ARNHEM, the Netherlands - Akzo Nobel has signed a memorandum of understanding with the Ningbo Chemical Industry Zone (NCIZ) that paves the way for the creation of a new chemicals multi-site in China. The company plans to install the facilities on a 50-hectare plot, making it one of the biggest sites for the company’s activities in the world.

The project, which provides the basis for a variety of future investments in grassroots chemicals production facilities, would involve building plants for the manufacture of ethylene amines and chelating agents. The company also intends to produce organic peroxides on the site. More details about these intended investments will be announced early next year. The company already operates two production sites in Ningbo (Polymer Chemicals and Powder Coatings).

Akzo Nobel currently operates eight Chemicals production plants in China, while the Coatings business has 13 facilities. The company has set a target for combined sales of more than U.S. $1 billion in China by 2010. For more information, visit www.akzonobel.com.