AkzoNobel outlines new strategy accelerate growth, value creation

AkzoNobel outlines new strategy to accelerate growth, value creation

6:41 AM, 19th April 2017
Ton Buchner, CEO, AkzoNobel. (File photo)
Ton Buchner, CEO of AkzoNobel. (File photo)

AMSTERDAM, NETHERLANDS: AkzoNobel NV outlines a new strategy to accelerate growth and value creation with two focused, high-performing businesses - paints and coatings and speciality chemicals - which will lead to a step change in value creation for shareholders and all stakeholders.

The logical next phase of creating two separate companies builds on the strong financial and operational foundation developed in recent years. It will generate superior, faster and more certain value creation than the alternatives and with substantially fewer risks, uncertainties and social costs.

Strategy: create two focused businesses

  • Separation of speciality chemicals to take place within 12 months; project teams in place
  • Dual-track process with active consideration of a separate listed entity or sale
  • focused paints and coatings business, with fit-for-purpose structure and processes

Accelerating sustainable growth and profitability

  • €150 million annual savings resulting from ongoing continuous improvement programs in paints and coatings
  • Additional €50 million expected cost savings related to the separation of speciality chemicals
  • Continued commitment to sustainability with ambition to use 100% renewable energy and be carbon neutral by 2050
  • Investment of €1 billion in research and development by 2020 to maintain focus on innovation and new product development

Enhanced financial guidance for 2020 

  • 2017 EBIT to be around €100 million ahead of 2016 due to significant growth momentum across all Business Areas
  • Increased 2020 guidance: Paints and Coatings 15 percent return on sales (ROS), ROI (return on investment) >25 percent;
  • Speciality Chemicals 16 percent ROS, ROI >20 percent

Increased shareholder returns

  • 50 percent increase in the regular dividend per share to €2.50 per share, reinforcing confidence in the future plan to further drive growth and profitability
  • Vast majority of net proceeds from the separation of Specialty Chemicals to be returned to shareholders
  • €1 billion special dividends to be paid in November reflecting confidence in the planned separation

“We have laid out a new plan today with clear, ambitious goals. With the support of our colleagues across the world and building on our incredible brands, we will create two leading, customer focused businesses which will deliver enhanced value for all our stakeholders,” said Ton Buchner, CEO of AkzoNobel.

“The plan will enable AkzoNobel to thrive both to the benefit of our shareholders and the communities worldwide in which we operate,” added Antony Burgmans, chairman of the AkzoNobel supervisory board.

© Worldofchemicals News 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


Axalta inaugurates auto refinish training centre in Dubai

DUBAI, UAE: Axalta Coating Systems (AXTA) has inaugurated the first of its kind automotive refinish training centre in Dubai, UAE. The centre will pro ...

Read more
Clariant unveils new range of super-transparent pigment preparations

MUTTENZ, SWITZERLAND: Clariant unveils a new range of super-transparent preparations based on non-halogenated pigments, Hostatint A 100-ST. These pigm ...

Read more
Biesterfeld implements new European distribution logistics concept

HAMBURG, GERMANY: By completing the move into a modern, fully equipped central warehouse, Biesterfeld Spezialchemie is successfully implementing its n ...

Read more
PPG introduces new primer for heavy-duty equipment

PITTSBURGH, US: PPG Industries (PPG) has introduced a patented polyurethane primer for use in heavy-duty equipment, general finishing and transportati ...

Read more
Nova to buy Williams Geismar olefins stake for $2.1 bn

CALGARY, US: Nova Chemicals Corporation (Nova) has signed an interest purchase agreement with Williams Partners LP, to acquire Williams’ 88.46 p ...

Read more
Praxair starts new air separation unit in Burns Harbor, US

DANBURY, US: Praxair Inc (PX) said that it has started up a world-scale air separation unit (ASU) at its Burns Harbor, Indiana site. The 2,400-tonne-p ...

Read more