Akzo Nobel to scale-up in-house production of resins
Akzo Nobel has announced plans to invest in the expansion of in-house resin manufacturing as part of the company’s Grow & Deliver strategy.
The scale-up program, which is already underway, is intended to help build resilience against supply disruptions while making an important contribution to achieving the company’s financial and Scope 3 (upstream) carbon reduction ambitions.
The plans include investing in sites, equipment and the people needed to optimally run them. They were developed after an internal resins team was tasked with investigating opportunities to unlock more value and make the company more self-sufficient. The investment is expected to contribute around EUR 15 to EUR 20 million in EBITDA by 2023.
“Sustainable business growth”
“All of our businesses use resins, and while we produce a good proportion of what we need ourselves, commodity and other specialty resins need to be sourced from third parties,” explains Michael Friede, Akzo Nobel’s Chief Commercial Officer for Performance Coatings. “Further investing in our own resin capabilities will help us to secure sustainable business growth, as well as supporting our innovation pipeline and sustainability targets.”
“We’re well aware that demand for resins is only expected to increase,” he adds. “Meanwhile, our resin manufacturing sites have extra production capacity available. So the decision to increase our investment in the production of resins at favorable economics is intended to add important value to our customers and our company.”
