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After the high-speed train shuttles through several tunnels along the south bank of the Yellow River, in the valley between the last two tunnels, you can see an ancient building complex through the right window, which is the ancient city of Tongguan. Further on, the train enters the Guanzhong Plain of Pingchuan and declares that it has entered the northwest region in the geographical sense (according to the administrative division, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang are the northwest regions).
On April 12, 2024, the "seed" "planted" by Nippon Paint in the northwest region bloomed a flower of hope - Nippon Paint New Materials (Shaanxi) Co., Ltd., which is also the first production base of Nippon Paint in the northwest region (hereinafter referred to as the Xi'an factory), opened in Xi'an Economic Development Zone.
The opening of the Xi'an factory fills the gap in Nippon's production and supply chain layout in the northwest region
The lighthouse plant is Nippon's first new factory in the Tohoku region after the construction boom in 2016
"This is Nippon's first factory in the northwest region, and its commissioning fills the gap that Nippon Paint does not have a production plant in the northwest region. Nippon Paint related people told the "Paint Classic" reporter that before this, the market in the northwest region mainly relied on the radiation of the Chengdu factory (a comprehensive factory for the entire western region), but the entire western region is very vast, with the continuous deepening of the development of the western region, as well as the economic development of the northwest region to enhance the market demand, only a comprehensive factory located in the southwest region to supply products, becoming more and more difficult.
In this context, Nippon Paint has been exploring the ideal destination for new factories in the northwest region in its "seed factory" plan (which refers to Nippon's plan to intensively build new factories nationwide since 2016), which began in 2016. In 2018, Xi'an put forward the spatial strategy of "southern control, northern span, western integration, eastern expansion, and medium excellence" for the first time, and Xi'an Economic Development Zone is the main engine of the "northern span". At this time, the Nippon Paint production and supply chain construction team went west out of Tongguan and selected Xi'an Economic Development Zone as the first foothold in the northwest region, and the two sides finalized the investment intention in November 2019.
Xing Ronghua, Vice Chairman of Nippon Paint Investment Co., Ltd. and Senior Vice President of Nippon Paint China Supply Chain Management Headquarters, delivered a speech at the opening ceremony of the Xi'an factory
"Today, Xi'an, based on the western inland, makes up for shortcomings, promotes advantages, expands platform channels, promotes the reform of rules and systems, expands foreign economic and trade exchanges, and a new pattern of all-round opening up has taken shape, and new advantages in international competition and cooperation have gradually emerged. Xing Ronghua, vice chairman of Nippon Paint Investment Co., Ltd. and senior vice president of Nippon Paint China Supply Chain Management Headquarters, explained the reason for choosing Xi'an.
Xing Ronghua, Vice Chairman of Nippon Paint Investment Co., Ltd. and Senior Vice President of Nippon Paint China Supply Chain Management Headquarters, and Guo Shaomin, Deputy Director of Shaanxi Provincial Department of Commerce, jointly "put their eyes on it" to explain the deep meaning of enterprises and localities working together
Due to the subsequent major changes in the external environment, including the major adjustment of real estate policies and the huge change in market direction, the entire coating industry has faced various tests. However, this did not change Nippon's confidence and determination to invest in Northwest China, and after 3 years of running-in, the two parties converted their investment intentions into a clear investment agreement in 2022.
Whether it is the Xi'an factory or the lighthouse factory, it is a benchmark factory for digital intelligence, green and environmental protection in the coating industry according to the concept of "intelligent manufacturing and industry 4.0". The two factories started and opened at the same time, and the construction period was only 100 days
At the end of December 2023, the Xi'an factory project entered the construction site, and according to the concept of "intelligent manufacturing, industry 4.0", it was built as a benchmark factory for digital intelligence, green and environmental protection in the coating industry, which was completed and put into operation in only 100 days, creating a precedent for the speed of factory construction in the coating industry.
The commissioning of the Xi'an plant also means that after Nippon Paint entered the Chinese market for more than 30 years, the layout of its production and supply chain network has achieved full coverage of all major administrative regions in the country - which is an unrivaled achievement in China's coating industry.
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From Xi'an to Shenyang, the plane flew from an altitude of 10,000 meters over the "first pass in the world" - Shanhaiguan, which is located between Hebei and Liaoning.
After the Shanhaiguan Pass is the Northeast, which is people's most simple geographical cognition. As China's earliest heavy industry base and an important agricultural production area, the vast black soil of Northeast China is in the process of strong economic development.
Xing Ronghua, Vice Chairman of Nippon Paint Investment Co., Ltd. and Senior Vice President of Nippon Paint China Supply Chain Management Headquarters, delivered a speech at the opening ceremony of the Lighthouse Factory
Unlike the previous "blank" in the northwest region, Nippon's investment in the northeast region has long been ink. In 2013, Nippon Paint (Shenyang) Co., Ltd. was established to take over the Langfang plant (a comprehensive plant for the entire northern region) to be responsible for the radiation task of the Northeast market. However, Xing Ronghua pointed out that "(the Shenyang factory) has been operating in Northeast China for more than 10 years, and in the past 10 years, Nippon has developed and grown together with the Northeast market, and the original Shenyang factory can no longer meet the needs of the rapidly developing Northeast market." ”
In order to meet the demand for building materials market generated by the acceleration of urban and rural construction in Northeast China, and to help the national strategy of "revitalizing Northeast China", the demand for new regional factories in Northeast China has also been put on the agenda. Xing Ronghua said that in this context, under the active recommendation of the Liaoning Provincial Office in Shanghai, Nippon Paint and Liaoyang Lighthouse City will be contacted and connected in July 2023.
The construction of each of Nippon's factories is a model of cooperation between enterprises and localities. At the opening ceremony of the lighthouse factory, Xing Ronghua (third from left), vice chairman of Nippon Paint Investment Co., Ltd. and senior vice president of Nippon Paint China Supply Chain Management Headquarters, shook hands with Chen Dan (second from left), deputy secretary of the Dengta Municipal Party Committee and mayor
"Convenient transportation conditions, superior location conditions, efficient and convenient business environment, the increasingly mature Northeast market, and the high degree of compatibility between the development intentions of both parties have greatly stimulated the desire of Nippon Paint senior management to invest in the lighthouse. Xing Ronghua said. Under the efficient promotion of both parties, Nippon Paint New Materials (Liaoning) Co., Ltd., which is also the production base in the northeast region of Nippon Paint (hereinafter referred to as the lighthouse factory), completed the process from signing the contract to entering the construction site in just over 4 months.
In addition, like the Xi'an factory, the Nippon Paint Lighthouse factory will start construction before the end of 2023, and it will also take 100 days from the start of construction to production, which fully reflects the Nippon Paint speed, and on April 13, the day after the opening of the Xi'an factory, the lighthouse factory also held a commissioning ceremony - the opening of two factories in two days, which also refreshed the "Nippon Paint speed" from another dimension.
Two factories were opened in two days, once again refreshing the "Nippon speed"
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The simultaneous commissioning of two factories with efficient, environmentally friendly and intelligent production capacity in Xi'an and Dengta will not only further improve the production capacity and efficiency of Nippon Paint products, enhance the level of green manufacturing of enterprises, promote industrial transformation and upgrading, but also accelerate the construction of Nippon's intelligent manufacturing system.
Nippon's "seed factory" plan started with the groundbreaking of the Chubu Integrated Plant (hereinafter referred to as the Xianning Plant) in Xianning, Hubei Province in April 2016. But at that time, no one would have imagined that Nippon's factory construction momentum would be so fierce -
From 2017 to 2018, Nippon Paint announced the start of construction of a total of 6 factories; from the end of 2018 to 2019, Nippon Paint entered the first round of factory opening tide marked by the commissioning of Xianning factory; in 2020-2021, Nippon Paint has about 10 factories and about 5 factories opened; since 2022, due to changes in the economic environment and the impact continues, the speed of Nippon Paint's new factories has been reduced, but the projects that have been launched are still put into operation one by one as planned.
"Paint Sutra" combed and found that from the foundation laying of the Xianning factory in 2016 to the rapid operation and opening of the Xi'an factory and the lighthouse factory today, in 8 years, Nippon Paint has built a total of nearly 30 new factories, and without exception are the benchmark factories of the coating industry built according to the concept of "intelligent manufacturing and industry 4.0". If you include the original factories in China, Nippon Paint's production supply chain network has reached the scale of more than 70 factories, which is the best in China's coating industry.
In the Chinese market, Nippon Paint is undoubtedly a "proud" paint brand
"This is an important part of Nippon's strategic layout in China. From the perspective of production and supply chain construction, this strategic layout may mean that Nippon Paint will build factories on the front line of every regional consumer market - such as the Xi'an factory and lighthouse factory opened this time, in order to strengthen the radiation to the northwest and northeast markets.
The opening of two factories in the northwest and northeast respectively has become another "finishing touch" for Nippon Paint in 2024
Moreover, after the "dormant period" of factory construction after 2022, the rapid opening of the two factories in the spring of 2024 may mark the third round of Nippon Paint will set off a "factory construction tide" - this can be regarded as another level of "customs clearance" - from the opening of the Xi'an factory, it is understood that considering the vast territory of the northwest region, Nippon will continue to increase the density of factories in the region, and even has started the preparatory work related to the "second factory in the northwest"; There are also new investment moves in core market areas such as South China, which need to be further implemented by Nippon.
The colorful fireworks that represent the opening of the show are blooming in the sky over the northwest and northeast regions, which may mean the start of another round of investment in Nippon's production supply chain
With the launch of a new round of production and supply chain investment, it may mark the further clarity and visibility of Nippon's strategic layout in China.