The new plant will help meet rapidly growing local demand for Eka Chemicals' retention and dewatering system, Compozil. The system is already being used to improve the operational efficiency of some of the world's largest paper machines - many of which are located in southern China.
"Eka Chemicals is fully committed to China, which is one of our most important growth markets," says Johnny Boey, SBU Director, Pulp and Paper Chemicals Asia Pacific.
"This latest investment will help to meet growing demand and will contribute to AkzoNobel's ambition to double its revenue in China to $3 billion by 2015."
China is the fastest growing paper production country in the world and Eka Chemicals' Compozil colloidal silica nano-particle systems provide customers with a range of sustainability benefits, decreasing consumption of wood fiber and energy.
"Building this facility in China, our second colloidal silica plant in Asia, underlines our business ambition to stay close to our customers," adds Ross Howat, General Manager of Pulp and Paper Chemicals China.
The plant will incorporate the latest process control system and leading edge technology designed to meet future market demand for the next generation of colloidal silica products. The Guangzhou site is strategically located close to several future large paper mill projects in southern China.
The latest forecasts for paper and carton board indicate that the Chinese market is continuing to expand by almost 10 percent annually. Virtually all net growth over the next five years will be generated in the growth markets and China leads the way, accounting for 45 million tons of projected growth up until 2015.