Henkel builds new adhesives factory in China

24-Aug-2011 - China

Henkel held a ground breaking ceremony to commemorate the start of construction for its 150,000 square-meter adhesives factory in Shanghai Chemical Industry Park. The new facility will be the main adhesives manufacturing base in China and the Asia-Pacific region. Upon completion, the new Henkel factory will be the largest adhesives factory in the world with an estimated annual production of 428,000 tons.

The construction of the new adhesives factory is part of the company’s overall strategy to expand its capacities in the growth regions. Currently, Henkel realizes 42 percent of its total sales within the emerging markets, and 53 percent of its employees are now working in those markets. The new state-of-the-art adhesives facility, which is scheduled to begin production at the end of 2012, will enable Henkel to cope with the rapidly growing demand in China and the Asia-Pacific region for its industry leading adhesives. The new factory will require a total fixed asset investment of 50 million euros. Henkel also plans to hire 600 employees to operate the new facility.

“This investment is in line with our priority to expand our business in the emerging markets,” explained Kasper Rorsted, Henkel’s Chief Executive Officer, during the groundbreaking ceremony, “China has been an important growth engine for Henkel, and we are confident that the plant will greatly enhance Henkel’s growth potential in the country.”

The new adhesives factory is also a result of the company’s efforts to further optimize its overall manufacturing activities by concentrating on fewer high-performance factories that will generate more significant cost, productivity and efficiency advantages. As part of this initiative, Henkel’s current adhesives production facilities in China will be consolidated into the new factory, significantly expanding capacities for existing and new technologies.

https://www.chemeurope.com/en/news/134060/henkel-builds-new-adhesives-factory-in-china.html