Eka Chemicals, the pulp and paper chemicals business of Akzo Nobel, a Global Fortune 500 company based in the Netherlands, launched a new production facility in Guangzhou.

Eka Chemicals (Guangzhou) Co Ltd was started with an initial investment of about US$5 million, Eka Chemicals said. It will be capable of yielding 24,000 tons of paper chemicals annually.

The new facility in Guangzhou is not only a key investment in one of Eka Chemicals' main growth platforms, but represents the latest move in Akzo Nobel's growth strategy for China, said Jan Svard, president of Eka Chemicals.

"Demand for paper and board in China is among the highest in the world and the pulp and paper industry has been growing rapidly in South China," he said. "The new company will help Eka Chemicals fortify its market leadership position."

Eka Chemicals has market share of 30 percent in China at present, he said. Svard said the Guangzhou facility brings Eka Chemicals closer to its customers in South China, where the market is booming. It's also a convenient platform for exporting to other countries and regions in the Asia-Pacific.

Svard said the Guangzhou facility will reach full load in 2010, at which point it will look to expand. He believes China will be the world's second-largest market for chemicals by the end of 2006, trailing only the United States. Market demand in China is expected to grow 8 to 9 percent annually in the coming decade.

The Guangzhou facility is Eka Chemicals' second pulp and paper chemicals facility in China. The first is located in Suzhou, East China's Jiangsu Province.

Source:佚名