Coatings - AkzoNobel

We increased our shareholding in Astral Tunisia to
60 percent. Together with our strong base in Morocco,
this gives us an excellent platform for further growth in
North Africa, where Astral® is the leading coatings
brand.
To improve profitability a major restructuring program
was implemented in our South American operations,
which already started to pay off during the second half
of 1998.
The crisis in Asia prompted us to slow down efforts to
establish a presence in that region.
We successfully developed a complete range of topquality,
solvent-free wallpaints for indoor application.
For outdoor application our high solids and waterborne
lines represent the best available technology. Color
plays an important role in our company’s culture and
tradition. To commemorate the transition to the new
millennium we decided to launch new color collections
based on the choice of international experts in
architecture and design. In 1998, we introduced under
the Sikkens® brand a selection made by Sir Norman
Foster, the world famous architect. The Sikkens
Foundation conferred the 23rd Sikkens Award to
Professor John Gage for his investigation of the impact
and meaning of color in the history of western culture.
INDUSTRIAL COATINGS
Sales NLG 2,330 million (1997: NLG 2,180 million)
Until the end of 1998 the Industrial Coatings activities
were organized geographically. Industrial Coatings
Europe focused on the European and Middle East
markets, and on the development of powder coatings
activities in Asia. Industrial Coatings North America
was responsible for the Americas and concentrated on
the development of wood and coil markets in Asia
Pacific.
AKZO NOBEL ANNUAL REPORT 1998
35
COATINGS
In response to the globalization of the market and in
line with our strategy the Industrial Coatings activities
have been organized in two global business units as
from January 1, 1999. Industrial Finishes will be
responsible for the Coil and Wood Coatings activities,
while Industrial Coatings will manage the General
Industrial, Powder, Plastics, and Aerospace Coatings.
The industrial coatings activities of former Courtaulds
are being integrated into these two business units.
INDUSTRIAL COATINGS EUROPE
Consolidating market leadership positions
Earnings in 1998 were slightly lower than in 1997 due
to a downturn in the second half of the year when the
economic crises in Asia and Eastern Europe had a
negative impact on sales.
During the year Powder, General Industrial, Wood, Coil,
and Plastics Coatings all maintained or increased
market shares.
Integration of the former Courtaulds Industrial Coatings
activities commenced and a new organizational
structure was adopted. The combined powder coatings
activities have made Akzo Nobel the new market leader
worldwide. The acquisition of Courtaulds has also given
us access to additional proprietary chemistry, which—
combined with our existing activities in this field—
should significantly improve our long-term
competitiveness.
Plastics Coatings, already the European market leader,
improved its position further. In response to continued
restructuring of the market for general industrial
coatings, we further developed our strategy of building
strong positions in key niche markets. We substantially
strengthened our presence in the important nonstick
coatings market. After the acquisition of Lambda (Italy)
and the formation of the joint venture with CCC (United
States) we are now among the global market leaders.
The internationalization of another niche, mirror
coatings, gained momentum.
R&D efforts to improve the eco-efficiency of products by
reducing toxicity and emission levels continued.