A large logistics hub, which is set to become AkzoNobel’s largest warehousing base in China, is on course to be completed in May 2023.
Located at the company’s decorative paints site in Songjiang, Shanghai, the new €10.3 million facility — a nerve center for production, storage, and transport — will use digital technologies and advanced security management to customize storage and operation modes for different product categories.
“Eastern China is a strategically important region for us, and the new facility will ensure that we’re well placed to meet the steady growth in demand which is expected over the next 10 years,” says Mark Kwok, president of China/North Asia and business director for the Decorative Paints China/North Asia division of AkzoNobel.
“Integrating our resources will help us to effectively tackle any supply chain challenges that may arise, as well as strengthening our competitiveness and further enhancing our ability to deliver for our customers,” said Jerry Zhang, AkzoNobel’s supply chain director for China/North Asia.
Equipped with a heat-insulating and light-permeable roof — along with nearly 5,000 solar panels that will generate 1.6 million kWh of electricity — the new facility will collect clean energy and use it for warehouse and office lighting and for charging forklifts.
Per AkzoNobel, the use of clean energy, optimization of logistics and the automation of warehouse operations will make an important contribution to the company’s ambition of cutting its carbon emissions by 50% and moving to 100% renewable electricity by 2030.
“The ongoing investments in Songjiang clearly highlight how our ‘People. Planet. Paint.’ approach is driving our commitment to better serve our customers, optimize resources, and pioneer more sustainable products,” Kwok said.
Earlier this year, AkzoNobel also announced that it was investing in a new production line for water-based texture paints in Songjiang. The new 2,500-square-meter plant will boost its capacity for producing Dulux products for various markets.