Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $11.61 billion for 2024. The company has approximately 34,600 employees and more than 200 manufacturing facilities and is active in more than 150 countries. Its portfolio of brands includes Dulux, International, Sikkens and Interpon. EMEA comprises 47% of its sales, North Asia 16%, North America 13%, South Asia Pacific 12% and Latin America 12%.

AkzoNobel Completes Expansion of Powder Coatings Sites Globally

A major capacity expansion has been completed at AkzoNobel’s Powder Coatings site in Como, Italy, which will help secure supply to customers across Europe, Middle East and Africa (EMEA).

Four new manufacturing lines are now operational following the €21 million project – two of them dedicated to automotive primers and two to architectural coatings. New bonding equipment lines have also been added, ensuring that the products meet and exceed industry standards.

“Increasing our capabilities in Como is a significant milestone which supports our ambition to create safety of supply for our customers,” explains Sanal Limoncuoglu, Commercial Director of AkzoNobel’s Powder Coatings business in South and East Europe (S&EE) and Middle East Africa (MEA). “We’re now well equipped to serve all our customers in the EMEA region with highly efficient lines that are state-of-the-art in terms of consistency and quality.”

The extra capacity in Como has been installed in a renovated building where powder coatings were originally made – a sustainable reuse of an existing part of the site, which was established in 1992. The new lines also use recycled energy and are focused on meeting the highest standards in sustainable production, supporting the company’s ambition to reduce its carbon emissions by 50% by 2030.

AkzoNobel’s Como site is the company’s largest plant for producing powder coatings. It supplies products for seven main market segments: home appliances; architecture; automotive; agriculture and construction machinery; trade coaters; furniture; and general industry.

More than $30 million is being invested by AkzoNobel to install advanced technologies and increase total manufacturing capacity at its four powder coatings sites in North America.

The company is incorporating new extruders, thermoplastics and bonding processes at its facilities in Reading, Pennsylvania; Warsaw, Indiana; Nashville, Tennessee; and Monterrey, Mexico. It will unlock numerous benefits, such as increased production efficiency and expanded application capabilities.

The enhancements – which will help to maximize the versatility and long-term sustainability performance of AkzoNobel’s powder coatings portfolio – follow on from recent investments in powder manufacturing at Como in Italy and the multi-site in Bac Ninh, near Hanoi, Vietnam, to support the company’s growth ambitions in Europe and Asia respectively.

AkzoNobel Boosts Capability of North American Powder Coatings Sites

More than $30 million is being invested by AkzoNobel to install advanced technologies and increase total manufacturing capacity at its four powder coatings sites in North America.

The company is incorporating new extruders, thermoplastics and bonding processes at its facilities in Reading, Pennsylvania; Warsaw, Indiana; Nashville, Tennessee; and Monterrey, Mexico. It will unlock numerous benefits, such as increased production efficiency and expanded application capabilities.

The enhancements – which will help to maximize the versatility and long-term sustainability performance of AkzoNobel’s powder coatings portfolio – follow on from recent investments in powder manufacturing at Como in Italy and the multi-site in Bac Ninh, near Hanoi, Vietnam, to support the company’s growth ambitions in Europe and Asia respectively.

“As customers continue to prioritize sustainability, durability and performance, the demand for powder coatings is projected to escalate,” explains Jeff Jirak, Global Director of AkzoNobel’s Powder Coatings business. “By staying ahead of the curve and investing in these advanced technologies, we’re positioning ourselves as a leader in this thriving market, driving innovation and delivering value to customers in North America and around the globe.”

Installing innovative thermoplastic materials in the powder coatings formulation will open up new possibilities for diverse applications and performance enhancements. Effective bonding between pigment particles and resin matrix is crucial for achieving durable and aesthetically pleasing powder coatings, while the advanced extruders will enable real-time adjustments and maintain precise control over the extrusion process.

One of the primary benefits of powder coatings is their exceptional durability and resistance to corrosion, chemicals and UV radiation. This durability translates into longer-lasting coatings, reducing maintenance requirements and extending the lifespan of coated products. As a result, industries ranging from automotive and architecture, to appliances and aerospace, have increasingly turned to powder coatings to enhance product performance and longevity.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $11.61 billion for 2023. The company has approximately 35,200 employees and more than 200 manufacturing facilities and is active in more than 150 countries. Its portfolio of brands includes Dulux, International, Sikkens and Interpon.

AkzoNobel recently announced the opening of its new best-in-class R&D Center in High Point, NC. It functions as a product development facility and customer support center for the wood coatings business.

The company’s community of North America R&D centers supporting the Performance Coatings businesses includes labs in Troy, MI; Strongsville, OH; Houston, TX; Flying Hills, PA and Lancaster, SC.

AkzoNobel’s R&D centers are transforming the company’s investment in science and technology while giving customers direct access to sustainable product development. AkzoNobel hosted a grand opening ceremony that was attended by customers, suppliers, employees and community leaders. The R&D centers have advanced equipment, allowing the company to reproduce the application environment and methods for customers and ensures the products provide the intended performance once commercialized. AkzoNobel looks forward to continued growth in North America as the company advances.

Stretching Boundaries in Paints and Coatings

By David Williams, AkzoNobel’s Chief Innovation Officer

Innovation is the spark that ignites our ability to advance our products, services and technologies while benefitting our customers and the world around us. Our proud track record of game-changing innovation stretches all the way back to the 19th century. That’s how long we’ve been developing proprietary technologies and products with built-in superpowers.

From saving energy, absorbing heat and protecting and beautifying assets, to making ships go faster, lighting brighter and air cleaner, our world class reputation for pushing boundaries can be found in every layer of paint our customers apply.

And it’s our talented colleagues around the world who ensure we can deliver for our customers every single day. We’re constantly innovating, embracing fresh ideas and developing exciting new products to help keep us at the forefront of our industry. It’s all about collaboration and creativity – combining our expertise to harness the power of paints and coatings to bring about positive change. And we never stand still, because expanding horizons is in our nature.

Driving bodyshop sustainability

Bodyshops can now take advantage of the vehicle refinish industry’s first repair calculator to measure, manage and reduce carbon emissions. The CO2eRepairCalculator* is one of our latest digital innovations on making a long-lasting difference to customers. It identifies the carbon levels associated with the painting and drying process – including the energy consumed – and is linked directly to the vehicle refinishing products being used. It helps customers understand where improvements can be made.

*CO2e stands for carbon dioxide and equivalent gases. The tool measures carbon dioxide (CO2) and equivalent gases such as methane (CH4) and nitrous oxide (N2O), which all fall under the term greenhouse gases (GHGs).

Mosquito-repellent coating to help combat disease

People in Brazil have a new ally in the fight against an invasive carrier of dengue fever – a powerful mosquito-repellent coating. Known as Well-being Protection Anti-Mosquito, the colorless matt varnish contains an active ingredient called permethrin. Its repellent action is designed to combat the Aedes aegypti mosquito, which can spread dengue also transmit the zika and chikungunya virus.

Harvesting energy from surfaces

Together with nine partners, we‘re involved in ENVISION – a unique collaboration which set out to devise a way of invisibly harvesting energy from surfaces. We supported the project with an innovative coatings solution that allows heat to be captured by colors that traditionally reflect near-infrared light, making buildings energy positive – and existing houses more sustainable.

Cutting-edge 3D color technology

Choosing the right powder coating has never been easier, thanks to the immersive 3D imaging technology by our Interpon brand. The 3D color tool – available via the AkzoNobel Design app – is designed to help architects and specifiers find exactly the right product for their needs. So as well as enabling users to digitally rotate coatings samples, it’s also possible to zoom in and out and view them in the context of different environments – providing a truly realistic impression of what the actual powder coated finish would look like in real life.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $11.65 billion for 2022. The company has approximately 35,200 employees and more than 200 manufacturing facilities and is active in more than 150 countries. Its portfolio of brands includes Dulux, International, Sikkens and Interpon.

Recent Acquisitions

AkzoNobel is to further strengthen its China position after reaching an agreement with Sherwin-Williams to acquire its Chinese Decorative Paints business*. Completion, which is subject to regulatory approvals, is expected in the second half of 2023.

The business has an annual revenue of about €100 million and employs around 300 people. The transaction includes the Huarun brand, which has a long history and is well recognized in China.

“Acquiring the Chinese Decorative Paints business from Sherwin-Williams will help us to deliver our growth ambitions in tier three to tier five geographical areas in China. This intended acquisition is a strong strategic fit and our current business is best placed to unlock the full potential, thereby offering new opportunities for employees and customers,” said AkzoNobel CEO Greg Poux-Guillaume.

“Acquiring this business from Sherwin-Williams, and especially their renowned decorative paints brand ‘Huarun,’ will strongly complement our existing premium-focused Dulux product portfolio,” Mark Kwok, director Decorative Paints North Asia, said. “This will give our customers access to a more diverse and stronger offering. We look forward to welcoming these employees to the AkzoNobel China family and are excited about the opportunities we can achieve together.”

The intended acquisition follows on from a series of recent acquisitions by AkzoNobel across paints and coatings over the last years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the U.S., Grupo Orbis in Latin America and, most recently, Lankwitzer Lackfabrik in Germany.

The acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik GmbH strengthens the company’s performance coatings portfolio. The acquired business will complement AkzoNobel’s existing powder coatings offering and expand the range of innovative products the company supplies.

Operating out of Leipzig, Germany, Lankwitzer’s Rims and Wheel business supplies approved products for car manufacturers such as Daimler, Audi, VW, Opel, Fiat and Renault.

The business also has a growing presence in China and operates laboratories in Germany (Leipzig) and Türkiye.

AkzoNobel is to further strengthen its African footprint after reaching an agreement with Kansai Paint to acquire its paints and coatings activities in the region. Completion, which is subject to regulatory approvals, is expected during the course of 2023.

Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around €280 million. The transaction includes the Plascon brand, which has more than 100 years of heritage in South Africa. Together with AkzoNobel’s Dulux brand, they’re the longest-established paint brands in the region. The intended acquisition also includes automotive and protective coatings, and coatings for wood and coil.

“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” said then CEO Thierry Vanlancker. “Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”

Added Kunishi Mori, Kansai Paint’s president: “We are convinced that AkzoNobel is the best owner as AkzoNobel considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy.”

For Prejay Lalla and Arvind Shekhawat, chief executive officers of KPAL and KPEA (the respective Africa entities being sold by Kansai Paint in this transaction), this agreement is an opportunity to further enhance growth. “We believe that AkzoNobel will be the owner who will elevate the business to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities as well as the long-term success of its paint businesses in Africa.”

Commenting on the deal, Jan-Piet van Kesteren, managing director of AkzoNobel’s Decorative Paints Europe, Middle East and Africa business, said: “Kansai Paint Africa is a beautiful addition to our existing strong business which spans across nine countries in the region. The acquisition will complement our portfolio of leading positions in attractive markets and world class brands in Africa, while driving growth in relevant emerging markets. It also offers us the unique opportunity to welcome another strong brand with a heritage of more than 100 years and a wide distribution network.”

*The Chinese Decorative Paints business is known within Sherwin-Williams as the Chinese Architectural Paint business.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $9.99 billion for 2021. The company has approximately 32,800 employees and more than 200 manufacturing facilities and is active in more than 150 countries. Its portfolio of brands included Dulux, International, Sikkens and Interpon.

Recent Acquisitions

AkzoNobel has completed the acquisition of 100% of the shares of Industrias Titan S.A.U. (Titan Paints), strengthening its paints business and footprint in Spain.

The transaction includes three production facilities and seven logistics and service centers for decorative paints, including one of the most modern manufacturing plants for water-based paints in Europe in El Prat de Llobregat, near Barcelona.

The business generated revenue of around €80 million. Titan Paints – which also has a relevant presence in Portugal – is one of Spain’s best-known brands. The business shares AkzoNobel’s commitment to sustainable product innovation, with much of its portfolio having received recognition for environmental performance.

AkzoNobel has also completed the acquisition of Colombia-based paints and coatings company Grupo Orbis, strengthening its long-term position in Latin America.

Present in ten countries in Central America, South America and the Antilles, Grupo Orbis has consolidated revenue of around €360 million. The transaction includes the Pintuco paints and coatings business, Andercol and Poliquim (resins, emulsions, adhesives and specialty chemicals), Mundial (paints and related product distribution services) and Centro de Servicios Mundial (shared services center).

The Pintuco portfolio consists of 75% decorative paints and 25% coatings, offering a range of products, creating several opportunities for revenue synergies. The deal was first announced in June 2021.

Paint the Future

Launched in 2019, Paint the Future is AkzoNobel’s global collaborative innovation ecosystem. It’s a bold initiative to accelerate, test, launch and scale ideas and solutions for the paints and coatings industry.

Paint the Future runs a variety of programs to accelerate innovation. Initially open to startups, it was quickly expanded to embrace academia, research institutes and two large groups of suppliers. As the ecosystem continues to grow and build on the success of each program, it’s become the largest in the industry.

The Paint the Future global startup challenge 2022 invited 10 selected finalists to take part in a three-day bootcamp in Amsterdam March 22-24. The startups and AkzoNobel experts met face-to-face to explore potential collaborations together.

The three winners of the Paint the Future global startup challenge are all set to accelerate their innovative solutions for the paints and coatings industry. Following an intense three-day bootcamp, these startups were selected by an international jury to continue working with AkzoNobel on sustainable business opportunities.

“Through Paint the Future, we’re bringing innovation and sustainability together as a key driver of our business,” says Thierry Vanlancker, AkzoNobel CEO. “In our ecosystem, we collaborate with startups, suppliers, customers and academia around exciting solutions that will ensure a more sustainable future.”

The winners of the Paint the Future global startup challenge – SolCold, Aerones and SprayVision – received their awards following an intense three-day bootcamp at AkzoNobel’s headquarters in Amsterdam.

“Collaborative innovation is truly transforming the paints and coatings industry,” says Klaas Kruithof, AkzoNobel’s chief technology officer and chair of the Paint the Future jury. “I’m looking forward to mixing the skills of these passionate entrepreneurs with our knowledge of paints and coatings. Together, we’ll bring our customers new solutions that go beyond imagination.”

Paint the Future startup challenges are designed to connect startups with industry knowledge and expertise to help accelerate their solutions in the paints and coatings industry. This Paint the Future global startup challenge launched May 18, 2021, attracting 245 submissions from 62 countries. Ten finalists were invited to Amsterdam to participate in the bootcamp program.

This is AkzoNobel’s second global startup challenge, following its industry-first predecessor in 2019. Regional startup challenges have since been held in Brazil (2020), China (2021), and most recently in India (2022).

These are the three winners of the Paint the Future global startup challenge:

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $10.44 billion for 2020. The company has approximately 32,000 employees and more than 200 manufacturing facilities and is active in more than 150 countries. Its portfolio of brands included Dulux, International, Sikkens and Interpon.

E-Mobility

As global demand for electric vehicles – and e-mobility in general – continues to accelerate, AkzoNobel’s Powder Coatings business has switched on to the growing needs of its customers by developing advanced technologies to help power the industry into the future.

Manufacturers of electric vehicles and components want world class solutions to help protect motors, battery system and electrical storage units and the company can now offer a dedicated powder coatings portfolio, alongside a team of technical specialists to provide expert assistance.

“Thanks to our renowned Resicoat brand, we have more than 50 years of experience in offering tried, tested and proven performance for a wide range of electrical insulation and high temperature solutions,” explained Daniela Vlad, director of AkzoNobel Powder Coatings. “Building on that global track record, we’re now taking our innovation even further to help power up the next generation of e-mobility through both our Resicoat and Interpon brands.”

R&D Center

AkzoNobe has opened a new research center which will develop pioneering products for the rapidly growing area of powderon wood at its site in Como, Italy.

The new R&D facility – which features an application lab, process lab, and analytical and testing lab is dedicated to delivering low cure powder coatings for use on heat-sensitive substrates (such as MDF, plywood, thermoplastics and composites).

Its inauguration follows the recent acquisition of Stahl’s powder coatings activities, which gave AkzoNobel access to a broad range of solutions, including unique UV technology. The Como center will now focus on developing an expanding portfolio of low cure solutions, including low bake, UV and ultra-low bake (ULB) powder technologies. This will enable customers to use less energy during production, gain process speed and boost their own sustainability profile.

“We’re excited to build on our global leadership position and enter new markets while bringing more surfaces to life for our customers,” explains Daniela Vlad, Director of AkzoNobel’s Powder Coatings business. “In addition to strengthening our position as a technology leader, the new facility will also help to accelerate our speed to market so we can reach our customers even faster.”

She adds that this is only the first phase of the company’s expansion into powder on wood, with plans in place to open additional R&D centers in Asia and North America.

Expansion in South and Central America

AkzoNobel has reached an agreement to acquire Colombia-based paints and coatings company Grupo Orbis, expanding its presence in South and Central America. Completion is subject to regulatory approvals and is expected by end of this year, or in early 2022.

Present in ten countries in South America, Central America and the Antilles, Grupo Orbis has consolidated revenue of around (€260 million. The transaction includes the Pintuco paints and coatings business, Andercol and Poliquim (resins) and Mundial (distribution and services).

“This is an excellent intended acquisition which aligns perfectly with our Grow & Deliver strategy of creating leading global positions and driving growth in emerging markets,” explains AkzoNobel CEO, Thierry Vanlancker. “It will expand our long-term position across South America by establishing us as a frontrunner in the Andean region and in Central America, where several countries are high on the global growth rankings for the next decade.”

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $10.16 billion for 2019. The company has approximately 33,800 employees and more than 200 manufacturing facilities and is active in more than 150 countries. Its portfolio of brands included Dulux, International, Sikkens and Interpon.

Recent acquisitions:

• AkzoNobel has announced its intention to acquire French aerospace coatings manufacturer Mapaero. The intended acquisition will strengthen AkzoNobel’s global position in aerospace coatings, notably in the structural and cabin coating sub-segments, and contribute directly towards delivering the company’s 2020 guidance.
• AkzoNobel completed acquisition of Mauvilac and strengthens its position in Sub Saharan Africa. AkzoNobel has completed the acquisition of 100 percent of the shares of Mauvilac Industries Limited, a leading paints and coatings company in Mauritius.
• AkzoNobel acquired full ownership of powder coatings joint venture in Turkey

Akzo Nobel N.V. has completed the acquisition of the remaining 25 percent stake in Akzo Nobel Boya Sanayi ve Ticaret A.S., a leading powder coatings joint venture in Turkey.

Most Recently Launched Products
List of most recently launched new products:

• AkzoNobel and BYK-Gardner digitize surface texture for powder coatings
• The spectro2profiler represents a major step forward for the industry because currently, the only way to check the quality of a textured powder coating surface is to carry out a visual inspection.
• Ultimate rust-busting metal paint launched
• A new wave of exterior water-based paint has been launched by AkzoNobel which offers superior metal protection. Hammerite Ultima can be applied directly onto any metal surface – as well as rust – without the need for a primer. Suitable for anything from gates and fences to railings and garden furniture, the new product is now available in Germany, Spain and France and is scheduled to be launched onto other markets.
• Dulux Ambiance range launched in India
• Dulux has introduced six special effects paints onto the Indian market. Part of the Ambiance range, the new Marble, Metallic, Linen, Silk, ColourMotion and Desert paints enable consumers to create  entirely new designs and patterns. In addition, Dulux has also launched Dulux Ambiance Velvet Touch Elastoglo. Powered by elastomeric properties, the product provides a three-fold increase in the elasticity of the paint film.
• Yacht market primed for revolutionary spray filler
• Superyacht builders and applicators can now benefit from spray filler technology. Part of its Awlgrip range, Awlfair SF is a high-performance filler which can be applied by pressurized airless spray, rather than by hand. The innovation not only allows for wet-on-wet application, it also means up to two coats per day can be applied, without the need for sanding in-between.
• New dawn rises with 2020 Color of the Year
  AkzoNobel’s Color of the Year for 2020 is Tranquil Dawn, which also features in all four ColourFutures 2020 color palettes. They’re designed to empower and inspire customers and make the task of choosing color easier.
• Recycled paint launched to help close loop on waste
  AkzoNobel has become the first major manufacturer to launch recycled paint, thanks to a ground-breaking partnership in the UK with resource management experts Veolia. The Evolve matt white emulsion contains 35 percent recycled paint and has been re-engineered and tested to meet the same high standards expected from Dulux Trade.
• Single-stage topcoat makes life a breeze for yacht owners
• Yacht care and maintenance just got easier following the launch of Awlgrip HDT (High Definition Technology), a new single-stage repairable topcoat from AkzoNobel. Creating a new standard in topcoat appearance and durability, Awlgrip
• HDT is a high performance, mirror-like coating which allows owners to protect their boat with a stunning, long-lasting finish, without sacrificing convenience.
• Gaining color confidence from four new digital color tools

AkzoNobel recently introduced four new digital tools to make precise color-matching easier for its customers. Three of them serve industrial customers and work with the Salcomix system, an on-site facility which enables paint to be mixed on demand with superior color accuracy. They include Salcomix PaintFinder Cloud; the high-end Automatchic Vision measuring device; and the ColorFinder, which works via a dedicated app. The fourth tool, the digital Color Sensor, helps professional painters who use decorative paints to match their clients’ color choices in seconds. The small portable device scans the color on any object and links to the Color Sensor app to provide an exact paint match.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $10.36 billion for 2018. The company has approximately 34,500 employees and more than 200 manufacturing facilities. North America comprises 12 percent of sales, mature Europe 34 percent, emerging Europe nine percent, Asia Pacific 31 percent, South America nine percent and other five percent.

The company recently made a multi-million-dollar investment to its wood coatings facility in High Point, North Carolina. The transformation will involve reorganizing manufacturing operations at the site and will include the addition of automatic dosing unit technology to produce paint more efficiently. A new raw materials warehouse, research lab and technical application center are also being built. Construction is due to begin in April 2019, with rolling projects expected to be completed by 2020.

The High Point facility covers 30 acres and employs more than 250 people. The site produces a wide range of products, including UV, solvent-based and water-based wood coatings, such as paints, stains and lacquers.

Business Highlights for 2018

• Working with the world’s coolest innovators,

AkzoNobel created a major buzz in the coatings industry with the launch of its Paint the Future startup challenge. AkzoNobel wants to combine its global scale, know-how and expertise with the ingenious solutions of startups and scale-ups across the planet. According to the company, it’s all about connecting with new disruptive technologies and accelerating innovation in the dynamic world of paints and coatings. www.letspaintthefuture.com

• Asian acquisitions underline commitment to key markets. Two transactions in the final months of 2018 highlighted AkzoNobel’s continued focus on further strengthening its positions in Asia. In December, the company acquired the minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture, giving it greater control over its future growth and direction. A month earlier, the company acquired Colourland Paints in Malaysia, which will boost its growth ambitions in the country itself and throughout South-East Asia.
•  Awlgrip HDT offers extreme performance for yacht owners.

Yacht owners can now benefit from advanced coatings technology, which passed the ultimate test during the latest edition of the Volvo Ocean Race. AkzoNobel’s new Awlgrip HDT (high definition technology) polyurethane clearcoat is not only more durable and abrasion-resistant than current market offerings, but it’s also repairable and lower in VOCs.

• Boeing partnership reaches milestone: Special aircraft livery was developed to mark a major milestone in the company’s paint partnership with Boeing. To celebrate the delivery of Boeing’s 787th 787 aircraft, AkzoNobel’s industry-leading “base coat/clear coat” system was used as part of a one-off design painted onto the landmark plane, which was ordered by China Southern Airlines. Boeing also hit another milestone recently, delivering its 1,000th new aircraft to have been painted with the company’s unrivalled Aerodur 3001/3002 paint system.
• AkzoNobel has reinforced its commitment to customers in India, following the inauguration of a new €9 million facility in Mumbai for the production of Powder Coatings
• Consumers in Pakistan now have access to Dulux Promise. AkzoNobel has launched a decorative paints product for the mass market segment
• Dulux Weathershield was relaunched in Asia featuring Smart Release Technology. This protects homes and buildings with even longer lasting protection against algae and fungus
• The most eye-catching car of the new Formula 1 season – McLaren’s MCL33 – features innovative coatings supplied by AkzoNobel’s Sikkens brand. This reduces the total weight of paint and decreases processing time by more than 50%
• AkzoNobel is developing a new high-performance antifouling technology, which uses ultraviolet light-emitting diodes to prevent marine growth. It features underlying technology developed by Royal Philips.

Recent acquisitions/divestitures

• The acquisitions of Xylazel in Spain and Doves Decorating Supplies in the UK were completed in September 2018.
• The acquisition of Fabryo Corporation S.R.L., was completed on Oct. 1, 2018
• The acquisition of Colourland Paints Sdn Bhd and Colourland Paints (Marketing) Sdn Bhd in Malaysia was completed in November 2018
• The acquisition of the minority interest share to obtain full ownership of the AkzoNobel Swire Paints joint venture in China was completed in December 2018
• The sale of the Specialty Chemicals business in October 2018.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel reported paint and coatings sales of $11.46 billion for 2017 and has approximately 35,700 employees in more than 80 countries. North America comprises 12 percent of sales, Mature Europe 33 percent, Emerging Europe nine percent, Asia Pacific 32 percent, Latin America nine percent and Other regions five percent. Revenue breakdown by business unit for Decorative Paints is Decorative Paints Europe, Middle East and Africa – 54  percent, Decorative Paints Latin America – 13 percent and Decorative Paints Asia – 33 percent. Revenue breakdown by business unit Performance Coatings is Marine and Protective Coatings – 22 percent, Automotive and Specialty Coatings – 27 percent and Industrial and Powder Coatings – 51 percent.

Recent Developments:

• AkzoNobel strengthened its leading global position in performance coatings through the acquisitions of V.Powdertech business for Powder Coatings, Flexcrete Technologies Ltd. for Protective Coatings and Disa Technology (Disatech) for Specialty Coatings.
• Opened the world’s most advanced and sustainable paint plant in Ashington, U.K. This will be the production center for its leading global brand, Dulux, which was also voted the healthiest brand in the UK.
• Other examples of the company’s focus on strengthening the business include a €13 million investment in a new innovation hub in the U.K, and the opening of a new Performance Coatings facility in Chonburi, Thailand.
• In September, AkzoNobel was ranked number one on the Dow Jones Sustainability Index. During the year, the company put particular emphasis on increasing its energy efficiency, reducing material waste and continuing to deliver more eco-premium solutions to its customers.

Recently launched products:

Recent examples include launches in South East and South Asia, helping to build on its existing portfolio of strong brands. AkzoNobel reported that it is making particular progress in Pakistan, where it has a long history and is an important market. AkzoNobel recently launched Dulux Promise – a complete range of interior and exterior products – in Pakistan.

“Dulux Promise is our first entry into the country’s mass market paints segment, so making sure we connect with consumers has been foremost in our minds,” said Ruud Joosten, COO. Having already proved to be successful in other parts of Asia, it is helping the business to drive volume. In fact, it has just enjoyed the most successful launch month for any of our products in recent history.

Another exciting launch in South East Asia was a series of innovative paint products with smart functionality. That’s right, paint can be smart. One example of this is an upgrade of the Dulux Weathershield range – specialist paint for exterior masonry.”

AkzoNobel to Sell Specialty Chemicals to The Carlyle Group and GIC for €10.1 Billion

AkzoNobel recently announced the sale of 100 percent of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of €10.1 billion. This transaction creates two focused and high performing businesses – Paints and Coatings, and Specialty Chemicals – as part of its strategy announced in April 2017. The transaction is expected to be completed before the end of 2018.

The Board of Management and the Supervisory Board concluded that a private sale to The Carlyle Group and GIC is in the best interests of AkzoNobel, Specialty Chemicals and its respective stakeholders, including employees, shareholders, and customers. This is the outcome of a thorough dual-track process during which the Boards of AkzoNobel carefully considered both a legal demerger and a private sale.

The Carlyle Group has a global presence and the financial capacity to enable the Specialty Chemicals business to achieve its full potential. Carlyle has extensive experience investing in chemicals, unlocking long-term potential and creating value in its portfolio companies.  As a responsible investor Carlyle is focused on driving growth, job creation, and long-term financial success. The firm also has a strong focus on Environmental, Social, and Governance (ESG) aspects and building positive working relationships with wider stakeholders (employees, unions and local communities).

“Today is a key milestone in creating two focused, high performing businesses, to generate value for all stakeholders,” said Thierry Vanlancker, CEO AkzoNobel. “We delivered on our commitment to separate the Specialty Chemicals business and did so ahead of schedule. We are very pleased to announce the sale of Specialty Chemicals to The Carlyle Group and GIC. We believe the business is well positioned to capture growth opportunities and further improve performance. Carlyle has significant experience in the chemicals industry and a proven track record when it comes to health, safety, innovation, and sustainability.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel is active in the fields of decorative paints, performance coatings and specialty chemicals and employs approximately 45,600 people (including its Specialty Chemicals business) in more than 80 countries.  Mature Europe comprises 36 percent of the company’s revenue, Asia Pacific 27 percent, North America 17 percent, Latin America 10 percent, emerging Europe 7 percent and other countries 3 percent.

“In a year of record profitability in terms of return on sales and return on investment, our purpose of creating everyday essentials to make people’s lives more liveable and inspiring was brought to life,” said Ton Büchner, chairman and CEO of AkzoNobel. “We continued to build on our solid foundation of operational excellence to drive growth and sharpened our focus on delivering more value for our people, our customers and our shareholders.”

“As well as introducing a series of innovative new products, we began to advance our digital agenda and made important steps with regard to sustainability, setting us up to accelerate organic growth. Our expanding Human Cities initiative – everything we do for and with society – also continued to impact millions of people around the world.

In 2016, AkzoNobel led the creation of the Human Cities Coalition, a public-private partnership of Dutch organizations from government, NGOs  and business, it’s focused on contributing to Goal 11 of the UN Sustainable Development Goals: Sustainable cities and communities.

Expanded R&D in the U.S.

AkzoNobel has completed the €2.6 million ($3.5 million) expansion of its U.S. research and development facilities in Houston, Texas.

Carried out in phases over a period of three years, the investment in the site – which employs around 40 scientists – will support the company’s Protective Coatings, Marine Coatings and Specialty Coatings businesses.

Part of AkzoNobel’s ongoing investments in its global RD&I activities, the Houston upgrade follows an investment of €12.6 million in a research and innovation hub in Felling, UK, announced earlier this year.

Additional capabilities at the facility include a dedicated area for experimental paint making, a modern paint application laboratory and environmentally controlled drying areas for conditioning of test panels. Enhanced chemical resistance testing equipment is also available to support the Ceilcote and Enviroline lining ranges in North America.

AkzoNobel is in the process of reviewing strategic options for the separation of its Specialty Chemicals business.

The Specialty Chemicals business, which had revenues of €4.8 billion in 2016, is strongly positioned with a broad portfolio of leading technologies and chemicals which service a wide range of end-user segments including construction, industrial and consumer goods. The separation will allow the Specialty Chemicals business to continue to build and accelerate its market-leading positions across a range of market segments.

As part of the separation, AkzoNobel will consider various alternative ownership structures for the Specialty Chemicals business including, but not limited to, the establishment of an independent listed entity. The ultimate structure will be determined by reference to shareholder value maximization as well as broader stakeholder considerations.

The company announced that the decision was brought forward following confirmation that AkzoNobel has rejected an unsolicited, non-binding and conditional proposal from PPG Industries Inc. for all of the issued and outstanding ordinary shares in the capital of AkzoNobel. PPG’s proposal substantially undervalues AkzoNobel and is not in the interest of its stakeholders, including its shareholders, customers and employees.

“Our Specialty Chemicals business is an industry leader in many of the markets in which it operates and we are extremely proud of its heritage, performance and people,” said Büchner. “We are reviewing strategic options to separate it from the company to create focus for both Specialty Chemicals and the Decorative Paints and Performance Coatings group, allowing them to build further on their respective leadership positions.”

“As stated at our full-year results announcement in February, we are now a leaner, more agile company with a solid financial and operational foundation and a focus on growth. AkzoNobel has enjoyed a record performance in recent years in terms of profitability and has made significant strategic progress, allowing us to take this decision.”

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel is active in the fields of decorative paints, performance coatings and specialty chemicals and employs approximately 45,600 people (including its Specialty Chemicals business) in more than 80 countries.  Mature Europe comprises 36 percent of the companies revenue, Asia Pacific 27 percent, North America 17 percent, Latin America 10 percent, emerging Europe 7 percent and other countries 3 percent.

“Although conditions were challenging during the year – with many markets and regions experiencing varying degrees of volatility and uncertainty – we made significant progress towards our vision of leading market positions delivering leading performance,” said Ton Büchner, CEO of AkzoNobel. “We are now a stronger, leaner, more agile company. We have new operating models in place; we’ve refined our portfolio; our factory footprint has been optimized; a continuous improvement culture is being initiated and there’s continued focus on operational excellence. In addition, our ability to successfully commercialize innovation remains strong, we continue to lead the way in terms of sustainability and our Human Cities initiative has evolved and continues to grow and thrive. All of this contributed to our performance, which saw us successfully achieve our 2015 financial targets.”

Decorative Coatings Segment: Full-year operating income increased by 39 percent as a result of the new operating model, lower costs, reduced restructuring expenses and currency developments. Revenue was up 3 percent due to favorable currencies offsetting adverse price/mix and volumes. Volumes were down 1 percent overall for the full-year, with positive developments in Asia offset by Latin America and Europe.

Protective Coatings Segment: Full-year operating income was up 45 percent, due to performance improvement initiatives, management delayering, lower costs, reduced restructuring expenses and currencies. Revenue was up 7 percent, driven by favorable price/mix and currencies offsetting lower volumes. Volumes were down 2 percent across the segments, impacted by lower demand in Brazil and ongoing spending declines in the global oil and gas industry.

AkzoNobel’s pioneering methodology for rewarding ship owners who use sustainable hull coatings has been named Environmental Leader Product of the Year for 2016. The award recognizes the introduction of the shipping industry’s first carbon credits methodology, which was developed by the company’s Marine Coatings business.

“Let’s Colour” Program 

“Let’s Colour” is an employee-led community program, which is based on AkzoNobel’s belief in the transformative power of color. The company donates paint and organize projects for community groups, charities and individuals who have the desire and determination to make a difference through color. By revamping gray and unappealing spaces into bright and colorful environments, AkzoNobel’s goal is to bring happiness to the lives of people everywhere.

As part of AkzoNobel’s Human Cities initiative, the “Let’s Colour” program highlights the important role color can play in making cities more vibrant, inspiring and human.

In August, for example, 450 volunteers took part in one of the biggest “Let’s Colour” events ever staged by the company’s Decorative Paints business. Around 20,000 liters of Coral (AkzoNobel’s paint brand in Brazil) was used to transform more than 300 buildings in Rio de Janeiro’s famous Santa Marta favela. Education is also a key component of the “Let’s Colour” program. This is achieved through paint apprenticeships, which combine the desire to bring color to communities – via schools, hospitals and other public places – with a commitment to train local people (often from disadvantaged backgrounds) in the skills of painting and decorating.

During 2015, AkzoNobel donated more than 115,000 liters of paint, worth an estimated €0.5 million. Approximately 1,000 AkzoNobel employees were involved, volunteering more than 8,000 hours of their time to various “Let’s Colour” projects across the globe. The company also trained 4,250 people in painting and estimate that they positively impacted the lives of around five million people in  2015.

Markets Served: Decorative paints, Marine and protective coatings, Auto and specialty coatings, Industrial and powder coatings

AkzoNobel is active in the fields of decorative paints, performance coatings and specialty chemicals and employs approximately 49,600 people (including its Specialty Chemicals business).  Akzo Nobel N.V. reported positive volume growth and an improvement in return on sales (ROS) for the full-year 2014. Excluding incidentals, ROS was 7.5 percent (2013: 6.1 percent).

Decorative Paints successfully implemented a new operating model in Europe. Volumes for the full year were up one percent with a positive volume development in Asia. Revenue declined six percent compared with 2013 due to divestments, adverse currency effects and an adverse price/mix effect. Q4 revenue was down one percent, mainly driven by the sale of the German stores, which offset three percent revenue growth in Asia and six percent revenue growth in Latin America. Operational results clearly improved.

Performance Coatings continued to profit from operational improvements and successfully introduced a new organizational structure with fewer management layers. Volumes for the full year were up one percent, mainly from growth in Marine and Protective Coatings and Powder Coatings. Revenue was flat compared with the previous year due to adverse currencies. Q4 revenue was up four percent on 2013 due to favorable currencies and price/mix, with four percent revenue growth in Powder Coatings and eight percent revenue growth in Marine and Protective Coatings.

AkzoNobel Performance Coatings is investing approxinately $3.4 million to expand its research and development facilities in Houston, Texas. The upgraded facility will support the company’s Protective Coatings, Marine Coatings and Specialty Coatings businesses. Completion is due in early 2016.

The expanded facility will be able to house up to 35 laboratory staff, with 30 skilled technologists employed initially. Key capabilities will include a dedicated area for experimental paint making, a modern paint application laboratory and environmentally controlled drying areas for conditioning of test panels.

Key Developments 2014

New Products Launched

• Launched the first ‘Picture it before you paint it” app.
• Introduced methodology for ships to generate carbon credits for CO2 emission reduction.
• Launched Human Cities initiative, which is designed to engage with the challenges and opportunities of the 21st century city through color, heritage, transport, education, sport and leisure and sustainability.
• Opened a new Decorative Paints site in Chengdu, part of a €50 million investment to build manufacturing facilities for both paint and powder coatings, strengthening its position as a leading player in China’s vehicle refinishes and commercial vehicle OEM markets.
• Developed breakthrough coatings to create the world’s first 100 percent recyclable and compostable paper cup.
• Dulux Weathershield KeepCool can drastically reduce the amount of heat being transferred to the interior of a house or building, resulting in major energy savings.
• Launched an innovative, bright metallic powder coating that provides a sustainable and cost-effective alternative to chrome plating. Interpon Cr, part of AkzoNobel’s Interpon powder coatings range, combines a chrome-like finish with the proven performance of a two-coat powder coating for applications such as furniture, lighting and other interior fixtures.

Markets Served: Decorative paints, Marine and protective coatings, Auto and aerospace coatings, Industrial coatings, Powder coatings

AkzoNobel is active in the fields of decorative paints, performance coatings and specialty chemicals and employs approximately 49,600 people (including its Specialty Chemicals business).  The company reported coatings sales of $13.3 billion for 2013. The company has successfully completed its multi-year performance improvement program a year ahead of schedule, exceeding its targets in doing so. In 2014, AkzoNobel will continue to restructure to reduce costs further and anticipates related restructuring charges of at least $342 million.

“We indicated at the start of 2013 that trading conditions would continue to be challenging and that has proven to be the case,” CEO Ton Büchner stated in its Annual Report. “In response we accelerated our company-wide improvement actions and have brought our performance improvement program to a successful conclusion a year ahead of schedule and above target. While the first half of 2013 was impacted by weaker trading conditions and specific one-off events in Specialty Chemicals, the second half has shown early signs of stabilization in several end markets. In combination with our restructuring actions this positive effect has been evident in our improving return on sales in the third and fourth quarters, despite foreign currency headwinds. In 2014, we will continue to improve our ability to leverage our strong brands and leading market positions.”

Decorative Paints full-year revenue was $5.71 billion, down 3 percent as a result of adverse currency effects and divestments. Global volumes for the year were up 3 percent, with increases in all regions except Europe, which remained flat in a reflection of difficult trading conditions. The pick-up in overall volumes was particularly noticeable in the second half of the year; Q3 and Q4 volumes were each up 5 percent compared with the prior year. Margins improved as a result of strong margin management and lower raw material prices. Performance improvement and restructuring measures led to a lower cost base, which, combined with lower restructuring charges, drove operating income above the previous year, before the divestment gain on Building Adhesives.

Full-year revenue at Performance Coatings, which includes auto and aerospace coatings, powder coatings, marine and protective coatings, and industrial coatings, was $7.63 billion, a 2 percent decline on flat volumes as adverse currency effects outweighed a positive price/mix development. Volumes gradually improved throughout the year to be flat overall, and up 2 percent in Q4. Margins were maintained despite higher restructuring costs. Operating income for the year as a whole was down 3 percent, with underlying improvements offset by higher restructuring charges as well as adverse currencies. Restructuring activities were accelerated in the fourth quarter, with the intended closure of seven sites worldwide being communicated.

AkzoNobe improved its return on sales in the third and fourth quarters and report that they remain on track to deliver its 2015 targets. “Key profitability ratios and cash flow also improved, while the receipt of funds from the divestments of our Decorative Paints North America and Building Adhesives businesses meant that we did not need to refinance borrowings, which helped us to improve our net debt position at year-end,” Büchner added. “Capital expenditures were reduced, reflecting the completion of many of our longer term strategic investment programs, while operating working capital further declined.”

Key Developments 2013

New Products Launched

• Decorative Paints: Launched Coral Coralit Zero in Brazil, a water-based trim paint
• Decorative Paints: Launched the Dulux Ambiance range in China, a zero-VOC range of paint
• Marine Coatings: Launched Intersleek 1100SR and Intercept 7000/8000, fouling control coatings
• Marine Coatings: Launched the Nautical product range, a value brand for the private label market
• Automotive Coatings: Launched Sikkens Autowave 2.0, a low VOC waterborne basecoat
• Powder Coatings: Launched Interpon D2525 Eternity range, a heat-reflective coating for buildings
• Powder Coatings: Launched Interpon Align, dry-on-dry coatings technology to improve productivity and lower energy consumption

Recent Divestitures

• Completed divestment of Decorative Paints North America
• Divested Building Adhesives, a standalone sub-business unit with Decorative Paints
• Divested the Decorative Paints store network in Germany