AkzoNobel paints new coating plant
Dutch paint manufacturer AkzoNobel is upbeat about its business prospects after opening a new €31-million (1.18 billion baht) facility in Chon Buri’s Hemaraj Eastern Seaboard Industrial Estate.
Bill Collins, corporate director of the company’s performance coatings business, said Thailand boasts a strategic geographic position in Southeast Asia for AkzoNobel’s supply chain.
The new plant, which has an annual capacity of 40,000 tonnes, will serve Indonesia, the Philippines, Malaysia and Vietnam.
Thailand’s domestic coating market is also larger than other Asean countries, he said, with growing domestic demand.
“This new facility highlights our continued focus on adapting to market needs in order to better serve our customers with essential colour and protection. It will also play a key role in driving organic growth for the performance coatings business,” said Mr Collins.
“The large size of the new site and the established infrastructure enables laterphase expansions. The Chon Buri site will then provide opportunities for possible future expansion and growth in the region.”
AkzoNobel entered Thailand in 1963 and runs four manufacturing sites locally, one in Bangkok for decorative paints and packaging coatings and three for performance coatings in Nakhon Pathom, Rayong, and the new site in Chon Buri.
The company’s decorative paint segment operates under the Dulux brand.
Mr Collins said AkzoNobel will close the plants in Nakhon Pathom and Rayong by year-end, which have an annual capacity of 5,000 and 1,000 tonnes respectively, and move all infrastructure and employees to the new plant in Chon Buri, which will be able to expand into powder coating production.
From 2018 on, AkzoNobel will have two manufacturing sites in Thailand with six commercial locations.
It employs over 400 people in Thailand. AkzoNobel posted global revenue in 2016 at €14.2 million, down by 4%.
Mr Collins said only Asia-Pacific will offer the key growth market for AkzoNobel with more new operation facilities in the near future, potentially in China and India.