“By entering into this partnership with CAVA, we will enhance security of supply in Asia for a critical raw material,” explained Werner Fuhrmann at AkzoNobel in a statement on Monday.
The accord, which involves building a titanium dioxide plant in Qinzhou, southern China, will secure increased supplies of the key raw material for its Asian markets, Akzo Nobel said in a statement.
"Rapid growth is expected within the global coatings and paints market and most of this demand growth will occur in Asia, especially China," it said.
Financial details were not given.
Quangxi CAVA Titanium Industry Co. Ltd. was recently established to produce titanium dioxide and is currently in the process of designing and constructing a 100,000 ton TiO2 plant at an industrial site in Qinzhou. Production is expected to start in early 2014.
“This is a strategic partnership which offers huge potential to further integrate and expand our business portfolio,” commented Mr Ke Genxi, Chairman of CAVA Group.
“I'm very pleased to partner with AkzoNobel and I'm sure that our 20 years of experience in ore operations, along with our own resources in this venture, will contribute to a successful collaboration.”
Akzo Nobel employs about 55,000 people around the world, with 6,700 in China.