Dutch chemical producer AkzoNobel has announced it will spend more than €30 million on a new Performance Coatings plant in Thailand to support regional growth of the business. The project is being supported by the Thailand Board of Investment.

The new facility with an initial capacity of 45,000 t/y will be built on a 120,000m² site in the Hemaraj Eastern Seaboard Industrial Estate in Chonburi. Start-up is scheduled for the third quarter of 2016.

Akzo said the new plant will support several of its Performance Coatings businesses, including Metal Coatings, Protective Coatings, Specialty Coatings and Marine Coatings, as well as certain products from its Decorative Paints business.

"By investing in this new facility we are supporting our continued growth within Thailand, as well as making progress with our regional business expansion strategy," said AB Ghosh, managing director of the Metal Coatings business. "A number of existing operations will be consolidated into the new site, allowing us to achieve world class operational standards," he added.

Thailand is a key market for the Dutch company, said Conrad Keijzer, executive committee member responsible for Performance Coatings. With business in Asia having experienced strong growth over the past several years, he said the new investment "will enable us to further strengthen our position as a leading supplier, both within Thailand and as a hub to support the supply network through the region."