AkzoNobel Plans to Separate its Specialty Chemicals Business

AkzoNobel NV reviews its plans to separate its specialty chemicals business

Netherlands: AkzoNobel NV, a Netherlands based leading manufacturer of paints, performance coatings and specialty chemicals, has revealed its plans to separate its specialty chemicals business from the company. The company is still reviewing strategic options that would result in setting up an independent specialty chemicals business with its own ownership structure. The specialty chemicals business garnered USD5.15 billion revenue in 2016, with strong performance across construction, industrial and consumer goods industry. This strategic move would permit the company to focus more on the growth and business development of paints and performance coatings business, thereby maintaining their respective leading positions across global markets.

TechSci Research depicts that such planned decision would draw company’s focus towards growth of its paints and performance coatings business both in operations and financial aspects. This would, thus, strengthen company’s position in the global pigments market, making it a tough competitor across various regional markets.  

According to the recently published report by TechSci Research, “Global Pigments Market By Type, By Application, Competition Forecast and Opportunities, 2011 – 2021”,  global pigments market size is estimated to cross US$ 34 billion by 2021. Segment-wise, inorganic pigments dominated the overall market in 2015, and this trend is anticipated to continue through 2021. Inorganic pigments are widely used in paints & coatings and plastics to provide various functional properties such as heat stabilization, antistatic, flame retardants, anti-block and UV stabilization. In 2015, Asia-Pacific region dominated the global pigments market, owing to huge presence of paints & coatings, plastics, construction, and printing ink industries, coupled with increasing investments across diverse industry verticals. Few of the major companies operating in the global pigments market include BASF, Clariant, Huntsman, Tronox, and Lanxess, among others.