Brave Ground has been unveiled as AkzoNobel’s Color of the Year for 2021. It’s a warm and grounding neutral shade that gives us the courage to embrace change. A range of palettes has been developed to help customers of the company’s Decorative Paints, Automotive and Specialty Coatings, Powder Coatings and Wood Coatings businesses choose on-trend colors with confidence.
Our Guangzhou decorative paints site in China is undergoing a major upgrade to enable it to exclusively produce water-based products. It’s the last of our four Chinese deco plants to make the switch, enabling us to meet growing demand for more eco-premium, water-based paints.
We’re proud to have been awarded Platinum by EcoVadis, a key rating agency which benchmarks sustainability performance. It means AkzoNobel is now in the top 1% of all companies and strengthens our leadership in sustainability.
During Q3, we completed the acquisition of Stahl Performance Powder Coatings and its range of products for heat sensitive substrates. The deal gives us accelerated access to unique low curing technology which is the only one of its kind in the powder coatings industry. It includes both UV and thermally curing powders and will enable the company to penetrate the ultra-low cure (80-100°C) domain.
Choosing the right powder coating has never been easier, thanks to the introduction of immersive 3D imaging technology by our Interpon brand. The new color tool – available via the AkzoNobel Design app – is designed to help architects and specifiers find exactly the right product for their needs. As well as enabling users to digitally rotate coatings samples, it’s also possible to zoom in and out and view them in the context of different environments.
European business to be strengthened following acquisition of Titan in Spain
We’re targeting further growth in Europe after announcing on October 19 that we’ve agreed to acquire the decorative paints business of Spain’s Industrias Titan S.A.U., one of the country’s best-known brands. Completion is subject to regulatory approvals and expected before the end of Q1, 2021.
AkzoNobel has suspended its 2020 financial ambition in response to the significant market disruption resulting from the pandemic. Headwinds related to COVID-19 continued to ease, although demand trends differ per region and segment in an uncertain macro-economic environment. Raw material costs are expected to have a favorable impact for the fourth quarter of 2020. Continued margin management and cost-saving programs are in place to address the current challenges. The company targets a leverage ratio of 1-2 times net debt/EBITDA and commits to retain a strong investment grade credit rating.
The report for the third quarter 2020 can be viewed and downloaded here.