The decorative paints business unit recorded revenues of $7.376bn, which was up seven percent, with volumes up five percent and price increases up three percent. Revenue in Asia and the Americas showed double digit growth in 2011, mainly driven by price increases and the new Walmart contract in the United States. Demand declined in Europe, while growth rates achieved in China and South East Asia outpaced market growth. However, the pace of market growth slowed down in these markets in the second half of the year.
Revenue in the performance coatings unit, which includes auto and aerospace coatings, powder coatings, marine and protective coatings, industrial coatings, and wood finishes and adhesives, saw 2011 revenue rise eight percent to $7.200bn, supported by two percent volume growth, two percent growth through acquisitions and five percent rise in prices increases. Industrial coatings showed the largest volume increase, driven by good performances in packaging and coil coatings, while wood finishes and adhesives had lower volumes due to weaker demand in the housing market.
In 2011 AkzoNobel made several acquisitions and significant investments. In decorative paints it entered into a partnership in China with Quangxi CAVA Titanium Industry Co. Ltd. to help ensure supply of titanium dioxide (TiO2). In addition, it announced the investment of $153mn in a replacement manufacturing facility in the North East of England.
In performance coatings, the acquisitions of coatings manufacturer Schramm Holding AG and the coatings business operated by Schramm’s largest shareholder, Korean company SSCP, closed in early October.
The two deals made AkzoNobel a global leader in specialty plastic coatings for mobile devices, laptops and TVs. They also enhanced its position in the automotive industry with high-end, water-based technology for plastic and metal and will enable it to bring color and design to vehicle interiors. Significantly, more than half the combined revenues of Schramm and SSCP are in Asia—primarily China, Korea, Vietnam and Thailand—offering Akzo a major opportunity to boost its industrial coatings activities, particularly in these regions.
YEAR ESTABLISHED: 1994
REVENUE: $14.577 billion s (2010: 13bn)
• Decorative paints
• Marine and protective coatings
• Auto and aerospace coatings
• Industrial coatings
• Powder coatings
• Wood finishes and adhesives
Ton Büchner, chairman and CEO; Tex Gunning, board member responsible for Decorative Paints; Leif Darner board member responsible for Performance Coatings. Decorative Paints managing directors: Richard Stuckes, Europe; Bob Taylor, North America; Jaap Kuiper, Latin America; Jeremy Rowe, East Asia and Pacific; Amit Jain, India and South Asia; Lin Liangqi, China and North Asia.
Performance coatings managing directors: Rob Molenaar, marine and protective coatings; Jim Rees, automotive and aerospace coatings; Conrad Keijzer, industrial coatings; AB Ghosh, powder coatings; John Wolff, wood finishes and adhesives.
Key deveopments 2011
• Began supplying the first mainstream passenger vehicle line in the world to use a powder monocoat
• Inaugurated new research laboratories for fire protection technology and powder resin polymer in Felling, UK
• Acquired Schramm Holding AG and the coatings activities operated by Schramm’s largest shareholder, Korean company SSCP
• Announced investment in new automotive and aerospace coatings facility in Changzhou, China
• Started up a new plant in Vietnam operated by the wood finishes and adhesives business
• Opened a new powder coatings factory in Monterrey,
Mexico, and expanded a powder plant in Izmir, Turkey
• Launched the new global Dulux brand cluster identity
• Merged three European decorative paints businesses into one EMEA organization
• Completion of Walmart paint program in the US
• Opened and upgraded more than 720 stores in China
• State-of-the-art manufacturing facility commissioned in
• Zero waste production plant launched in South East Asia
• Coral confirmed as Brazil’s leading paint brand
• Consolidated long-standing relationship in Canada with major retailer RONA