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In Europe, revenue excluding currency effects was flat. The trend was mixed with Russia and Turkey experiencing strong growth, while there was moderate growth in the UK and other countries were stable to declining on weak demand. In the UK, sales improved both in Retail and Trade due to share gains and better distribution channels. With weak demand expected to continue, restructuring programs are ongoing with the the lower costs offsetting the soft demand. In France, production has stopped at our Grand Quevilly site and we are now focusing on one site at Montataire. In Spain, a new factory became operational. We also announced the closure of our Swiss production site in Wallisellen, planned for Q1 2011. These changes represent a further streamlining of production capacity in Europe which should lead to savings in the supply chain area.

Copyright © 2010 Akzo Nobel N.V.