AMSTERDAM, The Netherlands - AkzoNobel is significantly boosting its presence in the Chinese automotive market after agreeing to acquire Changzhou Prime Automotive Paint Co. Ltd. Financial details were not disclosed.
Prime is one of China's largest vehicle refinish suppliers and a leader in the fast-growing mid-market segment. This sector is estimated to double in size within the next five years. Based in Jiangsu Province, the company develops, manufactures, markets and distributes automotive coatings, primarily for the refinish market.
The agreement follows AkzoNobel CEO Hans Wijers' recent announcement at the World Expo 2010 in Shanghai that the company plans to double its revenue in China to $3 billion within five years.
Through its Car Refinishes business, AkzoNobel is mainly active in China's premium and commercial vehicle refinish sector, represented by its Sikkens, Lesonal and Miluz brands. The Prime agreement now opens up an opportunity to become the clear market leader in the attractive vehicle refinish mid-market segment.
AkzoNobel Moves into Chinese Automotive Market
September 8, 2010