Akzo Nobel NV
amsterdam : AKZA

July 27, 2011 02:14 ET

AkzoNobel to acquire China's leading specialty surfactant producer

AMSTERDAM, NETHERLANDS--(Marketwire - Jul 27, 2011) - AkzoNobel plans to further strengthen its leadership position in specialty surfactants while enhancing its manufacturing footprint in Asia by acquiring Boxing Oleochemicals. Boxing is the leading supplier of nitrile amines and derivatives in China and throughout Asia.

Established in 1993 and based in the province of Shandong, Boxing had revenues in 2010 of approximately EUR100 million. Its activities will be integrated into AkzoNobel's Surface Chemistry business, a global leader in the manufacture and supply of specialty surfactants, synthetic and bio-polymers additives, used as formulation ingredients and process aids in many applications ranging from home and personal care to asphalt road paving. Demand in Asia for amines and derivatives is being driven by population growth, expanding middle class, increased focus on sustainability and the build-up of infrastructure, notably in China and India.

"This is an excellent opportunity which couples our strategic ambition to accelerate growth in Asia with our commitment to locate production closer to our customers," said Rob Frohn, AkzoNobel's Executive Committee member responsible for Specialty Chemicals. "Boxing's leading market position in amines will complement AkzoNobel's growing specialty surfactant business in Asia. The acquisition will also provide a strong local manufacturing operation in the region."

Added Bob Margevich, Managing Director of AkzoNobel Surface Chemistry: "The demand for amines and derivatives is expected to increase significantly over the next few years, with a third of the Asian demand for amines coming from China alone. We plan to enhance the process capabilities and increase capacity at the Shandong site by introducing our state of the art manufacturing technology. We will also introduce new products to the marketplace based on AkzoNobel's product and application knowhow."

The completion of the transaction is subject to closing conditions, including the approval of the Chinese authorities. It is expected to be finalized in the last quarter of 2011.

AkzoNobel currently employs over 6,700 people in China, with 2010 revenue totaling EUR1.3 billion. The majority of revenue is generated from local demand. The company's ambition is to achieve revenue of $3 billion in China by 2015.

- - -

AkzoNobel is the largest 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 a Global Fortune 500 company and are consistently ranked as one of the leaders in the area of sustainability. With operations in more than 80 countries, our 55,000 people around the world are committed to excellence and delivering Tomorrow's Answers Today™.

Surface Chemistry is a Business Unit of AkzoNobel, employing over 1500 people in 50 countries. In 2010, 45 percent of our global revenue (EUR847 million) came from eco-premium products. Based in Chicago, US, with regional marketing centers and R&D facilities in United States, Brazil, Singapore, India, China and Sweden, we are leading supplier of specialty surfactants and synthetic and bio- polymers additives. We serve a wide range of industries including home and personal care, agrochemicals , asphalt, mining, oilfield, and water treatment. For more information, visit www.akzonobel.com/sc.

Pdf file AkzoNobel press release: http://hugin.info/130660/R/1533628/467219.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

[HUG#1533628]

Contact Information

  • Not for publication - for more information

    Corporate Media Relations
    Contact: Tim van der Zanden
    Smits
    Tel: +31 20 502 78 33

    Corporate Investor Relations
    Contact: Huib Wurfbain, Ivar
    Tel.: +31 20 502 78 56