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AkzoNobel to expand Indonesia coatings capacity

AkzoNobel Performance Coatings plans to invest €2.5 million to expand its plant in Cikarang, Indonesia, the company announced Monday.

The investment will add capacity to help meet growing demand for the company's International brand products, which are supplied by the Protective Coatings and Marine Coatings businesses. The project is expected to be completed by April 2015.

“The local market has been expanding over the last three years,” said Mauricio Bannwart, managing director of AkzoNobel's protective coatings business.

“Further growth is now anticipated as Indonesia seeks to improve its position in the petrochemical and power sectors, while an improvement in marine new build is also anticipated,” he added.

News of the expansion comes after AkzoNobel recently invested a total of €5 million to add capacity for both its Marine Coatings and Protective Coatings businesses in Singapore and Sunshine, Australia.

“Our business in Asia has experienced double-digit annual growth during the last five years,” said Conrad Keijzer, the company's executive committee member responsible for performance coatings.

“These expansions will ensure that we are well positioned to meet customer demand going forward,” he added. “By focusing our investment at key sites we are achieving economies of scale, allowing us to continuously improve our operational productivity.”

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