Dutch AkzoNobel to invest a further €65m in China

19 March 2013 08:51  [Source: ICIS news]

SINGAPORE (ICIS)--Dutch producer AkzoNobel will invest a further €65m ($84m) to boost capacity and significantly improve operational excellence at AkzoNobel’s surface chemistry manufacturing sites in Boxing of Shandong and Ningbo of Zhejiang in China, the company said on Tuesday.

More than half the money is being invested in the Boxing facility, which AkzoNobel acquired when it took over Boxing Oleochemicals in January 2012, the company said in a statement.

As well as building a multipurpose reactor to expand local production capacity for amines, significant funds are also being made available to align the health and safety practices at the site with the rest of AkzoNobel’s policies.

A new alkoxylation unit will be built in Ningbo, Zhejiang province, bringing the total investment at the multi-site close to €400m, according to the statement.

Construction details were not disclosed.

“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,” he added.

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, which will affect 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.

($1 = €0.77)

By: Dolly Wu
+65 6780 4359

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