Arnhem, the Netherlands-Akzo Nobel announced 30 May that it has gained full control of its Asian powder coatings joint venture Akzo Nobel Chang Cheng Coatings.
The transaction, which involved purchasing the outstanding 16.66 percent shares owned by main partner Chang Cheng Securities‚means that the company now wholly owns its powder coatings operations in China, Taiwan and Hong Kong, said Akzo Nobel's announcement.
"As global leaders in this sector, expanding our activities in this part of the world has significant priority and taking complete control of the joint venture will help us to strengthen our position in the fastest growing powder market in the world," explained Akzo Nobel ceo Hans Wijers, who is also the company's board member responsible for coatings.
Rob Molenaar, general manager of Akzo Nobel's Powder Coatings business added in the company statement that, "We will continue to focus on serving our customers' needs and to expand our customer portfolio in the segments in which we excel."
Molenaar also pointed out that the joint venture in China and Taiwan started in 1991 and had been very successful.
"Our Asian operations today are operating in a truly global business environment. With this acquisition, our global and domestic customers will continue to be able to achieve outstanding and consistent quality."
The transaction, which is subject to regulatory approvals, involves a total of six sites, four in China. Akzo Nobel expects the transaction to be finalised within the next six to eight weeks.
"Akzo Nobel is a top-class employer with an extremely good global reputation and the business and its employees can only benefit from this transaction, which is a very good one for all concerned," said Jack Lee, the Taiwanese entrepreneur who owns Chang Cheng Securities.