AkzoNobel Announces Management Restructure for Paints and Coatings Business

AkzoNobel NV announced a new management structure for its paints and coatings business in advance of creating two focused high-performing businesses; paints and coatings and speciality chemicals.

The new, fully integrated, management structure will increase customer focus, drive further operational excellence, and build greater momentum and speed across the business. It will be based on four regional paints business units and four integrated Coatings business units with full profit and loss responsibility. The businesses will be served by a world-class integrated supply chain organization enabling accelerated efficiencies.

In addition, the company is implementing a range of measures to mitigate current market challenges. These challenges include unfavourable foreign exchange rates, continued headwinds for the marine and protective coatings industry, temporary disruption to the manufacturing and supply chain during the third quarter and current margin pressure from greater than expected raw material cost inflation.

The new management structure and additional measures are being implemented to ensure ongoing delivery of the AkzoNobel 2020 financial guidance, as announced in April 2017 (15 percent return on sales and >25 percent return on investment for paints and coatings).

The separation of speciality chemicals remains on track for April 2018.

“Current challenges in the paints and coatings markets are having a wider and greater impact as the year continues and we are dealing with this head-on. Our new management structure will increase customer focus, drive further operational excellence, and build greater momentum and speed,” said Thierry Vanlancker, CEO AkzoNobel.

“AkzoNobel is delivering growth and the organizational changes we are making will pave the way for the creation of two focused businesses. These changes will help us deliver a stronger 2017 than 2016, despite dealing with current market challenges, and help to ensure we achieve our 2020 financial guidance,” added Vanlancker.