Henkel has broken ground on a new manufacturing facility of its Adhesive Technologies business unit within the Yantai Chemical Industry Park in Shandong Province, China. In particular, the company has invested approximately RMB 870 million (US$122 million) for the new plant. Titled with the Chinese name ‘Kunpeng’, the new plant will enhance Henkel’s production capacity of high-impact adhesive products in China. Further, it will optimize the supply network to better meet the growing demand from domestic and international markets.

Mark Dorn, Henkel Executive Vice President of Adhesive Technologies, highlighted the significance of the new plant. “China plays an important role in our operations at Henkel and continues to demonstrate economic resilience and growth. Investing in the Kunpeng plant reflects our strong commitment to the future of our business in China and the Asia-Pacific region, creating value for our customers,” says Dorn.

“Kunpeng, our state-of-the-art facility, will set a new industry standard with its modernization and sustainability design. It will keep us ahead of the curve and meeting evolving customer needs,” says Rajat Agarwal, President of Henkel Greater China. “China’s focus on achieving high-quality and sustainable development creates unique opportunities for technology and product advancements. Investing in Kunpeng enables us to provide unparalleled support to our customers with enhanced end-to-end capability.”

A Future-Ready Smart Factory

Specifically, the Kunpeng plant is set to occupy more than 150,000 square meters. This includes state-of-the-art automated production workshops and an 8,000m² smart warehouse. Also, the new plant will enhance Henkel’s supply capacity of high-impact adhesive products in the Chinese market. The plant aims to fully meet the demand of fast-growing industries with high-quality and sustainable adhesive products and solutions. Among them include electronics, automotive, medical, equipment manufacturing, and aerospace.

A Model of Sustainable Operations

Holding a strong commitment to sustainability, the plant will utilize 100% renewable electricity. Moreover, it will incorporate a range of sustainability features, such as an advanced building energy management system, water circulation system, and a ground source heating pump system. These technologies are expected to reduce carbon dioxide emissions by more than 5,000 tons per year and reduce operational water consumption by 25%. Specifically, this contributes to Henkel’s ambition of achieving climate-positive operations in its manufacturing by 2030.