The first phase of Nippon New Materials' production base project in the West Coast Economic Zone of the Taiwan Strait has entered the final commissioning stage and is scheduled to be officially put into production on June 1. After the project is completed and put into operation, the annual output value is expected to reach 2 billion yuan.



The project is being installed and debugged

Two consecutive projects put into production

The foundation stone was laid for the production base project of Nippon New Materials on the west coast of the Taiwan Strait in October 2020. The project covers an area of 248 mu and will be constructed in two phases. The first phase of the project covers an area of 79.72 mu, with a construction area of 58,000 square meters; the second phase covers an area of 161.908 mu.



It is reported that the two-phase investment plan is 1 billion yuan, of which the first-phase investment is expected to be 350 million yuan, and the annual sales after full production is expected to be 700 million yuan. The first-phase project will start construction in September 2021; The annual sales volume can reach 1.3 billion yuan. The second-phase construction period is one year, including the construction period of 15 months. It is expected that the annual tax contribution will reach 80 million yuan per year after the project is completed and put into operation. After the project is completed, the annual output will reach 100,000 tons of water-based latex paint, 400,000 tons of real stone paint, and 1 million tons of new sand glue.



Nippon Quanzhou project renderings

According to Xing Ronghua, vice chairman of Nippon Paint Investment Co., Ltd. and senior vice president of Nippon Paint China Supply Chain Planning and Development Headquarters, Quanzhou is Nippon Paint's largest market on the west coast of the Taiwan Strait. , the group finally decided that the "Nippon New Materials Production Base on the West Coast of the Taiwan Strait" project will be settled in the state-level Quanzhou Economic and Technological Development Zone. Choosing Quanzhou will surely open a new chapter for Nippon Paint Group's investment in the west coast of the China Strait.

On May 4, the first-phase project of Nippon New Materials (Zhejiang) Co., Ltd. was officially put into production in Jiande City, Hangzhou City, Zhejiang Province. The trial production of the project on schedule has played a very important role in Nippon Paint's improvement of the supply chain in East China. Especially during the epidemic this year, production in Shanghai has been greatly restricted. problems, realized the construction of Nippon Paint's complete supply chain system in East China, and laid a solid foundation for stable customer supply and product delivery.



With the commissioning of smart factories one by one, Nippon Paint has brought Industry 4.0 standards to factories and production processes everywhere. A cross-regional, high-standard and high-efficiency linkage production layout has gradually taken shape, which not only laid a solid foundation for Nippon Paint's excellent market performance and product competitiveness in the following years, but also won the company's future development opportunities.

Accelerate the transformation to a "full-service coating service provider"

In today's urgent situation of rising labor, rising logistics costs and rising raw material prices, cost control has also become the key to competition for major paint companies to resist risks. The advance layout of smart factories makes Nippon Paint more calm in the face of these pressures.

While continuing to expand its business territory, Nippon Paint has gradually improved its coating system and product system, and proposed the goal of transforming itself from a "coating manufacturer" into a "full-service coating service provider". This means that Nippon Paint needs to meet diversified future demands with a richer product line. Therefore, we can see that in the new round of factory layout, Nippon Paint has a very wide range of production, covering latex paint, new environmentally friendly dry powder mortar, textured exterior wall paint, putty, waterproof paint, wood paint, UV paint, new imitation Stone paint, thermal insulation and decoration integrated board, etc.



Through lean production, we can reduce costs and improve efficiency, so as to meet the personalized and diversified needs of customers to the greatest extent. With multiple production bases as the core, Nippon Paint makes full use of the advantages of location conditions and industrial policy support, optimizes product structure, expands the market service radius, and creates a supply chain with rapid response and service to meet market development needs.

Under the new situation, paint enterprises have accelerated their development one after another. In a fully competitive market, various advantages such as talents and resources have accelerated to concentrate on large enterprises. The leading enterprises represented by Nippon Paint have driven the overall technological progress of the industry and the improvement of product research and development capabilities through their continuously enhanced comprehensive strength, and often lead to innovations in the industry's business model.

Judging from the data of the past two years, Nippon Paint's investment in China is still increasing rapidly. Over time, this development model will bring considerable changes to Nippon Paint to reduce financial costs and increase profits. With the continuous production and release of production capacity of smart factories in various places, more and more excellent Nippon products will be produced from these factories in the future and enter the family life of millions of consumers.