Henkel opens world’s largest adhesives factory in China

Henkel has inaugurated the world’s largest adhesives factory in Shanghai. With this production facility, the company is expanding its 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 factory, which is also known as the ‘Dragon Plant’ at Henkel, comprises 150,000m² 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 428,000t of adhesives.

"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. The inaugural ceremony was attended by numerous Chinese politicians and business people and also by Dr Simone Bagel-Trah, Chairwoman of the Supervisory Board and of the Shareholders’ Committee. Henkel is already generating 45% of its total sales in emerging markets and 55% 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 E10bn, while aiming for total sales of E20bn.

"The inauguration of the ‘Dragon Plant’ is an important milestone for us and our customers,” said Jan-Dirk Auris, Executive Vice President Adhesive Technologies at Henkel. "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.”

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 programme to consolidate and optimise its global production network.