ARNHEM, The Netherlands, June 27, 2002 (PRIMEZONE) -- Akzo Nobel has signed a contract with its joint venture partner in Korea, DPI Co., Ltd. (formally Daihan Ink & Paint Manufacturing Company Limited) to acquire the manufacturing site in Chilseo, South Korea. The site presently toll manufactures for the joint venture business, International Paint (Korea) (IPK). As part of the deal, Akzo Nobel will also acquire from DPI a further 10% shareholding in IPK.
IPK is currently a 50-50 joint venture between Akzo Nobel and DPI of Korea, selling products in both powder and the marine & protective coatings (M&PC) markets. As a result of this transaction, the existing joint venture will be split into two separate joint ventures; 50-50 powder and 60-40 M&PC.
Since its establishment in 1980, IPK has operated as a sales and marketing operation with DPI manufacturing under a toll agreement for IPK. "The purchase of this new facility and the increase in shareholding will enable Akzo Nobel to further strengthen its position in this important region, which is in line with our global strategy," said Rudy van der Meer Member of the Board of Management responsible for Coatings.
"Our International(R) coatings brand has a strong position in this market," added Leif Darner, General Manager of the business unit Marine & Protective Coatings. "Integrating the Korean factory into our global network will allow us to more rapidly meet our customers' specific requirements."
Korea is the world's largest construction market for marine vessels, with approximately 40% of the world market, and an important market for the offshore construction industries. IPK is an important supplier to the Korean marine and protective coatings market.
Note for the editor
Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2001 totaled EUR 14 billion. The Company currently employs over 66,000 people in 80 countries. Financial results for the second quarter will be published on July 24, 2002.
The Akzo Nobel business unit Marine & Protective Coatings has operations in 54 countries with worldwide sales of EUR 750 million and over 3,500 employees. Its International(R) brand name has worldwide market leadership positions in marine, protective and yacht paints.
International Marine Coatings is a technology leader in TBT-free antifoulings, anti-abrasion coatings, ballast tank coatings and fouling control systems for vessels being built, repaired or maintained. International Protective Coatings offers an extensive range of high performance coatings for the oil, gas, chemical processing, paper and pulp, steel structure and mining industries. International Yacht Paints, the worldwide leader, produces the International(R) and Interlux(R) brand names. They offer coatings with the latest and safest antifouling technology and the toughest protection for yachts, from the smallest dinghy to the largest and most luxurious superyacht.
Internet: www.akzonobel.com www.international-coatings.com
For more information please contact: Akzo Nobel N.V. Graham White,Akzo Nobel Marine & Protective Coatings, tel. +44 207 479 6193
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