2013-08-30 08:19:01 -
August 30, 2013
AkzoNobel today announced plans to phase out the production of organic peroxides
at its site in Deventer, the Netherlands by the end of 2016. Under the plans,
the production activities currently carried out in Deventer will be moved to
other existing production facilities in Europe, North America, and China over
the next 3 years. The intention to stop production in Deventer will impact
approximately 215 employees at the site.
While AkzoNobel intends to phase out the production of chemicals at Deventer,
the site's regional R&D and state-of-the-art Technology Center will remain in
full operation, employing approximately 235 personnel.
The production facility on the Deventer site is one of eleven organic peroxide
manufacturing plants operated globally by AkzoNobel. Organic peroxides are part
of the company's Functional Chemicals portfolio within the
Business Area. The chemicals are used by AkzoNobel's customers in applications
in, among others, the automotive, rubber, packaging and polymers industry and
construction and consumer product sectors.
"Global demand patterns for organic peroxides are trending away from mature
markets in Europe and becoming increasingly concentrated in Asia and North
America," said Werner Fuhrmann, AkzoNobel Executive Committee member responsible
for the Specialty Chemicals business.
At the publication of its half-yearly results on July 18, AkzoNobel announced a
step-up in restructuring activities to increase savings in 2014 and beyond, over
and above the existing € 500 million Performance Improvement Program which will
be completed by the end of 2013, a year early.
Today's announcement is part of this drive and is aimed at increasing
efficiencies and productivity, thereby improving performance in its global
manufacturing footprint, and takes account of trends in its end-user market
"The organic peroxides market also faces over-capacity," continued Fuhrmann.
"Consolidating production and following demand will lead to lower costs to serve
our customers, improving our competitiveness and performance."
AkzoNobel does not expect the plans to have any impact on existing customers. To
ensure a smooth transition of the product lines to the other facilities and
other transitional activities, including facilitating the personnel concerned in
finding new employment, the planned process of phasing out production at the
site will be carried out over a three-year period.
AkzoNobel is consulting with the employee works councils and labor unions.
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AkzoNobel is a leading global paints and coatings company and a major producer
of specialty chemicals. We supply industries and consumers worldwide with
innovative products and are passionate about developing sustainable answers for
our customers. Our portfolio includes well-known brands such as Dulux, Sikkens,
International and Eka. Headquartered in Amsterdam, the Netherlands, we are
consistently ranked as one of the leaders in the area of sustainability. With
operations in more than 80 countries, our 50,000 people around the world are
committed to delivering leading products and technologies to meet the growing
demands of our fast-changing world.
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