AkzoNobel shifts focus to Southeast Asia opportunities

10-Aug-2015 - Last updated on 10-Aug-2015 at 14:42 GMT

Related tags Southeast asia Investment

As growth slows in China, AkzoNobel is reportedly seeking out markets that are experiencing robust economic growth like Thailand, India, Vietnam and Indonesia.

In regards to the cosmetics industry, the chemical supplier provides coatings for plastic and glass bottles.

As South East Asia increasingly promises lucrative opportunities for the cosmetics industry, international players like AkzoNobel are really starting to invest their efforts in those markets.

In fact, AkzoNobel has announced it will be investing more than €30 million in a Thailand based facility.

"Thailand is a key market for our growth strategy and this investment will enable us to further strengthen our position as a leading supplier, both within Thailand and as a hub to support the supply network through the region," says Conrad Keijzer, a member of the company's executive committee for performance coatings.

The project, supported by the Thailand Board of Investment, is a 120,000m² site in Chonburi which will focus on performance coatings for various industries.

Production is due to start in the third quarter of 2016, and is earmarked for an initial capacity of 45,000 tons per year.

According to the company, investing in this new facility means it is supporting its continued growth in Thailand, as well as making progress on its regional business expansion strategy.

"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, adds Keijzer.

"A number of existing operations will be consolidated into the new site, allowing us to achieve world class operational standards."

Thailand's beauty sector is becoming a force to be reckoned with

Thailand's beauty industry is growing, fuelled by increasingly sophisticated consumers, including the men's market which is proving to be particularly lucrative.

With 70 million potential consumers, the luxury goods segment continues to boom with a 24% increase in year-on-year sales. The top product categories include perfumes and cosmetics.

There are many opportunities for both international as well as domestic companies in this vibrant market, which values new and innovative products.