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AkzoNobel Functional Chemicals

We had another good year financially. This was partly because many of our businesses have relatively low cyclicality and were somewhat resistant to the economic downturn, while we were also successful in passing on significant raw material price increases. Our results overall were just below the 2007 performance, despite major headwinds from currency, raw materials and several force majeure situations brought about by supply shortages.

Strict cost control and margin management were essential and helped to offset the largest year-on-year increase in raw material costs for any business in AkzoNobel. We welcomed the Elotex and Sulfur Products Argentina businesses from the former ICI, which added a total of around €250 million to our top line.

Business performance

We fall predominantly on the positive side of the supply/demand balance, so we were able to cope with the economic situation quite successfully. We’re less volatile because we’re involved in so many applications – such as the fertilizer, detergent, health and food industries – which simply have to continue manufacturing and producing. Our Ethylene Amines and Chelates activities therefore had particularly good years, due to growing markets and increasing demand and the fact that we were able to raise our prices. Sulfur Derivatives also improved year-on-year, while the weaker US dollar impacted results for Cellulosic Specialties, which supplies the construction and paint industries.

Bob Margevich, Manging Director Functional Chemicals (photo)

Bob Margevich
Managing Director
Functional Chemicals

In € millions

Revenue – Functional Chemicals (bar chart)
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