AkzoNobel announces restructure of its performance coatings business

AkzoNobel has announced it will establish a new organisation for its Performance Coatings Business Area in order to drive leading performance.

The simplified structure – due to be fully operational in January 2015 – will reduce the number of global management layers. As a result, Performance Coatings will be managed through seven Strategic Market Units under the leadership of Executive Committee Member Conrad Keijzer. The units will focus on specific customer segments and technologies. They will be: Marine Coatings, Metal Coatings, Powder Coatings, Protective Coatings, Specialty Coatings, Vehicle Refinishes and Wood Coatings. "This planned reduction in management layers will not only enhance decision-making efficiency but we will also create an organisation that is more customer focused, agile and lean,” explained AkzoNobel CEO Ton Büchner.

The reorganisation costs are included within the guidance of at least €250M of total restructuring charges for 2014. In 2013, Performance Coatings generated revenues of €5.6bn and an operating income of €525M, with 21,400 employees located worldwide.