￥150 Million Boost for Overseas Expansion! Baolijia Establishes Production Bases in Five Countries

Hz info,On August 9, Shanghai Baolijia Chemical Co., Ltd. (hereinafter referred to as "Baolijia") issued an announcement declaring its plan to invest in establishing wholly-owned subsidiaries in Vietnam, the Middle East, Indonesia, Kazakhstan, Thailand, and other locations through its Hong Kong wholly-owned subsidiary, Baolijia Group International Limited. These local subsidiaries will serve as the entities to construct water-based acrylic emulsion production bases, with a total investment not exceeding RMB 150 million (USD 20 million). This move aims to further expand overseas markets, enhance global supply chain responsiveness, and add significant weight to its "World's Baolijia" strategy.

Multi-Region Simultaneous Layout: Overseas Production Network Accelerates Formation

According to the announcement, Baolijia's overseas expansion covers core regions in Southeast Asia, the Middle East, and Central Asia. Currently, subsidiaries in Vietnam, the Middle East, and Indonesia have completed registration. Subsidiaries in Kazakhstan and Thailand are undergoing the registration process. Construction of the various production bases will commence relevant approval procedures after being reviewed and approved by the Board of Directors. The actual investment amount is subject to approval by Chinese and foreign competent authorities.

Among the three registered subsidiaries:

● Baolijia (Vietnam) Chemical Co., Ltd. was established on June 22, 2025, with a registered capital of VND 1.292 billion.

● Baolijia (Middle East) Chemical Co., Ltd. was established on May 29, 2025, with its registered address in the UAE and a registered capital of AED 625,000.

● Baolijia (Indonesia) Chemical Co., Ltd. was registered on February 9, 2025, with a registered capital of IDR 13 billion.

All three companies are 100% owned by Hong Kong Baolijia, and their primary business is the production and sales of water-based acrylic emulsions. The planned registered capital for the Kazakhstan and Thailand subsidiaries is KZT 100,000 and RMB 20 million respectively, with business scopes consistent with the aforementioned companies.

Global Strategy Deepens: Multiple Advantages Support Overseas Expansion

As a leading enterprise in China's water-based acrylic emulsion sector, Baolijia has been deeply involved in the industry for over twenty years since its founding in 2001. Its products cover multiple categories including architectural emulsions, waterproof emulsions, and textile emulsions, widely used in fields such as architectural coatings, waterproof materials, and textile processes. It is a core supplier to globally renowned coating companies such as Nippon Paint, SKSHU Paint, and AkzoNobel.

Regarding production capacity layout, Baolijia has established five major domestic production bases in Shanghai, Foshan, Yantai, Deyang, and Mingguang, with the construction of a new base in Yingcheng, Hubei progressing steadily. In 2023, it completed the initial layout of an overseas production base by acquiring Malaysia's MORTRADE.SDN.BHD (later renamed BLJ (MALAYSIA) SDN.BHD). The addition of production bases in these five countries will synergize with existing domestic and international capacity, further improving the "close-to-customer" global supply chain network, effectively reducing logistics costs, and enhancing responsiveness to overseas orders.

Baolijia stated that this investment is a prudent decision based on its globalization strategy. By building overseas localized production capabilities, it can both meet the overseas support needs of its domestic downstream customers and deeply integrate into the global acrylic emulsion industry chain by leveraging its technological and production capacity advantages. This will continuously enhance its international brand influence and market share, steadily advancing towards the goal of becoming a "globally leading acrylic emulsion supplier."

The announcement also points out that this outward investment still requires filing or approval from domestic and foreign competent authorities, and the approval progress is uncertain. Furthermore, due to factors such as domestic and international macroeconomics, industry policies, business environments, and cultural differences, the company may face challenges including policy risks, market competition risks, operational management risks, exchange rate risks, and rising costs. Investment returns are uncertain.

Despite potential risks, Baolijia's determination for global expansion is clear. The company stated that it will take this opportunity of constructing overseas bases to deepen localized operations in the Southeast Asian, Middle Eastern, and Central Asian markets, building a global business network by precisely addressing regional demands. Leveraging over twenty years of technological accumulation and production capacity advantages, Baolijia is advancing its "World's Baolijia" strategy with firm steps and is poised to occupy a more favorable position in the global water-based acrylic emulsion market competition.