Arnhem, the Netherlands, May 30, 2006 — Akzo Nobel has gained full control of its Asian Akzo Nobel Chang Cheng Coatings joint venture after acquiring the remaining shares.
The transaction—which involved purchasing the outstanding 16.66% shares owned by main partner Chang Cheng Securities—means that the company now wholly owns its powder coatings operations in China, Taiwan and Hong Kong.
“As global leaders in this sector, expanding our activities in this part of the world has significant priority and taking complete control of the joint venture will help us to strengthen our position in the fastest growing powder market in the world,” explained Akzo Nobel CEO Hans Wijers, who is also the company’s Board member responsible for Coatings.
Added Rob Molenaar, General Manager of Akzo Nobel’s Powder Coatings business: “We will continue to focus on serving our customers’ needs and to expand our customer portfolio in the segments in which we excel. Taking full control of the joint venture will not change that vision and focus. The very successful joint venture in China and Taiwan started in 1991.
"Our Asian operations today are operating in a truly global business environment. With this acquisition, our global and domestic customers will continue to be able to achieve outstanding and consistent quality.”
The transaction, which is subject to regulatory approvals, involves a total of six sites, four of which are located in China.
“Akzo Nobel is a top class employer with an extremely good global reputation and the business and its employees can only benefit from this transaction, which is a very good one for all concerned,” said Taiwanese entrepreneur and owner of Chang Cheng Securities, Jack Lee.
“The joint venture has been a very successful one and the company can only continue to prosper now that the company is completely in the hands of such a respected and focused company.”
It is expected that the transaction will be completed within the next six to eight weeks.