AkzoNobel announced today that Jonathan Atack has been appointed the company’s new Corporate Director Investor Relations. He will take up the position on October 1, 2011.

A British national, Atack was until recently Chief Financial Officer at ING Investment Management in the Netherlands. He has held several roles within ING since 2004 including positions in investor relations as well as finance and risk management. Prior to his time at ING, he worked in investor relations at easyJet, Royal Bank of Scotland and Six Continents.

“We are delighted to welcome Jonathan to AkzoNobel. His extensive experience at a variety of multinationals will bring valuable expertise to our team and further improve the professionalism of our investor relations,” said Keith Nichols, AkzoNobel’s Chief Financial Officer.

Atack holds a degree in Engineering Science from the University of Oxford and an MBA from London Guildhall University.

In line with the company’s growth ambition and the recent announcement to drive global performance improvement measures, AkzoNobel has announced country leadership and several business unit appointments.

• Lin Liangqi has been appointed President AkzoNobel China, in addition to his role as Managing Director of Decorative Paints China and North Asia.

• Jaap de Jong, previously a Principal at McKinsey & Company, has been appointed Regional Director Latin America and President AkzoNobel Brazil.

• Amit Jain remains Group Managing Director for India, in addition to his role as Managing Director of Decorative Paints India and South Asia.

The appointment of the country leaders coincides with several leadership changes within the company’s businesses.

• Bob Taylor, currently Managing Director of AkzoNobel Marine and Protective Coatings (M&PC), will become Managing Director of Decorative Paints North America.

• Rob Molenaar will move from AkzoNobel Powder Coatings to become the new Managing Director of M&PC.

• AB Ghosh, currently Director of the Automotive and Aerospace Coatings Americas business, will succeed Rob Molenaar as Managing Director Powder Coatings.

“These appointments strengthen the company’s senior leadership in key markets. The leadership changes will capture growth and business opportunities, and will help drive a common agenda across AkzoNobel,” said Marjan Oudeman, AkzoNobel’s Executive Committee member responsible for Organizational Development and HR.

AkzoNobel plans to further strengthen its leadership position in specialty surfactants while enhancing its manufacturing footprint in Asia by acquiring Boxing Oleochemicals. Boxing is the leading supplier of nitrile amines and derivatives in China and throughout Asia.

Established in 1993 and based in the province of Shandong, Boxing had revenues in 2010 of approximately €100 million. Its activities will be integrated into AkzoNobel’s Surface Chemistry business, a global leader in the manufacture and supply of specialty surfactants, synthetic and bio-polymers additives, used as formulation ingredients and process aids in many applications ranging from home and personal care to asphalt road paving. Demand in Asia for amines and derivatives is being driven by population growth, expanding middle class, increased focus on sustainability and the build-up of infrastructure, notably in China and India.

“This is an excellent opportunity which couples our strategic ambition to accelerate growth in Asia with our commitment to locate production closer to our customers,” said Rob Frohn, AkzoNobel’s Executive Committee member responsible for Specialty Chemicals. “Boxing’s leading market position in amines will complement AkzoNobel’s growing specialty surfactant business in Asia. The acquisition will also provide a strong local manufacturing operation in the region.”

Added Bob Margevich, Managing Director of AkzoNobel Surface Chemistry: “The demand for amines and derivatives is expected to increase significantly over the next few years, with a third of the Asian demand for amines coming from China alone. We plan to enhance the process capabilities and increase capacity at the Shandong site by introducing our state of the art manufacturing technology. We will also introduce new products to the marketplace based on AkzoNobel’s product and application knowhow.”

The completion of the transaction is subject to closing conditions, including the approval of the Chinese authorities. It is expected to be finalized in the last quarter of 2011.

As part of its ongoing communications with its key stakeholders, Akzo Nobel N.V. (“AkzoNobel”) today provides a trading update.

AkzoNobel confirms that revenue development year-to-date has met the company’s expectations, but that results for the second quarter will be adversely impacted by ongoing challenging trading conditions and one-off factors.

Recent performance has continued to be impacted by further raw material price inflation in Q2 and, as a result, sequential second quarter contribution margins are expected to be flat compared with Q1. Year-on-year raw material prices are estimated to be around 20 percent higher.

In addition, continued softness of demand in our mature markets and prolonged maintenance stops within Specialty Chemicals will also impact results in the second quarter. These factors lead to an expected second quarter EBITDA of around €550 million.

AkzoNobel expects full-year 2011 EBITDA to be at least in line with the prior year, assuming no further deterioration in economic conditions.

CEO Hans Wijers commented: “We are on track in terms of our medium-term growth ambitions. Our revenues for the first half will illustrate this as they are expected to be ahead of full-year guidance, driven by positive price and volume development.

“Ongoing actions to mitigate raw material price inflation, company-wide cost containment actions, our continuing successful progress in turning around the performance of US Decorative Paints and continued encouraging growth in high growth markets, will all help mitigate the weaker-than-expected market conditions.”

We are pleased to invite you to listen to AkzoNobel's analyst conference call on June 27, 2011, which starts at 10.00 am (CET)

The Supervisory Board of Akzo Nobel N.V. (“AkzoNobel”) has today announced that Hans Wijers, Chief Executive Officer, has decided to step down with effect from the Annual General Meeting (AGM) 2012.

The Supervisory Board also announced the appointment of Ton Büchner as the company’s new Chief Executive Officer – pending AGM approval – with effect from the AGM 2012. Ton Büchner is currently President and Chief Executive Officer of Swiss publically-quoted multinational Sulzer AG.

Hans Wijers

Hans Wijers (age 60) joined AkzoNobel as Member of the Board of Management in October 2002, and was subsequently appointed CEO in May 2003. Having previously pursued a successful career as minister for economics in the Netherlands and within management consultancy, he quickly identified that the diversity of the company – the product of a history of mergers and acquisitions – was preventing the creation of long-term value for all stakeholders.

In his first few years, he improved the pipeline of the Pharma business, focused the Chemicals businesses and successfully grew Coatings. Following these strategic changes, he successfully led the transformation of the company by divesting its pharmaceuticals operations and acquiring ICI, effectively creating today’s AkzoNobel, the world leader in coatings and specialty chemicals.

Hans Wijers’ focus to deliver value for all stakeholders realized an improved track record in the area of sustainability, a more diverse and engaged workforce and a true global spread of the company’s operations. Under Hans’ leadership, AkzoNobel has recently embarked on a strategy of accelerated, sustainable growth aiming at €20 billion of revenues in the medium-term and year-on-year EBITDA growth.

“Hans has built a considerable legacy at AkzoNobel which bears testament to his skills as a leader and businessman,” commented Karel Vuursteen, Chairman of AkzoNobel’s Supervisory Board. “The transformation of the company from a diverse conglomerate in 2003 to a focused, global market leader in coatings, specialty chemicals and sustainability is due, in large part, to his vision and drive. He will leave behind a business which is both operationally and financially strong; capable of continuing to grow and to deliver real value to all stakeholders.”

Ton Büchner

Ton Büchner (age 45) has been Chief Executive Officer of Sulzer AG (“Sulzer”), a publically traded company on the Swiss Stock Exchange, since 2007. He joined Sulzer in 1994 and has held a number of operational and leadership roles across the company including the presidencies of two of its divisions, Sulzer Turbomachinery Services and Sulzer Pumps. He was also Chief Representative and responsible for Sulzer operations in China.

Ton Büchner has a proven track record for strategically developing and significantly growing the businesses he has managed, also under difficult market conditions. He started his professional career as an offshore oil and gas construction engineer with Allseas Engineering in Europe and worked for AkerKvaener throughout South East Asia for several years.

A Dutch national, Ton Büchner graduated from Delft University of Technology with an MSc in Civil Engineering and gained an MBA from the International Institute for Management Development (IMD), Lausanne, Switzerland.

“We are fortunate to have secured Ton Büchner as our new CEO. His proven strategic experience leading a public company, and his expertise in the global industrial arena make him the ideal candidate for this role,” said Karel Vuursteen. “He also has an excellent track record of delivering strong results and experience of leading businesses in high-growth markets. We look forward to Ton joining us in January and building on the strong foundations left by his predecessor.”

AkzoNobel has entered into a partnership in China with Quangxi CAVA Titanium Industry Co. Ltd. for the production and supply of titanium dioxide (TiO₂), one of the most important raw materials in the production of paints and coatings.

The collaboration – which includes the construction of a new TiO₂ plant in Qinzhou –   will help to secure AkzoNobel’s growing titanium dioxide raw material needs for the Asian market. Financial details were not disclosed.

Rapid growth is expected within the global coatings and paints market and most of this demand growth will occur in Asia, especially China. As a result, the regional demand for TiO₂ will also rise.

“By entering into this partnership with CAVA, we will enhance security of supply in Asia for a critical raw material,” explained Werner Fuhrmann, AkzoNobel’s Executive Committee member responsible for Supply Chain and Sourcing.

Quangxi CAVA Titanium Industry Co. Ltd. was recently established to produce titanium dioxide and is currently in the process of designing and constructing a 100,000 ton TiO₂ plant at an industrial site in Qinzhou. Production is expected to start in early 2014.

“This is a strategic partnership which offers huge potential to further integrate and expand our business portfolio,” commented Mr Ke Genxi, Chairman of CAVA Group. “I’m very pleased to partner with AkzoNobel and I’m sure that our 20 years of experience in ore operations, along with our own resources in this venture, will contribute to a successful collaboration.”

Titanium dioxide is by far the most widely used white pigment in the industry because of its brightness and opacity. Approximately five million tons of pigmentary TiO₂ are consumed annually worldwide, mainly in the coatings, plastics and paper industries.

AkzoNobel is the largest global paints and coatings company and currently employs around 6700 people in China, where revenue for 2010 totaled €1.3 billion. The majority of revenue is generated from local demand. The company has 27 manufacturing locations in China.

Akzo Nobel N.V. (“AkzoNobel”) has today announced its intention to seek agreement from the Board and shareholders of ICI Pakistan Limited (“ICI Pakistan”) to separate the organization’s paints and chemicals businesses.

Under the terms of the proposal, AkzoNobel would retain direct majority control of the paints business by separating it into a new legal entity (AkzoNobel Pakistan Limited) through a de-merger process approved by the Pakistani courts. Subsequently, AkzoNobel would dispose of its entire shareholding in the remainder of ICI Pakistan.

The entire ICI Pakistan business has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries PLC. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges, with AkzoNobel currently holding 75.8 percent of the total shares. Focusing primarily on the Pakistan market, ICI Pakistan’s main businesses are polyester fiber, soda ash, life sciences, chemicals and decorative paints. In 2010, ICI Pakistan’s revenue amounted to €305 million.

During the last few months, AkzoNobel has been conducting a strategic review of the businesses and it became evident that ICI Pakistan’s paints business would be of clear commercial benefit for the company. Although the remainder of the ICI Pakistan portfolio is made up of strong and promising businesses, they do not offer sufficient opportunity to create value within AkzoNobel’s transformed portfolio and future strategic ambitions.

AkzoNobel believes that in order to provide the best growth opportunities for the activities carried out by ICI Pakistan (apart from paints), it would be most beneficial for all concerned if the company was transferred to a new owner who could commit to investing and help to realize its full potential. Accordingly, AkzoNobel’s intention would be to seek a new owner for its shareholding in ICI Pakistan through a formal sale process once the paints business is separated.

The procedure for achieving this strategic change would involve a two-stage process. Initially, two companies would be created through a de-merger process approved by the shareholders of ICI Pakistan and sanctioned by the Pakistani courts. Both would be listed and AkzoNobel would own 75.8 percent of each. The business, assets and liabilities of the paint business would be called AkzoNobel Pakistan Limited. ICI Pakistan would comprise all of the remaining businesses, assets and liabilities.

Once the de-merger is completed, AkzoNobel would undertake the formal process of identifying an appropriate buyer for its shareholding in ICI Pakistan.

AkzoNobel is to invest more than €60 million in boosting production capacity for its Bermocoll cellulose derivatives (paint and building material thickeners), providing additional momentum for the company’s accelerated growth strategy which includes doubling revenue in China to $3 billion by 2015.

As well as constructing a new facility at its Ningbo multi-site in China, the company will also debottleneck the existing manufacturing site in Örnsköldsvik, Sweden. The two projects will increase capacity to close to 40,000 tons per annum and elevate AkzoNobel to a global leadership position.

“This investment is all about meeting rapidly increasing customer demand and seizing an ideal opportunity to become market leader by establishing production in Asia,” explained Rob Frohn, AkzoNobel’s Board member responsible for Specialty Chemicals. “High growth markets are central to our growth strategy and adding a second production unit for Bermocoll in Ningbo will add further impetus to our ambition to double revenue in China by 2015.”

The debottlenecking project in Sweden is due to be completed by the end of this year. The majority of the investment, however, has been earmarked for the new plant in Ningbo, where the company’s Functional Chemicals business already operates facilities for chelates, ethylene amines and ethylene oxide. An organic peroxides facility is also due to come on stream in 2011. The new Bermocoll unit should be on stream in early 2013 and the funding allocated for this facility will bring the total investment in Ningbo to more than €320 million.

“Ningbo is the ideal location for the new facility as the infrastructure is already in place and we have access to on-site production of ethylene oxide, as well as being close to other key suppliers,” added Managing Director of AkzoNobel Functional Chemicals, Jan Svärd. “The fact that Asia is the world’s fastest-growing market also means that building the plant in China makes perfect strategic sense.”

Based on a natural polymer, the company’s cellulose derivatives are sourced from wood pulp or cotton linters. The main application areas are water-based paints, building additives and pharma/healthcare.

AkzoNobel currently employs around 6,700 people in China, with revenue for 2010 totaling €1.3 billion. The majority of revenue is generated from local demand. The company now has 27 manufacturing locations in China.

AkzoNobel has today published its 2010 Report. The Report, which combines its annual and sustainability reports, will be available for the first time as an iPad application, as well as online. The printed version will be published during the week beginning March 14.

This year’s dedicated website and iPad versions build further on last year’s report concept, and contain full details of the company’s financial and sustainability performance.

Visitors to the online version will discover an improved content structure and toolbar functionality. The dedicated website will also include intuitive navigation, customizable graphs and downloadable financial information in Excel format.

Last year, AkzoNobel’s report was ranked number four in the ‘Annual Report on Annual Reports 2010’ listing, published by the independent report analyst, enterprise.com (e.com).

http://report.akzonobel.com/2010/

AkzoNobel has signaled its strategic intent to accelerate growth by investing close to €90 million in a new facility being built in Brazil. The plant, operated by the company’s Pulp and Paper Chemicals business, Eka Chemicals, will supply the world’s largest pulp mill.

The agreement – with Eldorado Celulose e Papel – emphasizes the importance of high growth markets to AkzoNobel and will help drive the medium-term strategy of doubling revenue in Brazil to €1.5 billion. It also underlines the value the company attaches to securing long-terms partnerships with customers.

The investment – AkzoNobel’s biggest ever in Latin America – is centered on further expanding Eka Chemicals’ sustainability focused Chemical Island concept. It will involve supplying, storing and handling all chemicals for the 1.5 million tons per year green field mill, which is being constructed in the northern part of Três Lagoas City. The mill is expected to come on stream in September 2012.

“This 15-year agreement confirms our intention to accelerate growth and expand our activities in the world’s high growth regions,” said Rob Frohn, the AkzoNobel Board member responsible for Specialty Chemicals. “We are about to make one of the biggest investments in our history, which emphasizes both the importance of Latin America to our growth ambitions and our commitment to the pulp and paper industry.”

Added Pulp and Paper Chemicals General Manager Jan Svärd: “Future demand for pulp and paper chemicals in Latin America is projected to increase substantially over the next 15 years. This agreement therefore represents an exciting opportunity for us to expand our operations in the region and further underlines the value our customers attach to our Chemical Island concept.” 

He went on to explain that Eka Chemicals will be building a world scale sodium chlorate production unit to supply the projected demands of the Eldorado mill, which has been designed to accommodate three pulp lines. The new Eka Chemicals facility will also supply other key customers in Brazil. Work on the new pulp mill site started in June last year.
 
Commenting on the agreement, Eldorado President Rogerio D’Alcantara Peres, said: “Building the world’s largest pulp mill requires working with reliable partners who can provide the best technology. AkzoNobel’s proven Chemical Island concept, together with the company’s world class expertise and strong commitment to sustainability, meant that they were a natural choice for this major project.”

The new facility will expand Eka Chemicals’ well established pulp and paper activities in Brazil, where the business already operates its Chemical Island concept at several mills, as well as running production units in Jacareí, Eunapolis, Três Lagoas, Rio de Janeiro and Jundiaí.