2013 Exhibitions
AkzoNobel is set to investing a further EUR65 million in China to boost capacity and for operations improvement at the company’s Surface Chemistry manufacturing sites in Boxing and Ningbo.
More than half the investment will be put into the company's Shandong facility , which was taken over as part of the acquisition of Boxing Oleochemicals in January 2012.
A multipurpose reactor will also be built to expand local production capacity for amines.
In Ningbo, a new alkoxylation unit will be built, bringing the total investment at the multi-site close to the EUR400 million.
"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."
Adding to that, Bob Margevich, Managing Director of AkzoNobel's Surface Chemistry business, said, "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 divest its merchant fatty acid business in Boxing, and two of three fatty acid plants at the site, affecting about 200 employees.
(PRA)
