PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Sherwin-Williams


Coatings Industry News

Main News Page


AkzoNobel Plans Global Restructuring

Friday, October 4, 2013

Comment | More

Having wrapped the sell-off of major segments of its architectural coatings division, AkzoNobel has announced plans to aggressively reorganize and streamline the rest of the business by the end of the year.

The company is promising a "streamlined management structure" and lean "new operating model" for its Decorative Paints division beginning Jan. 1, 2014.

Early details are few, but the goal is to build a "more competitive Deco business" in Europe and "high-growth markets" following the billion-dollar sale of its North American Decorative Paints unit to PPG Industries earlier this year, the Dutch-based paint and coatings multinational announced Wednesday (Oct. 2).

AkzoNobel - Brazil
Photos: AkzoNobel

AkzoNobel's Decorative Paints unit will focus on Europe and high-growth markets like Brazil (pictured).

The restructuring announcement was the latest jolt to the company's Decorative Paints division, which includes architectural coatings, wood-care and specialty products, and "pre-deco" products such as sealants and putties.

The business has had a tumultuous year, in addition to the North American deal.

Sales and Deals

In June, the Decorative Paints business announced plans to divest its 72 German paint stores to independent wholesale distributors; that plan then prompted another announcement about streamlining German operations.

In August, the company said it would sell off its Building Adhesives business, a standalone business within Decorative Paints, to Sika AG for €260 million ($353 million USD).

Completion of the Sika deal, announced Tuesday (Oct. 1), cleared the way for the business's worldwide reorganization announced the next day.

'More Agile and Competitive'

"The planned changes represent the critical next phase in simplifying the organization and making it more agile and competitive...," AkzoNobel said in its announcement.

The changes, due to take effect Jan. 1, are aimed at creating a "leaner organization," said Ruud Joosten, the company's Executive Committee member responsible for Decorative Paints.

The moves will include "reducing the number of senior management teams" and collapsing the business's eight regions into five: North and Central Europe, South East Europe and Africa, India and South East Asia, Latin America, and China and North Asia.

In addition, the company will centralize a number of key global functions—human resources, research and development, supply chain, finance, sourcing and information management—in order to "bring about significant cost savings and efficiency benefits," AkzoNobel said.

Sika AG

AkzoNobel has closed the $353 million sale of its Building Adhesives business to Sika AG.

The company currently has 55,000 employees across 80 countries. In 2005, the Decorative Paints sector accounted for more than 45 percent of the company's sales.

Strategic Ambitions

"We divested our North American activities to focus on key markets in Europe and the world's high-growth regions, and this intended reorganization of our management set-up and operating model is a major step towards reducing complexity and making us stronger," said Joosten.

"Our intention is to put in place a structure which fits our strategic ambitions for the business and will help propel us towards achieving a level of profitable growth in line with our 2015 targets."

Ruud Joosten

The company wants a "leaner organization" as of Jan. 1, said Executive Committee member Ruud Joosten.

Streamlining the organization "will also make us better equipped to build our brands, increase market penetration and become more competitive," he added.

Although it did not estimate a potential number of layoffs or site closings, the company warned that the impending changes would "involve a number of potential relocations" and said it was currently meeting with its labor councils to map specific changes.

   

Tagged categories: AkzoNobel; Architectural coatings; Business management; Business operations; Decorative painting

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Mitsubishi Gas Chemical America
 
Performance Amine 1,3-BAC
 
A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.
 

 
Jotun Paints Inc.
 
Jotun Jotachar 1709
 
Mesh-free passive fire protection epoxy designed to protect against hydrocarbon pool fire scenarios for up to four hours as defined in the ANSI/UL1709 standard.
 

 
BASF
 
New resins from BASF will have metals loving water!
 
Excellent corrosion resistance, low VOC, high gloss, thin films www.basf.us/industrialcoatings dpsolutions@basf.com 800-231-7868
 

 
Tarps manufacturing, Inc.
 
QUALITY MADE IN AMERICA —Available near you!
 
CLICK to get a behind-the-scenes look at how Tarps Manufacturing makes the highest-quality tarps right here in the USA — available nationwide.
 

 
Carboline Company
 
New product: Carbozinc® 608 HB
 
Introducing a new high build zinc-rich primer that can save you time and money by eliminating the epoxy intermediate coat!
 

 
HoldTight Solutions Inc.
 
Clean surfaces simply don't rust, and no other product cleans like HoldTight®
 
HoldTight® is a wet blasting additive that decreases the water’s surface tension, allowing it to get into the pores of the surface and remove ALL contamination, including salts, acids, abrasives, light oils, and greases. HoldTight® leaves behind zero unwanted residue, and evaporates with the water, providing a surface that is thoroughly clean and ready for a tightly adhered coating bond for up to 72 hours.
 

 
International Paint/AkzoNobel
 
Chartek 2218
 
Chartek 2218 is an epoxy PFP system for UL1709 installations offering one coat rapid cure application enabling improved production rates & reduce overall costs.
 

 
DeFelsko Corporation
 
PosiTector SST Soluble Salt Tester
 
Measures the concentration of soluble salts on metal surfaces. Use with all Bresle patch types including the reusable, adhesive-free PosiPatch.
 

 
SEMicro Division, M.E. Taylor Engineering, Inc.
 
Stop Guessing the Classification Rating of Your Cross Hatch Adhesion Testing Results
 
SEMicro's newly-patented Adhesion Testing Analyzer takes the guesswork out of cross hatch tape adhesion testing standards such as ASTM D3359 and ISO 2409.
 

 
SAFE Systems, Inc.
 
SAFE Systems'
Blast Lights &
Deadman Switches
 
Halogen or LED blast lights available with our NEW urethane bumper. Switches available in many colors for color coding your hoses.
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us