segments—accounted for approximately $6.16 billion.
DECORATIVE COATINGS
Under the Decorative Paints business
unit, Decorative Europe posted sales of
approximately $3.9 billion; Decorative
Americas $2.4 billion; and Decorative
Asia $917 million.
Across Europe the unit posted positive gains particularly in the UK,
Nordics, Baltics and Russia. Centenary
celebrations were held for the Balakom
brand in the Czech Republic. In product news, the high solids Sikkens
Rubbol XD range—introduced in the
Netherlands in 2006—was rolled out in
other European markets. In 2007 Akzo
also launched a second generation dirt
repellant exterior wall paint, Herbol
Symbiotic, in Germany (other countries
to follow in 2008).
In the U.S. Akzo has been busy integrating the Flood organization which
it acquired in 2006 into its existing
wood care activities and will look to
create growth in the large-scale outlets segment moving forward.
This was also the first year Akzo
reaped the benefits from the 2006 Sico
acquisition in Canada. Of particular
note, in 2007 Akzo launched the zero
emission Sico Design line.
In Asia Pacific Akzo continues to
develop business fragmented between
China, Indonesia Vietnam and Papua
New Guinea. In China, it opened a new
facility for paint products in Langfang,
which underlined its commitment to
growing in Asia.
In South America there was strong
development in the company’s wood
care position in Argentina where it is
the market leader with its Cetol brand.
INDUSTRIAL ACTIVITIES
The Industrial Activities segment of
AkzoNobel’s Performance Coatings
business unit accounted for approximately $2.7 billion in sales in 2007 and
includes the company’s industrial finishes and powder coatings operations.
While the business faced tough challenges in North America due to the U.S.
housing recession, it continued to invest
and achieve growth in the emerging
markets of China, Vietnam, India,
Russia, the Nordics and Eastern Europe.
In China construction began on another
production facility in Tianjn.
In North America the company did
finalize the acquisition of wood coatings manufacturer Chemcraft. Not
only did this deal broaden and
strengthen the company’s industrial
wood coatings portfolio, but gives it
access to Chemcraft’s distribution
areas in North America where it previously lacked a significant presence.
Akzo’s powder coatings business,
which is the largest in the world delivered solid results in 2007 and was active
particularly on the expansion front, relocating with its customers to Eastern
Europe and following the migration of
the U.S. industry base to China. The
company inaugurated a factory in
Moscow, expanded facilities in the Czech
Republic, increased capacity in Turkey
and opened a facility in Dubai. The powder business also opened a factory in
Chengdu in central China.
MARINE & PROTECTIVE COATINGS
The Marine and Protective Coatings
segment reported sales of approximately $1.7 billion in 2007 and
includes AkzoNobel’s Aerospace
Coatings activities. For the third year
in a row the segment achieved double-digit growth revenue.
Of particular note, during 2007
AkzoNobel’s Intersleek 700 antifouling
coating received the UK’s prestigious
Queen’s Award for Enterprise in the
Innovation category. The company also
opened a new R&D facility at Felling in
the UK and marked the centenary of
U.S. operations. Another key event was
the acquisition of the Ceilcote business
in the U.S. In addition, towards the end
of the year Akzo’s marine and protective
coatings business completed the construction of a new protective coatings
plant at Suzhou in China.
Grant Russell (right), International Paint’s
Marine & Protective Coatings market director is shown with the secretary of the
Queen’s Award Office at the Winner’s
Celebration on April 24, 2007 at the
Gladstone Library, London.
CAR REFINISHES
AkzoNobel’s Car Refinishes segment
posted sales of approximately $1.2 billion in 2007 and experienced growth
in all regions except its commercial
vehicles activities in North America.
Last year resulted in a record number
of aftermarket approvals with car
makers worldwide including Toyota,
GM, Ford, Hyundai and Skoda. The
refinish business also opened a number
of new facilities, including a polymer
research center in Sassenheim, the
Netherlands. In addition, it installed a
new automatic dispensing unit at
Pontiac, MI, which allowed it to complete the closure of its North Bruch
plant. The company was busy in India
as well, doubling the size of its research
facility in Bangalore.
