AkzoNobel expands performance coatings business in Vietnam
Dutch paint and coatings group AkzoNobel has announced plans to boost its performance coatings business in Vietnam.
Under the plan, the company will open a new branch in Ho Chi Minh city, as well as doubling the size of the existing powder coatings plant in Dong Nai.
The new branch will be ready by November this year, which will see a 20% increase in the workforce.
Apart from catering to the local market, the new plant will supply its product to customers across Southeast Asia, India, Australia, and New Zealand.
AkzoNobel Southern Asia Powder Coatings's business manager Alan Alex said: "Vietnam has proven to be a strategic market for AkzoNobel in Southeast Asia and we are strongly committed to expanding our position.
"With focused investment, we aim to sustain our high double-digit growth in the domestic market in Vietnam, as well as Southern Asia overall."
AkzoNobel's Executive Committee member Conrad Keijzer said: "Vietnam is strongly emerging as a manufacturing base in Asia, which continues to be an attractive growth market.
These investments ensure that we are well positioned to meet customer demand going forward."
AkzoNobel already has four manufacturing plants in Vietnam. It employs around 800 people at its facilities to produce both decorative paints and performance coatings.
The company has 11 business units in spanning across more than 80 countries. It has a workforce of about 47,000 people, and recorded €14.3b in sales in 2014.
In 2008, AkzoNobel acquired the UK's Imperial Chemical Industries (ICI) for $13b. But in 2012 sold its North American decorative paints unit to PPG industries for $1.1bn.
Image: AkzoNobel has four manufacturing facilities in Vietnam, which produce decorative paints and performance coatings. Photo courtesy of AkzoNobel.