3rd year on for Axalta Coating Systems $32 million investment in Brazil
Mumbai, February , 2014 â€“ Axalta Coating Systems, a leading global supplier of liquid and powder coatings, will begin the next leg of construction to significantly expand its waterborne production capacity at the companyâ€™s operations in Garulhous, Brazil. The 2014 construction represents the third year of a $32 million investment program. The additional facility will more than double capacity to over 4.5 million litres (1.2 million gallons) which will meet the demands of automotive equipment manufacturers (OEMs) in South America where increases in the car parc are forecast to continue. The additional production is expected to come on line in 2015.
The Guarulhos plant is Axaltaâ€™s largest manufacturing facility in Latin America. The plant supplies customers in Brazil, where Axalta is already the largest single automotive coatings supplier to OEMs, as well as Argentina, Venezuela and Colombia. The new facility will produce waterborne coatings and complement the on-going manufacture of quality products for customers in Refinish and Industrial segments that will continue to be produced at the Garulhous location.
â€śThe region is one of the most rapidly growing markets for car production with Brazil in the vanguard,â€ť explained Charlie Shaver, Axalta Chairman and CEO.â€ť We are commited to keep pace with the increasing demand for automotive paint and serve the needs of our customers who increasingly want the option to convert to waterborne technology.â€ť
Axalta is a leading player in the development of waterborne technology for both OEM and refinish customers. The companyâ€™s waterborne production process utilizes a waterborne technology system to produce â€śLean and Green Automotive Coatingsâ€ť that OEMs can use to significantly reduce volatile organic compounds (VOCs), energy consumption and investment. The increased productivity results in a better bottom line for customers while still producing an unparalleled finish on vehicles. In addition, Axaltaâ€™s waterborne products are intrinsically environmentally responsible and meet global environmental requirements, such as the EUâ€™s VOC Regulation 2004/42/EC, to which Axalta adheres in Brazil and which can help reduce the overall environmental footprint of the auto industry.
â€śOur commitment to invest in Brazil reflects not only our commitment to our customers but also our confidence in the Brazilian economy,â€ť added Jorge Cossio, Vice President of Axalta in Latin America. â€śThe tremendous growth of Brazilâ€™s consumer market benefits everyone and we are excited to be able to contribute to the national success story.â€ť
The Brazil investment follows a ceremony earlier in January in Shanghai, China where Axalta broke ground to begin construction of a new waterborne manufacturing that will supply OEMs that are expanding production in the southern and western regions of the country.