Dutch chemicals group Akzo Nobel NV said it has signed a memorandum of understanding with the Ningbo Chemical Industry Zone (NCIZ) for a new chemicals multi-site in China.

Akzo said in a statement it plans to install the facilities on a 50-hectare plot, making it one of the company's biggest sites.

It plans to build plants to manufacture ethylene amines and chelating agents and also to produce organic peroxides on the site, the firm said.

Official approval has also been given for a petrochemical cracker to be installed within the complex, which will give access to a range of basic raw materials.

"China is becoming increasingly important for us, driven mainly by growing demand in the country," said Leif Darner, the Akzo Nobel Board member responsible for Chemicals. He added that lower production costs are also an important factor.

Akzo Nobel currently operates eight chemicals production plants in China, while the coatings business has 13 facilities. The company has set a target for combined sales of more than $1 billion in China by 2010.

Source:佚名