fit for the future: akzo nobel

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OCTOBER 2006 7 FOCUS ON POWDER COATINGS materials in developing countries in the fields of energy, clean water, food, and health care. Emerging markets make up 80% of the global population, but account for just 20% of Rohm and Haas’s sales of $8 bn/y. R&H wants this to rise to 35% by 2010. The three core business groups will be electronic materials, specialty materials, and performance materials. The salt business (sales: $925 M) will still be run as a stand-alone operation. The non-profitable powder coatings business will also be managed on a stand- alone basis and will be made profitable or divested. Chemical and Engineering News, 16 Oct 2006, 84 (42), 8 (Website: http://www.cen- online.org) New US powder coatings headquarters: Akzo Nobel Akzo Nobel Powder Coatings is to establish its new North American headquarters in Nashville, TN, where the business already operates a manufacturing facility. The existing site, which employs around 125 people, will be expanded to include offices for general management, finance, customer service and purchasing personnel. Construction of a new state-of-the-art research and development facility, which will also be based at the site, has already started. Akzo Nobel is the worlds largest coatings company and its investment in Nashville demonstrates continued contribution to the US economy in R&D and job creation. Around 50 new jobs will be created. The new R&D facility, which is due to be completed by the end of 2006, will support architectural, furniture and appliance market sectors and will become the company’s Centre of Expertise for these sectors in North America. Akzo Nobel News and Views, 17 Oct 2006, (Akzo Nobel nv, PO Box 9300 6800 SB Arnhem, the Netherlands, tel: +31 26 3665760, fax: +31 26 3665850, website: http://newsandviews.akzonobel.com) Fit for the future: Akzo Nobel Akzo Nobel has announced strategic plans designed to accelerate profitable growth and drive the company’s ongoing commitment to establishing leadership positions in key coatings and chemicals markets around the world. It has developed a comprehensive, highly focused strategy for its Coatings/Chemicals activities, which will launch Akzo Nobel into an exciting new era. Having created room to manoeuvre, Akzo Nobel can now take full advantage, with innovations, acquisitions and greenfield investments being three of the key drivers for top-line growth. Organic growth, such as various expansions in China, and acquisitions, including the recent Coatings deals involving Sico and Flood, are the backbone of the company’s expansion strategy and are helping to create strong, profitable businesses. Over the next three years, Akzo Nobel intends to outpace growth in its chosen markets and is also aiming for an operational ROI (return on investment) of more than 20%, as well as maintaining its A- rating. Further reducing the cost base in mature markets by 100 M is an important element of this strategy. Akzo Nobel News and Views, 19 Oct 2006, (Akzo Nobel nv, PO Box 9300 6800 SB Arnhem, the Netherlands, tel: +31 26 3665760, fax: +31 26 3665850, website: http://newsandviews.akzonobel.com) MARKETS Chemical profile: neopentyl glycol The global capacity for neopentyl glycol (NPG), which has principal application in base resins used in coatings, totalled 485,000 tonnes/y in 2005, according to consultancy firm TranTech. Western Europe accounts for 173,000 tonnes/y of this capacity, while the USA, Asia Pacific region (excluding Japan), and Japan account for 140,000 tonnes/y, 134,000 tonnes/y, and 38,000 tonnes/y, respectively. Western Europe is the biggest consumer of the material, using up around 118,000 tonnes/y, trailed by the USA, Asia Pacific, Japan, Latin America, and the Middle East. Western Europe and the USA are the primary NPG exporters, with 2005 shipments reaching 31,000 tonnes/y and 16,300 tonnes/y, respectively. In 2005, the Asia Pacific region was a net importer by 5500 tonnes. Global NPG demand is estimated to increase by 3.1%/y through 2010. Consumption is expected to rise in most regions, most significantly in the Asia Pacific region at 6%. NPG demand for powder coating and synthetic lubricant applications is seen to expand by more than 5%/y through 2010. Iran based Shahid Rasuli will start up a 12,000 tonne/y facility in 2007. A JV was established by Mitsubishi Chemical and Mitsubishi Gas in Sep 2005 to manufacture and market polyvalent alcohols. The partners will most likely ramp up NPG capacity to 50,000 tonnes/y. A table shows global NPG capacity. Another table lists NPG applications. ICIS Chemical Business, 2 Oct 2006, (Website: http://icischemicalbusiness.com) Phoqus 1H 2006 losses narrow; sees development deals struck in 2006 Phoqus Group PLC admitted that progress in securing development deals for its pill coating technology has been slower than expected, as the company unveiled narrower interim losses after admin expenses dropped from 2005. Chief executive Andy Jones told that he is confident the group will manage to sign its first deal in 2006, saying a series of “encouraging” talks are taking place. The Kent-based group has a proprietary electrostatic coating technology, called LeQtracoat, based on so-called electrostatic dry powder deposition technology.

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Page 1: Fit for the future: Akzo Nobel

OCTOBER 2006 7

F O C U S O N P O W D E R C O A T I N G S

materials in developing countriesin the fields of energy, cleanwater, food, and health care.Emerging markets make up 80%of the global population, butaccount for just 20% of Rohmand Haas’s sales of $8 bn/y.R&H wants this to rise to 35% by2010. The three core businessgroups will be electronicmaterials, specialty materials, andperformance materials. The saltbusiness (sales: $925 M) will stillbe run as a stand-aloneoperation. The non-profitablepowder coatings business willalso be managed on a stand-alone basis and will be madeprofitable or divested.

Chemical and Engineering News, 16 Oct2006, 84 (42), 8 (Website: http://www.cen-online.org)

New US powder coatingsheadquarters: Akzo Nobel

Akzo Nobel Powder Coatings isto establish its new NorthAmerican headquarters inNashville, TN, where thebusiness already operates amanufacturing facility. Theexisting site, which employsaround 125 people, will beexpanded to include offices forgeneral management, finance,customer service and purchasingpersonnel. Construction of a newstate-of-the-art research anddevelopment facility, which willalso be based at the site, hasalready started. Akzo Nobel is theworlds largest coatings companyand its investment in Nashvilledemonstrates continuedcontribution to the US economyin R&D and job creation. Around50 new jobs will be created. Thenew R&D facility, which is due tobe completed by the end of2006, will support architectural,furniture and appliance marketsectors and will become thecompany’s Centre of Expertise forthese sectors in North America.

Akzo Nobel News and Views, 17 Oct 2006,(Akzo Nobel nv, PO Box 9300 6800 SBArnhem, the Netherlands, tel: +31 263665760, fax: +31 26 3665850, website:http://newsandviews.akzonobel.com)

Fit for the future: Akzo Nobel

Akzo Nobel has announcedstrategic plans designed toaccelerate profitable growth anddrive the company’s ongoingcommitment to establishingleadership positions in keycoatings and chemicals marketsaround the world. It hasdeveloped a comprehensive,highly focused strategy for itsCoatings/Chemicals activities,which will launch Akzo Nobel intoan exciting new era. Havingcreated room to manoeuvre, AkzoNobel can now take fulladvantage, with innovations,acquisitions and greenfieldinvestments being three of thekey drivers for top-line growth.Organic growth, such as variousexpansions in China, andacquisitions, including the recentCoatings deals involving Sico andFlood, are the backbone of thecompany’s expansion strategyand are helping to create strong,profitable businesses. Over thenext three years, Akzo Nobelintends to outpace growth in itschosen markets and is alsoaiming for an operational ROI(return on investment) of morethan 20%, as well as maintainingits A- rating. Further reducing thecost base in mature markets by€100 M is an important elementof this strategy.

Akzo Nobel News and Views, 19 Oct 2006,(Akzo Nobel nv, PO Box 9300 6800 SBArnhem, the Netherlands, tel: +31 263665760, fax: +31 26 3665850, website:http://newsandviews.akzonobel.com)

MARKETSChemical profile: neopentyl glycol

The global capacity for neopentylglycol (NPG), which has principalapplication in base resins used incoatings, totalled 485,000tonnes/y in 2005, according toconsultancy firm TranTech.Western Europe accounts for173,000 tonnes/y of this capacity,while the USA, Asia Pacificregion (excluding Japan), and

Japan account for 140,000tonnes/y, 134,000 tonnes/y, and38,000 tonnes/y, respectively.Western Europe is the biggestconsumer of the material, usingup around 118,000 tonnes/y,trailed by the USA, Asia Pacific,Japan, Latin America, and theMiddle East. Western Europe andthe USA are the primary NPGexporters, with 2005 shipmentsreaching 31,000 tonnes/y and16,300 tonnes/y, respectively. In2005, the Asia Pacific region wasa net importer by 5500 tonnes.Global NPG demand is estimatedto increase by 3.1%/y through2010. Consumption is expectedto rise in most regions, mostsignificantly in the Asia Pacificregion at 6%. NPG demand forpowder coating and syntheticlubricant applications is seen toexpand by more than 5%/ythrough 2010. Iran based ShahidRasuli will start up a 12,000tonne/y facility in 2007. A JV wasestablished by MitsubishiChemical and Mitsubishi Gas inSep 2005 to manufacture andmarket polyvalent alcohols. Thepartners will most likely ramp upNPG capacity to 50,000 tonnes/y.A table shows global NPGcapacity. Another table lists NPGapplications.

ICIS Chemical Business, 2 Oct 2006,(Website: http://icischemicalbusiness.com)

Phoqus 1H 2006 losses narrow; seesdevelopment deals struck in 2006

Phoqus Group PLC admitted thatprogress in securing developmentdeals for its pill coatingtechnology has been slower thanexpected, as the companyunveiled narrower interim lossesafter admin expenses droppedfrom 2005. Chief executive AndyJones told that he is confidentthe group will manage to sign itsfirst deal in 2006, saying a seriesof “encouraging” talks are takingplace. The Kent-based group hasa proprietary electrostatic coatingtechnology, called LeQtracoat,based on so-called electrostaticdry powder deposition technology.