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AkzoNobel to Optimize Coil Coatings Activities in Europe and Russia

November 22, 2013

AkzoNobel announced plans to optimize the manufacturing footprint of its Coil Coatings sites in Europe and Russia by concentrating production at three strategic sites.

The company intends to improve operational performance by focusing all European manufacturing for the Coil Coatings business on plants in Malmö (Sweden), Lipetsk (Russia) and Hilden (Germany). As a result of these plans, production at sites in Gamleby (Sweden) and Nürnberg (Germany) would end by June 2015.

"By focusing production on strategic sites that are close to our customers and manufacture products for more than one business, we will create a more efficient footprint and establish a more sustainable platform for future growth," said Conrad Keijzer, AkzoNobel’s executive committee member responsible for Performance Coatings.

The transfer is scheduled to start in early 2014. Current manufacturing at Gamleby will move to Malmö and Lipetsk, while production at Nürnberg will switch to Hilden.

Approximately 280 employees will be affected, with the company planning to transfer and hire additional people in Hilden, Malmö and Lipetsk. A centralized European development centre will also be set up in Malmö.

"Operational excellence is a key priority and moving production to three strategic sites is a logical step which will ensure that we are better positioned to deliver leading performance and accelerate profitable growth," added AB Ghosh, managing director of AkzoNobel Industrial Coatings. "These improvements in our supply chain will also enable us to respond even faster to our customers."

AkzoNobel is a global leader in coil coating, which is a continuous and highly automated process for coating metal before fabrication. The products are mainly used for building components and infrastructure, as well as for consumer goods such as kitchen appliances.

Employees have been informed about the company’s plans and discussions with the relevant works councils are already underway.

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