Henkel opens world's largest adhesives factory in China

Henkel has inaugurated the world’s largest adhesives factory in Shanghai. With this new production facility, in which the company has invested more than Euro 50 million, Henkel is expanding its production capacity in a major emerging market and will deliver its innovative adhesive technologies more quickly to the growing number of customers based in China and the Asian region.
 
The new factory, which is also known as the Dragon Plant at Henkel, comprises 1,50,000 sq m of space and is now the central production site for industrial adhesives in China and the Asia-Pacific region. Customers being served by the new adhesives plant include enterprises in the automotive industry and various consumer goods sectors. Annual output is forecast to reach up to 4,28,000 metric tonnes of adhesives.
 
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“This new adhesives factory will contribute significantly to the achievement of our strategy 2016: It will enable our Adhesives business to expand and leverage its global reach, and win market share in emerging markets,” said Kasper Rorsted, Chairman of the Management Board of the Henkel Group.
 
Henkel is already generating 45 percent of its total sales in emerging markets and 55 percent of its employees are based in these countries. One of Henkel’s financial targets for the year 2016 is to increase the sales generated in emerging markets to 10 billion euros while aiming for total sales of 20 billion euros.
 
“The inauguration of the Dragon Plant is an important milestone for us and our customers. Having this larger production facility brings us closer to our customers in the region, not just geographically but also by reinforcing our commitment to partnering for innovation and mutual success,” said Jan-Dirk Auris, Executive Vice President Adhesive Technologies, Henkel.
 
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Henkel will be concentrating its existing adhesives production operations in the greater Shanghai region at the new site in the Shanghai Chemical Industry Park and thus significantly expanding its capacities for current and future technologies. This move is part of the company’s ongoing program to consolidate and optimize its global production network.