media release

Chemicals Site Being Expanded to Meet Demand

PRESS RELEASE: Akzo Nobel is investing EUR 24 million to increase capacity at its Bermocoll® production facility in Sweden, which will transform the site into one of the biggest cellulose derivative manufacturing plants in the world.

, the Netherlands, November 9, 2005 – Akzo Nobel is investing EUR 24 million to increase capacity at its Bermocoll® production facility in Sweden, which will transform the site into one of the biggest cellulose derivative manufacturing plants in the world.

at the Örnsköldsvik factory – which produces the company’s globally marketed Bermocoll water soluble nonionic cellulose derivatives (used in paints and building products) – will be boosted by around 25 percent, with the first expansion phase expected to be completed by mid-2006.

“This investment, combined with a recently completed restructuring project at the Örnsköldsvik facility, will turn the site into one of the largest and most cost-effective of its kind in the world,” explained Leif Darner, Akzo Nobel’s Board Member responsible for Chemicals. “Industry demand has been increasing steadily over recent years and by strategically boosting capacity we will maintain the excellent growth momentum of our Bermocoll business, which has been performing consistently well for many years.”

Swedish site, operated by the company’s Cellulosic Specialties business, is Akzo Nobel’s primary Bermocoll production location. The products themselves – which are produced in a number of different viscosity grades – are used as environmentally-friendly thickeners, stabilizers and water retention agents to help improve the properties of water-based paints and building products, such as cement and gypsum.

“We have significant expertise in this field and command a strong position in the market,” added Lars Andersson, General Manager of Akzo Nobel’s Cellulosic Specialties business. “With industry growth rates continuing their gradual upward trend, increasing capacity will ensure that we continue to offer top class products and services to customers all over the world.” 

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