Axalta Coating Systems plans to expand waterborne production capacity at its plant in Guarulhos (Brazil), says a company press release. The company will soon begin the next phase of construction, which represents the third year of a USD32-million investment program. “The region is one of the most rapidly growing markets for car production with Brazil in the vanguard…We are committed to keeping pace with the increasing demand for automotive paint and serving the needs of our customers who increasingly want the option to convert to waterborne technology,” said Charlie Shaver, chairman and CEO, Axalta.
The new facility will more than double the company’s production capacity to over 4.5 million litres (1.2 million gallons), which will meet the demands of automotive original equipment manufacturers (OEMs) in South America. The additional production is expected to come on line in 2015.
Significance: The latest investment is driven by the expectation that Brazil’s automotive market will continue its growth. The Guarulhos plant is Axalta’s largest manufacturing facility in Latin America. The plant supplies customers in Brazil, Argentina, Venezuela and Colombia. The investment in Brazil follows the company’s investment in Shanghai (China) last month. In January, Axalta Coating Systems began construction of a new facility in the Jiading district of Shanghai to manufacture waterborne products for the auto industry. The company will invest USD50 million in the plant, which will have the capacity to manufacture and supply 25,000 metric tonnes of waterborne products.
