Akzo plant in Surabaya

Akzo plant in Surabaya

AMSTERDAM (Reuter): Dutch chemicals and pharmaceuticals company Akzo Nobel NV said it had signed an agreement to set up a synthetic resins manufacturing joint venture with Indonesia's P.T. Raung Nusa Chemicals in Surabaya.

An Akzo spokeswoman said the joint venture would own the Raung resins production plant in Surabaya, which was already producing Akzo-licensed resins.

Akzo Nobel will have a majority stake in the new joint venture. The site, to be taken over by the venture on November 1, produces for the Indonesian domestic coatings market.

The spokeswoman said production capacity was currently 8,000 tons per year and Akzo aimed to increase output in the next few years.