On May 22, international coatings giant AkzoNobel announced the closure of its production sites in Wapenveld, the Netherlands, and Machelen, Belgium, while consolidating production at other locations in the region. All relevant parties have been informed of the planned closures and the next steps, which require consultation with local employee representatives.
The planned closures are part of the company’s long-term industrial transformation plan. On May 23 of last year, the company announced its intention to close production facilities in Groot-Ammers (Netherlands), Cork (Ireland), and Lusaka (Zambia), transferring production to other sites in those regions. This plan is expected to be fully implemented by the end of 2026. More recently, AkzoNobel has also announced plans to streamline its plant in Montataire, France.
On January 10 this year, AkzoNobel submitted a plan to employee representatives and workers in France, including an investment of €22 million to make the Montataire site a flagship for decorative paints production. The company also plans to restructure its commercial and support functions as well as its distribution network. This includes transferring some sales points to independent partners and closing others. As a result of these changes, up to 211 jobs may be cut in France, while 29 new roles will be created.
AkzoNobel stated that industrial transformation is a strategic focus aimed at improving operations and reducing complexity. By concentrating on larger, more efficient anchor sites, the company aims to lower operating costs and optimize its industrial network to boost competitiveness and drive sustainable growth. It also said that capital allocation will increasingly focus on anchor sites, enabling future innovation. Recent examples include equipment and process upgrades at its aerospace coatings site in Pamiers, France, and a new research lab in Sassenheim, the Netherlands.
Founded in 1792, AkzoNobel is a global leader in decorative coatings and the world’s largest manufacturer of performance coatings, with operations spanning architectural coatings, automotive coatings, wood coatings, marine coatings, 3C coatings, wind power coatings, aerospace coatings, packaging coatings, and more, across over 100 countries and regions.
While closing plants in many parts of the world, AkzoNobel continues to invest in other regions. For example, last year it announced plans to invest over $30 million to expand the production capacity of four powder coating plants in North America, and to expand facilities in Hanoi, Vietnam, and Como, Italy, as well as to build a new plant in Pakistan. In particular, AkzoNobel has made frequent investments in China in recent years to expand production capacity, highlighting its confidence in China’s economy and coatings market outlook.
AkzoNobel Protective Coatings (Suzhou) Co., Ltd. has invested in four projects: an annual increase of 7,000 tons of solvent-free high-performance fireproof coatings; 23,000 tons of tank lining coatings; an upgrade to the quality of the original 26,542 tons of high-performance coatings; a technological transformation project for 8,000 tons of high-performance wind turbine blade coatings; a 1,500-ton high-performance antifouling coatings upgrade project; and an 18,250-ton high-performance coatings and safety/environmental technology transformation project. The total investment exceeds RMB 60 million, mainly focused on high-demand sectors such as wind power and marine coatings.
Additionally, AkzoNobel Coatings (Tianjin) Co., Ltd. recently launched a RMB 7.4 million project to upgrade production equipment in Workshop No.1. AkzoNobel Performance Coatings (Shanghai) Co., Ltd. plans to invest RMB 15 million to expand its solvent-based packaging coatings line. AkzoNobel Performance Coatings (Changzhou) Co., Ltd. plans to invest in a new project with an annual output of 76,000 tons of high-performance coatings, including a new R&D center and warehouse, which has already been filed with the government. AkzoNobel Powder Coatings (Wuhan) Co., Ltd. also plans to invest RMB 15 million in new equipment to double its designed capacity.
The closure of several AkzoNobel plants, mostly in Europe, results from multiple factors. Firstly, persistently high energy costs in Europe have put pressure on businesses. Secondly, economic stagnation in Europe — such as in the Netherlands and Belgium — combined with inflation, has reduced demand in the coatings market, exacerbating overcapacity. In response, AkzoNobel has adjusted its capacity by shutting down certain plants and transferring production to other sites to cut costs and boost profitability amid local market challenges.
Despite the closures, AkzoNobel’s total production capacity has not decreased, nor has its business performance been negatively affected. According to its financial report, AkzoNobel’s 2024 sales totaled €10.711 billion, flat compared with the previous year. Organic volumes grew by 2%. Adjusted EBITDA rose 3% to €1.478 billion, while net income attributable to shareholders grew by 22.62% to €542 million.
In the medium term, AkzoNobel aims to expand its profitability with an adjusted EBITDA margin of over 16% and a return on investment of 16% to 19%, based on organic growth and operational excellence. “We are making AkzoNobel stronger, more dynamic, and more competitive. When our end markets start growing again, this will greatly benefit us and help us achieve our mid-term goals,” said CEO Greg Poux-Guillaume in the annual report.
Due to differences in regional markets and application sectors — including market environment, space, competition, and cyclicality — demand drivers and business performance vary greatly. This explains why AkzoNobel is simultaneously closing plants in some areas while expanding capacity in others, especially in China. Markets such as wind power coatings, marine coatings, offshore coatings, petrochemical equipment coatings, packaging coatings, automotive coatings, and other high-performance coatings in China continue to show strong growth, underlining the lasting appeal of the Chinese market to AkzoNobel.
