Paint and coatings giant AkzoNobel is to replace its Prudhoe and Slough manufacturing plants with a new €110m facility in the north-east of England.
The new custom-built Decorative Paints facility site will be designed to improve supply chain operation efficiencies, reduce operating working capital and accelerate its response to changing market and customer demands.
The planned new facility is within 25 miles of AkzoNobel’s existing site in Prudhoe, and is anticipated to be operational by the end of 2014, when Prudhoe and Slough would be closed.
The proposals are being put forward to employees for consultation. Production would be maintained at the required levels prior to operations being transferred.
The intention is for Slough to remain the headquarters for the UK Decorative Paints business and for global research and development, and marketing.
“This shows that we will continue to invest in order to drive world class manufacturing capability, while enhancing customer service levels and ensuring we remain the world’s leading decorative paints business with well-known brands such as Dulux, Sikkens and Coral,” explained Tex Gunning, AkzoNobel’s executive committee member responsible for Decorative Paints.
The new facility will recycle and reuse waste and water, as well as consume 60% less energy compared with today’s operations.
“If the project goes ahead, there would be relocation possibilities for those with the desired skill-set who wish to transfer to the new site,” the company added.
AkzoNobel currently employs 4,050 people in the UK across all its businesses, with revenue for 2010 totaling €798m. Within Decorative Paints, 89 people are employed at the Prudhoe site and 131 are employed in the Slough manufacturing unit.
