Sustainable solutions to drive growth
Q4 Driving domestic consumption is one of the top priorities for China to spur economic growth this year. How do you see China's potential to drive a consumption-led impetus for the economy? How will that affect your company's profitability this year?
YIN: AkzoNobel is confident in the economic development of China and sees significant opportunities from the country's focus on driving domestic consumption. The recent consumption demand for high quality, sustainable, user-friendly and innovative solutions is highly recognized by our consumers and customers. For our decorative paint business, rising disposable incomes and a growing middle-income group are boosting demand for high-quality, trendy and green home products. For our coatings business, the increased investment in urban renewal and green infrastructure creates strong demand for our solutions in many areas, like the new energy sector, marine and aviation, wind power, consumer electronics and home appliances. China's domestic consumption growth will definitely boost AkzoNobel's business. This momentum, combined with our focus on sustainability and localization, will enhance profitability while supporting China's transition to a consumption-led economy.
ZHOU: We are highly encouraged by the government's proactive measures to stimulate domestic consumption and bolster consumer confidence, which are pivotal to sustaining China's economic momentum. The country's vast consumer base, coupled with increasing awareness of nutrition, health, beauty and quality of life, underscores its unparalleled potential to drive consumption-led growth. This trend aligns with our business focus to deliver innovative, science-backed solutions through our highly innovative portfolio of nutritional, natural and renewable ingredients. By leveraging our complementary science capabilities and technologies, we aim to pioneer high-quality products, reinforcing our role as a trusted partner in China's high-quality development journey. In 2024, thanks to the strategic plan executed, we delivered strongly improved financial results in all our businesses. Together with the ongoing good momentum in our end markets, this leads us to a positive full-year outlook for 2025.
CHEN: China has a robust supply chain and vast market potential. The shift toward a consumption-led economy represents new growth opportunities as the geopolitical shifts are accelerating a "local for local" strategy. The company's business will benefit from the initiatives to drive consumption-led impetus as we expect to see customers welcome more smarter solutions and products that are more natural and more sustainable.
SHEN: China's vast consumer base and rapidly growing middle-income group have shown strong purchasing interest in new energy vehicles, high-end smart cars and personalized mobility experiences. Furthermore, government policies, such as the promotion of intelligent connected cars, have further stimulated market demand. As Chinese consumer demand for high-tech, sustainable and personalized mobility solutions rises, the market presents significant growth potential. To seize this opportunity, we are strengthening our local R&D and manufacturing capabilities, developing cost-effective and innovative solutions to reduce weight, cost and environmental impact. Meanwhile, China has become a key innovation hub for our global business. Marelli Guangzhou, in Guangdong province, serving as Marelli's global display R&D and production center, leverages the advantages of a deeply vertical integrated supply chain and a robust overseas OEM (original equipment manufacturer) sales channel to enhance product competitiveness.
