10/29/2008 14h16
Akzo trusts in emerging markets strength
Valor Econômico - 10/29/2008
Yesterday world president of Akzo Nobel, Hans Wijers, said that the crisis should affect the world economic growth, but its impact will not change the company's growth strategy for the emerging countries, like Brazil. "We trust the basis of those economies", affirmed the executive of Akzo Nobel, a producer of chemical specialties, coverings and paints. "Even if the emerging countries" economies may show a slower growth, it will still be a growth bigger than those of the most mature economies", said Wijers, who bets on countries like Brazil, China and India. According to Wijers, some projects may be temporarily delayed in view of a slower growth of the economies, but they will be resumed as soon as the financial situation becomes clearer. Akzo Nobel, which already owned Ypiranga and Wanda paints brands, increased its portfolio of products when it acquired English ICI, owner of Coral paints in Brazil, in January. That has made the company increase its market share in decoration paints, reaching a position closer to Basf's, leader in Brazil, with the Suvinil brand. Wijers made it clear that the intention is to make Akzo Nobel gain the leadership in the Brazilian market. The ICI purchase also guaranteed an increase in the Brazilian subsidiary's sales from 580 million Euros in 2007 to 708 million Euros foreseen for this year. Akzo Nobel should publish its third quarter balance sheet today, and the expectation is that the results may not be as favorable, according to analysts.
