Axalta Coating to double capacity in India; sees 25% revenue from Asia-Pacific by 2022

US-based supplier of liquid and powder coatings, Axalta Coating Systems will double its production capacity and construct an automotive OEM coatings development laboratory at its operations centre at Savli in Gujarat, the company said in a release today.

The company plans to invest an undisclosed amount that will enable it to meet the need for additional coatings among light vehicle automotive original equipment manufacturers (OEMs) in India. The Savli facility will continue to manufacture coatings for Axalta’s refinish, automotive parts and commercial vehicle customers, it said. The fresh investments in India are in line with the company’s forecast to increase the contribution of the Asia-Pacific region to its revenues from 15% at present to up to 25% in the next five years.

The project, which is scheduled to be commissioned in the third quarter of 2017, will be able to expand production capacity of both high and low temperature bake coatings. Low temperature bake coatings are needed for use on the latest lightweight plastic and composite materials - used in vehicles to reduce weight and fuel consumption - because they cannot withstand traditional high bake temperature curing ovens.

Axalta’s technology-backed products include primers, basecoats, and clearcoats used in the full line of Axalta’s solventborne products for every substrate and process requirement. These products include Axalta’s higher productivity and more environmentally responsible high solids, high solids 3-Wet, and high solids monocoat technologies. The facility will also be designed to scale up to produce waterborne coatings when customers elect to convert. Formulated to reduce volatile organic compound (VOC) emissions, high solids coatings can help reduce the environmental impact of coatings while providing superior finishes and improved OEM productivity.

The new automotive OEM coatings development laboratory is scheduled for completion during the second quarter of 2016 and will focus on developing special formulations to ensure superior color match, appearance, and quality. Axalta’s improved laboratory space will feature contemporary robotic spray applicators that can precisely replicate line application conditions inside customer manufacturing plants. The equipment is designed to facilitate the development, approval, quality control and customer line support required by automotive customers. Additional new capabilities at the next generation facility also include colour measurement tools and accelerated paint testing equipment, it added.

“Our investment aligns with Axalta’s global growth strategy and will allow us to expand our presence in India with light vehicle manufacturers,” explained Axalta Chairman and CEO Charlie Shaver. “Axalta’s improved laboratory and expanded production capacity in Savli will provide high-quality products designed to meet the needs of the growing local automotive OEM market and reinforce our position as a key coatings supplier in India.”

Axalta is currently present in the refinish, commercial vehicle and automotive part segments in India and serves a growing network of distributors and body-shops supported by offices and regional training centres in Mumbai, Vadodara, Gurgaon, Kolkata, and Bangalore. The Savli plant employs a range of environmental, health and safety processes and systems to reduce the facility’s environmental impact.                               

“Axalta is committed to its customer partners in India as proven by recent customer recognition of our performance and service in the refinish and commercial vehicle segments,” explained Vinay Rajadhyaksha, Managing Director of Axalta in India. “Our additional investment will provide near-term capacity improvements and allow Axalta to bring forth a renewed commitment to India’s automotive OEM segment.”