Dow Coating Materials (DCM) plans to invest $25 million by the end of next year to expand its manufacturing capacity in China, DCM Asia-Pacific General Manager Bruce Hoechner said.
The projects receiving investments will include new plants in Zhangjiagang in Jiangsu province and Chengdu in Sichuan province, and the expansion of DCM's facilities in Foshan in Guangdong province, Hoechner said.
DCM's sales growths exceeded the 20 percent market growth last year and 23 percent market growth in the first eight months of this year in China.
Hoechner said the company expects the China market to expand by 15 percent to 18 percent annually in the next few years.
As the demand in the more developed coastal regions of China remains strong, opportunities have increased rapidly in second-tier and third-tier cities, he said.
The demand for environmentally friendly products such as low-odor, low-volatile organic compounds (VOC) and formaldehyde abating products has increased in China, he said. Sales of the water-borne wood coatings of DCM, for example, doubled year-on-year during the first eight months of this year.
DCM, which develops products for architectural and industrial sectors, has gained 20 percent of the China market for coating materials for architectural purposes.
DCM is hiring 50 people this year to add to its 350-member staff in China, which includes 70 engaged in research and development.
More than one quarter of the sales in China came from the products developed in China in the past three years, Hoechner said.