AkzoNobel plans to phase out chemicals production at Deventer (NL) by 2016, site to focus on R&D in future

GlobeNewswire Europe

August 30, 2013

AkzoNobel today announced plans to phase out the production of organic peroxides at its site in Deventer, the Netherlands by the end of 2016. Under the plans, the production activities currently carried out in Deventer will be moved to other existing production facilities in Europe, North America, and China over the next 3 years. The intention to stop production in Deventer will impact approximately 215 employees at the site.

While AkzoNobel intends to phase out the production of chemicals at Deventer, the site`s regional R&D and state-of-the-art Technology Center will remain in full operation, employing approximately 235 personnel.

The production facility on the Deventer site is one of eleven organic peroxide manufacturing plants operated globally by AkzoNobel. Organic peroxides are part of the company`s Functional Chemicals portfolio within the Specialty Chemicals Business Area. The chemicals are used by AkzoNobel`s customers in applications in, among others, the automotive, rubber, packaging and polymers industry and construction and consumer product sectors. 

"Global demand patterns for organic peroxides are trending away from mature markets in Europe and becoming increasingly concentrated in Asia and North America," said Werner Fuhrmann, AkzoNobel Executive Committee member responsible for the Specialty Chemicals business.

At the publication of its half-yearly results on July 18, AkzoNobel announced a step-up in restructuring activities to increase savings in 2014 and beyond, over and above the existing € 500 million Performance Improvement Program which will be completed by the end of 2013, a year early.

Today`s announcement is part of this drive and is aimed at increasing efficiencies and productivity, thereby improving performance in its global manufacturing footprint, and takes account of trends in its end-user market segments. 

"The organic peroxides market also faces over-capacity," continued Fuhrmann. "Consolidating production and following demand will lead to lower costs to serve our customers, improving our competitiveness and performance."

AkzoNobel does not expect the plans to have any impact on existing customers. To ensure a smooth transition of the product lines to the other facilities and other transitional activities, including facilitating the personnel concerned in finding new employment, the planned process of phasing out production at the site will be carried out over a three-year period.   

AkzoNobel is consulting with the employee works councils and labor unions.
- - -

AkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals. We supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well-known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are consistently ranked as one of the leaders in the area of sustainability. With operations in more than 80 countries, our 50,000 people around the world are committed to delivering leading products and technologies to meet the growing demands of our fast-changing world.

Not for publication - for more information

Corporate Media Relations, tel. +31 20 502 7833           Corporate Investor Relations, tel. +31 20 502 7854
Contact: Stephen Hufton                                           Contact: Jonathan Atack and Pauline Mulder

Pdf file AkzoNobel press release

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Akzo Nobel NV via Thomson Reuters ONE



View Comments (0)