The announcement follows the recent start-up of commercial production of Bermocoll cellulose derivatives at the company's multi-site in Ningbo, which will serve customers throughout the region and AkzoNobel's own decorative paints business. Cellulose derivatives are used in water-based paints and building additives applications.

Chengdu is one of the fastest-growing cities in southwestern China and has consistently delivered double-digit growth over the last two decades. It has established itself as an important industrial hub, resulting in high demand for quality powder coatings and decorative paint, which is expected to remain strong as the area continues to develop.