The Netherlands: Speciality Chemicals New Management Structure at Akzo Nobel
Akzo Nobel announced a new management structure for its Paints and Coatings business in advance of creating two focused high-performing businesses; Paints and Coatings and Specialty Chemicals.
Amsterdam/The Netherlands — This announcement follows the recently communicated changes to the Executive Committee, including the appointment of Ruud Joosten as Chief Operating Officer and David Allen as Chief Supply Chain Officer.
In addition, the company is implementing a range of measures to mitigate current market challenges. These challenges include unfavorable 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.
Steps already taken, including increased selling prices and additional cost control measures, are expected to enable Akzo Nobel to deliver EBIT for 2017 higher than 2016 although by less than the previously communicated increase of € 100 million.
According to the company, the separation of Specialty Chemicals remains on track for April 2018.
Thierry Vanlancker, CEO AkzoNobel said: “Current challenges in the paints and coatings markets are having a wider and greater impact as the year continues and we are dealing with these head-on. Our new management structure will increase customer focus, drive further operational excellence, and build greater momentum and speed."