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AkzoNobel, PPG Extend China Ties

Friday, June 10, 2011

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The world’s two largest coatings companies are again expanding their presence in China—AkzoNobel, with a new titanium dioxide plant; and PPG Industries, with a new headquarters.

AkzoNobel Partners on TiO2

AkzoNobel has announced a partnership with Guangxi CAVA Titanium Industry Co. Ltd. to produce and supply titanium dioxide, better securing AkzoNobel’s growing need for the popular white pigment in the Asian market.

The collaboration includes the construction of a new TiO2 plant in Qinzhou, China. Financial details were not disclosed.

The new TiO2 plant will be built in Qinzhou, a port city of 3.7 million people in southern Guanxi province.

“Rapid growth is expected within the global coatings and paints market, and most of this demand growth will occur in Asia, especially China,” AkzoNobel said in a release. “As a result, the regional demand for TiO2 will also rise.”

The partnership “will enhance security of supply in Asia for a critical raw material,” said Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for Supply Chain and Sourcing.

Plant to Open in 2014

Guangxi CAVA Group is a respected and well-known company in Guangxi province, active in the mineral and mining industries, real estate and property, as well as international trade and logistics.

Guangxi CAVA Titanium Industry Co. Ltd. was recently established to produce titanium dioxide. The company is currently building a 100,000-ton TiO2 plant at an industrial site in Qinzhou. Production is expected to start in early 2014.

“This is a strategic partnership which offers huge potential to further integrate and expand our business portfolio,” said CAVA Group chairman Ke Genxi, Chairman of CAVA Group. “I’m very pleased to partner with AkzoNobel, and I’m sure that our 20 years of experience in ore operations, along with our own resources in this venture, will contribute to a successful collaboration.”

Titanium dioxide is by far the most widely used white pigment in the industry because of its brightness and opacity. About five million tons of pigmentary TiO2 are consumed annually worldwide, mainly in the coatings, plastics and paper industries, according to AkzoNobel.

PPG Opens China HQ

PPG Industries has announced the creation of PPG Management (Shanghai) Co. Ltd. The new Shanghai-based company opened June 1 and will serve as business headquarters for PPG in China.

“China continues to experience rapid growth, and PPG’s new country headquarters in Shanghai will help facilitate our business growth through the consolidation of China business and functional leaders together in the new location,” said Viktor Sekmakas, president of PPG Asia/Pacific.

 Viktor Sekmakas

 PPG

PPG’s sales in Asia/Pacific exceeded $2 billion in 2010, said Viktor Sekmakas, president of PPG Asia/Pacific, shown here speaking at a Beijing conference in 2009.

“The Asia/Pacific region is critical for PPG’s global growth plans. In fact, sales in Asia/Pacific exceeded $2 billion in 2010 and continue to account for a greater share of PPG’s total sales.”

PPG was one of few global chemical companies that first invested in China in the 1980s, according to Sekmakas. Today, PPG operates 14 manufacturing plants and two research and development centers throughout China. The company produces and sells a wide range of products in China, including paints and coatings, glass, fiber glass, optical products, and aerospace materials.

   

Tagged categories: AkzoNobel; Coatings manufacturers; Pigments; PPG; TiO2; Titanium dioxide

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