Henkel Opens World’s Largest Adhesives Factory in China

  Henkel Opens World’s Largest Adhesives Factory in China

      New plant in Shanghai to serve customers in emerging Asian markets

Business Wire

SHANGHAI -- September 26, 2013

Henkel inaugurated the world’s largest adhesives factory in Shanghai on
September 18, 2013. With this new production facility the company is expanding
its production capacity in a major emerging market and will deliver its
innovative adhesive technologies more quickly to the growing number of
customers based in China and the Asia-Pacific region.

The Dragon Plant is a model for sustainability and efficiency. (Photo:
Business Wire)

The Dragon Plant is a model for sustainability and efficiency. (Photo:
Business Wire)

The new factory, which is also known as the “Dragon Plant” at Henkel,
comprises 150,000 square meters of space and is now the central production
site for industrial adhesives in China and the Asia-Pacific region. Customers
being served by the new adhesives plant include enterprises in the automotive
industry and various consumer goods sectors. Annual output is forecast to
reach up to 428,000 metric tons of adhesives.

“This new adhesives factory will contribute significantly to the achievement
of our strategy 2016: It will enable our Adhesives business to expand and
leverage its global reach, and win market share in emerging markets,” said
Kasper Rorsted, Chairman of the Management Board of the Henkel Group. The
inaugural ceremony was attended by numerous Chinese politicians and
businesspeople and also by Dr. Simone Bagel-Trah, Chairwoman of the
Supervisory Board and of the Shareholders’ Committee. Henkel is already
generating 45 percent of its total sales in emerging markets and 55 percent of
its employees are based in these countries. One of Henkel’s financial targets
for the year 2016 is to increase the sales generated in emerging markets to 10
billion euros while aiming for total sales of 20 billion euros.

“The inauguration of the ‘Dragon Plant’ is an important milestone for us and
our customers,” said Jan-Dirk Auris, Executive Vice President Adhesive
Technologies at Henkel. “Having this larger production facility brings us
closer to our customers in the region, not just geographically but also by
reinforcing our commitment to partnering for innovation and mutual success.”

Henkel will be concentrating its existing adhesives production operations in
the greater Shanghai region at the new site in the Shanghai Chemical Industry
Park and thus significantly expanding its capacities for current and future
technologies. This move is part of the company’s ongoing program to
consolidate and optimize its global production network.

Rising demand for adhesives in the Asia-Pacific region

Henkel has invested more than 50 million euros in the plant and will employ
about 600 people there. With this factory, Henkel – the world’s largest
adhesives manufacturer – is responding to the rising demand for industrial
adhesive technologies in China and the entire Asia-Pacific region.

China has already advanced to become the largest car market in the world, with
a rapidly expanding domestic production base. The country is also one of the
major producers of sports equipment and electronic products. In these and many
other industries, adhesives are being used more and more as they make the
products lighter and enhance their performance while helping to make
production processes more sustainable.

Sustainability in production

The “Dragon Plant” is a model for sustainability and efficiency. Compared to a
traditional production plant, it uses only half the amount of water thanks to
condensed water recovery systems, while recycling has reduced the volume of
packaging materials by 60 percent, and electricity usage for factory lighting
has been cut by 90 percent due to special translucent roofs which let the
daylight in. There is also a system for recovering waste heat, and the factory
includes innovative filling equipment designed to prevent leaks and spills of

As a supplier to many different industries, Henkel already opened its first
production facility in China back in 1990, just two years after entering the
market. From that first factory Henkel served industrial customers who had
begun at this early stage to establish their own manufacturing operations in
China. Ever since then, Henkel has continued to produce adhesives in this East
Asian country with constantly rising sales.

About Henkel

Henkel operates worldwide with leading brands and technologies in three
business areas: Laundry & Home Care, Beauty Care and Adhesive Technologies.
Founded in 1876, Henkel holds globally leading market positions both in the
consumer and industrial businesses with well-known brands such as Persil,
Schwarzkopf and LOCTITE®. Henkel employs about 47,000 people and reported
sales of 16,510 million euros and adjusted operating profit of 2,335 million
euros in fiscal 2012. Henkel’s preferred shares are listed in the German stock
index DAX.

Photo material is available at www.henkel.com/press

More information is available at www.henkel.com/press/dossier-dragon-plant.htm

Henkel Asia-Pacific Adhesive Technologies Marketing Communication

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Vickie Xin, +86-21-2891-5931
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