Akzo Nobel has agreed to sell its decorative coatings site near Barcelona, Spain as part of an expansion of its business activities there, which will include the construction of a brand new facility.
The land and buildings at the Sant Adria de Besos plant have been sold to real estate project development company Urbis. Financial details were not disclosed. However, Akzo Nobel will continue to make use of the site for up to four years from date of sale, allowing time for the new facility to be constructed and the activities to be transferred.
"Akzo Nobel is committed to growing its position in the Spanish decorative coatings market, which is one of the largest in Europe," said CEO Hans Wijers. "Investing in a dedicated new site in the greater Barcelona area will enable us to accelerate our expansion plans for the region and exploit the growth potential which the Spanish market so clearly offers."
The existing site produces and markets the company's Procolor, Sikkens and Bruguer brands, with almost all of the paint it produces being sold exclusively on the Spanish market.
"This relocation of our activities in Spain is a significant development, enabling us to expand our market presence and enhance the profitability of our business," said Leif Abildgaard, general manager of the company's Decorative Coatings Europe business. "The present site is not ideally situated with regards to our future plans. The new facility will be modern, far more efficient than our current location and will offer opportunities to further grow our Spanish business."
A shortlist of possible locations for the new plant, which will house all production, logistics and warehousing operations for the company's entire Decorative Coatings organization in Spain, has been drawn up. Various sites in the greater Barcelona metropolitan area are under consideration.