AkzoNobel plans further investment in China

AkzoNobel plans further investment in China 
AMSTERDAM, THE NETHERLANDS -- (Marketwire) -- 03/19/13 --  AkzoNobel
has announced its intention to invest a further EUR65 million in
China. The investment will be used to boost capacity and significantly
improve operational excellence at AkzoNobel's Surface Chemistry
manufacturing sites in
Boxing and Ningbo. 
More than half the money is being invested in the company's facility
in Shandong
province, which was taken over as part of the acquisition
of Boxing Oleochemicals in January 2012. As well as building a
multipurpose reactor to
expand local production capacity for amines,
significant funds are also being
made available to align HSE
practices at the site with the rest of AkzoNobel. 
In Ningbo, a new alkoxylation unit will be built, bringing the total
investment
at the multi-site close to the EUR400 million mark. 
"There is increasing demand for our specialty surfactant products
across Asia
and investing in Shandong province will ensure that we
provide a strong local
manufacturing operation in order to support
our customers as they themselves
continue to grow", said Werner
Fuhrmann, AkzoNobel's Executive Committee member
responsible for
Specialty Chemicals. "Ningbo also remains fundamental to our
growth
ambitions in the region and has a crucial role to play as we continue
to expand." 
Added Bob Margevich, Managing Director of AkzoNobel's Surface
Chemistry business: "The investment in Shandong province will enable
us to stay competitive and will enhance our manufacturing footprint
in a key strategic region. The improved process capabilities and
increased production capacity will
furthermore strengthen our
leadership position in specialty surfactants. It's
also crucial that
we maintain stringent HSE standards at all our sites, so we
are
taking all the necessary steps to ensure the best possible working
environment for our employees." 
As part of the investment decision, AkzoNobel will exit the merchant
fatty acid
business in Boxing, closing down two out of three fatty
acid plants at the site,
affecting about 200 employees. 
AkzoNobel's Surface Chemistry business is a global leader in the
manufacture and supply of specialty surfactants, synthetic and
bio-polymer additives, and specialty polymers. These products are
used as formulation ingredients and process aids in many
applications, ranging from home and personal care to asphalt road
paving. 
AkzoNobel currently employs more than 7,000 people in China, with
2012 revenue
totaling EUR1.7 billion, the majority being generated
from local demand. 
- - - 
AkzoNobel is a leading global paints and coatings company and a major
producer
of specialty chemicals. We supply industries and consumers
worldwide with innovative products and are passionate about
developing sustainable answers for
our customers. Our portfolio
includes well-known brands such as Dulux, Sikkens,
International and
Eka. Headquartered in Amsterdam, the Netherlands, we are consistently
ranked as one of the leaders in the area of sustainability.
With
operations in more than 80 countries, our 50,000 people around
the world are
committed to excellence and delivering Tomorrow's
Answers Today(TM). 
Pdf file AkzoNobel press release:
http://hugin.info/130660/R/1686202/552668.pdf 
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Source: Akzo Nobel NV via Thomson Reuters ONE 
[HUG#1686202] 
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