AkzoNobel Powder Coatings has strengthened its position in Africa with the purchase of 100 percent of its longtime joint venture with Freeworld Coatings.
The deal ends a 40-year “mutually beneficial relationship” between AkzoNobel Powder Coatings South Africa (Pty) Ltd and Freeworld Coatings (through its Plascon subsidiary), the companies said in a statement. Freeworld has more than 29 subsidiaries in Africa and Asia.
|With more than 32 factories, AkzoNobel Powder Coatings is the world’s largest producer of powder coatings. |
The transaction follows Freeworld’s hostile takeover by Japan’s Kansai Paints.
AkzoNobel said the deal underscored its commitment to developing business in the African continent. The company’s Powder Coatings unit is the world’s biggest powder coatings producer.
“This acquisition highlights our confidence in this important market, and South Africa is strategically well located for us to continue and to expand on the excellent work we are doing in Africa,” said AB Ghosh, AkzoNobel Powder Coatings Managing Director.
The deal “will bring value to AkzoNobel customers by allowing the company to leverage scale across all of its businesses present in the region.”
AkzoNobel manufactures powder coatings at 32 factories worldwide. Powder coatings “offer an attractive alternative to liquid coatings due to the fact that they are inherently sustainable,” the company says. “They contain no solvents and have application efficiency levels as high as 99 percent.”