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AkzoNobel to Shutter Dutch Plant

Tuesday, September 3, 2013

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AkzoNobel will phase out a chemical plant in the Netherlands as the paint and coating maker's markets shift from Europe to Asia and North America, the company announced Friday (Aug. 30).

Located in Deventer, the Netherlands, the organic peroxide facility will cease production by the end of 2016; meanwhile, production will be shifted to other existing AkzoNobel facilities in Europe, North America and China, the company said.

Part of the company's Functional Chemicals portfolio within the Specialty Chemicals Business Area, organic peroxides are used in automotive, rubber, packaging, polymer, construction and consumer applications.

AkzoNobel Specialty Chemicals

AkzoNobel announced plans on Friday to phase out production of organic peroxide at its Deventer facility in the Netherlands.

The Deventer site is one of 11 organic peroxide manufacturing plants operated by AkzoNobel worldwide. The closing will affect about 215 employees.

The site's regional R&D and Technology Center, which employs about 235 people, will remain in operation, the company said.

Dwindling Demand

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

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

In July, along with its second quarter and half-yearly results, AkzoNobel announced that it would step up restructuring activities to increase savings in 2014 and beyond. Closing the Deventer plant is part of this drive, the company says, and is aimed at increasing efficiencies and productivity.

The company does not expect the production shift to affect customers.

Headquartered in Amsterdam, the Netherlands, AkzoNobel has operations in more than 80 countries. The company manufactures performance coatings, decorative paints and specialty chemicals. The company's vast portfolio includes Dulux, Sikkens, International Paint and Eka.


Tagged categories: AkzoNobel; Construction chemicals; Polymers; Specialty functions

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