Akzo Nobel to Further Restructure European Surfactants Business.

ARNHEM, the Netherlands--(BUSINESS WIRE)--Oct. 22, 1998.--Akzo Nobel nv confirms recent press reports on further restructuring within its Surface Chemistry business unit resulting in the elimination of some 170 jobs, rationalization of production on fewer sites and the merging of business areas. These measures are being taken in order to address over capacity and low market growth in the fatty amines segment in Europe and to maintain profitability. Works councils and unions are being consulted in the affected countries as appropriate.

The business unit Surface Chemistry announced around 150 job cuts in late 1996 throughout its European operations. The measures currently in progress are "The next step in securing a long term future for the business" according to business unit Manager, Jan Svard. "Further changes in our production structure is first and foremost the result of an over capacity in fatty amines," he said, adding that "The expected market growth for these products is insufficient in terms of solving the problem and our analysis clearly calls for production optimization while simultaneously reviewing our total costs."

Major restructuring affects cationic applications and will result in a reduction of 100 employees at Stockvik, Sweden, and the transfer of the bulk of current Stockvik production to Mons in Belgium and Littleborough in the United Kingdom.

In 1999, cationic applications activities currently based in Amersfoort, the Netherlands, will move to Stenungsund, Sweden. This will affect 40 jobs in Amersfoort, the Netherlands and a yet to be determined number at Stenungsund, Sweden.

The business areas Speciality Surfactant Applications and Cationic Applications will be merged into one unit - to be known as Surfactants Europe - and will be based in Stenungsund.

Fatty Acids business operations will, in the future, be concentrated in Emmerich, Germany. Personnel reductions in Fatty Acids will, over a two-year period, involve a combined total of 28 jobs in Amersfoort in the Netherlands and Emmerich and Duren in Germany. The business unit Surface Chemistry produces paint and building additives (cellulosic ethers), cationic surfactants, fatty acids and fatty amines, with some 20 plants/locations worldwide. Industries served include the building and civil engineering industries, general industry (asphalt, viscose, agriculture, animal feed, potash, wood preservation among others), the detergent and hard surface cleaner producers and the personal care industry. Sales in 1997 amounted to NLG 1,200 million (USD 600 million,GBP 400 million).

Akzo Nobel, headquartered in Arnhem, The Netherlands, is a market driven and technology based company, serving customers throughout the world with healthcare products, coatings, chemicals, and fibers. The company employs 88,000 people and has activities in 60 countries. In 1997, consolidated sales aggregated $12 billion (24.1 billion NLG). In North America the company employs more than 9,000 employees and has annual sales of approximately $3 billion. The company's ADRs are traded on NASDAQ under the AKZOY symbol.