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AkzoNobel to Increase Production Capacity in China

Increased demand spurs AkzoNobel to build an additional plant at its Ningbo multi-site for its Functional Chemicals business.

Akzo Nobel's new $22.3 million project – part of a total investment of $360 million–will further expand its rapidly growing organic peroxides activities. Production of chelates has already started at the location, while new ethylene amines and ethylene oxide factories are also due to come on stream later this year. The new unit is expected to be operational in late 2011.

“This latest addition to our Ningbo site will enable us to better serve our growing customer base in the region,” said Rob Frohn, the AkzoNobel Board member responsible for Specialty Chemicals. “China in particular is fundamental to AkzoNobel’s strategy in high growth markets, and Ningbo has a key role to play in our plans for Specialty Chemicals.”

The new organic peroxides plant will produce Perkadox 14—used for different types of rubber and thermoplastics—and Trigonox 101, used for rheology control of polypropylene and synthetic rubbers. The chemicals are used in various industries, including automotive, building and construction, as well as for durable goods.
The formal inauguration of the Ningbo site, which occupies a 50-hectare plot and offers ideal opportunities for any future investments, will take place in November this year. “We appreciate the continued support of the Ningbo government and the local authorities, which has been vital in helping us to realize our expansion plans,” Frohn said.

AkzoNobel has more than 6,000 employees and 25 locations in China, with 2009 revenue in the country totaling more than $1.3 billion.
 

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