AkzoNobel inaugurates coating facility in Pakistan to meet growing regional demand

06 Mar 2024 --- Dutch coatings company AkzoNobel has opened a new €26 million (US$28.2 million) manufacturing plant at its forest in Faisalabad, Pakistan, the company’s largest investment in the country to date. 

The 25 acre site, which has facilities for specialty coatings, oil coatings and protective coatings, decorative paint, wood finishes and automotive, will help to meet increasing customer demand across various markets. 

Mubbasher Omar, AkzoNobel Pakistan’s CEO, tells Packaging Insights that for packaging coatings, “we leverage the strength of our global manufacturing sites and supply packaging coating solutions to our valued packaging coatings customers in Pakistan.” 

“We are the sole suppliers to Pakistan Aluminium Beverage Cans — the country’s first and only manufacturer and exporter of aluminum beverage cans.”

The location incorporates a forest area of 5,450 square feet. Over 1,400 native trees and shrubs are expected to grow into a self-sustaining ecosystem over the next two years.

Accommodating product expansion 
The manufacturing site employs approximately 200 people and has been constructed to comply with the company’s environmental standards and includes sustainability features such as renewable energy generation and energy efficient design. 

The AkzoNobel CEO says the coating industry is expected to rebound in the coming years.“We’ve also integrated agile manufacturing to accommodate future expansion in production volumes, thereby allowing AkzoNobel to be more competitive in the market,” says Omar. 

The growth of the coatings industry in Pakistan has been inconsistent since the COVID-19 pandemic, he explains. \

“In contrast, AkzoNobel Pakistan has been growing much faster than the industry with leadership positions in two-wheeler, three-wheeler and tractor segments.” 

“With the industry rebound expected in the coming years, AkzoNobel aims to further build on its sustained growth momentum across protective and automotive coatings. With the new facility being located on the China Pakistan Economic Corridor route and export focus of the automobile industry, the future looks promising.” 

Furthermore, increasing regulatory requirements for environmental protection and enhanced safety standards are expected to drive the demand for AkzoNobel’s high-performance and more sustainable coatings in Pakistan, says Omar.

AkzoNobel investments this year
The inauguration ceremony was attended by several guests, including Henny de Vries, ambassador of the Netherlands in Pakistan.

Last month, AkzoNobel announced it is expanding its Powder Coatings site in Como, Italy, facilitating customer supply across Europe, the Middle East and Africa (EMEA).

In January, the coatings company invested €32 million (US$35 million) in a new plant at its Vilafranca site in Spain, producing bisphenol-free coatings for the EMEA’s metal packaging industry.

By Natalie Schwertheim