AkzoNobel Hikes China Paints Capacity
Dutch paints and coatings group AkzoNobel has invested an undisclosed sum in a new production line in China for water-based texture paints.
It will produce Dulux products for various markets, such as interior decoration, architecture and leisure.
The site in Songjiang, a district of Shanghai, is one of four plants in China that make water-based decorative paints and is also one of the company’s largest worldwide. Akzo’s other sites in China are in Guangzhou, Langfang and Chengdu.
“As AkzoNobel's largest single country market, China has huge potential,” said Mark Kwok, president of China/North Asia and business director for decorative paints China/North Asia. “The new production line will help to enhance our leading position in paints and coatings in China by expanding new markets and further driving us our towards our Grow & Deliver strategic ambitions.”
The Amsterdam-based firm said China’s coatings industry is expected to continue expanding, largely driven by the country’s increasing focus on energy conservation and emission reduction. Consequently, the production of low VOC, water-based paints will need to keep expanding to keep up with demand.
Since the start of 2021, AkzoNobel has invested nearly €7.5 million in the Songjiang site, including projects to introduce new solar energy systems and a more automated high-speed filling line.
In August 2020, the company announced it would undertake a huge automation upgrade of its Guangzhou plant in order to exclusively produce water-based decorative paints. The upgrade, which cost 26 million yuan, increased capacity of water-based paints from 88 million liters per year to 140 million.
Author: Elaine Burridge, Freelance Journalist
