AkzoNobel is to build an additional plant at its Ningbo multi-site for its Functional Chemicals business. The new €17M project – part of a total investment of €275M – will further expand the company’s rapidly growing organic peroxides activities.

Production of chelates has already started at the location; new ethylene amines and ethylene oxide factories are due to come on-stream later this year. The unit is expected to be operational in late 2011.

The new organic peroxides plant will produce Perkadox 14 (used for different types of rubber and thermoplastics) and Trigonox 101 (used for rheology control of polypropylene and synthetic rubbers). These are used in industries such as automotive, building and construction, as well as for durable goods. Demand for both products is rapidly increasing, especially in Asia.

Rob Frohn, the AkzoNobel board member responsible for speciality chemicals, said: “We appreciate the continued support of the Ningbo government and the local authorities, which has been vital in helping us to realise our expansion plans.”

Formal inauguration of the Ningbo site – which occupies a 50ha plot – will take place in November this year.