BASF Coatings and Akzo Nobel plan joint venture on automotive OEM coatings in Australia -Letter of intent signed

BASF Coatings and Akzo Nobel plan joint venture on automotive OEM coatings in Australia -Letter of intent signed Melbourne (Australia), Arnhem (the Netherlands), January 10, 2000. - BASF Coatings and Akzo Nobel want to establish a cooperation for automotive OEM coatings in Australia. A letter of intent has been signed to investigate the feasibility of such a joint venture. This study is to be completed by the end of February 2000. The plan is to establish a joint venture in Australia to provide marketing, sales, and technical services for automotive OEM coatings. The joint venture company, which may go into business in the first half of 2000, will be headquartered in Melbourne. It will play a leading role in the Australian automotive OEM coatings market, as it will offer to supply the Australian subsidiaries of the global automotive industry with a top quality package of products and services. Currently, the car manufacturers Ford, GM Holden, Mitsubishi and Toyota are active in Australia. BASF Coatings, whose automotive OEM coatings are currently available in Australia under a license agreement, aims to reinforce its business in the country through this joint venture. The goal of BASF is to significantly boost its position in the Asian market and with international automobile companies working in that region. Akzo Nobel will secure its important position in the Australian automotive market through this cooperation and will take charge of the local toll- manufacturing for the joint venture. Independently, Akzo Nobel will continue to build its own global position as a major supplier of specialized coatings for transportation vehicles, such as trucks and buses, automotive parts, etc. The proposed joint venture will relate only to the original equipment market for automotive in Australia. Both Akzo Nobel Coatings and BASF Coatings will continue with their own separate businesses for supply of car refinishes (automotive aftermarket). Akzo Nobel - a world leader in coatings Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, and chemicals. The company currently employs approximately 68,000 people in 75 countries. Consolidated sales excluding Acordis, for 1999 will total about EUR 12 billion (USD 13 billion, GBP 8 billion). Acordis, the former fibers business of Akzo Nobel, has been divested to CVC Capital Partners as of the end of 1999. The financial results for the year 1999 will be announced on February 25, 2000. Akzo Nobel is a world leading producer of coatings, with strong market positions in decorative/architectural paints, car refinishes, liquid and powder coatings for industrial use (on wood, plastics and metal), marine & yacht coatings, protective coatings, aerospace coatings, printing inks, industrial and consumer adhesives, and impregnated papers. Akzo Nobel Coatings' 1999 sales are expected in the order of EUR 5.5 billion (USD 6 billion, GBP 3.5 billion). BASF: A major international player in coatings, too BASF Coatings AG, based in Germany, and its affiliates, along with all the coatings activities of other BASF group companies around the world, belong to the global Coatings Division of the BASF Group. With about 10,000 employees, this BASF division will achieve world sales close to EUR 2 billion (USD 2.2 billion, GBP 1.3 billion) in 1999, with more than 50% India, Japan, and the Philippines. In the coatings segment, BASF develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as the processes needed to apply them. In this business, eco-efficient powder coatings, water-based, high-solids and radiation-curable coatings play a special part. In Brazil, the company has been successful in the decorative paints market for years and is now holding the leading position. Internet:www.akzonobel.com www.basf-coatings.de For more information please contact: Akzo Nobel nv: Derek Welch, Akzo Nobel UK Ltd., London Tel:+44 171 479 6000, Fax: +44 171 479 6500, e-mail: derek.welch@akzonobel.com BASF Coatings AG: Klaus-Peter Rieser, Münster, Tel.: (+49)2501-14 31 60 / -14 20 40 Fax: (+49)2501-14 37 50, e-mail: klaus-peter.rieser@coatings.basf.org ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/10/20000110BIT00090/bit0001.pdf http://www.bit.se/bitonline/2000/01/10/20000110BIT00090/bit0002.doc