Dulux backs Britain with new £100m paint plant

tHe maker of Dulux has opened a state-of-the-art paint factory in the UK as it pledges its commitment to creating more British jobs.

Akzo nobel said the northumberland factory will produce enough paint to redecorate every living room, bathroom and kitchen in the UK.

A £22.5bn takeover bid from American predator PPg had thrown the future of Akzo’s 3,500 workers into doubt.

But boss thierry Vanlancker, who took over after ex-chief executive ton Buchner stood down in July, said the paint maker is more committed to Britain now than ever.

‘the new facility is a commitment to the UK market, which is our strongest market in europe. it’s a legacy,’ he said.

‘it’s not just a plant with some architecture – it is the crown jewel.’

He added: ‘We have 3,500 workers in the UK, thousands here in the north east, so it’s not out of charity. it is because it is a very strong region for us. it’s a key part of the success of the firm.’

the Ashington facility is the most advanced of its kind in the world and will be used to make Dulux, Cuprinol and Polycell and other products.

its automated production system means it can produce large quantities of popular paints that typically sell well, and also produce more specialist decorative paints quickly according to demand.

it is the firm’s most sustainable building – reusing 100pc of its water and 90pc of its solvents. taking five years to build, it replaces Akzo’s facilities in Slough, Berkshire, and Prudhoe, northumberland. it is the latest show of strength from Akzo after it fought off PPg’s takeover bid in June. the three-month battle with the Pittsburgh-based paint maker saw Akzo rebuff offers of £ 18.1bn, £ 19.3bn and £22.5bn – securing the future of Akzo’s British workers spread across the north east, glasgow, Suffolk and the Midlands. But the move sparked a shareholder uprising as investors, led by billionaire Paul Singer’s vulture hedge fund elliott Advisors, called on the Akzo to speak to PPg. the stress took a toll on Buchner, who resigned in July to focus on his health while chief financial officer Maelys Castella also stood down last week due to health reasons.

Vanlancker, who has previously run Akzo’s chemicals division, is faced with implementing Akzo’s strategy which involves separating its chemicals business from its paints and coatings arm and dishing out £1.3bn of dividends to shareholders. But the company hit a roadblock last week when it said its profits for the full year will fall short of the £91m it had hoped for.

Vanlancker, however, said this was due to a ‘string of freaky events’ that occurred this year, including Hurricane Harvey, which affected four of its plants in Houston, texas.