Akzo Nobel plans major new China site

Akzo Nobel has signed a memorandum of understanding with the Ningbo Chemical Industry Zone to create a new chemicals site in China. The company plans to build several plants on a 120-acre plot, making it one of the biggest sites for Akzo Nobel's activities in the world. The project will involve plants for production of ethylene amines and chelating agents. Production of organic peroxides will be added later. The company says it will detail specific investment plans early next year. "China is becoming increasingly important for us, driven mainly by growing demand in the country. Lower production costs are also an important factor," says Leif Darner, Akzo Nobel board member responsible for chemicals. The company already operates two production sites in Ningbo, for polymer chemicals and powder coatings. "We investigated a number of possible locations, but building the new facility in Ningbo was always an attractive option," Darner adds.