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The company said it also made measures to ensure the delivery of its 2020 financial guidance.
September 9, 2017
By: Anthony Locicero
Copy Editor, New York Post
AkzoNobel said it restructured the management of its Paints and Coatings business in advance of creating two businesses: the aforementioned Paints and Coatings, as well as Specialty Chemicals. The company said the “fully integrated, management structure will increase customer focus, drive further operational excellence, and build greater momentum and speed across the business.” Per AkzoNobel, the structure will be based on four regional paints business units and four integrated coatings business units with full profit and loss responsibility. The separation of Specialty Chemicals remains on track for April 2018, according to AkzoNobel. “Our new management structure will increase customer focus, drive further operational excellence, and build greater momentum and speed,”said CEO Thierry Vanlacker. “AkzoNobel is delivering growth and the organization changes we are making will pave the way for the creation of two focused businesses. Additionally, the company said it is implementing a range of measures to mitigate current market challenges: 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. “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,”said Vanlacker. The management structure change and additional measures were put in place to “ensure ongoing delivery of the AkzoNobel 2020 financial guidance – 15 percent return on sales and greater than 25 percent return on investment for Paints and Coatings – the company noted. The company said increased selling prices and additional cost controls should enable AkzoNobel to deliver a 2017 EBIT higher than 2016, “although by less than the previously communicated increase of €100 million.” Recently, AkzoNobel appointed Ruud Joosten to chief operating officer and tapped David Allen as chief supply chain officer.
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