AKZO NOBEL NV

diversified Dutch manufacturer of paints, coatings, and chemicals. The company was formed from the merger of Akzo NV and the Swedish firm Nobel Industries AB in 1994. Its headquarters are in Arnhem, Neth. Akzo NV had its origins in the German chemical manufacturer Vereinigte Glanzstoff-Fabriken, which was formed in 1899 and made rayon and paints. Vereinigte merged with a Dutch rayon manufacturer, Nederlandsche Kunstzijdefabriek, in 1929, and the new company assumed the name AKU. This firm merged with the major Dutch chemical company Koninklijke Zout-Organon NV (KZO) in 1969 to form Akzo NV, a major Dutch manufacturer of synthetic fibres, industrial chemicals, plastics, paint, adhesives, and pharmaceuticals. Akzo NV ran into financial difficulties in the 1970s owing to competition from East Asian fibre makers and rapidly rising prices for the petroleum-based feedstocks used to make chemicals and fibres. In response, Akzo deemphasized its fibre business and diversified further into paints and specialty chemicals. Nobel Industries AB was created in 1984 by the merger of the Swedish chemical firm KemaNobel with the Swedish weapons maker Bofors. This merger reunited the two largest companies that had once been owned by Alfred Nobel, the 19th-century inventor of dynamite and founder of the Nobel Prizes. At the time of its merger with Akzo in 1994, Nobel Industries was a manufacturer of paints, adhesives, and specialty chemicals. The merger of Akzo with Nobel Industries created one of Europe's largest chemical and paint manufacturers.