AkzoNobel, producer of specialty chemicals, coatings and paints, has declared its intentions to invest over EUR60 million to augment the manufacturing capability of its Bermocoll cellulose derivatives such as building material and paint thickeners.
The move will provide extra impetus to the company’s growth plan to achieve a revenue growth of $3 billion in its Chinese operations by the year 2015.
The company is currently building a new production facility at its Ningbo site in China and has plans to streamline its present production facility in Ornskoldsvik, Sweden. Most of the investments have been allocated for the proposed Ningbo plant where the firm’s functional chemical business produces chelates, ethylene oxide and ethylene amines. At the Ningbo site, an organic peroxides production facility will also commence its operation in 2011 and the new Bermocoll unit will start its production in the early part of 2013.
The cellulose derivatives produced by the company are based on a natural polymer and are obtained from cotton linters or wood pulp. The derivatives are used in applications such as pharma and healthcare, building additives and water-based paints.