AKZONOBEL’S LARGEST STORAGE BASE IN CHINA TO BE READY IN 2023

A massive logistics center that will become AkzoNobel’s largest warehousing base in China is on track for completion in mid-2023, the new €10.3 million facility will be a hub for production, storage and transportation, will use intelligent digital technologies and advanced security management to customize storage and operation modes for different product categories. The project is scheduled for completion in May of next year.

On the other hand, AkzoNobel announced a major investment of close to 20 million euros to increase and improve production at two of its plants in France. The multinational will spend a total of €15 million on the company’s aerospace coatings facility in Pamiers, which was acquired following the acquisition of Mapaero in 2019. The other €5 million will be used to improve production flexibility at the decorative paints site in Montataire.

Furthermore, AkzoNobel aims to grow in or above its relevant markets, in line with the company’s Grow & Deliver strategy. Several end markets are expected to experience significant disruptions due to the continued deterioration of the macroeconomic environment. As such, the company has suspended the ambition of an adjusted EBITDA of €2 billion by 2023.

Finally, AkzoNobel expects lower raw material costs to have a favorable impact on margin by 2023. To achieve this, the company has introduced margin management and cost reduction programs to mitigate the current challenges.