AkzoNobel Industrial Finishes has reinforced the strategic position of its Casco Adhesives business in Eastern Europe by acquiring the wood adhesives activities of Kronochem. Financial details were not disclosed.
Kronochem is the chemical arm of Kronospan, the world's leading producer of wood panels, MDF, chipboard, laminate flooring and board resins.
The transaction includes a long-term tolling agreement under which Kronochem will utilize its manufacturing capacity and production expertise to produce wood adhesives for Casco Adhesives, the leading global producer of wood adhesives and a significant player in the board resin industry. Kronospan is already a trusted toll manufacturing partner in Russia and China.
"This is a strategic bolt-on acquisition which will strengthen our portfolio in a key region and boost our technological capability," explained Leif Darner, the AkzoNobel Board member responsible for Performance Coatings. "Eastern Europe is a major production center for some of the biggest and most innovative furniture manufacturers and we can now strive for the productivity needed to prosper in this part of the world."
The acquired wood adhesives business is located in the Czech Republic, Romania, Bulgaria and Slovakia, an area regarded as a primary growth region for the future. Their products support applications for the furniture industry, including veneering, curved plywood, edge glue panel, doors, shuttering and three-layer boards. AkzoNobel's own European production for wood adhesives is centralized at two plants in Sweden.