Akzo Nobel to restructure PVC-Additives Business for Rigid Applications

Eccles (UK), June 15, 2001. Akzo Nobel Business Unit Plastics and Processing Additives (which trades as Akcros Chemicals) today announced plans for restructuring its PVC additives for rigid applications business. The restructuring will affect locations in Germany, the United Kingdom and the Netherlands, but will not entail plant closures. Said Kees van Nierop, Managing director of Akcros Chemicals: “One third of Akcros‘ sales are derived from the rigid application segment and this restructuring is intended to lower our cost base and make room for new products in the future. As announced by our Chief Financial Officer, Mr Fritz Fröhlich, in the first quarter, this is a part of accelerated restructuring in the chemicals group."

“For some years we have seen an increasingly competitive situation developing in this market. Customers continually demand more value for money and Akcros is in a position to deliver on these demands particularly after completion of the restructuring,“ van Nierop added.

Of some 60 employees affected by the restructuring 30 are in production and production related jobs in Dahlem, with the remaining 30 in the sales, administration, production and research areas spread over Düren (Germany), Roermond (NL) and Eccles (United Kingdom). Where appropriate the advice of works councils has been sought and trade unions have been informed. Social plans for the redundancies will be put in place where required.

Akcros Chemicals, a business unit of Akzo Nobel, is one of the world leaders in the field of additives for the processing and manufacturing of plastics as well as Polysulphide Chemicals for the aerospace, marine and construction industries. Annual sales amount to approximately EUR 200 million. With headquarters located in Eccles, UK, Akcros employs around 900 people. The company has manufacturing sites in the UK, The Netherlands, Germany and the USA and sells its products worldwide.

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2000 totaled EUR 14 billion (USD 13 billion, GBP 8.5 billion). The Company currently employs 68,800 people in more than 75 countries. Financial results for the second quarter of 2001 will be published on July 25, 2001.

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