Akzo Nobel China Ready to Soar after Year of Transformation   

By Lily Wang   

Akzo Nobel, a Fortune 500 coatings and specialty chemicals company, is well positioned for strong growth, especially in emerging markets such as China, after going through a year of successful transformation, its senior executive said on March 25th.
   Akzo Nobel reported 5% autonomous growth and a 29% rise in net income before incidentals for 2007. Revenue for the year amounted to EUR 10.2 billion (excluding ICI), up 2% year-on-year, with notable contributions from emerging markets. Its China operations reported revenue of US$1 031 million for 2007, a year-on-year increase of 16% from 2006 revenues of US$887 million.
   Anders Brostroem, President of Akzo Nobel China, said, "Akzo Nobel has undergone a major strategic transformation, and its China operations have expanded substantially. Akzo Nobel's financial results clearly show that it has maintained a strong operational focus throughout this year of transformation."
   Over the last few months, Akzo Nobel completed its acquisition of ICI and the divestment of Organon BioSciences. As a result, the company has transformed itself from a conglomerate into a highly focused coatings and specialty chemicals company that is positioned for accelerated growth.
   The acquisition of ICI by Akzo Nobel means that the company will now be a major player in the Chinese decorative coatings market. Akzo Nobel is now the world's number one decorative coatings manufacturer.
   Akzo Nobel's momentum in China has been accelerating since 2007. In June 2007, the company opened a new polysulfides production plant in Taixing of Jiangsu province which is adjacent to its existing MCA (monochloroacetic acid) facility. China is regarded as the fastest-growing polysulfides market in the world. Akzo Nobel also opened a new Decorative Coatings site in Langfang, northern China, to boost its presence in the country's lucrative coatings market.
   In the same month, Akzo Nobel staged a Board of Management meeting in China, which confirmed the strategic importance of this market to the company.
   In March 2008, construction on a new chelates plant in Ningbo began. The new plant is scheduled for startup in 2009. In addition, a new ethylene amines is expected to be operational in the Ningbo site by 2010. The EURO 250 million project - located in the Ningbo Chemical Industry Zone - also includes a third production line for cellulosic specialties. (CCR2008 No. 8)
   In 2008, Akzo Nobel China operations will work rigorously to move forward to the aforementioned revenues target of US$2 billion by 2012. The integration of ICI will make a significant contribution to meeting the new target.