AkzoNobel Putting Greater Emphasis on End-user Segment in Asia
October 2016 www.coatingsworld.com Coatings World | 59
CW: How is AkzoNobel meeting the unique challenges of the
Asia market?
Rowe: Sustainable practices and improvements will continue to
take precedence in the company’s growth strategy. Our strat-
egy’s sustainability focus areas include:
•Sustainable business: Creating business value through
products and solutions that provide both functionality
and other sustainability benefits, as well as cost savings
from operational efficiencies. Target: To have 20 percent
of AkzoNobel’s revenue to come from eco-premium solu-
tions, which are products that have an environmental ad-
vantage over competitor products, by 2020. We reached 19
percent in 2015.
• Resource efficiency: Accelerating material and energy efficiency across the value chain. Target: 25-30 percent reduction in cradle-to-grave carbon footprint per ton of sales
from 2012 to 2020.
• Capable, engaged people: Engaging our people and partnering with our suppliers and customers to deliver significant changes.
CW: Does AkzoNobel have plans for future investments in Asia
in 2017 and beyond?
Rowe: As economic growth rates in Asia remain above other
regions, AkzoNobel will concentrate on improving its research,
development, and innovation facilities to meet the markets’ demands sustainably.
This is done in tandem with the company’s global Human
Cities initiative to improving, energizing and regenerating urban
communities across Asia and the world. Around 50 percent of
the world’s population currently lives in cities, and this is ex-
pected to increase to nearly 70 percent by 2020. And one of the
biggest challenges of our age will be how to keep our cities “hu-
man.” As neighborhoods, villages and towns meld into megaci-
ties, we hope our Human Cities projects will help preserve our
sense of home, identity and happiness.
CW: Please discuss some of the Human Cities projects that have
been completed in Asia.
Rowe: AkzoNobel has played a vital role in preserving iconic
cultural sites in Southeast Asia. Historical icons in UNESCO
World Heritage sites such as the Bandstand and Burkill Hall
in Singapore Botanic Gardens, as well as the Stadthuys in
Malacca (Malaysia) are being refurbished by AkzoNobel
paints and coatings. The historic Kota Tua (old town) area
of Jakarta in Indonesia, will also be restored by AkzoNobel
in hopes of securing a UNESCO World Heritage status for
the site.
Other similar projects announced this year includes coating
a bridge that connects two villages in the District of Panimbang,
Banten Province, Indonesia.
Given that 60 percent of our products are in the Buildings
and Infrastructure, and Transportation end-user segments, we
believe that we have an important role to play in Asia’s urban
transformation. We want to go beyond the purely functional
aspects and help cities and their citizens to connect on an emotional level. CW
Recent Activity in China
AkzoNobel opens new Decorative Paints site in Western China
• AkzoNobel has started production at its fourth – and largest – plant for decorative paints in China. Located in Chengdu, the new
facility represents an important milestone in the company’s growth plans for the west of the country. The new plant is part of an
investment in excess of € 50 million to build manufacturing facilities for both Powder Coatings and Decorative Paints.
• All products produced will be waterborne and solvent-free, and the facility’s manufacturing environment will generate lower carbon emissions and be more sustainable.
• AkzoNobel’s Decorative Paints sales have grown significantly in Western China. In 2015, the sales volume in the region constituted
around one quarter of its overall market revenue in China. Contributing to the sales growth is the increasing demand for its repainting services, as well as its eco-friendly products and product solutions to the region’s real estate development.
• AkzoNobel now has four decorative paints production plants in China. Its other sites in Guangzhou, Shanghai and Langfang cover
the southern, eastern and northern regions of the country, respectively. AkzoNobel employs around 7,500 people in China and
generated €1.8 billion in locally driven revenues in 2015.
AkzoNobel opens its largest technology center in China
• AkzoNobel recently inaugurated its new € 6. 5 million technology center in Songjiang, Shanghai. The company’s largest research facility in China, it will support product innovation and the development of next-generation paints, coatings and specialty chemicals.
• The majority of the products supported by the new facility will be waterborne and powder-based, in line with the company’s ambitions to develop more eco-premium solutions.
• AkzoNobel employs over 7,500 people in China (including 500 in RD&I), while revenue in China totaled €1.8 billion in 2015. The
company operates more than 30 production sites across the country, with RD&I resources allocated to 26 of them to support
local customers.
