Nouryon will build a new facility for its Bermocoll business in Southeast Asia to meet the global demand in paints and coatings end-market.
The global specialty chemicals manufacturer Nouryon is planning to expand its production capacity in Southeast Asia with a new facility in order to meet the increasing global demand for innovative and sustainable additives. The new plant is expected to have a capacity of around 15 to 20 kilotons and will improve the company’s Bermocoll® business line, that provides ethyl hydroxyethyl cellulose (EHEC) and other essential ingredients to both regional and multinational customers.
“Demand for Bermocoll continues to increase as consumption of water-based and odorless paints rises and the Paints and Coatings end-market keeps growing. Nouryon recently invested in our two existing EHEC facilities to debottleneck production and increase capacity to meet existing demand until this new capacity comes online. Building a new plant, which will be our most advanced EHEC facility, is the next step for Nouryon to continue supporting market growth and providing our customers with long-term supply security while increasing customer intimacy,” stated Larry Ryan, Executive Vice President and President of Performance Formulations and the Americas at Nouryon.
Nouryon expects the final site selection to be completed by the end of 2021, while the construction phase is planned to start in late 2022. The beginning of the operations in the new production facility will then be in mid-2024. The facility will expand Nouryon’s global capacity to produce EHEC, complementing the company’s existing plants in Ornskoldsvik (Sweden) and Ningbo (China).
“Nouryon is considering several locations in Southeast Asia for the new facility because the region is a key growth market of the global chemical industry and presents great business opportunities for our organization. This facility will reflect our strategy of growing with our customers by providing innovative and sustainable technologies, while leveraging high-growth end-markets,” added Sobers Sethi, Senior Vice President of Emerging Markets and China at Nouryon.