Coatings - AkzoNobel

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Powder coatings, one of the fastest growing sectors of the worldwide coatings industry, are finding increasingly more sophisticated applications, which exploit their outstanding toughness and durability. The Stade de France (right) features our Polydrox® powders on roofing, glazing, lighting, ceilings, barriers, and safety gates. Our new superdurable Interpon® D25 was used on paneling of the new Hong Kong airport (right, center).
INDUSTRIAL COATINGS NORTH AMERICA Solid platform for future growth A positive business environment coupled with intensified efforts to reduce raw material costs were the ingredients in structural profitability. These results were obtained despite the economic turmoil in Asia and South America and a temporary price erosion due to overcapacity in the U.S. coil coatings market. Geographic expansion continued with the acquisition of Oxylin Industrial Ltda, São Paulo, Brazil. This state-ofthe-art and competitive industrial coatings production facility will serve as a strategic bridgehead for our industrial coatings business in South America. In addition, a new production facility was commissioned in García, Nuevo Léon, Mexico. Wood <strong>Coatings</strong> performed excellently, strengthening its position as a leading supplier of high-quality finishes to the furniture industry. The coil coatings industry worldwide will remember 1998 as a year of tough competition and price erosion. We nevertheless managed to improve our market position through high-quality products and innovation. The process of integrating the former Courtaulds coil activities will result in a strengthened market position. Commitment to R&D continues to be vital for the success of our business, yielding a stream of new products that keep renewing and enhancing our competitive position. For example, 1998 saw our Ceram-A-Star® coil coating systems, with their exceptional exterior durability and modest cost, increase their market penetration. Our waterborne Durasoft® soft feel coatings systems also gained greater acceptance in both the automotive and truck markets. In addition, we commercialized a new ultra-performing system for wooden office furniture and dining room tables, cured by ultraviolet light. AKZO NOBEL ANNUAL REPORT 1998 37 COATINGS CAR REFINISHES Sales NLG 1,300 million (1997: NLG 1,270 million) Onward and upward Car Refinishes enjoyed another successful year, with sales up from 1997 and an improvement in operating income. We made good progress in pursuing our fundamental strategy, which is to: • consolidate and improve positions in established businesses in developed markets; • grow in new market segments; • grow in emerging markets. Performance in Western Europe was considerably strengthened, as is reflected in gains in sales and operating income and in a larger market share. In the Sikkens® high-end segment, we successfully introduced waterborne and high-solids products to meet growing demand for products with a low VOC (volatile organic compounds) content. Upgraded versions of conventional products also sold well. In the middle segment Lesonal® sales continued to grow in Western Europe. We also achieved strong growth in the commercial vehicles segment, especially in emerging markets. In North America we consolidated our Sikkens® business in a highly competitive market that is being transformed by the introduction of nationwide VOC legislation. Lesonal® sales developed well, enabling us to strengthen the distribution network. The commercial vehicles segment has become a key part of our market strategy in North America. The joint venture in Mexico again gained market share with the Sikkens® product lines, supported by the newly opened training center in Mexico City. In Asia we concentrated on extending our market position. We took over operations from importers and set up operations of our own in South Korea, Malaysia, Singapore, and the Philippines. We also established two new branches in India. In China we opened a new training center and strengthened our sales force.
Page 1 and 2: Annual Report 1998
Page 3 and 4: AKZO NOBEL ANNUAL REPORT 1998 1 CON
Page 5 and 6: CHAIRMAN’S STATEMENT Dear shareho
Page 7 and 8: We regret that the steady improveme
Page 9 and 10: • the amendment of the Company’
Page 11 and 12: REPORT OF THE BOARD OF MANAGEMENT G
Page 13 and 14: Condensed statement of income Milli
Page 15 and 16: Expenditures for property, plant an
Page 17 and 18: PEOPLE AT AKZO NOBEL HR systems fur
Page 19 and 20: Environmental targets achieved ahea
Page 21 and 22: 17% 19% Pharma Coatings Chemicals A
Page 23 and 24: Major Product Lines CHEMICALS Speci
Page 25 and 26: Responsible in Board of Management:
Page 27 and 28: BUSINESS REVIEW Continued healthy g
Page 29 and 30: Developments in the Business Units
Page 31 and 32: Sales of Pharmaceuticals made subst
Page 35 and 36: BUSINESS REVIEW Quantum jump throug
Page 37: We increased our shareholding in As
Page 41 and 42: The U.S. operations expanded facili
Page 43 and 44: Marine Coatings The effect of the e
Page 47 and 48: Sales of Chemicals’ nonconsolidat
Page 49 and 50: The continuing trend toward ECF (El
Page 51 and 52: Phosphorus chemicals earnings conti
Page 53 and 54: The absence of market growth combin
Page 55 and 56: From January 1, 1999, Acordis acts
Page 57 and 58: Folkert B. Blaisse 9% 26% AKZO NOBE
Page 59 and 60: Membrana’s results were slightly
Page 61 and 62: During the year many new applicatio
Page 63 and 64: account for approximately one-third
Page 65 and 66: 2% 4% 4% 20% 20% 9% 9% 13% 19% Annu

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