Matters
T H E A k z o N o b e l M A G A Z I N E | s e p tem b e r 2 0 0 7
ICI announcement
R&D in Car Refinishes
Eka Chemicals
in Brazil
Spotlight
on Ferrazone
Furniture coatings
Focused on
expertise
Colophon
Akzo Nobel Matters
September 2007
publisher
Akzo Nobel nv,
The Netherlands
Editorial address
Corporate Corporate
Communications (ACC)
P.O. Box 75730,
1070 AS Amsterdam,
The Netherlands
Telephone
+ 31 20 502 7836
fax
+ 31 20 205 7604
E-mail
akzonobel.matters@
akzonobel.com
Managing Editor
Berry Oonk
Chief Editor
David Lichtneker
Editorial board
Peter de Haan, David
Lichtneker, John
McLaren, Berry Oonk
Contributors
Patricia Gosling,
Terri Kester, Sara
Sharpe, Jim Wake
photography/
Illustrations
Corbis (Aflo/Yann
Arthus-Bertrand/
Bruce Benedict,
Transtock/Thom Lang),
Getty (Andy Reynolds/
RPM Pictures/
Miguel Salmeron/
Stephen Swintek),
Sally Ann Norman,
Veracel Plantations
(ABTCP)
Traffic officer
Roos Geschiere
production
Hemels Publishers,
Hilversum,
The Netherlands
printing
Roto Smeets
Utrecht,
The Netherlands
Opinions in
this magazine do
not necessarily
represent those of
Akzo Nobel, and
Akzo Nobel accepts
no responsibility for
these opinions.
While the information
in this publication
is intended to
be accurate, no
representation
of accuracy or
completeness is made.
Reproduction of the
contents in other
publications is
prohibited unless prior
written approval is
given by Akzo Nobel.
You can subscribe to
Matters magazine
online by visiting
www.akzonobel.
com/com/News/
Company+Magazine.
htm
Akzo Nobel is a fortune Global 500 company
and is listed on the Euronext Amsterdam
stock exchange. It is also included on the Dow
Jones sustainability Indexes and fTsE4Good
Index. based in the Netherlands, we are a
multicultural organization serving customers
throughout the world with coatings, chemicals
and human and animal healthcare products.
we employ around 62,000 people and conduct
our activities in these four segments, with
operating subsidiaries in more than 80
countries. Consolidated revenues for 2006
totaled Eur 13.7 billion. The financial results
for the third quarter will be published on
october 23, 2007.
visit Akzo Nobel’s corporate website:
www.akzonobel.com
Contents
Welcome
CEO Hans Wijers
3 welcome
Akzo Nobel CEO Hans Wijers welcomes
you to our latest issue.
4 Historic deal lined up
A report on Akzo Nobel’s
recommended cash offer for the UK’s
Imperial Chemical Industries (ICI).
6 painting with light
Find out why a bridge in the north east
of England coated with Akzo Nobel
products is attracting admiring glances
from night-time visitors.
8 Having a ball
Golf and tennis might appear to have
little to do with Akzo Nobel, but it
would be an entirely different ball
game without the company’s products.
16 The global drive for r&D
An in-depth look at the Car Refinishes
business and its expanding R&D
activities, which recently resulted
in the extension of its International
Research Center in India.
20 A colorful history
We report on the recent celebrations
held in the Czech Republic to celebrate
the centenary of the Balakom coatings
brand, which was acquired last year by
Akzo Nobel.
22 branching out in brazil
A detailed look at Eka Chemicals’
activities in Brazil, where the
Pulp & Paper Chemicals business’
sales have increased ten-fold in just
over ten years.
26 waking up to a brave new world
Why Akzo Nobel Powder Coatings is
launching a new initiative to break into
the consumer furniture market.
2 In brief
More company news summaries from
across the globe.
30 bulgaria calling
One of the company’s employees
reports from their part of the world.
30 Gallery
We highlight one of the works
from Akzo Nobel’s acclaimed
Art Foundation collection.
8
22
14 ferrazone in the spotlight
An update on the continuing success
of the Ferrazone ® iron compound
produced by the company’s Functional
Chemicals business.
14
6
Welcome to the latest Matters magazine, which for the third
issue in a row has something to celebrate. Following on from
the launch of our German and Chinese language versions
in March and July respectively, this month marks the
introduction of a special U.S. edition—which will pay more
attention to local developments.
The magazine has come a long way in a relatively short space
of time. In just three years—and ten issues—the global
publication has expanded into four editions, with more on the
way, because further language versions are planned for next
year. Inevitably, managing this complex process requires skill
and capability in specific areas and this is a theme which
runs throughout this particular issue.
As a global company with many leading positions in various
markets, our activities rely on knowledge and high levels of
expertise in numerous disciplines, be they related to research,
product development, marketing, human resources or innovation.
Many of the articles featured in this edition highlight Akzo
Nobel’s know-how and illustrate how this expertise has been
applied around the world to the benefit of customers, consumers
and society in general.
11 In brief
A summary of company developments
from around the world.
12 forged in the fjords
A look at the company’s involvement
in the construction of an aluminum
smelter on the east coast of Iceland,
just south of the Arctic Circle.
focused on expertise
26
For example, a major article focused on our Car Refinishes business
explains how their expanding research efforts are helping to
develop breakthrough products and services which are being
introduced in countries across the globe. There’s also an in-depth
look at Pulp & Paper Chemicals business Eka Chemicals’ increasingly
successful Brazilian operation, which recently announced a
major EUR 50 million investment to build a dedicated facility to
supply a new pulp mill.
With this time of year bringing sunshine and warm weather to
many parts of the world, we report on how our Coatings and
Chemicals activities play an important role in the manufacture
of balls used in two highly popular summer sports—golf and
tennis. Other stories include news of a new initiative introduced
by Akzo Nobel Powder Coatings, an update on the continuing
success of the company’s Ferrazone iron compound and a special
look at the recent celebrations to mark 100 years of the Balakom
coatings brand in the Czech Republic.
Remember, you can subscribe to Matters free of charge
(the English, German, Chinese or U.S. versions) by visiting
Akzo Nobel’s corporate website (www.akzonobel.com).
I look forward to welcoming you to our next issue in December.
16
Hans wijers
Chairman of the Board of Management
A report on the recent announcement regarding
“
Wearebuildingsomething
fANTAsTICAlly
powErful”
Akzo Nobel’s recommended cash offer for the UK’s
Imperial Chemical Industries (ICI).
A
kzo Nobel is poised to carry out the second biggest
acquisition ever by a Dutch firm after the Board of the UK’s
Imperial Chemical Industries (ICI) agreed to recommend the
company’s recently announced cash offer of 670p a share
(GBP 8.1 billion, EUR 11.8 billion).
As well as the ICI deal—which includes an extra 5p in dividend over
the second half of 2007, on top of a 4.95p interim dividend
already declared by ICI over the first half of 2007, valuing ICI at 679p
a share—Akzo Nobel has also agreed a back-to-back sale of ICI’s
adhesives and electronic materials activities to German company
Henkel for EUR 4 billion (GBP 2.7 billion).
Expected to be completed before the end of the year, the acquisition
of ICI—to be followed by the Henkel deal in the first half of 2008—will
consolidate Akzo Nobel’s position as the world’s largest maker of paints
and coatings, as well as generating estimated pre-tax cost synergies of
EUR 280 million.
“I am delighted with this transaction, which will be a transformational
step in implementing our strategy,” said Akzo Nobel CEO Hans Wijers.
“We will create a leading global coatings and specialty chemicals company
with a diversified geographic presence and well developed access to
fast-growing markets in Asia-Pacific, particularly China and Latin America.
“Through this combination, we will be able to realize significant
synergies and create value for our shareholders. At the same time, our
customers, employees, pension funds and other stakeholders will benefit
from the size and reach of the enlarged group. The pre-agreed sale of
ICI’s adhesives and electronic materials businesses to Henkel is entirely
consistent with our promise of financial discipline and provides the
added benefit of being able to return additional cash to our shareholders
in the near future.”
Established in 1926, ICI is now a major coatings manufacturer with
a portfolio which includes household names such as Dulux and
Glidden. The company employs around 26,000 people and,
prior to a series of important divestitures—such as its
Zeneca pharma division in 1992—was one of the
giants of British industry.
ICI also shares some history with Akzo Nobel.
Back in 1926, Nobel Industries was one of four
companies which formed the original ICI, and
decades later in 1994, Akzo took over Nobel
Industries to create Akzo Nobel.
Speaking at the press conference to
announce the deal, John McAdam, CEO
of ICI, admitted that it was a day of mixed
feelings, but believed that the offer
represented a good deal for the company’s
shareholders. “Akzo Nobel has made a
compelling offer which delivers full value
for ICI, reflecting ICI’s strong future growth
prospects and strategic opportunities,”
he said. “Accordingly, the Board will be
recommending shareholders accept the
670p cash offer from Akzo Nobel as it
believes it to be in their best interests.”
Upon completion,
the deal will create
a company with
worldwide coatings
sales of around EUR 10
billion. “We are building
something fantastically
powerful,” Wijers
told the assembled
members of the media
at August’s press
conference in London. “We will be a strong company with very
strong brands and enormous growth potential. We really want to embrace
the people from ICI and together build a leading Fortune 500 company.”
The landmark ICI deal—which is subject to shareholder and regulatory
approval—will complete a hectic and historic year for Akzo Nobel.
The acquisition has been made possible by the divestment of Organon
BioSciences to Schering-Plough for EUR 11 billion (announced in March),
a transaction which is also due to be completed by the end of 2007
and which will represent the biggest ever sale negotiated by a Dutch
company. Another significant development this year has been the
relocation of Akzo Nobel’s Head Office from Arnhem to Amsterdam
in the Netherlands. n
GLOBAL DECORATIVE COATINGS MARKET: AKZO NOBEL—ICI STRATEGIC FIT
COATINGS—NO.1 WORLDWIDE
Pictured are Akzo Nobel
CEO Hans Wijers (left) and
ICI CEO John McAdam.
ICI DEAl
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Akzo NobEl MATTErs
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5
Painting with
light
Coatings supplied by Akzo Nobel for a UK bridge
are helping commuters to trip the light fantastic.
S
tand by the quayside of the River Tyne—which divides Newcastle and
Gateshead in the north east of England—and chances are you won’t quite
know where to look first.
An area rich in history and tradition, substantial redevelopment work has
taken place over recent years which has resulted in a major transformation
of the waterside district. So if the seven tightly clustered bridges which dominate this
popular location don’t immediately grab your attention, then one of many impressive
new buildings on either side of the river—such as the eye-catching Sage on the
Gateshead side—probably will.
The latest addition to this ongoing cultural and architectural renaissance involves
the Queen Elizabeth II Bridge, which was opened in 1981 to carry the Metro light
railway between the two cities. Last year, renowned artist Nayan Kulkarni was
commissioned to incorporate a lighting installation into the 360-meter long structure.
Christened Nocturne and recently unveiled to the public, the result is an ever-changing
color and light scheme powered by low energy LEDs which has been specifically
designed so that a particular lighting combination will never repeat itself, as the
brightness and intensity of color rises and falls to match the tide of the river below.
A new coating system to accentuate the effect of this innovative lighting display was
also required, one which would provide long-lasting color retention. In addition, the
system had to provide an aesthetically pleasing finish during daylight. Akzo Nobel’s
International Paint business was chosen to supply the products for this prestigious
project, with the high performance Interfine ® acrylic polysiloxane system being
specified for what is now one of the largest permanent art installations in the UK.
“The design of the paint scheme followed the same principles as those applied by
the artist to the lighting,” explains Jason McArdle from structural and civil engineers
Fairhurst and Partners. “As part of an overall artwork, the scheme is determined by
the form of the bridge itself.”
Adds Kulkarni: “The three colors (blue, white and dark brown) seek to emphasize
the primary shapes and place in shadow, or background, other less important
elements. The white areas within the steel trusses have a dual
purpose. Firstly, they create the simple pattern I wanted to expose
Nocturne by numbers
in the bridge. Secondly, they provide a surface onto which subtle
colors can be projected at low power.”
• Nocturne cost around GBP 317,000, most of which has been
But the Queen Elizabeth II is not the first bridge over the River
funded by arts grants, and is expected to be in place for the
Tyne to be coated by Akzo Nobel. Just a few hundred yards away,
next 15 years
• The light comes from 142 LED fittings hidden in the structure of
the award-winning Millennium Gateshead Bridge—opened in 2000—
the bridge, which consume less power than a domestic dishwasher
also features a high performance protective coatings system supplied
• An interactive website allows members of the public to
by International Paint, while the nearby The Sage Gateshead music
choose the colors of the light scheme—which has more than
and arts center features International’s Intergard ® and Interthane ®
two billion possible combinations—on an ever-changing basis
• The finished work will be seen by more than eight million
coatings on all its structural steel.
people who use the neighboring King Edward VII railway
However, it’s Nocturne which is currently basking in the limelight,
bridge every year
much
to the delight of Chief Executive of Newcastle City Council,
• Nayan Kulkarni was chosen from more than 15 artists who
Ian Stratford: “The bridges that span the Tyne are recognized around
expressed interest in the commission
• Nexus, owners of the Metro light railway system, have been
the world and have contributed significantly to the regeneration of
investing in public art for 30 years.
the area. In Nocturne, we have another unique artistic project which
I am sure will achieve iconic status for the QEII Metro Bridge.” n
n o ct u r ne
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A k z o N o b e l M A T T E RS
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Having
a ball
When it comes to supplying products for the
manufacture of golf and tennis balls, Akzo Nobel
is in championship form.
transformation
Although it might not be immediately apparent, Akzo Nobel actually
plays a major role in the manufacture of golf and tennis balls, through
the company’s Coatings and Chemicals activities. Both sports have
benefited from advances in technology over the years, with the humble
golf ball perhaps having undergone the most obvious transformation.
Once stuffed with goose or chicken feathers—and made out of wood
until the early 17th century—the golf ball is now a sophisticated,
hi-tech piece of engineering. Not only is the number of dimples crucial,
but they are also available in a wide variety of playing characteristics
to suit the needs of golfers of different proficiency.
A key part of any golf ball is its coating. This helps to determine
durability, as well as influencing the flying characteristics. “Without
a coating the plastic will scuff, absorb grass stains and go yellow,
which will impact on the flight of the ball,” explains Vladimir
Shteynberg, Director of Sales and Technology for the company’s
Specialty Plastics business, who is based in Illinois in the United
States. “Most balls nowadays are made out of two types of substrate,
urethane or Surlyn. If the ball is made from urethane stock, then we
always put a white primer or basecoat on and then on top of that goes
a clear topcoat. If the ball is made out of Surlyn stock, white primer
is not required because Surlyn is a white color and it doesn’t yellow.
We only put on the clear topcoat. So that might be clear primer and
then clear topcoat, or clear topcoat directly on to the plastic.”
Shteynberg adds that the coatings supplied are specially designed to
be used on golf balls. “The chemistry has been used in other
applications, but these formulas are specific to the golf balls. They have
unique characteristics of toughness, adhesion and flexibility, speed of
drying and non-yellowing. So they are pretty much unique to the balls.”
exhilaration
A single golf ball only requires around 150 to 200 milligrams
of coating per coat of application, but with millions being produced
around the world every year—estimates value golf as being a
USD 7.1 billion industry—manufacturers need a regular, plentiful
supply. Some of the most important production sites are in the
United States, and while Akzo Nobel supplies coatings for nearly all
of the biggest names, such as Wilson and Top-Flite, the only brand
Specialty Plastics doesn’t coat is Titleist. This is where Akzo Nobel’s
Polymer Chemicals business comes in, because they supply a crucial
product which is used in the manufacture of all Titleist balls—and
by other leading brands. To the casual observer, today’s balls may
t
S
ports fans could argue for eternity about which
event or activity is the most popular. Put a
Canadian, an Australian, an American, an
Englishman and an Indian together in the same
room and—quirky accents aside—the difference
of opinion would reach Olympic proportions.
But two sports that have almost universal appeal—and
which hit peak popularity during the warm summer months
thanks to championships such as the U.S. Open and
Wimbledon—are golf and tennis. The likes of Tiger Woods
and Roger Federer are instantly recognizable around the
world, due in no small part to the celebrity status which seems
to automatically attach itself to global sporting success these
days. The knock-on effect for their respective sports is also
substantial—what ten pin bowling or archery wouldn’t give for
a worldwide superstar of David Beckham proportions.
For all sportsmen and women, natural talent obviously goes
a long way, but in many cases the equipment they use can make
the crucial difference between success and failure. An ice hockey
player won’t just use any old stick for example, while most selfrespecting sprinters will insist on having a pristine pair of spikes.
And one can only imagine what would have happened to Michael
Schumacher’s Formula 1 career if his car hadn’t been firing on all
cylinders. When it comes to golf and tennis, however, it’s perfectly
acceptable to talk balls. Because if the object you’re smashing,
thrashing and caressing around the course or the court isn’t up to
the job, then you could well be staring defeat in the face.
sports balls
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A k z o N o b e l M A T T E RS
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look the same, but the secret lies in the high quality solid core. Made
from materials such as Trigonox ®, a cross-linking peroxide produced by
Polymer Chemicals, they deliver the distance, feel and spin most top
professionals demand.
In the world of tennis, it’s—if you’ll excuse the pun—a different ball
game. In the early days, balls were often made of leather stuffed with
hair or wool. The stomach of a sheep or goat was also involved, but
we won’t go into that. What’s irrefutable, however, is the importance
of the ball itself. As an advert from 1905 puts it: “The game that
quickens the eye, steadies the hand, and sets the whole body tingling
with a delightful exhilaration, depends on the ball.”
Up until ten years ago, players only had two types of ball to choose
from—pressurized (which dominate the professional game) and
pressureless (which arrived on the scene in 1955). But in 1997, Swedish
manufacturer Tretorn (now owned by Puma) launched the Tretorn Micro X,
an innovation so groundbreaking that the International Tennis Federation
introduced a whole new classification—micro-cellular technology.
The new ball proved so pioneering because instead of using
pressurized air or a sturdier rubber core to produce the all-important
bounce, the Tretorn Micro X relies on millions of air-filled micro-cells,
which are supplied by Akzo Nobel’s Expancel business—the world’s
leading producers of expandable microspheres. “We supply Tretorn with
expanded and unexpanded microspheres, which are used inside the ball
to achieve exactly the right performance,” explains Expancel’s Global
Marketing Manager, Lars Göran Berglund. “You expand the microspheres
inside the ball so that you get the right hardness and bounce and that
then lasts forever. It doesn’t diminish over time, which is what happens
with pressurized balls. That’s why they are changed regularly during
professional tournaments.”
The process sounds relatively simple. You fill the two halves of a
rubber ball with a mixture of expanded and unexpanded microspheres
(small, spherical plastic particles which encapsulate a gas) and vulcanize
the two halves into one ball. The heat involved causes the microspheres
to expand and fill the cavity inside, which is how the revolutionary result
is obtained. “The tricky thing, besides the rubber core itself, is to get
just the right amount of micro-cells inside the rubber core,” Tretorn’s
Balls through the ages
•
Golf as we know it was first played with a leathercovered ball stuffed with goose or chicken feathers
•
The first “gutta” ball is believed to have been made in
1848 from gutta-percha packaging material (guttapercha is the evaporated milky juice or latex produced
from a tree most commonly found in Malaysia)
•
The hand-hammered gutta was created by hammering the
softened ball with a sharp edged hammer, giving the ball
an even pattern which greatly improved its play
•
Many early brands used the bramble pattern, with a
surface similar to the berry
•
The rubber ball was invented in 1898 and featured rubber
thread wound around a solid rubber core
•
Early tennis balls were commonly made from a woolwrapped stomach of a sheep or goat and tied with rope
•
Tennis balls dating back to the reign of King Henry VIII
were discovered to have been made from a combination
of putty and human hair
•
With the introduction of lawn tennis in the 1870s,
vulcanized rubber was used to manufacture balls
•
The first hand-sewn, wool-coated balls were supplied
to Wimbledon in 1902
•
More than 250 million tennis balls are now made
worldwide each year.
Joakim Appelqvist elaborates. “Too much and the ball is too hard, too
little and it’s too soft.”
He adds that the Tretorn Micro X—the only ball to feature
Expancel ® —offers the best of both worlds. “It has the durability of a
pressureless and the feel of a pressurized ball. More than a third of our
business is now generated by the Tretorn Micro X, which is considered
by many to be the best tennis ball in the world—and this figure is
increasing. For the majority of the market—the 90 percent made up
by amateurs and recreational players—this is by far the best ball.”
It’s estimated that around 700 million Expancel microspheres go
into each Tretorn Micro X ball, which is a huge concentration.
Unexpanded, they are about ten microns in diameter, increasing to 40
microns when expanded. But it’s not just tennis balls that benefit from
Expancel’s unique properties. “Our biggest application is thermoplastics
and injection molding parts, the most common one being shoe soles,”
says Berglund, who is based in Sweden. “Another big application is
printing inks, when you want to have three-dimensional prints for
wallpapers or textiles for example. It’s also being used more in sound
insulation and surface effects. But we’re finding new applications all the
time.” So it would appear to be game, set and match Expancel. n
In brief
Historic coatings plant Chairman reveals
new China targets
opened in russia
Akzo Nobel’s Powder Coatings business has
officially opened its first production plant in
Russia on a site which offers ample capacity
for future expansion.
The facility is situated in the industrial
belt surrounding Moscow at OrekhovoZuevo. The EUR 13 million investment
places the company at the heart of the
Central and Eastern European market
for industrial coatings, of which Russia
has a 46 percent share.
“This plant is part of an ongoing expansion
of our activities in key geographic regions,”
said Akzo Nobel CEO Hans Wijers. “We
realized some time ago that local production
was necessary in order to supply the service
expected by our customers, and to keep
up with rapidly growing demand. The
beauty of this site is that two-thirds remains
free for future development, which opens
up further strategic opportunities for all
our businesses.”
Powder Coatings has been very active in
Central and Eastern Europe during the
last few years, an area which has a GDP
equal to that of China. As well as recently
expanding its site at Opava in the Czech
Republic—the first phase of a EUR 5
million refurbishment—the business has
also established a warehouse in Hungary
and has a dedicated, state-of-the-art
distribution warehouse in Poland.
Opening a production facility in Russia,
however, is perhaps the most significant
development, given that in 2006,
80 percent of the powder coatings used
in the country was imported.
Two production lines have been installed
and are operating at the new facility,
with another two scheduled to be up and
running by mid-2008. Powder Coatings
now operates 28 plants worldwide.
New r&D facility
inaugurated in uk
News
round-up
n Akzo Nobel’s 2006
Annual Report has been
recognized in a highly
prestigious global
competition which
attracted 2,500 entries.
Organized by the
League of American
Communications
Professionals, this year’s
CEO Hans Wijers has announced new
International Paint has officially opened
coveted Vision Awards
strategic targets for China which outline
its new EUR 7.3 million R&D Technology and ranked Akzo Nobel in
Akzo Nobel’s ambition to achieve revenues Administration Center at Felling, Gateshead, 49th place, with the
totaling USD 2 billion by 2012.
in the UK.
company’s Annual
Rapid expansion in recent years has
The facility is part of International’s
Report being one of only
seen the company significantly increase
ongoing development plans and follows
four in the Chemicals
both its presence and its sales in China,
a previous R&D investment at the site
sector to receive a Gold
and the chairman—who expects 20
completed in 2004.
award. The company was
percent of revenues to originate from
It will serve International Paint’s worldwide also the highest ranked
the Asia Pacific region by 2012—is
Marine, Protective and Yacht Coatings
Dutch-based entry.
confident that this accelerated growth
businesses and is now in one central
momentum will gain further impetus as
location, replacing previous laboratory
n CEO Hans Wijers
the investment continues.
facilities which had evolved around
recently fulfilled a
“China is clearly fundamental to our global buildings dating from the 1920s.
childhood ambition
strategic vision and we are fully committed “The opening of the new center at Felling is when he guest edited
to expanding our activities in what is one
a major boost to our R&D capabilities,” said a leading Dutch
of the world’s most important emerging
Felling-based worldwide R&D Manager
business magazine.
markets,” said Wijers (pictured).
Charles Holleyman.
Wijers–who as a boy
“We have revised our sales target for China “We believe that these facilities, together
wanted to become a
a number of times in recent years and this with our technical know-how in formulating journalist–was invited
reflects not only the extent of our ambition, and end-use evaluation, will give us a very
to be the first ever
but also the confidence we have in the
significant competitive edge in the future
guest editor of
sustainable success of our businesses.
development of new products for the marine, Management Team–
“By hitting our targets we will have
protective coatings and yacht markets.”
the biggest business
quadrupled our revenues in China in well
The two-storey building—which features
magazine in the
under ten years. We also expect the Asia
the very latest health, safety and
Netherlands with a
Pacific region to have almost doubled its
environment systems and technologies—
circulation of more than
contribution towards the company’s global houses central technical and analytical
140,000. The publication
revenues in the next five years.”
departments, IT systems and administration, now plans to have a
The last few years have seen significant
training and conference facilities, together
guest editor once a year.
Akzo Nobel activity in China, where the
with syndicate and meeting rooms.
company’s 2006 revenues totaled
Special guests at the opening ceremony
n Akzo Nobel’s recently
USD 800 million. As well as recently
included the Mayor and Mayoress of
retired General Counsel
announcing a EUR 250 million investment
Gateshead, Councillor David Lynn and
and Director of Legal
for a new chemicals multi-site in Ningbo,
Mrs Susan Lynn, and General Manager
Affairs, Jan Eijsbouts,
Akzo Nobel has also opened new coatings of International Paint’s worldwide
has been awarded the
facilities in Suzhou, Langfang, Tianjin
operations, Bill McPherson.
prestigious Dutch royal
and Jiashing, bringing the total number of Akzo Nobel is the global market leader
distinction of Officer in
plants to 22 and the number of employees in marine paints and antifouling coatings
the Order of Oranjeto almost 5,000.
used in shipbuilding, ship maintenance
Nassau. Mr. Eijsbouts,
and repair, and by yacht and other
who retired on June 1
pleasure craft owners.
following a distinguished
Through the International brand name, the 18-year career with the
company also manufactures fire retardant
company, was officially
products for large plants and offshore
presented with the
installations, as well as protective coatings honor by the Mayor of
for structures such as bridges and stadiums. the Dutch town of Zeist.
IN brIEf
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Akzo NobEl MATTErs
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11
Remote areas of Iceland rarely receive major news coverage,
FORGED IN THE
fJorDs
but the construction of a new aluminum smelter, which features
coatings supplied by Akzo Nobel, recently hit the headlines.
O
n the east coast of Iceland stands the town of Reydarfjordur.
Close to the Vatnajokull icecap, it’s located in Europe’s
largest wilderness after the Arctic archipelago of Svalbard.
Unsurprisingly, the area is sparsely populated, with
Reydarfjordur—almost 435 miles from capital Reykjavik—
being home to less than 1,000 inhabitants. Most of us are unlikely to
have even heard of the place, until 2003 that is, when the world’s largest
aluminum producer, U.S.-based Alcoa, quite literally put it on the map.
That’s when Alcoa announced plans to build a 340,000 ton per year
aluminum smelter three miles from Reydarfjordur, which—locally at least—
is noted for its stunning scenery, Word War II museum and huge fjord.
Known as Alcoa Fjardáal (Fjardáal means “Aluminum of the Fjords” in
Icelandic) and costing more than USD 1 billion, Alcoa’s new smelter was
designed to be the most environmentally-friendly aluminum production
facility in the world.
Earlier this year, the facility—part of the most extensive single
investment in the history of Iceland—was officially opened, when Tomas
Mar Sigurdsson, Managing Director of Alcoa Fjardáal, said: “We have
utilized the best knowledge and technology available, both when it
comes to the aluminum production itself, protection of the environment
and constructing one of the most modern and technologically-advanced
aluminum smelters there is.”
Environmental considerations were central to the entire project, with
the smelter operating under the most restrictive ambient air quality
standards in the world. In 2003, Alcoa also launched the Icelandic part
of its Ten Million Trees program, which involves planting a total of ten
million trees near Alcoa locations all over the world until the year 2020.
The massive development near Reydarfjordur (which has created around
750 jobs) was handled by renowned global construction, engineering and
project management company Bechtel, who turned to International Paint—
part of Akzo Nobel—to supply protective coatings for large areas of the
vast facility. “Bechtel standard practice is to define the paint systems for
the various project applications and select the suppliers based on their
experience and ability to deliver worldwide quality products consistently,”
explains Joe Wahba, Fjardáal Project Manager for Bechtel.
Due to the sheer scale and global nature of the construction program
(steel fabrication and application of coatings took place in numerous
countries), International’s worldwide capabilities proved crucial. In Canada,
the company worked with Bechtel on the specification for the coatings
systems, while more than 250,000 liters of International’s protective
coatings were supplied from China—Intergard ® was used to provide
protection for internal structural steel and handrails, Interseal ® and
Interthane ® for exterior exposed steel. In France, Intertherm ® was
applied in two colors to steel areas which required high heat protection,
and in Portugal, Interseal and Interthane were used to provide long-term
protection to exterior exposed steel, while products from the Intertherm
range provided high heat and corrosion resistance. Meanwhile, on site
at Fjardáal, Interzinc ®, Interseal and Interfine ® polysiloxane were all used
for general paint applications and touch up.
“For global customers, supplying a core range of coatings manufactured
to the same, rigorously controlled standards and formulations worldwide
provides real added value, as well as peace of mind,” says Jean Mayrand,
Engineering and Architecture Senior Account Manager for International
Protective Coatings. “It also facilitates other value added benefits, such
as unparalleled product support locally through technical and commercial
disciplines, and with regards to health, safety and environmental matters.”
The process of aluminum smelting is highly energy intensive, due mainly
to the large amount of electrical power needed. Many of the world’s
aluminum smelters are therefore located in areas close to major power
resources and very often these are remote, sometimes harsh environments,
where electricity is generated specifically for the plant. In Fjardáal’s case,
a 22-square mile reservoir provides hydroelectric power.
And the Prime Minister of Iceland, Geir H. Haarde, is in no doubt
about the benefits the new Alcoa facility is bringing to the country. “Alcoa
Fjardáal will be a tremendous lever for the economy of east Iceland and a
great addition to the Icelandic economy and society in general.” n
About aluminum
•
Aluminum is a vital metal in the global economy, exceeded only by iron in terms
of quantity and worldwide value. It is used in many different applications, from
industrial uses in the automobile, aircraft, marine and paint industries, to use
in consumer products such as cans, foil and cooking utensils.
•
One of the most important characteristics of aluminum is its ability to be
recycled with relative ease. In fact, producing recycled aluminum requires
less than 10 percent of the energy needed to produce new aluminum.
•
Smelting is the process of extracting aluminum from aluminum oxide (alumina)
through electrolytic reduction. The fundamental component of a smelting
operation is the electrolytic cell, or pot, in which this reduction takes place.
•
During smelting, large amounts of current pass through molten alumina
dissolved in a 920-980° Celsius cryolite bath. This process separates out
aluminum metal for removal and casting. Smelters typically operate
hundreds of pots, linked electrically in configurations called potlines.
AluMINuM sMElTEr
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In a field trial of Ferrazone in Kenya, iron deficiency was reduced in
children who ate fortified porridge by 50 percent at low fortification
levels and by 90 percent at “normal” fortification levels within five
months. By comparison, the trial showed the most common form of iron
currently used for fortification did not reduce iron deficiency at all. “The
trial was launched in 2004 and it has provided scientific evidence that
Ferrazone is the most effective non-meat form of iron on the market,”
adds Smith. “The fact that the results were recently published in The
Lancet—one of the world’s most prestigious and influential medical
journals—means that the potential of the product is being recognized by
medical and health communities worldwide.”
Ferrazone is now becoming a key ingredient in national and
international food fortification programs—particularly in developing
countries where iron deficiency is prevalent.
“Although Ferrazone is somewhat more expensive than other forms of
iron, it only costs US$ 0.10 a year to provide one person with enough
iron to prevent most iron deficiency,” says Smith. “This is within the
means of all but the poorest individuals in developing countries. Some
food companies even absorb part or all of this cost themselves in
fortified foods.” Governments also can absorb this modest cost.
FERRAZONE
in the SPOTLIGHT
An iron compound developed by Akzo Nobel is continuing to gain
widespread recognition as its effectiveness in helping to combat
iron deficiency attracts attention from around the globe.
I
ron deficiency is the most widespread nutrition-related health
problem worldwide. As health experts call for a global effort to tackle
the problem through the fortification of staple foods, Akzo Nobel is
providing a vital ingredient in the formula to improve the health of
billions of people with its unique iron compound, Ferrazone ®.
Otherwise known as Ferric Sodium EDTA, Ferrazone proves to be much
more effective than conventional forms of iron, many of which cannot be
absorbed by the body in numerous diets. Produced and marketed by
Akzo Nobel’s Functional Chemical business, it is set to play a major role in
reducing and eliminating iron deficiency and associated deaths and illness.
“Iron is a particularly difficult compound to add to foods,” says
Geoff Smith, Global Director, Health Chelates of Akzo Nobel’s
Functional Chemicals business. “Several years ago we were approached
by a scientific health organization who had identified the need for
a more effective alternative to products already on the market and
linked into promising research and development. Ferrazone enhances
absorption by stopping the iron from binding to absorption inhibitors
in the diet called phytates—which prevents the iron being absorbed
in the intestine—making Ferrazone more ‘bioavailable’ than other
iron forms.”
sHElf lIfE
Fortifying foods with iron poses several challenges for the food industry
in addition to the bioavailability issues, most notably, effects on color,
taste, and the food’s shelf life. Akzo Nobel, as well as other independent
scientists, has shown that wheat flour fortified with Ferrazone copes much
better in storage than when other forms of the mineral are added.
In addition, Ferrazone can be used to fortify other staple whole grain
flours, such as maize or rice flour. “These grains can be more important
than wheat in the diet of many people in developing countries, but they
are more difficult to fortify effectively because of a high phytate (phytic
acid) content,” continues Smith. “This inhibits the body’s absorption of
most iron forms. However, our research shows that Ferrazone provides
optimal effectiveness when added to flour made from these grains.”
For the last four years, Akzo Nobel has been supplying Ferrazone to
developing countries such as Vietnam, China, The Philippines, Brazil,
Colombia, Thailand, and Pakistan, where iron deficiency is a major
problem. “We are now working together with national and international
health authorities in these, and other countries, playing a vital role in
their food fortification programs,” notes Smith. “Many iron fortification
programs in the past have not achieved their expected results due to
bioavailability issues. The World Health Organization issued new
fortification guidelines last December which establish Ferric Sodium
EDTA as their number one recommendation for fortifying whole grain
flours and high-peptide sauces such as soy sauce and fish sauce.
Fortification programs which include Ferrazone are set to reduce iron
deficiency by as much as 80 percent.”
Most recently, Pakistan’s Ministry of Health announced its aim to
introduce universal fortification of wheat flours with iron and folic acid
by the year 2013, and has selected Ferrazone for use in its National
Wheat Flour Fortification Program. Funded in part by GAIN, the Global
Alliance for Improved Nutrition, the program has been designed to
reduce iron deficiency anaemia in children from 30 percent to
10 percent, and in women of reproductive age from 50 percent to
18 percent. It has been demonstrated that young children who are iron
deficient suffer reduced cognitive development, which is irreparable,
and reducing iron deficiency in these children is a high priority. The
national program is expected to form a model for other developing
countries for incorporating fortification in their health plans, and also for
private companies who fortify their commercial formulations. Akzo Nobel
is also cooperating with partners to develop formulations to provide all
essential vitamins and minerals.
rECoGNITIoN
Smith explains that Ferrazone has already been used effectively in health
programs involving the fortification of soy and fish sauces, as well as
staple flours, and is being marketed as a GRAS (generally recognized as
safe) product following official recognition by the U.S. Food and Drug
Administration last year. Akzo Nobel is also progressing with its plan to
supply Ferrazone further in Western markets, where iron deficiency is
not so widespread, but which still has deficient population groups. It has
long been available as a supplement in the UK and France and is currently
awaiting EU approval by the EFSA (European Food Safety Agency) so that
it can be more widely distributed in Europe in special foods.
“Ferrazone has the potential to help billions of people worldwide
and assist towards reaching international Millennium Development
Goals of reducing child malnutrition significantly by the year 2010,”
concludes Smith. “We will continue to move ahead collaborating fully
with international and national public and private bodies all over the
world towards achieving these goals.” n
Globally significant
Iron deficiency ranks among the top ten health issues globally according
to the WHO (World Health Organization). Affecting around three billion
people worldwide, it can cause anaemia and other serious and lifethreatening complications such as increased mortality in childbirth,
impaired cognitive development, and diminished work capacity.
Women and children are particularly vulnerable. UNICEF estimates that
iron deficiency undermines the health of more than 500 million women
of reproductive age and severe iron deficiency leads to the death of
60-100,000 women in pregnancy and childbirth each year. It can
also irreversibly impair the cognitive development of young children.
Nevin Scrimshaw, President of the International Nutrition Foundation
and Senior Advisor to the UN University’s Food and Nutrition Program,
has spelt out the significance of these findings in stark terms: “Forty to
60 percent of children in most developing countries are suffering from iron
deficiency anaemia and nearly as many more have functionally significant
iron deficiency. Prevalence rates are particularly high and devastating in
their functional consequences for children aged six months to two years
when the brain is continuing to grow. An increasing body of evidence shows
that iron deficiency in infancy impairs brain development by mechanisms
that include reduced myelination of cranial nerves and fewer dopamine
neurotransmitter cells in the brain. The result is significantly lower I.Q.
scores and behavior problems that persist and become even more
significant in later childhood and adolescence.
No country should allow such a massive, but preventable loss of mental
capacity and no country can afford the impact of such loss on the
effectiveness of educational investments and on the overall productivity of
these children when they become adults in societies in which cognitive and
social skills are becoming increasingly important for national development.”
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The global drive
for R&D
A look at the increasing importance of research
and development to Akzo Nobel’s
Car Refinishes business.
W
Global scale
Adds Director of Research Klaas Kruithof: “We’re a multinational company, but sometimes our Dutch roots are still visible. Our business’ research
facilities have always been associated with Sassenheim in the Netherlands, which is historically the heart of Car Refinishes. So it’s only natural that
Dutch culture played an important role in our development, and we tended to focus on our main markets, Europe in the beginning, followed by the
t
hen they leave the showroom, they practically
sparkle. But inevitably, the scars accumulate. Dings from
shopping carts. Scratches from bikes and shrubs. Dimples from
flying stones. Dents that bear the suspicious traces of a neighbor’s SUV.
And other less easily identifiable blemishes. Or worse yet, entire panels of once
flawless gleaming metal misshapen into useless, twisted flaps of scrap. You simply can’t expect a
brand new car to remain in perfect shape, even if you trade it in every year or two.
Patching up the damage may seem like a simple exercise. There’s the garage down the street, or the dealer out by
the freeway, it’s just a question of deciding who to give the job to. But in fact, there’s a whole lot of science that goes into
making certain that the mended fender looks brand new, and the color matches the rest of the car.
So much science, in fact, that Akzo Nobel Car Refinishes operates three international research centers housing around
500 scientists and technicians to make sure that no matter what kind of car you drive—whether an old classic or the latest
luxury model—a skilled professional can restore the paintwork to pristine condition.
Earlier this year, Car Refinishes inaugurated a 2,800 square meter (30,000 square foot) extension to the Bangalore International Research Center
it opened in 2002—nearly doubling the size of the facility. No one denies that there are important economic advantages attached to operating a research
facility in India, but Akzo Nobel’s commitment to India goes far beyond that. Bangalore offers a unique combination of benefits for the company. “Bangalore is
not just an internal outsourcing facility,” stresses Car Refinishes General Manager Jim Rees. “A large part of our future success in color and technology will
come as a result of the successes we are having in Asia. This facility and its people are using their local expertise to bring us global benefits.”
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East meets West
It’s not surprising that Car Refinishes General Manager Jim Rees and Director
of Research Klaas Kruithof flew out from the Netherlands to India to attend
opening ceremonies marking the completion of the business’ International
Research Center expansion.
But the opening ceremonies in Bangalore (pictured opposite page top and
bottom) were not quite like the ribbon-cutting exercises that have come to be
standard practice at the conclusion of major construction projects. The opening
included a traditional Indian ceremony called a “puja,” which is performed to
show respect for the gods. Bangalore Center Director Sudha Dantiki explains:
“Whenever a building is built, we hold a puja to seek the blessing of the gods
and to make sure that we will have success in the future. For the ceremony to
open the new wing of the center, we actually had three different types of puja.”
The first puja, performed by Dantiki, was for the Hindu god Ganesh. “In this
particular ceremony, we are asking that there be no obstructions in the future.
Then we had another one to seek good fortune in this business. And that was
perfect for Jim Rees. The third one was to seek knowledge, and appropriately
enough, that was conducted by Klaas Kruithof. It worked out very well for all
of us. I think it’s a really good example of how we are blending East and West
in this facility, where the local employees are meeting the needs of a westernbased company and filling the demands of western culture, while the company
itself shows respect for the local culture.”
Americas. But the world—and our business—has changed. It’s all about
global scale, and global capabilities. One of the advantages of having
a facility in Bangalore is that it will help us to expand our cultural base
around the world.”
He adds that the supply of highly skilled scientists and technicians
with outstanding English language skills is especially important. “You
have an additional window on the world when you also have people in
Asia,” continues Kruithof, who points out that Car Refinishes may be
a global business, but the markets are mostly local, so it remains
important to have close contact with those local customers.
Another reason to be present in India is, of course, to be prepared
for the future. The business’ share of the Indian market is still relatively
small, and the small, low-tech body repair shops still exist—it’s not
uncommon to see someone re-painting a car under a tree using
25-year-old technology. But the market is expanding rapidly and
standards are improving, so the Bangalore facility can play a major
role in meeting upcoming market needs.
Bangalore, however, is integral to the entire global research network,
not just India. It’s one of a trio of Car Refinishes research centers,
the other two being located in Sassenheim (which is still the main
headquarters for the Car Refinishes business) and Troy, Michigan, in
the United States, the latter being located in the Detroit area close to
the HQs of the big three American car companies. “This global
distribution of research facilities offers greater flexibility in meeting
market demand,” explains Pieter Peters, the business’ Director of
Product Development, “as well as providing closer contact with
customers during the industrialization of the technologies developed
in R&D.”
He goes on: “We allocate research activities to the three centers
based on available resources and available competencies. And the
market also exerts an influence. So in Sassenheim, we’re historically
more active in the development of waterborne products, because of the
needs of our European operation. In the United States, we still do more
research on high solids and low-VOC products, although the demand for
waterborne products is rapidly increasing now in this part of the world.
In Bangalore, we’ve focused during the past five years on building up a
lot of expertise in color and pigments. So we look to Bangalore for
developments in those fields. At the same time, it’s a perfect match to
the boom of new pigment suppliers popping up in this part of the world,
which gives the traditional suppliers a hard time, while we reap the
benefits of better prices.”
Collaboration
According to Sudha Dantiki, Director at the Bangalore Center, R&D at
Car Refinishes is a truly collaborative effort. “We have some special
knowledge here, so sometimes another center will call on us for help
in a particular area, and we do the same for them. Knowledge transfer
from one center to another is key for cost efficient R&D. After all,
the wheel should only be invented once! In fact, some people in our
R&D organization have jobs dedicated to the facilitation of knowledge
management within our discipline.
“For example, we were looking for a high performance, fast-drying
primer surfacer. They had done some basic work on this in Sassenheim
in the past, but we had some specific technological expertise in
Bangalore on optimizing the combinations of pigments and extenders
used in fillers. We applied that knowledge to develop a new product
recently launched as Sikkens Autosurfacer Rapid ®, a product which
saves both time and energy. We sometimes refer to it as the fastest
traditional primer for car refinishing on the planet,” he adds with a
smile, “and that may even be true!”
He attributes this success to excellent teamwork and contributions
from colleagues around the world—in the R&D laboratories,
manufacturing, technical service and product management. Indeed,
cross-functional teamwork with colleagues in different countries is an
integral part of the work ethic at the Bangalore R&D Center.
Dantiki is himself an example of the global nature of the business. Born
not far from Bangalore, he earned two degrees from universities in both the
United States and India, and he worked in the U.S. car refinishes industry
for nearly 20 years. Now, thoroughly familiar with the demands of westernoriented consumers and business practices, he has come full circle. “I knew
that Sudha was thinking about returning to India,” says Rees. “It couldn’t
have come at a better time. It’s a great advantage to have someone who
understands India as Sudha does, who possesses his outstanding
leadership qualities, and who also has such deep knowledge and experience
of how our business operates in North America and Europe.”
But what does it take to develop a new product? Besides a range of
technical skills—inorganic, organic, and analytical chemists, physicists,
applications specialists and IT specialists, among many others, are all
contributing to R&D efforts—it is often best seen as a big jigsaw puzzle.
Kruithof explains that a product is usually developed in two phases. First,
the technology itself must be developed—the “building blocks” in terms of
the chemical components that will produce the performance characteristics
to meet market demands. These building blocks then have to be applied to
actual products. “It’s not difficult to understand that a universal character
of building blocks allows us to formulate towards customer demands, while
keeping complexity of our total raw material package low,” says Peters.
Typically, the technology development will take three to five years.
Product development takes another one or two years, including test
markets and obtaining approvals from the main automotive customers.
Car Refinishes recently introduced another breakthrough product—Sikkens
Autoclear ® UV—a clearcoat (colorless top layer auto repair paint) which
dries in just a few minutes when exposed to UV-A light. “It’s one of the
most important developments to come out of our labs in years, and it’s
unique in the marketplace,” states Kruithof, “particularly when you realize
that other clearcoats usually need about half an hour to dry for the same
result.” The first ideas for this technology actually date back to 1997 and
one of the main creators (Arie Noomen) retired from the company before
his invention ever became a reality.
Evolution
But new product development actually accounts for only about half of R&D’s
activities. “A lot of what we do is not revolution but evolution,” continues
Kruithof. “Developing new products may be considered the more exciting
part of the research process by our own people, but supporting our existing
products is just as important.
“A new product is like a new car in the showroom, surrounded by
guys in nice suits and nice brochures. But keeping the car on the road year
after year is down to the hard-working maintenance team in oily overalls in
the workshop. So the entrance to your dealer’s is less prominent than the
entrance to the showroom. Products need to be stable and reliable, and
much of what we do is to maintain and improve what we have. We may have
to replace a raw material because of legislation, or because it isn’t available
anymore. Or we may want to find a less expensive alternative to a material
which will deliver the same performance.”
Which begs the question, what’s the next big thing in car refinishes?
Not surprisingly, Kruithof doesn’t have a lot to say about the most
promising developments in the pipeline. “Let’s not make it too easy for
the competition,” he exclaims. “But be aware that an innovation in our
market doesn’t only mean a new type of paint.” A good example, he
adds, is the latest development in the area of colorimetry—the science
of measuring and analyzing color. Car Refinishes has been a leader in
developing the tools that aid in delivering highly accurate color matches,
and has recently collaborated with German instrument maker BYKGardner
on a tool called “BYK 6i” which measures colors from six different angles
and combines this with an image from a built-in digital camera. Notes
Kruithof: “We are convinced this tool will increase our efficiency to make
the ‘perfect match’, that’s what it’s all about in Car Refinishes.”
It may be that Kruithof is not being coy when he chooses not to predict
the next breakthrough product. “After all,” he mentions with a smile, “you
have to accept that failure is part and parcel of research, particularly
when you’re dealing with new technology development. Even today, many
of the best discoveries are the result of a failed experiment conducted for
a completely different purpose. A great innovation is sometimes nothing
more than a smart, but novel, combination of things known to the world
long before.” n
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ACo
lor
f
u
l
HIsTory
A look back at the 100-year history of coatings brand
Balakom, which recently celebrated its centenary after being
acquired by Akzo Nobel in 2006.
W
hen the residents of Opava-Komarov in what is now
the Czech Republic sold a patch of land to an
entrepreneurial businessman back in 1907, they would
most likely have scoffed at any suggestion that 100
years later, the small coatings enterprise they were
helping to launch would still be around.
But from those humble beginnings—when the tiny factory employed
less than ten people—Balakom flourished, surviving a period of
uncertainty after the Second World War and the turmoil of the so-called
Velvet Revolution in 1989 to become one of the Czech Republic’s leading
paint companies.
As the new millennium approached, Balakom had firmly established
itself as a major force in the woodcare and metal segments, with the
company’s decorative and powder coatings—which also include the Luxol
and Universal sub-brands—having become renowned for their quality and
eco-friendliness. Varnishes, enamels and lacquers had also been added to
the portfolio, while the workforce expanded to almost 200.
Then, in 2006, just one year short of its centenary, Balakom was
acquired by Akzo Nobel. Inevitably, there were some who feared an
abrupt end to 99 years of colorful history, but they needn’t have worried.
Because although there was much work to be done during the
subsequent six-month integration process, Akzo Nobel—itself steeped in
tradition—had every intention of marking Balakom’s centenary and
celebrating the people who had contributed to its success.
A major event was therefore held this summer, attended by Akzo Nobel
CEO Hans Wijers (see side story), who also officially opened a major
expansion of the powder coatings plant in Opava—where Balakom is still
based—which is now operated by Akzo Nobel’s Powder Coatings business.
“I’m delighted and privileged to be part of the 100 year celebrations,”
said the chairman, who addressed a large audience which included
customers and employees. “Balakom is a well established and well
respected company with a long and proud history and its sound
technological base has resulted in the development of a number of wellknown brands.”
He added that the acquisition of Balakom would substantially increase
Akzo Nobel’s domestic market share and provide a solid base for further
expansion in a significant emerging market. “Our ambition is to make
Balakom the number one general paint brand in the Czech Republic and
Slovakia,” continued Wijers. “We want to be a key player in this dynamic
environment and the Opava site is ideally located to serve the Central
European region.”
Since last year’s acquisition, Balakom has successfully relaunched its
brand, changing the visual appearance of the entire product assortment,
as well as introducing new product categories.
“The new ‘swoosh’ design on the entire Balakom assortment, along
with new marketing concepts such as Colores del Mundo and new
product innovations are all helping to create a strong platform for
growth,” explained Reidar Nesje, Akzo Nobel’s General Manager for
Decorative Coatings in the Czech Republic. “With strong marketing,
strengthening of the sales teams and investments in distribution, the
strength of the Balakom brand will be maximized.”
More developments are also in the pipeline, with the powder coatings
extension being the first step in a series of investments which will
Supporting Vize ‘97
As part of the celebrations to mark the centenary of the Balakom coatings brand
in the Czech Republic, Akzo Nobel CEO Hans Wijers made a special donation to
the renowned Vize ‘97 foundation during the official ceremony.
Co-founded in 1997 by famous Czech writer, dramatist and politician Václav Havel
(who attended the event), Vize ‘97 was set up to mainly provide social support,
healthcare and educational assistance to those in need. The donation was made to
show mutual support for an organization which has a similar focus to Akzo Nobel’s
own Community Program.
“We are happy to be able to offer support for projects operating in the fields of health,
social care, education and culture in the Czech Republic,” said Wijers. “These are
exactly the same areas that the Akzo Nobel Community Program is focusing on. We
are strongly committed to our own worldwide initiative and are pleased to be able to
support an organization with the same commitment and enthusiasm for offering
hands-on assistance.”
Václav Havel—who established Vize ’97 along with his second wife Dagmar Havlova—
was the tenth President of Czechoslovakia (1989 to 1992) and the first President of
the Czech Republic (1993 to 2003). Regarded as something of an icon by many of the
Czech people, he was the inaugural recipient of Amnesty International’s Ambassador
of Conscience Award for his work in promoting human rights.
upgrade and expand the Opava site. “We are investing in additional
production capacity to meet the increasing coatings needs of our powder
customers,” explained Dave Smith, Akzo Nobel’s Powder Coatings
Business Manager for Central Europe, who is based in Opava. “The
acquisition of Balakom has also given us a Central European base for our
Powder Coatings operations, which has great strategic importance given
that powder coatings are the fastest-growing segment in the coatings
industry—one in which we are clear European and world leaders. In
addition to increasing capacity, we also plan to extend our R&D and
administrative capabilities.”
Akzo Nobel Coatings has been extremely active in Central and Eastern
Europe during the last few years, an area which has a total population of
310 million (bigger than the United States) and a Gross Domestic
Product equal to that of China.
As well as the Balakom deal, the company acquired a 51 percent
controlling share in the coatings activities of Khimrezerv in the Ukraine
in 2006, while a new Powder Coatings plant was officially opened in
Russia—100 kilometers east of Moscow—in July. Powder Coatings also
has a dedicated, state-of-the-art warehouse in Poland. n
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Having put down solid roots in Brazil,
in brazil
business is now reaping the rewards as
the global demand for paper and board
continues to intensify.
T
he advent of the personal computer in the 1980s spawned a magical
phrase: “the paperless office.” Office workers around the globe
imagined that before, the memories of their PCs would suffice, and
that most of the paper on their desks could be assigned to “the
circular file,” in other words, the wastepaper basket.
It was not to be. In fact, we use more paper now than we did at the dawn
of the technological era. Vast amounts of paper—most of it for printing,
writing and packaging—are produced all over the world. A not insignificant
part of this comes from Brazil, which has an excellent climate for the fastgrowing eucalyptus trees used to make short-fiber bleached pulp. In Brazil
and many other countries across the globe, Akzo Nobel’s Pulp & Paper
Chemicals business, Eka Chemicals—the world’s leading producer of
bleaching chemicals used in the manufacture of paper pulp—provides
the chemicals required to convert wood into pulp.
sTrENGTH
“In Chemicals, we have concentrated our portfolio in the markets where
we have particular strengths, especially global strengths,” Derek Welch,
Akzo Nobel’s strategy director, told Matters a few months ago. In the
Brazilian market, the strength of Eka Chemicals is obvious. Since 1993,
sales have increased ten-fold, to significantly above USD 100 million.
Welch also made another point about the company’s Chemicals
activities: “It takes a number of years before you start reaping returns,
particularly in bulk chemicals.” In other words, long-term investments
are called for. This is precisely what Eka has been doing in Brazil in
recent years. Turnover started growing in earnest in May 2005, when the
largest single-line bleached eucalyptus pulp mill in the world went on
stream in the state of Bahia. At the same time, and on the same site, Eka
started to produce and supply all the chemicals needed by the new
facility to produce 900,000 tons of pulp annually.
Valentin Suchek (pictured), General Manager of
Eka Chemicals in Brazil, has been the driving force
of the business’ expansion in the country since he
joined the company in 1993. A forest engineer with
a Master’s degree from Syracuse, NY, his broad
experience of forest-based industries has proved
extremely valuable in realizing Pulp & Paper
Chemicals’ growth potential. The annual production
of the huge Bahia pulp mill—which is operated by
Veracel, a 50/50 joint venture between Aracruz and Stora Enso—now
approaches 1.1 million tons, with plenty of room for further expansion.
Last May, Eka Chemicals announced plans to construct another
chemical plant in Brazil to supply a new pulp mill. In some ways, this new
project is remarkably similar to the venture in Bahia. Again, a 15-year
contract has been signed, and again Akzo Nobel’s investment totals
around EUR 50 million. In addition to the facility to produce all process
chemicals for the new pulp mill, this particular investment also includes
t
out
branching
Akzo Nobel’s Pulp and Paper Chemicals
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provision for the construction of a 30,000 tons a year sodium chlorate
line at Akzo Nobel’s existing Pulp & Paper Chemicals plant in Jundiaí,
and an increase in production of chlorine dioxide in Jacareí.
To construct the new pulp mill, Votorantim Celulose e Papel (VCP)
acquired a site at Três Lagoas (Three Lakes) in Mato Grosso do Sul,
across the São Paulo State border, as part of an asset exchange with
International Paper. The greenfield site—a term used for land where no
industrial development has yet taken place—is located on the bank of
the Paraná River, known for its vast Itaipu hydroelectric plant. VCP
had to clear pastureland and buy cattle farms to expand the existing
eucalyptus plantations. Throughout this process, Suchek insists that
sustainable principles were respected: “The remaining native vegetation
was preserved, especially along the creeks and rivers,” he says.
Not surprisingly for a forestry expert, Suchek waxes lyrical about
the eucalyptus plantations. “The soil, topography and climate at Três
Lagoas are ideal,” he adds. “VCP uses only seedlings of superior quality,
which are individually planted. As a raw material, eucalyptus assures
a superior homogeneity of fiber in the pulp.” Suchek goes on to explain
that young eucalyptus trees grow eight to ten meters a year, and new
sprouts from used stumps enable several harvests from the same tree.
In terms of pulp volume, a hectare yields ten to 12 tons of pulp a year.
After working in the pulp and paper industry, Suchek moved on to
Throughout the process,
sustainable principles
were respected and
the remaining native
vegetation was preserved
Eka Chemicals, which pioneered the concept of the “chemical island”
in Brazil on the site of a VCP pulp mill in Jacareí (Eka Chemicals had
already introduced the concept in the Nordic region). The term chemical
island implies that all chemicals needed by a pulp mill are managed,
stored, handled and largely produced in a separate compound on the
same site. Thus the management of the pulp mill can get on with its
own job in the knowledge that any chemicals they need are available
just across the fence. Eka Chemicals expanded and refined the chemical
island concept at the Veracel site in Bahia, and it will undoubtedly prove
its value again at Três Lagoas. “Usually, the island is situated in a corner
of the pulp mill site because of the logistics of incoming and outgoing
cargoes,” notes Suchek. “The chemicals are produced and stored within
easy access of utilities and services such as power, water, steam and
effluent, close to the woodchip cooking and pulp bleaching lines.”
challenge
Eka Chemicals’ successful partnership with VCP in Jacareí most likely
helped to secure the much larger order at Três Lagoas—also known as
the Horizonte project. Nonetheless, the competition was tough. “The
bigger the project, the bigger the challenge,” observes Suchek. For almost
a year, he was involved in complex preliminaries. “It was a very intense
phase. I think we won the contract because our company offers a wealth
of proven technology. We have built similar plants all over the world,
and in Brazil we are the market leader. Another important strength is
that we offer local specialists and alternative supply sources to solve
any technical problems that may occur.”
Suchek stresses that the Três Lagoas contract is the result of
teamwork, and that he can draw on the assistance of colleagues both
inside and outside Brazil. His first-line contact is Byron Smith, General
Manager of Akzo Nobel’s Paper & Pulp Chemicals Americas operation.
Like Suchek, Smith has nothing but praise for the team that helped
win the contract: “Val Suchek spearheaded the local contact and the
development of the proposal,” he explains. “I focused on refining it,
and I had to get ‘buy-in’ on the concept within Akzo Nobel. The climax
entailed negotiating with the client for a full day about the final
agreement, with our competitors located in the neighboring office—
pretty intense!”
Both Suchek and Smith mention the value of the experience gained at
the Bahia plant. “Bahia taught us how to operate a long-term venture of
this kind in a way that works for both partners,” says Suchek. “At the
time, Bahia was the first of its kind,” Smith recalls. “Pulp mills are rarely
near towns or cities, so there’s a lot to learn in terms of logistics,
transport and recruitment. The remoteness of the sites can make it
hard to find and train the right people.”
The chemical island at Três Lagoas, Suchek states, will need only
19 people to operate it. The management at the main São Paulo office
in Jundiaí—600 kilometers to the east—will assume overall responsibility
for it. Although the plant will not open until 2009, Suchek has no time
to relax: “We are now in the project phase. We have to finish the design
and start the construction, which will follow a tight schedule of 21 months.
The total investment in the pulp mill is over a billion dollars, but it
can only start operating when the chemicals are available. It’s a huge
commitment that requires monitoring on a daily basis.”
stature
The other side of the coin, however, is that few chemical plants are built
in the knowledge that a “captive” client on the same site is contractually
obliged to buy its entire production. Três Lagoas’ initial capacity of 1.25
million tons of wood pulp will not only make it the world’s largest singleline bleached eucalyptus mill, but will also considerably enhance Eka
Chemicals’ local and global stature as a manufacturer of pulp chemicals.
Smith, who is based in Atlanta, Georgia, puts the Eka Chemicals Brazil
business into a broader perspective: “Brazil represents around 10 percent
of Eka Chemicals’ annual turnover. From 2009, the chlorate production at
the new location will increase our turnover by USD 20 million a year, and
we will also act as handler and manager of other chemicals.”
As the fastest-growing producer of pulp in the world, Brazil’s impact on
the global paper industry is increasing apace. Brazilian wood pulp is
currently exported to Asia, Europe and North America, and large paper
manufacturing nations such as China will intensify the pressure on the pulp
market. Smith describes Latin America, and Brazil in particular, as strategic
growth markets for Akzo Nobel. “I certainly expect that the pulp industry will
continue to show strong growth. We have to plan for further investments,
because the pulp corporations will need our chemicals. We will partner
them where needed. Take it from me that our customers will anticipate
and expect us to make further major investments before 2012.” n
A Nobel idea
Facts & figures
Alfred Nobel famously wrote: “If I have
a thousand ideas and only one turns
out to be good, I am satisfied.” The
inventor of dynamite had a lot more
than one good idea, and the Nobel
Prize underscores his genius to this
day. A late idea, but one which
continues to prove a good one, is the
founding of Elektrokemiska Aktiebolaget
(Eka) a year before his death in 1896.
In 1995, its centenary year, Eka
Chemicals opened plants in Finland
and Brazil. Headquartered in Göteborg,
Sweden, Eka Chemicals currently
employs more than 2,800 people and
has production facilities in 18 countries.
Sales of Eka Chemicals in Brazil
Opening date Três Lagoas:
1995
USD 15 million
March 7, 2009
2000
USD 30 million
Initial capacity:
2005
USD 60 million
All chemicals for 1.25 million tons
2010
USD 170 million (estimate)
of wood pulp
Eka Chemicals facilities in Brazil
Resulting increase in overall
• Eka Jundiaí, São Paulo State
turnover for Eka Chemicals:
USD 20 million a year
(bleaching and paper chemicals)
• Eka Jacareí, São Paulo State
Top producers of paper
(bleaching chemicals)
• Eka Bahia (chemical island) pictured
and paperboard
1. United States inset (left)
• Eka Rio (paper chemicals)
2. China
• Eka Três Lagoas, Mato Grosso
3. Japan
12. Brazil (capacity in 1000
do Sul State (chemical island
under construction).
t/a 9,049, 2% of global production)
Investment for Três Lagoas
Top producers of total pulp
EUR 50 million divided as follows:
1. United States • A chemical island producing 45
2. Canada
tons of chlorine dioxide a day at
3. Japan
Três Lagoas
7. Brazil (capacity in 1000
• A new line producing 30,000 tons
t/a 11,675, 5% of global production)
of sodium chlorate a year at Jundiaí
• A production increase to 45 tons
of chlorine dioxide a day at Jacareí.
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Wa k i n g u p t
Akzo Nobel’s Powder Coatings
business has broadened its horizons
by developing a new strategy for the
consumer furniture market.
C
olor and design have taken
center stage at Akzo Nobel
Powder Coatings with the
launch of a new initiative—
breaking into the consumer
furniture market.
As the world’s largest manufacturer of
powder coatings and a global leader in the
technology behind it, the company’s Powder
Coatings business is perhaps best known for
its industrial applications. Now, with a foray
into the consumer furniture market,
advances are being made into a brave new
world. So what’s behind the need for a new
product group?
“Back in 2003 we had five market
segments—architectural, automotive,
functional, appliance and general industrial,”
explains Emma Lawrie, Powder Coatings’
Product Development Process Manager,
who is based in the UK. “The general
industrial section was a hodgepodge of
all the items that didn’t fit into one of
the other categories, including furniture.”
Furniture can be further segmented into
interior—office, school and household—
or exterior—garden, patio, street and
park. For exterior furniture, the excellent
durability and corrosion resistance of
powder coatings make them ideal for
outdoor applications.
strategy
“When we reviewed our segmentation
strategy in 2004,” says Lawrie, “we
realized that furniture had a high enough
value to be in a category of its own.” Once
that decision was made, the next step
was to design the color palettes, develop
a marketing strategy, and launch the
new segment. The market is potentially
enormous. Furniture is everywhere—in our
homes, offices, and gardens. In fact, it’s
so ubiquitous that we often don’t even see
it. That’s where the design element comes
in—for furniture to find its proper niche, it
needs to make a statement.
“Whatever approach we take with this
initiative, in order to be competitive, we
must appeal to the ‘top of the stream’
designers, architects and stylists, down
through furniture manufacturers, marketers
and trade coaters,” continues Lawrie.
“So it isn’t just a matter of creating a new
market segment and announcing to the world
‘here we are.’ The furniture industry is very
fashion and trend driven, so our approach
has to be different than that of our
traditional segments, which tend to be more
‘industrial’ in nature.”
According to Lawrie, taking the products
to the distributors and building awareness is
essential. “As newcomers in this area, getting
a foothold in the market is the hardest part.
We’re in the process of developing marketing
materials and attending trade shows to help
create brand awareness. We also want to
let people know what makes our powder
coatings so special.”
One marketing strategy is to promote
the idea that powder coatings can create a
particular environment or mood in a room.
“We’re also focusing on the ‘green’
concept,” notes Lawrie. Powder coatings
have no VOCs (volatile organic compounds)
and very little waste. Powder coatings do
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A k z o N o b e l M A T T E RS
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27
not generate hazardous waste, as the powder is
not mixed with solvents or other additives, and
this creates an obvious environmental advantage
for both suppliers and users alike.
Powder coating MDF is attracting increased
attention within the furniture world as product
specifications and designers go in search of
environmentally-friendly finishes. With no
VOCs, lead, chromate or solvents, these
coatings are particularly safe for school and
children’s furniture.
palettes
With the heavy emphasis on design in the furniture
industry, color guru Per Nimer, Design Manager
of Akzo Nobel’s Aesthetic Center—who is based
in Malmö, Sweden—together with the Aesthetic
Center team in Sassenheim, the Netherlands,
has been brought in to work with the business in
developing palettes for several ranges.
The starting point is the Color Envelope. Every
year, a workshop for future colors is held with a
group of color specialists called Analogue, it
consists of designers and architects from all over
Europe, including two colorists from Akzo Nobel.
The outcome of this creative meeting is the Color
Envelope, a collection of 60 paint colors designed
“It’s not that you want
your home to be a
showcase—rather you
want it to reflect your
personal style. One
of the best ways to do
that is with color”
for architects, interior designers and product
designers. Rather then being categorized by hue,
the colors are thematically grouped with evocative
names such as Fat Earthy Taste, Invitation to
Darkness, and Illusion in Reflection. Each theme
contains colors from a variety of hues—so mood
is the focus rather than a particular part of
the spectrum.
With millions of potential colors to choose
from, where does Nimer begin? “I’m inspired by
many things and can get my ideas from
something I see in a magazine or on the streets
of London. I’ve got my ‘color radar’ switched on
all the time. I’m especially inspired by what’s
going on in the world of fashion. I look at trends
in general and analyze what’s happening now
with color so I can project into the future.”
Nimer has been interested in color all his
life. Much of what he does is intuitive, he says.
“Look at all the choice we have now, compared
with say 25 or 30 years ago. There’s been an
explosion in the design world. Think about all
the different styles of blue jeans, for example.
All this leads to people being able to create a
personal style with their clothing. And this
desire for a personal style extends to a person’s
home interior. It’s not that you want your home
to be a showcase—rather you want it to reflect
your personal style. One of the best ways to do
that is with color.”
With so much choice in the marketplace,
according to Nimer, Akzo Nobel needs to be
progressive in its products to move them from
being commodities to being part of the design
world. Innovation will be key to keeping up with
the competition.
A staged roll-out of products is set to begin
with the debut of the Contemporary Range in
August. Created by Nimer, the range is a
palette of 34 colors (nine solid shades and five
metallics) that focus on the most popular colors
in the furniture industry today. These shades
are the bread and butter of the industry—
whites, blacks, neutrals and metallics which
have been steady sellers for the past five years.
This stable range of favorites will stay in
place for another three to five years before
being renewed.
risks
In November, the company will launch the Trend
Range with 20 colors. “These colors take more
risks,” says Nimer. The range will be updated
annually, in line with the Color Envelope, and
will be supported by various marketing tools,
as well as a color card, which is currently in the
development phase.
“To appeal to the niche end of the market,”
says Lawrie, “we’re also developing with
Nimer a small palette of Novel Effect finishes
including textures, sof t touch and wrinkles.
We hope these effects will appeal to furniture
producers who are looking for something out
of the ordinary. In the wake of this roll-out,
the sky’s the limit!” she exclaims. “That’s
what makes this initiative so exciting. We
envisage powder for glass, MDF and wood at
various stages of construction. By updating
the Trend Range and the Novel Effects
annually, we’ll be able to provide a constant
flow of new products into the market.” n
In brief
Architects chosen
for new head office
Akzo Nobel has selected the architects
who will design the company’s new
corporate headquarters, to be constructed
in the Zuidas area of Amsterdam in
the Netherlands.
Working in cooperation with ING Real
Estate, the company sought advice from
several experts and following a thorough
selection process, the unanimous choice
was Rotterdam-based Group A.
Their preliminary designs for the new
permanent HQ—scheduled to be ready
in 2011—demonstrated that Group A
had the right vision and expertise to
create an eye-catching building befitting
a global organization.
“This is a significant development and we
are delighted to be making such good
progress with our plans for the new
corporate headquarters,” said Akzo Nobel
Board member Leif Darner. “Group A has an
excellent reputation and we are looking
forward to fine-tuning their initial proposals
and making this project a great success for
all concerned.”
Work will now begin on further develop­
ment of the preliminary designs (pictured),
with Akzo Nobel keen to ensure that
full attention is given to areas such as
sustainability and environmental issues.
The final design for the 14,000 square
meter building—to be located in the
Beethoven area of the Zuidas—is expected
to be approved by early 2008. The
company recently relocated its head office
from Arnhem to a temporary HQ in the
Zuidas district.
Responsible for designing the stunning
European head office for Saudi Arabian
company Sabic, as well as award-winning
projects such as the renovation of the
Caballero factory in The Hague, Group
A were recently nominated for the
newly-introduced Dutch Architect of
the Year award.
Mexican site receives Sikkens helping to
coveted quality award protect the past
One of Akzo Nobel’s Car Refinishes
facilities in Mexico has been presented
with a highly prestigious award in
recognition of its continued commitment
to operational excellence.
The business’ Automotive Plastic Coatings
(APC) site at Garcia in Nuevo León received
the coveted State Quality Award (Premio
Nuevo León a la Calidad) after an
exhaustive year-long audit and judging
process which put the company’s
management systems through a demanding
series of tests and reviews.
“This is a great achievement and one we
are all very proud of,” said Ivon Studer,
QHS&E Manager at the Garcia plant, who
was also project leader for the award
submission. “It’s a real benchmark which
recognizes our efforts towards continuous
improvement and confirms that we have
achieved the best practice standard which
is set by the award scheme.”
Added Conrad Keijzer, General Manager
of the APC business: “We’ve been working
towards this award for a number of years
and to be successful on our first attempt is
testament to our commitment to delivering
customer and stakeholder satisfaction.”
As part of the challenging three-stage
review process, a 125-page report was
submitted outlining the site’s ability to
achieve continuous improvement in all of
its operations and activities, including
customer and stakeholder focus, business
performance and commitment to the
environment. Finalists were then visited
by an independent group of evaluators,
who determined whether or not the award
should be granted.
Winning the State Quality Award (in the
Industrial category) is a stepping-stone
for the Garcia facility in its ambition to
achieve Mexico’s National Quality Award,
which will benchmark the site against the
best companies in the rest of the country.
Coatings supplied by Akzo Nobel are
being used to protect more than 100
historic properties located in the shadow
of Norwich Cathedral in England.
Owned and maintained by the Dean and
Chapter of the cathedral, many of the
buildings are Grade II and Grade II*
listed and the maintenance costs can be
astronomical. So in an attempt to reduce
the cost, Sikkens’ Rubbol SB has been
specified for the recoating of the external
timber detailing.
The company had previously supplied
Sikkens Rubbol AZ for all the properties,
but Estates Manager Philip Thomas was
looking for an equally protective product
—with longer maintenance properties—
for the latest redecoration. He didn’t have
to look too far, because Sikkens again
provided the solution, this time with
Rubbol SB.
“Our former maintenance program spanned
four years, with a quarter of the properties
receiving the required redecoration every
year,” he explained. “It is essential that the
products and the materials used to
renovate the timber are of the highest
quality, to maintain buildings that date
back to at least the Georgian era and some
to mediaeval times when the cathedral was
first built.“
He went on: “These were formerly
granaries and breweries for the resident
monks before being converted into
residential accommodation in the reign
of Henry VIII. So we were not prepared
to compromise upon the quality that
Sikkens Rubbol AZ provided.
“When we realized that Rubbol SB could
not only maintain this high protection
performance, but also save us money on
maintenance, it was the obvious choice.”
There are 88 residential properties on
the site, ranging from one-bedroom flats
to nine bedroom houses.
in b r ie f
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News
round-up
n Akzo Nobel has
reinforced its commit­
ment to the coatings
market in western
Canada with the official
opening of the first
Sico Paints corporate
warehouse in the
western provinces.
Based in Calgary, the
29,000 square foot,
state-of-the-art facility
will service Sico’s more
than 500 customers
from Manitoba to
British Columbia,
distributing in excess
of three million liters of
paint annually.
n Work is well
under­way in Ecuador
on a major project
being supported by
Akzo Nobel’s Educa­
tion Fund. A total of
22 schools are now
receiving vital teaching
aids such as audio­
visual equipment,
along with new fur­ni­ture, better sanitary
provisions and water
supply. Four schools
will also be renovated,
while training for
97 teachers will be
made possible.
n Employees at
Akzo Nobel’s Fort Worth
site in the United States
have received an award
for their community
efforts after excelling
during the first year of
an educational partner­ship program. The site
joined the Fort Worth
Independent School
District adopt-a-school
program less than 12
months ago, but workers
have already been
presented with a Golden
Achievement Award for
Partnership Excellence.
A k z o N o b e l M A T T E RS
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29
Bulgaria
calling
Gallery
Interesting times
Curiouser and curiouser
While studying Naval Architecture at the Technical University of
Varna in Bulgaria, I worked part-time in a ship chandler company,
helping with their foreign correspondence. One hot August
afternoon in 1993 I picked up the ringing telephone in the office.
The message I passed on to my then boss was that International
Paint was looking for a new stockist in Varna and suggested an
initial meeting.
I would probably have been even more excited than him if I’d
known at the time that this was the start of my career with
International Marine Coatings. In 1995, International established
a representative office in Varna. Bulgaria is a limited, but
challenging market and over the years we’ve encountered various
challenges and opportunities, such as keeping and improving our
market position with key customers, adding new accounts, a
bankruptcy and then the reopening of a major shipyard.
Over the years the staff has grown to four technical service
representatives, a customer service/administration officer and
myself, Country Manager. In the Bulgarian organization, I had to
learn to cope with a wide range of issues to begin with, such as
sales and technical service, as well as credit and stock control,
administration, IT—basically everything that a living business faces.
My job is also extremely varied. One day I might be at a meeting
in an office, or inside the ballast tank of a vessel, while the next I
could be at the bottom of a dry dock, or on board an aircraft
flying to the next regional meeting, roadshow, or training
program. The variety of problems, places and people is a great
feature of my job and I truly enjoy it.
In the minds of most people, Bulgaria is probably regarded as
mainly being a sunny place, offering affordable summer holidays
on the Black Sea coast. Nothing wrong with that, but of course
there is so much to add, at least from a native’s perspective. We
are blessed with a variety of nature and climate within a small
territory, with mountains up to 3,000 meters high in the south
west, rivers and plains, and—as well as the good summers—we
often experience temperatures as cold as minus 20° Celsius and
heavy snow in the winter.
Over the last 18 years, our society has witnessed some remarkable
changes, recently marked by Bulgaria’s EU membership, which
came into effect on January 1. Coveted by many and dreaded by
others, the date by itself brought no miracles. But while nothing
changed on the day, many things did start to change during the
following months—from important major, but abstract changes such
as tax and customs regimes and formalities, to small daily things
like labels on goods in the supermarket.
Positive changes are never as fast and wide-ranging as everybody
would like, and there’s no doubt that the living standards for many
people are still not acceptable. The fight against crime and
corruption is also far from being over. But it is encouraging to see
businesses and the economy starting to pick up and grow from
what used to be a complete standstill in the mid-1990s. The
country as a whole is a different world from then. So we are living
in interesting times, and in our case this should not sound like the
ancient Chinese curse.
Have we landed in a fairytale, or are
we in the middle of the filming of Alice
in Wonderland? No, funnily enough, we
are underwater.
Keith Edmier was born in Chicago in 1967.
He studied at the California Institute of the
Arts and has created special effects for the
American motion picture industry, including
devising the effects for several horror
movies. Recurring elements in his works
of art are the evocation of a certain
atmosphere, a world of fairytale and fantasy.
Just like American movies often show the
force of nature, these enormous plants—in a
way—embody the greatness of nature. The
contradiction lies in the fact that, unlike
nature, there is something very unnatural
about this work of art, with its pinkish color
and its bubblegum-like materials such as
silicone rubber.
He often allows himself to be inspired by
nature. In his approach, he uses classic
methods, such as copying forms, but he
does so with the help of modern materials.
This also goes for this gigantic pink water
lily, which was created using polyester,
resin, silicon rubber and acrylic. The
materials used have a link to some of
Akzo Nobel’s products.
This plant, the Victoria Regia, comes from
the Amazon region. It only flowers two
nights a year. Edmier thoroughly researched
the growing process of this extraordinary
water lily. What we see here, in life-size, are
the different stages of the plant’s
development. The largest pad floats on the
water and is so strong it could carry a baby.
We, the viewers, therefore find ourselves at
the bottom of the water which the Victoria
Regia grows and flowers in.
Edmier has made two Victoria Regias—First
Night’s Bloom and Second Night’s Bloom—
and worked on them for six months. Both
sculptures (Victoria Regia I & II) carry the
white flowers of the first and the pink
flowers of the second night.
In June 1999, the two sculptures were
reunited at London’s Tate Gallery. As
can be seen in the picture, taken at
Akzo Nobel’s Arnhem offices in the
Netherlands, Victoria Regia I was given
a fantastic home, right next to the water
lilies of the big pond at the front of the
main building.
The Art Foundation
Victoria Regia I (First Night’s Bloom) 1998
by Keith Edmier
310 x 325 x 338 cm
Ivailo Atanasov
Country Manager
International Paint Ltd
Representative Office—Bulgaria
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