Akzo Nobel Announces Powder Coatings Expansion in China

Akzo Nobel Announces Powder Coatings Expansion in China Beijing Manufacturing Plant for Pipe Powder Coatings - A "First" for the Region Arnhem, the Netherlands, September 25, 2001 - Akzo Nobel is investing in a new powder coatings plant in China to serve the growing market for steel pipe protection. The facility will be installed at its joint venture operation Akzo Nobel Chang Cheng Coatings (Beijing) Co. Ltd. and will manufacture Akzo Nobel's Resicoat® range of specialty fusion bonded epoxy (FBE) powders for anti-corrosion protection of steel pipes for the oil and gas industry. "This is the first investment in FBE manufacture in the region, anticipating the growing demand for pipeline protection as China invests heavily in its infra-structure", said Rudy van der Meer, Member of the Akzo Nobel Board of Management responsible for Coatings. "The move reflects our strategy to focus on expanding in growth areas, and will put us into an excellent position to serve the Chinese market." Bill McPherson, General Manager of Akzo Nobel's Powder Coatings business unit, said: "We have been present in the powder coatings market in China for over 10 years serving almost all the market segments. This next step will position us in all segments. It remains our global strategy to have a significant presence in every region and in every market segment, so that we may best serve our powder customers - whether they are local, regional or global. This is an important step in that process." Ron Koel, Global Market Manager for Functional Powder Coatings added: "We estimate the global market for pipeline powders to be USD 120 million - and China represents an increasing share, currently about 20%. Our Resicoat technology has proven itself worldwide in many projects. By bringing part of our production to the fastest growing market in this segment, we make sure of servicing our customers in both the most flexible and most efficient way." One of the largest forthcoming projects in China will be the West-East pipeline. In addition, the Chinese government is already planning several other big projects including the Russia-China-Korea, the Zhong- Wu and the Hainan circle pipelines. A specialist team from the Resicoat technical and marketing center in Reutlingen, Germany, will assist in setting up the operations. Production is planned to start in the last quarter of this year. The move follows the completion of a restructuring in Asia whereby the various joint venture companies of Akzo Nobel in Taiwan and China have been consolidated into a single JV with Chang Cheng Chemicals. It was announced on June 28 that plans had been approved for a new powder coatings manufacturing facility in Vietnam, due to open early 2002. - - - Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2000 totaled EUR 14 billion (USD 13 billion, GBP 8.5 billion). The Company currently employs 67,500 people in more than 75 countries. Financial results for the third quarter of 2001 will be published on October 24, 2001. Akzo Nobel is the largest global manufacturer of powder coatings and is world leader in powder technology, with worldwide patents held in key areas of powder product and process technology. One example is the unique "Interpon Extra" programme, which uses patented Particle Management Technology to cut applied-costs and deliver significant quality benefits to powder users across a wide range of end uses worldwide. Its Resicoat brand of specialist Fusion Bonded Epoxy (FBE) powders have a 25 year global track record of providing anti-corrosion protection to steel pipes for the oil, gas, chemical and petro-chemical industries, valves & fittings for the water industries and to reinforcing bar ("rebar") used in concrete construction. Furthermore Resicoat has an entire range of powders providing solutions for the electrical insulation of motors (low and high voltage area), electrical components and bus-bar. Akzo Nobel is market leader in powder coatings in the Asia Pacific region with factories sited in India (Bangalore), Malaysia (Johor), Indonesia (Jakarta), Taiwan (Taipei), China (Shenzhen, Beijing and Suzhou), Korea (Seoul) and Australia (Melbourne). A new facility is under construction in Vietnam (Ho Chi Minh City) which will open early in 2002. Internet: http://www.akzonobel.com http://www.interpon.com http://www.resicoat.com For more information please contact: Mr. Dick Higgins, Akzo Nobel Powder Coatings Ltd, Worldwide Powder Group, tel. +44 191 401 2480 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/09/25/20010925BIT00090/bit0001.doc http://www.waymaker.net/bitonline/2001/09/25/20010925BIT00090/bit0001.pdf