how has the global recession impacted
AkzoNobel’s powder coatings business?
How would you characterize the effects on
certain regions (NA, Western Europe,
Eastern Europe, Asia, etc.)?
Molenaar: The global industrial coatings market has seen a major decline,
well in excess of 30%. Some regions,
such as Europe, have seen even bigger
declines due to lower demand in some
of the segments in which we operate,
like consumer durables, automotive
and construction.
CW: What can we expect moving
through the next few quarters from
AkzoNobel Powder Coatings? Describe
AkzoNobel’s strategy for navigating
these turbulent times in addition to
the planned acquisition of the Dow
powder coatings business?
Molenaar: AkzoNobel signed an agreement to acquire Dow’s Powder Coatings
business on November 12, 2009. The
transaction is subject to customary
closing conditions, including regulatory
approvals, and is expected to close during the second quarter of 2010. The economic landscape seems to be improving
so we are excited about the possibilities
the combination creates for 2011 and
beyond.
CW: What is your outlook for continued growth in powder coatings segment in the coming years, and how
will AkzoNobel play a role in helping
that growth? What are your predictions for the powder coatings market
in the short-, mid- and long-terms?
Molenaar: The growth of the industrial
coatings market will very much depend
on the economic prosperity of the different regions around the world. It is obvious that our rate of growth in the emerging markets will be higher then in the
developed markets of the U.S. and
Europe. The continued growth of powder
coatings will largely depend upon technology development facilitating the
switch from liquid to powder. Clearly for
both plastic and wood this means curing
through a different medium or at lower
temperatures. With the acquisition of
Dow’s powder coatings unit AkzoNobel
demonstrated it’s commitment to the
industrial coatings market and its confidence in powder coatings as a technology.
