Akzo Nobel:bring the opportunities to China consumer economy

The face of a global slowdown in the Chinese markets and transition economies,the global coatings industry leader-Akzo Nobel also began to adjust strategy in China,and to seek new opportunities from which to discover.Responsible for the specialty chemicals business,management committee members,said recently that the rich CD-satisfied,"China's newly appointed leaders talked about China's economy and infrastructure from investment-driven economy to a consumption-based economy and this transition does not mean that infrastructure and investment becomes unimportant,but consumption is likely to become more important in the future,so our company will bring many opportunities." Fu Wei Na said.

Follow the Chinese strategy of promoting consumption

He said the demand for decorative paint market is growing in China,even though new home construction rate may be slowed,but still believe that new home construction will be expanded.And people's incomes increase,will further house decoration to make their housing environment more landscaping.Meanwhile,the powder coatings business will benefit from China's economic transformation,because powder coating a main application areas are durable consumer goods,mainly white goods,washing machines and the like.

Just a few days ago,Akzo Nobel has just announced that the company will invest over 50 million euros in Chengdu new powder coatings and decorative paints production facilities.Among them,the powder coating production facilities will be put into operation in 2014,while the decorative paint production facility will be put into operation in 2015.

According to him,the main users of decorative paint from the construction sector.Because Performance Coatings product range is very wide,so be sub-product point of view:Ship with paint,because the number of new vessels are now making less,its growth may slow or even negative growth;while consumer goods,including consumer durables are still increasing rapidly.Therefore,in general,and high-performance coatings decorative paint these two businesses are still increasing rapidly.

"Our specialty chemicals businesses recently acquired Boxing Oleochemicals Company which mainly produces surface chemicals,and consumer products very closely if it will use in personal care products,detergents and softeners and other products in our Boxing additional investment will ensure that to the Chinese market with the most advanced technology,the highest quality products.additionally,we have a diversified production in Ningbo base also has a recently produced a new plant opened cellulose,cellulose is mainly used for water paints and coatings,is also applied in the construction industry.diversified production base in Ningbo also produce boil mixture and peroxides,peroxide is the main component of the production of plastic,which are closely related and consumer-based economy." Fu Wei Na said.

He said the company will be the surface area of chemicals to make further investments in China,while using modular investment philosophy that,according to market demand,will gradually expand production.In addition,about automotive refinish also has a new investment,the same is in one place,there may also be investment in high-performance coatings,"So,in China,we are well positioned to strengthen manufacturing capacity plan."

Market visibility is poor but does not affect investment decisions

Commenting on the strategy for the Chinese market,the rich CD-satisfied that the Chinese market will be closely monitored,as the strategic adjustment on the basic or follow the customer," but in the future of China's economy up and down fluctuations may be larger,we will bear follow the pace of economic development in China,because China is the world's largest chemical market,has more than Europe and the United States to become the largest chemical market,so you can see,the future is in China."

For the current downturn in demand for chemical products,rich CD-satisfied that this may result in greater volatility market itself.In the short term,market transparency may decline,which means that the customer while stopped procurement of raw materials,while they expanded the procurement,the whole volatile,so some of the market's poor visibility.However,short-term investment decisions and economic fluctuations does not matter,the company is based on a long-term view of the market to do investments.

International procurement of raw materials still need some titanium dioxide

The paint industry,titanium dioxide is an important raw material.Currently,domestic enterprises have mastered certain titanium dioxide manufacturing process,but are still some of the most advanced technology overseas monopolies.

In this regard,the rich CD-satisfied admits that there is indeed still some raw materials to be imported,but the company's strategy is very clear,is to try the local procurement.Meanwhile,locally sourced,the company attaches great importance to sustainable development,and therefore the choice of suppliers is very strict.Currently in this regard,but also formed a number of strategic alliances in the procurement to ensure product quality,cost,and environmental protection.

"Sometimes you want to consider balancing the short-term price and the long-term sustainability of the value chain,in between there are challenges,but according to the concept of sustainable development manufacture,in the case of equilibrium conditions,we favor local suppliers." Fu Wei Na said.

He also confirmed that most of the titanium dioxide has been sourcing in China,but the Chinese titanium dioxide levels and some products do not meet the quality requirements,which chlorination process related.Titanium dioxide production process based on two routes:one based on sulfur,a chlorine-based." And we know that in this line of chlorine-based,enterprises in China are not fully realized.

By Betty