Industrial adhesives and sealants manufacturer and supplier Henkel will construct a 150,000 square-metre adhesives factory in Shanghai Chemical Industry Park to take advantage of growth in emerging markets.
The new facility will be the company’s main adhesives manufacturing base in China and the Asia-Pacific region.
Once completed, the new Henkel factory will reportedly be the largest adhesives factory in the world with an estimated annual production of 428,000 tonnes. The company plans to hire 600 employees to operate the new facility.
The new adhesives factory is part of the adhesives manufacturer’s business strategy to expand its capacities in emerging growth regions and consolidate current adhesives production facilities in China to fewer high-performing factories to generate more significant cost, productivity and efficiency advantages and expand its capacities for existing and new technologies.
Henkel records 42 percent of its total sales within the emerging markets, and 53 percent of its employees are now working in those markets.
The new adhesives facility, scheduled to begin production at the end of 2012, will provide the adhesive giant a platform to meet growing demand in China as well as in the Asia-Pacific region.
Henkel said the new factory will requires a total fixed asset investment of 50 million euros
“This investment is in line with our priority to expand our business in the emerging markets,” said
explained Henkel CEO Kasper Rorsted at a ceremony to commemorate the start of construction of the facility.
“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.”