AkzoNobel strengthens Specialty Chemicals portfolio with two acquisitions

AMSTERDAM, May 09, 2008 (Press Release) - AkzoNobel is to reinforce its Specialty Chemicals portfolio by acquiring businesses in Europe and Asia. The company has signed two agreements which will strengthen both its paper and polymer chemicals activities.

The first deal involves AkzoNobel's Pulp & Paper Chemicals business, Eka Chemicals, acquiring Levasil, the silica sol business of Germany's H.C. Starck Group. Meanwhile, AkzoNobel Polymer Chemicals has agreed to purchase two organic peroxides product lines from China's Jiangsu QiangSheng.

"These two transactions underline our strategic commitment to grow our existing portfolio," explains Rob Frohn, Akzo Nobel's Board member responsible for Specialty Chemicals. "They will further improve our capability to serve customers in key markets where we already hold strong global positions."

Located in Leverkusen, H.C. Starck supplies its Levasil silica sol brand as a raw material - mainly to markets in Europe - with the plant's production capacity totaling around 30,000 tons a year. The business employs approximately 50 people. Silica sols are used in various manufacturing industries, including paper, electronics and construction.

Subject to regulatory approvals, the acquisition is expected to be completed no later than the third quarter of 2008.

Jiangsu QiangSheng is China's largest manufacturer and supplier of organic peroxides. AkzoNobel is acquiring two of the company's organic peroxides product lines, which are used mainly in keyboard pads and for the production of silicone rubber. Customers are located primarily in China, Taiwan and Korea.

Completion is expected in the second quarter of 2008. Financial details were not disclosed.