Paint and coatings manufacturer AkzoNobel announced that it is expanding its resin-production facilities to build resilience against supply-chain disruptions and help it reach its financial and carbon-reduction goals.
“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,” Michael Friede, AkzoNobel’s chief commercial officer for performance coatings, said in a statement. “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.”
AkzoNobel said it is investing in new production sites and equipment, as well as staff. The company expects the investments to contribute $17 million to $22.7 million (before interest, taxes, depreciation and amortization) by 2023.
“It quickly became apparent that investing in our own resin capability was the way to go,” Friede said. “It will enable us to secure raw material supply and … we’ll look to generate extra value by leveraging and optimizing the volumes we don’t bring in-house with our network of external partners.”
