AkzoNobel now has four decorative paints production plants in China. Its other sites in Guangzhou, Shanghai and Langfang cover the southern, eastern and northern regions of the country, respectively. AkzoNobel employs around 7,500 people in China and generated €1.8bn in locally driven revenues in 2015.