AkzoNobel announces major performance coatings restructure

AkzoNobel has announced that it will establish a new organisation for its Performance Coatings Business Area in order to drive leading performance. The simplified new structure – due to become 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 seven 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.
"Following the launch of our new strategy in 2013, we have initiated a process of change throughout the organisation,” explained AkzoNobel CEO Ton Büchner. "This planned reduction in management layers will not only enhance decision-making efficiency but we will also create an organisation that is more customers focused, agile and lean.
"We consider these to be key elements with regard to driving leading performance,” he added. "Because in addition to delivering on our organic growth and operational excellence strategy, the changes will also improve our profitability and help to deliver on our 2015 targets and beyond.”
The costs associated with this reorganisation 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.