| Profile: | The history of AkzoNobel goes back to the year 1792, when the paint producing factory Sikkens was found. During the years, several mergers and acquisitions took place, which resulted in the company AKZO. Akzo became AkzoNobel after the merger with the Swedish chemical companz Nobel in 1994. The company has three main groups: pharmacy, coatings and chemicals. The products in the pharmacy division are, among others, anticonception, anti depressives, fertilization and animal vaccines. Pharmacy generates 25% of the total sales. AkzoNobel is the world leader in coatings, with the products of Flexa, Sikkens, International and Crown. Coatings make out 40% of the total sales. The chemical division produces salts and chemicals which are used in products like ice cream, toothpaste, cosmetics, glass and plastics. This is were the remaining sales comes from. |
| Description: | Companies in the chemicals industry make raw materials, intermediate and final chemical end products, including gases, paints, plastics, fibers and resins. A distinction can be made between various bulk coarse (petro) chemicals and fine chemicals.
The bulk chemicals like ethylene and propylene, are derived from petroleum and natural gas and form the raw material for plastics and other chemical products. Production takes place in large quantities and is very capital intensive. The margins are relatively small and the market has a cyclical character.
The fine chemicals, including pigments, perfume and fragrances and raw materials for the pharmaceutical industry, are closer to the final product. The margins on these products are higher, but the production is more research-intensive. The market is in general less cyclical, but depend more on product introductions. The activities with the food, pharmaceutical and bio-related industries are indicated as life science activities.
By focusing on integrated production and market leadership in a specific area, companies in the chemicals sector can build a competitive advantage. |
