AkzoNobel acquires Egypt’s powder coatings venture
Dutch chemicals producer AkzoNobel has acquired a 100% stake in Egypt's Akzo Nobel Powder Coatings.
The Dutch firm has increased its stake from 60% to 100%, as part of its accelerated growth strategy for Egypt and North African region.
The deal's financial details have not yet been disclosed.
AkzoNobel executive committee member for performance coatings Conrad Keijzer said: “This is an important step in our strategy to enhance our presence in the region.
“We are now taking our operations in Egypt and North Africa to the next level and consolidating our credentials as a leader in the powder coating sector.”
AkzoNobel is in the process of strengthening its presence in the Middle East and North Africa region, by signing new joint ventures in UAE, Qatar and Oman, and recording double digit growth in the region.
AkzoNobel Middle East and performance coatings Africa managing director Peter Tomlinson said: "The full acquisition of Akzo Nobel Powder Coatings SAE will enable us to further strengthen our service levels and meet the growing demands of our customers.
"The advanced manufacturing plant will also add value to our operations, ensuring that we deliver cutting-edge and high-quality solutions for our customers."
The global powder coatings market is expected to increase at a compound annual growth rate (CAGR) of 6.8% from 2016 to 2020, to more than $11bn in value, according to industry reports.
The reports also suggest that the demand for powder coatings is expected to increase especially from packaging, automotive, consumer goods, and other sectors.
Middle East and African regions will continue to be a strong market for the industry.