allnex Announces the Next SCA Capacity Investment In APAC
- Written by Telegraph Magazine
- allnex is the global market and technology leader for Sag Control Agent (SCA) resin, a unique technology enabling excellent appearance of Automotive OEM coatings.
- Today allnex announced to build its first SCA production facility in APAC, the largest global Automotive market.
- This investment will significantly improve regional supply resilience, reduce lead times, and enhance service for our customers based in the APAC region
- And it will support faster adaptation of the next-generation of SCA's including high-solid, low-bake, and sustainable "green SCA" solutions.
Scheduled to begin operations in January 2028, this new SCA capacity investment, signifies allnex's commitment to support its customers in the world's fastest-growing automotive coatings markets.
By bringing SCA production into the APAC region, and importantly closer to customers, allnex will strengthen supply reliability, shorten lead times, and provide greater responsiveness to evolving market needs.
SCAs are a unique and cornerstone technology of allnex's Automotive OEM product portfolio and they define its market leadership position in this application. allnex SCA resins have superior sag control functionality, enabling exceptional appearance in premium high-gloss clearcoats. These specialty resins ensure that coating manufacturers are able to meet the ever increasing demands of car producers for performance, efficiency, and sustainability.
Since allnex invented SCA resins four decades ago, all allnex SCA production was concentrated in its Bergen op Zoom facility in The Netherlands. In the last few years, APAC has become the largest SCA market globally with strong future growth projections driven by increased car production and requirements for better appearance. By making this investment in APAC, allnex will not only provide customers with proximity of supply and greater assurance, it will also ensure to have enough capacity available in time, to meet future growth.
"This strategic capacity investment for a unique technology, is driven by our commitment to our customers and their growth ambitions in Asia-Pacific. By localizing SCA production in Thailand, we are responding directly to customer needs for greater supply security, shorter lead times, and faster access to innovation. The new facility will strengthen our ability and agility to support both global and regional customers in APAC and allows us to meet future market demand." said Ruben Mannien, Senior Executive Vice President APAC.
The Rayong site was selected following a comprehensive evaluation of multiple locations across the region. The site offers existing infrastructure, strong technical capabilities, and strategic proximity to key automotive manufacturing hubs, including China, India, Korea, and Southeast Asia.
The investment will include dedicated reactors for the production of SCA resins for plastic automotive parts and metal car bodies.
Beyond improving supply resilience, the new facility will support allnex's latest SCA innovations designed for next-generation clearcoat systems, including high-solid, low-bake, and more sustainable coating technologies. These solutions help customers improve productivity, reduce energy consumption, and differentiate themselves in an increasingly competitive market.
Construction is expected to be completed by the end of 2027, ensuring production readiness ahead of anticipated market growth.
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The issuer is solely responsible for the content of this announcement.
