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Friday, June 21, 2024

AkzoNobel Implements Strategic Factory Closures


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AkzoNobel’s recent decision to strategically close factories as part of its efficiency plan has garnered significant attention within the industry. The move is part of a broader strategy aimed at boosting competitiveness, but the implications for local economies and employees are substantial. As the company navigates this challenging process, questions arise regarding the long-term impact on stakeholders and the overall effectiveness of this strategic shift. The complexities surrounding these closures prompt a closer examination of AkzoNobel’s industrial roadmap and the considerations driving these decisive actions.

Background on AkzoNobel’s Closure Decision

AkzoNobel’s strategic decision to close several manufacturing sites, including the Dulux Paints factory in Cork after 140 years of operation, is part of a thorough efficiency plan aimed at enhancing cost efficiencies and driving sustainable growth. This closure is aligned with AkzoNobel’s multi-year strategy to finalize its efficiency plan by the end of 2026. The company’s decision to close the Cork factory, along with sites in Groot-Ammers, The Netherlands, and Lusaka, Zambia, reflects its focus on units with scale and higher cost efficiencies. By rationalizing, upgrading, and optimizing its industrial network, AkzoNobel aims to improve competitiveness and achieve sustainable growth. The closure decisions are part of the company’s commitment to industrial excellence and strategic priorities, emphasizing the importance of informed decision-making and stakeholder involvement.

Impact of Factory Closures

With the closure decisions in motion, the impact of the factory closures is set to reverberate through the affected communities and workforce. The closure of the Dulux Paints factory in Cork, with 140 years of history, will result in 45 job losses, as reported by the Irish Examiner. Similarly, the planned closures in Groot-Ammers, The Netherlands, and Lusaka, Zambia, will also have significant consequences. These closures align with AkzoNobel’s strategic priorities, focusing on units with higher cost efficiencies. As the company aims to rationalize, upgrade, and optimize its industrial network, the workforce and local communities are likely to feel the effects of these decisions. Communication and involvement of stakeholders will be essential in mitigating the impact of these closures.

AkzoNobel’s Industrial Strategy

In outlining its industrial strategy, AkzoNobel emphasizes a focus on units with scale and higher cost efficiencies. The company’s decision to close manufacturing sites in Cork, Groot-Ammers, and Lusaka aligns with its strategic priorities aimed at rationalizing, upgrading, and optimizing the industrial network. By concentrating on enhancing cost efficiencies and driving sustainable growth, AkzoNobel aims to improve competitiveness within the market. The commitment to industrial excellence is evident in the closure decisions, which are made in alignment with the company’s overarching goals. Through this strategic approach, AkzoNobel intends to communicate effectively with stakeholders, involve social partners in decision-making processes, and ultimately achieve a more streamlined and competitive industrial operation.

Consultation Process Details

During the consultation process for the intended closures of manufacturing sites, AkzoNobel guarantees active involvement of employees and local social partners in discussions. The company has informed social partners about the planned closures and will proceed with the usual consultation process. AkzoNobel is committed to engaging with all stakeholders, emphasizing open communication throughout the decision-making process. Employees and local social partners will have the opportunity to provide input and feedback, ensuring their voices are heard. This inclusive approach aligns with AkzoNobel’s dedication to transparency and responsible business practices. The consultation process will play an essential role in finalizing the closure decisions, reflecting the company’s commitment to fair and collaborative decision-making.

Key Points From Company Statement

AkzoNobel’s company statement underscores the strategic priorities guiding the recent closure decisions of its manufacturing sites. The company is focused on driving sustainable growth and enhancing competitiveness through the closures. By improving cost efficiencies, AkzoNobel aims to rationalize, upgrade, and optimize its industrial network, aligning with its commitment to industrial excellence. The closures are part of a multi-year efficiency plan set to conclude by the end of 2026. AkzoNobel’s emphasis on informing and involving social partners in the decision-making process highlights its dedication to transparency and stakeholder engagement. The company’s strategic direction is clear in its efforts to streamline operations, concentrate on units with scale and higher cost efficiencies, and ultimately strengthen its position in the market.


To sum up, AkzoNobel’s strategic factory closures are a part of its efficiency plan to enhance competitiveness and drive sustainable growth. Despite the impact on local communities and workforce, the company remains committed to industrial excellence and stakeholder involvement. Through open communication and consultation with employees and social partners, AkzoNobel is working towards optimizing its industrial network for long-term success.

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