AkzoNobel is relying on three sources of growth – growth based on our strong positions, growth based on new technology and growth through bolt-on acquisitions. We will allocate investment capital in a disciplined manner. We will prioritize investments in attractive markets and/or where we believe our competitive position warrants it. A particular area of emphasis for investment will be on developing markets.
We are continuing to invest in emerging markets, including significant investment in Ningbo, China, for a multi-site development, while major funds have also been allocated in Bahia and Três Lagoas, Brazil, for new Specialty Chemicals facilities.
With regard to new technology, given our scale in paints and coatings, we are able to outspend our competitors on an absolute basis, while still protecting our bottom line profitability. Going forward, we will be working hard to increase the efficiency of our investments in small-scale technology fine-tuning, and utilize the extra capital generated on bigger, bolder technology improvements. These investments will be oriented towards the science that underlies the four functionalities that AkzoNobel provides – beautify, protect, stabilize and transform. For more details about AkzoNobel’s vision for R&D and innovation please see chapter Research, Development & Innovation.
In terms of acquisitions, in 2008, in addition to the ICI transaction, we made a number of other small, bolt-on acquisitions to enhance our positions in both coatings and specialty chemicals. These included Soliant, the floor coatings business of Lord Corporation, and Enviroline. Looking ahead, our plan is to continue to pursue bolt-on acquisitions.
