AkzoNobel hopes its planned EUR30 million investment in a manufacturing facility in Thailand will help strengthen its position as a supplier within the country.
The Amsterdam-based multinational says the investment will support regional growth of its performance coatings business, as it looks to capitalize on an upturn in business in Asia since the turn of the decade.
The Thailand Board of Investment-supported project comprises constructing a 120,000m2 site within the Hemaraj Eastern Seaboard Industrial Estate in Chonbu.
AkzoNobel estimates that the facility will initially yield 45,000 tons per year, with production expected to start in the third quarter of 2016.
The new plant will provide for a number of performance coatings businesses, including metal coatings, protective coatings, specialty coatings and marine coatings, as well certain products from the company's decorative paints business.
"By investing in this new facility we are supporting our continued growth within Thailand, as well as making progress with our regional business expansion strategy," explained AB Ghosh, managing director of AkzoNobel's metal coatings business.
He added that the new site will allow the company to consolidate several existing operations, leading to "world-class" operational standards.
Meanwhile, Conrad Keijzer, the company's executive committee member responsible for performance coatings, explained why it is making the bold move in Thailand.
He said: "Our business in Asia has experienced strong growth during the last several years.
"As demand and volumes continue to rise, the new site will enable us to better serve our customers whenever and wherever they need our products."