Citation
(2005), "Akzo Nobel CEO Wijers says Coatings business will fuel growth", Pigment & Resin Technology, Vol. 34 No. 2. https://doi.org/10.1108/prt.2005.12934bab.027
Publisher
:Emerald Group Publishing Limited
Copyright © 2005, Emerald Group Publishing Limited
Akzo Nobel CEO Wijers says Coatings business will fuel growth
Akzo Nobel CEO Wijers says Coatings business will fuel growth
Akzo Nobel CEO Hans Wijers said the Netherlands-based coatings, chemicals and pharmaceuticals company will pursue growth of its Coatings segment as part of a strategy to focus on core operations. Wijers, addressing separate meetings with financial analysts in London and New York, said the company is poised for a return to growth in the next several years due to a restructuring program and “investments in innovative products and growth markets”.
Wijers said an expansion of the company's Coatings segment “will accelerate as we expand our global leadership organically and through acquisitions, while continuing to improve financial returns”. He said the company's Chemicals segment is “now showing a satisfying performance” following recent divestitures and restructuring actions.
A key to the company's overall fortunes, Wijers said, will be new product launches for the Pharma segment, which has recently experienced a slide in sales due to the expiration of a key patent.
In comments to the news media before the meeting with analysts in London, Wijers was quoted as saying that he did not rule out a possible divestiture of the Pharma business. He added, however, that no decision would be made until the business's performance improves.
Addressing Coatings-segment strategies, Wijers said growth in mature markets “will be powered by technological innovation, delivering superior new products to our customers, and by in-fill and bolt-on acquisitions where we see an opportunity to add value to our portfolio”. In emerging markets, he said Akzo Nobel “will aggressively expand our position, mainly by greenfield investments. China is our fastest-growing market, with sales set to double in the next five years”.
Wijers said Akzo Nobel “faces the future from a position of strength, and will maintain a solid financial position. We have streamlined the businesses, increased efficiency, reduced debt, and focused our investments on the most promising areas”