Azko Nobel produces resins used to manufacture inks for commercial printing and packaging, digital inks for laser and photocopier printing, and pressure sensitive adhesives used in tape and labelling applications.

The business generated 2004 sales of approximately €166m, about half in Europe and the rest in North and South America and the Asia Pacific regions. It has 10 manufacturing facilities and 560 employees.

Akzo Nobel’s Board member responsible for chemicals, Leif Darner, says the transaction would be the first in a series of planned chemicals divestments designed to give the company a clear focus for its future operations.

“Ink and Adhesive Resins is one of several businesses we identified as having better prospects for growth and development in the hands of an owner with a different strategic focus to our own,” explains Darner. “We’re confident that this deal with Hexion would offer the best opportunity to flourish for both the business and its employees.”

President of Hexion’s Coatings & Inks Division, Jeff Nodland, says the acquisition of Akzo Nobel’s ink and adhesive resins business demonstrates the company’s continued commitment to leadership in the global ink and adhesive resins industry.

“The combination with Hexion’s existing businesses will strengthen and diversify our product capabilities and allow us to more effectively meet the needs of our customers,” says Nodland.

Manufacturing facilities in the Asia Pacific region that will be acquired are located in New Zealand, China and Korea.
Unions and employee representative bodies have been informed and consultation procedures will commence shortly, where applicable. Regulatory approvals will be sought as and where appropriate.

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