Slough, UK -- AkzoNobel plans to spend around Euro 110 million ($157 million) to build a hi-tech manufacturing facility in the northeast of England, the paint and coatings company said in a 6 July announcement.
The custom-built decorative paints site is designed to enable the company to "deliver the most efficient supply chain operations, reduce operating working capital and accelerate its response to changing market and customer demands," AkzoNobel said in the statement.
The planned new facility is within 25 miles of AkzoNobel's existing site in Prudhoe, and is anticipated to be operational by the end of 2014.
The plans also include a proposal to close the company's Prudhoe site and its manufacturing operations in Slough, near London, in three-and-a-half years' time. The intention is for Slough to remain the headquarters for the UK decorative paints business and for global research and development, and marketing.
"A new facility of this size and sophistication will enable us to be more agile and competitive, while dramatically reducing our impact on the environment, due to lower energy consumption and less waste," commented Richard Stuckes, managing director of AkzoNobel decorative paints EMEA.
AkzoNobel is now entering into a period of consultation with its employees. If the project goes ahead, there will be relocation opportunities available for those "with the desired skill-set," the company said.
The company currently employs 4050 people in the UK across all its businesses. Within decorative paints, 89 people are employed at the Prudhoe site and 131 are employed in the Slough manufacturing unit.