Akzo Bolsters In-House Resins Output to Beat Supply-Chain Snarls
- Dutch company plans to ramp up production of raw materials
- Move meant to improve Ebitda by up to 20 million euros
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Akzo Nobel NV will make more of the raw materials needed for its paint products in-house to avoid the squeeze on global supply chains.
The Dutch firm plans to increase production of resins -- a key ingredient of paints and coatings -- to 55% of its consumption by the end of next year from less than 40% currently, Chief Commercial Officer Michael Friede told Bloomberg News. He expects the move to improve earnings before interest and taxes by as much as 20 million euros ($23 million).