Amsterdam, the Netherlands - Dutch coatings and speciality chemicals group AkzoNobel is set to break ground on a new coatings manufacturing plant in Hoskote near Bangalore in India. Setting up this new plant furthers the company's ambition to become one of the country's leading industrial players, said a 14 Nov statement from AkzoNobel.
The Indian Industrial Finishes facility will produce coil and speciality plastic coatings. Akzo Nobel said it is the latest strategic step in a measured approach to expanding in a region with clear growth potential.
"We are convinced that India will develop into one of the world's economic powerhouses and it ranks very highly on our list of priority countries for growth and investment," commented AkzoNobel ceo Hans Wijers. Pointing out that while the group is already well represented in India, "as a leading global producer of coatings and specialty chemicals we are committed to making a significant contribution to India's continued development."
Wijers added that the company has targeted a substantial increase of its turnover in India, which currently totals around €200 million.
The new plant is being built on an existing AkzoNobel site, used to make marine and protective coatings and powder coatings, as well as coil coatings. The addition will expand capacity for coil coatings produced primarily for the high-performance steel and aluminium construction markets in India and neighbouring countries.
According to the Dutch group, the factors driving such expansion include increasing Indian demand for lifestyle goods such as mobile phones. It also adds to AkzoNobel's ability to better serve global customers located in the region.
Pointing out that such an expansion which was "not feasible within our current production unit," Binoy Chakraborty, general manager of AkzoNobel's Industrial Finishes business in India, said construction on the first phase of the project is expected to be completed in early 2010.
AkzoNobel currently employs around 1500 people in India in six production facilities, two research laboratories and various sales locations, representing all its activities from in coatings and speciality chemicals.