Hz info,On the morning of June 25, the phase-one upgrade project of Jotun China’s Zhangjiagang factory officially broke ground. With the commencement of the foundation-laying ceremony,this facility is poised to undergo a profound transformation.

Scheduled for completion by mid-2027 after a two-year construction period, the upgrade centers on a comprehensive overhaul of hardware infrastructure:

● A pre-mixing workshop will streamline raw material preparation, laying a solid foundation for production;

● Two Class A warehouses and one Class C warehouse (equipped with a dedicated forklift charging zone) will expand storage capacity and enhance supporting facilities, ensuring secure and efficient material handling;

● A finished goods consolidation zone will optimize packaging and shipping processes.

Announced in early 2025 by Jotun Paints (Zhangjiagang) Co., Ltd., this logistics-focused upgrade represents a RMB 170 million ($25 million) investment aimed at boosting warehousing and distribution efficiency to better serve the Chinese market.

This move is part of Jotun’s broader China strategy. Alongside the Zhangjiagang project, the company’s Qingdao facility—operated jointly with COSCO—has launched an ambitious five-year plan targeting full automation by 2030.

Further signaling long-term commitment, Jotun signed a Letter of Intent in March to invest $200 million (~RMB 1.45 billion) in a new Zhangjiagang Bonded Area plant for high-performance coatings. With an annual capacity of 200,000 metric tons, this marks Jotun’s first major expansion in Zhangjiagang since establishing its factory there in 2004—ending a 21-year hiatus in local investment.

Deep Roots, Strategic Shift

Since entering Hong Kong in 1983 and mainland China in 1993, Jotun has built an extensive network: 6 subsidiaries, 2 production hubs (Zhangjiagang, Qingdao), 7 offices, 1 R&D center, and 1 training center across six regions.

Recent investments reflect a strategic pivot beyond scale expansion. As China’s coatings market transitions from high-speed growth to quality-driven competition, Jotun is prioritizing:Supply chain agility;Flexible customization capabilities;Green sustainable production.

The Zhangjiagang upgrade—featuring regulatory-compliant warehouses and logistics-optimized workshops—directly addresses efficiency and compliance. These enhancements will slash delivery lead times, sharpen market responsiveness, and align operations with China’s escalating environmental and safety standards.

With these projects advancing, Jotun is positioned to amplify its competitive edge and industry influence in China’s next-phase coatings landscape.