Tomorrow's Answers Today - AkzoNobel
Tomorrow's Answers Today - AkzoNobel
Tomorrow's Answers Today - AkzoNobel
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Tomorrow’s<br />
<strong>Answers</strong> <strong>Today</strong><br />
The history of <strong>AkzoNobel</strong> since 1646
Tomorrow’s <strong>Answers</strong> <strong>Today</strong>
The history of <strong>AkzoNobel</strong><br />
<strong>AkzoNobel</strong>, Amsterdam
© Akzo Nobel N.V. 2008<br />
Tomorrow’s <strong>Answers</strong> <strong>Today</strong> is a trademark of Akzo Nobel N.V.<br />
No part of this publication may be reproduced, stored in a retrieval system or transmitted<br />
in any form or by any means, including, but not limited to, electronic, digital, mechanical,<br />
photocopying or recording, without obtaining prior written permission from Akzo Nobel N.V.,<br />
Strawinskylaan 2555, 1077 ZZ Amsterdam, the Netherlands.<br />
<strong>AkzoNobel</strong> has made every reasonable effort to identify holders of copyrights, portrait rights<br />
or moral rights related to the images included in this book (see Credits, page 277). Parties that<br />
wish to assert alleged rights are invited to contact <strong>AkzoNobel</strong> Corporate Communications<br />
at info@akzonobel.com.<br />
Printed in the Netherlands<br />
ISBN 978 90 9022883 9
7 Preface<br />
Hans Wijers, CEO and Chairman of the<br />
Board of Management, <strong>AkzoNobel</strong><br />
9 Introduction<br />
Jonathan Steffen, Editor<br />
10 A history in milestones<br />
23 A history of histories<br />
31 The evolution of <strong>AkzoNobel</strong><br />
33 The Akzo legacy<br />
Map of the Netherlands<br />
35 The creation of Akzo<br />
41 The creation of Enka, AKU<br />
and the Dutch synthetic<br />
fibers industry<br />
49 Sikkens:<br />
From local start-up to<br />
world leader in coatings<br />
63 Ketjen:<br />
A leading sulfuric acid<br />
manufacturer<br />
67 Koninklijke Nederlandse<br />
Zoutindustrie:<br />
The Netherlands’ first large-scale<br />
salt manufacturer<br />
73 Noury & Van der Lande:<br />
Pioneers of peroxide<br />
79 Kortman & Schulte:<br />
The first manufacturers of soda<br />
in the Netherlands<br />
83 Boldoot:<br />
The creation of a household name<br />
91 Van Hasselt:<br />
A lesson in home-grown innovation<br />
95 Duyvis:<br />
From animal feed to party snacks<br />
101 Organon:<br />
From meat products<br />
to innovative pharmaceuticals<br />
109 Intervet:<br />
A tale of healthy growth<br />
113 Armour and Stauffer:<br />
From Chicago to Stenungsund<br />
and back<br />
119 The Nobel legacy<br />
Map of Scandinavia<br />
121 Nobel Industries<br />
125 Alfred Nobel:<br />
Inventor, entrepreneur and<br />
industrialist<br />
133 Nitroglycerin Aktiebolaget:<br />
Nitro Nobel, an explosive history<br />
137 Bofors:<br />
From a rural iron forge<br />
to a legendary weapon<br />
143 Stockholms Superfosfat:<br />
A chemical precursor<br />
of many Nobel businesses<br />
149 Eka:<br />
A world leader in electrochemistry<br />
157 Sadolin:<br />
The union of paint and enamel<br />
165 Nordsjö:<br />
Technology leader in<br />
environmentally-friendly paints<br />
173 Casco:<br />
A journey of technical exploration<br />
179 Barnängen:<br />
Victorian paternalism<br />
and personal care products<br />
185 Berol:<br />
From consumer products<br />
to process ingredients<br />
193 Crown Berger:<br />
From innovative wallpapers<br />
to innovative paints<br />
199 The Courtaulds legacy<br />
Map of Great Britain<br />
201 Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
215 International:<br />
A company with a truly international<br />
mindset<br />
223 The ICI legacy<br />
Map of Great Britain<br />
225 Imperial Chemical Industries (ICI)<br />
249 <strong>AkzoNobel</strong><br />
Map of the world<br />
251 <strong>AkzoNobel</strong> 1994–2008:<br />
Consolidation and focus<br />
257 <strong>AkzoNobel</strong> in the<br />
21st century<br />
261 Afterword: Towards a more<br />
sustainable society<br />
263 Bibliography<br />
265 Index<br />
277 Credits<br />
5
6<br />
Hans Wijers, CEO of <strong>AkzoNobel</strong>
History is usually all about looking back. So why does this<br />
book – the first general history of <strong>AkzoNobel</strong> ever to be<br />
published – start with the word tomorrow?<br />
Well, in many ways, every event in our rich history has been<br />
leading to this point: the rebirth of our company. We have<br />
been transformed, revitalized. We have a new brand and a<br />
new identity.<br />
Our new brand promise has been adopted for the title of this<br />
book, which is being published at a pivotal time in our long,<br />
proud history. Tomorrow’s <strong>Answers</strong> <strong>Today</strong> embodies the<br />
fact that we have clear ambitions for the future. But now is<br />
also a perfect moment to pause and reflect on how we got<br />
here. And where we came from. As we enter a new era, it is<br />
appropriate to recall how innovators in years gone by and<br />
great names from the past have helped shape and build<br />
<strong>AkzoNobel</strong> into the global industrial leader we are today.<br />
<strong>AkzoNobel</strong> has been created from a variety of individual companies,<br />
with their origins in the Netherlands, Scandinavia,<br />
the United States and the UK. As their operations expanded,<br />
these companies moved into new markets and territories,<br />
many of them becoming multinational organizations in<br />
their own right. They occupied leading positions in a host<br />
of different industrial sectors, continually evolving in order<br />
to remain successful. They grew by adapting to new challenges<br />
and creating new solutions.<br />
Despite the enormous variety of industrial sectors and geographies<br />
in which our predecessor companies operated,<br />
they are united by striking similarities. They were proactive,<br />
pragmatic, and focused on delivering answers. Some of the<br />
entrepreneurs who created the great industrial names of our<br />
past actually failed in their first attempts to start a business.<br />
Others were the sons of fathers who had not succeeded<br />
as entrepreneurs. But they were not deterred by these setbacks.<br />
On the contrary, they drew strength from them and<br />
became even more determined to achieve success.<br />
Many of the early company owners and managers were also<br />
“early adopters” – not necessarily all great inventors like Alfred<br />
Nobel, but hugely innovative in their understanding of technologies,<br />
processes and markets. They knew what could be<br />
achieved commercially if the right technology was presented<br />
in the right way to the right market at the right time.<br />
And history has proved them right. Time and again, their<br />
entrepreneurial instincts put their businesses on course for<br />
spectacular growth.<br />
In many ways, today’s <strong>AkzoNobel</strong> is worlds away from our<br />
founding fathers of the 18th and 19th centuries. We operate<br />
a global company in a global economy, with all the opportunities<br />
and challenges that globalization entails. Yet even as<br />
we look to the future, I believe that we have much to learn<br />
from our past. And I believe that the spirit that made so many<br />
of our predecessor companies so great lives on among<br />
<strong>AkzoNobel</strong>’s employees today. Because wherever you may<br />
be, whenever you may be reading these words, you can be<br />
sure that there will be <strong>AkzoNobel</strong> employees somewhere<br />
in the world committed to delivering on our brand promise:<br />
Tomorrow’s <strong>Answers</strong> <strong>Today</strong>.<br />
Hans Wijers<br />
CEO and Chairman of the Board of Management, <strong>AkzoNobel</strong><br />
7
The history of <strong>AkzoNobel</strong> is a history of histories – not a<br />
single stream of consecutive events but rather a network<br />
of stories that interrelate in ways that are always intriguing<br />
and sometimes dramatic. In telling the story of <strong>AkzoNobel</strong>,<br />
Tomorrow’s <strong>Answers</strong> <strong>Today</strong> attempts to make the main<br />
threads of this multiple narrative clear to the general reader.<br />
When compiling this first ever history of <strong>AkzoNobel</strong>, the editorial<br />
team had many questions to address. Where should<br />
such a narrative commence? How should it be structured?<br />
What should it include, and what should it omit? And what<br />
editorial criteria should inform such decisions?<br />
Ultimately it was the extent, richness and complexity of<br />
<strong>AkzoNobel</strong>’s history itself that provided the answers to these<br />
questions. Study of the source material indicated that one<br />
of the prime editorial challenges would be to present such a<br />
wealth of information in an accessible way, so as to ensure<br />
that the great stories and extraordinary facts of the organization’s<br />
remarkable past were offered in readable form.<br />
It was therefore decided to tell the story of <strong>AkzoNobel</strong> in<br />
terms of the history of its constituent companies – rather<br />
than, for instance, the development of its current technologies,<br />
business units or product lines. Considerations of<br />
space regrettably made it impossible to include every single<br />
company that has contributed to the evolution of <strong>AkzoNobel</strong>.<br />
Among those companies whose stories figure here, reasons<br />
of space likewise precluded any attempt at a comprehensive<br />
or definitive historical account. Rather, an attempt has been<br />
made to highlight some of the key moments in the histories<br />
of these organizations – their foundation, their major successes,<br />
their greatest challenges.<br />
The fact that many of these companies evolved along parallel<br />
tracks in different countries before becoming involved<br />
with each other also presented an editorial challenge. Again,<br />
with the needs of the general reader in mind, it was decided<br />
to structure the main bulk of the narrative in terms of the four<br />
main streams of business activity that have made <strong>AkzoNobel</strong><br />
what it is today – the Akzo legacy, the Nobel legacy, the<br />
Courtaulds legacy and the ICI legacy. It is hoped that this<br />
approach will allow readers to enjoy this book either as a<br />
linear narrative or as a resource that offers many different<br />
points of entry.<br />
The timeline – A history in milestones – provides a chronological<br />
overview of some of the many significant dates in the<br />
story of <strong>AkzoNobel</strong>. The next section – A history of histories<br />
– offers a concise account of the company’s evolution in narrative<br />
form. This account is complemented by The Evolution<br />
of <strong>AkzoNobel</strong>, which presents a graphical overview of the<br />
most significant acquisitions and divestments which have<br />
occurred during the company’s history. It is hoped that<br />
these three sections, taken together, will provide an accessible<br />
introduction to a spectacularly vibrant industrial enterprise<br />
which has assumed many shapes during the centuries<br />
of its existence.<br />
Most of the book is dedicated to the four legacies that have<br />
combined to create today’s <strong>AkzoNobel</strong>. As the narrative<br />
focuses on the stories of companies rather than products<br />
or technologies, the individual chapters start with the foundation<br />
of the companies in question and end at the point<br />
at which those companies became part of a larger parent<br />
company. The book concludes with a brief account of<br />
<strong>AkzoNobel</strong>’s recent history and a snapshot of the organization<br />
at the time that this book went to press.<br />
Tomorrow’s <strong>Answers</strong> <strong>Today</strong> is the result of the efforts of<br />
many people – namely the authors, living and deceased, of<br />
the numerous books, articles and brochures on which it is<br />
based, and colleagues around the world who have contributed<br />
with insights, ideas and source materials.<br />
I would like to thank John McLaren, Director of Corporate<br />
Communications <strong>AkzoNobel</strong>, who came up with the original<br />
idea to produce this book and whose support and vision has<br />
been invaluable. Furthermore, my particular thanks go to:<br />
Donald Anderson, Mark Bannister, Els Boom, Oskar<br />
Bosson, Ian Chamberlain, Fred van Daalen, John Dawson,<br />
Anette Furbo, Anthea Gordon, Harrie van Grinsven,<br />
Peter de Haan, Annika Häll, Carol Heard, John Jennings,<br />
Frank Jones, Annemiek Kadijk, Ole Kjellin, Anna Larsson,<br />
David Lichtneker, Mikael Json Linde, Aarnout A. Loudon,<br />
Heleen van de Lustgraaf, Walter Luykenaar, Pete Murphy,<br />
Anna-Clara Olofsson, Berry Oonk, Evelien van Oudshoorn,<br />
Geoffrey Owen, Valerie Pomeroy, Marijke Raanhuis, Philip<br />
E. Radtke, Kent Renström, Wiggert Schurink, Ed Stec,<br />
Ing-Marie Trygg, Robby Tulaar, Pepe Vargas, Peter<br />
E. Vellinga, Robert van Vlijmen, Bert van der Wal, Derek<br />
Welch, Erik Widén and Victoria Wisener.<br />
A special thank-you also goes to Ian Cressie for editorial<br />
assistance. His unflagging support and eagle eye have been<br />
invaluable in creating this book.<br />
Jonathan Steffen<br />
Editor<br />
Amsterdam, October 2008<br />
9
Lewis Berger founds a paint<br />
factory in London, England<br />
Bofors forge founded in Sweden<br />
Dyestuffs company Holmblad (a<br />
forerunner of the Sadolin ® brand)<br />
founded in Copenhagen, Denmark<br />
Fragrances company Boldoot<br />
founded as a pharmacy in<br />
Amsterdam, the Netherlands<br />
Lacquer manufacturer Sikkens<br />
Lakfabrieken founded in<br />
Groningen, the Netherlands<br />
Bemberg founded in Wuppertal,<br />
Germany, as a manufacturer of<br />
dyestuffs<br />
Duyvis founded in the Zaan<br />
region of the Netherlands as a<br />
producer of vegetable oils<br />
Holmblad moves into paint<br />
manufacture<br />
Silk manufacturer Courtaulds<br />
founded in Essex, Great Britain<br />
Paint company Pinchin<br />
Johnson & Associates<br />
founded in the United States<br />
Sulfuric acid producer Ketjen<br />
founded in Amsterdam, the<br />
Netherlands<br />
Oils and oatmeal company Noury<br />
& Van der Lande founded in<br />
Deventer, the Netherlands<br />
1646 1760 1777 1789 1792 1806 1819 1826 1834 1835 1838 1841<br />
Tallow candle factory<br />
Liljeholmens Stearinfabrik<br />
founded in Stockholm, Sweden
The Italian Ascanio Sobrero<br />
discovers nitroglycerin<br />
Holmblad builds Denmark’s<br />
first enamel manufacturing plant<br />
Alfred Nobel invents the blasting<br />
cap, a form of safe detonator<br />
Explosives company Nitroglycerin<br />
AB (Nitro Nobel) founded in Sweden<br />
Alfred Nobel invents dynamite<br />
Meat-producing company<br />
Armour & Co. founded<br />
in Chicago, Illinois<br />
Ink manufacturer Barnängen<br />
founded in Sweden<br />
Stockholms Superfosfat<br />
Fabriks AB founded in<br />
Stockholm, Sweden<br />
Alfred Nobel patents blasting gelatin<br />
Boldoot starts using Eau de<br />
Cologne in toilet soaps<br />
Bofors constructs its first<br />
cannon armory<br />
1847 1861 1863 1864 1867 1868 1871 1876 1881 1883 1884 1885<br />
Paint company Holzapfels Limited,<br />
the forerunner of International Paints,<br />
founded in Newcastle, Great Britain<br />
The British market for crepe<br />
goes into rapid decline<br />
Van Hasselt’s products win first prize<br />
at the London Agricultural Exhibition<br />
11
A history in milestones<br />
Soda manufacturer Kortman &<br />
Schulte founded in Rotterdam,<br />
the Netherlands<br />
Formation of the Nobel<br />
Dynamite Trust Co.<br />
Formation of Société Centrale<br />
de Dynamite<br />
Salt deposits are identified on<br />
Dutch soil for the first time ever<br />
Meat producer Zwanenberg<br />
founded in the Netherlands<br />
Holzapfels Limited builds a<br />
paint factory in Russia<br />
British scientists Charles<br />
Frederick Cross, Edward John<br />
Bevan and Clayton Beadle<br />
patent the process for<br />
manufacturing viscose<br />
Alfred Nobel acquires the<br />
Swedish armaments firm Bofors<br />
Stockholms Superfosfat<br />
Fabriks opens a hydro-electric<br />
power station at Månsbo<br />
Electrochemical company<br />
Elektrokemiska Aktiebolaget<br />
(the forerunner of Eka) founded<br />
in Bengtsfors, Sweden<br />
Alfred Nobel signs his will<br />
providing for the establishment<br />
of the Nobel Foundation<br />
John Stauffer Sr. goes into<br />
partnership with Joseph Mayer<br />
to found Stauffer Chemical Co.<br />
in San Franciso<br />
Armour builds a soap works<br />
and starts producing Armour’s<br />
Family Soap<br />
Barnängen launches its<br />
Savon de l’Exposition at the<br />
Stockholm Exhibition; the<br />
company also launches the<br />
mouthwash Vademecum<br />
Courtaulds purchases a mill in<br />
Lancashire, Great Britain – the<br />
first outside the company’s<br />
traditional Essex base<br />
Kortman & Schulte launches<br />
the cosmetic soap<br />
Vereinigte Glanszstoff<br />
Fabriken founded in Germany<br />
Elektrokemiska Aktiebolaget<br />
successfully produces lye and<br />
chloride of lime<br />
Walpamur, or the Wallpaper<br />
Manufacturers Ltd., is founded<br />
in Darwen, near Bolton in<br />
Lancashire, Great Britain<br />
1886 1887 1888 1889 1892 1894 1895 1896 1897 1898 1899 1900<br />
Kortman & Schulte moves to<br />
Rotterdam’s Delfshaven, where<br />
it produces soda and a meat<br />
preservative<br />
Sikkens starts producing<br />
Japanese lacquers<br />
Ketjen builds a new sulfuric<br />
acid plant in Amsterdam
A history in milestones<br />
First Nobel Prizes awarded<br />
Boldoot builds its own<br />
soap factory in Amsterdam<br />
Paint company Nordsjö<br />
founded in Malmö, Sweden<br />
Courtaulds acquires the<br />
British rights to manufacture<br />
viscose and lists its shares on<br />
the London Stock Exchange<br />
Holzapfels Limited builds a<br />
paint factory in Felling-on-Tyne,<br />
Great Britain<br />
G.W. Sikkens & Co. receives<br />
the designation “Royal”<br />
Walpamur commences paint<br />
manufacture and launches<br />
“Hollins” distemper<br />
Noury & Van der Lande builds<br />
a new oil factory in Emmerich<br />
am Rhein, Germany<br />
Sadolins Farver, specializing in<br />
artists’ paints and printing inks,<br />
is founded by Gunnar Sadolin<br />
Duyvis starts exporting linseed oil<br />
Courtaulds acquires the<br />
American rights to the<br />
manufacture of viscose<br />
Nederlandse Kunstzijdefabriek<br />
(Enka) is founded in Arnhem, the<br />
Netherlands<br />
1901 1902 1903 1904 1905 1906 1907 1908 1909 1911 1912 1914<br />
Ketjen builds a hydrochloric<br />
acid plant in Amsterdam<br />
Enka ® viscose filament yarns for<br />
textile applications are launched<br />
Stockholms Superfosfat Fabriks<br />
completes construction of Ljungaverk<br />
hydroelectric power station<br />
Sadolins Farver merges with paint<br />
and enamel manufacturer Holmblad<br />
13
A history in milestones<br />
The Walpamur Company is<br />
created to focus exclusively on<br />
paint and varnish manufacture;<br />
the Wallpaper Manufacturers<br />
Ltd. continues to produce<br />
wallpaper<br />
Under the terms of the “Salt<br />
Convention”, 34 associations of<br />
salt miners in the Netherlands<br />
agree to link 53.5% of their<br />
production of salt for the<br />
national market to that of KNZ<br />
Boldoot opens its flagship<br />
showroom in Amsterdam<br />
KNZ builds its first salt silo<br />
Armour develops fatty acid<br />
fractionation<br />
Fred Banting and Charles Best<br />
discover insulin in Canada<br />
Organon is founded in Oss, the<br />
Netherlands, and commences<br />
insulin production<br />
Sadolin & Holmblad commences<br />
production of synthetic organic<br />
pigments<br />
Elektrokemiska Aktiebolaget<br />
closes in Bengtsfors and starts<br />
a new company under the same<br />
name in Bohus, Sweden<br />
Bofors commences production<br />
of its first automatic weapon,<br />
the 20mm AA naval gun<br />
KNZ introduces an improved<br />
production process. It launches<br />
‘Jozo ® ’, an iodized salt, and also<br />
starts producing soda<br />
Sikkens makes its Rubbol Japanese<br />
lacquer suitable for the painting of cars<br />
Organon produces the female sex<br />
hormone Menformon ®<br />
ICI is founded via the Aquitania<br />
Agreement<br />
EKA (an abbreviation of<br />
Elektrokemiska Aktiebolaget)<br />
commences production of<br />
water glass<br />
Sikkens introduces cellulose<br />
lacquer<br />
Organon produces the injectable<br />
liver extract Pernaemon ®<br />
Casco AB is founded in<br />
Stockholm, Sweden<br />
1915 1918 1919 1921 1923 1924 1925 1926 1927 1928 1929 1930<br />
Koninklijke Nederlandse<br />
Zoutindustrie (KNZ) is founded<br />
in Enschede, the Netherlands<br />
Holzapfels Limited changes<br />
its name to The International<br />
Paint & Compositions Co. Ltd<br />
Stockholms Superfosfat<br />
Fabriks acquires the majority<br />
shareholding in Nitroglycerin AB<br />
AKU becomes the majority<br />
(76%) shareholder in Vereinigte<br />
Glanszstoff Fabriken<br />
American Enka Corporation<br />
founded in Asheville, North Carolina<br />
KNZ implements two deep salt<br />
wells, one in Twekkelo and one in Oele<br />
Margarine Unie, a predecessor of<br />
Unilever, acquires the oil, fat and<br />
soap works of Zwanenberg’s<br />
original meat processing business<br />
Casco commences production of<br />
casein glue<br />
ICI comes close to bankruptcy<br />
EKA expands its product range to<br />
include ferric chloride, hydrochloric<br />
acid and hydrogen peroxide<br />
Casco acquires the licensing rights<br />
for the production of soy adhesive
A history in milestones<br />
G.W. Sikkens & Co. receives<br />
the title “Purveyor to the Royal<br />
Household”<br />
Samuel Courtauld IV founds the<br />
Courtauld Institute of Art in London<br />
Superphosphate production ends<br />
at Liljeholmens Stearinfabrik and<br />
a new potassium nitrate factory<br />
opens a year later in Ljungaverk,<br />
Sweden<br />
KNZ inaugurates a new plant,<br />
expanding its product range to<br />
include hydrochloric acid, chlorine<br />
bleach, liquid chlorine, caustic<br />
soda and sodium hydroxide<br />
International starts supplying<br />
yachting paints to pleasure-boat<br />
builders<br />
Duyvis launches its first sauce,<br />
a salad dressing named Salata ®<br />
ICI invents Perspex ®<br />
Noury & Van der Lande builds an<br />
oil mill in Compiègne, France<br />
ICI discovers polythene by accident<br />
Sikkens launches the synthetic<br />
lacquer Rubbol ® A-Z ®<br />
KNZ launches Colorozo ® , a<br />
salt for the preservation and<br />
coloring of fine meat products<br />
Bad Boekelo, a health spa<br />
equipped with a natural saltwater<br />
bath with artificial waves,<br />
is built on KNZ’s Boekelo site<br />
Ketjen develops activated carbon<br />
Casco launches the casein/<br />
rubber-latex adhesive LR-lim<br />
KNZ inaugurates a new salt and<br />
electrolysis plant at Hengelo<br />
Bofors sells its first L/70 40mm gun<br />
ICI enters the pharmaceuticals<br />
business<br />
Berol is founded in Södertälje,<br />
Sweden, to produce impregnation<br />
agents<br />
Ketjen upgrades its sulfuric<br />
acid plant to make it the<br />
biggest in Europe<br />
Noury & Van der Lande commences<br />
citric acid production<br />
Organon produces the thyroid<br />
gland hormone Thyranon ®<br />
Nordsjö launches the binding<br />
agent Bindol ®<br />
Barnängen joins forces with<br />
Lars Montén to create the<br />
Kema Companies<br />
KNZ commences potash<br />
production<br />
Casco launches its first<br />
adhesive for linoleum<br />
ICI establishes its Plastics<br />
Division<br />
Sikkens relocates from<br />
Groningen to Sassenheim<br />
Armour uses the first<br />
commercially produced<br />
long-chain fatty amine for<br />
the improvement of potash<br />
EKA commences metasilicate<br />
production<br />
Swedish forest products<br />
company Mo och Domsjsö<br />
(MoDo) commences production<br />
of ethylene glycol<br />
ICI and Courtaulds form<br />
British Nylon Spinners to<br />
manufacture nylon under<br />
license from DuPont<br />
Stockholms Superfosfat<br />
Fabriks begins production of<br />
carbide and calcium nitrate<br />
Courtaulds is obliged to sell<br />
American Viscose Corporation<br />
The Calico Printers’ Association<br />
presents the concept for<br />
Terylene ® to ICI<br />
Berol extends its product range<br />
to include products for the<br />
defense industry<br />
ICI synthesizes medically usable<br />
penicillin<br />
1931 1932 1933 1934 1936 1937 1938 1939 1940 1941 1942 1943<br />
Casco launches RX ® Glue for<br />
office and domestic use<br />
15<br />
ICI’s pilot plant for the production<br />
of uranium goes into operation
A history in milestones<br />
Stockholms Superfosfat<br />
Fabriks begins making plastics<br />
and starts trial production of the<br />
synthetic rubber Svedopren AKU begins to expand its<br />
product portfolio to lessen its<br />
dependency on rayon<br />
Organon launches<br />
Cortophine ® , a hormone that<br />
regulates the adrenal cortex<br />
ICI launches the herbicide<br />
Methoxone ®<br />
Stockholms Superfosfat<br />
Fabriks acquires Liljeholmens<br />
Stearinfabrik<br />
Ketjen commences construction<br />
of a sulfur dioxide plant in<br />
Amsterdam<br />
Nordsjö starts building a new<br />
manufacturing facility in Sege,<br />
Sweden<br />
Sikkens sets up the artificial<br />
resin company Synthese<br />
Zwanenberg & Co and<br />
Organon merge to form<br />
Zwanenberg-Organon<br />
Armour launches Dial<br />
Deodorant Soap<br />
Laboratoria Nobilis (the forerunner<br />
of Intervet) is founded in<br />
Boxmeer, the Netherlands<br />
Armour opens the world’s first<br />
commercial fatty amine plant in<br />
McCook, Illinois<br />
Barnängen opens the Shantung<br />
School for beauty care<br />
Chefaro acquires Van Hasselt<br />
following the untimely death of<br />
managing director Johan van<br />
Hasselt<br />
Walpamur ® is awarded a royal<br />
warrant; another is to follow in 1955<br />
The International Paint &<br />
Compositions Co Ltd changes<br />
its name to International<br />
Paints (Holdings) Ltd<br />
Casco launches the wood glue<br />
Cascol ®<br />
Enka builds its Enkalon ® plant in<br />
Emmen, the Netherlands, to manufacture<br />
nylon yarns and fibers<br />
Organon launches Bifacton ® , a<br />
successor product to Parnaemon<br />
for the treatment of anemia<br />
Organon commences production<br />
of cortisone<br />
ICI’s Dulux ® paint enters the<br />
retail market. In the same year,<br />
ICI launches its revolutionary<br />
new anesthetic Fluothane ®<br />
Zwanenberg-Organon<br />
receives its royal warrant<br />
to become Koninklijke<br />
Zwanenberg-Organon<br />
1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955<br />
Stockholms Superfosfat<br />
Fabriks opens a PVC plant at<br />
Stockvik<br />
MoDo buys Berol<br />
ICI’s anti-malarial drug<br />
Paludrine ® is used extensively<br />
by the British Army<br />
Ketjen constructs a plant in<br />
Amsterdam to make catalysts<br />
for the oil industry<br />
Sikkens lists on the Amsterdam<br />
stock exchange<br />
Enka develops a spinning process<br />
for the continuous production of<br />
viscose filament yarns
A history in milestones<br />
EKA commences ammonia<br />
production<br />
KNZ produces calcined<br />
(water-free) soda<br />
KNZ commences construction<br />
of a chlorine electrolysis plant<br />
in Delfzijl<br />
Organon launches Durabolin ® ,<br />
one of the first anabolic steroids<br />
ICI launches Procion ® reactive<br />
dyes. In the same year it<br />
establishes its Fibres Division<br />
Organon launches Ovestin ®<br />
for treatment of uro-genital<br />
symptoms in menopausal<br />
women<br />
ICI establishes its Medical<br />
Division<br />
Duyvis receives the designation<br />
“Royal” and lists its shares on<br />
the Amsterdam stock exchange<br />
Courtaulds acquires aircraft<br />
coatings manufacturer Cellon<br />
The Sikkens Prize is inaugurated<br />
for artists, architects and<br />
designers whose work creates<br />
a synthesis of space and color<br />
Armour enters into a joint<br />
venture with Dan Hess in Great<br />
Britain to produce fractionated<br />
fatty acids and nitrogen<br />
derivatives<br />
KNZ starts producing salt in<br />
Delfzijl<br />
MoDo builds a petrochemical<br />
ethylene plant in Stenungsund,<br />
Sweden<br />
Courtaulds acquires Pinchin<br />
Johnson & Associates<br />
Koninklijke Zwanenberg-<br />
Organon acquires the personal<br />
care and fragrances manufacturer<br />
Boldoot<br />
Koninklijke Nederlandse<br />
Zoutindustrie (KNZ) and<br />
Ketjen merge to form<br />
Koninklijke Zout-Ketjen (KZK)<br />
Sikkens launches its Autoflex ®<br />
one-day car refinishing system<br />
Duyvis moves into the production<br />
and marketing of packaged nuts<br />
ICI makes an unsuccessful bid<br />
to acquire Courtaulds<br />
Koninklijke Zwanenberg-<br />
Organon acquires Laboratoria<br />
Nobilis, the forerunner of Intervet<br />
Organon launches Humegon ® ,<br />
a fertility hormone for women<br />
KNZ acquires zinc producer<br />
Kempensche Zinkmaatschappij<br />
Kortman & Schulte starts<br />
manufacturing enzyme-based<br />
detergents<br />
Sikkens becomes part of<br />
Koninklijke Zout-Ketjen (KZK)<br />
Armour acquires Kessler,<br />
a specialty ester manufacturer<br />
Organon launches its first<br />
contraceptive pill, Lyndiol ®<br />
ICI launches the hormonal<br />
weed killer Gramoxone ®<br />
Nordsjö launches the Tintorama ®<br />
paint color production system<br />
Armour Industrial Chemical<br />
opens a new soap facility in<br />
Montgomery, Illinois<br />
Stockholms Superfosfat<br />
Fabriks changes its name to<br />
Fosfatbolaget AB<br />
Fosfatbolaget AB acquires<br />
Casco<br />
Courtaulds embarks on a new<br />
strategy of vertical integration<br />
Kortman & Schulte and<br />
Noury & Van der Lande are<br />
taken over by Koninklijke<br />
Zwanenberg-Organon;<br />
Nourypharma is absorbed into<br />
Organon<br />
Nitroglycerin AB changes its<br />
name to Nitro Nobel AB<br />
ICI launches the beta-blocker<br />
Inderal ®<br />
Koninklijke Zout-Ketjen<br />
acquires Chefaro, and with it<br />
Van Hasselt<br />
1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967<br />
Last member of the Courtaulds<br />
family to sit on the board of<br />
Courtaulds retires<br />
Dutch rayon market collapses<br />
The Crown ® name is first used<br />
to launch Crown ® Plus Two ®<br />
paints in Great Britain<br />
Koninklijke Zout-Ketjen (KZK)<br />
and Koninklijke Zwanenberg-<br />
Organon merge to create<br />
Koninklijke Zout-Organon NV<br />
(KZO)<br />
17
A history in milestones<br />
Organon launches Pavulon ® ,<br />
the first steroidal non-depolarizing<br />
muscle relaxant<br />
Courtaulds (via Pinchin<br />
Johnson & Associates)<br />
acquires International Paints<br />
(Holdings) Ltd<br />
KZO acquires Duyvis<br />
Akzo divests to Unilever the<br />
meat factories that are the basis<br />
of the former Zwanenberg & Co.;<br />
Akzo’s remaining food activities<br />
are bundled together with household<br />
products in Akzo’s<br />
Consumer Products division<br />
Akzo acquires Armour from<br />
Greyhound and forms Akzona<br />
(Akzo North America)<br />
American Enka and<br />
International Salt are united<br />
in Akzona Inc. to create a U.S.<br />
equivalent of the European Akzo<br />
Fosfatbolaget AB changes its<br />
name to KemaNord AB<br />
AKU and Glanzstoff merge under<br />
the name Enka-Glanzstoff;<br />
AKU is the holding company.<br />
AKU and Koninklijke Zout-<br />
Organon merge to create Akzo,<br />
the fourth-biggest company in<br />
the Netherlands and the 10thbiggest<br />
chemical group in the<br />
world, employing 91,700 people<br />
Van Hasselt becomes part<br />
of Akzo’s Chemicals division<br />
Chefaro becomes part of<br />
Akzo’s Pharma division<br />
Organon launches the first<br />
mini-pill<br />
Intervet International bv founded<br />
Greyhound Bus Company<br />
acquires Armour<br />
ICI establishes an<br />
Environmental Sciences Group<br />
The first unifying Akzo logo –<br />
a blue triangle – is developed<br />
Akzo acquires the Noury & van<br />
der Lande plant in Emmerich<br />
am Rhein Germany<br />
Organon splits off its active<br />
pharmaceutical ingredients pro-<br />
duction and sales into an independent<br />
company, Diosynth<br />
Chefaro launches the pregnancy<br />
test Predictor® (originally developed<br />
by Organon)<br />
MoDo consolidates its chemicals<br />
companies into MoDoKemi AB<br />
(headquartered in Stenungsund,<br />
Sweden)<br />
Intervet acquires Poultry<br />
Biologicals in Great Britain<br />
Akzo announces its master<br />
plan in response to the collapse<br />
of profitability of the fibers<br />
division. Employees in Breda<br />
respond with industrial action<br />
and Akzo’s management<br />
withdraws the master plan<br />
Enka International becomes<br />
Akzo International<br />
KemaNord’s paper chemicals<br />
business is combined into one<br />
product group within specialty<br />
chemicals<br />
1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979<br />
Akzo Nederland bv is created,<br />
bringing together some 50 works<br />
councils in the Netherlands.<br />
The company also formulates<br />
a Code of Conduct to which its<br />
management in 45 countries<br />
has to adhere<br />
CascoGard joins KemaNord’s<br />
specialties division<br />
Armak (formerly Armour<br />
Industrial Chemical) builds<br />
the world’s largest plant for the<br />
production of fatty alkyl nitrogen<br />
derivatives in Morris, Illinois<br />
KemaNord AB acquires<br />
the majority shareholding in<br />
Barnängen<br />
Intervet acquires<br />
Láboratorios Saltor in Spain<br />
Akzo plans to merge with Philips<br />
Dunbar but the merger is called off<br />
Organon launches its first antidepressant,<br />
Tolvon ® , as well as<br />
its intra-uterine device Multiload ®<br />
Sikkens Car Refinishes Instruction<br />
Center opens in Sassenheim<br />
MoDo spins off its chemicals<br />
operations to the Swedish state;<br />
the new chemicals groups is<br />
called Berol Kemi AB<br />
International opens a new<br />
factory in Felling, Great Britain;<br />
it also launches the first selfpolishing<br />
copolymer antifouling<br />
coating for sea-going vessels<br />
Akzo’s fibers division makes<br />
losses that bring it to the brink<br />
of financial ruin; the company<br />
makes a net loss for the first<br />
time in its history<br />
T. Herrema, Director of Akzo’s<br />
Ferenka plant in Limerick<br />
(Ireland) is taken hostage by the<br />
IRA; he is freed after 36 days<br />
Sadolin Farveland ® , a chain<br />
of independent paint shops,<br />
is established<br />
The Walpamur Company<br />
changes its name to<br />
Crown Decorative Products<br />
Akzo’s management decides<br />
that, despite the problems of the<br />
fibers business, the company<br />
will continue as a coherent industrial<br />
group, concentrating on<br />
a limited number of worldwide<br />
positions<br />
ICI builds the world’s first commercial<br />
plant to manufacture<br />
protein from methanol<br />
A presidium within Akzo’s<br />
Board of Management develops<br />
a survival strategy for the company.<br />
The product portfolio is<br />
to be balanced between fibers<br />
(33%), chemicals (30%) and<br />
other products (37%) and the<br />
number of employees reduced<br />
Enka Glanzstoff and<br />
Akzo International BV are<br />
united as the “Enka Group”<br />
KemaNord acquires part of<br />
Nitro Nobel AB<br />
BT Kemi pollution scandal in<br />
Sweden<br />
KemaNord acquires the<br />
remainder of Nitro Nobel AB<br />
Akzo posts net profits and pays<br />
its shareholders a dividend for<br />
the first time since 1975<br />
KemaNord changes its name<br />
to KemaNobel<br />
Organon launches Andriol ®<br />
for the treatment of men with<br />
testosterone deficit<br />
Elektrokemiska Aktiebolaget<br />
(EKA) changes its name to<br />
Eka AB<br />
Eka researchers discover the<br />
foundations of its revolutionary<br />
Compozil ® paper chemicals<br />
system<br />
C.A. (later Sir Christopher)<br />
Hogg begins a complete reorganization<br />
of Courtaulds
A history in milestones<br />
Akzo launches a three-year<br />
energy saving campaign which<br />
will generate annual savings of<br />
NLG 135 million<br />
British branding agency Wolff<br />
Olins develops a uniform visual<br />
identity for the Enka Group<br />
Organon launches the<br />
low-dose contraceptive pill<br />
Marvelon ®<br />
Sikkens Painters Museum<br />
opens in The Hague, the<br />
Netherlands<br />
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991<br />
Akzo records a net loss once<br />
more. The company enters into<br />
patent litigation with DuPont<br />
over their respective products<br />
Arenka ® (Twaron ® ) and Kevlar ® .<br />
The conflict will go down in history<br />
as “the patent litigation of<br />
the century”<br />
Eka commences production<br />
of its revolutionary new paper<br />
chemicals system Compozil ®<br />
Intervet acquires<br />
Inter-Continental Biologics<br />
in the United States<br />
Malaysian Oleochemicals<br />
Sdn Bhd is incorporated into<br />
KemaNord<br />
Akzo increases its shareholding<br />
in Akzona to 100% and transforms<br />
it into Akzo America Inc.<br />
The Akzo fibers plant in Breda<br />
is closed down, and the chairman<br />
of the works council and<br />
three other employees go on<br />
hunger strike<br />
Erik Penser engineers the<br />
purchase of Bofors<br />
Casco launches the floor<br />
adhesive Cascoflex ®<br />
Akzo acquires the American<br />
Wyandotte Paint Products<br />
Company<br />
Casco, now part of KemaNobel,<br />
acquires Nordsjö<br />
Organon launches the muscle<br />
relaxant Norcuron ®<br />
Eka expands paper chemicals<br />
production based on Compozil ®<br />
The food systems groups of<br />
KenoGard and KemaNobel<br />
combine<br />
Duyvis merges with Recter and<br />
loses its “Royal” designation<br />
Akzo posts its best operating<br />
results since the company’s<br />
foundation and invests in new<br />
and improved products and<br />
production processes.<br />
It commences a six-year acquisition<br />
drive that will result in the<br />
purchase of over 30 companies,<br />
most of them in the important<br />
U.S. market<br />
Erik Penser purchases<br />
KemaNobel, reuniting it with<br />
Bofors in a company called<br />
Nobel Industries<br />
Intervet develops the first<br />
vaccine based on recombinant<br />
DNA technology to fight the E.<br />
coli bacterium in piglets<br />
Akzo’s Group Council formulates<br />
the company’s first Mission<br />
Statement<br />
The company builds plants at<br />
Delfzijl and Emmen (NL) for aramid<br />
fibers. Akzo makes numerous<br />
acquisitions and also sells<br />
American Enka to BASF.<br />
A test kit to identify AIDS in<br />
blood and blood products is<br />
launched by Organon Teknika<br />
The number of employees in<br />
Akzo’s fibers division increases<br />
for the first time for many years.<br />
The company moves the office of<br />
Akzo America from Asheville,<br />
North Carolina, to New York and<br />
also opens an office in Moscow<br />
Eka is acquired by Nobel<br />
Industries and becomes Eka<br />
Nobel AB. The merger makes<br />
sodium chlorate a major Eka<br />
product<br />
The soap operation of the original<br />
Armour & Co. is renamed the<br />
Dial Corporation<br />
Bofors scandal in India<br />
Akzo America acquires the<br />
specialty chemicals division<br />
of Stauffer<br />
Akzo issues its first company<br />
policy statement on health,<br />
safety and the environment<br />
Akzo divests its consumer<br />
products division to<br />
Sara Lee/Douwe Egberts<br />
Nobel Industries acquires<br />
Sadolin & Holmblad<br />
Akzo launches a new worldwide<br />
corporate identity, designed by<br />
Wolff Olins<br />
Akzo reorganizes its activities<br />
into six divisions<br />
Organon launches its third-generation<br />
low-dose contraceptive<br />
pill Mercilon ® as well as Livial ® , its<br />
drug for the treatment of menopausal<br />
symptoms in women<br />
Intervet acquires the animal<br />
health activities of Gist-Brocades<br />
in the Netherlands.<br />
Nobel Industries buys Berol<br />
Kemi from Procordia and<br />
merges it with Kenobel to<br />
form Berol Nobel AB<br />
Akzo and DuPont terminate<br />
their law suit<br />
Williams Holdings unites<br />
Crown Paints with the successor<br />
companies to Lewis Berger &<br />
Sons to create Crown Berger<br />
Akzo celebrates its 20th<br />
anniversary by giving its 75,000<br />
employees branded sports<br />
jackets<br />
Eka Nobel AB merges with<br />
Stora Kemi and Alby Klorat,<br />
as well as Albright & Wilson<br />
paper chemicals division<br />
Courtaulds separates itself into<br />
two businesses: Courtaulds<br />
Textiles for apparel manufacture;<br />
and Courtaulds plc for<br />
fibers and chemicals<br />
Nobel Industries acquires<br />
British paint company Crown<br />
Berger Ltd<br />
ICI commences manufacture<br />
of KLEA 134a as an alternative<br />
to CFCs<br />
Akzo introduces a new top<br />
management structure, ending<br />
the traditional federation<br />
of divisions<br />
For the first time in its history,<br />
Akzo recruits a board member<br />
from outside the company. It introduces<br />
flexible working hours and<br />
childcare for working mothers,<br />
and it completes the worldwide<br />
implementation of its new environmental<br />
management system<br />
Intervet acquires Nordisk<br />
Drøge & Kemikalie<br />
Nobel Industries is restructured<br />
under the state-owned bank<br />
Securum<br />
19
A history in milestones<br />
Akzo’s Chemicals and<br />
Salt divisions are merged<br />
Sikkens Painters’ Museum is<br />
relocated from The Hague<br />
to Sassenheim<br />
Nobel Industries divests its<br />
Consumer Products division to<br />
German consumer chemicals<br />
group Henkel<br />
Akzo merges with<br />
Nobel Industries, forming<br />
Akzo Nobel<br />
Akzo Nobel publishes its<br />
first environmental report<br />
Organon launches its<br />
dual action antidepressant<br />
Remeron ®<br />
The use of chlorine for pulp<br />
bleaching is fully eliminated<br />
in Sweden<br />
Organon launches Puregon ® , a<br />
recombinant Follicle Stimulating<br />
Hormone (FSH) fertility drug<br />
Nordsjö becomes the first<br />
European manufacturer permitted<br />
to use the EU flower, an environmental<br />
label<br />
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003<br />
Organon launches<br />
TOF-Guard ® , the first modern<br />
compact acceleromyograph<br />
for objective neuromuscular<br />
transmission monitoring<br />
Intervet acquires Norbio<br />
in Norway<br />
ICI’s pharmaceuticals and<br />
agrochemicals businesses<br />
are demerged to form Zeneca<br />
Akzo Nobel builds a powder<br />
coatings plant in Sweden<br />
Eka Chemicals launches paracetic<br />
acid as a bleaching agent<br />
Eka Chemicals acquires<br />
Enso Paperikemia, extending<br />
its operations to include paper<br />
coating<br />
ICI acquires Unilever’s Speciality<br />
Chemicals businesses and<br />
divests its bulk and intermediate<br />
chemicals businesses<br />
Akzo Nobel acquires<br />
Courtaulds of Great Britain.<br />
The European Commission<br />
forces the sale of Akzo Nobel’s<br />
aeronautical films and sealants<br />
businesses as a precondition for<br />
the acquisition of Courtaulds<br />
Organon launches Implanon ® ,<br />
a contraceptive rod implanted<br />
under the skin<br />
Intervet acquires Ausvac in<br />
Australia<br />
Akzo Nobel divests its fibers<br />
group Acordis to CVC Capital<br />
Partners<br />
Organon launches the estrogen-free<br />
oral contraceptive<br />
Cerazette ®<br />
Akzo Nobel divests Chefaro<br />
and the diagnostics business<br />
of Organon Teknika<br />
Intervet acquires German-based<br />
Hoechst Roussel Vet as well<br />
as Gellini in Italy<br />
Eka Chemicals acquires<br />
Hopton Technologies Inc. in<br />
the United States to add coatings<br />
technology to its portfolio<br />
Organon launches NuvaRing ® ,<br />
the first monthly vaginal ring<br />
for birth control<br />
Intervet acquires Bayer’s<br />
U.S. Biologicals operation<br />
Akzo Nobel divests its nonprescription<br />
pharma business<br />
Chefaro<br />
Akzo Nobel divests its<br />
diagnostics pharma business<br />
Organon Teknika<br />
Akzo Nobel sells its Printing<br />
Inks business to private equity<br />
company NeSBIC<br />
Akzo Nobel acquires<br />
Crompton Corporation’s<br />
Industrial Specialties business<br />
Intervet opens a new life<br />
science center in DeSoto,<br />
Kansas
A history in milestones<br />
2004<br />
Akzo Nobel’s catalyst business<br />
is sold to Albemarle Corp., its<br />
Phosphorus Chemicals business<br />
to Ripplewood Holdings<br />
LCC, and its coatings resins<br />
business to Nuplex Industries<br />
Diosynth and Organon are<br />
integrated into one operating<br />
business unit<br />
Henkel acquires the<br />
Dial Corporation<br />
Enka is sold by Acordis<br />
to the International Chemical<br />
Investors Group<br />
Akzo Nobel publishes its<br />
first CSR Report, launches<br />
its Community Program and<br />
is included in the Dow Jones<br />
Sustainability Indexes<br />
2005 2006 2007 2008<br />
Akzo Nobel announces that it<br />
will separate its pharmaceutical<br />
activities from its coatings and<br />
chemicals businesses.<br />
Organon BioSciences, comprising<br />
Organon, Intervet and<br />
Nobilon, is created.<br />
Akzo Nobel acquires the<br />
Canadian coatings company<br />
Sico Inc.<br />
Akzo Nobel moves its corporate<br />
headquarters from Arnhem to<br />
Amsterdam<br />
Akzo Nobel sells its pharma<br />
business Organon BioSciences<br />
to Schering-Plough<br />
ICI is acquired by Akzo Nobel<br />
To symbolize its transformation<br />
into a focused coatings<br />
and chemicals company, Akzo<br />
Nobel rebrands itself, acquiring<br />
a new logo and changing its<br />
name to <strong>AkzoNobel</strong><br />
21
22<br />
Chairmen of the Board of Management 1966–2003<br />
(from top left to bottom right):<br />
Klaas Soesbeek, 1966–1971<br />
Gualtherus (“Guup”) Kraijenhoff, 1971–1978<br />
Adolf Gustaaf van den Bos, 1978–1982<br />
Aarnout A. Loudon, 1982–1994<br />
Cees van Lede, 1994–2003
The name <strong>AkzoNobel</strong> derives from the 1994 merger<br />
between the Dutch conglomerate Akzo and the Swedish<br />
conglomerate Nobel Industries. This move marked the<br />
culmination of more than a century of acquisitions and<br />
mergers that created the two conglomerates. Indeed,<br />
some of the companies that Akzo had acquired could be<br />
traced as far back as the 18th century (Sikkens, Bemberg<br />
and Boldoot), while the earliest origins of a Nobel Industries<br />
subsidiary stem back to the 17th century (Bofors).<br />
23<br />
Overview<br />
Setbacks in the 1970s and 1980s<br />
The recovery plan<br />
Consolidation in the 1990s<br />
The merger with Nobel Industries<br />
Alfred Nobel: inventor and entrepreneur<br />
The Nobel Foundation<br />
The creation of Nobel Industries<br />
Crises in the 1980s<br />
Post-merger expansion and reorganization<br />
Focus on pharmaceuticals, coatings and chemicals<br />
Synthetic fibers divested<br />
Growth of Pharma<br />
Rebalancing the portfolio<br />
The split into Akzo Nobel and Organon BioSciences<br />
Akzo Nobel acquires Imperial Chemical Industries<br />
Industrial metamorphosis
24<br />
A history of histories<br />
The foundation of Akzo itself, however, was based on<br />
Vereinigte Glanzstoff Fabriken, a German chemical company<br />
formed in 1899. In the early decades of the 20th century,<br />
Vereinigte established itself in the chemicals industry as<br />
a leading producer of rayon and various paints and other<br />
coatings. In 1929, Vereinigte merged with Nederlandse<br />
Kunstzijdefabriek (NK or Enka, for short), a competing Dutch<br />
manufacturer of rayon. The resulting organization was named<br />
Algemene Kunstzijde Unie (AKU).<br />
From the 1930s to the 1960s, AKU became a solid market<br />
leader in the development and manufacture of synthetic<br />
fibers. In addition to rayon, AKU began producing such<br />
breakthrough synthetics as nylon and polyester. Chief among<br />
the company’s significant innovations was the invention of a<br />
derivative of nylon – an aramid synthetic fiber with interesting<br />
characteristics. AKU experimented with this synthetic fiber in<br />
the late 1960s.<br />
AKU had enjoyed generous profits from its core synthetic fiber<br />
products during the 1960s, and its corporate strategy looked<br />
sound for the 1970s. AKU joined forces with Koninklijke Zout-<br />
Organon (KZO) – a major Dutch producer of chemicals,<br />
drugs, detergents, and cosmetics – in 1969, and the resultant<br />
organization took the name Akzo.<br />
Setbacks in the 1970s and 1980s<br />
Further expansion plans on the part of Akzo were thwarted<br />
in the early 1970s, however, when an oil embargo by the<br />
OPEC oil cartel wreaked havoc with petrochemical markets.<br />
Akzo’s businesses, particularly those related to synthetic<br />
fibers, suffered. In addition to these oil-related problems, the<br />
fibers market was affected by turbulence from other quarters.<br />
During this period, many synthetic fibers became commodity<br />
products, and low-cost Far Eastern manufacturers took control<br />
of many industry segments. Burdened by weak demand<br />
and manufacturing overcapacity, Akzo’s profits plunged.<br />
By the late 1970s, some analysts speculated that Akzo was<br />
headed for bankruptcy.<br />
Another setback occurred in the 1980s, when the company<br />
was selling its new aramid synthetic fiber under the name<br />
of Twaron ® . Unfortunately for Akzo, fibers industry leader<br />
DuPont, headquartered in the United States, was simultaneously<br />
developing the fabric under the name of Kevlar ® , and<br />
DuPont began selling its product first. The two companies<br />
entered into litigation with each other over the patents in<br />
their respective products. Akzo was shut out of the lucrative<br />
U.S. market for Twaron ® and also faced stiff competition in<br />
its home market of Europe. The acrimonious litigation procedures,<br />
which took place not only in the United States but in<br />
many other countries too, were to last 11 years and earn the<br />
nickname ‘the lawsuit of the century’. Akzo’s failure to carve<br />
out a market for Twaron ® proved to be the culmination of the<br />
setbacks that had adversely affected its synthetic fibers operations<br />
throughout the 1970s.<br />
The recovery plan<br />
Throughout this turbulent period, Akzo executives scrambled<br />
to overcome adversity. They reduced the percentage<br />
of revenues attributable to synthetic fibers from more than<br />
50 percent in the early 1970s to less than 30 percent going<br />
into the 1980s. At the same time, they tried to supplant<br />
income from the struggling Fibers division with higher-<br />
margin products such as paint, non-commodity chemicals<br />
and pharmaceuticals. Akzo executives made another significant<br />
move towards reorganizing their operations in 1982,<br />
when they appointed Aarnout A. Loudon as Chief Executive<br />
Officer of the company. Loudon, a 46-year-old banker turned<br />
executive, had demonstrated strong leadership in turning<br />
around ailing Akzo subsidiaries in France and Brazil. Upon<br />
assuming leadership of the company, Loudon initiated an<br />
aggressive restructuring strategy designed to stabilize<br />
Akzo’s unwieldy balance sheet and to ensure the company’s<br />
long-term profitability.<br />
Among other maneuvers, Loudon further reduced Akzo’s<br />
emphasis on synthetic fibers to only 20 percent of corporate<br />
revenues and boosted its position in coatings and industries<br />
related to healthcare. He also decentralized decisionmaking<br />
and eliminated management layers. At the same time,<br />
Loudon launched an ambitious acquisition drive in 1984,<br />
chiefly designed to increase Akzo’s presence in the important<br />
U.S. market and to diversify into higher profit margin chemicals<br />
businesses. The preparatory step for this diversification<br />
process was the expansion of Akzo’s shareholding in its<br />
American subsidiary Akzona from 66 percent to 100 percent.<br />
The removal of Akzona’s minority shareholders – who had<br />
often been obstructive towards Akzo’s plans for development<br />
in the United States – allowed Akzo to bring its activities<br />
in that country in line with the policies of the entire company.<br />
Between 1984 and 1990, Akzo purchased more than 30<br />
companies, most in the United States, at a cost of approximately<br />
$1.8 billion. These firms were primarily involved in the<br />
production of salt, chemicals, and pharmaceuticals. To fund<br />
these purchases, Loudon simultaneously jettisoned poorly<br />
performing assets that were worth more than $1.5 billion. By<br />
the end of the acquisition campaign, Akzo had emerged as<br />
the leading global producer of salt and peroxides and one<br />
of the top 20 chemicals companies in the world. 1990 sales<br />
approached $10 billion and profits surged.<br />
Consolidation in the 1990s<br />
During the early 1990s, Akzo concentrated on improving efficiency.<br />
Compared with chemicals companies in Japan and<br />
the United States, its operations were bloated, chiefly due<br />
to restrictive government and organized-labor regulations<br />
in Europe. An important move of this period was the divestment<br />
of Akzo’s majority shareholding in the struggling artificial<br />
fibers manufacturer La Seda de Barcelona, a publicly listed<br />
company which was suffering such extensive losses that it<br />
was ultimately sold for one peseta. Gradual improvements in<br />
efficiency led to marked success in important divisions such<br />
as pharmaceuticals, which captured a key position in the<br />
reproductive medicine market. Its most notable product was<br />
Desogen ® , the top-selling birth control formula in the world.<br />
Similarly, Akzo enjoyed steady market share gains in some<br />
of its coatings businesses. The net result was that Akzo sustained<br />
steady sales and profits throughout the early 1990s,<br />
despite a global economic downturn.<br />
The merger with Nobel Industries<br />
Going into the mid-1990s, Akzo continued to reduce its<br />
emphasis on low-profit commodities such as salt and fibers<br />
and to boost its dependence on coatings and specialty<br />
chemicals. To that end, Akzo consummated a pivotal merger<br />
early in 1994 with Nobel Industries of Sweden. Nobel was a<br />
major competitor in global coatings and specialty chemicals<br />
markets. It operated subsidiaries worldwide and enjoyed a<br />
relatively strong position in U.S. markets. The company that<br />
arose out of the merger – Akzo Nobel N.V. – elevated Akzo’s<br />
revenues figure by more than 25 percent, gave the new<br />
company a leadership role in the global coatings industry,<br />
and bolstered the former Akzo’s stance in the European and<br />
United States markets. Access to cheaper raw materials was<br />
also facilitated by virtue of the increased size and enhanced<br />
purchasing power of the joint company. For the former<br />
Nobel Industries, the merger likewise offered reduced costs
Salt-drilling rig in Hengelo, the Netherlands. Koninklijke Nederlandse<br />
Zoutindustrie (KNZ) was founded in 1918 to exploit newly discovered,<br />
naturally occurring reserves of salt
26<br />
A history of histories<br />
because it could obtain necessary raw materials such as salt<br />
and chlorates more cheaply from Akzo than in the past.<br />
Alfred Nobel: inventor and entrepreneur<br />
Akzo’s merger partner took its name from the progenitor of<br />
the Nobel Peace Prize, Alfred Nobel. Nobel was born in 1833<br />
into a Swedish family which claimed heritage to the prodigiously<br />
gifted 17th century Swedish anatomist, botanist, writer<br />
and architect Olaf Rudbeck. Alfred Nobel’s father, Immanuel,<br />
was a self-educated inventor with an interest in explosives.<br />
An unsuccessful businessman, Immanuel was forced to file<br />
for bankruptcy in 1832 after the family home burned down.<br />
Leaving his family behind in Sweden, Immanuel moved to<br />
Russia in 1837 to start a new business. There, he invented<br />
an explosive device for which demand gradually increased.<br />
By 1842, Immanuel had achieved modest success with his<br />
invention, and he sent for his family. Alfred’s exposure to<br />
that environment, combined with his natural interest in<br />
chemistry, prompted him to form his own company called<br />
Nitroglycerin AB in 1864.<br />
Alfred’s key invention was finding a process for making nitroglycerin<br />
such that it did not explode during production and<br />
handling. However, the perfection of this technique came at<br />
great personal cost for Nobel, because during the testing<br />
process, an explosion killed Alfred’s brother and four other<br />
workers. The breakthrough led in 1866 to Nobel’s development<br />
of dynamite, which combined nitroglycerin with<br />
an absorbent substance composed mostly of silica. Nobel<br />
went on to create blasting gelatin and smokeless powder,<br />
and eventually claimed 350 patents. In an effort to overcome<br />
opposition from established gunpowder manufacturers and<br />
other competitors, Nobel and several associates formed the<br />
Nobel Dynamite Trust in 1886. This cartel eventually dominated<br />
five continents and Nobel dynamite factories dotted<br />
the globe.<br />
The Nobel Foundation<br />
A surprising turn of events occurred for Nobel in 1888<br />
when his brother, Ludwig, died and a French newspaper<br />
accidentally reported Alfred’s death instead. To his dismay,<br />
Alfred read his own obituary, in which he was described<br />
as the inventor of dynamite and the “merchant of death,”<br />
even though most of his explosives were used in nonmilitary<br />
applications. This experience motivated Nobel to<br />
demonstrate his true intent. Thus, when he died in 1896,<br />
Alfred directed that the bulk of his considerable fortune<br />
be used to establish a fund, the interest on which was to<br />
be awarded annually to persons whose work had been<br />
of the greatest benefit to mankind. One endeavor to be<br />
honored with a prize was that of having “conferred the<br />
greatest benefit on mankind.” The Nobel Foundation,<br />
which manages the fund’s assets, was founded in 1900<br />
and the first Nobel Prizes, including the prize for peace,<br />
were awarded in 1901.<br />
The creation of Nobel Industries<br />
After his death, Nobel’s conglomeration of businesses<br />
was divided into various corporations. Nobel’s Swedish companies<br />
evolved into two separate organizations. His original<br />
company, Nitroglycerin AB, continued to make explosives.<br />
Its name was changed to Nitro Nobel in 1965 and it was<br />
bought out by a chemicals group controlled by the prominent<br />
Wallenberg family in 1978. The resultant organization<br />
was called KemaNobel. The other segment of the Swedish<br />
Nobel operations became Bofors, a manufacturer of munitions.<br />
In 1982, Erik Penser, a young Swedish stockbroker,<br />
engineered the purchase of Bofors. Two years later, he purchased<br />
KemaNobel, reuniting the two firms in a company he<br />
called Nobel Industries.<br />
Crises in the 1980s<br />
In 1986, Penser’s company won a five-year, $1.2 billion<br />
contract to supply field artillery to the Indian government.<br />
Business analysts lauded the deal as one of the largest<br />
orders ever secured by a Swedish company – until it was<br />
discovered that Nobel Industries may have made illegal,<br />
covert payments of more than $4.5 million into a secret<br />
Swiss bank account to get the contract. To make matters<br />
worse, a year later it was discovered that Nobel Industries<br />
had illegally shipped arms to Iran, Iraq, and other countries<br />
not sanctioned for arms trade by the Swedish government.<br />
Meanwhile, in 1985, Nobel’s U.S. chemicals subsidiary,<br />
Bofors Nobel, Inc., filed for bankruptcy, largely because<br />
the U.S. Department of Natural Resources had sued<br />
the division for $15 million in environmental clean-up costs.<br />
Initially, Bofors Nobel had agreed to pay the clean-up<br />
expenses, but once higher-than-expected costs accrued,<br />
they elected to file for bankruptcy instead.<br />
Post-merger expansion and reorganization<br />
Despite Nobel Industries’ setbacks, Akzo executives viewed<br />
the company as a potential asset to their organization.<br />
In 1994, Akzo completed a pivotal merger with Nobel’s six<br />
business groups to create Akzo Nobel, then one of the ten<br />
largest chemicals companies in the world. Shortly before<br />
the merger, Akzo had implemented a sweeping reorganization<br />
drive to dismantle its five major business divisions<br />
and recreate them in four new groups – Chemicals, Fibers,<br />
Coatings, and Pharmaceuticals. Akzo Nobel continued to<br />
develop its U.S. markets aggressively, while it worked<br />
simultaneously to penetrate Asian and South American<br />
markets. By this time, Akzo Nobel had invested about<br />
33 percent of its resources in the Netherlands, 20 percent<br />
in Germany, and 22 percent in the United States, with<br />
many of its remaining investments scattered throughout<br />
Europe. In 1994, Akzo Nobel posted sales of approximately<br />
$11.5 billion, roughly 5 percent of which was netted as<br />
income. Akzo Nobel faced several challenges as it entered<br />
the mid-1990s. In 1995, its pharmaceutical unit, Organon,<br />
lost revenues following a scare that Marvelon ® and Mercilon ® ,<br />
its oral contraceptive pills, were linked to increased risk of<br />
thrombosis (abnormal blood clotting). Falling fiber prices,<br />
stagnant markets, and declining sales in the Coatings group<br />
also led to a mere 0.3 percent increase in profits in 1996.<br />
The company did forge some key partnerships, however,<br />
including a joint venture with Courtaulds to develop and<br />
market NewCell ® , a cellulosic filament yarn. It also spent<br />
$240 million to expand its production capacity for fluid catalytic<br />
cracking (FCC) and hydroprocessing catalysts (HPC).<br />
This capital investment was made to attract partners to<br />
its FCC and HPC businesses. A start was also made with<br />
restructuring the company’s specialty surfactants business,<br />
which had been suffering from overcapacity, as<br />
well as a stagnant market. As a result, the business unit<br />
began cutting costs and consolidating production. In 1997,<br />
Akzo Nobel sold its subsidiary Akzo Nobel Salt, Inc. as part of<br />
its effort to focus on its core operations.<br />
Focus on pharmaceuticals, coatings<br />
and chemicals<br />
Akzo Nobel’s restructuring of its pharmaceuticals, coatings<br />
and chemicals businesses began to pay off, and the balance<br />
sheet in 1997 reflected this. The company recorded a 7
Airbus. One in every three aircraft in the world<br />
is painted with <strong>AkzoNobel</strong> coatings<br />
Organon’s oral contraceptive pills being<br />
inserted into monthly strips<br />
27
28<br />
A history of histories<br />
percent increase in overall sales, while operating profits in its<br />
pharmaceutical interests climbed by 17 percent. Its Coatings<br />
and Chemicals groups secured a healthy 27 percent increase<br />
in operating profits. In 1998, the firm focused on making key<br />
alliances and acquisitions, as well as paring back less profitable<br />
operations. An agreement with Bayer AG was reached<br />
in which the German-based firm would produce ethylene<br />
amines exclusively for Akzo Nobel. Three printing-ink companies<br />
– Louis O. Werneke, Werneke & Mulheran and Label Inks<br />
– were purchased to secure a position as a leading supplier<br />
of printing inks in the United States market. In a move which<br />
was to allow a transformational reshaping of its portfolio, the<br />
company also acquired the British firm Courtaulds plc in July<br />
1998, thus creating the world’s largest coatings company.<br />
Following the acquisition, Akzo Nobel merged its various<br />
fibers businesses into a newly created company, Acordis.<br />
At the same time, because of poor growth and overcapacity,<br />
the company continued to consolidate its surfactants<br />
operations, while also selling off its plastics packaging and<br />
laminate and aluminum tube interests (the latter having entered<br />
the Akzo Nobel portfolio via the acquisition of Courtaulds and<br />
being divested by means of a management buy-out in 1998).<br />
Synthetic fibers divested<br />
A disappointing 1 percent increase in net profits in 1998<br />
led to a renewed focus on integrating Akzo Nobel’s newly<br />
acquired operations into its current businesses. The firm’s<br />
pharmaceutical operations – growing twice as fast as other<br />
companies in the industry – also became a major focus.<br />
The group’s Organon business had a strong position in<br />
the women’s healthcare market and was the world’s fourth<br />
largest producer of oral contraceptives. Akzo Nobel also<br />
strengthened its animal healthcare business, Intervet, with<br />
the purchase of Hoechst Roussel Vet, a deal which doubled<br />
the size of its veterinary interest. Perhaps the most important<br />
move was the sale in 1999 of Acordis to CVC Capital<br />
Partners. This highly complex deal, which was closed in<br />
December 1999, was further complicated by the simultaneous<br />
requirement for the company to prepare its IT systems<br />
for the new millennium. The completion of the agreement<br />
marked Akzo Nobel’s exit from the synthetic fibers business<br />
and solidified the company’s intent to focus on its core<br />
activities – Pharma, Coatings, and Chemicals.<br />
Growth of Pharma<br />
As Akzo Nobel entered the new millennium, its Pharma group<br />
was the fastest-growing pharmaceutical company in Europe.<br />
The unit accounted for 47 percent of Akzo Nobel’s total profits<br />
and its core operations focused on human and animal healthcare,<br />
while the company’s other groups also fared well despite<br />
weakening market conditions. The Coatings group acquired<br />
the aerospace and specialty coatings business of Dexter<br />
Corporation in the U.S., which strengthened its position in the<br />
global market and significantly increased the size of its aerospace<br />
coating operations. The Chemicals group also acquired<br />
Hopton Technologies, which was purchased to boost the<br />
paper chemicals business in the United States.<br />
Rebalancing the portfolio<br />
The impressive growth of Akzo Nobel’s Pharma group was,<br />
however, impacted by the collapse in sales of its potential<br />
blockbuster antidepressant Remeron ® after an unfavorable<br />
court ruling on one of its patents in the United States in 2002,<br />
opening the way for generic competition there. Two years<br />
later, Remeron ® suffered a similar fate in Europe. Against<br />
the background of a general economic downturn in world<br />
markets from 2002–2005, the Pharma group’s profitability<br />
was defended by a mixture of counter-measures including<br />
the recombining of Organon and Diosynth into a single unit,<br />
the launches of the contraceptive NuvaRing ® and Puregon ® /<br />
Follistim ® fertility products, and the initiation of a range of<br />
codevelopment and copromotion arrangements to speed<br />
the market entry of innovative new Pharma products. At<br />
the same time, the company’s Chemicals portfolio underwent<br />
a significant realignment. Akzo Nobel’s Catalysts,<br />
Phosphorous Chemicals and Coating Resins businesses<br />
were divested for a combined total of approximately<br />
c1 billion in 2004 and the company’s Chemicals activities<br />
were refocused on five growth platforms: Pulp &<br />
Paper Chemicals, Base Chemicals, Functional Chemicals,<br />
Surfactants and Polymer Chemicals. With the Coatings<br />
group further strengthened by a number of acquisitions<br />
during 2005, and the company increasingly concentrating<br />
on China and the Far East as growth markets, Akzo Nobel<br />
recorded sales revenues of c13 billion in 2005. This was also<br />
the year that the company produced its first CSR Report,<br />
launched its Community Program, and was included for the<br />
first time on the Dow Jones Sustainability Indexes.<br />
The split into Akzo Nobel and Organon BioSciences<br />
In 2006, Akzo Nobel announced its intention to split into two<br />
independent companies: Akzo Nobel, to focus exclusively<br />
on coatings and chemicals; and Organon BioSciences, to<br />
focus exclusively on human and animal healthcare. The initial<br />
plan was for a minority listing of Organon BioSciences on<br />
the Euronext Bourse in Amsterdam, with full separation of the<br />
two companies to occur within the following three years. On<br />
March 12, 2007, however, Schering-Plough made an offer to<br />
acquire Organon BioSciences for c11 billion. The offer was<br />
accepted, marking the termination of Akzo Nobel’s long association<br />
with pharmaceutical manufacture. Five months later,<br />
in August 2007, Akzo Nobel relocated its headquarters from<br />
its traditional base in Arnhem to Amsterdam – the financial<br />
capital of the Netherlands.<br />
Akzo Nobel acquires Imperial Chemical Industries<br />
On January 2, 2008, Akzo Nobel further strengthened its position<br />
as the world’s leading paints and coatings player through<br />
its acquisition of Imperial Chemical Industries PLC (ICI) for<br />
£8.1 billion (c10.8 billion). ICI, which in 2007 had achieved<br />
50 percent of its revenues from its paints businesses, traces<br />
its origins back to 1926, when it was founded in the United<br />
Kingdom via the merger of four companies, one of which was<br />
the British arm of Nobel Industries. ICI’s roundel logo was in<br />
fact derived from the Nobel Industries logo in use at that time.<br />
It would be an exaggeration to say that this acquisition ‘closed<br />
the circle’ of this history of histories; yet it does demonstrate<br />
the constantly interacting forces of continuity and change that<br />
continue to shape the company.<br />
Industrial metamorphosis<br />
The acquisition of ICI marked the completion of a transformation<br />
that Akzo Nobel had been undergoing. In the space<br />
of roughly a decade, the company had gradually shed its<br />
conglomerate structure and brought increasing focus to its<br />
activities. It had exited from the Fibers sector with the sale<br />
of Acordis and drastically rationalized its Chemicals activities,<br />
divesting three business activities in doing so. The creation<br />
of Organon BioSciences in 2006, and with it plans to seek a<br />
stock exchange listing for its combined pharmaceutical business,<br />
had set this trend in motion; with plans to relocate the<br />
company headquarters from Arnhem to Amsterdam recon-
A history of histories<br />
firming the new course. It was, however, the announcement in<br />
March 2007 of the sale of Organon BioSciences to Schering-<br />
Plough that boosted the momentum of the transformation.<br />
Following closely on the heels of this deal, Akzo Nobel used<br />
the proceeds of the sale to acquire ICI, a strategic acquisition<br />
which would make the company the undisputed world<br />
leader in the coatings sector and in particular the decorative<br />
coatings market.<br />
The metamorphosis Akzo Nobel had undergone brought with<br />
it the need to rebrand the company as a whole. On April 25,<br />
2008, four short months after closing the ICI acquisition, Akzo<br />
Nobel launched its new corporate brand, featuring among<br />
other things a subtle change in the way its name was to be<br />
written: from then on it would be known as <strong>AkzoNobel</strong>. More<br />
striking, however, was the new logo, depicting an athletic<br />
figure reaching out to the future, complete with a tagline which<br />
provides the title for this book: Tomorrow’s <strong>Answers</strong> <strong>Today</strong>.<br />
29
Ketjen<br />
(1835)<br />
KNZ<br />
(1918)<br />
Sikkens<br />
(1792)<br />
Zwanenberg<br />
(1887)<br />
Organon<br />
(1923)<br />
Nederlandse<br />
Kunstzijdefabriek<br />
Enka<br />
(1911)<br />
Nordsjö<br />
(1903)<br />
Nitro Nobel<br />
(1864) remaining 50%<br />
Barnängen<br />
(1868)<br />
Casco<br />
(1928)<br />
1961<br />
Van Hasselt<br />
(date unknown)<br />
Vereinigte<br />
Glanzstoff<br />
Fabriken<br />
(1899)<br />
Nitro Nobel<br />
(1864) initial 50%<br />
Stockholms<br />
Superfosfat<br />
Koninklijke<br />
Zout-Ketjen<br />
(KZK) (1961)<br />
(acquired by Chefaro 1950;<br />
Chefaro acquired by KZK 1965)<br />
1947<br />
1929<br />
1918<br />
Koninklijke<br />
Zwanenberg-<br />
Organon<br />
(1953)<br />
Algemene<br />
Kunstzijde<br />
Unie (AKU)<br />
(1929)<br />
renamed renamed<br />
(1871) KemaNord KemaNobel<br />
(1970)<br />
(1978)<br />
1962<br />
1965<br />
1967<br />
1965<br />
1965<br />
1961<br />
1961<br />
KZO<br />
(1967)<br />
1964 1973 1977 1982<br />
Noury & Van der Lande<br />
(1838)<br />
Kortman & Schulte<br />
(1886)<br />
Boldoot<br />
(1789)<br />
Intervet<br />
(1949)<br />
Crown Berger<br />
(1760)<br />
Sadolin<br />
(1777)<br />
Berol<br />
(1937)<br />
Eka<br />
(1895)<br />
Duyvis<br />
(1806)<br />
Bofors<br />
(1646)<br />
1984<br />
1968<br />
1969<br />
Akzo<br />
(1969)<br />
Armour<br />
(1867)<br />
Stauffer<br />
(1895)<br />
Nobel<br />
Industries<br />
(1984)<br />
1970<br />
1987<br />
Akzo Nobel<br />
(1994)<br />
1990<br />
1987<br />
1988<br />
1986<br />
1987<br />
1992<br />
1991<br />
1986<br />
Consumer<br />
Products<br />
divested<br />
Consumer<br />
Products<br />
divested<br />
Bofors<br />
divested<br />
Nitro Nobel<br />
divested
Key acquisitions and divestments<br />
International<br />
(1881)<br />
1968<br />
Courtaulds<br />
(1826)<br />
1998<br />
Hoechst<br />
Roussel Vet<br />
(1863)<br />
1999<br />
Acordis (Fibers)<br />
divested<br />
Legend<br />
(Date) – earliest foundation of company/name change/new company after merger<br />
Date – acquisition/divestment/merger of companies<br />
KNZ = Koninklijke Nederlandse Zoutindustrie<br />
KZO = Koninklijke Zout-Organon<br />
1999<br />
Bayer<br />
Biologicals<br />
(1863)<br />
2000<br />
2001 2004 2007<br />
Organon<br />
Teknika<br />
divested<br />
Printing<br />
Inks<br />
divested<br />
Catalysts<br />
divested<br />
ICI<br />
(1926)<br />
2008<br />
Phosphorus<br />
Chemicals<br />
divested<br />
Resins<br />
divested<br />
Chefaro<br />
divested<br />
Polymerization<br />
Catalysts<br />
divested<br />
Organon<br />
Biosciences<br />
divested<br />
31
32<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
9<br />
10<br />
11<br />
Enka, AKU, p. 41<br />
Arnhem<br />
Breda<br />
Delfzijl<br />
Ede<br />
Emmen<br />
Sikkens, p. 49<br />
Groningen<br />
Apeldoorn<br />
Sassenheim<br />
Ketjen, p. 63<br />
Amsterdam<br />
IJmuiden<br />
Rotterdam<br />
Koningklijke Nederlandse<br />
Zoutmaatschappij (KNZ), p. 67<br />
Boekelo (Enschede)<br />
Botlek (Rotterdam)<br />
Delfzijl<br />
Hengelo<br />
Oele (Hengelo)<br />
Twekkelo (Enschede)<br />
Usselo (Enschede)<br />
Noury & Van Der Lande, p. 73<br />
Deventer<br />
Apeldoorn<br />
Emmerich<br />
Kleve<br />
Roermond<br />
Kortman & Schulte, p. 79<br />
Rotterdam<br />
Boldoot, p. 83<br />
Amsterdam<br />
Van Hasselt, p. 91<br />
Rotterdam<br />
Dordrecht<br />
Herkenbosch<br />
Hilversum<br />
Duyvis, p. 95<br />
Koog aan de Zaan<br />
Zaandam<br />
Organon, p. 101<br />
Oss<br />
Intervet, p. 109<br />
Boxmeer<br />
marks the place on the map where the company<br />
in question (see the left-hand column) was<br />
founded.<br />
Locations named in a chapter are listed on the<br />
left under the name of the relevant company. The<br />
first location named is the place where the company<br />
was founded; all other locations are listed<br />
alphabetically.<br />
If locations cannot be distinguished from one<br />
another because they are too close together, a<br />
place already shown on the map or one that is<br />
central to those locations is given in parenthesis.<br />
Belgium<br />
<br />
8<br />
6<br />
<br />
Koog A/d Zaan<br />
<br />
Amsterdam<br />
3<br />
7<br />
<br />
Rotterdam<br />
<br />
9<br />
<br />
<br />
<br />
10<br />
Oss<br />
<br />
<br />
<br />
11<br />
Maastricht<br />
5<br />
<br />
1<br />
Arnhem<br />
Boxmeer<br />
The Netherlands<br />
Deventer<br />
2<br />
<br />
<br />
<br />
<br />
<br />
Groningen<br />
Hengelo <br />
<br />
Enschede <br />
4<br />
Germany
34<br />
Lunch break at the Perlon plant<br />
in Oberbruch, Germany, 1951.<br />
Perlon was a form of nylon
The Akzo legacy<br />
The roots of Akzo – the Dutch component of <strong>AkzoNobel</strong> – go back to<br />
the foundation of a lacquer manufacturing business by Wiert Willem<br />
Sikkens in Groningen in 1792. Many more companies were eventually<br />
to become part of the 20th century Dutch conglomerates AKU<br />
(Algemene Kunstzijde Unie) and KZO (Koninklijke Zout-Organon),<br />
which merged in 1969 to create Akzo.<br />
35<br />
Overview<br />
The creation of AKU<br />
The creation of KZO<br />
The creation of Akzo<br />
Pressure in key markets<br />
Efficiency gains and financial recovery<br />
The creation of Akzo Nobel
36<br />
The creation of Akzo<br />
The Akzo legacy<br />
Chief among these companies were, by date of foundation<br />
– on the AKU side – Vereinigte Glanzstoff Fabriken (1899)<br />
and Nederlandse Kunstzijdefabriek (1911) and – on the KZO<br />
side – Duyvis (1806), Koninklijke Zwavelzuurfabrieken van<br />
het Ketjen (1835), Noury & Van der Lande (1838), Kortman<br />
& Schulte (1886), Zwanenberg & Co. (1887), Koninklijke<br />
Nederlandse Zoutindustrie (1918) and Organon (1923).<br />
The companies that were to join forces under the Akzo name<br />
manufactured products ranging from vegetable oils (Duyvis)<br />
through salt (Koninklijke Nederlandse Zoutindustrie) and artificial<br />
fibers (Vereinigte Glanzstoff Fabriken and Nederlandse<br />
Kunstzijdefabriek Enka) to specialty paints (Sikkens), speciality<br />
chemicals (Vulnax), and pharmaceuticals (Organon).<br />
The history of the Akzo side of the company is a story of<br />
start-ups, acquisitions and mergers in both specialty and<br />
commodity businesses. Indeed, the drive to grow through<br />
mergers is inherent in Akzo’s very name.<br />
The creation of AKU<br />
In 1929, the German synthetic fibers company Vereinigte<br />
Glanzstoff Fabriken merged with its Dutch rival in the rayon<br />
market Nederlandse Kunstzijdefabriek. The new entity was<br />
called Algemene Kunstzijde Unie (General United Viscose),<br />
or AKU for short. From the 1930s to the 1960s, AKU became<br />
a solid market leader in the development and manufacture of<br />
synthetic fibers. In addition to rayon, AKU began producing<br />
such breakthrough man-made materials as nylon and poly-<br />
The summer of 1969:<br />
Dutch industry holds its breath<br />
ester. Chief among the company’s significant innovations<br />
was the invention of a heat-resistant and strong synthetic<br />
aramid fiber, a derivative of nylon.<br />
The creation of KZO<br />
Rumors abounded in Arnhem during the summer of 1969. According to the newspapers,<br />
several large conglomerates were holding secret merger talks. Such a merger would affect<br />
the whole of Dutch industry. There was much stock market speculation about who was<br />
involved, but no one knew the exact details. Then, on July 11, the uncertainty came to an<br />
end. Koninklijke Zout-Organon (KZO) and Algemene Kunstzijde Unie (AKU) announced<br />
that they were investigating the possibility of a full merger.<br />
In those days, AKU was a company operating approximately 47 factories on almost every<br />
continent, making it the world’s second largest synthetic fiber producer. KZO had been<br />
founded on October 13, 1967, and in the ensuing two years had taken over an impressive<br />
The evolution of AKU’s future merger partner KZO involved<br />
two pairs of mergers. Zwanenberg and Organon merged in<br />
1953 to create Koninklijke Zwanenberg-Organon, receiving<br />
the royal warrant that year (Kortman & Schulte and Noury &<br />
Van der Lande were added in 1965). Koninklijke Nederlandse<br />
Zoutindustrie and Koninklijke Zwavelzuurfabrieken van het<br />
Ketjen, meanwhile, merged in 1961 to create Koninklijke<br />
Zout-Ketjen (Sikkens being added in 1962).<br />
The creation of Koninklijke Zout-Ketjen is regarded by many<br />
economists as a turning point in the evolution of the Dutch<br />
chemicals industry, setting a trend whereby more and more<br />
companies merged in order to survive. The drive towards<br />
closer co-operation had its original roots in the years immediately<br />
following World War II, however, when the leaders of<br />
several Dutch chemicals businesses that had been ravaged<br />
by the war combined forces to create a joint sales office for<br />
their various products.<br />
Koninklijke Zwanenberg-Organon and Koninklijke Zout-<br />
Ketjen merged in 1967 to create Koninklijke Zout Organon,<br />
or KZO. KZO was a huge group by Dutch standards. It was<br />
organized into six divisions. The two largest were the Salt<br />
Chemicals division (with salt and its by-products such as<br />
soda and chlorine) and the Chemical Division (with a large<br />
variety of products ranging from sulfuric acid to catalysts<br />
for crude oil, peroxides, fatty amines, alcohol, and rubber<br />
chemicals). Then came the Coatings division, with Sikkens<br />
as its main part. There was also the Pharma division (with<br />
contraceptives and healthcare products) and the Food division<br />
(with products such as soups, sauces, peanuts and<br />
snacks). Finally, there was the Household Products division<br />
(with soaps, washing powders, detergents and cosmetics).<br />
The creation of Akzo<br />
AKU and KZO merged in 1969 to become Akzo, a diversified<br />
chemicals player of world standing. The logo of the new<br />
company was an open triangle.<br />
Pressure in key markets<br />
During the 1970s and 1980s, Akzo’s business with low-profit<br />
commodities such as salt and fibers came under severe pressure,<br />
and the company experienced periodic financial dif-<br />
ficulties. This trend was countered by selected divestments<br />
in combination with a major acquisition drive. Between 1984<br />
and 1990, Akzo purchased more than 30 companies, most of<br />
which were located in the United States, at a cost of approximately<br />
$1.8 billion. The acquisitions were primarily involved<br />
in the production of salt, chemicals, and pharmaceuticals.<br />
Not without reason was Akzo often referred to as a “republic of<br />
number of companies both inside and outside the Netherlands, including<br />
Pure Chemicals Ltd (United Kingdom), Hoesch Chemie (Germany) and Duyvis,<br />
the Dutch party snack maker.<br />
Under the heading “The pill with a pinch of salt,” the Deventer Dagblad wrote on<br />
July 8, 1969: “When we look at what has been going on in other countries, a close<br />
cooperation between this new chemical company and AKU, with its production of<br />
chemical fibers, seems most likely.” The paper hastened to add: “However, this is a<br />
matter of sheer speculation on our behalf.”
The Enka plant in Arnhem, the Netherlands, in 1929<br />
37
38<br />
The creation of Akzo<br />
The Akzo legacy<br />
1988: ‘Akzo, a new spirit’<br />
When Akzo launched its new corporate identity in 1988, it introduced more than just a<br />
new logo. The object of the new identity was to help create a united company in place of<br />
Akzo’s traditional federation of product groups and divisions. Brand guru Wally Olins was<br />
tasked with redesigning the existing ‘Akzo triangle’ into a more modern symbol representing<br />
the new Akzo; Olins’ company, the British branding agency Wolff Olins, had a few years<br />
earlier developed a new corporate identity for Enka.<br />
The symbol Wally Olins proposed, which became known as ‘the Akzo Man’, was inspired<br />
by a Greek sculpture dating back to 450 BC; it had one hand reaching back and the<br />
other stretching forwards, symbolizing an all-embracing balance between past tradition<br />
and future ambition. Wally Olins had discovered the sculpture in the Ashmolean Museum<br />
in Oxford, England. Akzo’s Board of Management was divided on Wally Olins’ proposal.<br />
Chairman of the Board Aarnoud Loudon, who had the casting vote, came down in favor of it.<br />
The new identity was launched internally in December 1987 at a conference for Akzo’s<br />
top 300 managers. ‘Akzo, a new spirit’ was the slogan that accompanied the roll-out.<br />
The official launch to the outside world followed in March 1988, supported by a massive<br />
advertising campaign and coinciding with the publication of Akzo’s annual report for 1987.<br />
The new corporate identity had a considerable effect both within Akzo and in the outside<br />
world. For the first time ever, Akzo presented itself as a single company – and some of Akzo’s<br />
constituent businesses had to abandon their own identities to make that step possible.<br />
kingdoms.” By the end of its acquisition campaign, Akzo had<br />
emerged as the leading global producer of salt and peroxides<br />
and one of the top 20 chemical companies in the world.<br />
In 1990, the company’s sales approached $10 billion.<br />
Efficiency gains and financial recovery<br />
During the early 1990s, Akzo concentrated on enhancing<br />
efficiency. Gradual improvements led to marked success<br />
in key divisions such as pharmaceuticals, which captured<br />
an influential position in the reproductive medicine market.<br />
Similarly, Akzo enjoyed steady market share gains in some of<br />
its paints and coatings businesses. The company sustained<br />
sales and profits throughout the early 1990s, despite a global<br />
economic downturn.<br />
The creation of <strong>AkzoNobel</strong><br />
The need to restructure the company’s portfolio and boost<br />
its existing activities in coatings and specialty chemicals<br />
led to the 1994 merger with Nobel Industries of Sweden –<br />
a major competitor in the global paint, coatings, and specialty<br />
chemical industries. Nobel Industries operated subsidiaries<br />
worldwide and enjoyed a relatively strong position in<br />
U.S. markets. The company that resulted – Akzo Nobel N.V.<br />
– boosted Akzo’s revenues by more than 25 percent, gave<br />
the new company a leadership position in the global paints<br />
and coatings industry, and bolstered the former Akzo’s position<br />
in the European and U.S. markets. The former Nobel<br />
Industries benefited from economies of scale offered by<br />
Akzo, providing inexpensive access to raw materials such as<br />
salt and chlorates.
Akzo’s first corporate headquarters in Arnhem,<br />
the Netherlands, in the early 1970s<br />
39
40<br />
Jacques Coenraad Hartogs, who founded the rayon company<br />
Enka in 1911, having previously worked as a manufacturing<br />
supervisor for the British rayon company Courtaulds
The Akzo legacy<br />
On May 8, 1911, a select group of men stood on the doorstep of Van<br />
den Bergh, a notary public in The Hague. They were all related to their<br />
leader, Jacques Coenraad Hartogs, a former chemistry teacher who<br />
had learned how to make fibers out of viscose (dissolved wood pulp)<br />
when working for the firm of Courtaulds in England. The notary drew up<br />
a contract on the basis of which the men established the Nederlandse<br />
Kunstzijdefabriek, abbreviated to NK or Enka, on Vosdijk in Arnhem.<br />
Arnhem had clean groundwater for the manufacturing process and<br />
personnel were easy to find in the city.<br />
41<br />
Overview<br />
An order is an order<br />
Expansion during and after the Great War<br />
The genesis of AKU – and a first economic crisis<br />
World War II: from full to zero capacity<br />
Post-war innovations<br />
A world leader in synthetic fibers<br />
The collapse of the rayon market<br />
The formation of Enka-Glanzstoff and Akzo<br />
Losses – and a master plan to stem them<br />
Resistance in Breda<br />
A new product – and a new problem<br />
Further cutbacks<br />
Pressure on profitability<br />
Competition from Asia
42<br />
The creation of Enka, AKU and<br />
the Dutch synthetic fibers industry<br />
The Akzo legacy<br />
An order is an order<br />
A brand new pilot plant was commissioned in 1912, and<br />
manufacturing and sales started that autumn. A year later,<br />
Enka employed 60 workers and six office staff. The company<br />
boasted five spinning machines but, while the first of<br />
these had managed to produce yarns of reasonable quality,<br />
the other four flatly refused. Initial orders had already been<br />
accepted, so the goods had to be delivered. Dismantling<br />
of the full apparatus revealed that constantly switching the<br />
machines on and off had fouled up the viscose piping so<br />
badly that hardly any flow was possible. A couple of brushes<br />
were soon purchased from the corner shop and fastened to<br />
a braided wire rope, and the piping was cleaned out. This<br />
saved the day and the first orders left the plant just in time.<br />
Expansion during and after the Great War<br />
During World War I, the borders of the Netherlands (which<br />
was neutral during the conflict) were closed. Textiles and textile<br />
raw materials could no longer be imported, and demand<br />
for Enka’s synthetic fibers and yarns grew sharply. The company<br />
expanded significantly and by 1918 had 300 employees.<br />
The Arnhem plant could no longer keep up with demand,<br />
A debt to Courtaulds –<br />
and a battle with a rival<br />
and in 1922 a plant with four times the spinning capacity was<br />
built in Ede. Three years later, a third plant, with an associated<br />
research center, was built in Tivolilaan in Arnhem.<br />
Other people saw that a lot of money could be earned with<br />
fibers, and a number of competitors established themselves<br />
in the Netherlands. Enka, meanwhile, expanded further.<br />
The firm’s initial exports had been mainly to Germany, but<br />
Enka extended its market to include other European countries.<br />
Enka participated in other fiber companies while building<br />
its own plants in France, the United Kingdom and Italy.<br />
In Germany, an existing fibers plant was taken over in joint<br />
partnership with the Vereinigte Glanzstoff Fabrieken.<br />
The genesis of AKU – and a first economic crisis<br />
The firm of Courtaulds tried to stop the establishment of Enka in 1910. While Jacques<br />
Coenraad Hartogs was working as a manufacturing supervisor for Courtaulds, he developed<br />
a new spinning bath, a crucial component in the process of spinning synthetic fibers.<br />
Hartogs offered his invention to Courtaulds, who were not interested, deeming it “nothing<br />
new.” Hartogs was granted a patent for it and later implemented his invention in Arnhem.<br />
Courtaulds protested, but lost the battle over the patent. After that, Enka’s relationship with<br />
the British company was somewhat cool until, at the end of the century, Akzo Nobel took<br />
over the whole of Courtaulds and merged its own Fibers business with that of Courtaulds<br />
to create the separate fibers company Acordis.<br />
The step across the Atlantic followed in 1929. The company’s<br />
own employees built the American Enka Corporation<br />
site in Asheville (North Carolina). The same year, Algemene<br />
Kunstzijde Unie (AKU), of which Enka was only a part,<br />
was created through a merger with the German Vereinigte<br />
Glanzstoff Fabrieken. There were separate management<br />
boards for the German and Dutch parts of the company.<br />
A close alliance with the Hollandse Kunstzijde Industrie<br />
in Breda was also formed in 1930. Then came the Great<br />
Depression, resulting in plummeting prices, cancelled orders<br />
and a large accumulation of stocks. Most of the manufacturing<br />
facilities managed to stay open, but only with difficulty.<br />
Not until 1939 could light be seen at the end of the tunnel.<br />
World War II: from full to zero capacity<br />
By the beginning of World War II, the plants in Arnhem and<br />
Ede were running flat out. The Netherlands was occupied<br />
by Nazi Germany, and AKU built two new plants under<br />
pressure from the occupying power. One of these was to<br />
process straw to produce raw materials for rayon yarns and<br />
paper; the other, also on the Kleefse Waard industrial estate<br />
in Arnhem, was to make rayon fiber as a replacement for<br />
wool and cotton, which were in short supply during the<br />
war years. These plants continued to operate until 1944.<br />
The Germans then terminated production and forced<br />
the workers to help construct lines of defense as the tide of<br />
the war turned against them in Europe. By the time<br />
Germany surrendered in 1945, the plants in Arnhem and<br />
Ede were deserted ruins.<br />
Reconstruction soon started, however, and by 1946 all<br />
the Dutch plants were producing again. However, Enka’s<br />
German companies were either in the Russian zone or else
A female operator in an Enka plant during<br />
the mid-1950s<br />
The fibers plant in Breda, the Netherlands, was occupied by employees in 1972 in response to a<br />
draconian restructuring plan put forward by Akzo’s management. The plan aimed to return the<br />
fibers business to profitability but was withdrawn in the face of massive employee resistance
44<br />
The creation of Enka, AKU and<br />
the Dutch synthetic fibers industry<br />
The Akzo legacy<br />
Viscose<br />
Viscose is a viscous organic liquid used to make rayon and cellophane.<br />
Cellulose from wood or cotton fibers is treated with sodium<br />
hydroxide, then mixed with carbon disulfide to form cellulose xanthate,<br />
which is dissolved in more sodium hydroxide. The resulting<br />
viscose is extruded into an acid bath either through a slit to make<br />
cellophane, or through a spinneret to make viscose rayon (sometimes<br />
simply called viscose).<br />
Viscose was created by French scientist and industrialist Hilaire<br />
de Chardonnet (1838 - 1924), inventor of the first artificial textile<br />
fiber, artificial silk, in Échirolles in 1884.<br />
The process for manufacturing viscose was then patented by three<br />
British scientists, Charles Frederick Cross, Edward John Bevan and<br />
Clayton Beadle, in 1891.<br />
The manufacture of viscose became big business when Samuel<br />
Courtauld & Co. started manufacturing it in the early 20th century.<br />
By the 1920s and 1930s, it had almost completely replaced the<br />
traditional cotton and wool for women’s stockings and underwear<br />
in Europe and the United States.<br />
had been badly damaged. In Arnhem, the<br />
manufacture of viscose rayon for car tire<br />
yarns began. Rayon was also the raw material<br />
for Enka ® -spons (Enka ® sponge).<br />
Post-war innovations<br />
The Arnhem research center experimented<br />
with the production of man-made fibers<br />
and, in 1952, a plant for manufacturing<br />
nylon yarns and fibers – under the brand<br />
name Enkalon ® – was built in Emmen.<br />
Another nylon product was Akulon ® , for<br />
the plastics industry. In 1955, the plant in<br />
Emmen was also making polyester yarns<br />
and fibers, under the brand name Terlenka ® .<br />
AKU by that stage had 50,000 employees,<br />
spread over 30 companies in eight countries.<br />
These were huge organizations. For<br />
example, at any given point in time there<br />
were around 5,400 people working in Ede<br />
alone. Some were foreign workers, while<br />
others were drawn from all four corners of<br />
the Netherlands. The personnel were transported<br />
by the firm’s own bus company, the<br />
Eigen Vervoers Organisatie (EVO). The Ede<br />
site boasted the largest private transport<br />
company in the Netherlands, with buses<br />
traveling from Vlaardingen, near Rotterdam,<br />
to Emmen and even picking people up from<br />
Kleve, across the border in Germany.<br />
A world leader in synthetic fibers<br />
It was a time when AKU was expanding significantly,<br />
but the company was not alone in<br />
this. The entire fibers sector was doing the<br />
same. In Europe alone, the production capacity<br />
of nylon expanded by 20 percent, and by<br />
the mid-1960s a further 60 percent had been<br />
added. A downturn had to come sooner<br />
or later. However, AKU’s board expected<br />
demand for synthetic yarns and fibers to continue<br />
rising. AKU expanded its manufacturing<br />
capacity everywhere, as well as entering<br />
into joint ventures with other fiber manufac-<br />
turers. In 1966 they invested 3.5 billion Dutch<br />
guilders worldwide, a billion of that in the<br />
Netherlands alone. With 65,000 employees,<br />
AKU was one of the biggest synthetic fiber<br />
and yarn manufacturers in the world.<br />
The collapse of the rayon market<br />
In 1966 the tide turned. The economy stagnated,<br />
rayon prices plummeted and the manufacture<br />
of rayon fibers on the Kleefse Waard<br />
(Arnhem) site was stopped. Nevertheless,<br />
the expansion plans for synthetic fibers continued:<br />
AKU wanted to quadruple production<br />
The competitors, however, also expanded,<br />
and supply exceeded demand. Many synthetic<br />
yarns now came from the Eastern<br />
Bloc. In 1967, the number of personnel in<br />
the Netherlands fell from 15,200 to 13,700,<br />
although without mass redundancies. New<br />
products were also introduced, such as<br />
the Enka ® chamois and a synthetic leather,<br />
Xylee, made on the Kleefse Waard site.<br />
The formation of Enka-Glanzstoff<br />
and Akzo<br />
In 1969, matters seemed to be improving<br />
in the light of an upturn in the economy.<br />
It was in this year that Enka-Glanzstoff was<br />
created (in the years following the 1929<br />
merger of Vereinigte Glanzstoff Fabriken<br />
with Nederlandse Kunstzijdefabriek [Enka]<br />
to form AKU, the company had traded in the<br />
Netherlands as AKU but had retained the<br />
Glanzstoff name for operations in the German<br />
market). Prior to 1969, Enka and Glanzstoff<br />
both had separate Dutch and German<br />
management boards, but this time they<br />
merged to form a united company whose<br />
Board of Management had two chairmen<br />
and equal numbers of Dutch and German<br />
members. AKU remained the holding<br />
company. In that same year, AKU merged<br />
with Koninklijke Zout-Organon (KZO) to<br />
form Akzo. AKU’s research and develop-
The creation of Enka, AKU and<br />
the Dutch synthetic fibers industry<br />
The Akzo legacy<br />
ment departments represented the core of<br />
Akzo’s research capabilities.<br />
Losses – and a master plan to<br />
stem them<br />
A year later, the situation changed dramatically.<br />
Demand for fibers tailed off and prices<br />
fell, while manufacturing costs – mainly for<br />
personnel – increased sharply in what was<br />
a labor-intensive business. In 1972, losses<br />
were made on nylon yarns, polyester fibers,<br />
synthetic leather and cellophane. The Board<br />
of Management drew up a far-reaching<br />
master plan. Five factories in four countries<br />
were to be closed. In the Netherlands, Breda<br />
and Emmen were on the list.<br />
Resistance in Breda<br />
The master plan met with massive resistance,<br />
above all in Breda – a state-of-the-art<br />
fibers plant in which new spinning lines had<br />
been commissioned only a few months earlier.<br />
Enka Glanzstoff’s Central Works Council<br />
rejected Akzo’s proposals. The local works<br />
councils backed the Central Works Council,<br />
and the works councils of Akzo’s non-fiber<br />
companies lent their support to the protests.<br />
The unions demanded that not a single Enka<br />
company should be closed down before<br />
alternative employment had been found<br />
for all employees, speaking of “disastrous<br />
plans”, presented with “gross disregard for<br />
the interests of employees.”<br />
The management of Akzo and Enka<br />
Glanzstoff was divided as to how to face<br />
these demands, as were the Dutch and the<br />
German sides within Enka Glanzstoff itself.<br />
Their disunity was apparent to the outside<br />
world, and public opinion turned against<br />
Akzo. To break the deadlock, two commissions<br />
set to work: a technical-economic<br />
commission of the Central Works Council,<br />
and a commission composed of independent<br />
experts. The former advised the<br />
withdrawal of the master plan; the latter lent<br />
it qualified support.<br />
On 18 September 1972, employees took<br />
over the Breda site, demanding that the<br />
Enka companies should be kept open.<br />
It was the first ever organized take-over<br />
of a site in the Netherlands; Dutch and<br />
Belgian flags were flown at half-mast by<br />
the occupying employees. Intense negotiations<br />
involving the participation of the<br />
Dutch Secretaries for Economic Affairs<br />
and Social Affairs were initiated, and on<br />
23 September Akzo’s Board of Management<br />
withdrew the master plan, stating that the<br />
restoration of order within the company<br />
was of prime importance. It pointed out,<br />
however, that both its Fibers and non-<br />
Fibers activities would suffer the economic<br />
consequences of this decision. The Dutch<br />
and Belgian flags were hoisted in celebration<br />
at Breda. Reflecting later on these<br />
events, Guup Kraijenhoff – who occupied<br />
the informal position of Chairman of Akzo’s<br />
Board of Management at the time – stated<br />
that it would have been better for the entire<br />
company had the master plan been carried<br />
out at this juncture rather than later, as eventually<br />
happened. “It would also have been<br />
better from a social point of view, because<br />
the employment situation was favorable at<br />
the time, creating better chances of alternative<br />
employment for those being made<br />
redundant,” he said. The employees went<br />
back to work at Breda, but the structural<br />
problems of the Fibers business remained<br />
unresolved. A deceptive hope presented<br />
itself in the form of the 1974 oil crisis, which<br />
drove up crude oil prices, thus triggering<br />
higher prices for chemical fibers and yarns.<br />
With the unrest of the recent past still fresh<br />
in their minds, Enka-Glanzstoff’s Board of<br />
Management reluctantly announced plans<br />
to expand production of selected products<br />
in line with the company’s competitors.<br />
An informal – but highly influential<br />
– chairman<br />
Gualtherus (“Guup”) Baron Kraijenhoff<br />
played a pivotal role in the development of<br />
Akzo during the 1970s. Originally Chairman<br />
of the Board of Management of Koninklijke<br />
Zwanenberg-Organon, he oversaw the<br />
merger of that company with Koninklijke<br />
Zout-Ketjen (KZK) to form Koninklijke<br />
Zout-Organon, or KZO. As its Chairman,<br />
he pushed for a merger between KZO and<br />
AKU after AKU had abandoned merger<br />
talks with DSM in the late 1960s and, following<br />
the completion of the merger in 1969,<br />
initially served on Akzo’s new fifteen-man<br />
Board of Management as one of four vicechairman<br />
under Chairman Klaas Soesbeek.<br />
On Soesbeek’s retirement in May 1971,<br />
Kraijenhoff assumed the informal chairmanship<br />
of Akzo until his own retirement in 1978.<br />
Although never fully official, this position<br />
was extremely influential. Guup Kraijenhoff’s<br />
chairmanship coincided with difficult economic<br />
circumstances, but it also witnessed<br />
the introduction of many important building<br />
blocks of what would eventually become<br />
<strong>AkzoNobel</strong>. The first unifying Akzo logo<br />
– a blue triangle – was developed under his<br />
leadership, as was Akzo Nederland bv (an<br />
organization which brought together some<br />
50 works councils in the Netherlands). The<br />
first ever Akzo Code of Conduct, which was<br />
formally binding on the company’s management<br />
in 45 countries worldwide, was introduced<br />
at the same time. And the rebalancing<br />
of the company’s portfolio in 1977, which<br />
A fair day’s pay for a fair day’s work<br />
It was extremely difficult to find suitable personnel in Emmen in the 1950s. The locals<br />
were used to the free outdoor life of Drenthe. They decided on their own working hours,<br />
ate and smoked whenever they felt like it, fetched beer from the grocer’s on the corner<br />
and refused to wear a white overall to work. After all, they reasoned, it would only get dirty.<br />
If they didn’t feel like working, they just stayed at home. “What’s the problem?” asked one<br />
Emmen lass, surprised when her boss took her to task for absenteeism. “I’m not asking you<br />
to pay me for that day!”<br />
45
46<br />
The creation of Enka, AKU and<br />
the Dutch synthetic fibers industry<br />
The Akzo legacy<br />
occurred in response to the net loss posted in 1975, turned<br />
Akzo’s fortunes around and allowed it, a year later, to pay its<br />
shareholders a dividend for the first time in three years.<br />
A new product – and a new problem<br />
During the 1970s, Enka’s research departments were<br />
working flat out to improve product quality and develop<br />
cost-saving processes. In time they produced something<br />
totally new: aramid, a class of very strong synthetic fibers<br />
ideal for reinforcing rubber and plastics, which can be used,<br />
for example, in cables and conveyor belts. Aramid yarn is five<br />
times stronger than steel.<br />
Aramid production was stepped up in 1982. The Delfzijl salt<br />
site started to produce the raw material, which was then<br />
spun to make Twaron ® , the brand name of the aramid fiber.<br />
Because of the high development costs, the Dutch government<br />
invested significantly in this new process. Almost<br />
immediately difficulties arose with the American company<br />
DuPont. They were also making an aramid yarn under the<br />
brand name of Kevlar ® , and they claimed that they had a<br />
patent on an essential component of AKU’s manufacturing<br />
process, the spinning bath for producing the aramid.<br />
A long and costly legal battle ensued which was only settled<br />
– peacefully – many years later.<br />
Further cutbacks<br />
Enka remained in the red during 1977 and 1978. The conclusion<br />
was that the future would lie mainly in industrial yarns<br />
for applications such as tires, technical fabrics, ropes and<br />
nets, as well as in non-fiber products such as plastics, membranes,<br />
dialysis membranes, machines and chemical drilling<br />
fluids and binders. The plant for nylon stocking yarns in<br />
Emmen was closed, and the production of polyester textile<br />
yarn in Breda was cut.<br />
Agreements were made with other European fiber manufacturers<br />
concerning a general reduction in production but,<br />
in 1980, a reduction of 550,000 tons was still needed. The<br />
extremely low value of the dollar was enabling the United<br />
States to export large quantities of chemical fibers, intermediate<br />
products and carpets to Europe cheaply.<br />
Enka had already significantly reduced its dependence on<br />
chemical fibers. Further restructuring led to the disappearance<br />
of 4,000 of the 30,000 jobs in the Netherlands, Germany and<br />
Northern Ireland. The manufacturing facility in Breda finally<br />
closed in September 1982 and approximately 250 jobs at the<br />
Arnhem head office gradually disappeared. Earnings from<br />
textile yarn and fibers and carpet yarn still remained weak.<br />
Pressure on profitability<br />
With more than 31 percent of turnover, 42 percent of personnel<br />
and 31 percent of profits, Enka was still Akzo’s<br />
largest business in 1986. At the same time, it depended<br />
heavily on the concern for support and was a significant<br />
drain on its financial resources. Enka’s top management<br />
readily admitted that their business would never have<br />
survived the chemical fibers crisis without Akzo’s help.<br />
The money earned by other parts of Akzo, especially by the<br />
ever profitable Pharmaceuticals division, was used to cover<br />
the losses from Fibers. Chairman of the Enka Board Joseph<br />
R. Hutter warned, however, on the occasion of its 75th jubilee,<br />
that Enka would have to find its own financial resources<br />
for further growth, modernization and rationalization if it<br />
were to generate an acceptable return and contribute to<br />
Akzo’s further development.<br />
That was precisely the problem. Despite extensive and<br />
far-reaching reorganizations, cost savings and personnel<br />
reductions, the Fibers division as a whole was unable to<br />
meet Akzo’s profitability requirements. Because of this, in<br />
the middle of the 1990s the final finishing of viscose yarn<br />
was moved from Ede to the low-wage economy of Poland in<br />
order to reduce costs. Plans were developed to sell service<br />
units in Emmen and at the Kleefse Waard site in Arnhem.<br />
That did not mean that certain parts of the Fibers business<br />
were not doing well. One example was the Membrana business<br />
unit in Germany, which made technical membranes<br />
for medical and industrial applications and for water purification.<br />
Membrana very quickly acquired a good name for<br />
quality products. Earnings from other industrial products<br />
were also very satisfactory.<br />
Competition from Asia<br />
It was primarily manufacturing for textile applications that<br />
was in difficulties. The biggest problems were experienced<br />
by the companies making viscose yarn. This was used to<br />
manufacture, among other things, menswear and luxury<br />
blouses for women. During the 1980s, however, there was<br />
a flood of cheap textiles from Eastern Europe, and this was<br />
later compounded in the early 1990s by enormous competi-<br />
tion from Asia. Akzo – by now Akzo Nobel – preferred to<br />
invest in its Pharmaceuticals and Coatings groups, where the<br />
profitability was higher. However, the company felt responsible<br />
for its Fibers group and looked for partners or prospective<br />
buyers willing to take over that part of the business.<br />
Akzo Nobel failed in this, but found a solution instead in the<br />
takeover of UK fibers player Courtaulds in 1998. The Fibers<br />
division of the former Courtaulds together with Akzo Nobel’s<br />
Fibers group was then spun off into a separate company,<br />
Acordis, on January 1, 1999. Acordis had sufficient scale to<br />
be able to succeed on its own as a pure fibers player.<br />
In August 1999 an international investment group, CVC<br />
Capital Partners, announced its interest in taking over<br />
Acordis. Akzo Nobel entered into an agreement to sell its<br />
Fibers business to CVC for c825 million. Acordis took with<br />
them provisions of approximately c225 million. CVC had a<br />
64 percent share in the new company, which was established<br />
in the Netherlands; the management of Acordis took<br />
15 percent, and the remaining 21 percent share was taken<br />
by Akzo Nobel. Acordis had a two-tier management structure,<br />
consisting of a board of management and a supervisory<br />
board, on which Akzo Nobel was also represented.<br />
At the end of the 20th century, Folkert Blaisse, chairman<br />
of the Acordis Board of Management, observed that the<br />
transition period was at an end. “Acordis is now going to<br />
work on becoming a solid, independent company with good<br />
opportunities for the future,” he said. The fibers company<br />
had started on a new chapter in its history. With manufacturing<br />
facilities in Germany, the Netherlands, the United<br />
Kingdom, the USA, Brazil, Italy and Poland, Acordis focused<br />
on the production of a wide range of fibers (acrylic, alginate,<br />
carbon, polyamide, staple and viscose) for industrial, textile,<br />
medical and hygiene applications, as well as yarn.
An Enkalon advertisement from 1964 Workers leaving Akzo’s Breda fibers plant after its closure in 1982
48<br />
The Sikkens Painters’ Museum in Sassenheim, the Netherlands, houses<br />
a complete replica of an antique painter’s workshop, as well as a replica<br />
of a car bodyshop
The Akzo legacy<br />
Fifteen years after the Danish dyer Jacob Holmblad founded the<br />
forerunner of Sadolin in Denmark, another paint manufacturing company<br />
began in the Netherlands. In 1792, the painter and glazier<br />
Wiert Willemszoon Sikkens opened a small paint and varnish works<br />
in a gatehouse in the city wall of Groningen. His son, Geert Willem,<br />
continued the business and in 1837 entered into partnership with his<br />
cousin by marriage, Willem Penaat. Their company traded under the<br />
name G.W. Sikkens & Co.<br />
49<br />
Overview<br />
A new factory and a new product<br />
World War I – A brake on expansion<br />
An innovative application for the automotive field<br />
Keeping pace with the USA<br />
Sikkens in color<br />
Relocation to Sassenheim<br />
Surviving World War II<br />
A new move into synthetic resins<br />
Car refinishing systems<br />
The route to KZO – via KZK<br />
Serving the bodyshops<br />
“Our attitude was different”<br />
A quick invisible repair<br />
The power of a brand
50<br />
Sikkens:<br />
From local start-up to world leader in coatings<br />
The Akzo legacy<br />
By 1880, the Sikkens family was no longer<br />
in charge, but the business retained the<br />
name. The firm had a warehouse for paints<br />
on Heerebinnensingel and a small factory<br />
in Zwarteweg. G.W. Sikkens & Co sold primarily<br />
to the building trades, although even<br />
at this point it also produced special lacquers<br />
for carriages and wagons. The company’s<br />
interest in the automotive sector was<br />
in fact to become the defining factor in its<br />
evolution. By the end of the 20th century,<br />
this small enterprise would become one of<br />
the three largest car refinishes companies<br />
in the world.<br />
A new factory and a new product<br />
Around 1900 a large number of homes<br />
were built close to the factory. The smells<br />
from the open lacquer boilers caused a<br />
great deal of nuisance, and the local residents<br />
were afraid of fire. The nuisance was<br />
so great that in 1903, Sikkens built a new<br />
factory on the south side of the city of<br />
Groningen, in the Helpman district. It was<br />
there that they also began producing socalled<br />
Japanese lacquers. These were<br />
Recipe for varnish<br />
smooth, high-gloss lacquers for finishing<br />
decorative objects and for interior decoration.<br />
Branded Pinorin Japan, they achieved<br />
great success, not only in the Netherlands<br />
but throughout Europe.<br />
In 1905, Queen Wilhelmina granted the firm<br />
the title Koninklijke (Royal). From that year,<br />
the full name of the firm became Koninklijke<br />
Lak- en Japanlakkenfabriek G.W. Sikkens<br />
& Co. The managing director, Willem Albert<br />
Penaat (son of Wiert Willemszoon Sikkens’<br />
original partner), traveled throughout Europe<br />
acquiring orders, while his brother Johannus<br />
made sure that everything ran smoothly at<br />
home from a technical point of view.<br />
World War I – A brake on expansion<br />
The business was doing well until the<br />
fatal year 1914, when World War I broke<br />
out. The Netherlands was neutral and so<br />
was debarred from trading with any of the<br />
warring nations. The country’s borders were<br />
closed and, in one fell swoop, 70 percent of<br />
Sikkens’ turnover was lost. There was only<br />
one way to survive – increase sales in the<br />
Netherlands – so depots with Sikkens ® pro-<br />
“Take a new earthenware vessel. Add four parts linseed oil, a dash of massicot, one ounce<br />
completely burned umber, a peeled clove of garlic and a piece of rye bread. Let these boil<br />
until they thicken. Place half a pound of seed lacquer in another vessel. Cover, allow it to<br />
melt, and carefully stir. Remove it from the fire and let it cool (until the pot no longer glows).<br />
Make certain that no lit candle or open flame comes in contact with the turpentine, as it will<br />
ignite. Stir the turpentine and heat it in a thick-walled bottle. Fill a pot with hot water and<br />
place the bottle in the water so that it reaches a high temperature. Stir the turpentine well<br />
and pour it through a piece of gauze into the glass bottle. If the mixture is cold and thickens<br />
as a result, add a bit of turpentine.”<br />
Sikkens varnish formula, approximately 1800<br />
ducts were set up all over the country. They<br />
were managed by well-trained wholesalers<br />
who were located close to their customers<br />
– painters and other building tradesmen.<br />
These distributors were appointed as Official<br />
Dealers and given exclusive rights to sell<br />
Sikkens ® materials.<br />
The shortage of raw materials severely limited<br />
Sikkens’ expansion, but did not prevent<br />
the company from planning for the aftermath<br />
of the war. The company conceived not only<br />
a national, but also an international sales<br />
and distribution system during this period.<br />
This was put into full effect following the termination<br />
of hostilities.<br />
Nevertheless, Sikkens was still a small company<br />
which, since its establishment 126<br />
years earlier, had not grown beyond having<br />
only a dozen employees. Internationally,<br />
however, the firm had a good name – Sikkens<br />
stood for quality products. In the decades<br />
to come, Sikkens was to produce paints for<br />
many application sectors, including the protection<br />
of buildings and boats as well as interior<br />
decoration. The company’s involvement<br />
with the automotive sector was to prove<br />
decisive, however.<br />
A dedication to safety<br />
An innovative application for the<br />
automotive field<br />
In 1924, the gatehouse next to the Sikkens<br />
factory was demolished and replaced by a<br />
large new factory. A laboratory for quality<br />
control and product development was then<br />
added at the instigation of August Mari<br />
Mees, who joined the company in 1924 and<br />
who, in due course, was to become the<br />
founder of the Sikkens Group. The company<br />
was already producing the decorative<br />
paint Rubbol ® A–Z ® , which was originally<br />
a phenol/wood oil paint. In 1926, the new<br />
laboratory succeeded in making a quickdrying<br />
derivative of this product, Rubbol ®<br />
Japanlak sneldrogend, suitable for cars.<br />
This lacquer dried more quickly and was<br />
more durable than rival lacquer types.<br />
In America, however, the automobile in-<br />
dustry was using different lacquers. Employing<br />
explosives left over after the war<br />
(guncotton or nitrocellulose), people there<br />
were making lacquer which was no longer<br />
applied with a brush but with a spray gun.<br />
This made it possible to quickly paint massproduced<br />
cars.<br />
In the 19th century, Sikkens in Groningen had its own safety department. The varnish boiler<br />
Van der Veer, who had worked for the company since 1870, always had a large sheet of iron<br />
to hand in case of emergencies. Whenever the hot stand-oil boiler caught fire, he would<br />
quickly throw the iron sheet over it and cover this with a wet sack. He would then jump on<br />
top of the boiler and stay there until he was certain that the fire was out.
Sikkens first made its Rubbol ® Japanese lacquer suitable for the painting of cars in 1926.<br />
It was a decisive development for the paint manufacturer
52<br />
Sikkens:<br />
From local start-up to world leader in coatings<br />
The Akzo legacy<br />
Keeping pace with the USA<br />
Not everyone at Sikkens saw a future in these cellulose lacquers,<br />
but they could not risk missing the boat – or, rather,<br />
the car. In 1928, a new manufacturing facility was built next to<br />
the still new paint factory to house the brand new company,<br />
Sikkens Celluloselakfabriek. On December 14, 1928, at the<br />
official opening, wholesalers were introduced to the new cellulose<br />
products Nitro Rubbol ® and Nitro Reparatie Zwart.<br />
The company now had two horses in the race for the favors<br />
of the automobile industry and the car owner – its improved<br />
Japanese lacquers, made from teak oil and natural resin, and<br />
Rubbol ® lacquer, based on nitrocellulose. Sikkens’ development<br />
from decorative paints and lacquers to coatings for<br />
automotive and also aircraft applications was to prove a key<br />
factor in the company’s successful expansion and internationalization.<br />
Another important brand for the automotive sector,<br />
Autoflex ® , which was launched in 1932, would remain on the<br />
market for the next six decades.<br />
Sikkens in color<br />
The company grew and, along with it, so did its factories. In<br />
1932, the firm was awarded the title Purveyor to the Royal<br />
Household. Sikkens published trade magazines for house<br />
painters and also a magazine for wholesalers. The first<br />
Sikkens advertising films appeared in the second half of the<br />
1930s. One of these was even partly in color – an exciting<br />
innovation in those days.<br />
Sikkens opened up new markets. Industrial paint users were<br />
offered batches of paints and varnishes specially made<br />
to meet their requirements. Regular customers already inclu-<br />
ded famous names such as radio and light bulb manufac-<br />
turer Philips, truck builder Kromhout, aircraft manufacturer<br />
Fokker, train builder Werkspoor, airline KLM and lock manufacturer<br />
Lips. In 1938, Sikkens employed around 90 people.<br />
Relocation to Sassenheim<br />
The company’s manufacturing site in Groningen was by the<br />
late 1930s bursting at the seams. The cellulose factory had<br />
already moved a couple of streets away, but that was not<br />
very convenient because it was easier when everything was<br />
together on one site.<br />
With the knowledge that most of its major customers were<br />
located in the western part of the Netherlands, the company<br />
looked there for a suitable site for its paint factories. They<br />
ended up in Sassenheim, where there was a field which<br />
could no longer be used for growing bulbs. And there,<br />
where the busiest motorway and the busiest railway line in<br />
the Netherlands crossed, the new Sikkens factories were<br />
built. In 1939 the threat of war was imminent. The management<br />
wanted at all costs to move to the new site before the<br />
war upset things.<br />
In a lightning move on September 13, 1939, everything was<br />
relocated from Groningen to Sassenheim – filing cabinets,<br />
office furniture and machinery. When the first people arrived,<br />
there were no windows in the buildings and the site had not<br />
yet been surfaced, so everyone had to trudge through wet<br />
sand to get to work.<br />
Eighty of the 90 Groningen personnel moved with the factories<br />
to Sassenheim. The other ten did not dare to make the<br />
move to the west. Most of the office staff found homes in the<br />
fashionable town of Oegstgeest, whereas the majority of the<br />
factory workers ended up in Noordwijk. Many of them lived<br />
together in the same street. Natives of Noordwijk still refer to<br />
it as Groningen Street.<br />
Surviving World War II<br />
The newly-relocated company had a hard time of it during<br />
World War II. During the fighting in May 1940, Sikkens was<br />
in the firing line between German paratroops and Dutch<br />
defenders. In 1942, the company set up its own fire brigade<br />
and an air defense squad. Two years later, it became clear<br />
just how necessary these organizations were because, following<br />
an air raid, a fire caused a great deal of damage.<br />
Production fell to zero.<br />
A new move into synthetic resins<br />
Reconstruction started swiftly after the end of the war, however.<br />
A hundred thousand homes had to be repaired in the<br />
Netherlands, not to mention the many roads, bridges, viaducts<br />
and rail links that had been damaged. And paint and<br />
varnish were needed for all of them. Because of the shortage<br />
of raw materials, in the beginning Sikkens could not produce<br />
enough to meet the demand. The company therefore started<br />
to make synthetic resins itself as raw materials for its own<br />
paints. The production of synthetic resins was subsequently<br />
transferred to an independent part of the company, Synthese,<br />
later to become the Resins business unit.<br />
Car refinishing systems<br />
By 1948, the shortage of raw materials was a thing of the<br />
past and manufacturing was again running flat out. Sikkens<br />
at this point had 229 employees and Synthese 31. The postwar<br />
era saw a huge growth in prosperity in the Western world<br />
and, with it, a massive increase in car ownership. The concept<br />
of a dedicated car refinishes industry – for repainting<br />
cars that had been repaired following an accident –<br />
first developed in the United States. Perceiving the potential<br />
of this trend, Sikkens set out to exploit this new market,<br />
as well as the original automotive manufacturing sector.<br />
The fast-drying Autoflex ® Sneldrogend – based on alkyd<br />
resin technology which had been developed in Sassenheim<br />
during the war – gave the company a huge advantage over<br />
its competitors and this breakthrough product was followed<br />
up in 1961 by Autoflex ® Washprimer and Autoflex ® Filler,<br />
thus creating a refinishing system which could be completed<br />
in a single day.<br />
Sikkens set itself ambitious growth targets and in 1954 it<br />
listed on the Dutch stock exchange in order to fund its plans.<br />
By this stage, the company was producing automotive<br />
coatings for many public transport companies and vehicle<br />
body constructors including FIAT, Ford, Morris and Simca.<br />
The company’s aircraft coatings, meanwhile, were being<br />
successfully used for Gloster Meteor and Hawker Hunter<br />
jet fighters, while the innovative 24-hour and one-pot systems<br />
were introduced for the domestic decorative (home)<br />
paint market.<br />
In 1957, a new oil mill was installed on the Sassenheim site.<br />
Sikkens Constructieverven, serving the building trades,<br />
started up under the name Sicova in nearby Leiden.<br />
Acquisitions and joint ventures abroad during the late 1950s<br />
gave the company access to a wider range of markets and<br />
lifted the headcount to around 1,600. In 1960, the various<br />
activities were consolidated to form the Sikkens Group.<br />
Approximately 40 percent of the company’s output was<br />
being exported.<br />
The route to KZO – via KZK<br />
In 1962, the Sikkens Group became part of Koninklijke<br />
Zout-Ketjen (KZK), which included Gembo, a manufacturer<br />
of water glass, printing inks and Valspar ® paints. Two<br />
years later, Sikkens took over the Valspar ® paints activities<br />
from Gembo. In 1963, CetaBever, a manufacturer of DIY
Hoarding advertising: the planned construction<br />
of the new Sikkens plant in Sassenheim,<br />
the Netherlands, shortly before World War II<br />
broke out<br />
Sir Winston Churchill, British Prime Minister<br />
during World War II, visits Sikkens’ Sassenheim<br />
site in 1946<br />
53
54<br />
Sikkens:<br />
From local start-up to world leader in coatings<br />
The Akzo legacy<br />
products, and Talens, a producer of artists’ paints based in<br />
Apeldoorn, also became part of Sikkens.<br />
Then, in 1967, KZK merged with Koninklijke Zwanenberg-<br />
Organon to create Koninklijke Zout-Organon (KZO). From<br />
that point on, Sikkens shares the same history as that of<br />
KZO, becoming part of Akzo in 1969 and in 1994 part<br />
of Akzo Nobel. Together with the German Lesonal and<br />
the French Astral, Sikkens formed the Coatings division<br />
of Akzo Nobel.<br />
Serving the bodyshops<br />
By the mid-1960s, the Autoflex ® product line had more<br />
than 500 ready-mixed colors. To help bodyshop sprayers<br />
identify paint colors accurately, the company introduced<br />
the Sikkens ® Car Color Selector, an innovative color selection<br />
book. Encouraged by its successes in the Dutch<br />
market, Sikkens then targeted the large and technologically<br />
advanced German car refinishes market, building on the<br />
success of the Autoflex ® line and following this up with its<br />
revolutionary two-component topcoat Autocryl ® . Autocryl ®<br />
was more expensive than existing car refinish systems, and<br />
it called for a change in working methods on the part of<br />
bodyshop sprayers, but energetic marketing in combination<br />
with an extensive training program assured the success<br />
of the new product line.<br />
The difference between<br />
lacquer and paint<br />
“Our attitude was different”<br />
Both lacquer and paint are mixtures of pigment and binding medium, which are thinned<br />
with a solvent to form a liquid vehicle. Both are used to decorate or protect surfaces and<br />
are generally applied in thin coats that dry (by evaporation or by oxidation of the vehicle)<br />
to an adhesive film.<br />
Lacquer was first made more than two thousand years ago in Asia from the resin of the<br />
Lacquer tree, Toxicodendron vernicifluum, and used to make and decorate traditional<br />
artifacts. Lacquer is light but strong. It is resistant to acid or alkali and it changes color<br />
and hardens on contact with air to give a jet-black, impermeable finish which can be<br />
Further innovations followed, fuelling growth throughout<br />
and beyond Europe – mixing machines that allowed onthe-spot<br />
mixing of paints were introduced into bodyshops,<br />
the first integrated color documentation for car refinishes<br />
(Colorscala ® , later called Colormap ® ) was created, and<br />
microfiche technology was employed to keep bodyshops<br />
informed about changes in the central color database.<br />
Meanwhile, the old-fashioned customer orientation that had<br />
helped Sikkens penetrate the German car refinishes market<br />
was applied to the massive U.S. market. As Henk Groen,<br />
the “godfather” of the Car Refinishes Group, was to recall:<br />
“Our attitude was different – going to the bodyshops and<br />
working with them to solve their problems. We didn’t come<br />
wearing white coats. Our people wore overalls and had dirty<br />
hands and said, ‘Let me show you how it can be done.’ That<br />
attitude towards the customer created an opening for us,<br />
and that’s why it took 12 or 13 years before the competition<br />
caught up with us.”<br />
Quick invisible repair<br />
Each time Sikkens was launched in a new country,<br />
Groen would hear the same remarks: “Our country is different.<br />
Our culture is different. You have to take a different<br />
approach here.” But Groen and his colleagues understood<br />
that no matter how different cultures might be, customers<br />
all wanted the same thing when they brought their car to<br />
the repair shop. They wanted it back with no sign of the<br />
damage and as quickly as possible. That was the essence<br />
of the Sikkens slogan: “Quick invisible repair.” The simplicity<br />
of this message was complemented by advanced<br />
concepts in customer service aimed at the entrepreneurs<br />
who owned the repair shops. Sikkens offered them support<br />
with their financial planning, marketing, advertising and sales<br />
promotion, to help them grow their businesses. The Acoat<br />
selected ® partner program has since spread around the world<br />
to serve the market’s largest and most prestigious body-<br />
shops. Meanwhile, building on Sikkens’ strength in providing<br />
user training for products, the first Car Refinishes Instruction<br />
Center was established in Sassenheim in 1974.<br />
The power of a brand<br />
Towards the end of the 1980s, Sikkens introduced computer<br />
technology to link its successful color database to<br />
its equally successful on-site mixing machines. This Mixit ®<br />
system made for even more precise mixing, while reducing<br />
paint usage and increasing efficiency in the bodyshops.<br />
The company celebrated its 200th anniversary in 1992.<br />
By 1998, it was producing the same amount of paint in a<br />
built up in layers. A similar product, shellac, is derived from the secretions of the Lac insect<br />
Laccifer lacca, dissolved in alcohol. The term lacquer now refers to any fast-drying clear or<br />
colored coating applied by spray in a variety of finishes from ultra matte to high gloss, and<br />
composed of a resin dissolved in solvent.<br />
First used in cave paintings in France and Spain more than 15,000 years ago, paint is an<br />
opaque solid film applied to a substrate. It is composed of finely ground pigments, natural<br />
or synthetic, which give it color and consistency, solvents to make it easy to apply, resins to<br />
help it dry, and additives to improve its covering, filling or anti-fungal properties.
Sikkens assumed a powerful position in the car refinishes market<br />
through a combination of innovative products and high-quality<br />
training in their use<br />
55
56<br />
Sikkens:<br />
From local start-up to world leader in coatings<br />
The Akzo legacy<br />
single day as was made in a whole year in 1946. As part of<br />
Akzo Nobel’s Coatings division, the organization no longer<br />
traded as Sikkens, but the name was, and still is, used as a<br />
brand name.<br />
In 1994, the then Akzo merged with Nobel Industries, whose<br />
portfolio included significant coatings activities. The merger<br />
brought with it decorative coatings brands such as Sadolin ®<br />
and Crown ® Berger, which were incorporated into the<br />
Coatings division of the newly-created Akzo Nobel. The division<br />
was then split up into a number of business units, which<br />
continued the tradition established by Sikkens. Akzo Nobel’s<br />
acquisition of the British Courtaulds in 1998 added even<br />
more coatings operations.<br />
<strong>Today</strong>, <strong>AkzoNobel</strong> is the biggest paint manufacturer in<br />
the world, with activities in decorative coatings for interior<br />
and exterior decoration and protection, industrial finishes<br />
and powder coatings, marine and protective coatings<br />
and car refinishes. Decorative coatings brands include<br />
Sadolin ® , Dulux ® and Flexa ® , while industrial brands include<br />
International ® , Interpon ® and Resicoat ® .<br />
The Sikkens Painters’ Museum<br />
The Sikkens Painters’ Museum showcases a unique collection which pays tribute to every<br />
aspect of the painter’s trade, from home decoration to carriage painting. This is reflected<br />
not only in the museum’s large collection of painting materials and equipment, and the<br />
magnificent craftsmanship demonstrated there, but also in its extensive library and precious<br />
collection of historical wallpapers.<br />
The museum shows the workshops where painters once produced their own paints from<br />
all kinds of raw materials, the ladders and scaffolding that they used, and their means of<br />
transport. It also highlights techniques of the past, such as wood and marble imitations,<br />
and the crafts of carriage painters, glaziers and wallpaper-makers.<br />
The heart of the museum is the Cees Tromp collection of artifacts celebrating the evolu-<br />
tion of painting. Tromp himself was a master painter who witnessed the sweeping changes<br />
in the trade during the 1950s and 1960s. On his travels through the Netherlands, Tromp<br />
amassed a unique collection providing a broad view of the history of the painter’s trade.<br />
Sikkens Lakfabrieken acquired the collection in 1973 and opened the Sikkens Painters’<br />
Museum in The Hague in 1981, with Tromp as the curator. In 1992, the museum moved<br />
to the former town hall of Sassenheim.<br />
In the museum’s Sikkens Room, the history of the Sikkens brand and the development of<br />
<strong>AkzoNobel</strong> are displayed, with presentations from each business unit showing how products<br />
and services have changed over time. The museum also houses a complete replica<br />
of an antique painter’s workshop and a replica of a car bodyshop, as well as individually<br />
themed exhibitions.
Production of Sikkens paint at Sneek, the Netherlands, in 1996.<br />
Sikkens sold the Sneek operation in 2001 to CPS Colors
58<br />
Sikkens:<br />
From local start-up to world leader in coatings<br />
The Akzo legacy<br />
The Sikkens Foundation<br />
The Sikkens Prize was inaugu rated in 1959 on the initiative of<br />
A.M. Mees, the then director of the Sikkens Paint Factory in<br />
Sassenheim. The prize was introduced as an appreciation of<br />
artists, architects and designers whose work created a synthesis<br />
of space and color.<br />
Mees’ initiative stemmed on the one hand from his interest in art,<br />
and on the other from his position at a company in which color was<br />
the leading factor in the manufacture of products. In the years that<br />
followed, many Sikkens Prizes were awarded to architects, artists<br />
and organizations in the Netherlands and abroad, and the Sikkens<br />
Prize became a household name in the world of art and culture.<br />
In 1972, Akzo Nobel disengaged the Sikkens Prize from industrial<br />
patronage and placed it under an independent foundation, the<br />
Sikkens Prize Foundation, later called the Sikkens Foundation.<br />
The award formula was expanded and increased attention was<br />
given to color as a universal phenomenon.<br />
The core activity of the Sikkens Foundation is to periodically<br />
award the Sikkens Prize to persons and organizations that, in<br />
the board’s opinion, have made a special contribution to the<br />
Foundation’s goals. The recipient of the first Sikkens Prize was<br />
the architect Gerrit Rietveld (in 1959). Among those who came<br />
after him were Le Corbusier (1963), Theo van Doesburg (1968)<br />
and Donald Judd (1993).<br />
In recent times, the Sikkens Prize has usually been awarded to<br />
artists and architects who have carried out pioneering work in the<br />
field of color application. The Sikkens Foundation does not restrict<br />
itself to art and architecture, however, but sees the universal phenomenon<br />
of color in a very broad context – as testified by the award of<br />
Sikkens Prizes to the Hippies (1970), the governmental department<br />
responsible for the IJsselmeer polders (1979), the filmmaker Ettore<br />
Scola (1983), and the sanitation department of the City of Paris (1995).<br />
A.M. Mees, founder of the Sikkens Group and<br />
initiator of the Sikkens Prize. Bronze bust by<br />
Hans Verhulst
Gerrit Rietveld’s Schröder House in Utrecht, the Netherlands.<br />
Rietveld won the first Sikkens Prize in 1959 for his entire oeuvre,<br />
in particular for his “realization of a synthesis between space and color”<br />
Maurice Agis and Peter Jones won the Sikkens Prize in 1967 for their<br />
conception of spatial structures, based on the interrelation of surfaces,<br />
lines and colors<br />
59
60<br />
Richard Paul Lohse won the 1971 Sikkens<br />
Prize for his new compositional techniques in<br />
painting. These were adjudged “Of the highest<br />
merit” and “A signpost towards visual necessities<br />
in the developed environment”<br />
Ettore Scola won the 1983 Sikkens Prize for the<br />
use of color in his films, including Una giornata<br />
particolare and Passione d’amore. The scene<br />
shown here comes from Il mondo nuovo (That<br />
night in Varennes)
Donald Judd won the 1993 Sikkens Prize for his surprising use of form<br />
and particularly color in the fields of furniture-making and architecture<br />
The Dutch retail company HEMA won the Sikkens Prize in 2004<br />
in recognition of the attention it pays to the color and design of its<br />
broad assortment of articles for daily use
62<br />
Ketjen’s operation in the north of Amsterdam, 1835
The Akzo legacy<br />
On September 6, 1835, King William I of the Netherlands granted three<br />
residents of Amsterdam a patent to import and manufacture sulfuric<br />
acid. This chemical, which was used primarily by weaving and cottonprinting<br />
mills for dyeing textiles, was in short supply in the Netherlands<br />
on account of the war that was being fought with Belgium at the time.<br />
One of three entrepreneurs awarded the patent was the apothecary<br />
Gerhard Tileman Ketjen. He and his two partners set up a sulfuric acid<br />
works on Trapjesschans in Amsterdam, approximately where the Nieuwe<br />
De la Mar theater now stands.<br />
63<br />
Overview<br />
Innovation and diversification<br />
Destruction and reconstruction<br />
From Ketjen to KZO<br />
Incorporation into the Chemicals division
64<br />
Ketjen:<br />
A leading sulfuric acid manufacturer<br />
The Akzo legacy<br />
In 1900 the firm of Ketjen built a new sulfuric acid plant in<br />
Amsterdam, on the banks of the River IJ near Nieuwendam.<br />
Situated in a desolate and unpopulated area, the plant was<br />
close to the water, offering easy access to tankers. This facilitated<br />
the export of large quantities of sulfuric acid. The new<br />
plant was followed in 1914 by a hydrochloric acid plant. As<br />
the Netherlands did not have an indigenous salt industry at<br />
the time, the hydrochloric acid plant used imported salt as<br />
raw material. World War I proved very profitable for Ketjen.<br />
The Dutch government purchased two-thirds of all the company’s<br />
output for the manufacture of explosives, while the<br />
company’s products were also used by the glass industry.<br />
Innovation and diversification<br />
Hard times arrived after the war and remained until 1929,<br />
when a further sulfuric acid plant was built, primarily to supply<br />
the Mekog fertilizer plant in IJmuiden near Amsterdam. The<br />
1930s witnessed both innovation and diversification. In 1935<br />
a Ketjen researcher, Piet Smit, developed a new invention.<br />
He treated sawdust with sulfuric acid and in so doing created<br />
activated carbon, which was ideal for decolorizing<br />
cane- and beet-sugar juice. A Ketjen subsidiary, Activit,<br />
commercialized Smit’s invention.<br />
Another employee, a Belgian named Du Saar, invented a<br />
water softener for treating the boiler feed water on steamships.<br />
Further subsidiaries were set up to exploit this<br />
development. In 1937 the old contact sulfuric acid plant<br />
was upgraded to become the biggest sulfuric acid plant in<br />
Europe. Additional plants were built for the manufacture of<br />
different products – for example, sulfite, bisulfite and potassium<br />
permanganate. The last of these is a raw material for<br />
Emissions – and restitutions<br />
making the artificial sweetener saccharin – a product that<br />
was to be much sought-after during World War II.<br />
Destruction and reconstruction<br />
Sulfuric acid is highly corrosive, and during the past century Ketjen had several problems<br />
with leaks in its manufacturing equipment. One evening, poisonous sulfur vapors escaped<br />
from the plant on Trapjesschans. People in an old timber city theater nearby took to their<br />
heels. The Amsterdam city council insisted that the company relocate and Ketjen moved to<br />
a site at the end of Overtoom. Things were not much better at the new location, however.<br />
Acidic emissions were bad news for local market gardeners, who brought their withered<br />
carrots and lettuces to the company, demanding restitution. Ketjen paid up. In due course<br />
the farmers looked on such compensation as a fixed part of their income.<br />
Allied bombers hit Ketjen’s sulfuric acid storage facilities on<br />
July 28, 1943, with the result that thousands of tons of sulfuric<br />
acid ended up in the River IJ. In September the following<br />
year, the Germans destroyed the cranes and transport facilities.<br />
By the end of the war, the plant was completely inoperative.<br />
A revival commenced in October 1945, however. Ketjen<br />
was invited to manage a number of German companies on<br />
behalf of the Dutch government and it profited from post-war<br />
reconstruction. The building of a sulfur dioxide plant started<br />
in 1947, followed by the construction of laboratories.<br />
A plant to make catalysts for the oil industry was built in 1953<br />
under an American license. Over the next few years two<br />
more plants were added, one of them specifically to make<br />
desulfurizing catalysts that removed sulfur from oil.<br />
Ketjen also purchased a large tract of land on the other side<br />
of Amsterdam’s Nieuwendammer Canal and connected it<br />
to the existing site by a causeway. Here the company built a<br />
new sulfuric acid plant and an installation for making sulfurbased<br />
products. Railway sidings were built over the entire<br />
site. Goods wagons crossed the River IJ on the company’s<br />
own rail ferry. Ketjen constructed a plant jointly with the<br />
American Cabot Corporation in Europoort, near Rotterdam,<br />
to make special varieties of soot for the tire industry. A sulfuric<br />
acid plant was also built there. More new plants were<br />
erected in Amsterdam at the beginning of the 1960s. These<br />
included installations to make biphenyl and plasticizers for<br />
the plastics industry.<br />
From Ketjen to KZO<br />
In 1961, Koninklijke Zwavelzuurfabrieken van het Ketjen,<br />
as the company was now known, merged with Koninklijke<br />
Nederlandse Zoutindustrie (KNZ) to form Koninklijke<br />
Zout-Ketjen (KZK), which in turn merged with Koninklijke<br />
Zwanenberg-Organon to form a new conglomerate,<br />
Koninklijke Zout-Organon (KZO).<br />
Incorporation into the Chemicals division<br />
After the creation of Akzo in 1969, Ketjen formed part of<br />
Akzo’s Chemicals division. It numbered more than 1,100<br />
employees at the time. The golden age of the chemicals<br />
industry was drawing to a close, however, and Ketjen was<br />
losing money. In 1978 dozens of employees had to take<br />
early retirement; further staff cuts continued in the ensuing<br />
years. The remaining parts of the former Kejten operations<br />
were integrated into the Catalysts business unit of<br />
Akzo Nobel’s Chemicals division. A sulfuric acid specialties<br />
plant at the Nieuwendammer Canal site still provides<br />
a reminder of yesteryear, however. Just before the end of<br />
the 20th century a new owner for this plant appeared in<br />
the form of PVS Chemicals, a Belgian subsidiary of the<br />
American PVS Chemicals Inc., which makes and sells<br />
inorganic chemicals and processes chemical waste. The<br />
employees in the sulfuric acid plant in Amsterdam had<br />
extensive experience with the combustion of wastes containing<br />
sulfur because that is how they made sulfuric acid.<br />
Akzo Nobel and PVS Chemicals entered into an agreement<br />
and 20 to 30 employees transferred to the new owner.
Construction work on a new sulfuric acid plant in the 1950s<br />
65
66<br />
Early salt manufacture was a labor-intensive process
The Akzo legacy<br />
Salt is one of the most pivotal products in the evolution of <strong>AkzoNobel</strong>.<br />
The company’s involvement with this valuable commodity began in 1887,<br />
when Jacob Pieter Vis read in the newspaper that a recently dug well on<br />
the Twickel estate in Twente (in the east of the Netherlands) produced<br />
salt water rather than fresh water. This was the first time that salt had<br />
been found on Dutch soil. Vis was interested in the news because he<br />
was a salt boiler by trade, producing salt by boiling brine rather than<br />
extracting it from the earth.<br />
67<br />
Overview<br />
Wartime shortages – and a new industry<br />
Striking it rich<br />
Diversification into salt derivatives<br />
Merger with Ketjen<br />
Dishwashers and icy roads<br />
Merger with Zwanenberg-Organon
68<br />
Koninklijke Nederlandse Zoutindustrie:<br />
The Netherlands’ first large-scale salt manufacturer<br />
The Akzo legacy<br />
Wartime shortages – and a new industry<br />
Knowing that considerable underground reserves of<br />
salt existed in neighboring Germany, and surmising<br />
that some of these must extend under Dutch soil,<br />
too, Vis recruited some partners to join him in<br />
setting up a new salt manufacturing company. In 1911<br />
they applied for a concession to drill for saline water near<br />
Buurse, south of Enschede, in the east of the Netherlands.<br />
The bill concerning their application went before the<br />
Lower House of the Dutch parliament, which threw it out<br />
– only to discover during the ensuing World War I how short-<br />
sighted this decision had been. For the borders of the<br />
Netherlands were sealed during the war, leaving the<br />
country unable to import the salt so necessary for many<br />
industrial and domestic uses. In due course, the Dutch<br />
Lower House changed its mind, and in 1918 the state<br />
took a stake in Vis’ company, which soon became<br />
known as KNZ (Koninklijke Nederlandse Zoutindustrie).<br />
A salt production complex was built at Boekelo, just to<br />
the west of Enschede.<br />
The harvesting of a chemical<br />
Striking it rich<br />
To everyone’s consternation, however, no salt was found to<br />
begin with. The first discovery did not occur until March 17,<br />
1919, when salt was discovered in the ground near Usselo,<br />
on the outskirts of Enschede, at a depth of 325 meters.<br />
The first salt evaporator started operation on August 25 of<br />
the same year. The brine that came out of the ground was<br />
transported through a pipeline, 2,200 meters long, to the<br />
Boekelo plant.<br />
Diversification into salt derivatives<br />
The Phoenicians (2500–1000 B.C.) are thought to have been the first people to harvest<br />
and trade solid salt from the sea. They flooded coastal plains with seawater, left it to dry<br />
until the water had evaporated, and then collected the salt.<br />
In the 14th century, the city of Timbuktu in Mali, at the edge of the Sahara, was fabled<br />
for its great wealth, accumulated by the trade in salt, from the mines in the north of the<br />
country, as well as gold and slaves from the south. It is said that salt was worth its weight<br />
in gold, and that when on a pilgrimage to Cairo, the Emperor of Mali gave away so many<br />
gold gifts that the price of gold crashed. Timbuktu is still important as an entrepot for<br />
rock-salt from Taoudenni.<br />
Although about 50 quadrillion (50 x 10 15 ) tons of sodium chloride (common salt) are dissolved<br />
in the world’s oceans, less than a third of the world’s salt is produced from seawater.<br />
Most of it comes from rock salt mines deep beneath the earth’s surface. A huge rotorbladed<br />
machine tunnels into the salt deposit and then automatic electro-hydraulic drilling<br />
machines bore 14-meter deep holes into the tunnel ceiling. These holes are packed with<br />
In 1926 a new production process was introduced. The brine<br />
was no longer evaporated but vacuum dried instead.<br />
The production of soda was also initiated.<br />
In addition to producing cooking salt and de-icing salt, in<br />
1931 the manufacture of hydrochloric acid, sodium hypochlorite,<br />
liquid chlorine and sodium hydroxide was also started.<br />
Salt is the precursor for all these chemicals. Production<br />
in Boekelo ended in 1952, but prior to this, new salt and<br />
chemicals plants had been built near Hengelo, just north<br />
of Enschede, well situated alongside the Twents Canal,<br />
a major waterway in the region for the transport of goods.<br />
KNZ produced more than 200,000 tons of salt from 1939 to<br />
1940. This quantity doubled within ten years, and the company<br />
continued to expand.<br />
The construction of a modern chlorine electrolysis plant<br />
in Delfzijl (near Groningen) started in 1956 and the first<br />
calcined (water-free) soda was manufactured the following<br />
year. In 1959, salt production started here too. KNZ also participated<br />
in companies in Stade and Ibbenbüren (Germany).<br />
Merger with Ketjen<br />
Koninklijke Zout-Ketjen (KZK) was formed in 1961 when<br />
KNZ merged with the Dutch sulfuric acid manufacturer<br />
Ketjen. A major research center opened in Hengelo<br />
in the same year. Three years later, the production of<br />
pesticides started in the Botlek area of Rotterdam,<br />
and construction of a salt plant started at Mariager in<br />
northeast Denmark.<br />
explosives which are then detonated, and the fragmented rock salt is carried by conveyor<br />
belt up to the surface. Germany is one of the largest sources of mined salt in the world, and<br />
one mine, at Borth in North Rhine-Westphalia, is estimated to have salt deposits exceeding<br />
200,000 million tons.<br />
Yet another method of extracting salt is to pump hot water into underground deposits,<br />
causing the salt to dissolve, and then to pump the resulting brine to the surface. This<br />
process has the advantage of enabling impurities to be left underground. When the water is<br />
evaporated from the brine in large vacuum plants, the resulting salt is 99.9 percent pure.<br />
Two further key industrial products are derived from sodium chloride (salt) – chlorine and<br />
caustic soda. Chlorine is a basic manufacturing chemical and is used in over 50 percent<br />
of all industrial chemical processes and in over 90 percent of pharmaceutical and crop<br />
protection products. Caustic soda is used directly in the manufacture of pulp and paper,<br />
aluminium, petroleum and natural gas refining and processing.
The spa at Bad Boekelo<br />
69
70<br />
Koninklijke Nederlandse Zoutindustrie:<br />
The Netherlands’ first large-scale salt manufacturer<br />
The Akzo legacy<br />
Dishwashers and icy roads<br />
Compacted salt pellets for softening water were launched on<br />
the market in 1967 under the name Broxo ® , in response to,<br />
among other things, the growing number of dishwashers in<br />
people’s homes. The company also helped people to keep<br />
their feet on the ground thanks to Gladweg ® , a de-icing salt<br />
for sidewalks and roads. At this time KZK was selling more<br />
than two million tons of salt a year, making it the largest salt<br />
producer in the world.<br />
Merger with Koninklijke Zwanenberg-Organon<br />
Koninklijke Zout-Ketjen (KZK) and Koninklijke Zwanenberg-<br />
Organon merged to create Koninklijke Zout-Organon NV<br />
(KZO) in 1967. During the formation of Akzo in 1969, the position<br />
of the salt business was significantly enhanced at the<br />
last moment by the takeover of International Salt Company<br />
in Clarks Summit (United States).<br />
“He’s worth his salt”<br />
Salt was being used to preserve meat and fish by 2000 B.C., enabling products to be traded<br />
over greater distances. Salt was hard to obtain and became a valuable commodity, and<br />
the trade was later taxed and controlled by the state. In 6th century B.C. the building of the<br />
temple of Artemis in Ephesus was partly funded by a salt tax, and by the 3rd century B.C.<br />
salt taxes were common in Egypt, Rome and China. Up until the 1900s, when new sources<br />
of salt were found, the tax on salt was often raised to pay for wars. The Romans paid part<br />
of their soldiers’ wages in salt, and the Latin word salarium is the root of the word “salary.”<br />
So to be “worth your salt” means you are a good employee.<br />
Salt is a bulk product. The profit margin is small, so every<br />
extra cent per ton profit counts significantly towards the<br />
overall result. It has therefore been necessary to work ever<br />
more efficiently and with increasingly greater cost awareness<br />
over the decades. Various reorganizations over the<br />
years have resulted in redundancies in Hengelo, Delfzijl<br />
and Botlek (Rotterdam) and, in the mid-1990s, the disposal<br />
of the American International Salt Company. Similar<br />
pressures led Akzo to rationalize its R&D activities, as a<br />
result of which many people in the Hengelo research center<br />
were transferred to Arnhem.<br />
The Salt division nevertheless continued to develop under<br />
the Akzo umbrella because the new organization designated<br />
salt and its derivatives as core business. The Chemicals and<br />
Salt divisions were eventually merged in 1992. <strong>AkzoNobel</strong><br />
remains one of the biggest salt producers in the world.<br />
A debt to Alfred Nobel<br />
Storing salt is a major problem. Salt attracts water, and the salt grains cake together to form<br />
very hard lumps. Rock-hard salt piles several meters high regularly formed in the storage<br />
facilities in Hengelo in days gone by. The problem was how to break up the salt so that<br />
it could be used. The solution employed was an invention of Alfred Nobel’s – dynamite.<br />
Holes were drilled in the salt pile, and dynamite charges were inserted and detonated.<br />
Two people with explosives permits were specifically employed for this task. Later on, an<br />
anti-caking agent was invented. This was added to the salt to ensure that it remained loose.
silicones<br />
poly-<br />
urethanes<br />
ptfe<br />
terra methyl-<br />
lead<br />
methyl-<br />
cellulose<br />
industrial<br />
processes<br />
pvdf<br />
hcfc<br />
monochloro-<br />
methane<br />
water<br />
treatment<br />
The chlorine tree. Chlorine is derived from<br />
salt and has diverse applications. Although<br />
made with the help of chlorine, about onethird<br />
of finished products from this source are<br />
chlorine-free<br />
pvdc<br />
pvc<br />
ethylcellulose<br />
diiso-<br />
cyanates<br />
poly-<br />
carbonates<br />
dichloro-<br />
methane<br />
trichloro-<br />
methane<br />
industrial<br />
processes<br />
vinyl<br />
chloride<br />
tetra ethyl<br />
lead<br />
hfc<br />
perchloro-<br />
ethylene<br />
monochloro-<br />
ethane<br />
phosgene<br />
tetrachloromethane<br />
hcl<br />
1,2-dichloro-<br />
ethane (Edc)<br />
elemental<br />
chlorine<br />
c2-derivatives<br />
c1-derivatives<br />
foods cosmetics<br />
hdcf<br />
1,1,1-trichloroethanetrichloroethylene<br />
monochloro-<br />
acetic acid<br />
c3-derivatives<br />
Salt<br />
carboxymethyl<br />
cellulose<br />
trichloro-<br />
acetic acid<br />
flocculants<br />
allylchloride<br />
c4-derivatives<br />
pharmaceuticals<br />
epichlorohydrin<br />
aromatic<br />
derivatives<br />
inorganic<br />
derivatives<br />
dichloro-<br />
butene<br />
aluminium<br />
chloride<br />
epoxy resins<br />
glycerols<br />
glycol<br />
ethers<br />
propylene<br />
glycol<br />
propylene<br />
oxyde<br />
chloroprene<br />
chloro-<br />
paraffins<br />
dyestuffs<br />
silicon tetrachloride<br />
iron chloride<br />
end use<br />
intermediates<br />
poly-<br />
urethanes<br />
polyols<br />
polychloroPrene<br />
linear slkyl benzene<br />
health & crop<br />
protection<br />
aramide fibres<br />
s-resins<br />
sulfur<br />
chlorides<br />
titanium<br />
tetrachloride<br />
phosphorus<br />
chlorides<br />
silicon<br />
dioxide<br />
silicon<br />
health & crop<br />
protection<br />
sodium hyperchloride<br />
end use – no chlorine in product<br />
intermediates – no chlorine in product<br />
crop protection<br />
titanium<br />
dioxide
72<br />
The Sternfeld brothers won a prize in 1906<br />
for the excellence of their bread, which<br />
was baked with Noury & Van der Lande’s<br />
new “Excellent” brand of flour
The Akzo legacy<br />
Noury & Van der Lande, later to become pioneers in peroxides and<br />
part of <strong>AkzoNobel</strong>’s Polymer Chemicals business, began its life in the<br />
milling business. In 1838, Jan Nourij and Gerrit van der Lande purchased<br />
two mills on the Koerhuisbeek, on the outskirts of Deventer.<br />
Their plan was to mill rapeseed and grain in order to produce linseed<br />
oil and cattle feed. Their efforts prospered and they expanded considerably,<br />
not least because of their use of ultra-modern steam-driven<br />
rolling mills – a significant innovation at the time. By the end of the<br />
19th century, Noury & Van der Lande also had an oil mill in Kleve,<br />
Germany, and the market for flour had grown enormously. Each day,<br />
no less than 67 tons of grain was being milled.<br />
73<br />
Overview<br />
A surprise discovery<br />
The power of peroxide<br />
Paint pigments – and cake ingredients<br />
From citric acid to pharmaceuticals<br />
Post-War diversification<br />
Merger with KZO<br />
Safety first
74<br />
Noury & Van der Lande:<br />
Pioneers of peroxide<br />
The Akzo legacy<br />
From the food to the paint industry<br />
The company of Noury & Van der Lande, as the enterprise<br />
came to be called, started experimenting with the oil they produced,<br />
upgrading it by blowing air through it. The oil could<br />
then be used as a raw material for making lacquers. In 1907,<br />
the factory in Kleve closed, and a new oil factory was built<br />
on the Rhine in Emmerich. After a few years, this factory also<br />
began to produce bleached linseed oil and oil to mix with<br />
white lead pigment for the paint and lacquer industry.<br />
During World War I, the Dutch government regulated food<br />
supplies and distributed stocks of flour to the population. It<br />
was a slack time for the firm, but they took the opportunity<br />
to perfect their milling techniques, start up their own experimental<br />
bakery, and set up a small laboratory.<br />
A surprise discovery<br />
The link between baking and chemical manufacture, which<br />
was to prove pivotal in the company’s development, in fact<br />
had its origins in an event which had occurred a little earlier,<br />
during the 1900s. Jan van der Lande (Gerrit’s grandson,<br />
who had assumed control of the company in 1888) had a<br />
visit from a baker from a neighboring village, who begged<br />
him for some more supplies of sour (i.e. fermented) flour.<br />
Johannes Christian Lebuïnus van der Lande – to give him his<br />
full name – was shocked. “Look,” he retorted, “if we supplied<br />
you with sour flour, you should have sent it back!”<br />
“That’s what my wife said,” replied the baker, taken aback.<br />
“But I gradually used up the sour flour, mixing it with the rest<br />
The mother of invention<br />
of the flour. And guess what? Since I’ve been adding a bit of<br />
sour flour to the dough, I’ve been getting such good bread<br />
that my customers keep coming back for more.”<br />
The power of peroxide<br />
The canny customer didn’t receive his wished-for delivery<br />
of sour flour, but it started Jan van der Lande thinking. It<br />
appeared that aged, oxidized flour produced better results<br />
when used for baking. Under the guidance of the British<br />
chemist E.J. Sutherland, the company’s new laboratory<br />
experimented with benzoyl peroxide to imitate the process<br />
of oxidation. Sutherland and his researchers found that<br />
flour treated with peroxide produced bread which was both<br />
whiter and tastier than bread made by traditional methods.<br />
Named Novadelox ® (derived from “Noury & Van der Lande<br />
Oxgenium”) and patented worldwide during the 1920s, the<br />
new bleaching agent marked the beginning of the manufacture<br />
and application of organic peroxides. Subsidiary companies<br />
across the globe began to sell the flour improver.<br />
New types were discovered, and new factories were built in<br />
Coswig (Germany) and Gillingham (England). In Roermond,<br />
the only hydro-electric power station in the Netherlands<br />
was taken over to make per-compounds using an electrochemical<br />
process.<br />
Paint pigments – and cake ingredients<br />
After World War II ended, there was a shortage of everything. The only fuel available for firing<br />
the lacquer boiler in Deventer was peat. When an analyst finally managed to lay his hands<br />
on a decent thermometer, he could at last measure the temperature of the lacquer mixture.<br />
“It’s too low,” he chided the operator. “The lacquer should be at 120 degrees and it’s only at<br />
100 degrees.” The operator was very indignant. “Can’t be,” he replied. “There are 60 blocks<br />
of peat burning under it, and each block is exactly two degrees.”<br />
In 1930, Noury & Van der Lande closed the headquarters it<br />
had been occupying in Deventer since 1878 and moved to<br />
a modern new building in the same city. The following year<br />
the company built one of the largest oil mills in Compiègne,<br />
France. In Emmerich, meanwhile, the manufacture of paint<br />
pigments such as white lead and titanium dioxide commenced.<br />
Paint hardeners were added later. In 1937, the firm<br />
began to grow fungi for making citric acid from sugar solution<br />
for the cake and confectionery industry. The citric acid<br />
factory remained in operation until 1976.<br />
From citric acid to pharmaceuticals<br />
Noury & Van der Lande’s experience with biological processes<br />
in their citric acid factory led to a new field of activity:<br />
pharmaceuticals. Wishing to expand this activity, the company<br />
initially tried to take over Organon in Oss. When their<br />
bid was unsuccessful, however, they set up their own pharmaceutical<br />
subsidiary, called Nourypharma, in Deventer.<br />
The company manufactured Nourical and Tonicum Noury ® ,<br />
growth-promoting and strengthening products for children;<br />
they were later also to manufacture vitamin B. Scabicidol<br />
– a treatment for scabies in humans – proved a successful<br />
product for the company during World War II.<br />
Post-War diversification<br />
On August 25, 1940, several Allied bombs were dropped<br />
on the flour factory in Deventer, but fortunately caused only<br />
minor damage. By the end of the war, the business was at a<br />
virtual standstill due to fuel and raw material shortages. New<br />
products were introduced into the company’s portfolio after
A horse-powered mill from the early 19th century.<br />
Noury & Van der Lande’s first mills used horse power too<br />
75
76<br />
Noury & Van der Lande:<br />
Pioneers of peroxide<br />
The Akzo legacy<br />
the liberation, however. These included weed killers, products<br />
for preserving potatoes, and insecticides. Large quantities<br />
of the latter were sent to Africa for locust control.<br />
Peroxides now took on increasing significance because the<br />
emerging plastics industry used them for the production of<br />
synthetic materials. In 1962, the company built its own peroxide<br />
plant in Italy. Noury & Van der Lande also helped with<br />
the construction of plastics factories in Kazan (Russia).<br />
Merger with KZO<br />
In 1965, the company merged with Koninklijke Zwanenberg-<br />
Organon (KZO). Nourypharma was absorbed into Organon<br />
and moved to Apeldoorn and Oss. The flour factory closed in<br />
the same year, bringing more than 125 years of tradition<br />
to an end.<br />
When Akzo was created in 1969, Noury & Van der Lande<br />
had 14 factories in Europe and was producing approximately<br />
900 different products. The company became part of Akzo’s<br />
Chemicals division; the sales and R&D organizations had<br />
to conform completely to the Akzo model. The operation’s<br />
product portfolio was gradually reduced.<br />
Safety first<br />
In 1974, a serious explosion occurred at the Deventer peroxide<br />
plant, costing one unfortunate employee his life. This accident<br />
resulted in more attention being paid to safety. Among other<br />
actions taken, a safety laboratory was set up which would<br />
later work for the whole of Akzo (and ultimately <strong>AkzoNobel</strong>).<br />
R&D activities expanded significantly in the 1980s; ten<br />
years later, the research center in Deventer became part of<br />
Akzo Nobel Central Research.<br />
Peroxide<br />
A peroxide is a class of chemical compound in which two oxygen atoms are linked together<br />
by a single covalent bond (OO). There are both organic and inorganic peroxides, which can<br />
be used as bleaching and oxidizing agents, as initiators of polymerization reactions, and in<br />
the preparation of other oxygen compounds.<br />
Organic peroxides include peroxyacetic acid, which is used as an antimicrobial agent in<br />
food and wine production, and dibenzoyl peroxide, which catalyses free radical reactions<br />
in the production of polymers, is an active substance in creams for treating acne, and can<br />
be used for bleaching flour, oils and fats. The oxidation of unsaturated fatty acids produces<br />
peroxides. Organic peroxides tend to decompose easily to free radicals of the RO type, and<br />
methyl ethyl ketone peroxide (MEKP) is used in this way as a catalyst in making glass-reinforced<br />
plastics. This also means that organic peroxides can accidentally start explosive<br />
polymerization in materials with unsaturated chemical bonds. The radical HOO is known as<br />
hydroperoxide radical, and is thought to be involved in combustion of hydrocarbons in air.<br />
Peroxides and hydroperoxides are highly reactive materials and may be extremely shocksensitive<br />
explosives.<br />
Inorganic peroxides include hydrogen peroxide (HOOH or H 2 O 2 ), sodium peroxide, and<br />
persulfates. The simplest stable peroxide is hydrogen peroxide, which tends to decompose<br />
into water and oxygen. Hydrogen peroxide is a mild bleach sold at either 3 percent or 6 percent<br />
concentration, and is commonly used as a disinfectant or to clean wounds. It is used<br />
cosmetically to bleach hair, and the 6 percent concentration can bleach skin. Hydrogen peroxide<br />
is also used industrially to bleach cotton and other fibers, and in the pulp and paper<br />
industry. Concentrated hydrogen peroxide requires great care in handling and storing, and<br />
can cause combustion if it comes into contact with paper or wood.
When the grain silos were filled to capacity,<br />
excess grain would be stored in sacks
78<br />
Kortman & Schulte’s operation in Delfshaven in 1900
The Akzo legacy<br />
Not so very long ago, Kortman & Schulte was a household name in<br />
the Netherlands, just like Peek & Cloppenburg ® (clothing) or Jansen &<br />
Tilanus ® (underwear). It all started towards the end of the 19th century,<br />
when Constant Kortman, the son of a Rotterdam merchant, met<br />
the German chemist Herman Schulte. They became business partners<br />
and in 1886 established a small chemicals and soda works on<br />
Zwaanshals in Rotterdam.<br />
79<br />
Overview<br />
Iodine extraction<br />
From soda to soap powder<br />
Liquid soap<br />
Soap powder for washing machines<br />
Enzyme-based detergents<br />
Fit for the stage
80<br />
Kortman & Schulte:<br />
The first manufacturers of soda in the Netherlands<br />
The Akzo legacy<br />
Salt had not yet been discovered in the<br />
Netherlands and the country therefore had<br />
no indigenous soda manufacturing. Kortman<br />
& Schulte imported sodium carbonate, dissolved<br />
it, and let the solution crystallize.<br />
Laborers used pickaxes to break up the<br />
unrefined soda.<br />
In 1888 the two men rented Groot Holland,<br />
a historical building in the Achterhaven in<br />
Delfshaven, on the edge of Rotterdam. It had<br />
been built in 1672 by the Dutch East India<br />
Company as a warehouse for maritime supplies.<br />
In this building, where formerly ships<br />
had been fitted out for their long voyage to<br />
the Orient, Kortman & Schulte produced<br />
various types of soda as well as a meat preservative<br />
derived from sulfurous acid.<br />
Iodine extraction<br />
At the end of the 19th century, Schulte discovered<br />
that the water used as ballast by<br />
wooden ships bringing Chilean saltpeter<br />
from South America to Rotterdam contained<br />
iodine. The iodine leached out of the<br />
saltpeter during the long voyage. The firm<br />
chartered a barge and offered the captains<br />
of these vessels the removal of their ballastwater<br />
as a free service. A laborious industrial<br />
process was then used to extract nitric acid<br />
and iodine from the water. The iodine was<br />
worth a lot of money, however. This lucrative<br />
activity was to end with the passing of<br />
the age of sail: steamships were much faster<br />
than sailing ships, and so no iodine-rich<br />
leachate formed in their hulls during long<br />
sea voyages.<br />
From soda to soap powder<br />
Around this time, the manufacturing of soap<br />
powder started, under brand names such as<br />
Kroon voor de Was and Driehoek ® . (It has,<br />
in fact, been suggested that Akzo based<br />
its first logo on this Driehoek ® , the Dutch<br />
word for triangle). In 1898, soft, highly viscous<br />
soaps were launched for household<br />
use, while the cosmetic Zilverzeep (silver<br />
soap) was introduced. Whereas the firm had<br />
originally derived its products from naturally<br />
occurring raw materials such as linseed<br />
oil, resin, tallow and bleached palm oil, it<br />
began using its facilities to split oils into fatty<br />
acids and glycerol. Access to these compounds<br />
opened up a much bigger range of<br />
potential applications.<br />
Liquid soap<br />
Soda – an innovative product<br />
One of the products resulting from this<br />
process was liquid soap, which was supplied<br />
to shopkeepers in small drums. The retailer<br />
used to apportion the amount a housewife<br />
wanted onto a sheet of gray paper using a<br />
large wooden spoon. Liquid soap was packaged<br />
in cardboard pots from around 1930.<br />
Sales remained at a modest level, but after<br />
World War II – when luxury soap products<br />
At the end of the 19th century, soda was practically unknown to Dutch housewives.<br />
The product was not manufactured in the Netherlands. After Kortman & Schulte started<br />
marketing it as a cleaning product, it was occasionally mistaken for sugar or salt. In 1892,<br />
the firm’s representative in Zwolle wrote dryly to the company as follows: “While ducks<br />
were being roasted for serving at a party, someone added soda instead of salt, which<br />
caused something of a commotion.”<br />
were not yet available – Kortman & Schulte’s<br />
liquid Driehoek ® soap had a 20 percent<br />
share of the Dutch market. The firm also<br />
succeeded in purifying and decoloring glycerol,<br />
which it supplied to factories making<br />
tobacco products, cellophane and textiles.<br />
Soap powder for washing machines<br />
The first washing machines arrived in<br />
Dutch homes in around 1950 and a special<br />
semi-hard soap, Drietex, was produced for<br />
them. The firm advertised jointly with textile<br />
manufacturer AKU – another forerunner<br />
of <strong>AkzoNobel</strong> – that Drietex was the best<br />
product for washing AKU’s nylon.<br />
Enzyme-based detergents<br />
The first synthetic washing powders appeared<br />
in the 1960s. Kortman & Schulte’s<br />
management established contacts with a<br />
Swiss firm which was making a detergent<br />
based on enzymes. The Dutch company<br />
entered into an exclusive agreement and in<br />
1963 started manufacturing the detergent<br />
itself. Rarely has a product been greeted<br />
with such enthusiasm. Dutch housewives<br />
took a real liking to Biotex ® . “Stains disappear<br />
like snow on a summer’s day”<br />
claimed an advertisement of the period.<br />
The company enjoyed its heyday. Additional<br />
premises were acquired in Overschie, on the<br />
edge of Rotterdam, solely for the manufac-<br />
ture of Biotex ® . But Kortman & Schulte had<br />
also become an attractive takeover target.<br />
Koninklijke Zwanenberg-Organon acquired<br />
the firm in 1965. Later, in 1969, through the<br />
merger of Koninklijke Zout-Organon with<br />
AKU, it became part of Akzo and was subsequently<br />
divided up. Biotex ® and a number of<br />
other soap brands were brought under detergent<br />
manufacturer Dobbelman in Nijmegen,<br />
bleach producer Loda in Breda and detergent<br />
manufacturer Blumøller in Denmark. These<br />
units were integrated into Akzo’s Consumer<br />
Products division.<br />
Fit for the stage<br />
The fatty acid production operation became<br />
part of Akzo’s Chemicals division. The only<br />
operations that remained in the original<br />
Delfshaven plant were fatty acid fractionation<br />
and the manufacture of glycerol from<br />
fats and palm oil. When the Chemicals<br />
division starting making palm oil itself in<br />
Malaysia, it was the end of the road for the<br />
plant in Delfshaven. The operation shut<br />
down for good in the mid-1990s. In 1999,<br />
Kortman & Schulte’s history inspired the<br />
Hollandia Theater Group to stage the play<br />
Biotex. The drama tells the story of a factory<br />
worker and it was staged on the site of<br />
the former plant next to the historic building<br />
in the Achterhaven. The former Dutch East<br />
India Company warehouse is all that now<br />
remains from this era.
A still from a television commercial from the 1980s for the popular<br />
washing powder Biotex ®<br />
81
82<br />
Jacobus Cornelis Boldoot, a pharmacist with<br />
an entrepreneurial flair
The Akzo legacy<br />
In 1789, Jacobus Cornelis Boldoot inherited a house from his father<br />
in Amsterdam’s Nieuwezijds Voorburgwal. He started living on the top<br />
floor of the property and opened a pharmacy on the ground floor. There<br />
he made all manner of powders, salves and preparations, including an<br />
alcohol-based medicine: Cologne water or Eau de Cologne. Created<br />
in Cologne by Giovanni Maria Farina and first sold in that city in 1709,<br />
Eau de Cologne was supposed to be effective against migraine and<br />
other ailments.<br />
83<br />
Overview<br />
A name on everyone’s lips<br />
A monument to the past<br />
Heavy losses during World War II<br />
Post-war recovery and expansion
84<br />
From its earliest days, Boldoot understood the value of brand<br />
recognition. A Boldoot delivery van in the 1930s
Boldoot’s impressive shop in Amsterdam’s Kalverstraat<br />
85
86<br />
Boldoot:<br />
The creation of a household name<br />
The Akzo legacy<br />
By the 19th century, this preparation was no<br />
longer used as a medicine. It had turned out<br />
not to be very therapeutic. Boldoot’s successors<br />
therefore sold Eau de Cologne as<br />
a toiletry. The scent also started being used<br />
in soap in 1876. Over the course of time, the<br />
company expanded its product range to<br />
include toothpastes, cosmetic products and<br />
wax polish.<br />
A name on everyone’s lips<br />
In 1900, Boldoot had 16 properties in<br />
Amsterdam in use as manufacturing facilities,<br />
collected together on Singel and<br />
in Langestraat. The showroom was in<br />
Nieuwendijk, where genteel ladies would<br />
be driven to the door in their coaches<br />
and the shop assistants would run in and<br />
out to demonstrate their wares. In 1902,<br />
the company built its own soap factory<br />
in Haarlemmerweg. Boldoot had by then<br />
become so much a part of the Dutch language<br />
that the word was used for anything<br />
that had to do with smells. In those days,<br />
there were still very few sewers. The people<br />
relieved themselves in barrels that were<br />
collected from the houses once a week by<br />
wagons from the city sanitation department.<br />
Because of the smell emanating from these<br />
vehicles, the population of Amsterdam ironically<br />
referred to them as “Boldoot carts.”<br />
Boldoot ® became so popular that imitations<br />
started appearing which put the original<br />
product in a bad light. After all, anyone can<br />
make a lotion and call it Eau de Cologne. For<br />
example, there was a company which distributed<br />
its products with a label that was<br />
almost identical to that of Boldoot ® . Even<br />
smarter was the Rotterdam market trader<br />
who collected empty Boldoot ® bottles and<br />
refilled them with his own brew.<br />
A monument to the past<br />
During World War I, many Boldoot ® products<br />
could no longer be supplied because of the<br />
shortage of raw materials. Other products<br />
appeared in wartime packaging because of<br />
the paper shortage. Things improved after<br />
the war, however. Branches were opened at<br />
home and abroad. In 1919, Boldoot opened<br />
a shop in Kalverstraat. It was a splendid<br />
shop with a unique façade. That façade is<br />
still intact today and is now a protected monument.<br />
A Boldoot museum was also opened<br />
An early adopter of new technologies<br />
Boldoot was one of the very first companies to have a telephone. In 1881, five years after<br />
Alexander Graham Bell invented the telephone, Boldoot was allocated the telephone<br />
number 106 by the Nederlandse Bell Telefoonmaatschappij. Boldoot was also one of<br />
the first companies to use motors for industrial production. In 1882, the firm acquired<br />
a two-horsepower gas engine “for the setting in motion of vessels for the preparation<br />
of French polish.”<br />
to show the history of the company, the history<br />
of cosmetics and the development of<br />
the products.<br />
Heavy losses during World War II<br />
Boldoot suffered badly during the economic<br />
depression between the two world wars. The<br />
branches in France and the United Kingdom<br />
were closed and the Brussels branch, which<br />
had been stricken by fire, had to make drastic<br />
cutbacks. In the Netherlands, the branches<br />
in The Hague and Nijmegen were closed.<br />
The Amsterdam premises were taken out<br />
of operation except for Haarlemmerweg,<br />
where both offices and manufacturing were<br />
then concentrated.<br />
The company suffered heavy losses during<br />
World War II. On May 14, 1940, during the last<br />
German bombing raid on Rotterdam, the<br />
Boldoot shop in the Passage was hit. They<br />
were unable to retrieve the company safe<br />
from the rubble to force it open until August,<br />
three months later. Fortunately, the current<br />
account, the bills of exchange and the cash<br />
box were found intact.<br />
The company used up all its stocks and had<br />
to cease production. Begging letters were<br />
received pleading: “Please, just one more<br />
bottle of Eau de Cologne for someone who is<br />
seriously ill.” Sometimes, a doctor’s prescription<br />
was enclosed as proof. During the last<br />
two years of the war, the management even<br />
made a prescription compulsory before a<br />
flacon was dispatched.<br />
Another notable wartime development<br />
took place in 1943, when Allied bombers<br />
flattened the Fokker aircraft factory in the<br />
north of Amsterdam. The Germans promptly<br />
moved Fokker to the Boldoot complex in<br />
Haarlemmerweg, where the German army<br />
had been stabling its horses in the garage.<br />
Post-war recovery and expansion<br />
After the war, Boldoot slowly regained its<br />
position in the market. New products such<br />
as lipsticks, aftershaves and deodorants<br />
were introduced, as well as a new series<br />
of perfumes called Fleurs de Hollande.<br />
The familiar Eau de Cologne was, by<br />
that stage, available both as a liquid, in<br />
sticks and in paper handkerchiefs. All that<br />
time, the company had remained a good<br />
Catholic business. Important celebrations<br />
– for example, a company anniversary –
Athough Eau de Cologne was the company’s main product for many years, over time Boldoot’s<br />
product range expanded to include toothpastes, lipsticks and a variety of other toiletries such as<br />
its Fleur de Hollande perfumes (images courtesy of the Dutch Perfume Bottle Museum)<br />
87
88<br />
Boldoot:<br />
The creation of a household name<br />
The Akzo legacy<br />
always started with a solemn High Mass.<br />
The management would appear in morning<br />
coats and lead the prayers.<br />
In 1961, there was a fire in the Haarlem-<br />
merweg factory; it caused little significant<br />
damage, however. In the same year,<br />
Koninklijke Zwanenberg-Organon took over<br />
the company and later incorporated it into<br />
the Consumer Products division of KZO<br />
(Koninklijke Zout-Organon). When KZO<br />
merged with AKU to create Akzo, this<br />
became part of the division of the same<br />
name – a pleasant and appetizing organization<br />
with products ranging from peanuts<br />
to toiletries and from soap powder to<br />
industrial cleaners.<br />
The range included products very familiar<br />
to Dutch consumers, such as Biotex ® for<br />
prewash, Dobbelman ® soap powder and<br />
Driehoek ® detergent sachets. Other examples<br />
included Roosvicee ® rosehip cordial,<br />
Vapona ® fly killer, California ® -label soups<br />
and home remedies such as Entosorbine ®<br />
and Sinaspril ® . It was a fascinating series of<br />
products, but hardly suitable for the international<br />
chemical/pharmaceutical image that<br />
Akzo wanted to project. Matters were further<br />
complicated by the fact that Shell also held<br />
shares in Akzo’s Consumer Products division,<br />
meaning that Akzo had to share control<br />
of the operation. The whole of this division<br />
was therefore transferred to Douwe Egberts/<br />
An Italian spring morning after rain<br />
Eau de Cologne is a light perfume which contains between 2–5 percent essential oils<br />
(usually a mixture of oils of lemon, orange, tangerine, bergamot, lime, grapefruit and neroli)<br />
in a base of dilute ethanol (between 70–90 percent) and water. It can also contain oils of<br />
lavender, rosemary, thyme, petitgrain (orange leaf), and jasmine.<br />
The original “Eau de Cologne” (Kölnisch Wasser in German) is thought to have been a<br />
drink called “Aqua Mirabilis”, a concoction of alcohol and mountain herbs sold by Gian Paolo<br />
Feminis, an Italian from Santa Maria Maggiore, Valle Vigezzo, to cure all sorts of ailments. He<br />
travelled across the Alps and settled in Cologne, where his business took off. Needing help,<br />
he sent for a nephew, Giovanni Maria Farina (1685–1766), who later took over the business<br />
and also altered and improved the recipe. Farina is said to have tried to recreate the odor of<br />
an Italian spring morning after rain. Patented reputedly by the faculty of medicine in Cologne<br />
in 1727, Eau de Cologne was used both as a fragrance and medicinally – as well as to treat<br />
wounds, later becoming popular with Napoleon.<br />
The original workshop was set up in 1709 at Obenmarspforten and both the shop and the<br />
Eau de Cologne became known as “Farina – gegenüber Jülichs Platz” (opposite Jülichs<br />
Platz) to indicate where to find the shop, and to distinguish the product from its many imitators.<br />
Another well-known Eau de Cologne is “4711”, named after the shop at No. 4711,<br />
Glockengasse in Cologne. In 1806, a great-grandnephew of Giovanni Maria Farina, Jean<br />
Marie Joseph Farina, opened the Paris perfumery which is now Roger & Gallet, producing<br />
the Eau de Cologne known as “Extra-Vieille”.<br />
Eau de Cologne is now used as a generic term, and is interchangeable with “Eau de Toilette”,<br />
which contains between 1–6 percent of essential perfume oils.<br />
Sara Lee in 1987. Boldoot was taken over<br />
by British American Cosmetics and its products<br />
became part of the Yardley cosmetics<br />
series. After that, there was a different owner<br />
almost every other year, including Coty, one<br />
of the world’s largest fragrance companies.<br />
Recently, the brand has once again passed<br />
into new hands.<br />
Over the years, Eau de Cologne had to<br />
fight increasingly hard against more refined<br />
French and American perfumes. In the<br />
1980s, Eau de Cologne was extolled as<br />
a refreshing lotion for people who were<br />
unable to take a shower or bath – for<br />
example, women in the last stages of pregnancy.<br />
It was also supposed to be good for<br />
menopausal women. Sniffing it immediately<br />
produced a feeling of well-being. Boldoot ®<br />
was then disparagingly dismissed by young<br />
people as an old ladies’ scent.<br />
It is, however, still on the market. Both<br />
Boldoot ® and “Odeklonje”, as the Dutch<br />
call the perfume, have become immortal.<br />
Everyone in the Netherlands has heard<br />
of them and, as such, they are part of<br />
Dutch culture.
Boldoot personal care products (top left), like many other well-known<br />
Dutch consumer products shown here, eventually became part of<br />
Akzo’s Consumer Products division. An important operation in its<br />
time, this division was divested to Douwe Eberts/Sara Lee in 1987
90<br />
Johan van Hasselt, who died in 1949 when an<br />
experiment that he was conducting blew up
The Akzo legacy<br />
Some time around 1860, Willem van Hasselt was working for a vinegarmaker<br />
in the Dutch city of Rotterdam when, during a visit to a farm, he<br />
happened to notice a bottle of Danish butter-coloring agent on the mantelpiece.<br />
The farmer explained that the Danes manufactured butter- and<br />
cheese-coloring agents as well as rennet. Van Hasselt realized that<br />
there was considerable business potential for these products in the<br />
Netherlands. Some time later (no records are available to help identify<br />
the precise date), operating under his own name, he started producing<br />
liquid rennet, powdered rennet, and butter- and cheese-coloring agents<br />
in a steam-powered installation on Almondestraat in Rotterdam.<br />
91<br />
Overview<br />
Relocation<br />
Products in demand<br />
Acquisition by Chefaro<br />
Obstacles to growth<br />
The end of the line
92<br />
Van Hasselt:<br />
A lesson in home-grown innovation<br />
The Akzo legacy<br />
Rennet was obtained by extracting it from the mucosa of the<br />
fourth stomach of calves. The product was used by farmers<br />
for making cheese, as well as by the wider dairy industry.<br />
Coloring agents for dairy products were made using pigment<br />
from annatto seeds. Before long, Van Hasselt’s products<br />
were being exported all over the world and the company<br />
was awarded a first prize and an honorable mention<br />
at major agricultural exhibitions held in London in 1884 and<br />
1886, respectively.<br />
Relocation<br />
The products were sold in the Netherlands by the company’s<br />
own sales force and in foreign countries through its<br />
agents. Van Hasselt soon outgrew its premises, and the<br />
manufacturing facilities were moved to Schoterboschstraat,<br />
although the laboratory and administrative office remained<br />
at Almondestraat. This was certainly not an ideal situation,<br />
but no further possibilities for expansion presented themselves<br />
at the time. After World War I, the search for another<br />
location for the firm began. Johan van Hasselt, the founder’s<br />
son, bought a site on Drentsestraat in Amersfoort,<br />
some distance to the east of Utrecht. The area was largely<br />
undeveloped, so there was scope for expansion in the<br />
future. It was here that the firm established its new base.<br />
Products in demand<br />
Major expansion did not occur until 1945. There was a<br />
tremendous shortage of raw materials following World<br />
War II, and all chemicals were in high demand in the<br />
Netherlands. Van Hasselt developed one product after<br />
Innovation targets: aiming high<br />
another, including an udder cream, an algae preparation<br />
used as a binder in foodstuffs, insecticides (under the brand<br />
name Flyol), and organic peroxides for improving flour<br />
(under the brand name Cefarox). This made the firm the<br />
biggest competitor of Deventer-based Noury & Van der<br />
Lande – which later would also become part of KZO and<br />
subsequently Akzo.<br />
Manufacture of a carbamate – from an amine and carbon<br />
disulfide – was also begun after World War II. Further treatment<br />
of the carbamate with salts or by oxidization rendered<br />
a significant number of products ranging from agricultural<br />
fungicides to additives for rubber manufacturing.<br />
Acquisition by Chefaro<br />
In 1949, managing director Van Hasselt fell victim to his love<br />
of experimentation: an explosion during one of his tests<br />
killed him. Van Hasselt’s penchant for expensive hobbies<br />
meant that there was little money left in the business after<br />
his death and the firm was taken over by the pharmaceutical<br />
company Chefaro (Chemische Fabriek Rotterdam) in<br />
the following year.<br />
Obstacles to growth<br />
Managing director Johan van Hasselt was an enthusiastic researcher. Something<br />
was always boiling or evaporating in his laboratory. Once, when he was conducting an<br />
experiment, he returned to the laboratory after a short absence but he could not find<br />
the substance on which he had been working. Irritated, he asked the lab assistant:<br />
“Where’s the mixture that was on that glass plate?” The assistant appeared to have<br />
seen nothing. Van Hasselt became angrier and angrier. “If I say it was here, it was here!”<br />
he shouted. The assistant, showing obvious embarrassment, piped up at last:<br />
“Excuse me sir, but could it be the stuff that’s up there on the ceiling?”<br />
In the years following World War II, the situation at the premises<br />
in Drentsestraat became progressively more difficult<br />
because residential buildings by now completely surrounded<br />
the site, and environmental requirements were becoming<br />
increasingly stringent. In order to grow, the firm needed to<br />
relocate to new premises and invest in new technology.<br />
Plans to do just this were thwarted by problems at Chefaro’s<br />
Dordrecht site, however. The production of organic peroxides<br />
was moved from there to sites in Deventer (in the east<br />
of the Netherlands), Mons (Belgium) and Gillingham (UK),<br />
and the trade unions pressed for new jobs to replace the old<br />
ones. The manufacturing of rubber chemicals and fungicides<br />
was therefore transferred from Amersfoort to Dordrecht near<br />
Rotterdam. Later the production of rennet and chlorocalcium<br />
was transferred to a site in Herkenbosch in Limburg, in the<br />
south of the Netherlands.<br />
The end of the line<br />
The new parent company Chefaro flourished in the 1950s,<br />
and in 1956 it took over the Industria paint factory in<br />
Hilversum, to the north of Utrecht. Later, in 1965, Chefaro<br />
merged with Amsterdam-based Ketjen. In 1966 there were<br />
still approximately 70 people working at Van Hasselt. Van<br />
Hasselt’s business activities in Amersfoort began to decline<br />
at the end of the 1960s, however. The manufacture of<br />
one product after another was terminated, the number of<br />
employees fell, and staff hired in from employment agencies<br />
were used as much as possible. In 1969, Van Hasselt<br />
became part of Akzo’s Chemicals division and Chefaro part<br />
of its Pharma division.<br />
Things seemed to be looking up with the introduction of a<br />
biological process for making rennet, but the major dairy<br />
cooperatives opposed this development and the Amersfoort<br />
site closed down for good in 1977. Most of the remaining<br />
employees were transferred to the head office of Akzo’s<br />
Chemicals division in Amersfoort, while the rubber chemicals<br />
business became part of a joint venture – trading under<br />
the name Flexsys – with Solutia.
Van Hasselt won major distinctions at agricultural exhibitions held<br />
in London in 1884 and 1886<br />
Filling bags with the rubber curing accelerator Tetramethylthiuram<br />
Disulfide at a Van Hasselt facility in the 1970s
94<br />
Teeuwis Duyvis, the founder of a brand that is still well known in<br />
the Netherlands today
The Akzo legacy<br />
The history of Duyvis in the Zaan region of North Holland goes back to<br />
1806. This was the year when Teewis Duyvis inherited an oil mill from<br />
his unmarried uncle and laid the foundations for what was eventually to<br />
become a major consumer brand in the Netherlands.<br />
95<br />
Overview<br />
A new focus: linseed oil<br />
Declining sales – and the move into consumer markets<br />
“Royal” status – and an IPO<br />
Incorporation into Akzo<br />
Acquisition by Sara Lee/Douwe Egberts<br />
A top Dutch consumer brand
96<br />
Duyvis:<br />
From animal feed to party snacks<br />
The Akzo legacy<br />
Teewis Duyvis used his mill to press oil from<br />
rapeseed and linseed. As well as producing<br />
rapeseed and linseed oil, Duyvis also produced<br />
oil cake, which became the mill’s<br />
core business. Oil cake is the solid residue<br />
obtained after oil is removed from various<br />
types of oily seeds. It is valued for being rich<br />
in minerals and protein, and is most commonly<br />
used in animal feed.<br />
Teewis’ grandson, Teewis Duyvis Janszoon,<br />
took over the company in due course and<br />
gave it the name that it was to carry for more<br />
than 100 years: T. Duyvis Jansz. (short for<br />
Janszoon, which means “son of John”). By<br />
this time – the 1850s – the company already<br />
had five oil mills and two hulling mills. In<br />
1875, the company passed into the hands<br />
of Ericus Gerardus Duyvis, one of T. Duyvis<br />
Janszoon’s five sons. He decided to build a<br />
steam-powered oil mill in Koog aan de Zaan.<br />
Oil cake was still the company’s core business<br />
at this point.<br />
A new focus: linseed oil<br />
In 1908, T. Duyvis Jansz. shifted focus from<br />
oil cake to oil itself, and began exporting linseed<br />
oil. Initially the company sold linseed<br />
oil only in its crude form, but as from 1920 it<br />
started refining the product in-house. In the<br />
following year, the company incorporated<br />
as n.v. Oliefabrieken T. Duyvis Jansz. and it<br />
soon became a major producer of linseed<br />
oil. There were even record years between<br />
1920 and 1930, when Duyvis was responsible<br />
for approximately 40 percent of the<br />
total Dutch export of linseed oil.<br />
Declining sales – and the move<br />
into consumer markets<br />
The Great Depression of the 1930s did not<br />
leave Duyvis untouched. Sales of its core<br />
product, linseed oil, declined and the company<br />
was obliged to explore new markets.<br />
Linseed oil – a versatile product<br />
Linseed oil is derived from the dried ripe seeds of the flax plant (Linum usitatissimum), from<br />
which linen is also made. It can be a nutritional supplement, a paint binder and a wood<br />
finish, and is a key ingredient in putty, in animal feeds, and in textile and leather production.<br />
If cold-pressed, the oil is pale in color, almost without taste or odor, and is used nutritionally<br />
as flax seed oil. But this oil oxidizes easily and becomes rancid unless refrigerated. It is very<br />
rich in a type of fat called alpha-linolenic acid, an omega-3 fatty acid which appears to help<br />
prevent heart disease, inflammatory bowel disease and arthritis.<br />
When extracted by application of heat, pressure and solvents, however, the oil is darker,<br />
has a bitter taste and an unpleasant odor. This is used as a drying oil in paints and varnish,<br />
and is also used as a painting medium to make oil paint more fluid, transparent and glossy.<br />
Linseed oil is an ingredient in linoleum, oilcloth, and inks. Heating the oil makes it polymerize<br />
and oxidize, making it thicker and shortening the drying time. Boiled linseed oil is used as a<br />
wood finish and does not coat the surface of wood like varnish, but penetrates the pores,<br />
and dries out slowly, leaving a shiny surface that enhances the grain. When treated, the<br />
wood is more resistant to denting, and scratches are easier to repair. Linseed oil has been<br />
traditionally used as a finish for gun stocks, and is also used to season willow cricket bats.<br />
It was this need to find new sales opportunities<br />
for its output which prompted Duyvis<br />
to start selling salad oil direct to consumers.<br />
In 1932, Duyvis’ sauces were born with the<br />
launch of a salad dressing named Salata ® .<br />
This was the first step in what was to<br />
become a defining move into branded consumer<br />
food products.<br />
The outbreak of World War II brought the<br />
supply of the company’s most important<br />
raw materials – linseed and ground nuts –<br />
to a standstill. The oil mills lay idle as a result.<br />
The import of these raw materials in the<br />
Netherlands never really took off again after<br />
the war, so Duyvis was forced to look for<br />
other raw materials based on vegetable oils.<br />
Branded products became increasingly popular<br />
in the post-war era, prompting Duyvis<br />
to finally opt for a future as a producer of<br />
branded food products. The company therefore<br />
terminated the production of oil cake and<br />
started refining vegetable oils once more.<br />
Emphasis was now placed on several oilbased<br />
brand products, such as the Livorno ®<br />
and Salata ® brand salad dressings.<br />
Duyvis’ shift into consumer markets did not<br />
lessen the importance of its activities as an<br />
exporter. To be closer to one of its major consumer<br />
markets, it set up a company called<br />
Mayolande in France, which used the brand<br />
name Bénénuts ® . At the same time the production<br />
and refining of oil in the Netherlands<br />
was declining in importance, because these<br />
activities were increasingly being carried out<br />
in the countries that grew the raw materials.<br />
“Royal” status – and an IPO<br />
Upon receiving its “Royal” designation in<br />
1958, the full name of the company became<br />
Koninklijke Fabrieken T. Duyvis Jz. n.v. In the<br />
same year, Duyvis listed on the Dutch stock<br />
exchange, intending to use the proceeds of<br />
its public listing for expansion.
The Duyvis factory at Koog aan de Zaan in the 1970s<br />
97
98<br />
Duyvis:<br />
From animal feed to party snacks<br />
The Akzo legacy<br />
Not a nut at all<br />
The peanut (Arachis hypogaea) is a pulse or legume, belongs to the<br />
same botanical family, Fabaceae, as beans, peas and lentils, and<br />
is also called a groundnut. “Pea” is the name given to the seeds of<br />
plants in the same family, so a peanut is a kind of pea, not a nut.<br />
Native to South and Central America, peanuts are thought to have<br />
first been cultivated more than 7000 years ago. An annual which<br />
grows 30 to 50 cm in height, the peanut is unusual because it bears<br />
its fruit below ground. After fertilization, the flowers wither and form<br />
into ovaries, which develop a new stem or “peg” with the peanut<br />
embryo at the tip. This grows away from the plant and down into the<br />
soil, where it turns horizontally before maturing.<br />
Peanuts and peanut butter are high in protein, but can cause<br />
allergic reactions.The oil has a mild flavor and burns at a relatively<br />
high temperature. Peanuts are also called goober peas, pindas,<br />
earthnuts, jack nuts and, when sold in their pods, monkey nuts.<br />
Incorporation into Akzo<br />
In 1961, Duyvis commenced the production<br />
and marketing of packets of peanuts,<br />
almonds, cashew nuts, mixed nuts,<br />
and assorted nuts and raisins. Snacks<br />
and mixes followed approximately seven<br />
years later. During the course of 1969,<br />
Duyvis became part of Akzo’s Consumer<br />
Products division, having been previously<br />
acquired by Koninklijke Zout-Organon in<br />
1968. This marked the end of Duyvis as a<br />
family business.<br />
Acquisition by Sara Lee/<br />
Douwe Egberts<br />
In 1983, Duyvis was merged with Recter,<br />
another company belonging to Akzo<br />
Consumer Products. As a result, it lost its<br />
Royal designation because it was no longer<br />
an independent company. Divestment of<br />
Akzo Consumer Products to Sara Lee/<br />
Douwe Egberts was to follow in 1987. This<br />
move gave Duyvis access to Douwe Egberts’<br />
modern logistics systems and support in<br />
the field of quality improvement and packaging.<br />
In its new role, Duyvis also acted as a<br />
producer and supplier for sister companies<br />
abroad. At this time the company enjoyed<br />
important market positions, especially in<br />
France with Bénénuts ® , and in Belgium with<br />
its Felix ® and Duyvis ® brands.<br />
A top Dutch consumer brand<br />
In 1991, a modern plant was built in<br />
Zaandam, the same place where the Duyvis<br />
family had started its business at the beginning<br />
of the 19th century. ISO-9002 certification<br />
was awarded two years later, attesting<br />
that Duyvis met all present-day requirements<br />
in the fields of research, quality, production<br />
and packaging. The company celebrated its<br />
bicentenary in 2006, firmly established as<br />
the Netherlands’ best-known and biggest<br />
producer of top quality peanuts, coated<br />
nuts, luxury nuts, popcorn, snacks, and dry<br />
mixes for sauces.<br />
Duyvis appears in this book as a representative<br />
of the many food brands which played<br />
an important role in Akzo’s portfolio during<br />
the 1960s and 1970s.
“If they are this big, this golden and shiny, and<br />
so fresh and crunchy, they are Duyvis peanuts.”<br />
Duyvis grew to become the Netherlands’<br />
leading packaged nut brand<br />
99
100<br />
The founders of Organon. Seated from left to<br />
right: Ernst Laqueur, Saal van Zwanenberg and<br />
Jacques van Oss
The Akzo legacy<br />
When, in the 19th century, the Zwanenberg family settled in Oss, in the<br />
Dutch province of Brabant, they were already trading in livestock and<br />
meat. In the course of time, countless new product lines were added to<br />
the portfolio of Zwanenberg & Co. which had been founded in 1887 –<br />
a coopery, a fat-melting company, a bacon and gut-salting operation,<br />
a blood-drying house for making black pudding, a brush works using<br />
hogs’ hair, a margarine works, a refinery for oils and fats, and plants for<br />
making soap and canning food. A predecessor of Unilever, Margarine<br />
Unie, was to take over the oil, fat and soap works in 1929. Much later, in<br />
1970, Unilever acquired other food-related activities, which by then had<br />
been combined in the foodstuffs division of the conglomerate Akzo – of<br />
which Organon had become a part. But as the 20th century began, the<br />
members of the large Zwanenberg family were still in charge of all<br />
these activities.<br />
101<br />
Overview<br />
Insulin – a gap in the market<br />
Industrial manufacture of insulin<br />
Hormonal products<br />
A global expansion strategy<br />
World War II – and many losses<br />
Organic growth and mergers<br />
The birth control pill and more products
102<br />
Organon:<br />
From meat products to innovative pharma ceuticals<br />
The Akzo legacy<br />
An extremely<br />
difficult question<br />
“It was at that time that I started to wonder whether all those glands<br />
that were being sent to the destructor couldn’t be made usable<br />
in some way, even if their use was strictly limited because they<br />
contained no fat and had no nutritional value. I thought to myself<br />
that the Almighty must have created them for some purpose, and I<br />
started to search for the meaning of it all. Prior to this, I had hired<br />
Dr Jacques van Oss as a consultant. He was an efficiency expert for<br />
the City of Amsterdam and a teacher of chemistry and commodities<br />
science, and he knew much more about machines and all sorts of<br />
other things in a company like ours than I did. He’d written a book<br />
about the history of commodities, and he was an authority on the<br />
subject. That’s to say he knew a little bit about a great many things,<br />
but he could always find anything out. So one day I presented him<br />
with the problem. ‘Jacques,’ I said, ‘I’ve got an extremely difficult<br />
question for you. Isn’t there something we could do with all those<br />
glands that go to the destructor?’ He remembered hearing about<br />
ovaries being dried in America. At that time I didn’t even know what<br />
ovaries were. I said I thought it was wonderful that they were doing<br />
this in America, but I didn’t want to start by copying them. I wanted<br />
to find out if we could begin something new. I contacted people in<br />
France and England, but nothing came of it. It was then Jacques<br />
van Oss met Ernst Laqueur. Laqueur had just been appointed<br />
Professor of Pharmacology in Amsterdam, and he was particularly<br />
interested in the pancreas. This meeting with Laqueur was<br />
immensely important. Without him, Organon would never have got<br />
off the ground or become what it is today. He had a superb grasp of<br />
endocrinology and great vision. The three of us had a series of talks<br />
and finally we set up Organon.”<br />
Saal van Zwanenberg, speaking on October 16, 1968<br />
Insulin – a gap in the market<br />
One of the Zwanenberg’s was called Salomon,<br />
better known as Saal. He noticed that large<br />
quantities of offal were regularly thrown away<br />
in the company’s slaughterhouse because<br />
they were deemed to have no proper use.<br />
He viewed this physical wastage as a financial<br />
loss, and set his mind to thinking how<br />
the cast-off organs might be put to commercial<br />
use. His speculations proved fruitful<br />
in 1921 when it was discovered in Canada<br />
that insulin could be obtained from the pancreases<br />
of animals and that this substance<br />
could be used to combat diabetes.<br />
Industrial manufacture of insulin<br />
Together with a small group of scientists, Saal<br />
established Organon in 1923. It commenced<br />
producing insulin with five employees. At<br />
first, the start-up did not go at all well. The<br />
effects of insulin had been clinically proven,<br />
but isolating the substance from pig pancreases<br />
proved a different matter entirely.<br />
Almost a kilo of porcine pancreases was<br />
required to produce several tenths of a gram<br />
of insulin. Eventually, it was discovered that<br />
the pancreases of newborn calves contained<br />
far more insulin than those of mature<br />
pigs. Saal ceased processing pig offal from<br />
Zwanenberg & Co.’s own slaughterhouse<br />
and started importing the frozen pancreases<br />
of Argentinean cattle. This new approach<br />
led to Organon’s first successes in the commercial<br />
production of insulin. The number<br />
of products – most of them by-products of<br />
insulin production – increased rapidly. In the<br />
course of time, the company began manufacturing<br />
for the chemical, household, cosmetic<br />
and pharmaceutical industries, with<br />
the accent on insulin and hormone-based<br />
pharmaceuticals.<br />
Hormonal products<br />
Organon’s research activities expanded, and<br />
it was discovered how fertility-enhancing<br />
products involving estrogen hormones<br />
could be made from the ovaries of mares.<br />
For the production of estrogens, Organon<br />
later switched to other sources, such as<br />
the urine of pregnant women and, from<br />
1930 onwards, also to the urine of mares<br />
in foal. This marked the start of a series of<br />
hormonal and other products, among them<br />
Pernaemon ® to fight anemia. Some products<br />
were discovered by chance – for instance, a<br />
residue from the pancreas which, in combination<br />
with sawdust, revealed itself as a<br />
highly effective agent for staining leather. It<br />
was called Leeropaan ® .<br />
During its early years in particular, Organon’s<br />
creativity knew no bounds. All the worthless<br />
offal generated by Zwanenberg & Co.’s<br />
slaughterhouse was regarded as potentially<br />
useful raw material. In 1924, coated tablets<br />
for the treatment of menopausal complaints<br />
were made from the ovaries of animals.<br />
Called Ovarnon ® in the Netherlands, this<br />
product was launched in Germany under the<br />
name of Ovowop ® . Advertisements of the<br />
day joyously announced: “Female beauty<br />
soon returns with Ovowop ® .”<br />
A global expansion strategy<br />
Initially, Ernst Laqueur headed Organon’s<br />
R&D operation but later, in 1926, he introduced<br />
his successor, the young Austrian<br />
physician Marius Tausk, to Saal. Tausk’s<br />
passion for endocrinology was matched<br />
by his flair for business, and he was to<br />
have a decisive influence on Organon’s<br />
development.<br />
Saal van Zwanenberg, on the other hand,<br />
took care of the sales side. Showing commendable<br />
effrontery, Saal one day paid a<br />
visit to Bayer, the German pharmaceutical<br />
giant, to discuss the sale of insulin powder.
Packaging insulin in 1936<br />
103
104<br />
Organon:<br />
From meat products to innovative pharma ceuticals<br />
The Akzo legacy<br />
The Germans laughed at the “amateur”<br />
from the Netherlands – only to find out to<br />
their horror that Saal had soon after their<br />
meeting established Organon’s own sales<br />
organization for Germany. Saal repeated<br />
the model around the world, and by the late<br />
1930s, Organon’s products were sold in<br />
almost 40 countries – even though sales in<br />
some did not exceed a couple of hundred<br />
Dutch guilders a year.<br />
World War II – and many losses<br />
The company met with hard times during<br />
World War II, as the majority of the management<br />
was Jewish. According to Nazi race<br />
laws, Marius Tausk – in charge of research<br />
and development – was half Jewish, and<br />
was therefore left alone. The majority, however,<br />
including Saal van Zwanenberg, had to<br />
flee the Netherlands, and a number of the<br />
Early insulin production<br />
Zwanenberg family died in Nazi concentration<br />
camps. Saal van Zwanenberg and<br />
his family succeeded in fleeing to Britain,<br />
where Organon had a subsidiary. By this<br />
stage, the site in Oss, in the Netherlands,<br />
was being run by the Germans and it had to<br />
manufacture products to supply the German<br />
market. Food was scarce in the Netherlands<br />
during the final years of the war. Fortunately,<br />
Organon’s neighbor was a meat works, and<br />
sometimes something edible was to be had<br />
there. This allowed most employees to survive<br />
the war, although a number of them,<br />
mostly Jews, met their deaths.<br />
After World War II, Organon increasingly<br />
went down the chemical route for its products,<br />
manufacturing preparations by means<br />
of synthesis instead of extraction from<br />
animal material. However, the company<br />
was still using the urine of pregnant mares<br />
to produce the female estrogen hormones<br />
Hans van Kaathoven, one of the original team who produced insulin at Oss, recollected<br />
later in life how he had come to join Organon: “With a few years of army service behind me,<br />
when I was demobilized in 1918 I found a nice little position as a night watchman at N.V.<br />
Zwanenberg. Perhaps I’d still be leading that night life now if a strange gentleman hadn’t set<br />
up in a small corner of our laboratory. That corner, separated by a wooden partition, didn’t<br />
have a name, but in fact it was the room where our company was born. If your buddy gave<br />
you a leg-up, you could see the whole ‘company’ through a couple of panes of glass.<br />
“There were several pounds of meat lying on a wooden table. On the ground, between a<br />
set of bottles and some test tubes, there was a briefcase. You could say that the table was<br />
the raw materials stockroom, and the briefcase was the firm’s administrative system –<br />
at least the part of it that the boss didn’t have in his inside pocket.”<br />
The strange gentleman was manager Walther Riebensahm. Together with a team of four<br />
employees, he was responsible for Organon’s first insulin output. It was a primitive operation<br />
in those days. The pancreases came from the slaughterhouse in 45 lb baskets and were<br />
ground up. One man could process about 65 lb a day. The alcohol needed for the extraction<br />
of the insulin (32 gallons for every 225 lb) came in carboys, so that the production department<br />
was often concealed behind a wall of bottles.<br />
oestradiol and oestrone. Investigations into<br />
the male hormone testosterone led to the<br />
development of muscle-building anabolic<br />
steroids in the 1950s, which were to account<br />
for 32 percent of sales by 1963.<br />
Organic growth and mergers<br />
In 1947 Organon and Zwanenberg & Co.<br />
merged to form Zwanenberg-Organon. Its<br />
royal designation followed in 1953, creating<br />
Koninklijke Zwanenberg-Organon (KZO).<br />
The 1960s witnessed strong organic growth<br />
and mergers with other companies. By 1963,<br />
Organon was selling its products in more<br />
than 90 countries, either through subsidiaries<br />
or agents. But with the cyclical nature<br />
of the meat sector and the high costs of its<br />
own pharmaceutical R&D activities, KZO<br />
felt very vulnerable. To avoid the prospect<br />
of being taken over, it was keen to base its<br />
activities on products that were less susceptible<br />
to price fluctuation and high costs.<br />
Within a short period of time, therefore, KZO<br />
took over a number of smaller companies.<br />
These included consumer goods companies<br />
such as Loda, Echafa, and Glimfabriek,<br />
which produced cleaning products and<br />
detergents. Closer to home were acquisitions<br />
of meat works and foodstuff companies<br />
such as Anton Hunink, California<br />
Soups and the Fina works, as was the purchase<br />
of the animal healthcare company<br />
Intervet. Koninklijke Zwanenberg-Organon<br />
also made two large takeovers, acquiring<br />
Noury & Van der Lande (chemical products)<br />
and Kortman & Schulte (washing powders).<br />
The buying spree resulted in rather an odd<br />
bunch of companies, and KZO dubbed itself<br />
“A procession of dwarfs”, after a book by<br />
Dutch author Simon Carmiggelt, which had<br />
been published around that time.<br />
Organon under the Occupation<br />
“As far as the Dutch directors were concerned, it went without saying that Organon had to<br />
remain a financially sound company. We owed it to the shareholders who were abroad, but<br />
above all we owed it to the employees and to the people for whom medication like insulin,<br />
liver extracts and some of the vitamins were vital. As far as possible we tried to stop these<br />
products from being sent to Germany. The Dutch State Drugs Agency was on our side and<br />
repeatedly refused to issue export licenses.”<br />
Marius Tausk, writing in his book Organon – The story of an unusual pharmaceutical<br />
enterprise (1978)
The Organon pilot plant in 1942<br />
105
106<br />
Organon:<br />
From meat products to innovative pharma ceuticals<br />
The Akzo legacy<br />
In 1967, Koninklijke Zwanenberg-Organon merged with<br />
Koninklijke Zout-Ketjen, which by that time included Chefaro<br />
(Chemishe Fabriek Rotterdam), primarily a producer of nonprescription<br />
drugs, notably Chefarine ® , the Dutch version of<br />
asprin. That is how Koninklijke Zout-Organon (a new KZO)<br />
came into being – definitely no longer a dwarf and busily<br />
working on further expansion. KZO took over, among other<br />
companies, Hoesch Chemie (a German chemicals manufacturer),<br />
Duyvis (a Dutch snack producer), Edet (a Dutch<br />
producer of paper for household use), Lesonal (a German<br />
paint manufacturer) and Wilco (a canned food company).<br />
KZO’s acquisition drive resulted in separate divisions for<br />
Salt Chemicals, Chemicals, Coatings, Pharmaceutical products,<br />
Food and Household products – the precursors of<br />
what was soon to become Akzo.<br />
Following the creation of Akzo from the merger in 1969 of<br />
KZO with AKU, several Organon subsidiaries were spun off<br />
to form independent businesses within Akzo’s new Pharma<br />
division. Organon’s veterinary activities were incorporated<br />
in Intervet International, which was quickly established in<br />
1969. In 1971 Diosynth, which had been set up by Organon<br />
in 1955 to make bulk pharmaceutical ingredients, not only<br />
for Organon, but also for third-party pharmaceutical companies,<br />
was launched as a completely independent business. A<br />
year later Chefaro was spun off to focus entirely on non-prescription<br />
medications and Organon Teknika was established<br />
to market diagnostic and other preparations and equipment<br />
intended primarily for hospitals and laboratories.<br />
The birth control pill and more products<br />
Organon was not the first company looking to produce a<br />
female oral contraceptive, but it was one of the first to successfully<br />
introduce a birth control pill – a product which was<br />
to have a transformational effect on society in the final third<br />
of the 20th century. Organon’s Lyndiol ® oral contraceptive<br />
had a difficult time when it was launched in 1962. There was<br />
considerable debate between proponents and opponents of<br />
the drug, both outside and inside the company – Organon’s<br />
headquarters are in the predominantly Catholic Dutch province<br />
of North Brabant, and many of the workers found it<br />
hard to reconcile their conscience with producing the pill.<br />
Resistance in the packaging department was so great that<br />
initially, packaging the product had to be contracted out.<br />
Nevertheless, Lyndiol ® proved to be a huge success in<br />
Western Europe.<br />
Lyndiol ® was followed in 1981 by the highly successful<br />
Marvelon ® , the first “third generation”, low-dose contraceptive<br />
pill containing a progestonic hormone developed<br />
by Organon. Marvelon ® became the world’s most commonly<br />
prescribed oral contraceptive. Other important hormone-based<br />
products brought to market by Organon in the<br />
second half of the 20th century included the fertility hormone<br />
Humegon ® (1963), which was obtained from the urine<br />
of post-menopausal women; Andriol ® (1978), the replacement<br />
medication used to treat men with a testosterone<br />
deficit; and Livial ® (1988), a synthetic hormone used in hormone<br />
replacement therapy for women during and following<br />
menopause. Meanwhile, significant steps in the treatment of<br />
the symptoms of depression were taken with the launch of<br />
Tolvon ® in 1974.<br />
Building on such successes, in the early 1980s Organon<br />
started to pursue biotechnological approaches to drug discovery,<br />
based on recombinant DNA technology. It delivered<br />
its first tangible results some 10 years later – Puregon ® , the<br />
recombinant Follicle Stimulating Hormone used in treating<br />
infertility. (Puregon’s predecessor, Humegon ® was still being<br />
produced from the urine of menopausal women.) Introduced<br />
in the Netherlands in 1996, Puregon was within ten years to<br />
play a part in the birth of a staggering one million babies.<br />
<strong>Today</strong> it still plays an important role in in vitro fertilization<br />
treatments and is Organon’s biggest selling product.<br />
Sales grew throughout the 1990s, but Organon faced a<br />
major shock in 1995 when several national health authorities<br />
questioned the safety of third-generation oral contraceptives<br />
following studies implying that such “pills” were associated<br />
with a higher risk of deep vein thrombosis than earlier generation<br />
pills. Subsequent epidemiological studies did not<br />
confirm any difference in risk of venous thromboembolism.<br />
Nevertheless, much damage had been done.<br />
Subsequent product introductions included Puregon ®<br />
(1996); Implanon ® (1998), a three-year-acting contraceptive<br />
implant; Cerazette ® (1999), an estrogen-free oral contraceptive;<br />
Orgalutran ® (2000), a new fertility drug; and NuvaRing ®<br />
(2002), the first and only once-a-month contraceptive ring.<br />
All these products continue to support the company’s longstanding<br />
and commanding position in gynecology and fertility.<br />
Meanwhile, significant steps in the treatment of the<br />
symptoms of depression were taken with the launch of<br />
the dual-action antidepressant Remeron ® in 1994. Initially<br />
a potential blockbuster product which drove impressive<br />
growth, nearly a decade later it rapidly lost market share<br />
when an unfavorable court ruling on one of its patents in the<br />
United States opened the door for generic competition.<br />
Shortly after the turn of the century, efforts to sharpen the<br />
focus of Akzo Nobel’s human pharma portfolio led to the<br />
sale of its Chefaro business unit and the diagnostics activities<br />
of Organon Teknika; the few non-diagnostic activities<br />
remaining reverted back to Organon. Under pressure from<br />
adverse market conditions, in 2003 Organon embarked on a<br />
new strategy to reduce costs, return to growth and reshape<br />
the business for the future. Four core therapeutic fields –<br />
gynecology, fertility, anesthesia and neuroscience – and a<br />
new strategy were defined. In 2004 Organon and Diosynth<br />
were merged to strengthen Organon’s biotechnology platform.<br />
The proof that these efforts were bearing fruit was<br />
delivered in February 2006, when Organon reported earnings<br />
(EBITDA) of c541 million for 2005. At the same time,<br />
Akzo Nobel announced its intention to separate its pharma<br />
business – Organon, Intervet and Nobilon – from the company.<br />
A new holding company, Organon BioSciences, was<br />
set up in October 2006 in preparation for an intended IPO<br />
in 2007. Before that came to fruition, in early March 2007<br />
Akzo Nobel received and accepted an offer from Schering-<br />
Plough for the purchase of Organon BioSciences, which<br />
was effected in November 2007.
The dual action antidepressant Remeron ® was launched in 1994.<br />
Sales increased steadily to peak in 2002 at more than e700 million<br />
Organon’s first oral contraceptive Lyndiol ® was launched in 1962.<br />
It encountered strong initial resistance – not least from the traditionally<br />
Catholic workforce of Oss itself
108<br />
Wim Hendrix, whose Laboratoria Nobilis was<br />
to grow to become Intervet
The Akzo legacy<br />
Intervet is one of the youngest companies to figure in the history<br />
of <strong>AkzoNobel</strong>. It was founded in late 1949 as Laboratoria Nobilis by<br />
a forward-thinking manufacturer of animal feed based in Boxmeer<br />
(between Nijmegen and Venlo in the Netherlands). The founder’s<br />
name was Wim Hendrix, and his plan was to develop vaccines to<br />
combat poultry diseases. The entrepreneurial logic of Wim’s thinking<br />
was simple but brilliant: a sick chicken doesn’t eat; a healthy one does…<br />
109<br />
Overview<br />
The road to Akzo Nobel<br />
Expansion in the key U.S. market<br />
A top-three player<br />
An ongoing innovation agenda<br />
Acquisition by Schering-Plough
110<br />
Intervet:<br />
A tale of healthy growth<br />
The Akzo legacy<br />
In those days, fowl pox was relatively widespread, and so<br />
this disease was the first object of Wim’s attention. He contacted<br />
the veterinary faculty of the University of Utrecht and<br />
asked Professor Jac Jansen for help with his investigations<br />
into the condition. Jansen advised Hendrix to employ one<br />
of his assistants, the veterinarian J.H.M. Richter. The professor’s<br />
advice was to prove very sound, for within a year,<br />
Hendrix’ new employee developed the first Nobilis inoculum<br />
for fowl pox, Ovo-Diphterin ® . In the following decade,<br />
Laboratoria Nobilis introduced almost one new product a<br />
year. Developed exclusively for use in poultry, these vaccines<br />
offered protection against a range of conditions, including<br />
Newcastle disease, coccidiosis and infectious bronchitis.<br />
The road to Akzo Nobel<br />
By 1961, Laboratoria Nobilis had become a success outside<br />
the Netherlands, exporting its proprietary vaccines<br />
to Belgium and Germany. A series of mergers then transformed<br />
Wim Hendrix’ original company into a global organization.<br />
First, Laboratoria Nobilis was acquired in 1961 by<br />
KZO (Koninklijke Zwanenberg-Organon), the parent company<br />
of Organon. Then in 1964, KZO acquired a company<br />
selling antibiotics against mastitis. In the following year, KZO<br />
bought both Vemie of Germany and the veterinary division<br />
of Aspro-Nicholas in France, which traded under the name<br />
Intervet. In 1967 and 1969, KZO underwent two successive<br />
mergers – with Koninklijke Zout-Ketjen (KZK) and Algemene<br />
Kunstzijde Unie (AKU), respectively – to ultimately create<br />
Akzo. At this point, all animal health activities of the former<br />
KZO were brought together into one company, now known<br />
as Intervet International bv. (Akzo became Akzo Nobel following<br />
its merger with the Swedish chemical giant Nobel<br />
Industries in 1994). Although Wim Hendrix’ original name<br />
Nobilis no longer features in the company name, it lives on<br />
as a brand name for a range of Intervet poultry vaccines.<br />
Expansion in the key U.S. market<br />
In the late 1970s, Intervet set out to become a major player<br />
in the field of animal health. Employing by that stage approximately<br />
600 people worldwide, Intervet had already acquired,<br />
among other companies, Poultry Biologicals in the UK (in<br />
1971) and Láboratorios Saltor in Spain (in 1973). To move up<br />
to the top tier of global players, however, Intervet needed a<br />
presence in the United States – a country which accounts<br />
for one-third of the global market for veterinary vaccines. The<br />
company therefore set out to find a suitable acquisition in the<br />
United States and in 1980 added Inter-Continental Biologics<br />
in Millsboro (Delaware). Inter-Continental Biologics soon<br />
changed its name to Intervet Inc., shipping its first product<br />
with the new company name – a vaccine for Marek’s disease<br />
– in March 1982. Intervet Inc. took some time to establish<br />
itself as a major presence in the U.S. market, but its influence<br />
grew over the ensuing years, taking its total number of<br />
individual poultry vaccines to 17.<br />
A top-three player<br />
Intervet’s global acquisition drive continued in the meantime,<br />
and the company bought a part of Gist-Brocades<br />
(Netherlands) in 1988, Norbio (Norway) in 1993, Ausvac<br />
(Australia) in 1998 and Gellini (Italy) in 1999. In the same<br />
year as acquiring Gellini, Intervet achieved its decisive strategic<br />
breakthrough with the acquisition of German-based<br />
Hoechst Roussel Vet, as well as Bayer’s U.S. veterinary<br />
biologicals operation. This bold move doubled Intervet’s<br />
sales, taking the company from 10th largest to that of thirdlargest<br />
veterinary company in the world. A successful integration<br />
process followed these acquisitions. New research<br />
facilities were opened or acquired, and office and manufacturing<br />
facilities added, providing a strong platform for future<br />
international growth.<br />
Intervet’s U.S. activities were further consolidated in May<br />
2003, when the company opened a new life science<br />
center in DeSoto, Kansas. This site now serves as a major<br />
research facility for livestock vaccines and as a production<br />
facility for swine and cattle vaccines. It is Intervet’s largest<br />
distribution center and a center of excellence for the<br />
clinical development of livestock and equine pharmaceuticals<br />
in the United States.<br />
An ongoing innovation agenda<br />
Throughout its history, Intervet always maintained its focus<br />
on innovation, assembling a portfolio which included a<br />
number of unique products, as well as many breakthroughs<br />
in technological applications and disease coverage. In 1984,<br />
Intervet was the first veterinary company to develop a vaccine<br />
based on recombinant DNA technology to fight the E. coli<br />
bacteria, which causes diarrhea in piglets and calves, followed<br />
by the first monoclonal parenteral product in the 1990s.<br />
In 1997, the company registered another first with a patented<br />
marker vaccine against classical swine fever which<br />
allowed a vaccine virus to be distinguished from a field virus<br />
by means of a diagnostic test. Intervet’s range of marker<br />
vaccines against major livestock diseases expanded to<br />
include vaccines against foot and mouth disease, classical<br />
swine fever, infectious bovine rhinotracheitis and the<br />
Intervet Porcilis ® AD Begonia vaccine against Aujeszky’s<br />
disease. At the time this book went to press, this vaccine<br />
had sold more than 500 million doses worldwide. Intervet<br />
became a pioneer in biotechnology, which by 2005 provided<br />
approximately 45 percent of its turnover. Following<br />
its strategy of expanding its presence in foot and mouth<br />
disease, Intervet acquired Bayer’s FMD vaccine factory in<br />
Cologne, Germany, in 2006.<br />
The previous year, Intervet had acquired the New Zealand<br />
animal healthcare company AgVax. In 2006 the company<br />
also completed the first phase of an ambitious expansion<br />
program in its original home of Boxmeer, the Netherlands,<br />
with the opening of a new tissue culture facility.<br />
Acquisition by Schering-Plough<br />
From the days of its foundation by the forward-thinking<br />
Wim Hendrix in 1949, Intervet developed from a business<br />
focused initially on poultry vaccines into one of the world’s<br />
three largest animal health companies. By 2007 Intervet’s<br />
range spanned almost every major therapeutic area and<br />
included products for use in all the main food-producing and<br />
companion animal species.<br />
Akzo Nobel divested Intervet, together with Organon and<br />
Nobilon, to Schering-Plough in November 2007 in order<br />
to focus on its Coatings and Chemicals portfolios. At the<br />
time of the divestment, Intervet employed more than 5,300<br />
people and had operations in more than 50 countries and a<br />
distribution network covering more than 100 countries.
Elly Verbruggen operating one of the first<br />
freeze-driers (1964)<br />
Intervet has developed from a business focus ed initially on poultry<br />
vaccines into one of the world’s three largest animal health companies
112<br />
Armour’s origins lie in the Chicago Stock Yards, the hub which in the<br />
late 19th century linked the cattle ranching of the American mid-west<br />
with the growing population of the eastern seaboard
The Akzo legacy<br />
<strong>AkzoNobel</strong>’s very earliest roots in the United States go back to the<br />
18th century. Samuel Courtauld III, the founder of the British textiles giant<br />
Courtaulds (acquired by Akzo Nobel in 1998), was born in New York in<br />
1793 into a family of expatriate French Huguenots who alternately tested<br />
their entrepreneurial fortunes in Great Britain and the United States.<br />
The American arm of Courtaulds was to significantly outgrow its<br />
British parent in terms of both size and profitability during the first four<br />
decades of the 20th century, until it was divested at the behest of the<br />
U.S. Government in 1941. (See separate chapter on Courtaulds.)<br />
<strong>AkzoNobel</strong> has other important predecessor companies in the United<br />
States, however, most notably the chemical companies Armour and<br />
Stauffer (acquired in 1970 and 1987, respectively).<br />
113<br />
Overview<br />
A need for new product applications<br />
The fractionation of fatty acids<br />
Expansion abroad<br />
A short ride with Greyhound<br />
The creation of Akzona<br />
Akzo America, Inc.<br />
Armour joins Henkel<br />
Acquisition of Stauffer Chemical Co.<br />
Akzo Chemicals Inc.<br />
The creation of Akzo Nobel – and a new Surface Chemistry business<br />
Reorganization and expansion<br />
Akzo Nobel Surface Chemistry LLC<br />
Back to Chicago
114<br />
Armour and Stauffer:<br />
From Chicago to Stenungsund and back<br />
The Akzo legacy<br />
A need for new product applications<br />
Armour & Co. was founded in Chicago,<br />
Illinois, by Philip Danforth Armour in 1867.<br />
The Chicago Stock Yards were the hub<br />
from which meat products originating in the<br />
Midwest were packed and transported via<br />
the new railroad system to the burgeoning<br />
populations of the eastern seaboard. Philip<br />
D. Armour’s initial operations were exclusively<br />
in the meat trade, and focused on<br />
the smoking, pickling and rendering of<br />
pork. An important by-product of the meat<br />
trade of that period was tallow – animal fat<br />
used for a variety of purposes including the<br />
manufacture of candles. Thomas Edison’s<br />
invention in 1879 of a practical light bulb for<br />
domestic use severely reduced the market<br />
for tallow candles, however, and firms such<br />
as Armour & Co. were forced to look for<br />
new applications for the by-products of their<br />
core processes.<br />
Armour moved into soap manufacture,<br />
building a soap works in 1896 to produce<br />
a laundry soap by the name of Armour’s<br />
Family Soap. This was followed by a number<br />
of soap products – Big Ben, Sail Hammer<br />
and White Flyer – for heavy-duty household<br />
jobs. In the 1900s, Amour & Co. diversified<br />
into fine toilet soaps, and by 1927 its range in<br />
this field included no less than 60 brands.<br />
The fractionation of fatty acids<br />
The by-products of meat rendering have<br />
other applications, however – in the fields<br />
of pharmaceuticals, lubricants, adhesives<br />
and leather, for instance – and in the 1920s<br />
Armour & Co. established a central research<br />
laboratory at the Chicago Stock Yards. It<br />
was here that “the father of the oleochemical<br />
industry,” Ralph H. Potts (1900-1981),<br />
developed the first commercial process for<br />
the fractionation of fatty acids, which made<br />
possible the use of fatty acids in chemical<br />
processes. While continuing soap manu-<br />
facture, Armour & Co. diversified again, this<br />
time into the production of nitrogen derivatives<br />
of fatty acids, achieving production<br />
volumes of 2 million pounds of nitriles per<br />
day by 1942. In 1939, the first commercial<br />
long-chain fatty amine was used for the<br />
improvement of potash, which has applications<br />
in the manufacture of glass and soap,<br />
and is also used as a fertilizer.<br />
During the 1940s, Armour expanded its<br />
focus once more, adding secondary amines<br />
and quarternary ammonium salts (for fabric<br />
softening) to its product range. Armour built<br />
the world’s first commercial fatty amine plant<br />
in McCook, Illinois, in 1949, along with a new<br />
research laboratory. Meanwhile, the company<br />
successfully launched its innovative<br />
Dial Deodorant Soap in 1948.<br />
Expansion abroad<br />
The 1950s saw Armour expanding abroad.<br />
Canada was the company’s first target, with<br />
the establishment of a sales office in Toronto<br />
and a new production facility in Saskatoon.<br />
In 1959, Armour entered into a joint venture<br />
with Dan Hess in Britain to fractionate<br />
fatty acids and prepare nitrogen derivatives;<br />
nine years later, in 1968, Armour acquired<br />
the entire operation. A new, modern soap<br />
facility opened in Montgomery, Illinois, in<br />
1964. Armour also entered into a joint venture<br />
with Lion Fat and Oil in Japan in the late<br />
1960s. It was during this decade that the<br />
company’s name was changed to Armour-<br />
Dial Company – a name which was to be<br />
superseded in turn by Armour-Dial, Inc.<br />
A short ride with Greyhound<br />
Kessler, a specialty ester manufacturer<br />
based in Philadelphia, was acquired in 1962.<br />
This acquisition added polyethylene glycol<br />
esters and isopropyl myristate, among<br />
other products, to Armour’s product range,<br />
and remained part of the company until its<br />
divestment to Stepan Co. in 1982. In 1969 –<br />
during the heyday of conglomerate creation<br />
on both sides of the Atlantic – Armour was<br />
acquired by Greyhound, North America’s<br />
largest intercity bus company. The following<br />
year, however, Amour’s chemical operations<br />
were spun off to Akzona.<br />
The creation of Akzona<br />
Akzona was a child of Akzo, itself created<br />
just one year before by the merger<br />
of the Dutch textile company AKU and<br />
the Dutch salt company KZO. A contraction<br />
of Akzo, North America, Akzona was the<br />
holding company for Akzo’s North American<br />
fibers, salt, chemicals, cable and pharmaceutical<br />
companies. The creation of Akzona<br />
was meant to establish an American replica<br />
of the European Akzo. Shortly afterwards,<br />
in 1973, a new manufacturing facility was<br />
opened in Morris, Illinois – the world’s largest<br />
plant at that time for the production of fatty<br />
alkyl nitrogen derivatives.<br />
Akzo America, Inc.<br />
In 1982, Akzo – which until that point had<br />
held just 55 percent of the shares in Akzona<br />
– acquired the remaining, publicly held, stock,<br />
and the holding company Akzona became a<br />
wholly owned subsidiary of Akzo. This was<br />
an important step in Akzo’s development<br />
into a global organization. Until that juncture,<br />
Akzo’s divisions had had to co-operate<br />
with Akzona’s subsidiaries. Now they were<br />
able to include Akzona’s activities directly<br />
into their own worldwide plans. Two years<br />
later, the chemicals operation was renamed<br />
Akzo Chemie America, Armak Chemicals,<br />
to be renamed Akzo Chemicals Inc. shortly<br />
thereafter. Meanwhile the holding company’s<br />
name was changed to Akzo America,<br />
Inc. The country division, Akzona, was dismantled<br />
and the American companies were<br />
transferred to Akzo’s worldwide product<br />
divisions. Akzona’s exclusively American<br />
activities were divested at the same time. In<br />
1985 American Enka was sold to BASF on<br />
account of the lack of synergy between the<br />
American fibers activities and those of the rest<br />
of the Enka group.<br />
Armour joins Henkel<br />
The soap operation of the original Armour<br />
& Co., which had been renamed The Dial<br />
Corporation in 1986, was acquired by the<br />
German consumer goods group Henkel in<br />
2004 – joining the former Nobel Industries<br />
consumer goods company Barnängen,<br />
which had entered the Henkel fold in 1992.<br />
Acquisition of Stauffer Chemical Co.<br />
It was in 1987 that Akzo America Inc. acquired<br />
the specialty chemicals division of Stauffer<br />
Chemical Co. – the biggest acquisition that<br />
Akzo had made in its history to that date.<br />
Stauffer had been founded in San Francisco<br />
in 1885 by John Stauffer Sr. (1861 - 1940).<br />
John Stauffer Sr. was born Johann Gustav<br />
Stauffer in Kaiserslautern, Germany, in 1861.<br />
He had received a good technical education<br />
and spoke five languages when he came<br />
to San Francisco as a young man of 20 to<br />
sell heavy chemicals for the Solvay Company<br />
of Belgium. He made friends easily and had<br />
the gift of attracting to him men who would<br />
work the same long hours he did – and<br />
with the same enthusiasm and dedication.<br />
Personally thrifty, he never begrudged<br />
money spent on others, and stories of his<br />
private charities are legion. In business,<br />
he believed in plowing back money into the<br />
firm and in 50-50 partnerships. “No man<br />
worth his salt wants to be on the wrong<br />
end of a 51-49 partnership,” was one of<br />
his maxims. John Stauffer Sr.’s company<br />
extracted chemicals from the brackish waters<br />
and mineral deposits on the shores of the<br />
San Francisco Bay. Established originally
The Clarks Summit site of the International Salt Company in 1980.<br />
Salt was a key driver of growth for Akzo in the 1980s and early 1990s<br />
115
116<br />
Armour and Stauffer:<br />
From Chicago to Stenungsund and back<br />
The Akzo legacy<br />
as a partnership between John and Joseph<br />
Mayer, a native of Hamburg, the company<br />
became a corporation in 1895. For 50 years<br />
Stauffer’s indomitable figure, invariably clad<br />
in a rumpled black suit, a black derby on<br />
his head and a cheroot clenched between<br />
his teeth, was a familiar part of the San<br />
Francisco business scene. He served as<br />
secretary of Stauffer Chemicals from 1895<br />
until 1935 and died in San Francisco in<br />
1940. His only son, John Stauffer Jr., was<br />
with the company for 49 years, during which<br />
time Stauffer Chemicals grew dramatically.<br />
Its initial operations had been in commodity<br />
chemicals (including sulfur, soda ash,<br />
nitric acid, sulfuric acid, muriatic acid and<br />
boric acid), but the company expanded<br />
its activities through numerous acquisitions<br />
and joint ventures and gradually<br />
developed into an international specialty<br />
chemicals company.<br />
In 1954, Hans Stauffer – the nephew of<br />
John Stauffer Sr. – was elected president of<br />
Stauffer Chemical. The same year the company<br />
moved its headquarters to New York<br />
City, where it listed on the stock exchange.<br />
Stauffer Chemical remained headquartered<br />
in New York City until it relocated<br />
to Westport, Connecticut, in 1974. During<br />
the same year, the company made its first<br />
sales to the People’s Republic of China.<br />
Two years later, and with manufacturing<br />
and sales operations all over the world,<br />
Stauffer Chemical’s sales passed the<br />
$1 billion mark.<br />
At the time of its acquisition by Akzo<br />
America in 1987, Stauffer Chemical Co.<br />
produced chemicals for a wide range of<br />
end-use markets, including agriculture,<br />
building, construction, consumer goods,<br />
food systems, furnishings, laundry and<br />
dry-cleaning, petroleum products and<br />
refining, packaging and containers, transportation,<br />
textiles and water treatment.<br />
The sales of Stauffer Chemicals Co.’s<br />
specialty chemicals division doubled the<br />
sales of Akzo Chemie America, the division<br />
of Akzo to which the newly acquired<br />
firm was assigned. John Stauffer Jr., who<br />
had overseen the company’s growth<br />
from its humble origins to international<br />
prominence, became a member of the<br />
Board of Trustees at Stanford University<br />
(Palo Alto, California), the University of<br />
Southern California and Whittier College<br />
(California). The Stauffer chemistry buildings<br />
of Stanford’s campus are named<br />
in his honor.<br />
Akzo Chemicals Inc.<br />
Approximately a year after the acquisition<br />
of Stauffer, Akzo Chemie America was<br />
reorganized into eight operating groups<br />
based on market requirements. Coincidentally<br />
its name was changed to Akzo<br />
Chemicals Inc. This reorganization allowed<br />
the company’s various chemical products<br />
with a common marketing logic to be sold<br />
via a single marketing division. The nitrogen<br />
chemicals business, formerly operating<br />
under the Armak umbrella, was divided<br />
into new marketing groups: Detergents<br />
and Personal Care, Fine and Functional<br />
Amines, and Asphalt (Highway) Chemicals.<br />
Akzo no longer operated as individual<br />
companies based on geography, but as a<br />
worldwide organization.<br />
In 1991, Akzo Chemicals was again<br />
restructured. The former Armak nitrogen<br />
products were now marketed under the<br />
Detergent and Surfactants group, with<br />
subgroups Detergent and Personal Care,<br />
Petroleum, Fine and Functional Amines and<br />
Asphalt Chemicals. The McCook research<br />
laboratory was closed, and all North<br />
American research operations were combined<br />
at the former Stauffer facility at<br />
Dobbs Ferry, New York. The plant in Sarnia,<br />
Ontario was also closed in 1991 and its<br />
former operations transferred to other<br />
North American plants.<br />
The creation of Akzo Nobel – and a<br />
new Surface Chemistry business<br />
In 1994, Akzo merged with Nobel<br />
Industries, a Stockholm-based chemical<br />
company with diverse markets in amines,<br />
paint and building chemicals, coatings and<br />
paper chemicals. Many of the non-coatings<br />
businesses were grouped together<br />
to form a new business unit, Surface<br />
Chemistry, which, like the bleaching<br />
chemicals business (Eka), became part of<br />
the Chemicals business of the new Akzo<br />
Nobel. The headquarters of the new unit<br />
was established in Stenungsund, Sweden.<br />
Various sub-business units were formed<br />
to operate on a global basis – Cleaning<br />
and Care, Industrial Surfactants, Paint and<br />
Building Additives and Fatty Acids, and<br />
various niche businesses.<br />
Reorganization and expansion<br />
In 1996 Akzo Nobel’s Surface Chemistry<br />
business unit reorganized to better direct<br />
its marketing efforts on a geographic basis.<br />
New sub-business units were formed:<br />
Cationic Applications (Europe), Surfactants<br />
America, Fatty Acids, Paint & Building<br />
Additives, and Specialty Surfactant Applications.<br />
The new Surfactants America subbusiness<br />
unit took over responsibility for<br />
South America and the Itupeva, Brazil, plant.<br />
In 1998 Akcros Chemicals, headquartered<br />
in the UK and a joint venture between<br />
Akzo Nobel and Harcross Chemicals,<br />
became a wholly owned subsidiary. During<br />
1999, the Akcros surfactant line was<br />
integrated into the Surface Chemistry<br />
business.<br />
Continued expansion into Asian markets<br />
occurred with the opening of an office<br />
in Singapore in 1997 to coordinate area<br />
marketing and secure future production.<br />
Surfactants America assumed responsibility<br />
for these activities.<br />
Akzo Nobel Surface Chemistry LLC<br />
In July 2002 – following discussions of<br />
more than 18 months – Akzo Nobel Surface<br />
Chemistry and Crompton Corporation of<br />
North America reached an agreement on<br />
the acquisition of Crompton’s Industrial<br />
Specialties business. The acquisition significantly<br />
strengthened the business unit’s<br />
position. A descendant of Witco (founded in<br />
1920 in Chicago as the Wishnick-Tumpeer<br />
Chemical Company), Industrial Specialties<br />
was the number one independent supplier<br />
of oil-field surfactants. The acquisition added<br />
plants in Houston and Fort Worth, Texas, to<br />
Surface Chemistry’s portfolio.<br />
Back to Chicago<br />
In 2005, as part of the Chemicals group’s<br />
strategic renewal process, the Surface<br />
Chemistry business was restructured to<br />
focus exclusively on surfactants, bringing<br />
with it a change in its name to Surfactants. Its<br />
headquarters was moved from Stenungsund<br />
back to Chicago – the city in which Armour<br />
had originally been founded.<br />
Following Akzo Nobel’s acquisition of ICI<br />
in January 2008, the business focus was<br />
broadened with several of ICI’s activities.<br />
To reflect this new expansion in scope,<br />
the name of the unit was changed back to<br />
Surface Chemistry.
Enka’s fibers plant in Lowland, Tennessee, during the 1960s<br />
117
118<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
9<br />
10<br />
Nitroglycerin Aktiebolaget, p. 133<br />
Vintervinken (Stockholm)<br />
Bofors, p. 137<br />
Bofors<br />
Stockholms Superfosfat, p. 143<br />
Nacka (Stockholm)<br />
Månsbo<br />
Trollhättan<br />
Ljungaverk<br />
Alby<br />
Porjus<br />
Eka, p. 149<br />
Bengtsfors<br />
Bohus<br />
Sadolin, p. 157<br />
Copenhagen<br />
Nordsjö, p. 165<br />
Malmö<br />
Sege (Malmö)<br />
Casco, p. 173<br />
Nacka (Stockholm)<br />
Kristinehamn<br />
Barnängan, p. 179<br />
Stockholm<br />
Alvik (Stockholm)<br />
Ekerö<br />
Liljeholmen (Stockholm)<br />
Stockvik<br />
Berol, p. 185<br />
Södertälje<br />
Domsjö<br />
Örnskoldsvik<br />
Mölndal (Gothenburg)<br />
Nol<br />
Stenungsund<br />
Crown Berger, p. 193<br />
London (Berger)<br />
Darwen (Crown)<br />
Morecambe<br />
marks the place on the map where the company<br />
in question (see the left-hand column) was<br />
founded.<br />
Locations named in a chapter are listed on the<br />
left under the name of the relevant company. The<br />
first location named is the place where the company<br />
was founded; all other locations are listed<br />
alphabetically.<br />
If locations cannot be distinguished from one<br />
another because they are too close together, a<br />
place already shown on the map or one that is<br />
central to those locations is given in parenthesis.<br />
Norway<br />
Denmark<br />
<br />
<br />
<br />
4<br />
2<br />
Bengtsfors<br />
Bofors<br />
<br />
<br />
<br />
<br />
Gothenburg<br />
5<br />
Copenhagen <br />
Sweden<br />
6<br />
<br />
<br />
<br />
Sundsvall<br />
<br />
<br />
Uppsala <br />
8<br />
Malmö<br />
Germany<br />
Umeå <br />
Stockholm <br />
<br />
7<br />
Södertälje 3<br />
9<br />
Luleå <br />
1<br />
Finland<br />
<br />
<br />
United Kingdom<br />
10<br />
London
119
120<br />
Stockholms Superfosfat’s Gäddviken Nacka<br />
plant in Stockholm in the early days
The Nobel legacy<br />
Nobel Industries was created in 1984, when the armaments maker<br />
Bofors acquired the chemical company KemaNobel. Swedish in origin,<br />
both Bofors and KemaNobel had historic ties to Alfred Nobel, the great<br />
19th century inventor who was the first to discover a way to detonate the<br />
explosive liquid nitroglycerin.<br />
121<br />
Overview<br />
The ascendance of Stockholms Superfosfat<br />
From Fosfatbolaget through KemaNord to KemaNobel<br />
Bofors<br />
The creation of Nobel Industries<br />
Financial crisis<br />
Merger with Akzo
122<br />
Nobel Industries<br />
The Nobel legacy<br />
After making the pivotal invention of the blasting cap in 1863,<br />
Nobel founded a company called Nitroglycerin Aktiebolaget<br />
the following year and began traveling extensively to set up<br />
nitroglycerin plants in Europe and America. His typical practice<br />
was to exchange his patent rights for a share in these<br />
new businesses, and as a result a network of companies<br />
bearing the Nobel name quickly developed. Problems with<br />
the transport and storage of nitroglycerin caused several<br />
deadly accidents over the ensuing few years, until 1867,<br />
when Nobel developed the explosive he named dynamite.<br />
With the invention of this stable form of nitroglycerine,<br />
Nobel’s businesses rapidly expanded and he soon garnered<br />
one of Europe’s largest fortunes through the substantial<br />
dividends generated by his plants in the United States,<br />
Britain, Norway, France, Italy, Spain, Finland, Austria-Hungary<br />
and elsewhere.<br />
The ascendance of Stockholms Superfosfat<br />
Alfred Nobel died in 1895. His first company, Nitroglycerin<br />
Aktiebolaget, continued in the explosives business. In 1918,<br />
Stockholms Superfosfat AB acquired a majority shareholding<br />
in this company. In 1977, it eventually acquired the<br />
remaining shares in the company, which by then was called<br />
Nitro Nobel.<br />
During the 1950s the Wallenberg banking and industrial<br />
empire acquired a significant owner-interest in the chemicals<br />
company Stockholms Superfosfat Fabriks by means of<br />
the Swedish mining and forestry products company Stora<br />
Kopparberg. This led to a radical restructuring of production<br />
at Stockholms Superfosfat Fabriks. The manufacture of<br />
nitrogen lime was terminated in 1963, and the focus during<br />
the 1960s was directed to petroleum as a raw material.<br />
Stockholms Superfosfat Fabriks became one of the major<br />
stakeholders in a petrochemicals complex which was built<br />
up around Stenungsund, on the west coast of Sweden. Net<br />
sales of the company grew by approximately 20 percent<br />
each year during the 1960s and 1970s, and the number<br />
of employees rose from approximately 2,000 to more than<br />
7,000 during this period.<br />
From Fosfatbolaget through KemaNord to<br />
KemaNobel<br />
The name of Stockholms Superfosfat AB was changed in<br />
1964 to Fosfatbolaget AB, and again in 1970 to KemaNord<br />
AB. Operations were broadened during the period after World<br />
War II, including the acquisition of Liljeholmens Stearinfabrik<br />
(1947), Casco (1964), Stockholms Benmjölsfabrik (1966),<br />
Barnängen (1973), part of Nitro Nobel (1977) and Nordsjö<br />
(1982). The company’s name was changed again in 1978<br />
following the acquisition of the rest of Nitro Nobel, this<br />
time to KemaNobel.<br />
Bofors<br />
Bofors, the other major company involved in the formation of<br />
Nobel Industries, traced its lineage back to 1646, when it was<br />
established as a hammer forge near Karlskoga, Sweden. By<br />
1894, when Alfred Nobel bought it, Bofors had become a<br />
munitions manufacturer. The company became well known<br />
for its anti-aircraft weapon, the L/70 40 mm gun, first sold<br />
in 1936. This gun was instrumental to the defense of Britain<br />
in World War II and enjoyed strong sales in NATO countries<br />
after the war. Because Sweden is a neutral country,<br />
Bofors’ weapons followed Swedish specifications that they<br />
be primarily defensive, and exports were limited by complex<br />
government policies.<br />
Government contracts for armaments made up most of<br />
Bofors’ profits, but the company had interests in other areas<br />
as well. These included a chemicals and plastics division<br />
called Bofors Nobel. A chemical engineering operation called<br />
Nobel Chematur also produced steel tools and truck axles,<br />
as well as diesel engines. In 1976, the company decided to<br />
focus exclusively on armaments and chemicals.<br />
The creation of<br />
Nobel Industries<br />
Bofors acquired KemaNobel in order to strengthen its own<br />
chemicals operations. The Swedish stock market was at a<br />
low ebb during the 1970s, but financier Erik Penser optimistically<br />
gambled on a brighter future. The market took a<br />
sudden upward swing after a devaluation of the Swedish<br />
krona in 1982, and Penser steadily invested his profits in<br />
Bofors until he ultimately controlled 40 percent of the company.<br />
He then set his sights on KemaNobel, the chemicals<br />
company controlled by the Wallenberg family. After offering<br />
an above-market price for a majority share in KemaNobel,<br />
he combined it with Bofors and named the new entity Nobel<br />
Industries. The new company had sales of $1 billion.<br />
Nobel Industries expanded rapidly, making many acqui-<br />
sitions in the fields of industrial paints, chemicals, adhesives,<br />
electronics and consumer goods. When Erik Penser<br />
formed Nobel Industries in 1984, armaments sold by Bofors<br />
accounted for 34 percent of the new company’s total sales,<br />
as well as 39 percent of its operating profits. Three years<br />
later, 80 percent of the company’s sales and 43 percent of<br />
its profits came from paints, adhesives, explosives, plastics,<br />
chemicals, and pulp and paper products.<br />
During this period, Nobel Industries was rocked by the Bofors<br />
scandal, which arose from an armaments deal with India.<br />
Suspicions extended to the highest echelons of Swedish<br />
and Indian politics, but the company was later cleared<br />
of all accusations.<br />
Financial crisis<br />
Nobel Industries continued to expand its other operations,<br />
making major acquisitions in the fields of paper<br />
and bleaching chemicals (Eka AB 1986), ethylene amines<br />
(Berol AB 1988), paints and adhesives (the Danish Sadolin<br />
& Holmblad A/S 1987 and the British Crown Berger Ltd.<br />
1990) and consumer goods. In 1986, the civilian explosives<br />
activities of Nitro Nobel AB, a part of the former KemaNobel,<br />
were divested.<br />
By 1991, however, the debt resulting from these acquisitions<br />
threatened to swamp Nobel Industries. Moreover,<br />
Nobel Industries had offered an unlimited guarantee to the<br />
creditors of a financial service company, Gamlestaden,<br />
which was also owned by Erik Penser. When Gamlestaden<br />
failed in the summer of 1991, Nobel Industries could not<br />
cover its guarantee. On the verge of financial collapse,<br />
Nobel Industries was – somewhat controversially – taken<br />
over by the Swedish bank Nordbanken. Penser lost his<br />
entire 67 percent holding in Nobel, while trading in Nobel<br />
Industries shares was suspended for four days. With<br />
Nordbanken as its major shareholder, Nobel Industries<br />
recovered, but it lost almost $1 billion. Prompted by the<br />
scandals of previous years, the company’s decision to sell<br />
its defense activities brought some relief from the burden<br />
of this debt. The sale of its entire consumer goods division<br />
to the German chemical group Henkel followed in 1992.<br />
Paint, adhesives and chemicals became the main activities<br />
of Nobel Industries.
Nobel Industries<br />
The Nobel legacy<br />
Merger with Akzo<br />
Restructuring subsequently led to ownership being transferred<br />
to the state-owned Securum, who then sold the<br />
shares to Akzo in 1994. The merger was the largest in<br />
Europe that year and created one of the ten biggest chemical<br />
companies in the world. The company’s name was<br />
changed to Akzo Nobel after the integration of Nobel’s<br />
operations into Akzo.<br />
During its final year of independence, Nobel Industries<br />
generated net sales of about SEK 23 billion and employed<br />
approximately 20,000 people.<br />
123
124<br />
Alfred Nobel as a young man in 1853.<br />
Alfred was a mature, unusually intelligent<br />
youth, but he was also a dreamer and an<br />
introvert who preferred to be by himself
The Nobel legacy<br />
The themes of invention, entrepreneurship and industrialism run<br />
through all the chapters of the <strong>AkzoNobel</strong> story, and many of its constituent<br />
companies have been founded by remarkable men. More than<br />
a century since his death, it is still Alfred Nobel, however, who towers<br />
above them all – not simply because of the Nobel Foundation, which he<br />
established through a provision in his will, but more essentially because<br />
of his own talents, creativity and personal achievements.<br />
125<br />
Overview<br />
Success in Russia – and poverty again<br />
The incessant traveler<br />
The inventor<br />
The entrepreneur<br />
The industrialist<br />
A lonely death<br />
Alfred Nobel’s will<br />
The Nobel Foundation<br />
The Nobel Prize
126<br />
Alfred Nobel:<br />
Inventor, entrepreneur and industrialist<br />
The Nobel legacy<br />
Alfred Nobel was born in 1833, the son of Immanuel Nobel,<br />
a self-taught master builder from Gävle. Immanuel was possessed<br />
of great drive and initiative, and he also became a<br />
manufacturer and inventor. Unfortunately in 1837, when<br />
Alfred was just four years old, he went bankrupt and was<br />
obliged to flee abroad to escape his creditors. Alfred and his<br />
brothers were brought up by their mother in Stockholm for<br />
several years, living in abject poverty and permanent insecurity,<br />
until Immanuel – who had started a foundry and engineering<br />
workshop in St. Petersburg – was sufficiently welloff<br />
to be able to reunite his family under one roof in Russia.<br />
Success in Russia – and poverty again<br />
Nobel and his brothers were taught at home by private<br />
tutors. Following a two-year study tour which included a visit<br />
to New York, Alfred commenced work – like his brothers<br />
– in his father’s company, Fonderies & Ateliers Mécaniques<br />
Nobel & Fils. The company grew into a large engineering<br />
works which increasingly focused on producing weaponry,<br />
and by the mid-1850s it employed more than a thousand<br />
people. Specializing in underwater mines, Immanuel Nobel’s<br />
company became a major supplier to the Russian army<br />
during the Crimean War, but it went bankrupt when the war<br />
ended and orders for armaments dried up.<br />
The incessant traveler<br />
Nobel himself returned to Sweden in 1863, at the age of<br />
30. He soon moved to Hamburg – which became the hub<br />
of his activities for ten years – and then to Paris, the intellectual<br />
and cultural capital of 19th century Europe, where,<br />
as he noted, “even the mongrel in the street has an air of<br />
civilization.” It was from Paris that Alfred Nobel built up his<br />
multinational empire. He devised numerous inventions and<br />
set up various businesses that served both civil and military<br />
purposes, as engineers blasted their way through mountains<br />
to create the great railway networks of the late 19th century<br />
and countries built up massively equipped modern armies.<br />
After his competitors for contracts from the French Army had<br />
managed to cast doubts on his loyalty, he moved in 1891<br />
from Paris to San Remo in Italy. In the winter of 1893-94,<br />
three years before his death, Alfred Nobel bought the<br />
Bofors company in Värmland in the west of central Sweden<br />
and moved into the director’s manor. “Things will get lively<br />
in Bofors as soon as we get real results from current inno-<br />
vations,” he wrote soon afterwards. “It would be nice to<br />
see old Sweden competing in armaments with Germany<br />
and Great Britain.” Nobel died in 1896, however, worn out<br />
by incessant work and travel – immensely rich but also a<br />
lonely man, unmarried and estranged from his family.<br />
The inventor<br />
“If I have 300 ideas in a year and just one turns out to work,<br />
I am satisfied,” Alfred once wrote. During the course of his<br />
life he was, in fact, to have no fewer than 355 patent applications<br />
granted. His most important inventions were all based<br />
on nitroglycerin – a viscous, highly explosive liquid which<br />
had been discovered in 1847 by the Italian Ascanio Sobrero<br />
(1812-1888). Nobel’s great contribution lay in developing<br />
methods of making it usable in practice. His main inventions<br />
were the blasting cap (later known as the detonator) (1863),<br />
dynamite (1867), blasting gelatine (1875) and the smokeless<br />
gunpowder ballistite (1887).<br />
Nobel began his experiments with nitroglycerin in 1862, with<br />
the aim of developing a detonator which was safe to handle,<br />
but still allowed full use of all the inherent explosive effect<br />
of the liquid. He achieved this objective in 1864, with the<br />
creation of a percussion cap consisting of mercury fulminate<br />
in a small copper sleeve containing in itself a clamped fuse:<br />
it became the standard detonator.<br />
During the 1860s a series of serious accidents involving<br />
nitroglycerin attracted enormous publicity – for example,<br />
Nobel’s own factory at Krümmel was destroyed by an<br />
explosion. Nobel experimented with admixtures of various<br />
porous substances to absorb the nitroglycerin and make it<br />
safer to handle – coal dust, sawdust, cement and brick dust.<br />
Eventually he tried out a mixture of 75 percent nitroglycerin<br />
and 25 percent kieselguhr, a clayey mineral, which could be<br />
pressed into cartridges and wrapped in paper tubes. And so<br />
dynamite was born.<br />
A quarter of dynamite’s composition was inert, however, and<br />
so Nobel set about finding a new compound which could be<br />
mixed with nitroglycerin and also be involved in the explosion.<br />
After considerable experimentation, he found this in the<br />
form of nitrocellulose, created by adding collodion cotton (gun<br />
cotton) dissolved in ether alcohol to nitroglycerin. Combined<br />
with pure nitroglycerin, this wholly original blasting gelatine<br />
was initially marketed as Extradynamit.<br />
Ballistite, the fourth of Nobel’s major inventions, was a<br />
smokeless gunpowder made of roughly equal parts of<br />
nitroglycerin and gun cotton with the addition of 10 percent<br />
camphor. The two major substances – each highly explosive<br />
– created a new kind of gunpowder which was not highly<br />
explosive, but which on ignition burned with near-mathematical<br />
precision in concentric layers. Nobel’s contemporaries<br />
regarded his invention, which replaced black gunpowder, as<br />
utterly remarkable.<br />
Nobel had little time for orders and titles, but he did value<br />
scientific recognition of his work. He was elected a member<br />
of the Swedish Royal Academy of Sciences in 1884 and<br />
was awarded an honorary doctorate by the University of<br />
Uppsala in 1893.<br />
The entrepreneur<br />
Alfred Nobel began his career as an entrepreneur by trying<br />
to make nitroglycerin a commercial product. The first manufacture<br />
of his “blasting oil” took place in a shed in Stockholm<br />
where Nobel’s destitute father and family were lodging. While<br />
being used for this purpose in 1864, the shed blew up, killing<br />
Alfred’s younger brother Emil and four other people.<br />
For all its tragedy, this accident – to which the press of the<br />
day devoted considerable attention – was a more convincing<br />
demonstration of the explosive power of Nobel’s blasting oil<br />
than all his test explosions for potential clients. The orders<br />
suddenly flooded in, and only a month later, the Swedish State<br />
Railways started using “Nobel’s patent blasting oil” to excavate<br />
a new tunnel. In the same month, October 1864, Nobel<br />
joined forces with the wealthy Stockholm investor Johan<br />
Wilhelm Smitt to found his first company, Nitroglycerin AB, to<br />
manufacture and market the new product. A year later he set<br />
up Alfred Nobel and Co. in Germany for the same purpose,<br />
again using funds from local sponsors. Nobel was to repeat<br />
this successful formula in many countries around the world<br />
– finding local backers with funds and influence, building a<br />
plant in a secluded spot, obtaining the necessary licenses,<br />
avoiding the use of banks and lawyers, and keeping his own<br />
financial investment to a minimum. His entrepreneurship was<br />
enhanced by the showmanship with which he demonstrated<br />
the properties of his new products. Nobel was always careful<br />
to invite the press to his demonstrations, at which he displayed<br />
the safe handling properties of dynamite by throwing<br />
boxes of it from cliff tops before detonating it to create massive<br />
explosions in solid rock.<br />
Nobel’s attempts to penetrate the U.S. market were less<br />
successful, but he set up factories in Great Britain (1871),
Alfred Nobel’s laboratory in San Remo, Italy. He also had his own<br />
laboratory at Björkborn in Bofors, Sweden
128<br />
Alfred Nobel:<br />
Inventor, entrepreneur and industrialist<br />
The Nobel legacy<br />
Spain (1871), Italy (1873) and Switzerland (1873). Despite<br />
his enormous energy, Nobel was, however, a cautious<br />
businessman who was always at pains to avoid personal<br />
liability for the activities of his various companies and whose<br />
own investment was usually limited to the provision of his<br />
patents. With his father’s two bankruptcies always at<br />
the back of his mind, he invested the massive fortune he<br />
acquired in low-risk securities; the significant exception<br />
to this pattern was the investment he made in his<br />
brothers’ struggling oil company in Russia – an investment<br />
that he was to regret deeply.<br />
The industrialist<br />
Alfred Nobel founded his international industrial empire<br />
during the years 1865 -1876, between the ages of 32 and<br />
40. By 1873 he was a partner in 16 dynamite factories in<br />
14 countries. Many of them were in keen competition, not<br />
only with other manufacturers, but also with other Nobel<br />
companies. Alfred therefore consolidated them into two<br />
holding companies: the Nobel Dynamite Trust Co., which<br />
was formed for the British and German companies in<br />
1886, and Société Central de Dynamite, created for the<br />
companies in Switzerland, Italy, France and Spain in 1887.<br />
Thus the first truly multinational companies in history – companies<br />
owning or controlling manufacturing facilities outside<br />
the country in which they have their head office – are<br />
associated with Nobel.<br />
Nobel traveled and corresponded tirelessly to set up<br />
and maintain this empire, which included plants in<br />
Ardeer, Turin, Paulilles, Vienna, Hamburg and Stockholm.<br />
He spent several hours a day at his desk, and would write on<br />
average 20 to 30 letters a day, expressing himself with equal<br />
facility in Swedish, Russian, German, French and English.<br />
When traveling by train, he wrote with a portable copying<br />
machine on his lap.<br />
Despite his success, Alfred was a shy man. Intensive work<br />
and travel did not leave much time for a private life. At the age<br />
of 43 he was feeling like an old man. At this time he advertised<br />
in a newspaper “Wealthy, highly-educated elderly gentleman<br />
seeks lady of mature age, versed in languages, as secretary<br />
and supervisor of household.” The most qualified applicant<br />
turned out to be an Austrian woman, Countess Bertha<br />
Kinsky. Nobel was attracted to her and may well indeed have<br />
fallen in love with her, but Bertha decided to return to Austria<br />
to marry Count Arthur von Suttner after working for Nobel<br />
for only a short time. There followed a long and unhappy love<br />
affair with Sophie Hess – an uneducated Austrian flowerseller<br />
23 years his junior whom he met in a flower shop in<br />
Baden Bei Wien shortly after the departure of Bertha<br />
Kinsky. Alfred’s attempts to encourage Sophie to educate<br />
herself and better her social standing proved fruitless,<br />
leading to much frustration on his part, while Sophie<br />
herself resented her role as a kept mistress who was always<br />
being urged to change her nature. Their affair came to a<br />
definitive end in 1891.<br />
A lonely death<br />
Alfred Nobel’s young employee Ragnar Sohlmann, who<br />
was probably the person who knew him best, wrote of the<br />
great industrialist: “He was hardly ever a democrat. He had<br />
much goodwill for, and considerate interest in, the workers<br />
in his factories, but there was never time for any personal<br />
contact. He was a very generous master to his servants,<br />
but he was a stickler for etiquette, and personal closeness<br />
was inconceivable, even when, ill and suffering, he felt the<br />
lack of it.” Nobel in fact suffered from depression as well<br />
as migraine for much of his life. Explaining his choice to<br />
continue working as a businessman in later life rather than<br />
retiring to devote himself to the science which he regarded<br />
as his true calling, he wrote: “You get into a certain sphere<br />
of activity and if you then have a trace of that distorted<br />
quality known as a sense of duty, you toil until you drop.”<br />
On December 10, 1896, what Nobel had most feared<br />
happened – he died alone in Italy, in the company of only a few<br />
paid servants.<br />
Alfred Nobel’s will<br />
The Björkborn Manor was Alfred Nobel’s home during his<br />
period at Bofors. After his death, it came to be regarded as<br />
his final permanent domicile. This was decided after a French<br />
court had ruled – against the wishes of many of Nobel’s relatives<br />
– that he had not been resident in Paris at the time of<br />
his death. The court ruling was remarkable in that it was<br />
based on a very old legal text which stated that the domicile<br />
of a farmer was the location at which he stabled his horses.<br />
And it was at Björkborn that all three of Nobel’s Russian<br />
carriage horses had been stabled at the time of his death.<br />
The decision of the French court was of critical significance<br />
for the judicial processing of Alfred Nobel’s will. He left one<br />
million Swedish crowns to be distributed among his relatives.<br />
The remainder of the complete fortune – with the exception<br />
of three villas at various locations in Europe – went, as Nobel<br />
had desired, to create a fund which became the basis of<br />
the Nobel Prize – the largest single donation ever to have<br />
been made, amounting to more than SEK 31 million. Many<br />
people believe that the French court would hardly have<br />
approved the will and its donations in the way that Karlskoga<br />
District Court did.<br />
The Nobel donation met with extremely mixed reactions.<br />
It was commonly thought that he had behaved in an “un-<br />
Swedish” manner by giving the donation such a clear international<br />
perspective. With hindsight, everyone today realizes<br />
that Alfred Nobel, on the contrary, created unprecedented<br />
goodwill for Sweden through his donation.<br />
The Nobel Foundation<br />
The Nobel Foundation, established in 1900, is a private<br />
institution based on provisions in Alfred Nobel’s will. The<br />
Foundation manages the assets made available through the<br />
will for the award of Nobel Prizes. It represents the Nobel<br />
Institutions externally and administers informational activities<br />
and arrangements surrounding the presentation of<br />
Nobel Prizes. The Foundation also administers the Nobel<br />
Symposium Program.<br />
The Nobel Prize<br />
Every year since 1901, Nobel Prizes have been awarded for<br />
achievements in physics, chemistry, physiology or medicine,<br />
literature and for peace. The Nobel Prize is an international<br />
award administered by the Nobel Foundation in Stockholm,<br />
Sweden. In 1968, Sveriges Riksbank established The<br />
Sveriges Riksbank Prize in Economic Sciences in Memory of<br />
Alfred Nobel, founder of the Nobel Prize. Each prize consists<br />
of a medal, a personal diploma, and a cash award.
Alfred Nobel:<br />
Inventor, entrepreneur and industrialist<br />
The Nobel legacy<br />
Some surprising facts<br />
about Nobel laureates<br />
Up until 2007, 777 individuals and 20 organizations had been awarded the Nobel Prize.<br />
Some Nobel laureates and organizations have received the prize more than once<br />
34 Nobel laureates to date have been women; the remaining 743 were men.<br />
To date, the youngest Nobel laureate is Lawrence Bragg, who was just 25 years old<br />
when he received together with his father the Nobel Prize for Physics 1915.<br />
The oldest Nobel laureate to date is Leonid Hurwicz, who was 90 years old when he<br />
was awarded the 2007 Nobel Prize for Economics.<br />
Two Nobel laureates have declined their Nobel Prize. Jean-Paul Sartre, awarded the 1964<br />
Nobel Prize for Literature, declined because he had consistently declined all official honors.<br />
Le Duc Tho was awarded the 1973 Nobel Peace Prize jointly with U.S. Secretary of State<br />
Henry Kissinger for negotiating the Paris Peace Accords. Le Doc Tho said that he was not<br />
in a position to accept the Prize, citing the situation in Vietnam as his reason.<br />
Four Nobel laureates have been forced by authorities to decline a Nobel Prize.<br />
Adolf Hitler forbade three German Nobel laureates, Richard Kuhn, Adolf Butenandt and<br />
Gerhard Domagk, from accepting their Prizes. All of them could later receive the Nobel Prize<br />
Diploma and Medal, but not the prize money. Boris Pasternak, the 1958 Nobel laureate for<br />
Literature, initially accepted but was later coerced by the authorities of the Soviet Union,<br />
his native country, to decline.<br />
The work of the International Committee of the Red Cross (ICRC) has been honored by a<br />
Nobel Peace Prize three times. The founder of the ICRC, Henry Dunant, was additionally<br />
awarded the first Nobel Peace Prize in 1901.<br />
Linus Pauling is the only person to have been awarded two unshared Nobel Prizes:<br />
the 1954 Nobel Prize for Chemistry and the 1962 Nobel Peace Prize.<br />
Alfred Nobel’s last will<br />
and testament<br />
The whole of my remaining realizable estate shall be dealt with in the following way: the<br />
capital, invested in safe securities by my executors, shall constitute a fund, the interest on<br />
which shall be annually distributed in the form of prizes to those who, during the preceding<br />
year, shall have conferred the greatest benefit on mankind. The said interest shall be divided<br />
into five equal parts, which shall be apportioned as follows: one part to the person who<br />
shall have made the most important discovery or invention within the field of physics; one<br />
part to the person who shall have made the most important chemical discovery or improvement;<br />
one part to the person who shall have made the most important discovery within the<br />
domain of physiology or medicine; one part to the person who shall have produced in the<br />
field of literature the most outstanding work in an ideal direction; and one part to the person<br />
who shall have done the most or the best work for fraternity between nations, for the<br />
abolition or reduction of standing armies and for the holding and promotion of peace<br />
congresses. The prizes for physics and chemistry shall be awarded by the Swedish<br />
Academy of Sciences; that for physiological or medical work by the Caroline Institute in<br />
Stockholm; that for literature by the Academy in Stockholm, and that for champions of<br />
peace by a committee of five persons to be elected by the Norwegian Storting. It is my<br />
express wish that in awarding the prizes no consideration whatever shall be given to the<br />
nationality of the candidates, but that the most worthy shall receive the prize, whether<br />
he be a Scandinavian or not.<br />
Paris, 27 November, 1895<br />
Alfred Bernhard Nobel<br />
129
130<br />
The opening page of Alfred Nobel’s will.<br />
This document revoked his previous wills of<br />
1889 and 1893 and created the basis for the<br />
Nobel Foundation and the Nobel Prizes.<br />
Nobel had an aversion to lawyers and rarely<br />
made use of them when drafting legal documents.<br />
The vague wording of his will was to<br />
lead to protracted disagreements regarding<br />
its provisions in the wake of his death
Alfred Nobel in 1885. He allowed him self to be<br />
photographed only with great reluctance<br />
131
132<br />
Nitro Nobel’s offices in the Aspudden area of<br />
Stockholm during the 1960s
The Nobel legacy<br />
Nitroglycerin Aktiebolaget was originally founded by Alfred Nobel at<br />
Vinterviken, just outside Stockholm, in 1864. Alfred’s innovative applications<br />
for the newly discovered substance nitroglycerin accelerated<br />
the advance of the great age of industrial construction. The rapid completion<br />
of railways, tunnels, canals, ports and other major building<br />
projects was made possible by the safe handling properties and massive<br />
blasting power of this explosive, which was many times more powerful<br />
than gunpowder.<br />
133<br />
Overview<br />
Disasters and innovations<br />
The creation of KemaNobel
134<br />
Nitroglycerin Aktiebolaget:<br />
Nitro Nobel, an explosive history<br />
The Nobel legacy<br />
Nobel had established laboratories for<br />
quality control, experimentation and development<br />
work at his larger industrial works.<br />
He was based outside Sweden from the<br />
end of the 1860s, initially in Krümmel near<br />
Hamburg, then in Ardeer, Scotland, and<br />
subsequently for many years in Paris. Nobel<br />
had well-equipped laboratories and qualified<br />
staff at his disposal at all of these locations.<br />
During the early 1880s, Nobel began<br />
employing handpicked specialists – physicists,<br />
chemists and engineers – at his<br />
laboratories around Europe to work on the<br />
ideas and hunches that he had been playing<br />
around with in his mind for years. Continually,<br />
new ideas would occur to him. Countless<br />
memos – many of them several pages long,<br />
and written on the letterheaded stationery<br />
of some of Europe’s leading hotels – have<br />
been preserved in which Nobel made notes<br />
on current projects in his laboratories. At the<br />
peak of these activities, in the 1890s, Alfred<br />
Nobel’s laboratories employed around 75 to<br />
100 scientists.<br />
Disasters and innovations<br />
Starting with the manufacture of nitroglycerin,<br />
Nobel’s first company – Nitroglycerin<br />
Aktiebolaget – went on to produce dynamite,<br />
blasting gelatine and smokeless gunpowder<br />
during his lifetime. It also suffered several<br />
major explosions – in 1868, 1874, 1893 and<br />
1906 – which claimed a total of 33 lives.<br />
Besides serving the growing engineering<br />
and construction sectors, Nitroglycerin<br />
Aktiebolaget’s products were used to<br />
produce ammunition used by both the<br />
military and hunters. Innovations continued<br />
after the death of Nobel, most notably the<br />
launch of borenit, a form of dynamite rendered<br />
more stable at low temperatures<br />
by the addition of nitroglycol (1927), an<br />
improved and less moisture-sensitive form<br />
of nitrolit (1934), and securit, a new nitroglycerin-free<br />
explosive (1957).<br />
Early in 1894, Nobel had reached an<br />
agreement with Kjellberg & Söner to<br />
acquire Bofors. He had found the perfect<br />
place for his ballistic experiments with<br />
new kinds of gunpowder and ammunition.<br />
Shortly thereafter, weapons technicians in<br />
the Swedish military expressed their wish<br />
that Nitroglycerin Aktiebolaget’s production<br />
of gunpowder (Nobelkrut) be moved from<br />
Vinterviken to Bofors, in order to facilitate<br />
continuous product testing. In 1898, two<br />
years after Alfred Nobel’s death, this idea<br />
was carried out. A new company named<br />
AB Bofors Nobelkrut was founded by<br />
Nitroglycerin Aktiebolaget, AB Bofors and<br />
Alfred Nobel’s estate.<br />
In 1915, Nitroglycerin Aktiebolaget purchased<br />
Gyttorps Sprängämnes AB, its<br />
toughest competitor in the Swedish explosives<br />
industry. This made it possible to<br />
gradually move the increasingly crowded<br />
Vinterviken factories to Gyttorp, a village<br />
in central Sweden. In the summer of 1921,<br />
dynamite production at Vinterviken ceased,<br />
although for many years the buildings were<br />
used as warehouses.<br />
On November 13, 1918 – two days after<br />
the Armistice had been signed – a letter<br />
arrived at the head office of Nitroglycerin<br />
Aktiebolaget from Stockholms Superfosfat<br />
Fabriks AB stating that “as you are probably<br />
aware, the undersigned company<br />
has acquired the majority of the shares in<br />
Nitroglycerin AB.” Rumors about a takeover<br />
had already been flying in December 1917.<br />
At the time, Stockholms Superfosfat officially<br />
denied these claims, but they were probably<br />
already large shareholders and continued to<br />
purchase shares. On November 28, 1918,<br />
there was an extra shareholders meeting,<br />
requested by Stockholms Superfosfat<br />
Fabriks AB, and a new board was appointed<br />
for Nitroglycerin Aktiebolaget.<br />
Nitroglycerin Aktiebolaget continued to<br />
grow. World War II presented both difficulties,<br />
in the way of scarcity of raw materials,<br />
but also opportunities. In 1940, the Swedish<br />
government invested in a new factory run by<br />
Nitroglycerin Aktiebolaget for the production<br />
of blasting caps and explosive charges.<br />
Nitrolit, a form of dynamite requiring less of<br />
the scarce raw materials glycerin and glycerol,<br />
was developed and became a success<br />
both in the civilian and military markets.<br />
Sales of nitrolit grew from 538 tons in 1939<br />
to 6,737 tons in 1943.<br />
In 1965, Nitroglycerin Aktiebolaget changed<br />
its name to Nitro Nobel AB, based on the<br />
generally used shortened name Nitro and<br />
the surname of founder Alfred Nobel.<br />
The creation of KemaNobel<br />
From 1973 to 1977 KemaNord (the new<br />
name of Stockholms Superfosfat Fabriks<br />
since 1970) increased its holding in Nitro<br />
Nobel. The main attraction was the international<br />
scope of Nitro Nobel’s business,<br />
while the management also saw potential<br />
for synergy in the merging of the chemicals<br />
operations of the two companies.<br />
By 1977, Nitro Nobel had been fully integrated<br />
into KemaNord.<br />
To mark the creation of the new company<br />
– as well as reflecting the increased diversity<br />
and internationalization of activities compared<br />
with those associated with the original<br />
names – the company name was changed<br />
to KemaNobel. When the merged group’s<br />
new name was announced in 1978, the following<br />
advertisement was published:<br />
‘KemaNord and Nitro Nobel have merged.<br />
Sweden’s now largest chemicals group has<br />
changed its name to KemaNobel. The group<br />
will now be even more competitive internationally.<br />
KemaNobel will have a turnover of<br />
over SEK 2.5 billion, 7,000 employees, and<br />
production facilities in some 10 countries.<br />
KemaNobel. The name represents a whole<br />
group of companies that manufacture every-<br />
thing from consumer goods to explosives,<br />
chemicals and plastics.<br />
WE BELIEVE IN OUR FUTURE<br />
Alfred Nobel’s first company was founded<br />
in 1864. That was Nitro Nobel. The chemist<br />
Oscar Carlson and newspaper magnate Lars<br />
Johan Hierta founded KemaNord in 1871.<br />
Both companies have demonstrated their<br />
vitality for more than one hundred years.<br />
As KemaNobel, we are continuing our traditions<br />
and know-how with the world as our<br />
market. We believe in our future.’
A range of explosives produced by<br />
Nitro Nobel AB. One of Alfred Nobel’s great<br />
achievements was to make the handling and<br />
transportation of explosives considerably safer<br />
than it had been in the early 19th century<br />
135
136<br />
The Bofors Cannon Works in the mid-1890s
The Nobel legacy<br />
The name Bofors is inextricably linked with the legendary Bofors ® gun<br />
of World War II. The company’s traditions stem from much further back,<br />
however, as does the history of armaments manufacture in Sweden.<br />
137<br />
Overview<br />
Bofors steel<br />
The first Bofors cannon<br />
The combination of metallurgical, engineering and chemical expertise<br />
Focus on weaponry – and innovation<br />
The Bofors ® 40 mm gun<br />
The Bofors scandal and divestment by Nobel Industries<br />
The Björkborn Foundation
138<br />
Bofors:<br />
From a rural iron forge to a legendary weapon<br />
The Nobel legacy<br />
The origins of Bofors can be traced back to<br />
a foundry in the Swedish countryside where<br />
forests, mountains and water courses created<br />
the ideal conditions for working iron<br />
ore. On November 24, 1646, Paul Hossman<br />
was granted a royal license for two foundry<br />
hammers on the Bo River (now known as<br />
the Tims River). He named the iron foundry<br />
he built there Bofors (based on the Swedish<br />
name of the river, Bo forsen, “fors” meaning<br />
a fast-flowing river). The foundry’s link with<br />
artillery was only to develop in the late 19th<br />
century, however, by which time Bofors<br />
had become one of the largest iron works<br />
in Sweden.<br />
The manufacture of cannon in Sweden<br />
began in the first half of the 17th century and<br />
drew on the country’s extensive expertise<br />
in the handling of iron ore. Sweden soon<br />
became one of Europe’s top exporters of<br />
cannon, capitalizing on the continuous wars<br />
between the superpowers of the period, as<br />
well as on the need of merchant vessels for<br />
defense against attack by pirates.<br />
AB Bofors Nobelkrut<br />
Bofors steel<br />
By the late 19th century, the Swedish weapons<br />
industry – which had been based on the<br />
use of pig iron – was struggling to keep up<br />
with the demand for more technologically<br />
advanced weapons and, therefore, the more<br />
advanced materials needed to make them.<br />
Its end appeared to have come when the<br />
Swedish government purchased several field<br />
artillery pieces from the German manufacturer<br />
Krupp in 1879. Just as this news was<br />
being published, however, news also spread<br />
that the Bofors iron mill in Värmland had successfully<br />
produced a dense and cavity-free<br />
molded steel of the same quality as the forged<br />
cannon steel used by Krupp, the renowned<br />
armaments manufacturer of the day.<br />
The new steel supplied by Bofors, made<br />
according to the so-called Martin process,<br />
was a sensation, endowing the material with<br />
a completely new homogeneity and strength.<br />
Bofors’ new Martin furnace was commissioned<br />
in 1878 and it rapidly turned out<br />
AB Bofors Nobelkrut manufactured explosives for both military and industrial purposes.<br />
Industrial explosives, which were used for blasting through rocks in major engineering<br />
projects such as railway construction, included Bofors Dynamite and Nobel Dynamite.<br />
The company also manufactured Nobelite, a wholly plastic explosive, and Boforsite,<br />
a safety explosive. Key components in these products included nitrocellulose and<br />
nitroglycerin powder, which the Bofors Nobel Explosives Company manufactured for<br />
its own use. Another innovation of the company was flameless powder, for military use<br />
by night – the lack of a flame made it much harder to locate the source of the firing.<br />
more than 200 rear-loading cannon – the<br />
first Swedish cannon to be made of steel. In<br />
1882, Bofors set up its own full-scale plant for<br />
the manufacture of cannon, thus making the<br />
move from steel-making to armaments manufacture.<br />
Setting up a cannon plant was much<br />
more complex than running a steel mill, but<br />
Bofors had an exclusive agreement to supply<br />
the Swedish government, and could produce<br />
cannon that were at least as good as those<br />
made by Krupp but at much lower cost.<br />
The first Bofors cannon<br />
The first order for a cannon from the new<br />
plant was placed by the Swedish navy on<br />
November 20, 1883. This was the initial step<br />
on Bofors’ path to becoming one of the<br />
most notable weapons manufacturers in the<br />
modern world.<br />
Alfred Nobel played a critical role in the company’s<br />
development. He acquired Bofors in<br />
1894 and owned it until his death. Bofors<br />
possessed expertise in metallurgy and<br />
mechanical engineering, while Nobel brought<br />
with him not only much-needed capital, but<br />
also unique chemical and technical skills,<br />
coupled with a vision for the future of armaments<br />
manufacture. An international entrepreneur,<br />
Nobel was never infected by the<br />
intense nationalism that led to a worldwide<br />
wave of re-armament during this period,<br />
but he did have a lifelong fascination for the<br />
technical problems of weaponry. This does<br />
not appear to have been at odds with his<br />
desire for peace. Alfred Nobel wanted to<br />
create weapons that were so effective that<br />
they made war a practical impossibility.<br />
The combination of metallurgical,<br />
engineering and chemical expertise<br />
Arent Silfversparre and Carl Danielsson<br />
played a key role in improving the early<br />
Bofors cannon, making the barrel lighter<br />
and stronger, the firing mechanism faster,<br />
and the complete piece easier to maneuver.<br />
Silfversparre’s most significant innovation
Rolling gunpowder at Bofors at the time when Alfred Nobel turned the<br />
factory into the most important arms manufacturer in Sweden
140<br />
Bofors:<br />
From a rural iron forge to a legendary weapon<br />
The Nobel legacy<br />
was the ogival locking screw. This idea was revolutionary<br />
for its time, and solved the problem of achieving effective<br />
sealing of the rear part of the gun. It was also at this time that<br />
Bofors produced the first artillery piece in which the recoil<br />
was fully absorbed by the carriage.<br />
Many of the ideas that saw the light of day during the<br />
Silfversparre-Danielsson epoch undoubtedly bear the hallmark<br />
of Alfred Nobel. It was, for example, Nobel’s idea that<br />
a gunpowder mill should be established in association with<br />
the artillery industry. This allowed the artillery designer and<br />
the gunpowder manufacturer to develop complete systems<br />
based on metallurgical, engineering and chemical expertise.<br />
The results of this collaboration soon became apparent.<br />
Focus on weaponry – and innovation<br />
All weapons manufacture involves the interplay between<br />
an action and a reaction. For Bofors, this meant the battle<br />
between artillery and armored plate. In 1911, the company<br />
won a contract to deliver both arms and armor for<br />
the Swedish F-boats (a class of submarines). This created<br />
a dilemma, however, for test-firing Bofors artillery against<br />
Bofors armor could never be fully successful. Either the<br />
projectile was so effective that it ruptured the armor, or the<br />
armor was so strong that it resisted the projectile. Both scenarios<br />
occurred and it was not long before Bofors concentrated<br />
on the development of weapons alone.<br />
World War I opened up many significant new markets<br />
for Bofors, only to trigger a crisis once peace came and<br />
demand for new weaponry dried up. But the company was<br />
undeterred. The development of aerial warfare stimulated<br />
the design of new artillery systems that could meet the<br />
threat from the air. Effective battles against armored vehicles<br />
required armor-piercing shells. And warfare was becoming<br />
ever more mobile, which made it necessary to motorize the<br />
artillery pieces themselves. The expertise of the designers,<br />
metallurgists and other specialists was tested to its limits.<br />
The Bofors ® 40 mm gun<br />
Between the world wars, the driving force for Bofors’ revolutionary<br />
designs was Victor Hammar, who, together with<br />
Emanuel Jansson, created the Bofors ® 40mm mobile antiaircraft<br />
gun – the first automatic artillery piece with continuous<br />
loading. The Bofors ® 40mm gun was one of the most<br />
remarkable pieces in the history of weaponry, an archetype<br />
comparable to the Mauser ® rifle, the Colt ® revolver and the<br />
Browning ® machine-gun. The result of 30,000 hours of<br />
design work, it could fire up to 150 rounds per minute, an<br />
incredible rate at that time, and became one of the weapons<br />
that helped determined the outcome of World War II.<br />
The Bofors ® gun was highly mobile. It could be transported<br />
by road at high speed and maneuvered readily in rougher<br />
terrain. The time from transport to firing was shorter than<br />
that of any other piece, as was the time for the exchange<br />
of overheated barrels. The ammunition was also superior<br />
in terms of its effect and reliability. Hundreds of thousands<br />
of the Bofors ® 40 mm gun were manufactured. When the<br />
Bofors factory itself could not meet demand, the gun was<br />
manufactured under license in the purchasing country<br />
– mainly the United States and Great Britain.<br />
The Bofors ® 40 mm gun delivered invaluable service to the<br />
Allied forces in the Mediterranean, in France, and during<br />
fiercely waged battles in the Pacific, where its task was<br />
to provide cover for American naval and invasion forces.<br />
One of its most significant applications was in Britain, where<br />
it played a major role in the successful defense against<br />
German air raids during the Blitz. These night-time aerial<br />
attacks took place over a period of nearly two months, with<br />
several hundred bombers each night dropping their loads<br />
onto London. The Bofors ® gun was also very successful<br />
against ground targets, being praised during the invasion of<br />
Normandy for its rapid fire and accuracy.<br />
In the decades after the World War II, Bofors progressed<br />
from manufacturing artillery pieces to making integrated<br />
defense systems. Transistorization and laser technology<br />
facilitated the development of breakthrough target-seeking<br />
missiles that offered ever greater flexibility and accuracy to<br />
both naval and field artillery. Key innovations included the<br />
Bofors ® turretless tank, a remote-controlled system for<br />
ammunition loading in naval guns, and the Super Lepus ®<br />
– an illumination flare which made it possible for fighter pilots<br />
to discover, identify and attack a target at night as easily as<br />
if it were daylight.<br />
The Bofors scandal and divestment<br />
by Nobel Industries<br />
In 1986, Bofors entered into a contract to provide $1.3 billion<br />
worth of 155 mm howitzers to India. Scandal surrounded<br />
this deal, however. Sweden’s Prime Minister, Olof Palme,<br />
had personally lobbied Indian Prime Minister Rajiv Gandhi<br />
on behalf of Bofors, and when news leaked out of questionable<br />
payments to Indian middlemen to cement the<br />
agreement, Gandhi’s integrity became suspect. Bofors<br />
admitted to making payments of $60 million to unspecified<br />
agents, but the company claimed this money was<br />
“windup costs” paid to its own Indian representatives.<br />
Suspicions that Gandhi, or people close to him, had profited<br />
from the Bofors contract dogged him in his re-election<br />
bid, which he lost in 1989. The managing director of<br />
Bofors, Martin Ardbo, also lost his job in connection with the<br />
Indian contract and allegations that Bofors was involved in<br />
smuggling arms to Iran. In 1991, three years prior to joining<br />
forces with Akzo, Nobel Industries divested Bofors. <strong>Today</strong>,<br />
the company forms part of BAE Systems. Its core competencies<br />
include intelligent munitions, artillery systems,<br />
naval gun mounts, combat vehicle weapon stations and<br />
mine-clearing systems.<br />
The Björkborn Foundation<br />
<strong>AkzoNobel</strong> still plays a role today in keeping the memory<br />
of Alfred Nobel alive. When Nobel Industries sold Bofors in<br />
1991, the management wanted to protect the historic values<br />
of the company. The director’s manor, where Alfred Nobel<br />
lived, and its park in Karlskoga were isolated and placed<br />
in a protected foundation called the Björkborn Foundation.<br />
As one of the founding companies, Akzo Nobel AB, the<br />
Swedish legal entity of <strong>AkzoNobel</strong>, is still represented on<br />
the Foundation’s board and contributes to the running of the<br />
museum at Björkborn Manor. Visitors to Björkborn can go<br />
back in time and imagine what it was like when Alfred Nobel<br />
spent his summers there. They can also see the laboratory<br />
where Nobel continued conducting experiments until his<br />
death in 1896.
Some of the workers at Bofors at the time<br />
Alfred Nobel acquired the company. Nobel’s<br />
huge investment in the Swedish arms industry<br />
was of great importance to the local population<br />
A Bofors ® field gun in action in 1940<br />
141
142<br />
Oscar Carlson (1844–1916), the founder of<br />
Stockholms Superfosfat and the creator of<br />
Sweden’s domestic chemicals industry
The Nobel legacy<br />
Stockholms Superfosfat Fabriks AB was founded in 1871 by Oscar<br />
Carlson, who was managing director from that year until 1916. The company<br />
was set up using capital from, among others, Lars Johan Hierta<br />
– the Swedish liberal publicist, publisher and politician who founded<br />
the newspaper Aftonbladet. Created, as its name suggests, to produce<br />
the fertilizer Superphosphate, Stockholms Superfosfat Fabriks was<br />
to become not only a major industrial player in its own right, but also<br />
the precursor of many important companies currently in <strong>AkzoNobel</strong>’s<br />
Swedish arm.<br />
143<br />
Overview<br />
A growing population – and a growing need for food<br />
A dominating force<br />
Nitrate fertilizers and saltpeter<br />
Years of growth and the end of superphosphate production<br />
Svedopren – Sweden’s own synthetic rubber<br />
A new direction: petrochemicals<br />
From Fosfatbolaget through KemaNobel to Nobel Industries<br />
Focus on paint, adhesives and chemicals
144<br />
Stockholms Superfosfat:<br />
A chemical precursor of many Nobel businesses<br />
The Nobel legacy<br />
A growing population – and a growing need for food<br />
Oscar Carlson’s new enterprise was a direct response to<br />
societal developments of his day. The industrial revolution<br />
had brought with it a major expansion of Sweden’s<br />
population, triggering the need for more effective agri-<br />
culture and thus for artificial fertilizers. Superphosphate<br />
was an important early artificial fertilizer. It also found<br />
application in the manufacture of the heads of safety<br />
matches – another important innovation of the age.<br />
Carlson purchased a site at Gäddviken in Nacka (Stockholm)<br />
and oversaw the construction of a factory for the manufacture<br />
of superphosphate and sulfuric acid. The first<br />
factory, which employed 40 people, was a simple wooden<br />
building which was built on the site of a pitch distillery.<br />
It was destroyed by fire in 1889, to be replaced by a<br />
new brick factory. Carlson’s superphosphate factory was<br />
the first of its kind in Sweden. The company continued to<br />
expand, and new factory premises for the manufacture<br />
of chlorates, calcium carbide (a source of acetylene,<br />
for lighting) and nitrogen lime (another artificial fertilizer)<br />
were constructed, with associated hydroelectric power<br />
stations at several locations, including Månsbo (close to<br />
Avesta) in the 1890s and Trollhättan, and Ljungaverk in the<br />
Medelpad region in 1910–1912.<br />
A dominating force<br />
The official opening of the power station and chemical factories<br />
at the Ljunga plant on September 24, 1912, marked the<br />
start of an important epoch, not only for the plant and its surrounding<br />
area, but also for the Swedish chemical industry as<br />
a whole. With its factories, research laboratories, development<br />
laboratories, and central library, the superphosphate<br />
company was to become famous for chemists and industrial<br />
engineers in Sweden and abroad. A property census<br />
from 1930 gives an impression of what a dominating force<br />
Stockholms Superfosfat was during this era. In addition<br />
to the actual factory and its offices on the Ljungaverk site,<br />
the census lists a manager’s residence, eight supervisors’<br />
houses, two foremen’s houses, 55 workers’ houses, a clinic,<br />
a workers’ canteen, a washing and baking house, a milk<br />
store, a theater, a police office, a morgue, and a pigsty.<br />
Nitrate fertilizers and saltpeter<br />
The Stockholms Superfosfat Library<br />
of Science and Technology<br />
Stockholms Superfosfat Fabriks possessed a significant library of science and technology,<br />
housed initially at its Månsbo plant and transferred to Ljungaverk in 1925 when<br />
the Månsbo plant was sold (two railway trucks were required to remove all the volumes to<br />
Ljungaverk). The library continued to expand, and a large patents section was added.<br />
In the 1960s, it was Sweden’s largest private library of technical literature, including more<br />
It was not only phosphorus that Swedish soils needed.<br />
Nitrogen was also in demand. Two Norwegians, Birkeland<br />
and Eyde, were first to develop a commercial process for<br />
extracting and binding nitrogen from the air. They showed<br />
that nitrogen oxides are formed when air is led between<br />
the electrodes of an electric arc. Nitric acid is formed when<br />
nitrogen oxides are absorbed in water. The nitric acid then<br />
constitutes the starting point for the manufacture of several<br />
nitrogenous fertilizers, known as nitrate fertilizers. Nitric<br />
acid was manufactured by the Norwegian method at the<br />
Ljungaverk site from 1913 onwards.<br />
Another method of using nitrogen from the air is to pass it<br />
over carbide at high temperature. The product obtained is<br />
known as nitrogen lime, which is also a nitrogenous fertilizer.<br />
The manufacture of carbide and nitrogen lime began when<br />
the factory in Ljungaverk was built.<br />
A more efficient process for manufacturing nitric acid soon<br />
became available. Fritz Haber, later awarded the Nobel Prize<br />
in 1918, discovered a method of producing ammonia from<br />
nitrogen in the air and hydrogen, using high pressure and<br />
a catalyst. The method was improved by various scientists,<br />
and in 1928 the company purchased the right to use this<br />
method and introduced it at Ljungaverk.<br />
Another major product from Ljungaverk was Ljunga Saltpeter,<br />
which is a mixture of ammonium nitrate and ground limestone.<br />
Ljunga Saltpeter became a recognized product for<br />
Sweden’s farmers – even today the word “Ljunga” remains<br />
for many of them a synonym for artificial fertilizer.<br />
Years of growth and the end of<br />
superphosphate production<br />
Demand for products from Stockholms Superfosfat<br />
Fabriks AB grew during World War I due to the collapse<br />
of kerosene and saltpeter imports. The Swedish government<br />
was encouraging industry to grow, the cost of capital<br />
was low, and credit was readily available from the banks.<br />
Under the management of Birger Carlson, who took over as<br />
general manager in 1917 following the death of Oscar<br />
Carlson, Stockholms Superfosfat embarked upon a very<br />
expansive growth strategy. This involved, among other<br />
steps, the establishment of a factory for metallic natrium in<br />
Porjus – in the far north of Sweden – and the acquisition of<br />
a carbide and lime nitrogen plant in Alby, not far from<br />
Stockholm. Among the more notable events of this<br />
period was the acquisition of the majority of the shares<br />
in Nitroglycerin Aktiebolaget. On November 13, 1918<br />
– two days after the Armistice brought World War I to an<br />
end – a letter arrived at the head office of Nitroglycerin<br />
Aktiebolaget stating that, “as you are probably aware, the<br />
than 10,000 bound volumes and approximately 20,000 periodicals of various types.<br />
<strong>Today</strong>, only a small portion remains, but even so, it is still one of the largest private technical<br />
libraries in Sweden. The shelves today retain many of the volumes that were moved to<br />
Ljungaverk from Månsbo and consist mainly of German literature from around the turn of<br />
the 20th century, bound in beautiful leather and graced by the exclusive Månsbo ex libris.
Stockholms Superfosfat:<br />
A chemical precursor of many Nobel businesses<br />
The Nobel legacy<br />
undersigned company has acquired the majority of the shares<br />
in Nitroglycerin AB.” Rumors to this effect had in fact been circulating<br />
as early as December 1917. At the time, Stockholms<br />
Superfosfat officially denied these claims, but they were probably<br />
already a major shareholder and continued to purchase<br />
shares. On November 28, 1918, an extraordinary shareholders’<br />
meeting took place at the request of Stockholms<br />
Superfosfat Fabriks AB and a new board was appointed for<br />
Nitroglycerin Aktiebolaget.<br />
However, as a direct consequence of the resumption of<br />
imports after the war, the company experienced an<br />
acute economic crisis which necessitated a restructuring of<br />
operations. Manufacture of superphosphate was stopped<br />
in 1929, although the company retained its name – as well as<br />
its ability to create alternative products.<br />
Svedopren – Sweden’s own synthetic rubber<br />
The trade barriers to which Sweden, as a neutral power,<br />
was subject during World War II caused shortages of many<br />
goods. One of these was natural rubber. DuPont in the<br />
United States had published a method for the production of<br />
synthetic rubber, with the scientific name polychloroprene.<br />
This came to be popularly known as Neoprene. Scientists in<br />
the Soviet Union, meanwhile, were working on an equivalent<br />
product, known as Sovpren.<br />
The industrial committee set up by the Swedish government<br />
had the task of ensuring Sweden’s supply of industrial<br />
products during the war. The committee consulted<br />
Uppsala University, where 1926 Nobel Prize winner Theodor<br />
(“The”) Svedberg was professor of physical chemistry.<br />
He was charged with the task of developing a process<br />
for the manufacture of a synthetic rubber which used<br />
Swedish raw materials. Laboratory experiments were conducted<br />
at the department, which led to manufacture on a<br />
pilot scale. Once the pilot studies were complete, it was<br />
the turn of Stockholms Superfosfat Fabriks AB to step in.<br />
Acetylene from carbide was one of the key ingredients,<br />
and by midsummer in 1944 the manufacture of Svedopren<br />
was ready to start at Ljungaverk.<br />
The manufacture of melamine and carbamide-based<br />
plastics also commenced during the 1940s. These products<br />
were used to make laminated products and plywood<br />
glue. Production of basic plastics (PVC) based on calcium<br />
carbide began in 1945, and was to continue until 1988.<br />
In the 1950s, the company went on to develop the synthetic<br />
fiber polyacrylic nitrile, which was marketed for a number<br />
of years under the name Tacryl. Other important products<br />
of the second half of the 20th century included chlorate<br />
(1960), phenol and urea resins, fatty amines, and Expancel ®<br />
(a foam polymer, launched in 1980). The production of<br />
fertilizers was discontinued in 1972.<br />
A new direction: petrochemicals<br />
During the 1950s, the Wallenberg industrial empire, through<br />
its company Stora Kopparberg, acquired a significant<br />
owner-interest in Stockholms Superfosfat Fabriks AB. This<br />
led to a radical restructuring of production. The manufacture<br />
of nitrogen lime was terminated in 1963, and the<br />
company’s focus during the 1960s was directed to<br />
petroleum as a raw material. The company became one<br />
of the major stakeholders in the petrochemicals complex<br />
which was built up around Stenungsund. Net sales grew<br />
during the 1960s and 1970s by approximately 20 percent<br />
year on year, with the number of employees growing from<br />
around 2,000 to more than 7,000 during the same period.<br />
From Fosfatbolaget through KemaNobel to<br />
Nobel Industries<br />
The company grew through a series of acquisitions in the<br />
post-war era, including those of Liljeholmens Stearinfabrik<br />
(1947), Casco (1964), Stockholms Benmjölsfabrik (1966),<br />
Barnängen (1970) and Nitro Nobel (1977) and Nordsjö (1982).<br />
The name of the company was changed in 1964 to<br />
Fosfatbolaget AB, and again in 1970 to KemaNord AB.<br />
Following the complete acquisition of Nitro Nobel in<br />
1977, the company’s name was changed again, in 1978,<br />
to KemaNobel.<br />
The crisis in the petrochemicals market in the late 1970s<br />
and early 1980s, however, led to a significant drop in profits<br />
and a decrease in the stock market value of KemaNobel.<br />
The Wallenberg empire sold its shares in KemaNobel<br />
to financier Erik Penser in the autumn of 1984, and<br />
Penser absorbed the company into the newly formed<br />
Nobel Industries AB, which was created in 1984 through<br />
the acquisition of KemaNobel by what was at the<br />
time Bofors AB. KemaNobel had about 7,200 employees<br />
at takeover and manufactured, among other operations,<br />
PVC plastic and bleaching agents (KemaNobel itself),<br />
civil explosives (Nitro Nobel), glue and paint (Casco,<br />
Nordsjö), consumer goods (Barnängen, Sterisol, and other<br />
companies) and specialty chemicals (KenoGard).<br />
Erik Penser had become principal owner of AB Bofors and<br />
KemaNobel AB using complex and creative shareholder<br />
constructions. These were financed by high-risk loans and<br />
were centered on the holding company Yggdrasil AB, with<br />
the investment companies Carnegie and Asken acting as<br />
conduits. Nobel Industries expanded in subsequent years<br />
through the acquisition of companies such as Eka Nobel<br />
AB in 1986, the Danish paint and coatings group Sadolin<br />
& Holmblad A/S in 1987, Berol Kemi AB in 1988, and the<br />
British paint company Crown Berger Ltd. in 1990.<br />
Focus on paint, adhesives and chemicals<br />
Nitro Nobel AB, which had been a part of the original<br />
KemaNobel, was sold in 1986. Following the sale of Bofors<br />
AB in 1991 and the sale of the consumer goods division<br />
Nobel Consumer Goods AB in 1992, the main products of<br />
Nobel Industries became paint, adhesives and chemicals for<br />
use in the cellulose and paper industry.<br />
Erik Penser lost control of Nobel Industries during the financial<br />
crisis of the early 1990s, and the company became<br />
– somewhat controversially – the property of Nordbanken.<br />
Restructuring subsequently led to ownership being transferred<br />
to the state-owned Securum bank, which sold the<br />
shares in 1994 to Akzo. The company name was changed to<br />
Akzo Nobel N.V. after the merging of Nobel’s operations with<br />
those of Akzo. During its final year of independence, Nobel<br />
Industries employed approximately 20,000 people and its<br />
net sales amounted to approximately SEK 23 billion.<br />
145
146<br />
Stockholms Superfosfat’s site at Månsbo,<br />
Sweden, in 1895
Fosfatbolaget produced melamine under<br />
the brand name Mepal. One of the more highprofile<br />
uses of Mepal was for Scandinavian<br />
Airlines’ in-flight dinner service<br />
147
148<br />
Rudolf Lilljeqvist (1855–1930), a civil engineer<br />
who became a pioneer of electrochemistry
The Nobel legacy<br />
Eka – or Elektrokemiska Aktiebolaget, to give the company its original<br />
name – was the brainchild of the civil engineer Rudolf Lilljeqvist. Having<br />
worked abroad as a bridge constructor in London and Paris, Lilljeqvist<br />
returned to his native Sweden in his forties with the aim of setting up a<br />
profitable company which would afford him an independent position in<br />
life. It may seem strange to reflect that a pioneering company in electrochemistry<br />
should have been created by a civil engineer, but Rudolf<br />
Lilljeqvist was a visionary. A century before the successful completion of<br />
the Channel Tunnel linking England and France, he proposed building an<br />
“underwater bridge” between Sweden and Denmark at a cost of SEK 12<br />
million. The idea was turned down; Lilljeqvist simply reacted by redirecting<br />
his attention to a different entrepreneurial field, that of electrochemistry.<br />
149<br />
Overview<br />
From experimentation to venture capital<br />
Teething troubles<br />
Moving to Bohus<br />
Innovation in the 1970s<br />
The environmental impact of chlorine<br />
Hydrogen peroxide: a substitute for chlorine in the bleaching process<br />
Increasing market orientation<br />
New bleaching technologies: Lignox ® and ECF<br />
Compozil ® – A revolutionary paper chemicals system<br />
Compozil ® succeeds in the marketplace<br />
Eka today
150<br />
Eka:<br />
A world leader in electrochemistry<br />
The Nobel legacy<br />
Eka’s first female trainee<br />
“Now there has been a female trainee in the workshop. As far as<br />
we know, this is the first time a woman dressed in overalls has<br />
worked in our electric workshop. We asked her what it felt like to<br />
be the only woman among so many male colleagues. She felt that<br />
it had worked very well. No complication whatsoever had occurred<br />
– and how could it, as they were all gentlemen, she commented.”<br />
EKA staff magazine, 1965<br />
From experimentation to<br />
venture capital<br />
At the end of the 19th century, Sweden<br />
was importing large quantities of chloride<br />
of lime, which was used for bleaching and<br />
disinfection. Lilljeqvist decided to manufacture<br />
the product in Sweden. He acquired an<br />
option on the purchase of a waterfall near<br />
Bengtsfors, in the west of Sweden, to generate<br />
hydro-power for a chlor-alkali plant,<br />
and – in collaboration with G.E. Cassell,<br />
an assistant lecturer in Electrochemistry<br />
at Stockholm University – embarked on a<br />
series of experiments into the production<br />
of chloride of lime. Cassell issued a certificate<br />
to the effect that the experiments,<br />
conducted in a Stockholm basement, had<br />
been satisfactory – and Lilljeqvist went off<br />
in search of the SEK 300,000 that he calculated<br />
was necessary to set up an electrochemical<br />
company.<br />
Lilljeqvist was advised to contact the entrepreneurial<br />
inventor-industrialist Alfred Nobel<br />
for funding. Nobel was greatly impressed by<br />
his new acquaintance (whom he was later to<br />
nominate as co-executor of his will) and provided<br />
SEK 100,000 for the venture, on the<br />
proviso that the remainder be found elsewhere.<br />
The money was duly raised and on<br />
August 9, 1895, the Articles of Association<br />
for Elektrokemiska Aktiebolaget were approved<br />
by the Swedish government.<br />
Teething troubles<br />
Enlisting the British engineer William Glover<br />
to provide chemical engineering expertise,<br />
Lilljeqvist set up a factory with 24 electrolysis<br />
vessels – which promptly exploded on<br />
being commissioned. “In an inexplicable and<br />
so far unfathomed way,” wrote the Board<br />
of Directors in their annual report for 1897,<br />
“ignition took place of the mixture of chlorine<br />
gas and hydrogen gas which existed in the<br />
cells and the pipes, with the result that the<br />
lids covering the anode chambers as well<br />
as live metal hoops and straps were more<br />
or less destroyed. This damage is not, however,<br />
of any major importance. On the other<br />
hand, all the glazed clay pipes, which form<br />
the outer supply mains to the chlorine chambers,<br />
were shattered.” Undeterred, Lilljeqvist<br />
pressed on. Despite many teething troubles,<br />
the company was by 1899 able to produce<br />
150 tons of lye and 110 tons of chloride of<br />
lime. The products attracted positive attention<br />
in view of their unusually high levels<br />
of purity.<br />
Dividends were first paid to shareholders<br />
in 1902. The company branched out<br />
into the production of potassium hydroxide<br />
and caustic soda (1905) and soft soap<br />
(1910) – although the latter product under-<br />
cut the soap manufacturers who were<br />
Elektrokemiska Aktiebolaget’s customers,<br />
forcing the company to abandon production.<br />
Moving to Bohus<br />
Because of high freight and reloading<br />
costs and the poor energy supply at the<br />
Bengtsfors plant, operations were closed<br />
in 1924. A new company trading under the<br />
same name, Elektrokemiska Aktiebolaget<br />
(abbreviated as EKA) – commenced operations<br />
on a site at Bohus, 17 km north of<br />
Gothenburg, which it took over from the<br />
recently bankrupt Kvävebolaget. Despite<br />
the new Bohus plant, profits remained slim<br />
and the company still had a long way to go<br />
before it generated significant stable returns.<br />
Dividend payments were suspended during<br />
this phase of consolidation, recommencing<br />
only in 1934. (Rudolf Lilljeqvist, however, did<br />
spend his latter years in retirement abroad,<br />
thus achieving his original aim of an independent<br />
existence. Tragically, he disappeared<br />
during a visit to the power station at<br />
Bengtsfors in 1930. It was assumed he had<br />
fallen and drowned when making observations<br />
along the rapidly flowing stream.)
The melting of chemically pure alkali at<br />
Bengtsfors at the beginning of the 20th century
152<br />
Eka:<br />
A world leader in electrochemistry<br />
The Nobel legacy<br />
EKA expanded its product range during the 1930s to<br />
include hydrogen peroxide (1935), liquid chlorine (1936),<br />
sodium perborate (1936), metasilicate (1937) and carbon<br />
disulphide (1939). Following World War II – when large<br />
quantities of chloride of lime were produced as an emergency<br />
measure for decontaminating mustard gas in the<br />
event of a state of war – a new hydrogen peroxide plant<br />
was built (in 1948), a new ammonia plant (in 1956) and a<br />
new headquarters (in 1960).<br />
Innovation in the 1970s<br />
By 1972, the company was turning over SEK 80 million a<br />
year. This was to rise to more than SEK 5 billion by 1994<br />
– and was almost entirely attributable to chlor-alkali production.<br />
In the intervening years, the pulp and paper industry<br />
had expanded greatly, generating huge demand for chlorine<br />
and lye, whilst increased demand for machine washing<br />
agents created a growing market for another of the company’s<br />
products, metasilicates. And a new President,<br />
J.G. Montgomery, had revitalized a company which<br />
had brought few innovations to market in recent times.<br />
Montgomery made staff cuts, brought in new, young engineers,<br />
and unleashed an innovation drive based on identifying<br />
and helping to solve customer’s problems. “Especially<br />
the new engineers in white coats caused irritation, and we<br />
involved ourselves with an information campaign aimed at<br />
informing the staff that the engineers were needed in order<br />
for us to have an opportunity to develop,” Montgomery later<br />
commented. “But the campaign went into the waste paper<br />
basket, as the engineers became accepted before the information<br />
material was ready.”<br />
The environmental impact of chlorine<br />
Chlorine, meanwhile, was becoming a problem for the<br />
company because of its negative environmental impact –<br />
the poisonous heavy metal mercury was being used in<br />
chlorine manufacture. Large discharges of mercury into the<br />
river Göta Älv were uncovered in the 1960s, and even the<br />
building of a new “mercury-proof” factory in 1970 failed to<br />
alleviate the problem. Under intense pressure from local residents,<br />
the Water Board and the Swedish National Franchise<br />
Board for Environmental Protection, EKA was forced to<br />
undertake an intensive program of environmental measures<br />
from 1972 to 1976. The company needed to supple-<br />
ment chlorine manufacture with new, less environmentally<br />
harmful products.<br />
Hydrogen peroxide: a substitute for chlorine in<br />
the bleaching process<br />
In the early days of pulp manufacture, the bleaching agent<br />
commonly used was chlorine. Concerns about the environmental<br />
impact of chlorine bleach, however, led to the search<br />
for less environmentally harmful substitutes, culminating in<br />
the complete elimination of chlorine for pulp bleaching in<br />
Sweden by 1994.<br />
EKA was fortunate to already have an environmentally sound<br />
alternative bleaching agent in the form of hydrogen peroxide.<br />
When the company started production of hydrogen<br />
peroxide by electrolysis in the mid-1930s, it was primarily to<br />
supply the Swedish textile industry with a bleaching agent.<br />
During World War II, the Swedish Defense Forces started to<br />
take an interest in hydrogen peroxide, which was used at<br />
the time as a propellant for torpedoes. Civil applications for<br />
the compound also increased, and the period up to 1962<br />
saw the construction of four new factories, all based on the<br />
electrolytic method. Although it invested in plant, EKA did<br />
not, however, have a proprietary manufacturing process for<br />
hydrogen peroxide, but licensed it in instead.<br />
Increasing market orientation<br />
In the early 1970s, the pulp industry started to take an<br />
interest in hydrogen peroxide as an environmentally less<br />
harmful bleaching agent. During this same period, EKA<br />
changed from being a company with a production-oriented<br />
focus to one with a market-oriented focus. A drive began<br />
to market hydrogen peroxide for the bleaching of mechanical<br />
pulps. At the beginning of the 1980s, hydrogen peroxide<br />
also started being used for bleaching chemical pulp.<br />
Demand for the product grew, as ever stricter regulations<br />
governing environmentally hazardous emissions paved the<br />
way for a significant expansion of this less harmful alternative<br />
to chlorine.<br />
At the same time, EKA had acquired the expertise necessary<br />
to support its pulp mill customers and make an<br />
active contribution in the form of tests and trial runs in<br />
their mills. The company invested heavily in the production<br />
of hydrogen peroxide and eventually developed its own<br />
manufacturing process.<br />
New bleaching technologies: Lignox ® and ECF<br />
To improve the bleaching process for chemical pulp and<br />
reduce its environmental impact, later the company developed,<br />
in partnership with Aspa Mill, a new bleaching technology.<br />
Known as the Lignox ® method, the technology, based<br />
on the use of hydrogen peroxide and chelating agents, made<br />
it possible to eliminate emissions of chlorine pollutants from<br />
the bleaching process – a significant breakthrough. Moreover,<br />
it soon became evident that bleaching with an elemental chlorine-free<br />
process, ECF, using chlorine dioxide, was the best<br />
practice in terms of quality, cost and environmental considerations.<br />
This process formed the basis for the company’s<br />
expansion during the 1990s. <strong>Today</strong>, nearly all pulp mills in the<br />
world use oxygen, hydrogen peroxide and chlorine dioxide<br />
and have abandoned bleaching with chlorine gas. The result<br />
is environmentally compatible pulps with high brightness and<br />
no toxic chlorinated pollutants in the wastewater.<br />
The largest use of hydrogen peroxide today is in the bleaching<br />
of mechanical and chemical pulp and recycled paper. It is also<br />
used in chlorine dioxide generation, for surface treatment in<br />
the metal industry, for cleaning of wastewater, for disinfection,<br />
and in textile bleaching.<br />
Compozil ® – A revolutionary paper<br />
chemicals system<br />
Another breakthrough product for the company was<br />
Compozil ® . Throughout the 1970s, Eka carried out extensive<br />
R&D work in very diverse fields. An R&D team conducted<br />
research into silica on the hypothesis that it might act as a<br />
strengthener in some situations. The team discovered that<br />
the amount of plastic that has to be added to wallpaper can<br />
be reduced if a small quantity of silica is also added. Other<br />
laboratory tests involving silica were made on textiles, car<br />
mats and various types of paper.<br />
The year 1979 brought with it two events of note. One was<br />
a simplification of the company name from Elektrokemiska<br />
Aktiebolaget to Eka AB, making use of what had previously<br />
been the abbreviation of the company’s name. The other<br />
was a breakthrough of immense significance, such that it<br />
laid the foundations for the creation of a paper chemicals<br />
division within the company. Eka’s researchers discovered<br />
that the combination of cation starch and silicon produced<br />
surface chemical effects that resulted in a fixed bonding of<br />
paper fibers and that these fibers could therefore be used
Workers employed by EKA at Bohus in 1928. Some came from Kväveindustri,<br />
while others relocated with the company from Bengtsfors
154<br />
Eka:<br />
A world leader in electrochemistry<br />
The Nobel legacy<br />
to bond fillers such as chalk and clay. A revolutionary new<br />
paper chemicals system had been created. It was given<br />
the name Compozil ® .<br />
Titanium dioxide was commonly used as a filler in the production<br />
of paper fiber. However, titanium dioxide leached<br />
into the wastewater system, creating pollution. When Eka<br />
experts added Compozil ® to the mix, it ensured excellent<br />
adhesion, and the levels of titanium dioxide in the wastewater<br />
fell substantially.<br />
The action of Compozil ® also increased retention, meaning<br />
that when fibers and filler were bound together, they stayed<br />
in the paper on the paper-making machine, rather than being<br />
drained away with the water when that was removed. This<br />
cut wastage of both paper fibers and filler. At the same time,<br />
the new product also improved the dewatering process,<br />
reducing the energy required to dry the paper. The use of<br />
Compozil ® improved the cost-effectiveness of production,<br />
while at the same time delivering stronger paper.<br />
Compozil ® succeeds in the marketplace<br />
Production of Compozil ® started in 1980, but the market<br />
initially viewed Eka’s innovation with some skepticism. It was<br />
not until 1989 that the new product achieved a real breakthrough<br />
on the European market, with success in the U.S.<br />
market coming three years later.<br />
The launch of Compozil ® also required the provision of sophisticated<br />
technical support on the part of Eka, because the use<br />
of the product had to be customized to suit widely differing<br />
paper machines. Compozil ® ’s original strength was in the area<br />
of wood-free paper and cardboard grades based on chemical<br />
pulp. Over time, however, the Compozil ® system was further<br />
developed for use with wood-containing and recycled fiberbased<br />
paper products.<br />
By 1994, the Compozil ® system was being used at 168<br />
mills worldwide, which between them produced around<br />
12 million tons of paper a year. Of these, 61 percent was<br />
fine paper, 19 percent cardboard and 15 percent liner.<br />
Eka was acquired by Nobel Industries in 1986, which<br />
was in turn acquired by Akzo in 1994. Eka thus became a<br />
business unit of Akzo Nobel, and Compozil ® gained the<br />
opportunity to enter many more new markets via its new<br />
parent company.<br />
Eka today<br />
Eka Chemicals today is <strong>AkzoNobel</strong>’s Pulp & Paper<br />
Chemicals business unit. It is the world’s leading producer<br />
of bleaching chemicals used in the manufacture of paper<br />
pulp. Eka also supplies process chemicals and performance<br />
chemicals that improve the properties of paper, as<br />
well as systems and integrated services for the pulp and<br />
paper industry, in all pulp- and paper-making regions in<br />
the world. Besides pulp and paper activities, Eka also produces<br />
specialty chemicals used in areas such as water<br />
treatment, electronics and separation products for the<br />
pharmaceutical industry.
EKA’s electrolysis hall at Bohus for the<br />
production of hydrogen peroxide in the 1950s<br />
155
156<br />
Manual preparation of pigments for making into paint. The mechanization<br />
of such processes in the 19th century facilitated far-reaching changes in<br />
many areas of industrial paint manufacture
The Nobel legacy<br />
“Take two lots of Brazilian spoon, half a lot of white lead and half<br />
a lot of alum. Mix these together, place enough wood on top for the<br />
material to become hidden, and allow to stand out for three days.<br />
Mix and stir three or four times a day, then sew a dress from it and add a<br />
glazing mixture…”<br />
157<br />
Overview<br />
Domestic cultivation of dyestuff plants<br />
The switch to oil seed and the move into paints<br />
G.A. Sadolin: An artist and entrepreneur<br />
Independent production of raw materials<br />
Quick-drying paints and modern industrialization<br />
Post-war expansion<br />
The BT Kemi scandal<br />
Incorporation into Akzo Nobel
158<br />
Sadolin:<br />
The union of paint and enamel<br />
The Nobel legacy<br />
This recipe for textile-dye manufacture dates from the<br />
middle of the 17th century. Such methods were still in<br />
use during the Rococo period more than 100 years later,<br />
in 1777, the Danish dyer Jacob Holmblad was granted<br />
Royal Privilege and built a new dye house on Sølvgade<br />
in Copenhagen. Before setting up on his own, Jacob had<br />
been head of the dye works at the military clothing factory<br />
known as “Guldhuset.” In those days, the majority of<br />
the population still wore undyed clothes in grayish tones.<br />
For those whose status justified colored garments, dyes<br />
were extracted from madder and woad, stinging nettle,<br />
cat’s claw, equisetum, ox eye, plumeless sawwort, birch<br />
leaf and berberis bark, along with certain animal-based<br />
products. Simple mineral products and acids were<br />
also used, especially urine. The dying process used at that<br />
time was essentially the same as during the Middle Ages.<br />
Domestic cultivation of dyestuff plants<br />
Although domestic cultivation of madder and woad (the<br />
starting materials for madder red and indigo blue dyes,<br />
respectively) had not been successful in Denmark, Jacob<br />
Holmblad saw it as the key to developing his dyeing business.<br />
Assisted by his son Lauritz, he therefore imported<br />
mother plants and began to cultivate madder and woad.<br />
A drying house and a horse mill were also constructed for<br />
grinding. By the time of Jacob’s death in 1806, the Holmblad<br />
company was producing 3,000 pounds of madder and<br />
150 pounds of woad annually. In a single year, they had<br />
planted no fewer than 500,000 plants. The English assault<br />
on Copenhagen in 1807 disrupted this production of<br />
dyestuff plants and caused substantial losses to the<br />
Holmblad company but, nonetheless, cultivation continued<br />
for several years thereafter.<br />
This marked the beginning of industrialized dyestuff manufacture<br />
in Denmark. The production of paints, however,<br />
was still very much the business of individual painters, who<br />
mixed their own colors on a flagstone or, when available,<br />
in a funnel-shaped hand mill. The range of pigments for<br />
oil-ground colors was severely limited, comprising chiefly<br />
white lead, red lead, cinnabar, French blue, and natural<br />
earthen colors such as red and yellow ochre and chalk.<br />
Plant-based pigments were also used to achieve certain<br />
colors. Painters, moreover, produced their own varnish and<br />
siccative (drying agent) by cooking linseed oil together with<br />
red lead and brownstone. This process of cottage manu-<br />
facture was to be made redundant by the industrialization<br />
of paint manufacture, which became firmly established by<br />
the middle of the 19th century.<br />
The switch to oil seed and the move into paints<br />
Despite initial successes, a combination of factors eventually<br />
rendered the cultivation of dyestuff plants in Denmark economically<br />
unviable. Lauritz Holmblad therefore immersed<br />
himself in the growing and milling of oil seed, which became<br />
the basis for a new range of oil-based colors launched in<br />
1819. Denmark’s first real paint factory had been established.<br />
Although initially skeptical, Danish painters found<br />
the factory-produced colors better than the results of their<br />
own unsophisticated methods, and the Holmblad company<br />
flourished. A chalk-boiling factory was constructed in 1834<br />
and a varnish-boiling factory in 1836 as the company’s<br />
product range expanded. In 1861, P.L. Holmblad, the last of<br />
the Holmblad dynasty, built Denmark’s first enamel manufacturing<br />
plant. Manufacture of all product lines was to be<br />
consolidated in Holmbladsgade, Copenhagen, approximately<br />
40 years later.<br />
G.A. Sadolin: An artist and entrepreneur<br />
Meanwhile in 1907, the young Gunnar A. Sadolin founded<br />
Sadolins Farver, a company specializing in artists’ paints and<br />
printing inks. Originally a painter, Sadolin was interested in the<br />
industrial manufacture of improved colors for artists. Inspired<br />
by the Danish industrial leader Alexander Foss – who campaigned<br />
for Denmark’s industry to compete against foreign<br />
companies and make itself independent of foreign imports<br />
and expertise – Gunnar and his brother, Knud Sadolin,<br />
merged their new company with the Holmblad company in<br />
1912 and set in motion a process of large-scale renewal of<br />
what was henceforth known as Sadolin & Holmblad. This<br />
union of Denmark’s paint and enamel industries was to<br />
prove a source of enormous strength in years to come.<br />
Independent production of raw materials<br />
Sadolin & Holmblad broke away from the old Holmblad<br />
traditions early on so that they could produce raw materials<br />
and semi-finished products themselves. This strategy<br />
proved highly significant. As early as 1923, the company<br />
undertook fabrication, not only of mineral colors, but also of<br />
synthetically produced organic pigments or color lacquers<br />
for the company’s steadily increasing production of colored<br />
printing inks. When this branch of the company’s activity<br />
– after numerous expansions – split off as its own company<br />
(“Kemisk Værk Koge A/S”) in 1935, Scandinavia got its first<br />
true coloring agent factory – in the face of much criticism<br />
from observers who thought it impossible to establish such<br />
an industry in direct competition with the raw materials<br />
industry of the large industrial countries of the day.<br />
Quick-drying paints and modern industrialization<br />
The company’s sales increased steadily despite World War I<br />
and its difficult aftermath, and new products were added<br />
to the Sadolin & Holmblad range: rust protection coatings,<br />
marine paint, finished oil paints, precipitated mineral colors<br />
and colored enamel, nitrocellulose enamel and dry paint.<br />
Increasing industrialization placed very strenuous and specialized<br />
demands on the products made by a number of<br />
industries at the time. It was necessary, for example, to have<br />
many entirely new types of enamel that could dry rapidly<br />
enough for enameling to take place without creating a bottleneck<br />
during the production cycle. Indeed, industrial massproduction<br />
would have been impossible without modern<br />
quick-drying industrial paints. Sadolin & Holmblad set up a<br />
central research laboratory in 1931 and made various acquisitions<br />
during the ensuing decade. The significant growth of<br />
the 1930s was interrupted, however, by the advent of World<br />
War II, which almost put a stop to the company’s exports.<br />
Post-war expansion<br />
Soon after the end of the war, however, Sadolin &<br />
Holmblad’s export business was reactivated, and its<br />
staff traveled all over the world. The company expanded<br />
through the inauguration of its first production plant in<br />
Stockholm, Sweden, in 1946; operations were also set up<br />
in Norway and Switzerland in the same year. Explosive<br />
growth took place both geographically and in areas of<br />
specialization. An international division was established in<br />
1956, and manufacturing rocketed – especially in France,<br />
Finland, Turkey, and Cyprus. Around this time, Sadolin &<br />
Holmblad merged with Lars Foss Kemi A/S in Fredensborg<br />
and entered the markets in the East, United States and<br />
Africa, becoming the world’s second largest exporter of
The Sadolin & Holmblad management team outside the company’s head<br />
office in Holmbladsgade, Copenhagen, during the 1920s<br />
159
160<br />
Sadolin:<br />
The union of paint and enamel<br />
The Nobel legacy<br />
paint. Besides the oil-ground colors, stains and clear<br />
varnishes generally used by painters, the company’s<br />
product portfolio by now included special rust protection<br />
coatings, anti-fouling paints, baking varnishes, car<br />
varnishes, printing inks, newspaper inks, offsetprinting<br />
colors, litho-inks, copperplate inks, insulating<br />
varnishes, ceramic glazes, metal foil enamels, tube<br />
varnishes, yacht varnishes, furniture varnishes, leather<br />
enamels, specialty varnishes for breweries, wallpaper<br />
paints, hat varnishes, toy paints, tin varnishes and oven<br />
varnishes. Growth also occurred via a series of mergers<br />
and acquisitions in the post-war years. A divisional<br />
structure was established in 1974, organizing the Group<br />
companies into divisions according to product<br />
types, with a Group management and with central<br />
development laboratories for both paints and printing<br />
inks in Denmark. The creation of a chain of independent<br />
paint shops trading under the name of Sadolin Farveland ®<br />
followed in 1975.<br />
The BT Kemi Scandal<br />
A dark chapter in the organization’s history occurred the<br />
following year, however, when Sadolin & Holmblad became<br />
known as the ultimate parent of a company responsible<br />
for the worst environmental disaster to have occurred in<br />
Enamel – an ancient technology<br />
with modern applications<br />
the Nordic region in those times: the BT Kemi Scandal.<br />
The heavy polluting BT Kemi factory in Teckomatorp,<br />
Sweden, was decommissioned in 1977 and dismantled<br />
entirely in 1979. It took the Swedish Government a full<br />
25 years, however, to rectify the harmful effects of the<br />
toxic pollutants that had been dumped by the company.<br />
These events led to the establishment of the concept of<br />
“environmental crime,” first in public debate and then<br />
later in legislation. The BT Kemi scandal is viewed as a<br />
“focusing event” which placed the relationship between<br />
environmental pollution, responsibility, legislation and penal<br />
sanctions firmly on the political agenda. Several commissions<br />
of inquiry were established as a consequence, and<br />
in 1981 the Environmental Protection Act was revised<br />
and environmental crimes included in the Swedish penal<br />
code. Sadolin & Holmblad responded to these terrible<br />
events by becoming the first Danish company to establish<br />
a corporate environmental department and a corporate<br />
environmental policy.<br />
Incorporation into Akzo Nobel<br />
Enamel is a vitreous substance (a mixture of silica derived from quartz or sand, soda<br />
or potash and lead, chemically identical to glass) which is applied as a paste and fused<br />
to metal, ceramic or glass objects by baking it at very high temperatures (up to 1,000<br />
degrees Celsius). This technique gives a durable, chemically resistant and glazed finish,<br />
and cannot burn.<br />
Enamel’s resistant properties have made it suitable for use in many industries where great<br />
durability is required. For example, stoves and cooking pots are enamelled, as are cast-iron<br />
bathtubs and industrial processing equipment such as tanks used in chemical reactors.<br />
The finish can be transparent or opaque after firing. Some commercial oil-based paints<br />
that dry with a shiny, glasslike finish are sometimes called enamel.<br />
In 1984, Sadolin ® Wholesale Center (now Nordsjö ® Farver)<br />
was established in cooperation with some of Denmark’s<br />
biggest paint wholesalers. Three years later, the Swedish<br />
conglomerate Nobel Industries acquired Sadolin & Holmblad,<br />
providing the company with an even wider range of source<br />
materials, technologies and markets on which to draw.<br />
Incorporation into the newly formed Akzo Nobel followed in<br />
1994. Sadolin ® lives on today, as strong as ever, as one of<br />
<strong>AkzoNobel</strong>’s decorative coatings brands.<br />
Blue and green glazed or enameled ceramic and pottery objects are known from Crete as<br />
early as the 13th century B.C. as well as from Egypt, the Middle East and China. Enameling<br />
was later used in Celtic jewelry and Byzantine and medieval art. First made in the 6th century,<br />
“cloisonné” involves first overlaying the object with cell-like metal structures, which<br />
are then filled with different colored enamels and fired. It was used particularly to create<br />
plaques for altarpieces and reliquaries with images of saints. In the 17th century, enamel<br />
portrait miniatures, such as those made by Jean Petitot, became popular at the courts<br />
of Charles I of England and Louis XIV of France. Other famous pieces include the eggs<br />
made of precious metals and decorated with enamel and gemstones created by Peter Carl<br />
Fabergé and his assistants in Russia between 1885 and 1917.
With production facilities situated in the centre of Copenhagen,<br />
Sadolin & Holmblad had to take safety very seriously. A photograph of<br />
the company fire brigade from around the mid-20th century<br />
161
162<br />
Awareness of the Sadolin & Holmblad brand was built through innovative advertising campaigns.<br />
Their cinema commercials − this still is taken from one − predated the age of television commercials<br />
and are still well known in Denmark
Sadolin & Holmblad were always early adopters of new technologies.<br />
This photograph from the mid-20th century shows a production facility<br />
which was highly advanced for the day
164<br />
Founded in 1903, Nordström & Sjögren experienced rapid growth. Taken outside the administrative<br />
office and warehouse at Södra Förstadsgatan, Malmö, in 1922, this photograph features co-founder<br />
Albin Sjögren (in the hat) and Anders Leo (top right), who was years later awarded a medal for<br />
fifty years of service to the firm
The Nobel legacy<br />
Like many companies of its day, the paint company Nordsjö took its<br />
name from its founders – Axel Nordström and Albin Sjögren. The two<br />
friends, who had been envisaging a joint business venture for some time,<br />
set up shop together in Malmö, Sweden, in March 1903. In the splendid,<br />
newly built Valhallahuset on the corner between Gustav Adolfs Torg and<br />
Södra Tullgatan, the store of Nordström & Sjögren presented itself as<br />
Malmö’s most progressive supplier of paints and chemicals.<br />
165<br />
Overview<br />
Ready-mixed paints<br />
Rollable, paintable, sprayable<br />
Color production system<br />
Acquisition by Bayer<br />
The road to Nobel Industries<br />
Incorporation into Akzo Nobel<br />
Environmental awareness
166<br />
Nordsjö:<br />
Technology leader in environmentally-friendly paints<br />
The Nobel legacy<br />
The newly founded business got off to a<br />
brisk start, quickly gaining the favor of<br />
decorators and hardware store owners<br />
alike. The order books were soon bulging,<br />
and by 1907 it became necessary to invest<br />
650 kronor in a horse so as to keep pace<br />
with the stream of deliveries. In the following<br />
year, Nordström & Sjögren relocated<br />
their office and warehouse to Södra<br />
Förstadsgatan 9; the store itself followed<br />
a few years later. A further store was also<br />
opened at Amiralsgatan 15.<br />
Ready-mixed paints<br />
The driver of the company’s growth was<br />
their offering of ready-mixed paints. In<br />
those days, it was still normal for professional<br />
decorators to mix their own paints,<br />
using colored pigments in a base of linseed<br />
oil. Now it became possible to buy<br />
ready-mixed paints from Nordström &<br />
Sjögren. This saved the decorators time<br />
and also guaranteed consistency of color<br />
and quality.<br />
Nordström & Sjögren continued to grow<br />
despite World War I and the economic<br />
crisis of the 1920s, and its network<br />
of branches expanded. Axel Nordström<br />
passed away in 1929 and the company<br />
became a limited company shortly after-<br />
wards, with Albin Sjögren as managing di-<br />
rector. Paint manufacture continued to burgeon,<br />
and in 1933 operations moved to<br />
new premises in the stables and barracks<br />
left vacant after the disbanding of Sweden’s<br />
Hussar Regiment.<br />
Rollable, paintable, sprayable<br />
The year 1937 marked a watershed in<br />
Nordsjö’s development. This was the year in<br />
which the binding agent Bindol ® was introduced,<br />
which allowed paint to be rolled,<br />
painted and sprayed. Nordsjö Bindol ® became<br />
a well-known concept during the 1940s,<br />
and manufacture under license started in<br />
many countries following the World War II.<br />
In 1947, a 40,000 square meter site was<br />
purchased at Sege, just to the northeast<br />
Quick-Drying High Solid (QDHS)<br />
technology<br />
A sales success in recent years has been Nordsjö Tinova ® VX, which is a unique product for<br />
the painting of exterior wood surfaces. Thanks to its patented binding agent – developed by<br />
Akzo Nobel – it does not require any primer.<br />
Nordsjö Tinova ® VX uses water-borne, high-solid technology in place of solvent-borne<br />
technology and has a uniquely high solids content (65 percent). The technology uses<br />
virtually no volatile organic compounds (VOCs) and therefore complies with stringent new<br />
VOC regulations introduced by the European Union in 2004. In addition, Tinova ® VX’s high<br />
solids content means that only two coats are required for complete coverage instead of<br />
the usual three. Furthermore, the product’s distinctive small molecular structure allows the<br />
paint to penetrate deeply into the wood, thereby vastly improving its waterproofing properties.<br />
Tinova ® VX combines protection with high durability – important characteristics for the<br />
demanding Scandinavian climate.<br />
of Malmö, and new premises were erected<br />
there for Nordsjö’s ever-growing paint<br />
manufacturing operations. By this stage<br />
the company was being led by the sons<br />
of the founders, Olle Nordström and<br />
Sven Sjögren.<br />
The company employed more than 100<br />
people by the middle of the 20th century,<br />
and major investment was carried out in the<br />
Nordic countries with the establishment of<br />
subsidiaries. As the factory at Sege was “out<br />
in the sticks”, transport was organized every<br />
morning and evening for the employees<br />
between their homes in Värnhemstorget<br />
and their workplace. Up until 1956 – when<br />
a bus was acquired – they traveled on the<br />
back of a lorry.<br />
Color production system<br />
In the early 1960s, Nordsjö introduced<br />
Tintorama ® , a color production system for<br />
paint. It became an immediate success.<br />
A uniform base paint had small shots of<br />
variously colored additional pigment paste<br />
added to it that gave the paint its final color<br />
after mixing. Tintorama ® meant that paint<br />
retailers could dramatically reduce their<br />
amount of stock, which lifted their profits.<br />
Acquisition<br />
by Bayer<br />
Nordsjö underwent major expansion during<br />
the 1960s. A program in Sweden for the<br />
large-scale production of reasonably-priced<br />
housing (Miljonprogrammet) generated<br />
huge demand for paint. The number of<br />
major paint manufacturers in Sweden at<br />
the time was relatively small. The German<br />
chemicals group Bayer AG purchased 80<br />
percent of the shares in Nordsjö in 1969,<br />
acquiring the outstanding shares five years<br />
later. Several other acquisitions took place<br />
under Bayer’s ownership, and manufactur-<br />
ing operations in Sege expanded. Signi-<br />
ficant resources were invested in research<br />
and development, and new laboratories<br />
were built. By the end of the 1960s, the com-<br />
pany employed more than 400 people.
The Valhallahuset in Malmö, where Nordström & Sjögren opened<br />
an exclusive paint shop in March 1903<br />
167
168<br />
The interior of Nordström & Sjögren’s paint shop in Malmö, 1905
From its very beginnings, Nordsjö was successful, not only at manufacturing paint but also at<br />
distributing it to people who wanted it. Every night, consignments of freshly made paint were<br />
delivered by lorry from the Nordsjö factory to divisional offices and dealers throughout Sweden<br />
169
170<br />
Nordsjö:<br />
Technology leader in environmentally-friendly paints<br />
The Nobel legacy<br />
The road to Nobel Industries<br />
Nordsjö changed hands again in 1982: Bayer divested its<br />
complete holding in the company to Casco AB, which was<br />
part of the KemaNobel group. The following years saw<br />
major organizational change, in association with large-scale<br />
restructuring throughout the wider paint sector. The main<br />
player in the sector was Nobel Industries, which had collected<br />
several of Europe’s leading paint manufacturers under<br />
one umbrella.<br />
Incorporation into Akzo Nobel<br />
Nobel, with Erik Penser at its head, was hit by a financial<br />
crisis in 1990, and Nordbanken came in as owner. In 1994<br />
the Dutch conglomerate Akzo purchased all the shares in<br />
Nobel Industries, and Nordsjö subsequently became part of<br />
Akzo Nobel, one of the world’s leading paint companies.<br />
Operations at Sege have continued to expand under<br />
Akzo Nobel’s management. The company was given its current<br />
name, Akzo Nobel Decorative Coatings AB, in 1999,<br />
but the paints themselves continue to be sold under the<br />
trademarks Nordsjö ® , Nordsjö ® -Sadolin ® and Cuprinol ® .<br />
Akzo Nobel Industrial Coatings AB is also located in Sege.<br />
This company has its origins in the industrial coatings<br />
sector, which was formed as early as 1957. <strong>Today</strong> it manufactures<br />
paints and finishes for the wood finishing industry.<br />
Environmental awareness<br />
Care for the environment has always been high on Nordsjö’s<br />
agenda. The installation of a purification plant for process<br />
water and an incinerator for solvents resulted in a 90 percent<br />
reduction in the 1990 levels of emissions of both process<br />
water and organic solvents. In 1996, Nordsjö was the first<br />
European manufacturer to be granted the right to use the<br />
EU Flower, an environmental label, and in 1997 it was the<br />
first Swedish paint manufacturer granted the right to use the<br />
symbol of the Swedish Asthma and Allergy Association.<br />
At Sege today, paint is manufactured for professional use,<br />
for the DIY market, and for the wood finishing industry.<br />
The factory is the largest paint production plant in the<br />
Nordic region, producing 57 million liters in 2005, of<br />
which just over 50 percent was exported. Approximately<br />
560 people are employed at Sege, while a further 140<br />
employees work for the wholly-owned subsidiary Nordsjö Idé<br />
& Design stores, which has branches throughout Sweden.
The Nordsjö staff canteen on the Malmö site around 1960
172<br />
Bengt Hedström testing adhesives in Nacka, Stockholm
The Nobel legacy<br />
The foundation of Casco starts with a journey. Lars Amundsen –<br />
a descendant of the Norwegian polar explorer Roald Amundsen – spent<br />
some time in Argentina in the 1920s. Here, he encountered casein glue,<br />
a natural adhesive derived from dried milk curds, animal hides and<br />
bones, and lime. Casein is effective at both cold and hot temperatures,<br />
making it suitable for use in many different situations. Moreover, casein’s<br />
drying time can be controlled, making it ideal for gluing large wooden<br />
structures such as beams, floorings and panels, as well as various kinds<br />
of laminate.<br />
173<br />
Overview<br />
The importing of a process – and a name<br />
A popular name with craftsmen and consumers<br />
From solvent-based to water-based adhesives<br />
Combined adhesive and machine systems<br />
Casco moves into paints
174<br />
Casco:<br />
A journey of technical exploration<br />
The Nobel legacy<br />
The importing of a process – and a name<br />
Lars Amundsen was quick to spot the adhesive’s economic<br />
potential. On his way back home to Sweden from<br />
Argentina, he visited the United States in order to deepen<br />
his understanding of how casein might be applied as an<br />
adhesive in the growing Swedish plywood and woodworking<br />
industries. In 1928, with financial support from the<br />
legendary industrialist and financier Marcus Wallenberg<br />
and others, he founded Casco AB in Stockholm. “Casco”<br />
was coined as an abbreviation of “Casein Company of<br />
America”, Casco AB having been granted the rights to produce<br />
casein for the Nordic area. Production commenced<br />
in 1929, and in the same year the Casco logo was born.<br />
(Casco in the United States was acquired by Borden, which<br />
introduced Casco Glue as its first non-food consumer<br />
product in 1932.)<br />
Continuing the trend of introducing technologies into the<br />
Nordic region that had their industrial origins in the United<br />
States, in 1930 Casco purchased the licensing rights for<br />
soy adhesive from the Seattle-based J.F. Laucks company.<br />
Production of many different types of adhesives and<br />
binders followed during the 1930s, with two products being<br />
particularly significant. In 1934, LR-lim was introduced, a<br />
casein/rubber-latex combination for bonding sheet steel<br />
to wood, while 1938 saw the launch of Casco’s first floor<br />
adhesive for linoleum, a product derived from rye flour.<br />
These innovations were followed in 1940 by the development<br />
of Mattcement, an adhesive based on wood resin<br />
dissolved in alcohol, which was similarly deployed for the<br />
gluing of linoleum floors.<br />
In its early years, Casco AB focused on supplying the needs<br />
of the plywood and woodworking industries. Increasingly,<br />
An unusual application for casein<br />
Casco was a small company before World War II. Lars Amundsen was convinced that<br />
war was coming, so before hostilities broke out he bought as much casein as he could<br />
possibly store in Nacka. The casein became worth its weight in gold – and not only as an<br />
adhesive. With rat droppings and other tidbits removed, it was sold at a good mark-up<br />
and used for brushing pastry.<br />
however, the company branched out to also supply professional<br />
craftsmen and consumers. In 1943, Casco launched<br />
RX ® glue, an adhesive for the office and home. The product<br />
had been created by Martin Bjurvald, known by the nickname<br />
“Dr. RX.” Bjurvald had originally developed the<br />
adhesive during World War II as a way of preventing the<br />
fragmentation of window glass. Sold in a characteristic triangular<br />
gray bottle, RX ® glue is still a popular consumer<br />
product in Sweden today.<br />
A popular name with craftsmen and consumers<br />
Casco founded a Norwegian subsidiary, NorCasco, in 1935;<br />
the Danish subsidiary Kemi-Casco followed in 1946. Casco<br />
continued to serve the needs of the woodworking industries,<br />
of craftsmen in the house construction and renovation<br />
sectors, and of home-owners, developing many innovative<br />
new products, such as the weather-resistant Casconol ®<br />
(a phenol resin adhesive for the warm-pressing of plywood,<br />
1947), the resinol resin adhesive Cascosinol ® (also 1947), a<br />
film adhesive for gluing metal to wood (1949) and a latexbased<br />
adhesive for gluing heavy textiles (Textillim ® , 1952). In<br />
1953, Cascol ® wood glue was launched – an adhesive based<br />
on polyvinyl acetate for use in the furniture and woodworking<br />
industries and sold ever since in the same distinctive orange<br />
bottle. Cascol ® remains a market-leading product in many<br />
countries and is still the Casco ® product best known to most<br />
craftsmen and DIY consumers in the Nordic countries.<br />
In 1959, Casco moved into neoprene-based contact ad-<br />
hesives. Derived from synthetic rubbers, these adhesives<br />
were used for gluing flooring and for other materials. This<br />
new development was executed in the United Kingdom in<br />
collaboration with Dunlop.<br />
From solvent-based to water-based adhesives<br />
Three years later, Casco began moving operations from its<br />
home in Nacka, Stockholm, to Kristinehamn in west central<br />
Sweden. The relocation was completed in 1964, and production<br />
continues on the same site to this day. In that same year,<br />
Casco was acquired by Stockholms Superfosfat Fabriks AB,<br />
founded in 1871 for the purpose of manufacturing superphosphate<br />
at Gäddviken in Nacka. Stockholms Superfosfat<br />
was to be renamed Fosfatbolaget and later KemaNord. The<br />
change of ownership in no way inhibited Casco’s innovative<br />
drive, and in the following years it either produced or<br />
licensed in hot-melt adhesives, neoprene mastic adhesives,<br />
acrylic dispersion-type prolonged tack adhesives, epoxy<br />
adhesives, cyanoacrylate adhesives, phenol resin glues,<br />
polyurethane adhesives and resorcinol adhesives. The<br />
product technology of water-based products was developed<br />
and applied in various fields.<br />
Combined adhesive and machine systems<br />
Unsurprisingly, considering the travels of Lars Amundsen<br />
that had led to the company’s creation, Casco expanded<br />
considerably in the era following World War II, developing<br />
extensive activities in the Americas and Asia, as well as<br />
in Europe. A Finnish subsidiary, Oy Casco, was founded<br />
in 1970, and this decade also saw major expansion in the<br />
French market. The 1970s also witnessed Casco’s move into<br />
a new technological field: the development of adhesive systems<br />
in combination with the development of machines for<br />
wood gluing. Led by the service technician Ewert Perciwall,<br />
this initiative was implemented in close collaboration with a<br />
number of Casco’s market-leading customers. The com-
The Casco factory in Nacka, Stockholm, in 1950
176<br />
Casco:<br />
A journey of technical exploration<br />
The Nobel legacy<br />
Expancel ® microspheres represent an important and highly<br />
successful Casco innovation. First launched in the early 1980s,<br />
Expancel ® microspheres are small spherical plastic particles consisting<br />
of a polymer shell containing a gas. When the gas inside<br />
the shell is heated, its pressure increases and the thermoplastic<br />
shell softens, resulting in a dramatic increase in the volume of the<br />
microspheres. When fully expanded, the volume of the microspheres<br />
increases by a factor of over 40.<br />
The Expancel ® product range includes both unexpanded and<br />
expanded microspheres. Unexpanded microspheres are used<br />
as blowing agents – i.e. mixed with a base material and then<br />
expanded during the manufacturing process. They are employed,<br />
for instance, to create printing inks which swell up to produce a<br />
three-dimensional effect on wallpaper, to improve bulk and conserve<br />
fibers in paper and paperboard, and to create extremely<br />
light non-woven materials. Expanded microspheres are used to<br />
achieve low weight in plastic products and to reduce the weight<br />
and improve the application characteristics of paint and putty.<br />
Expancel was a Casco Adhesives company until 2006, when it<br />
became part of Akzo Nobel’s pulp and paper chemicals business,<br />
Eka Chemicals.<br />
bination of glue application machinery,<br />
new adhesives and new gluing methods<br />
made it possible to improve wood adhesive<br />
technology in several respects, making for<br />
shorter hardening times, automated adhesive<br />
handling, and exact dosing of adhesive<br />
and hardener – all of which reduced waste<br />
and increased productivity.<br />
In 1978, KemaNord changed its name to<br />
KemaNobel and Ove Mattsson was appointed<br />
Vice President of Casco. Mattsson<br />
was to oversee Casco’s increasing move<br />
into paints and other coatings via a series<br />
of acquisitions in the late 1970s and early<br />
1980s, with Nordjsö being acquired in 1982.<br />
In the same year, the successful launch<br />
of the floor adhesive Cascoflex ® created<br />
the basis for the market-leading position<br />
that Casco still enjoys in the Nordic floor<br />
contracting segment.<br />
Casco moves into paints<br />
KemaNobel was acquired by Bofors in<br />
1984, and the company changed its name<br />
to Nobel Industries i Sverige AB the following<br />
year. The trend of expansion via acquisition<br />
continued for Casco itself, which in 1987<br />
acquired Sadolin & Holmblad, one of the<br />
Nordic region’s largest manufacturers of<br />
paints and adhesives. The acquisition of the<br />
paint company Crown Berger in the United<br />
Kingdom, and of the adhesive company<br />
Schönox in Germany, followed two years<br />
later, further strengthening Casco’s new<br />
focus on paints and growth in adhesives as<br />
well as constituting a big step into the floorleveling<br />
compound market.<br />
By 1992, and having followed its expansion<br />
in France with expansion into the German<br />
market, Casco Nobel – as the company<br />
was now known – was split into three business<br />
units, one focused on adhesives<br />
for the woodworking and furniture industries,<br />
another on paints and adhesives for<br />
craftsmen and consumers, and a third on<br />
industrial coatings. Ove Mattsson became<br />
the head of Nobel Industries and was later to<br />
become the head of Akzo Nobel’s Coatings<br />
group following Akzo’s acquisition of Nobel<br />
Industries in 1994.<br />
Casco-branded products are today part<br />
of the company’s Industrial Activities business,<br />
serving the woodworking and furniture<br />
trades, as well as DIY users and professional<br />
craftsmen in the building sector.
A Casco calendar girl, November 1965.<br />
While retaining its original logo showing<br />
two draught horses pulling in opposite<br />
directions, Casco made full use of changing<br />
styles to illustrate the adhesive properties<br />
of its products<br />
177
178<br />
Liljeholmen candles
The Nobel legacy<br />
Founded as Barnängens Tekniska Fabrik in 1868, Barnängen owed its<br />
genesis to the failure of another company, one which had been established<br />
by entrepreneur J.F. Ögren. Ögren had developed an innovative<br />
“writing and copying ink” and set up his own company to market the<br />
invention. The firm eventually ran into economic difficulties, however.<br />
At this point, a wholesaler named Johan Wilhelm Holmström took<br />
control of the failing enterprise, bringing in new capital and enabling a<br />
new firm to be established. This intervention was the basis of what would<br />
later become Barnängen.<br />
179<br />
Overview<br />
The move into fine soaps<br />
Barnängen adopts the bear symbol – literally<br />
Creative marketing<br />
Structural expansion<br />
Educating people in beauty care<br />
Acquisition by Henkel
180<br />
Barnängen:<br />
Victorian paternalism and personal care products<br />
The Nobel legacy<br />
In 1868, Barnängen’s production facilities were relocated to<br />
a building in Stockholm known as “Tottieska Malmgården”,<br />
which can still be seen today at the Stockholm openair<br />
museum of folk life in Skansen. The new factory was<br />
given the name “Barnängens Tekniska Fabrik”. It mainly<br />
manufactured ink, shoe polish and – like Boldoot, another<br />
<strong>AkzoNobel</strong> company from years gone by – Eau de Cologne,<br />
which was sold in highly elegant packaging.<br />
The move into fine soaps<br />
A large market for soap was developing, and Barnängen<br />
commenced the manufacture of soap in 1873. It also manufactured<br />
other consumer products including, for example,<br />
vanilla sugar, baking powder and tooth powder. The company’s<br />
range of soaps was rapidly expanded, and by 1888,<br />
Barnängen was producing no fewer than 88 different<br />
types. One of these became particularly well-known – the<br />
“Savon de l’Exposition”, which was specially designed to<br />
be launched at the Stockholm Exhibition of 1897.<br />
All goods were manufactured by hand. Tooth powder was<br />
made from shells that were purchased by the sack-load,<br />
to be powdered in mortars and then sieved. The ink was<br />
drawn off by hand into bottles, usually by women. Soap<br />
was made in double-walled boilers, which were heated<br />
over open fires.<br />
Johan Wilhelm Holmström combined a feeling for future<br />
economic realities with a philanthropic and patriarchal view<br />
of his responsibilities. He was a modern employer by the<br />
standards of the period. Barnängen’s personnel received<br />
free medicines and medical care as early as 1870, and a<br />
holiday entitlement of four days a year was introduced at<br />
the start of the 20th century.<br />
Barnängen adopts the bear symbol – literally<br />
Besides his commercial interests, Holmström was also<br />
deeply fascinated by nature and animals. This led to<br />
Barnängen adopting the symbol of the bear – embodying<br />
strength – as its trademark. The adoption was quite literal.<br />
A specially built cage on the factory site equipped with both<br />
bathroom and bedroom housed the animal, and the bear<br />
was registered as Barnängen’s factory mark at The Swedish<br />
Patent and Registration Office.<br />
Sales increased dramatically under the leadership of<br />
Holmström. The range of goods expanded and subsidi-<br />
aries were formed outside Sweden. A factory was founded<br />
in St. Petersburg in 1880 to produce mainly ink. Barnängen<br />
had been active on the Danish and Norwegian markets<br />
since 1870, and factories were eventually founded in these<br />
countries too.<br />
Creative marketing<br />
The range of goods and their marketing was varied with<br />
considerable imagination, and Barnängen soaps were<br />
given the most elegant packaging. Picturesque figures in<br />
soap – of bathing children, angels, fruits and the like – were<br />
brought onto the market in the 1920s. Celebrity comic actor<br />
and dialect specialist Åke Söderblom also stood model for<br />
Barnängen soaps, as did “Koling”, a figure from children’s<br />
literature created by the writer and artist Albert Engström.<br />
The market for ink was considerable: Barnängen’s product<br />
was improved and its offering widened. The round bottles<br />
in which the ink had hitherto been sold were exchanged<br />
in 1919 for square bottles with attractive labels. By 1919,<br />
sales had doubled.<br />
Another important product which was to become extremely<br />
well known was the mouthwash Vademecum, which was<br />
introduced in 1897. The first bottle of Vademecum was<br />
sold in Lannes Speceriaffär in Stockholm, while outside<br />
of Stockholm it was the Lejonet pharmacy in Malmö<br />
that registered the first sale. Vademecum is still on the<br />
market today.<br />
Structural expansion<br />
In 1929 Barnängen became the core of a new company<br />
called Aktiebolaget Kema. This company was created on the<br />
initiative of Robert Ljunglöf, Dr Harald Nordensen and N.E.<br />
Westerdahl, who decided to rationalize the technical aspects<br />
of production as well as the sales processes. They acquired<br />
all the shares in Barnängen and went on to buy several other<br />
Gothenburg-based companies, including Eneroth & Co.,<br />
Fabriken Tomten and Vignäron. The Lars Montén company<br />
in Stockholm was also acquired together with Liljeholmens<br />
Stearinfabriks AB.<br />
A year later Barnängens Tekniska Fabriks AB moved to Lars<br />
Montén’s spacious and modern industrial site in the Alvik<br />
area of Stockholm. The candle-making part of Lars Montén’s<br />
business was incorporated in Liljeholmen. Step by step, the<br />
Alvik site was expanded as the company’s activities were<br />
increasingly centralized, with production, marketing and<br />
research being relocated there from Gothenburg. In 1937<br />
the companies were formally joined together under one<br />
management as Kemabolagen (“the Kema companies”).<br />
Kemabolagen went on to acquire Sterisol AB, a disinfectants<br />
company, from Bofors Nobelkrut the following year.<br />
Forskningslaboratoriet LKB – a joint research and development<br />
laboratory belonging to Liljeholmens Stearinfabrik, AB<br />
Kema and AB Stockholms bryggerier – was established in<br />
1942 under the leadership of Nobel Prize winner Theodor<br />
Svedberg. The ensuing three decades were characterized<br />
by heavy investment in research, product development<br />
and marketing.<br />
Henrik Gahns AB, a company in Uppsala that had competed<br />
with Barnängen with virtually the same range of hygiene<br />
products, was acquired in 1964. Henrik Gahns had approximately<br />
700 articles when it was taken over, while Barnängen<br />
had some 600. The modern requirement for portfolio<br />
rationalization meant that numerous product lines were<br />
withdrawn from the market, to the great disappointment of<br />
many consumers.<br />
Educating people in beauty care<br />
An interesting and well-known component of Barnängen’s<br />
activities was the “Shantung School”, which opened in<br />
1950. It was initially intended to offer further education<br />
to people working in the beauty products sector, but<br />
increasing interest among consumers for the products led<br />
it to expand its offering to include education in beauty treatments<br />
that could be done in the home. A new Shantung<br />
School was opened in Alvik in 1962 to train women of all<br />
ages in modern beauty care. There were also courses for<br />
specific professional groups, such as air hostesses and<br />
fashion models, while education in cosmetic science was<br />
given under the guidance of the Swedish National Board<br />
of Education.<br />
During the 1960s, Barnängen enjoyed a significant cooperation<br />
with Stockholms Superfosfat and its subsidiaries<br />
regarding distribution and sales both in Sweden and<br />
abroad. Stockholms Superfosfat initially bought a minority<br />
interest in the company, going on to take complete control<br />
of the company after acquiring of the majority of the<br />
shareholding between 1970 and 1973. It was acquisition by<br />
Stockholms Superfosfat that eventually brought Barnängen<br />
into Nobel Industries and subsequently Akzo Nobel.
Finishing lipsticks produced by Barnängen A selection of Barnängen personal care products
182<br />
Barnängen:<br />
Victorian paternalism and personal care products<br />
The Nobel legacy<br />
A new factory at Ekerö, not far to the west of Stockholm,<br />
was opened on 22 February 1983 by the King and Queen<br />
of Sweden. Soap manufacture moved there in 1989, the<br />
last operation to do so, and Barnängen’s activities at Alvik<br />
came to an end.<br />
Acquisition by Henkel<br />
In 1992 Nobel Industries was owned by Nordbanken and<br />
was just starting to recover from the Gamlestaden financial<br />
crisis. The company was in severe need of liquid capital to<br />
strengthen its balance sheet and decided to sell its consumer<br />
products division. The business was highly valued<br />
by the market and was organizationally separate from the<br />
chemicals and coatings activities. The consumer products<br />
division was therefore divested to the German consumer<br />
goods company Henkel in January 1992, and the company’s<br />
name was changed to Henkel Barnängen AB. Just like<br />
Barnängen, Henkel is a company with a fine tradition. It was<br />
founded in Germany in 1876 by Fritz Henkel, and remains<br />
a family-owned company to this day. With its incorporation<br />
into the Henkel sphere, Barnängen became a member of<br />
an international group with the financial and organizational<br />
resources required to carry on the activities that Barnängen<br />
has pursued so successfully since its foundation in 1868.
Training in modern beauty care at the<br />
Shantung School in the 1960s<br />
183
184<br />
Magnus Bernström (middle) and Lars Olsson (right) photographed<br />
outside their workshop in Södertälje not long after the company’s<br />
foundation. On the left is Egon Johansson, their first employee
The Nobel legacy<br />
Berol’s foundation was a direct response to a consumer need – fishing<br />
lines that did not break when an angler had a really large salmon on the<br />
hook. At the time of the company’s foundation in 1937, anglers used<br />
cotton fishing lines, which deteriorated through the action of sunlight and<br />
water and frequently broke. A keen angler by the name of Bernström<br />
felt that he lost too many fish this way, so he decided that he would<br />
create a more durable line. Bernström was a businessman and knew<br />
little of chemistry. But he was friends with a pharmacist named Olsson.<br />
Bernström challenged his friend to use his knowledge of chemistry to<br />
create an impregnation agent which would make fishing lines stronger.<br />
Olsson produced several variants of just such an agent, which were<br />
given evocative names such as Blue Ribbon, Green River, Black River<br />
and Rock River. The two friends took the starting letters of their surnames<br />
to provide a name for the limited company which they set up to<br />
market the new products, and AB Berol-Produkter was registered at the<br />
Swedish Patent and Registration Office on April 12, 1937.<br />
185<br />
Overview<br />
Protection from moisture<br />
Product diversification<br />
Acquisition by MoDo<br />
The need for new products<br />
A new source for ethylene<br />
Consolidation within MoDoKemi<br />
The creation of Berol Kemi
186<br />
Berol:<br />
From consumer products to process ingredients<br />
The Nobel legacy<br />
Surfactants<br />
The word surfactant derives from “surface active agent”. Also<br />
known as “tensides”, they lower surface tension of the medium<br />
in which they are dissolved. Each surfactant molecule has a hydro-<br />
philic (water-loving) head and a hydrophobic (water-hating) tail that<br />
both repels water and attaches itself to oil and grease, making<br />
them useful in the removal and suspension of dirt. Widely used<br />
in domestic and industrial cleaning processes, their application<br />
depends on the specific type of electrical charge in the molecule.<br />
Protection from moisture<br />
Production of the impregnation agent commenced<br />
in a building for small businesses in<br />
the town of Södertälje, in central Sweden.<br />
Berol then expanded into boot impregnation,<br />
offering one set of products for the uppers and<br />
another for the soles. Impregnation agents<br />
for leather jackets and sheepskin fleece followed.<br />
The company’s central proposition<br />
had become “Impregnation: protection from<br />
moisture” – or hydrophobization, to use the<br />
scientific term.<br />
Product diversification<br />
The company had six employees by 1942.<br />
Sweden’s capacity to import and export<br />
goods was effectively suspended during<br />
World War II, presenting considerable<br />
opportunities for anyone who could manufacture<br />
something from raw materials that<br />
were available within the country. Berol<br />
began supplying the Swedish armed forces<br />
with “protection-from-moisture” products,<br />
as well as an anti-mosquito agent with the<br />
brand name “Nomosquito”. The factory in<br />
Södertälje rapidly became too cramped,<br />
and Berol moved to Mölndal, just to the<br />
south of Gothenburg, shortly after the end<br />
of the war. In addition to producing hydrophobization<br />
agents, Berol diversified at this<br />
time into the manufacture of weaving glue,<br />
emulsifiers, mercerizering agents, dye fixatives<br />
and non-ionic, surface-active products<br />
for washing powders.<br />
Acquisition by MoDo<br />
Sweden’s isolation during World War II and<br />
the resulting shortages of vital chemical<br />
products led Sweden’s chemicals manufacturers<br />
to conduct a thorough review of<br />
the resources available to them. A company<br />
called Mo och Domsjö AB (MoDo) –<br />
whose origins were in forestry and cellulose<br />
processing – had been applying for some<br />
time for a license to manufacture alcohol<br />
(ethylene glycol) from waste products from<br />
its paper mill in Örnsköldsvik. The license<br />
was eventually granted in 1940. The ethanol<br />
thus produced created the foundations for an<br />
extensive alcohol-based chemical industry,<br />
and Domsjö-based MoDo started producing<br />
ethylene glycol (for radiator fluid), acetic<br />
acid and butanol. Berol, meanwhile, chiefly<br />
supplied the textiles industry, and MoDo saw<br />
the potential advantages of combining the<br />
two companies’ technological resources,<br />
while at the same time gaining access<br />
to Berol’s extensive distribution network.<br />
MoDo therefore acquired AB Berol-Produkter<br />
in 1945, although it did not change the<br />
company name.<br />
The need for new products<br />
Ethylene oxide rapidly became Berol’s dominant<br />
raw material. Skilled researchers and a<br />
proactive and energetic company management<br />
developed many special products for the<br />
viscose and cellulose pulp industries, to which<br />
MoDo was a leading supplier. At the same<br />
time, however, with the end of World War II,<br />
the import of products from abroad became<br />
possible once more, and Berol’s product<br />
range needed radical improvement in order to<br />
remain competitive.<br />
A plant for the manufacture of nonylphenol<br />
came online at the start of the 1950s. This<br />
product, and the related dinonylphenol produced<br />
in the same factory, rapidly became<br />
important raw materials, from which surfactants<br />
(later to be known as “tensides”)<br />
could be manufactured using ethylene<br />
oxide. Berol also produced ethylene dichloride,<br />
spinning bath agents for the viscose<br />
industry, asphalt fixatives and dye fixatives.<br />
The amount of alcohol used in Domsjö as<br />
a starting material for conversion into other<br />
chemical products increased rapidly. The<br />
company’s own production was insufficient
Swedish premier Olof Palme visits the Berol<br />
plant in Stenungsund in November 1970
188<br />
An amine plant in Stenungsund in 1977.<br />
In Berol’s own words, “a champion site”
King Gustav VI Adolf inaugurates the works in Stengungsund on June 16,<br />
1964, accompanied by representatives of Mo och Domsjö<br />
189
190<br />
Berol:<br />
From consumer products to process ingredients<br />
The Nobel legacy<br />
for its growing needs, and even supplies from<br />
other Swedish manufacturers could not make<br />
up the shortfall. It was necessary to import<br />
large amounts from various sources. As a<br />
result of state subsidies, some were able to<br />
offer particularly attractive prices, and much<br />
alcohol was sourced in the form of Cuban<br />
molasses or red wine that was surplus to<br />
demand in France.<br />
A new source for ethylene<br />
Meanwhile, a new source of ethylene was<br />
appearing. The cracking of various hydrocarbon<br />
fractions at oil refineries allowed<br />
ethylene to be produced cheaply in very<br />
large quantities. In the long run, alcohol was<br />
not able to compete as a starting material<br />
for ethylene.<br />
In 1960, MoDo came to the inescapable<br />
conclusion that it would have to invest in<br />
ethylene production from petrochemical<br />
sources, and this marked the start of a new<br />
phase in the development of the chemical<br />
industry: the period of petroleum chemistry.<br />
Domsjö, however, was not a suitable<br />
location for this investment. MoDo therefore,<br />
under an agreement with Stockholms<br />
Superfosfat Fabriks (Fosfatbolaget) and the<br />
From consumer to<br />
business-to-business focus<br />
U.S. oil company Esso, built a petrochemical<br />
ethylene plant at the ice-free, deep-<br />
water port of Stenungsund, some 45 km<br />
north of Gothenburg.<br />
Production of ethylene oxide direct oxidation<br />
started at Stenungsund in 1963, although<br />
the production of ethylene oxide-based,<br />
non-ionic tensides continued for a considerable<br />
period in Domsjö before eventually<br />
being transferred to Stenungsund. Berol’s<br />
presence in Stenungsund was manifest<br />
in the form of newly constructed research<br />
laboratories built on a hill above the ethylene<br />
oxide factory. Marketing operations were<br />
now carried out under the name Berol AB.<br />
Consolidation within MoDoKemi<br />
Chemical operations in MoDo were diversified<br />
in the 1960s as MoDo purchased various<br />
other companies. Svenska Oljeslageri<br />
Aktiebolaget (SOAB) in Mölndal was acquired<br />
in 1963, with acquisition of AB Syntes<br />
in Nol following some years later. There<br />
were now production plants and research<br />
and development laboratories at four locations:<br />
Domsjö, Stenungsund, Mölndal and<br />
Nol. Marketing offices were located in<br />
Stockholm, Mölndal and Nol, each of them<br />
In its early years, Berol’s products were sold by traveling salesmen, who carried samples<br />
of the company’s products in their luggage. Many years passed before Berol employed its<br />
own sales staff. Exports grew slowly in the early years, initially to Denmark and Finland, then<br />
to England, and subsequently to continental Europe and North America. Berol’s first customers<br />
were anglers – direct consumers of the company’s products. As it grew, however,<br />
Berol shifted its focus and started selling its products to large companies that manufactured<br />
consumer goods such as cleaning agents, paints, varnishes, paper and pesticides.<br />
having its own customer categories and<br />
principal activities. In 1971, MoDo concentrated<br />
all its chemicals activities in one company,<br />
MoDoKemi AB, and established its<br />
head office in Stenungsund.<br />
Berol consequently disappeared as an individual<br />
company name, but lived on in the<br />
registers as a shelf company. The name<br />
“Berol” was, however, preserved in the brand<br />
names of several products, such as BEROL ®<br />
09, BEROL ® 563, and BEROL ® VISCO ® 31.<br />
The prefix “Ber” was retained as an important<br />
part of brands such as BERMODOL ®<br />
(the designation of polyols) and BEROCELL ®<br />
(tensides for the cellulose industry).<br />
The creation of Berol Kemi<br />
The investments required to keep abreast<br />
of developments in the petrochemical field<br />
were becoming ever larger, and MoDo<br />
needed extremely large sums to fund its<br />
expansion into producing chemicals for the<br />
pulp and paper industries. MoDo therefore<br />
joined forces with Statsföretag AB and<br />
spun off its chemicals operations to the<br />
Swedish state in 1973, for which the name<br />
Berol was revived: Berol Kemi AB was<br />
presented as the new name for the entire<br />
chemicals group in 1974. Three years later,<br />
an oxo factory for the production of butyraldehyde<br />
(the starting material for butanol,<br />
octanol and octanoic acid) was built a few<br />
kilometers north of Berol’s Stenungsund<br />
plant. In the same year, Berol Kemi bought<br />
MoDo’s production units for cellulose<br />
derivatives at Domsjö.<br />
Berol Kemi AB joined the Akzo Nobel fold,<br />
along with other Nobel businesses, as a<br />
result of the creation of the Dutch-Swedish<br />
conglomerate in 1994 and became part<br />
of the company’s Surface Chemistry business<br />
unit. Currently <strong>AkzoNobel</strong>’s Surface<br />
Chemistry business is a global producer of<br />
surface active agents used in a wide variety<br />
of applications. The ethylene-focused operations<br />
also continued and now form part of<br />
<strong>AkzoNobel</strong>’s Functional Chemicals business.<br />
As process ingredients, Berol’s products had the task of reinforcing the properties of the<br />
process components – offering, for instance, increased production, lower manufacturing<br />
costs, increased sensitivity to the environment, or higher quality of the final product. These<br />
products do not normally remain in the final product sold to the consumer, being destroyed<br />
or neutralized in some manner during manufacturing. Berol’s product range also included<br />
those that are used as starting materials for further processing, for example, ethylene<br />
amines, ethanol amines and ethylene oxide.
The interior of the Mölndal works in the early<br />
1980s. The operator is Björn Wickman<br />
191
192<br />
A 19th century paint factory. Crown Berger is<br />
unusual among <strong>AkzoNobel</strong>’s paint companies<br />
in that wallpaper played an important role in<br />
the firm’s early development
The Nobel legacy<br />
The name of Crown Berger brings together a brand from the 20th<br />
century and the enterprise of a founding father from the 18th century.<br />
The Crown ® name was first used to launch Crown ® Plus Two ® paints in<br />
Britain in 1966. Designed to challenge ICI’s highly popular Dulux ® brand,<br />
the first Crown ® products on the market were a non-drip polyurethane<br />
gloss and a vinyl-gel emulsion paint.<br />
193<br />
Overview<br />
The Wallpaper Manufacturers Ltd.<br />
The Walpamur ® paint brand<br />
1922: A pivotal year<br />
The launch of the Crown ® brand<br />
Berger joins Crown<br />
Acquisition by Nobel Industries<br />
A flagship brand within Akzo Nobel<br />
Responding to changing market requirements<br />
Landmark applications
194<br />
Crown Berger:<br />
From innovative wallpapers to innovative paints<br />
The Nobel legacy<br />
Berger ® , meanwhile, comes from Lewis<br />
Berger (1741–1814), a German immigrant to<br />
Great Britain whose original name was Louis<br />
Steigenberger. Berger established a paint<br />
manufactory in the East End of London in<br />
1760. Known as Lewis Berger & Sons from<br />
1799–1879 and Lewis Berger & Sons Ltd<br />
from 1879 onwards, this company – “manufacturers<br />
of fine dry colors, paints and varnishes”<br />
– specialized in supplying materials<br />
to the decorating profession.<br />
If it unites the concepts of brand awareness<br />
and entrepreneurship, the name of<br />
Crown Berger conceals, on the other hand,<br />
many other distinctive associations – most<br />
notably with the manufacture of wallpaper.<br />
Crown Berger as a company was created<br />
as late as 1988, more than 20 years after<br />
the launch, by Reed International P.L.C., of<br />
the Crown ® brand itself (Reed International<br />
is now known as Reed Elsevier PLC). That<br />
year saw the culmination of a series of<br />
mergers within the British paint industry<br />
which had commenced in the 1960s and<br />
which brought together, among other<br />
notable companies, John Hall and Sons<br />
(manufacturers of putty and paint, founded<br />
in Bristol in 1788) and Jenson and Nicholson<br />
(paint manufacturers, founded in London<br />
around 1840).<br />
The Wallpaper Manufacturers Ltd.<br />
One of the most important of these companies<br />
was Walpamur, or The Wallpaper<br />
Manufacturers Ltd., to give it its full name.<br />
Walpamur was founded in Darwen, near<br />
Bolton in Lancashire, north west England,<br />
in 1899. The origins of this company were<br />
intricate, stemming back to a paper mill established<br />
in Darwen by one Richard Hilton<br />
in 1818. Hilton’s thriving business was acquired<br />
in 1844 by Charles and Harold Potter,<br />
members of an established Lancashire<br />
family who already operated a calico business<br />
in the district. Capitalizing on the<br />
growing popularity of printed wallpapers,<br />
the Potter brothers added paper staining<br />
to the existing paper manufacturing operations.<br />
Their products soon grew to be world<br />
famous. An important factor in their success<br />
was the contribution of James Huntingdon,<br />
Drinking to the health of the company<br />
“During these vital years from 1922 onwards, Walpamur may be said to have grown up and<br />
to have attained that robust vitality which is now one of its characteristics. When in 1926 the<br />
General Strike hit the country, the determination and loyalty of the staff were put to a severe<br />
test. Despite the difficulties, work carried on, the products continued to be sent out, and<br />
bills with the wording “Paints for Houses” were stuck on the lorries so that the strikers would<br />
allow them through. It is related that when a tyre of one lorry burst near Wigan the miners<br />
on strike unloaded two tons of paint and helped to replace the wheel, and were happy to<br />
accept ten shillings from the driver with which to drink the health of the Company.”<br />
From Walpamur Golden Jubilee 1906–1956, The Walpamur Co. Ltd., Darwen and<br />
London 1956<br />
who worked as a designer for paper stainers<br />
and calico printers, and who was persuaded<br />
to join the Potters as a partner in the firm<br />
of Potter & Co. in 1864. Ten years later,<br />
James Huntingdon’s two brothers likewise<br />
joined this Darwen concern as partners.<br />
The son of one of these brothers, Major A.<br />
W. Huntingdon, was also to join the firm<br />
as a partner, becoming a director of The<br />
Wallpaper Manufacturers Ltd. at its foundation<br />
in 1899. And it was Major Huntingdon<br />
who encouraged his fellow directors to<br />
branch out from wallpaper manufacture into<br />
paint manufacture in 1906.<br />
The Walpamur ® paint brand<br />
The major had a specific type of paint<br />
in mind, however. From 1904 onwards,<br />
researchers in Walpamur’s Darwen laboratory<br />
had been attempting to develop a reliable<br />
form of water-based paint. Two years<br />
later, sufficient progress had been made<br />
to justify the commencement of commercial<br />
manufacture. Originally named Hollins<br />
distemper, this new paint was so favorably<br />
received by customers that it was decided<br />
to give the product a more distinctive name.<br />
It was rebranded Walpamur ® after the name<br />
of its parent company.<br />
As the name Walpamur ® would suggest,<br />
wallpaper was still a core product of the<br />
company, which had very successfully<br />
exploited the late-19th century vogue for<br />
embossed wallcoverings. The linseed oilbased<br />
wall fabric Lincrusta ® (invented by<br />
the pioneer of linoleum, Frederick Walton, in<br />
1877) was first manufactured in Darwen in<br />
1887. Its lighter rival, Anaglypta ® – which was<br />
manufactured from cotton and pulp and had<br />
been invented by Frederick Walton’s former<br />
employee, Thomas Palmer, in 1883 – joined<br />
the company’s product portfolio in 1888.<br />
The combination of wallpaper manufacture<br />
and paint manufacture was to characterize<br />
the activities of Walpamur, and subsequently<br />
Crown Berger, for many decades to come.<br />
Although the move into paint had been<br />
inspired by the search for an effective waterbased<br />
paint, Walpamur nevertheless commenced<br />
production of oil paints in 1910.<br />
The raw material shortages brought on by
Crown’s logo adorned the shirts of Liverpool FC at a time when<br />
Liverpool was the UK’s premier football team and one of the<br />
predominant clubs in Europe<br />
Walpamur Quality Paints, a brand whose reach extended far beyond its<br />
original home market of Britain. Here employees are filling cans of paint<br />
in Papua New Guinea in the 1960s
196<br />
Crown Berger:<br />
From innovative wallpapers to innovative paints<br />
The Nobel legacy<br />
the outbreak of World War I put a brake on paint manufacture,<br />
but they also created new openings. Walpamur<br />
started making varnish, which is a key component in munitions<br />
production. In 1915, The Walpamur Company Limited<br />
(or WPM) was created to focus exclusively on paint and<br />
varnish manufacture.<br />
1922: A pivotal year<br />
The Walpamur Company Limited grew rapidly in the years<br />
following World War I, such that by 1922 the company<br />
employed 50 “travelers exclusively in paint”. 1922 was a<br />
pivotal year in WPM’s evolution, for it was in this year that<br />
Major J.G.G. Mellor was appointed director in charge. Major<br />
Mellor commenced a major program of reorganization and<br />
expansion which involved the re-engineering of manufacturing<br />
processes and the creation of a nationwide depot<br />
network and delivery fleet. The company’s product portfolio<br />
was expanded by the addition of highly successful new<br />
brands such as Duradio ® Enamel Paint and Muromatte Flat<br />
Oil Paint, and its markets expanded to include Argentina and<br />
Canada, with branches being established in Buenos Aires in<br />
1922 and Montreal in 1929.<br />
The company also grew through acquisitions. In 1915, it<br />
had acquired the Manchester-based wallpaper manufacturers<br />
Kinder & Co.; in 1929 it purchased the London-based<br />
paint manufacturer Arthur Sanderson and Sons Ltd. In the<br />
same decade, Walpamur Company Limited had significantly<br />
increased its R&D operations, opening a new laboratory<br />
staffed with highly trained chemists in Darwen in 1927.<br />
In 1931, WPM amalgamated all its embossed wall covering<br />
operations at Darwen. Later during the 1930s, the research<br />
and manufacture of industrial coatings also commenced at<br />
the Lancashire facility.<br />
World War II again saw Walpamur producing great quantities<br />
of varnish, as well as paint, for ammunition, military<br />
vehicles and camouflage. It also produced a range of<br />
special products for aircraft. The company was awarded<br />
royal warrants in 1949 and 1955, and in 1954 a new plant<br />
opened at Darwen to produce cellulose paints for industrial<br />
finishes. Smith and Walton, a paint manufacturer based in<br />
Haltwhistle, Northumberland, was acquired in 1963. Then,<br />
in 1965, WPM was itself purchased by Reed International, a<br />
diversified company which had originally been established<br />
as a newsprint manufacturer by Albert E. Reed in Kent,<br />
England, in 1894.<br />
The launch of the Crown ® brand<br />
It was under the direction of Reed International that the<br />
Crown ® brand was launched. The “ease and convenience”<br />
properties of decorative coatings took on increasing<br />
importance during this era, as paint manufacturers began<br />
targeting not just trade professionals, but also consumers<br />
with their advertising and product literature. Crown ®<br />
paints were promoted heavily on television throughout the<br />
1970s and 1980s. Their logo even adorned the shirts<br />
of Liverpool FC at a time when Liverpool was the UK’s<br />
premier football team and one of the most successful<br />
clubs in Europe.<br />
Such was the success and power of the Crown ® brand<br />
that in 1975 the Walpamur Company changed its name<br />
to Crown Decorative Products. Five years later, the<br />
Relief Decorations operations that had been so vital<br />
to the company’s growth in the late Victorian era were<br />
transferred into the Crown Paints Division within Crown<br />
Decorative Products.<br />
Six years thereafter, in 1986, Crown Decorative Products<br />
introduced the first one-coat paint for wood and metal.<br />
Aptly named Solo ® Gloss, this self-undercoating gloss was<br />
achieved by the addition of extra pigments in the formulation,<br />
which lent the paint both high opacity and extreme<br />
brilliance. Solo ® Gloss was followed by an emulsion counterpart<br />
called Crown ® Advance ® One Coat. Both paints<br />
were welcomed by the growing DIY market, and a new<br />
one-coat system category was created as rival manufacturers<br />
strove to bring out their own versions of Crown ®<br />
Decorative Products’ breakthrough concept.<br />
The 1980s was generally a difficult decade for manu-<br />
facturers in the UK, but Crown represented a rare exception,<br />
continuing to invest, innovate and grow in the face of<br />
a stagnant economy and widespread industrial unrest.<br />
A new £3.5 million oil-based manufacturing plant was<br />
opened at Darwen in 1982, to be followed in 1987 by<br />
a new £3.5 million emulsion manufacturing plant, again<br />
at Darwen. Indeed, 1987 was to prove a very busy, and<br />
highly significant, year for Crown. Computerized manufacturing<br />
process and automated filling and packing<br />
operations were introduced, and the company attained<br />
quality systems certification for its paint products.<br />
Arguably the most important event of the year, however,<br />
was Reed International’s disposal of Crown Paints<br />
to Williams Holdings.<br />
Berger joins Crown<br />
Williams Holdings greatly increased the efficiency of Crown<br />
Paints. It also brought in the Berger ® name, acquiring from<br />
Frankfurt-based multinational Hoechst a company called<br />
BJN, which included the successor organizations to Lewis<br />
Berger & Sons and John Hall & Sons (creators in 1920 of the<br />
highly successful Brolac ® brand). This huge consolidation<br />
was followed in 1989 by Crown Berger’s purchase of Jacoa<br />
from the diversified UK group Ward White.<br />
Acquisition by Nobel Industries<br />
A year later, in May 1990, Nobel Industries purchased Crown<br />
Berger. As part of Nobel Industries, Crown Berger continued<br />
to demonstrate its commitment to innovation and quality. In<br />
May 1993, the company was awarded the Queen’s Award<br />
for Technological Achievement.<br />
A flagship brand within Akzo Nobel<br />
Following Nobel Industries’ 1994 merger with Akzo, Crown<br />
Paints – as the company was generally known at this<br />
point – was positioned as the flagship brand within the<br />
UK’s decorative coatings market, alongside Akzo’s own<br />
decorative coatings brands – Sandtex ® , Permoglaze ® , and<br />
Macpherson ® Paints.<br />
Within this structure, Sandtex ® – launched as recently as<br />
1978 – is today the market leader in exterior coatings. This<br />
success owes much to the kind of skilful marketing that<br />
turned Crown ® into such a dominant brand. Permoglaze ® ,<br />
purchased by Akzo Coatings in 1986, complements Crown ®<br />
Berger ® and Sandtex ® by acting as a leading brand for professional<br />
users. And Macpherson, whose decorative coatings<br />
business was purchased by Akzo from the Swedish<br />
Kemira in 1991, plays its role in the consumer side of the<br />
business by, for instance, acting as exclusive suppliers of<br />
branded paints to the Woolworth chain.<br />
Responding to changing market requirements<br />
As Akzo Nobel’s flagship UK decorative coatings brand,<br />
Crown ® maintained an intense focus on innovation. This<br />
included the launch of new products such as the Decorative<br />
Effects range (around 1996) including Colour Effects,<br />
Woodwash ® , Smooth Velvet ® and Softsand ® . Much of
Crown Berger:<br />
From innovative wallpapers to innovative paints<br />
The Nobel legacy<br />
this innovation was in response to fast-moving changes in<br />
consumer demands. For instance, 1997 saw the launch<br />
of a Crown ® Period Colors ® range designed to create an<br />
authentic period feel in any home. In 2000, an international<br />
color magazine called Key was launched to provide inspiration<br />
and advice to consumers across Europe. New products<br />
were also developed to meet the requirements of retailers,<br />
one example being Quick-Dry Satin (2001) following a direct<br />
request from B&Q (a leading British DIY chain).<br />
Landmark applications<br />
Although strongly focused on the consumer market, Crown ®<br />
Berger ® also had a significant industrial products operation.<br />
In the 1980s, when its Anaglypta ® embossed wallpaper was<br />
still in high demand, Crown ® Berger ® was commissioned to<br />
develop a special industrial coating to coat the walls of the<br />
Channel Tunnel, London’s Tower and Hammersmith Bridges,<br />
the Severn Bridge, London’s Docklands, Liverpool’s Albert<br />
Docks, the Odeon Cinema chain, The Theatre Royal Drury<br />
Lane and the Tate Britain art gallery are just a few of the<br />
landmark structures to have benefited from Crown Berger’s<br />
century of expertise in paint manufacture.<br />
The 19th century embossed wall covering Lincrusta ® was<br />
still on the market in the early 21st century. Sold along with<br />
the Anaglypta ® brand to Imperial Home Décor in 2001, it was<br />
acquired by Crown Wilman Vymura in 2003. Lincrusta ® is<br />
still made in Morecambe, on England’s Lancashire coast<br />
– and a version dating from 1896 is highly popular for renovating<br />
Victorian houses in the United Kingdom.<br />
Regulatory approval for Akzo Nobel’s acquisition of ICI in<br />
January 2008 was made conditional on the divestment of<br />
a number of its decorative coatings businesses with combined<br />
revenues (in 2006) of c300 million. As a consequence,<br />
Crown was sold to Endless LLP, an independent private<br />
equity house. The divestment will include Crown’s manufacturing<br />
and warehouse sites in Darwen, Hull, Warrington,<br />
Dublin and Belfast; its Crown Decorator Centre network;<br />
and the Crown ® , Crown Trade ® , Berger ® , MacPherson ® ,<br />
Permoglaze ® and Sandtex ® brands.<br />
197
198<br />
1<br />
2<br />
Courtaulds, p. 201<br />
Bocking<br />
Braintree (Bocking)<br />
Chelmsford (Bocking)<br />
Halstead (Bocking)<br />
Pebmarsh (Bocking)<br />
Coventry<br />
Leigh<br />
London<br />
International, p. 215<br />
Newcastle-on-Tyne<br />
Felling (Newcastle-on-Tyne)<br />
Gateshead (Newcastle-on-Tyne)<br />
marks the place on the map where the company<br />
in question (see the left-hand column) was<br />
founded.<br />
Locations named in a chapter are listed on the<br />
left under the name of the relevant company. The<br />
first location named is the place where the company<br />
was founded; all other locations are listed<br />
alphabetically.<br />
If locations cannot be distinguished from one<br />
another because they are too close together, a<br />
place already shown on the map or one that is<br />
central to those locations is given in parenthesis.<br />
Ireland<br />
Dublin <br />
Belfast <br />
Glasgow <br />
Scotland<br />
Wales<br />
Aberdeen <br />
Edinburgh<br />
Newcastle-on-Tyne <br />
Leeds<br />
Manchester<br />
Liverpool<br />
Cardiff<br />
Bristol<br />
Birmingham<br />
<br />
England<br />
2<br />
France<br />
<br />
1<br />
Bocking
199
200<br />
Samuel Courtauld III (1793–1881), the founder<br />
of Courtaulds and a titan among Victorian<br />
entrepreneurs
The Courtaulds legacy<br />
The Courtauld family came to England, as Huguenot refugees, between<br />
1685 and 1700. Its first link with textiles was forged in 1775, when George<br />
Courtauld I was apprenticed to a silk “throwster” or manufacturer; his<br />
master belonged to the settlement of Huguenots practicing in the silk<br />
industry in London’s Spitalfields district. Around the turn of the 19th century,<br />
George Courtauld I was managing a silk-throwing mill, owned by a<br />
London firm, at Pebmarsh in Essex. In 1815, he set up a similar mill of his<br />
own in Braintree, Essex. He quarreled with his partner, however, and in<br />
1818 the partnership was dissolved.<br />
201<br />
Overview<br />
A ruthless son – and a Victorian success story<br />
Power-looms drive expansion<br />
The halcyon years of mourning crepe<br />
The collapse of the crepe business<br />
Recovery: new men and new energy<br />
An innovative product: rayon<br />
The vital breakthrough<br />
Courtaulds acquires the British rights to viscose<br />
The importance of skill in textile manufacture<br />
Courtaulds acquires the U.S. rights to viscose<br />
Samuel Courtauld IV<br />
The rayon boom<br />
The 1930s: the difficult decade<br />
World War II – and the loss of AVC<br />
Post-war recovery and change<br />
Diversification and the move into packaging and paints<br />
ICI bids for Courtaulds<br />
Vertical integration<br />
The 1970s fibers crisis<br />
Courtaulds splits into two companies<br />
A new era<br />
Acquisition by Akzo Nobel
202<br />
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
A ruthless son – and a Victorian success story<br />
George Courtauld’s failings as a businessman provided the<br />
opportunity for his son, Samuel Courtauld III, to start upon<br />
a career which was to bring enormous wealth to the family.<br />
In 1816, when George was in the midst of his dispute with<br />
his partner – and with the family income thereby imperiled<br />
– Samuel decided to set himself up as a silk throwster in<br />
Bocking, Essex. He became a hard-driving businessman:<br />
ruthless, impatient and autocratic.<br />
The years immediately after 1816, when Samuel had branched<br />
out on his own, were not easy. But he extended the scale of<br />
his operations as a silk throwster, working variously by himself,<br />
or in partnership with his brother, George Courtauld II,<br />
or his cousin, P.A. Taylor I. With his brother he also used,<br />
and manufactured for sale, a special type of spindle for silkthrowing<br />
which their father had patented and which enjoyed<br />
a certain temporary success. He also installed small steam<br />
engines to supplement water power in his mills.<br />
From 1826, Samuel began to concentrate on silk weaving<br />
rather than silk throwing, i.e. producing silk fabrics for silk<br />
manufacture. In 1828 the operation was set up on a new<br />
legal footing and the firm of Courtauld, Taylors & Courtauld<br />
came into being. Samuel Courtauld & Co., as the firm soon<br />
became known, was to become the biggest and most successful<br />
manufacturer of a textile fabric peculiarly popular in<br />
Victorian Britain – silk mourning crepe.<br />
The practice of using a particular sort of black crepe as a<br />
part of mourning attire was not an invention of Victorian<br />
England. During the 18th century, crepe was being imported<br />
into England and several efforts were made to start its manufacture<br />
on English soil. By the 1820s, crepe of this sort was<br />
being made by two or three English silk weaving firms, and<br />
Samuel Courtauld & Co. joined their number in about 1830.<br />
Power-looms drive expansion<br />
In the early 19th century, most silk fabrics were still woven<br />
on hand-looms. It was soon discovered that the weaving<br />
of silk gauze for mourning crepe could just as easily be<br />
done on power-looms. Courtauld & Co. developed a particular<br />
type of power-operated loom especially suited for<br />
crepe weaving, and by 1840 it possessed more than 240 of<br />
these looms. Almost all the firm’s machinery was designed<br />
and made at the company’s own works. This engineering<br />
side of the business was run by George Courtauld II.<br />
The halcyon years of mourning crepe<br />
Up until 1850, the firm, while growing rapidly, was also still<br />
finding its feet. The original silk-throwing part of the business<br />
continued to be important in the 1830s, but from 1850<br />
onwards mourning crepe completely dominated the firm’s<br />
activities. The period 1850 to 1885 was the high point both for<br />
mourning crepe and for the profits of the family partnership.<br />
Employing around 3,000 people, Samuel Courtauld & Co.<br />
was one of the biggest firms in the British silk industry at<br />
the time. It had become so profitable that at the height of its<br />
success in the 1870s, the partners were each year earning<br />
an average return on their capital of more than 30 percent.<br />
These high profits were made possible by a remarkable<br />
increase in the demand for black crepe as the ritual of<br />
deep mourning was popularized in the middle and upper<br />
classes. While private funerals among the better-off sustained<br />
a steady growth in demand, occasional royal deaths<br />
provided periodic booms, and a growing enthusiasm among<br />
the French for what they called crêpe anglaise provided<br />
a steady export outlet. The social origins of this demand<br />
made it easy to keep up prices, and there were only a very<br />
few other producers, all overshadowed by the dominance<br />
of Courtauld & Co.<br />
The collapse of the crepe business<br />
It was all too good to last, however. After 1885, the gloss of<br />
prosperity began to fade. Crepe prices fell sharply and profits<br />
tumbled. In 1894, the business made a loss; and in 1896,<br />
a worse loss. To some extent, these difficulties were due<br />
to changes in the British economy as a whole. In part, too,<br />
the firm’s troubles arose from a change in English fashion.<br />
Although Queen Victoria’s presence upon the throne went<br />
far to ensure a continued high regard for formal crepe-laden<br />
mourning, there were many signs of a move towards greater<br />
freedom in this matter. But ultimately the firm suffered from a<br />
failure of business leadership following the formal retirement<br />
of Samuel Courtauld III in 1865.<br />
Recovery: new men and new energy<br />
In 1891, the partnership was turned into a private limited<br />
liability company, and two appointments were made which<br />
were to have momentous consequences for the firm. In<br />
1893, a Yorkshireman called Henry Greenwood Tetley was<br />
appointed as head manager; and in 1894, Thomas Paul<br />
Latham, a Lancashire man, became sales manager. These<br />
two men, outsiders to the family business, virtually controlled<br />
the company for the next quarter-century.<br />
Tetley’s first job was to re-equip the production end of<br />
the business. A major program of change was directed<br />
at the dyeing and finishing departments and a general<br />
rationalization of production at the three main mills was<br />
begun. In 1898, an important new investment was made,<br />
taking Samuel Courtauld & Co. out of its Essex isolation<br />
– to increase production capacity, a mill was bought at<br />
Leigh, in Lancashire.<br />
This reorganization had two main goals. One was to improve<br />
the quality and reduce the costs of mourning crepe; the other<br />
was to develop the manufacture of other products, mainly<br />
colored silk chiffons. In Britain, crepe was on its way out,<br />
and Queen Victoria’s death in 1901 speeded up its demise.<br />
Tetley fully understood the situation. As he told his fellow<br />
directors in April 1904, Samuel Courtauld & Co. needed<br />
“a new source of profit to replace crepe profits – which are<br />
leaving us.” The adoption of his proposed remedy was to<br />
point the company in a wholly new direction. For in July 1904,<br />
Samuel Courtauld & Co. Ltd. bought a set of patents and<br />
licenses which gave them the exclusive British rights to the<br />
viscose process of making “artificial silk’’, later to be known<br />
the world over as rayon.<br />
An innovative product: rayon<br />
The chemical experiments which gave birth to what was<br />
to prove the first of the man-made fibers occurred outside<br />
the existing textile industry. At the base of it all lay chemical<br />
investigation of the substance called cellulose, which is<br />
the vital component of all plant tissue. During the first half<br />
of the 19th century, several European chemists set about<br />
treating cellulose in various forms with a variety of acids.<br />
Among their findings was the discovery that treating cotton<br />
with nitric acid resulted in a highly explosive substance,<br />
which was called nitrocellulose or gun-cotton. One line<br />
of further enquiry from this led to the explosives industry,<br />
but another led to the first process of making artificial<br />
silk. In 1883 and 1884, respectively, two men, Sir Joseph<br />
Swan in England and Count de Chardonnet in France,<br />
patented processes for dissolving nitrocellulose in such<br />
a way that a filament could then be extruded from a jet.<br />
Both men, having observed the luminous sheen which the
George Courtauld I (1761–1823), an unsuccessful businessman who<br />
sired a highly successful son, Samuel Courtauld<br />
Halstead Old Mill, Essex, England. Originally the Town Mill, this was<br />
converted by Samuel Courtauld III in 1825
204<br />
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
filaments possessed, thought in terms of ‘‘artificial silk”.<br />
Neither, however, saw the substance’s potential for purely<br />
textile applications.<br />
This nitrocellulose process was not only costly, but also<br />
very dangerous. Experimenters were naturally interested in<br />
safer methods of manufacture and in the 1880s and 1890s<br />
various patents were taken out for what became known as<br />
the “cuprammonium” process. The prime interest in these<br />
processes was not their use in manufacturing textiles, but<br />
for the production of filaments for electric lamps. In 1895,<br />
however, having observed the attention which Chardonnet’s<br />
product was beginning to attract, Max Fremery and Johan<br />
Urban started using the cuprammonium process to make<br />
artificial silk, which they called Glanzstoff. They started a<br />
firm in Germany which they called Vereinigte Glanzstoff<br />
Fabriken, built a factory and began production in 1899.<br />
(Vereinigte Glanzstoff Fabriken was to merge with the<br />
Dutch artificial fibers manufacturer Enka in 1929 to create<br />
AKU, one of the forerunners of Akzo Nobel.)<br />
The vital breakthrough<br />
The vital breakthrough, the “viscose’’ process, was made in<br />
Britain. The master patent was taken out in 1892 by a professional<br />
chemist, C.F. Cross, and his partners. The patent<br />
covered a method of treating wood pulp with caustic soda<br />
and other chemicals to produce a golden yellow substance<br />
called viscose. The next step was taken in 1898, when<br />
C.H. Stearn – an amateur physicist and by then director of<br />
an electric lamp company – took out a patent to make filaments<br />
from viscose. In collaboration with Cross, he set up<br />
a laboratory-cum-pilot plant at Kew, near London, with the<br />
intention of making “artificial silk” fibers. Between 1899 and<br />
1904, the various national patent rights were sold off, one<br />
by one. But was this new process – and risky investment<br />
– worth the risk?<br />
Courtaulds acquires the British rights to viscose<br />
H.G. Tetley first visited the works at Kew in February 1904.<br />
But his enthusiastic proposals to the Board that the company<br />
should buy the patent rights were turned down by the<br />
more conservative directors. It was agreed to look at the<br />
venture again after another proposal was put to the test,<br />
namely to turn the private company into a public company.<br />
The subsequent flotation was successful and the British<br />
rights to the patents of Cross, Stearn and Topham were<br />
subsequently acquired.<br />
For a site on which to build a factory for the new process,<br />
Tetley went not to the traditional textile districts of Lancashire<br />
or Yorkshire, but to the Midlands. In July 1905, the company’s<br />
new Coventry factory started production. None of the<br />
company directors knew anything at all about chemistry,<br />
and at least two of them opposed what they saw as a lot<br />
of new-fangled nonsense. Yet the new strategy succeeded<br />
so remarkably that by 1913 the output of the Coventry factory<br />
had reached more than three million pounds weight per<br />
annum. Courtauld & Co. had emerged as the strongest of all<br />
the firms that had bought the viscose rights, the most successful<br />
of the pioneers of rayon.<br />
The importance of skill in textile manufacture<br />
An important part of the company’s success lay in the fact<br />
that of all the purchasers of the viscose patent rights, only<br />
Samuel Courtauld & Co. was a textile manufacturing firm.<br />
This meant that those directing the efforts of the chemists<br />
and engineers knew just what technical qualities were<br />
needed to make a yarn useful and saleable.<br />
The real architect of the achievement was Tetley. He drove<br />
the company forward, relentlessly pursuing, and indeed far<br />
exceeding, the goals he had promised. Already by 1900 the<br />
rayon profits exceeded those of the old textile side of the<br />
company. In 1917, he became Chairman of Courtaulds Ltd.<br />
Courtaulds acquires the U.S. rights to viscose<br />
The transformation of the Essex crepe firm wrought in the<br />
decade 1904 to 1914 generated a bigger and complex<br />
range of overseas contacts. With the outbreak of World<br />
War I, these associations disintegrated, but it was as a<br />
direct consequence of these international arrangements<br />
that Samuel Courtauld & Co. was led to make its most<br />
important investment – the purchase of the U.S. rights to<br />
the viscose manufacturing process in 1909.<br />
In 1908, an agreement was reached giving Courtauld &<br />
Co. alone exclusive permission to import viscose yarn into<br />
the United States. In 1909, the American tariff on imported<br />
artificial silk yarn was raised. Tetley persuaded the owner<br />
of the U.S. rights to produce artificial silk yarn to sell them<br />
to Samuel Courtauld & Co. This piece of opportunism left<br />
Courtauld & Co. in a remarkably strong position.<br />
The existing plant in the United States was scrapped<br />
and a new factory built at Marcus Hook, near Chester,<br />
Pennsylvania. The American Viscose Company (AVC), as<br />
the new subsidiary was first called, began production in<br />
1911. It rapidly proved extremely profitable and, by 1914,<br />
Courtaulds had a legal, patent-based monopoly of viscose<br />
yarn production in both Great Britain and the United States.<br />
AVC’s production quickly increased, such that in 1915 it surpassed<br />
even that of its UK parent.<br />
Samuel Courtauld IV<br />
In 1921, Tetley died and the leadership of Courtaulds passed<br />
into the hands of Samuel Courtauld IV, great-nephew of<br />
Samuel Courtauld Ill, who had founded the family business.<br />
He remained the dominant, highly-respected leader of<br />
Courtaulds until the year before his death in 1947.<br />
Samuel Courtauld IV left his imprint not only on the company,<br />
but also in the wider world. One of the earliest collectors<br />
of Impressionist paintings, he built up a remarkable<br />
collection, the bulk of which he made available to the public<br />
during his lifetime, creating and endowing the Courtauld<br />
Institute of Art. As a patron of the arts, his interest extended<br />
to music, opera and literature. He was also active as an<br />
industrialist, especially around the beginning of World War II,<br />
in talking and writing about the future of industry and about<br />
the relationship between industry and government, as well<br />
as that between employers and employees. Altogether, he<br />
led Courtaulds Ltd. to a position of great respectability in<br />
manufacturing business.<br />
The rayon boom<br />
The end of World War I and the return of conditions conducive<br />
to new business enterprise coincided with the expiry<br />
of the basic patents for the viscose process. The manufacture<br />
of artificial silk, which from the late 1920s onwards<br />
came to be called rayon, therefore expanded in various<br />
ways. The best-known of the new types of rayon made by<br />
the cellulose acetate process became familiar in Britain<br />
under the brand name Celanese, used by the British<br />
Celanese Co., which made and marketed it. Celanese became<br />
very popular in the manufacture of women’s under-<br />
wear. Of greater importance internationally, and for the<br />
future, was the development of rayon staple fiber. Made<br />
by cutting up the continuous filament of rayon into short
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
lengths and then spinning these into a yarn, it became<br />
of great significance as a substitute for cotton and wool.<br />
These changes meant a gigantic increase in the global<br />
output of rayon. Cheap woven or knitted fabrics and<br />
hosiery, in rayonor rayon mixtures, answered new demand<br />
for cheaper stockings, underwear, furnishing fabrics and<br />
dress materials.<br />
Courtaulds’ operations in Britain and continental Europe<br />
benefited from the rayon boom of the 1920s. Meanwhile,<br />
on the other side of the Atlantic, The Viscose Company<br />
– which during this period changed its name again, this<br />
time to American Viscose Corporation (AVC) – continued<br />
its rise to what in 1937 the American magazine Fortune<br />
called: “one of the greatest industrial shows in the<br />
world.” With a seemingly unlimited home market, AVC was<br />
responsible for more than 60 percent of total U.S. rayon<br />
production in 1928.<br />
The 1930s: the difficult decade<br />
Coventry 1905 – by one who was there<br />
In 1985, Frank Jones, the editor of Courtaulds News, interviewed one of the<br />
original inventors of viscose – Edwin Beer, who at that time was 105 years old.<br />
The following is an excerpt from the published interview.<br />
Despite his advanced years, Edwin Beer is not one to lie in bed of a morning. He rises at six<br />
o’clock sharp every day, makes his own breakfast and tidily washes up before his wife – a<br />
comparatively young 75-year-old – comes downstairs. Later he might take a glass of sweet<br />
wine, smoke a black Burma cheroot, or simply potter around his rambling 16th century house.<br />
The building is packed from floor to rafter with relics and mementoes of a long and eventful<br />
life. And tucked away in innumerable boxes, drawers and cupboards is a miniature museum<br />
of man-made fiber history. Lumps of solidified viscose, bobbins and hanks of shiny yarn,<br />
spun at Kew long before the Courtaulds days. The first rayon stocking ever knitted. An old<br />
board on which colored viscose skeins were shown at the Paris Exhibition in 1900.<br />
“I dyed those skeins myself at the laboratory at Kew,” Mr. Beer recalls. “Courtaulds saw<br />
them in Paris and this was what finally aroused their interest in viscose.” Stirred by the<br />
memory, he reflects on those long-ago days. Edwin Beer had met two of the viscose pioneers<br />
while still a teenager. He learned chemistry under Cross and Bevan when they were<br />
partners at New Court, Lincoln’s Inn, London.<br />
The 1929 crash and the Great Depression of the 1930s<br />
did not afflict Courtaulds in Britain with anything like<br />
the hardships felt in older industries or by some other<br />
firms. Indeed, in 1939, the firm’s rayon output was more<br />
than three times what it had been in 1929. But profits<br />
were down on the heydays of the 1920s. At home, wages<br />
were cut and persistent labor troubles beset the yarn<br />
mills. Serious defects were becoming evident in the<br />
firm’s technical efficiency, organization, and management.<br />
Difficulties also multiplied overseas. Yet all this was little<br />
as compared with the troubles which loomed at AVC.<br />
Volumes, as well as profits, fell drastically, and in 1938 AVC<br />
made a net loss. AVC was proving a troublesome offspring<br />
for an already harassed parent.<br />
By about 1935, Samuel Courtauld IV initiated a thorough<br />
inquiry into the company’s technical and managerial<br />
shortcomings, and a substantial modernization program<br />
was launched.<br />
In 1935, a new subsidiary, British Cellophane Limited,<br />
was formed as a joint venture with the French company La<br />
Cellophane, to pool patents and processes and develop<br />
the British market for cellulose films.<br />
Cellulose film (brand name Cellophane) had a technological<br />
link with rayon in that the production process was similar<br />
– for film, the viscose was extruded through a slot, and for<br />
fiber, through a jet. (In time this activity grew to become a<br />
group of companies that operated in several countries and<br />
made a variety of products, including non-woven fabrics<br />
and plastic packaging film. In the early 1980s, it became<br />
a wholly owned subsidiary of Courtaulds; by the mid-1990s,<br />
however, all these businesses had been divested).<br />
“This was the first time I ever heard about viscose, and Cross asked me to do quite a bit of work<br />
on it,” he says. In 1899, he joined the newly-formed Viscose Spinning Syndicate at Kew as a<br />
chemist. There the experiments gathered pace, though viscose proved a difficult beast to tame.<br />
“We would never get two batches alike, and Cross said we never would,” he recalls.<br />
“Problems were always occurring. Crystals would appear in the viscose, then go away just<br />
as quickly. Or yarn would suddenly turn as stiff as wire, instead of being soft and silky.”<br />
What does he remember of his illustrious colleagues at that time?<br />
“Stearn was very secretive, and quite a scholar. He wouldn’t give you a penny more than<br />
he was obliged to and he had a mania for punctuality. Topham imagined that everything<br />
that happened was done by him. He decided one day that he had discovered the ageing<br />
process for viscose. Yet this was something Cross and I had been working on years before<br />
Topham had ever heard of it.”<br />
By the time Courtaulds began to show interest, Mr. Beer had also come face to face with<br />
the company’s driving force at that time – H.G. Tetley. “He was a most extraordinary man<br />
and would always contradict everything you said. Everybody admired him except me, and most<br />
people were afraid of him. But it seems that a dominating personality like his was needed to<br />
get viscose onto the market. Certainly when the money ran out, it was Tetley who persuaded<br />
Courtaulds to re-finance and start again. And next time they really did make money.”<br />
205
206<br />
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
The Courtauld Institute of Art<br />
The foundation of the Courtauld Institute of Art was presided over by a triumvirate of<br />
collectors, brought together by a common wish to improve understanding of the visual<br />
arts in Great Britain. Precedents for such an institution existed in Europe and America,<br />
but there was opposition to the idea in Britain, rooted in the country’s deep-seated<br />
conviction that the arts were the playthings of the rich and not a suitable subject for<br />
a university education. Without the initiative and persistence of the founding fathers,<br />
Viscount Lee of Fareham, Samuel Courtauld IV, and Sir Robert Witt, it is doubtful<br />
whether the project would ever have got off the ground.<br />
The founding fathers<br />
The three founders came from very different backgrounds. Lee was the son of a<br />
Dorset rector who rose to eminence through the army, public service and government,<br />
and he knew how to exercise influence. It was Samuel Courtauld IV who provided the<br />
bulk of the money for the enterprise. Courtauld’s wealth came from the family textile<br />
business, but on both sides of his family there were connections with the arts and<br />
traditions of patronage extending back several generations.<br />
Samuel Courtauld IV loved paintings and wrote poems about them. He bought French<br />
Impressionists and Cézannes and took out a lease on the best Adam house in London<br />
in which to display them – a novel and stunning combination. In 1931, he made over<br />
the house in Portman Square, together with the pictures, for the use of the new<br />
Institute – until such time as permanent accommodation could be found for them.<br />
In the event, the Adam house in Portman Square was to be the Institute’s home for<br />
almost 60 years. The third member of the group, Sir Robert Witt, was a successful<br />
lawyer who collected drawings of old masters; but his principal contribution to the<br />
enterprise was a vast collection of reproductions of paintings. Combined with a<br />
similar collection donated by Sir Martin Conway, these were to become the surrogate<br />
primary sources for budding art historians. The aim of the three founders was to<br />
provide training for professionals who intended to enter the various branches of the<br />
art business. The doors of the Institute opened in October 1932.<br />
The Warburg émigrés<br />
On December 12, 1933, as a direct response to the advent of a Nazi government in<br />
Germany, a group of scholars attached to the Warburg Library in Hamburg decided to seek<br />
refuge abroad. Lee and Courtauld were instrumental in arranging for them to be resettled in<br />
London, and their presence slowly but inexorably transformed the perception of art history<br />
in England. The Warburg émigrés introduced standards of scholarship unknown among<br />
English art historians, and they practiced a kind of art history far removed from the connoisseurs,<br />
collectors and the art trade. For the Warburg scholars, the arts were inextricably<br />
bound up with the zeitgeist of the time, and art history entailed research into the past in<br />
which the clear-cut distinction between history and art history ceased to exist. It was an<br />
approach which called for a formidable array of intellectual talents.<br />
Putting art history on the map<br />
The Courtauld Institute of Art became a small powerhouse of intellectual activity which put art<br />
history on the British academic map. Many of its post-war achievements were attributable<br />
to Sir Anthony Blunt, the Keeper of the Royal Pictures, who led a double life as one of the<br />
“Cambridge Five” spy-ring and who eventually defected to the USSR. While Blunt’s duplicity<br />
remains a sensitive topic among Britain’s intelligentsia, his dedication to the success of the<br />
Courtauld Institute is unquestioned.<br />
Under Blunt’s aegis, the Institute’s program of research was left entirely to the students<br />
themselves. Arriving already with graduate qualifications in history, literature, languages<br />
and even philosophy, they quickly acquired an outstanding reputation for their dedication<br />
to the highest standards of post-graduate historical research. A substantial number were<br />
to become leading art historians.<br />
Over the years, the Institute’s success has attracted many private benefactors, who have<br />
continued to expand its considerable collection – most notably Spooner, Gambier-Parry,<br />
and Seilern. In the 1980s, the Courtauld Institute of Art and its collection were relocated to<br />
Somerset House on London’s Strand. It remains an entirely independent institute and, as it<br />
celebrates the 75th anniversary of its foundation, is recognized as an international center of<br />
excellence in the study of art history.
Members of the Viscose Spinning Syndicate. From left to right: C.F. Cross, Edouard Thomas,<br />
Mr. Mutar (secretary to Hugo Kolker), Hugo Kolker, F. Topham and F. Woodley
208<br />
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
The discovery of nylon in America in 1937–1938 helped<br />
to bring home to Samuel Courtauld IV the science-based<br />
nature of the company’s activities. Yet, although Courtaulds’<br />
laboratories proved their practical value in a variety of ways,<br />
the funds invested in basic research remained very low.<br />
The need for directed research work was only just being<br />
realized when war came.<br />
There were bright spots in the gloom, however. Courtaulds<br />
was itself responsible for the successful development<br />
of high-tenacity tire yarn just before the war – a breakthrough<br />
which was to prove of great value. Moreover, a<br />
policy of taking new products to the consumer and demonstrating<br />
them to the more conservative elements in<br />
the textile manufacturing strongholds of Lancashire and<br />
Yorkshire paid off handsomely. But war was to impact this<br />
phase of recovery.<br />
World War II – and the loss of AVC<br />
World War II brought problems to Courtaulds. Output<br />
dropped, costs rose, the burden of taxation grew heavier,<br />
and the Coventry factory suffered badly in the air raids of<br />
1941. But none of these events was as important as the<br />
enforced sale, in 1941, of American Viscose Corporation.<br />
This loss effectively cut Courtaulds Ltd. in half.<br />
The Courtauld Silver Collection<br />
In 1939–1940, the United States was supplying Britain with<br />
armaments on a large scale. In the summer of 1940, the<br />
U.S. Secretary of the Treasury, Henry Morgenthau, suggested<br />
that it would be desirable for British-owned industrial<br />
concerns in the United States to be transferred into<br />
American ownership by way of recompense. The largest of<br />
these was AVC. At the end of 1940, when Britain’s financial<br />
position was rapidly worsening, President Roosevelt<br />
announced the principle of “Lend-Lease”. The pressure to<br />
make Britain sell some of her direct investments in America<br />
grew stronger. In January 1941, Morgenthau stated before<br />
the Senate Foreign Relations Committee that “every dollar”<br />
of British property in the United States would be sold. On<br />
March 10, Morgenthau told the British Ambassador that a<br />
big sale must be made by the end of the week. Plans were<br />
rushed through and on March 16, AVC was publicly signed<br />
away to a syndicate of American bankers. The total payment<br />
was eventually set at just over £27 million.<br />
Post-war recovery and change<br />
Following the death of Samuel Courtauld IV in 1947, Courtaulds embarked on acquiring<br />
what is now known as the Courtauld Silver Collection. The collection comprises pieces by<br />
three generations of 18th century London silversmiths, members of the Huguenot Courtauld<br />
family and ancestors of Samuel Courtauld IV, after whom the Institute is named. The<br />
descendants of Augustin Courtauld were successful, prolific and renowned silversmiths,<br />
and prominent members of the Huguenot community, which contributed so notably to the<br />
arts and skilled crafts, commercial enterprise and public life of 18th century England.<br />
Designed for domestic use and display, the items range in date from 1710 to 1779 and<br />
demonstrate the quality of workmanship and innovative design skills brought to England by<br />
Huguenot refugee craftsmen. The Courtauld Silver Collection now belongs to <strong>AkzoNobel</strong><br />
and is kept on permanent loan at the Courtauld Institute of Art in London.<br />
The existence of this vast amount of cash overshadowed<br />
the course of Courtaulds’ post-war recovery. Expenditure<br />
on directed research was substantially increased and<br />
modernization programs were begun. Meanwhile, the output<br />
of ordinary rayon filament yarn was gradually replaced by<br />
nylon (in stockings) and by cotton variously treated so as to<br />
give crease resistance (in a variety of uses). Rapid expansion<br />
of nylon manufacture started after the war, targeting<br />
commercial markets. In the case of rayon, the increase<br />
in output was concentrated on strong yarns, for tires and<br />
other industrial purposes, and even more so on staple fiber<br />
(fiber that comes in discrete and consistent lengths).<br />
Diversification and the move into<br />
packaging and paints<br />
These measures seemed to be working. But then profits<br />
started to slip. Furthermore, as the full impact of nylon<br />
and other new synthetic fibers made themselves felt,<br />
the whole future of rayon came into question. In this<br />
context of incipient crisis, new policies were contrived.<br />
Successful research work had been proceeding within<br />
the company upon tri-acetate yarns and acrylic fibers.<br />
It was therefore decided to employ new marketing<br />
techniques and embark upon a program of vigorous sales<br />
promotion for these fibers.<br />
Faith in the future of rayon was signaled by further research<br />
efforts designed to improve the quality and versatility of<br />
rayon staple, and a policy of diversification was elaborated.
Henry Greenwood Tetley, the man who understood that Courtaulds had to<br />
find a new product after the collapse of the market for mourning crepe Courtaulds mourning crepe, 1890
210<br />
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
In pursuit of these policies, Courtaulds acquired British<br />
Celanese Ltd. in 1957 and five other rayon companies<br />
between 1959 and 1963. This process of diversification<br />
led in various directions. The company’s existing<br />
interest in packaging, through British Cellophane Ltd., led<br />
to the acquisition of firms making containers of various<br />
sorts. The company’s chemical interests, meanwhile,<br />
pointed the way to a move into paints. The small Cellon<br />
Ltd. (acquired in 1958), the much large Pinchin, Johnson<br />
and Associates Ltd (acquired in 1960) and International<br />
Paints (Holdings) Limited (acquired in 1968), together with<br />
the International name, became the successful Coatings<br />
division of Courtaulds.<br />
ICI bids for Courtaulds<br />
Courtaulds’ fortunes began to improve. Sales of the new<br />
fibers Courtelle ® (the first British acrylic fiber) and Tricel ® were<br />
becoming significant, rationalization within the Courtaulds<br />
Group helped to manage costs, and better trading<br />
conditions improved turnover. Then, in December 1961,<br />
ICI made its famous takeover bid for Courtaulds.<br />
During the autumn of 1961, informal talks about a possible<br />
merger had taken place. Courtaulds’ shares had been<br />
falling on the stock exchange, but they dropped further<br />
at the beginning of November, when a cut in the interim<br />
dividend was announced. Talks between Courtaulds and<br />
ICI continued, but apparently these did not include any<br />
detailed negotiations for a merger or takeover. On December<br />
18, however, preceded by an unexplained press leak,<br />
ICI made a public takeover proposal. Courtaulds opposed<br />
the takeover and advised their shareholders accordingly.<br />
Battle was joined. As the biggest takeover bid in British<br />
industrial history up to that time, the conflict attracted<br />
considerable attention. Courtaulds issued a detailed<br />
statement forecasting a 60 percent rise in profits over<br />
the next three years. This and other measures had the<br />
effect of pushing the stock exchange valuation of the company’s<br />
shares above the value placed upon them by the ICI<br />
offer. On March 12, ICI conceded defeat, having secured<br />
only 38 percent of Courtaulds’ equity.<br />
Shortly thereafter, the chairmanship passed to (later Sir)<br />
C.F. Kearton, who had played a major part in opposing the ICI<br />
bid. The two outstanding features of the company’s performance<br />
and policy in the 1960s were first, not only meeting, but<br />
actually exceeding, the profit forecasts made at the time of the<br />
bid; and, second, the drive to build up viable manufacturing<br />
interests at every level of the textile industry. This was largely<br />
attributable to rapidly increasing sales of Courtelle ® and of<br />
modified varieties of rayon staple fiber. In 1964, the direct<br />
consequences of ICI’s bid were terminated by an agreement<br />
between the two companies. ICI’s 38 percent shareholding<br />
in Courtaulds’ equity was cancelled, and ICI agreed to pay<br />
Courtaulds £10 million over five years; Courtaulds gave up<br />
their 50 percent interest in British Nylon (the viscose-manufactoring<br />
joint venture between Courtaulds and ICI which had<br />
been established in 1940). The commercial production and<br />
sales of nylon 6, marketed as Cellon, now went ahead.<br />
Vertical integration<br />
Overseas, Courtaulds also sold – in 1964 – their 50 percent<br />
shareholding in the joint venture Glanzstoff-Courtauld<br />
of Cologne; likewise it had by 1966 disposed of the last of<br />
its equity investment in the Italian firm of Snia Viscosa. With<br />
the failure of Britain to enter the European Common Market<br />
in 1963, it became increasingly important for Courtaulds to<br />
look to the British textile industry as the main market for its<br />
fibers. In 1964, Courtaulds therefore acquired two major<br />
groups in the British spinning industry. A policy of investment<br />
in modernization was combined with massive expansion, in<br />
weaving, knitting and bonded fabrics, dyeing, printing and<br />
finishing, and the hosiery and garment trades, as well as<br />
the wholesaling and retailing sections of the textile industry.<br />
These developments added up to a distinctive change in the<br />
company’s strategic direction. But they all had their roots in<br />
the task of solving the problem of what to do with Courtaulds’<br />
£27 million of compensation for the loss of AVC.<br />
The last two members of the Courtauld family to sit on the<br />
Board retired in 1965 and 1966, respectively. It was hoped<br />
that the creation of a vertically integrated fibers–textiles group<br />
engineered under Kearton’s aegis would solve the company’s<br />
excessive reliance on rayon. By 1968, Courtaulds controlled<br />
about 30 percent of cotton-type spinning capacity in<br />
the UK, as well as 35 percent of warp-knitting production<br />
and smaller but significant shares in weaving and finishing.<br />
The 1970s fibers crisis<br />
In the short term, the policy paid off. Profits rose to a high<br />
in 1975. However, despite much reorganization carried out<br />
by Kearton and his immediate successor A.W. (later Sir<br />
Arthur) Knight, Courtaulds was not well placed to cope with<br />
the recession of the late 1970s and especially with the crisis<br />
affecting the European man-made fiber and textile industries.<br />
Profits fell sharply in 1976 and, after some recovery, dropped<br />
again in 1981 to their lowest point since World War II.<br />
Sir Arthur Knight’s successor as chairman in 1979 was<br />
C.A. (later Sir Christopher) Hogg, who began a gradual and<br />
total reorganization of the company. During the ensuing<br />
decade, much of the edifice created by Kearton’s move<br />
into spinning, weaving and the mass production of textiles<br />
was dismantled. Despite investment in new machinery,<br />
yarns and fabrics had made losses or very small profits in<br />
the face of cheaper imports and declining markets overseas.<br />
Substantial closures of spinning and weaving mills<br />
followed. Restructuring overseas included the sale of<br />
Courtaulds’ South African pulp interests. Employee numbers<br />
fell – the 1975 workforce of well over 100,000 in the<br />
United Kingdom alone had contracted by 1988 to 46,000 in<br />
the United Kingdom and 22,000 overseas. In contrast, the<br />
other part of Kearton’s diversification – into paints, chemicals,<br />
and packaging – fared much better. The logic of the<br />
fiber-chemical mix came to its ultimate conclusion with the<br />
demerger of Courtaulds Textiles in 1990.<br />
Courtaulds splits into two companies<br />
Courtaulds plc emerged from the break-up as an industrial<br />
manufacturing company of specialty materials, producing<br />
paints and coatings (accounting for 33 percent of profits in<br />
1990), man-made fibers and films (30 percent), acetates and<br />
other chemicals (23 percent), and packaging materials and<br />
sundry specialized products (14 percent). It operated in 37<br />
countries. Courtaulds Textiles plc, with 28,000 employees,<br />
was primarily a UK-based operation with nearly 80 percent<br />
of its workforce there. Its chief activities were the making<br />
of apparel and furnishing fabrics, the manufacture of garments<br />
under various brand names, and a much-reduced<br />
spinning section.<br />
A new era<br />
In 1991, Sir Christopher Hogg was appointed Chairman of<br />
the company and the 30-year Courtaulds veteran Sipko<br />
Huismans was appointed the company’s Chief Executive.<br />
Huismans concentrated on new product development,<br />
consolidation via joint ventures and acquisitions, and geo-
An advertisement for British Celanese from the 1920s<br />
211
212<br />
Courtaulds:<br />
From Victorian silk to synthetic fibers<br />
The Courtaulds legacy<br />
graphic expansion. Asserting in a 1990 Chief Executive<br />
magazine article that “ironically, the demerger made the<br />
mature fibers businesses an even larger proportion of the<br />
new Courtaulds,” Huismans focused new product development<br />
on fibers that would command higher margins.<br />
The most celebrated of these was Tencel ® , a cellulosic<br />
(wood pulp) fiber which boasted strength, softness, washability,<br />
and dyeability. The company started mass production<br />
of this “luxury fiber” in 1992 at a plant in Mobile,<br />
Alabama, and marketed it primarily in Japan. Brisk sales<br />
prompted rapid increases in manufacturing capacity; by<br />
1996 Courtaulds had added a second U.S. factory and<br />
brought a UK plant into operation in 1997.<br />
Acquisition by Akzo Nobel<br />
Huismans retired in July 1996, to be replaced by Gordon<br />
Campbell. In the early 1990s, Courtaulds’ main business<br />
strength was based on technology, particularly polymer technology<br />
and surface science, specializing in products for protection<br />
or decoration in a wide range of demanding environments.<br />
Its businesses included performance films, coatings,<br />
sealants and adhesives, advanced materials, packaging,<br />
chemicals, fibers and films, but before the end of that decade<br />
most of these activities had been divested. Akzo Nobel saw<br />
Courtaulds’ coatings and sealants business as complementary<br />
to its existing business, both in terms of the industry<br />
segments in which they operated and their geographic coverage,<br />
and it also believed that the acquisition of Courtaulds<br />
would help it to strengthen and broaden its coatings activities.<br />
Adding Courtaulds’ fibers activities to Akzo Nobel’s existing<br />
fibers group would create a broadly based international fibers<br />
business which Akzo Nobel believed would be viable as a<br />
stand-alone company that could ultimately be spun off.<br />
On May 11, 1998, Akzo Nobel made an offer to acquire the<br />
whole of the issued share capital of Courtaulds plc. By July<br />
7, 1998, acceptances had been received in respect of more<br />
than 90 percent and the offer was declared wholly unconditional.<br />
Akzo Nobel then merged all its fibers activities into<br />
a new business called Acordis, thus creating a potential exit<br />
for both companies from this poorly performing area. Acordis<br />
was subsequently sold to CVC Capital partners in 1999.<br />
The EU competition authority insisted on the divestment of<br />
Courtaulds’ aerospace interests. <strong>AkzoNobel</strong> has nevertheless<br />
built an extremely strong position in aerospace coatings<br />
by virtue of subsequent acquisitions and is now equal to<br />
PPG Industries of the United States in this field. (Interestingly,<br />
PPG Industries mounted a counter bid for Courtaulds, with<br />
a partner to take over the fibers operation, but subsequently<br />
withdrew this offer after completing a deal with Akzo Nobel<br />
to acquire Porter Paints and the worldwide Packaging<br />
Coatings business.)
Women workers reeling yarn, Wolverhampton, England, 1930<br />
213
214<br />
The founding partners of Holzapfels Limited pictured in 1885:<br />
the Holzapfel brothers (Max, W. and L. – names unknown),<br />
a Mr F. Schnitger and another unidentified gentleman
The Courtaulds legacy<br />
It began in 1881 with a handful of wooden casks, a simple mixing process,<br />
and two brothers determined to make their way in the world of marine<br />
paint. Max and Albert Holzapfel were young, ambitious and confident<br />
of success. But even they could hardly have foreseen the growth that<br />
would eventually push their business into worldwide expansion.<br />
215<br />
Overview<br />
The birth of the red propeller brand<br />
An international name for an international company<br />
Acquisition by Courtaulds<br />
Product innovation and geographical growth<br />
New technologies and markets
216<br />
International:<br />
A company with a truly international mindset<br />
The Courtaulds legacy<br />
In 1881, their first priority was to build firm foundations at<br />
home. The Holzapfels – German-born, British by adoption<br />
– went into business with a third partner, Charles Petrie,<br />
mixing paint by hand in a shipyard shed on the River Tyne<br />
in Newcastle. As unknowns in a booming industry, they<br />
faced a tough challenge persuading ship owners and ship<br />
builders to buy their fledgling products. Yet even while concentrating<br />
on British customers, they were thinking about<br />
wider possibilities.<br />
The birth of the red propeller brand<br />
International was launched, with its distinctive red propeller<br />
brand, as the name for a marine antifouling paint strong enough<br />
to protect ocean-going vessels even in the harshest of marine<br />
environments. The name caught on, customer demand grew,<br />
and the company moved to larger premises in Gateshead, a<br />
stone’s throw to the south, where it introduced iron mixing<br />
tanks and a mechanized process.<br />
Further expansion followed, and in 1904 the company built<br />
a landmark factory a few miles further to the southeast at<br />
Felling-on-Tyne, which has been its main operational base<br />
ever since. Future efforts would concentrate on extending its<br />
activities around the world and making the International name<br />
respected throughout the global marine industry.<br />
Overseas production had begun in 1889, with a factory built<br />
in Russia to avoid the heavy duties on imported paint in<br />
that country. Other initiatives followed in Denmark, Italy and<br />
Germany, and 1901 saw the first foothold in the New World.<br />
An American operation, International Paint Co. Inc., was registered<br />
in New Jersey and produced coatings in Brooklyn, New<br />
York, selling to ship owners along the United States’ eastern<br />
seaboard. By 1914, International’s reputation was growing fast,<br />
and new factories were added in Sweden, France and Japan.<br />
An international name<br />
for an international company<br />
Even World War I did little to halt progress. Now known officially<br />
as International Paints, the company moved its headquarters<br />
to London and embarked on a further period of<br />
expansion, starting up new operations of its own, acquiring<br />
others and breaking into different user markets. Holzapfels<br />
Limited changed its name to The International Paint &<br />
Compositions Co. Ltd in 1918 and ultimately to International<br />
Paints (Holdings) Ltd in 1951.<br />
Activities were launched in Spain, Canada, Brazil, Mexico,<br />
Australia and New Zealand and began to include the manufacture<br />
and marketing of coatings for domestic and industrial,<br />
as well as marine, applications. International also started<br />
supplying yacht paints as a separate operation, focusing on<br />
the sale of smaller packs to pleasure-boat builders, firstly in<br />
the UK in 1931, then in the United States the following year.<br />
The company’s activities continued to advance on a wide<br />
front. When World War II started, International was well<br />
placed to help the Allies’ cause, servicing naval fleets and<br />
supplying coatings for military hardware. Post-war progress<br />
continued with a scheme to expand and modernize the<br />
Felling factory, building new research, production, office and<br />
canteen facilities. More overseas businesses were set up<br />
– in the Netherlands, Portugal, Nigeria and Venezuela – and<br />
the company added drum-making, ships’ stores and paint<br />
application to its range of interests. By this time, however,<br />
diversification was bringing its own difficulties, and the scene<br />
was set for a major shift in the way UK coatings businesses<br />
were owned and operated.<br />
Acquisition by Courtaulds<br />
Courtaulds, a leading producer of man-made fibers (which<br />
was to be acquired by Akzo Nobel in 1998) decided to move<br />
into paints, and in 1958 acquired aircraft coatings specialist<br />
Cellon. Two years later, Courtaulds took over Pinchin<br />
Johnson & Associates (PJA), suppliers of coatings for a wide<br />
range of industrial applications, from food cans to automobiles.<br />
PJA was a large conglomerate in its own right and a<br />
successful coatings company that had been trading since<br />
1834. Finally in 1968, PJA – now a wholly owned subsidiary<br />
of Courtaulds (Courtaulds acted as a white knight) – acquired<br />
International Paints (Holdings) Ltd, of which Shell had been a<br />
former shareholder. Courtaulds then set about merging all its<br />
Coatings interests under the International banner, changing<br />
the name of PJA to The International Paint Co. Ltd. Ultimately<br />
the name was changed to International Paint Ltd.<br />
Like International, PJA was a British-owned enterprise which<br />
had established its home base on the banks of a major commercial<br />
waterway – in London’s Silvertown, on the Thames –<br />
and spread across the world. But there the similarities ended.<br />
Pinchin Johnson had started life as a producer of oils and<br />
turpentines in the East End of London, supplying the embryonic<br />
businesses emerging from Britain’s Industrial Revolution.<br />
Not only was its product expertise different from that of<br />
International, but it also pursued worldwide growth mainly by<br />
acquiring other companies and technologies. By 1930, Red<br />
Hand, Docker Brothers and Robert Ingham Clark were just<br />
some of the many acquisitions grouped under the company’s<br />
umbrella, servicing customers in the automotive, aviation,<br />
packaging, building, passenger transport and domestic appliance<br />
industries. Overseas, Pinchin Johnson had businesses in<br />
Europe, Australia, New Zealand and India, with smaller operations<br />
in the United States, Nigeria and the Far East.<br />
The challenge facing Courtaulds in 1968 was how to weld<br />
these two business aggregations into a more manageable<br />
whole. Both were suffering from the same problems: too many<br />
markets, not enough profits. Inevitably, some overlapping<br />
activities were sold off, and by the end of the 1980s Courtaulds<br />
had narrowed down the range of coatings markets that it supplied<br />
to packaging, marine and yacht, protective, agricultural,<br />
domestic appliance, architectural and aerospace, plus – in<br />
some countries – decorative paint.<br />
Product innovation and geographical growth<br />
Two moves, one product-based and the other geographic,<br />
showed that the newly shaped International Paint Co. was<br />
just as determined to grow as its predecessors had been.<br />
Solvent-free powder coatings, partly because of their environmental<br />
advantages, were beginning to challenge wet<br />
paints as the preferred product for metal protection across a<br />
whole range of industrial products, and International became<br />
an early leader in this developing technology. It opened a<br />
new factory at Felling in 1974, acquired powder coatings<br />
businesses in Germany, Brazil and Italy, and started producing<br />
in the Far East and Australia. By the 1990s, 15 plants<br />
were operating worldwide and the Interpon ® powder brand<br />
was selling in more than 40 countries.<br />
The major geographic push came across the Asia Pacific<br />
region, as International moved to satisfy demand for marine,<br />
protective, packaging and powder coatings in those rapidlygrowing<br />
economies. Singapore became the springboard for<br />
expansion into Korea, Malaysia, Thailand, China, Taiwan and<br />
Indonesia, mostly through joint operations with local companies.<br />
It was a campaign of growth which lasted for most of the<br />
1980s and 1990s. Once again, International had found the<br />
right formula – replicating homegrown technology in different<br />
parts of the world and nursing it to fruition with local knowledge<br />
and skills. Similar joint businesses were set up in the<br />
Middle East, and operations were strengthened in Australia
Employees gather around the original barrel used by the Holzapfel Brothers to make varnishes in a yard behind the Dunn Cow Inn around 1886.<br />
This photograph was taken in 1955 in the Felling production area, where the barrel is kept on display<br />
217
218<br />
Interior of Tankhouse 6 at Felling,<br />
United Kingdom, in 1995
Marine coatings being delivered to a ship<br />
at the dockside, ready to be loaded for the<br />
purposes of maintenance while the vessel is<br />
at sea. Pinchin Johnson and Company Ltd<br />
(established in 1899) acquired the Red Hand<br />
Compositions Company in the early 1920s to<br />
produce paints and coatings for the marine<br />
industry. This photograph dates from the<br />
early 1960s
220<br />
International:<br />
A company with a truly international mindset<br />
The Courtaulds legacy<br />
and the United States. Courtaulds’ acquisition of U.S. companies<br />
Porter Paints and DeSoto added trade paints and<br />
aerospace coatings respectively to the product mix, while in<br />
Europe, International took full control of a marine business in<br />
Norway which it had previously partly owned.<br />
New technologies and markets<br />
Other acquisitions gave the company an entry into new yacht<br />
coating technologies and markets: Extensor, a Swedish<br />
business specializing in thin-film products for high-speed<br />
craft; and Epiglass, in New Zealand, producing a range of<br />
epoxy products targeted at DIY boat builders – now a major<br />
sales outlet.<br />
At the same time, technological advances kept the company<br />
ahead of its competitors in many fields, particularly marine<br />
applications. Self-polishing copolymer, a revolutionary antifouling<br />
developed at Felling, became a worldwide bestseller,<br />
and innovative work on tin-free coatings has kept up the<br />
momentum, providing a new generation of products that<br />
comply with today’s tougher environmental requirements.<br />
By 1998, Coatings & Sealants was the most profitable<br />
of Courtaulds’ activities, and plans were announced to<br />
launch it as a separate business. This prompted an offer<br />
from Akzo Nobel for the whole of Courtaulds (fibers and<br />
coatings), which was accepted by the required majority of<br />
shareholders. Akzo Nobel had to dispose of Courtaulds’<br />
aerospace interests because of competition issues; the<br />
remaining coatings operations were realigned in the integration<br />
following the takeover.<br />
<strong>Today</strong>, as one of six <strong>AkzoNobel</strong> Coatings business areas,<br />
International Paint maintains its responsibility for supplying<br />
the Marine, Protective, Yacht and Aerospace coatings markets.<br />
Its former powder activity now operates as Powder<br />
Coatings, a separate Coatings business within <strong>AkzoNobel</strong>,<br />
and is the world’s largest manufacturer of powder coatings.<br />
In all four of its current business activities, International<br />
continues to be a major global force. It is the world market<br />
leader in heavy-duty coatings for shipbuilding and repair, the<br />
largest manufacturer of high performance protective coatings<br />
for building construction and maintenance, the leading<br />
supplier of yacht paints for pleasure boats, and a major coatings<br />
supplier to the world’s aerospace industry.<br />
Intersleek ® 900 – helping to reduce the<br />
environmental impact of shipping<br />
With an estimated 300 million tons of fuel consumed annually by the world’s fleet, there is a<br />
clear need to reduce the environmental impact of shipping. At this level of consumption, the<br />
industry emits some 960 million tons of CO 2 and 9 million tons of SO 2 annually.<br />
The International Maritime Organization estimates that without corrective action and the introduction<br />
of new technologies, air emissions due to increased bunker fuel consumption by the<br />
world shipping fleet could increase by 38 to 72 percent by 2020.<br />
For decades now, the industry has sought viable means of saving energy. One option is<br />
through the use of antifouling coatings. These improve the speed and energy efficiency of<br />
ships by preventing organisms such as barnacles and weeds from building up on the underwater<br />
hull and thus restricting the ship’s movement through the water.<br />
International Paint has supported the shipping industry with pioneering antifouling technology<br />
since the introduction of the first Self-Polishing Copolymer (SPC) antifouling in 1974. In 1996,<br />
International Paint introduced Intersleek ® 425, the first commercially available biocide-free foul<br />
release technology for fast craft. In 1999, the revolutionary Intersleek ® 700 for deep sea vessels<br />
was launched.<br />
This silicone-based technology works on a foul release basis by providing an extremely slippery<br />
surface to which fouling organisms have difficulty attaching themselves. Any which do<br />
succeed can normally only attain a weak hold and are in general easily removed.<br />
Within a short time, Intersleek ® 700 became the industry benchmark in foul release technology.<br />
It was followed in 2007 by Intersleek ® 900 – a unique new patented fluoropolymer<br />
foul release coating which significantly improves on the performance of Intersleek ® 700’s silicone-based<br />
system. With unprecedented low levels of average hull roughness combined with<br />
excellent foul release capabilities and good resistance to mechanical damage, Intersleek ® 900<br />
offers the benefits of foul release technology to all vessels with an average speed of above 10<br />
knots for the first time ever.
International Paint, with its renowned red propeller logo, is the world<br />
leader in high performance marine coatings<br />
A Corona spray gun spraying a powder coating onto a substrate.<br />
Powder coatings are more environmentally friendly than traditional<br />
paints as they do not contain solvents
222<br />
1<br />
ICI, p. 225<br />
London<br />
Alderly Park<br />
Billingham<br />
Jealotts Hill<br />
Runcorn<br />
Severnside<br />
Slough<br />
Teesside<br />
Winnington<br />
marks the place on the map where the company<br />
in question (see the left-hand column) was<br />
founded.<br />
Locations named in a chapter are listed on the<br />
left under the name of the relevant company. The<br />
fi rst location named is the place where the company<br />
was founded; all other locations are listed<br />
alphabetically.<br />
If locations cannot be distinguished from one<br />
another because they are too close together, a<br />
place already shown on the map or one that is<br />
central to those locations is given in parenthesis.<br />
Ireland<br />
Dublin <br />
Belfast <br />
Glasgow <br />
Scotland<br />
Wales<br />
Aberdeen <br />
Edinburgh<br />
<br />
<br />
Leeds<br />
Manchester<br />
Liverpool<br />
<br />
<br />
Birmingham<br />
England<br />
Cardiff<br />
<br />
Bristol <br />
<br />
France<br />
1<br />
London
223
224<br />
Soap and soda works in Widnes, Lancashire, in the 1890s.<br />
The technologies of the day were extremely polluting. Ludwig Mond,<br />
co-founder of ICI, devised a process for recovering sulfur from the<br />
manufacturing process, thus reducing pollution
The ICI legacy<br />
Imperial Chemical Industries (ICI) is unique among companies<br />
that have gone into creating <strong>AkzoNobel</strong> in that it<br />
was born on a ship. That vessel was the RMS Aquitania,<br />
aboard which the company’s constitution – the “Aquitania<br />
Agreement” – was drawn up during a trans atlantic crossing<br />
in 1926. ICI was the result of a merger of four British companies<br />
which came together with the objective of challenging<br />
the rest of the world’s chemical producers. The<br />
four were the alkali company Brunner, Mond & Co. Ltd<br />
(“Brunner Mond”); the British arm of Nobel Industries (the<br />
explosives concern established in 1870 by Alfred Nobel<br />
and described elsewhere in this volume); United Alkali;<br />
and British Dyestuffs. The merger was a response to two<br />
main factors. On the one hand, ICI’s founders feared the<br />
ascendancy of the German chemicals industry, which had<br />
emerged from World War I even stronger than before. On<br />
the other, they needed to find an answer to the growing<br />
power of the American chemical industry, with its aggressive<br />
promotion of free trade.<br />
The Aquitania Agreement<br />
Magnificence on Millbank<br />
Depression and disaster<br />
Into the age of plastics<br />
The invention of polythene<br />
The Fawcett disclosure<br />
An improved process for the production of<br />
polythene<br />
Polythene is patented<br />
Polythene is manufactured on industrial<br />
scale<br />
Polythene is used in radar<br />
The Ziegler process for polythene<br />
manufacture<br />
Profits from war<br />
The invention of Perspex ®<br />
Man-made fibers<br />
Terylene ® – the first polyester<br />
Nuclear fission<br />
Polythene enters the domestic market<br />
Revolution in refrigeration<br />
A new generation of dyestuffs<br />
225<br />
Overview<br />
The Dulux ® dog<br />
ICI becomes a pharmaceutical player<br />
The war against malaria<br />
The first usable penicillin<br />
A breakthrough anesthetic: Fluothane ®<br />
James Black invents beta-blockers<br />
Pesticides and hormonal weed killers<br />
The first hormonal weed killer<br />
Growing a new protein<br />
The environmental revolution<br />
Substitutes for CFCs<br />
Driving environmental standards<br />
Biopol ® – the biodegradable plastic<br />
Advanced materials for aerospace<br />
“Fewer but better” drugs<br />
Recession and turnaround in the 1980s<br />
ICI becomes a specialty chemicals and<br />
paints producer<br />
ICI focuses on high-growth, high-margin<br />
businesses<br />
Acquisition by <strong>AkzoNobel</strong>
226<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
In the 1870s Britain had had the world’s largest heavy chemical<br />
industry, focused chiefly on heavy bulk products such<br />
as soda ash, chlorine, sulfuric acid, bleach, and industrial<br />
explosives. The leading British company was Brunner Mond,<br />
founded in 1873 by John Tomlinson Brunner and Ludwig<br />
Mond, a brilliant German chemist who saw that the future for<br />
soda-ash production lay in the new Solvay process, which<br />
produced a purer and more economical ash than the older<br />
Leblanc manufacturing process. Soda ash was a key raw<br />
material for the glass, paper, soap and textile industries,<br />
among others. Brunner Mond licensed in the Solvay process<br />
in 1873 and within 20 years became the world’s biggest alkali<br />
manufacturing business.<br />
Alfred Nobel’s companies stretched throughout Europe<br />
and also operated in America. They were nowhere stronger<br />
than in Britain, where Nobel founded the British Dynamite<br />
Company in Glasgow in 1871. This British company, whose<br />
title soon changed to Nobel Explosives Ltd, was by 1886<br />
linked to four Nobel companies in Germany under a holding<br />
company called the Nobel-Dynamite Trust Company Ltd<br />
– a powerful combine which endured until the World War I,<br />
being formally disbanded in January 1915.<br />
United Alkali had its origins in the older Leblanc process for<br />
manufacturing soda ash. Although the new Solvay process<br />
produced superior soda ash, manufacturers using the<br />
Leblanc process managed to survive by producing chlorine<br />
as a by-product – something that even the brilliant Ludwig<br />
Mond had not managed to derive from the Solvay technique.<br />
A by-product of chlorine was bleaching powder, which found<br />
extensive use in the textile industry and which Mond had<br />
likewise been unable to recover from the Solvay system. In<br />
1891 the British companies using the Leblanc process amalgamated<br />
under the presidency of Sir Charles Tennant and<br />
renamed themselves the United Alkali Company. Capitalized<br />
at more than £8 million, it was the world’s largest chemical<br />
business at the time, with 48 factories in Britain.<br />
The British Dyestuffs Corporation was founded in 1919 by<br />
the amalgamation of British Dyes Ltd with Levinstein Ltd,<br />
the British Alizarine Company and a dozen lesser dyestuff<br />
manufacturers. Although a British chemist, W.H. Perkin, was<br />
first in the world to succeed in synthesizing a natural dye (the<br />
color mauve, which he extracted from aniline in 1856), by<br />
1914 Germany led the world in dyestuff manufacture, producing<br />
88 percent of all synthetic dyes. The whole of German<br />
industry suffered in the wake of the war, but it was surprisingly<br />
quick to recover. By the year of ICI’s foundation, the<br />
country’s leading chemical manufacturers – BASF, Hoechst,<br />
Bayer and Agfa – had not only recovered the dyestuff markets<br />
which they had dominated before 1914 but also leaped<br />
ahead in connected fields such as pharmaceuticals and photographic<br />
supplies. Even before the war, German industrial<br />
chemists were outstripping their British counterparts in the<br />
development of products such as varnishes, cellulose fibers,<br />
insecticides, pigments and perfumes. The combined power<br />
of German chemical manufacture, united under the umbrella<br />
of IG Farben, was in fact greater than before 1914.<br />
The British chemical industry made one important acquisition<br />
as a result of World War I however – that of the Haber-<br />
Bosch process for synthesizing ammonia. First used on an<br />
industrial scale in Germany in 1913, this process created<br />
synthetic ammonia by “fixing” nitrogen in the atmosphere.<br />
Used for the manufacture of both fertilizers and explosives,<br />
synthetic ammonia played an important role in sustaining<br />
Germany’s war effort. This process was appropriated by<br />
British chemists shortly after the 1919 Armistice and gave<br />
Brunner Mond the wherewithal to develop a British nitrogen<br />
industry. At the behest of the British Ministry of Munitions,<br />
a plant capable of producing 60,000 tons per year of<br />
ammonium nitrate by the Haber-Bosch method was built<br />
shortly afterwards by Brunner Mond at Billingham, near<br />
Middlesborough in north east England; it was to become the<br />
biggest single working asset of the new Imperial Chemical<br />
Industries combine.<br />
If the British chemical industry had much still to fear from its<br />
former enemy, Germany, it had just as much reason for disquiet<br />
in the face of its ally the United States. In 1920 Orlando<br />
F. Weber established Allied Chemical and Dye Corporation.<br />
Created out of the union of five American companies<br />
making everything from alkali to dyes, Allied came to the<br />
market valued at $282.7 million – a sum which outweighed<br />
the value of the entire British chemical sector. Weber had<br />
no patience with the traditional European cartel system<br />
and resolved to carve out a bigger slice of world export<br />
markets for Allied.<br />
By this time Sir Alfred Mond (the second son of Ludwig<br />
Mond) had assumed the leadership of Brunner Mond.<br />
Sir Alfred believed that the future lay with bigger business<br />
units and was the first to apply the term “rationalization” to<br />
the organization of business. His flair was much needed at<br />
Brunner Mond, for the investment in the Billingham ammonium<br />
nitrate plant, in combination with a costly lawsuit<br />
with Lever Brothers over the control of the alkali and soap<br />
industries in Britain, had left the company in need of capital.<br />
Sir Alfred began to look for a merger partner.<br />
Sir Alfred’s first inclination was to seek a merger with arch-rival<br />
IG Farben of Germany. He had always admired the German<br />
chemical industry’s technical brilliance and was interested in<br />
IG’s attempts to extract oil from coal. This vision was to yield,<br />
however, to the views of his fellow captains of industry during<br />
a series of ever more intense discussions during 1925 and<br />
1926; the outcome was to be the formation of ICI.<br />
Nobel Industries in Britain emerged from World War I very<br />
changed, and was further weakened by the bitter 20-week<br />
coal strike of 1926. The company’s chairman, Sir Harry<br />
McGowan, believed that Nobel Industries’ future lay outside<br />
its core competence in explosives and began to invest<br />
heavily in the motor industry. Governmental concern with<br />
the flagging performance of British Dyestuffs in the face of<br />
IG Farben’s technical superiority was to prompt a move of<br />
a different kind, however. Reginald McKenna, the former<br />
British Chancellor of the Exchequer, suggested to Sir Harry<br />
McGowan that a coalition of British companies should take<br />
over British Dyestuffs. Sir Harry suggested instead the creation<br />
of a “British IG” – a combination of Nobel Industries,<br />
Brunner Mond, United Alkali and British Dyestuffs itself. Thus<br />
were the seeds of the ICI concept first sown.<br />
Subsequent discussions of this proposal with Sir Alfred<br />
Mond proved initially unfruitful, however. Sir Alfred was still<br />
interested in the idea of a merger with IG Farben and was<br />
actively pursuing a project to license in the use of IG Farben’s<br />
oil-from-coal technology. Negotiation of this agreement was,<br />
however, to bring the eventual founders of ICI together on<br />
the RMS Aquitania.<br />
The Aquitania Agreement<br />
Sir Alfred crossed the Atlantic on August 21, 1926 to discuss<br />
the oil-from-coal project with Orlando Weber of Allied – for<br />
although the United States possessed its own rich reserves<br />
of oil, it was assumed that the Americans would also wish<br />
to be party to the extended use of IG’s new technology.<br />
Carl Bosch of IG Farben, meanwhile, set sail from Germany<br />
on 15 September with his own plan to negotiate an agreement<br />
with Allied concerning the oil-from-coal project.<br />
Sir Harry McGowan, who had just been on a business trip<br />
to Africa, feared that a “British IG” might be created in New<br />
York without the participation of Nobel Industries. He therefore<br />
caught the next westbound liner out of Southampton,
ICI was created by the merger of four companies, each with its own distinctive logo.<br />
The wavy lines in the Nobel Industries logo were borrowed for the new ICI logo<br />
227
228<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
arriving in New York on September 24. Over lunch with Sir<br />
Alfred Mond the next day, McGowan argued for a merger of<br />
the four leading British chemical companies, hinting that if<br />
Mond did not agree, Nobel Industries would link up with IG<br />
Farben. Mond was persuaded and the merger was agreed<br />
the following day. Carl Bosch and the IG Farben team were<br />
cut out of the equation, and the prospect of collaboration<br />
with IG was abandoned.<br />
Mond and McGowan returned to Britain on the Aquitania.<br />
During the voyage, it was decided that the new company<br />
was to acquire, by exchange of shareholdings, the capital<br />
of Brunner Mond, Nobel Industries, United Alkali (which had<br />
not yet been consulted), and British Dyestuffs Corporation.<br />
Mond and McGowan agreed to name the new company<br />
Imperial Chemical Industries Ltd, a name chosen – as the<br />
company’s first shareholder prospectus explained – “to<br />
lay emphasis upon the fact that the promotion of Imperial<br />
trading interests will command the special consideration and<br />
thought of those who will be responsible for directing the new<br />
Company.” The British Empire, shareholders were reminded,<br />
was “the greatest single economic unit in the world,” and it<br />
would be the avowed intention of the new combine “without<br />
limiting its activities in foreign overseas markets, especially<br />
to extend the development and importance of the Chemical<br />
Industry throughout the Empire.”<br />
The spoils of war<br />
Sir Alfred Mond became ICI’s first chairman, with Sir Harry<br />
McGowan assuming the positions of deputy chairman<br />
and president of the board. United Alkali agreed to the<br />
four-way merger that had been sprung upon them, and<br />
Imperial Chemical Industries was formally incorporated on<br />
December 7, 1926. It took its famous logo from the original<br />
logo of Nobel Industries and was ready for business on<br />
January 1, 1927. In its first year of trading, the new chemical<br />
giant sold £27 million worth of products and made a pre-tax<br />
profit of £4.5 million.<br />
Magnificence on Millbank<br />
On the day after the Armistice, with most of London still roaring drunk and cavorting joyfully<br />
in the streets, a young army major named Francis Freeth, who had been a chemist with<br />
Brunner Mond before the war, called on Lord Moulton in his office and urged him to send<br />
a chemical mission to join the British Army as it advanced through Germany towards the<br />
Rhine. The object, in Freeth’s words, was “to pinch everything they’ve got.” Specifically, he<br />
had in mind the BASF plant near Oppau on the Rhine, where the Haber-Bosch process had<br />
been in production since 1913. Raiding Oppau’s secrets as part of the spoils of war seemed<br />
to Freeth a much more satisfactory method than painstakingly trying to unravel the German<br />
patents. (BASF’s British patents were taken over anyway in the aftermath of war.)<br />
Moulton demurred, though not with great conviction. Others in Whitehall supported Freeth’s<br />
idea and in April 1919 a group of five British chemists duly moved into Oppau, then occupied<br />
by French troops. The BASF management protested to the French commanding officer<br />
ICI identified itself intimately with the British Empire. When the<br />
Registrar of Joint Stock Companies had objected to the proposed<br />
use of the word “Imperial” in the new company’s title,<br />
Sir Alfred Mond and McGowan protested to the President of<br />
the Board of Trade, stating, “We are ‘Imperial’ in aspect and<br />
‘Imperial’ in name … The developments which this Company<br />
has in view, we may confidentially inform you, will be of enormous<br />
value, both from the point of view of national defense<br />
and of the economic position of the Empire.”<br />
“The ICI”, as the company became familiarly known,<br />
employed 33,000 people working in alkali products, metals,<br />
explosives, dyestuffs, and general chemicals including chlo-<br />
rine, acids and synthetic ammonia. ICI’s chief business ally<br />
overseas became the American company DuPont, with which<br />
Nobel Industries had had a strong relationship prior to the<br />
foundation of ICI.<br />
Within two weeks of ICI’s registration as a company, the<br />
excavators were moving in to prepare the foundations of a<br />
magnificent headquarters on London’s Millbank, facing the<br />
Thames near the Houses of Parliament. Imperial Chemical<br />
House went up faster than any other structure of its size<br />
in Britain. It was the first building in the world to be lit by<br />
“artificial daylight” (provided by tungsten lamps in pale-blue<br />
globes); it also had its own artesian wells. The metal fittings<br />
were of a copper and nickel alloy called “Silveroid”, made by<br />
the Mond Nickel Company and using Ludwig Mond’s patented<br />
nickel manufacturing process. The same material was<br />
used to coat the almost 7-meter high main doors, made of<br />
cast bronze and modeled with panels in bas-relief illustrating<br />
the application of science to industry.<br />
In labor relations, the new company started with the reputation<br />
of Brunner Mond’s tradition of “co-workers in industry”<br />
and the works councils, which gave employees direct<br />
access to their managers, but, above all, with the concept<br />
of profit-sharing, which for Sir Alfred Mond lay at the heart<br />
of the co-partnership idea. “The best answer to socialism<br />
is to make every man a capitalist,” Sir Alfred wrote in 1927.<br />
that if he let the British in, they would shut down the plant and throw 10,000 people out of<br />
work. The British party was accordingly asked merely to observe the works, not to take measurements<br />
or draw plans. As they moved through the BASF plant, they found blacked-out dials<br />
on the machinery and great gaps where stairs and ladders had been removed between floors.<br />
The British scientists had to rely on memory, making up sketches and reports as quickly as<br />
they could after leaving. On the way home to England, their luggage was stolen from a locked<br />
and guarded railway wagon. One member of the party, however, had prudently kept his<br />
notes with him in a kitbag, and from these a report was put together, which enabled Brunner<br />
Mond to work out how the system could be constructed. Thirteen rough drawings formed the<br />
basis of the plant; they were drawn in such haste and enthusiasm by one of the Oppau party,<br />
Captain A.H. Cowap, that Brunner Mond’s office manager had to stand by him sharpening<br />
colored pencils as quickly as he broke them in his eagerness to get the details down.
ICI’s purpose-built headquarters on Millbank, London, were a monument<br />
to the art deco movement. Here craftsmen work on carvings in the<br />
unfinished building
230<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
In pursuit of this, he introduced the ICI Workers’ Shareholding<br />
Scheme, which enabled employees to buy the company’s<br />
ordinary shares below the market price and to pay for them<br />
in installments. As Lord Melchett (Sir Alfred Mond was made<br />
a peer in 1928), he told ICI’s Central Works Council in 1928,<br />
“I look on you as my friends and partners, without whom I<br />
could do nothing and without whom the shareholders would<br />
never see any dividends.”<br />
From the beginnings of ICI, Lord Melchett was determined<br />
to maintain his father’s philosophy of attracting the best<br />
scientific talent of the day to work on industrial problems.<br />
This was the only way, he believed, to match the technological<br />
achievements of IG Farben. Brunner Mond had had<br />
its own well-established head-hunting system. This tradition<br />
was continued within ICI and was supplemented by a<br />
scheme for identifying potential talent within Britain’s public<br />
schools and universities.<br />
To fertilize the new company with scientific talent, Lord<br />
Melchett followed another German practice, setting up a<br />
research council with the universities in 1927 through which<br />
leading academic scientists would be invited to brainstorming<br />
sessions with ICI scientists. The scheme was intended to<br />
provide ideas for promising lines of work in ICI laboratories.<br />
Within a year, ICI’s expenditure on research rose from<br />
£221,000 to £350,000, and recruitment of chemists and<br />
engineers burgeoned.<br />
Depression and disaster<br />
Formative influences:<br />
Sir John Brunner and Ludwig Mond<br />
Ludwig Mond was born in Cassel, in Germany, studied under Bunsen at Heidelberg, and<br />
settled in England in 1864. From his earliest work as a chemistry student, Mond was driven<br />
by the conviction that the wasteful processes of 19th century industry contained a huge<br />
potential for new products and businesses. It was this which led to the first of his scores<br />
of patents, filed in 1861, when he was 22 years, for recovering sulfur from alkali waste, and<br />
ultimately to his perception that the future of the alkali industry lay with the Belgian Solvay<br />
process for producing soda ash.<br />
John Tomlinson Brunner entered parliament in 1885 and gained the nickname the<br />
“Chemical Croesus”. He remained a conscientious backbencher for the next 25 years, and<br />
was made a baronet in 1894. Although he withdrew from the day-to-day business of running<br />
Brunner Mond in pursuit of public life, he remained chairman of the company until 1918.<br />
The characters of Sir John Brunner and Ludwig Mond had a formative influence on the<br />
company they founded, and indirectly but powerfully helped to shape the corporate ethos<br />
ICI’s research program was torpedoed by the Great<br />
Depression. Even before the Wall Street Crash, however,<br />
everything was going wrong at the new chemical giant. ICI’s<br />
success had been largely predicated on the Brunner Mond<br />
nitrogen plant at Billingham supplying an ever-increasing<br />
demand for fertilizers. But the forecasts were wrong. The<br />
world already had far too much production capacity.<br />
Furthermore, market-sharing agreements between ICI and<br />
IG Farben had failed to materialize. The collapse of the<br />
money markets in New York in October 1929 multiplied the<br />
consequences of the nitrogen over-supply for farm products<br />
of all kinds. The Billingham plant had been built on a<br />
scale far in excess of any realistic level of demand. Indeed,<br />
ICI came close to bankruptcy by the end of 1929.<br />
Could the investment at Billingham be rescued? The answer,<br />
Lord Melchett persisted in believing, lay in the dream of<br />
extracting oil from coal. But ICI’s future was in fact to be<br />
secured not by heavy chemicals and bulk commodities, or<br />
even by oil from coal, but from up to then neglected sections<br />
of the company such as Dyestuffs and Explosives. An<br />
entirely new kind of chemical industry was to develop at ICI<br />
– one built on plastics, man-made fibers, pharmaceuticals<br />
and agricultural chemicals.<br />
Into the age of plastics<br />
Plastics of a kind, though not known as such, had existed<br />
since 1862, when Sir Alexander Parkes’ new material – a form<br />
of nitrated cellulose known after its inventor as “Parkesine” –<br />
was exhibited for the first time at the International Exhibition<br />
in London. The better-known “Celluloid,” invented by the<br />
American John Wesley Hyatt in 1869, was also a nitrocellulose<br />
compound. Less flammable acetate resins were patented<br />
by Cross and Bevan in 1894 and phenol formaldehyde<br />
resins by the Belgian Leo Baekeland in 1909. Under<br />
the trade name of Bakelite ® , the latter was used for many<br />
domestic objects in the homes of the 1920s.<br />
of Imperial Chemical Industries. Mond’s passion for laboratory research and his incessant<br />
seeking after new markets that could be created out of scientific discovery gave Brunner<br />
Mond an edge of innovation, while Brunner’s radical instincts and non-conformist background<br />
molded the company’s reputation as a progressive employer in the tradition of the<br />
Rowntrees, Cadburys, Wedgewoods and Courtaulds. Brunner Mond brought to ICI several<br />
pioneering concepts in industrial relations. It was the first company to introduce (in 1884)<br />
a week’s holiday with pay for every worker who had completed a set number of shifts in<br />
the year. The holiday week’s pay was subsequently doubled to enable workers to take<br />
a proper break, and at a time of their own choosing, not when it suited the employer. Sir<br />
John Brunner also introduced the idea of an industrial “parliament” at which workers had a<br />
chance to question the boss in person –a tradition that was enshrined in ICI from the beginning.<br />
In Victorian Britain, such an idea smacked of an invitation to anarchy, if not outright<br />
subversion or insubordination.
The cover of ICI’s first in-house journal in 1928<br />
symbolized the company’s progressive ideas<br />
for linking workers and management,<br />
a philosophy inherited from Brunner Mond<br />
231
232<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
However it was German chemists who were in the vanguard<br />
of plastics research. In 1922 Hermann Staudinger published<br />
his findings about the structure of natural rubber, suggesting<br />
that it was composed of giant long-chain molecules. With this<br />
new understanding, scientists were able to begin developing<br />
much more flexible, truly plastic materials. In Britain, however,<br />
ICI was still thinking of materials based on nitrocellulose<br />
(which was almost explosive) or formaldehyde and urea,<br />
which the Billingham plant was well equipped to provide.<br />
Attractive possibilities certainly presented themselves for<br />
manufacturers of plastics. There was a rising demand for<br />
electrical gadgets for the home made of Bakelite ® and casein<br />
formaldehyde products, which was driven by the expansion<br />
in housing that continued even during the Depression. ICI<br />
acquired a majority stake in a firm called Croydon Mouldrite<br />
Ltd, a manufacturer of phenol-formaldehyde powders which<br />
was regarded as the most important British competitor to<br />
American-owned Bakelite ® . ICI then set about organizing<br />
a Plastics Division to coordinate its research into urea-formaldehyde,<br />
vinyl resins, nitrocellulose and phenol-formaldehyde.<br />
In 1938, all the strands, including the discovery of<br />
methyl-methacrylate (Perspex ® ), would be pulled together<br />
into a Plastics Group, but long before that, one of the key<br />
discoveries of the 20th century was made by accident in a<br />
laboratory at Winnington, home of the Alkali Group.<br />
The invention of polythene<br />
The word “plastics” was coined by ICI in 1927, but it was a<br />
1933 laboratory accident that led its scientists to discover a<br />
new polymer that was a landmark in its development – polythene<br />
(or polyethylene), the very first plastic. This product was<br />
to revolutionize industrial manufacture in the 20th century and<br />
facilitate the consumer revolution of the post-World War II era.<br />
ICI’s Francis Freeth, the aforementioned army major, was<br />
previously a believer in “blue-sky” research. Between 1919<br />
and 1922, Freeth spent time at the University of Leiden in the<br />
Netherlands, the home of one of Europe’s finest physics laboratories,<br />
to study how experimental techniques there were<br />
being applied to liquid–gas systems at high pressure and<br />
low temperatures. He imported one of Leiden’s finest glass<br />
blowers and two highly skilled Dutch instrument makers to<br />
help prepare the equipment for his work on ammonia-soda<br />
and oil-from-coal at ICI. The vessels they made for highpressure<br />
work paved the way for the experiments in which a<br />
revolutionary new polymer was to be made.<br />
Freeth recruited two young chemists from London<br />
University, John Swallow and Reginald Gibson, and sent<br />
each to study at Leiden University. While Gibson was there<br />
he sought help from Dr Anton Michels, a research assistant<br />
in the Thermodynamics Laboratory in Amsterdam who was<br />
working on the design of apparatus to make precision measurements<br />
at high pressures. A friendship evolved between<br />
the two men, and at Michels’ request, Gibson was sent to<br />
Amsterdam in 1928 to work with him for the next three years.<br />
The following year, two more bright graduates who would<br />
play key roles in the polythene story were recruited by ICI:<br />
Michael Willcox Perrin and Eric William Fawcett.<br />
By mid-1930, ICI’s research laboratories at Winnington numbered<br />
82 senior research staff, and faith in “blue-sky” research<br />
continued there even as the Depression began to bite. A<br />
report in July 1930 by the Winnington research management<br />
team noted that the Physical Chemistry Group was engaged<br />
on “work involving special techniques ... in general of a high<br />
scientific order, and it is out of work of this type that the big<br />
discoveries have usually come in the past ... we submit in our<br />
unanimous opinion that this type of work should be extended”.<br />
The recommendation was accepted, and work went ahead to<br />
see what interesting phenomena could be discovered at high<br />
temperatures, in vacuum and at high pressures.<br />
The project was sponsored by the Dyestuffs Group, which<br />
was interested in pressure-freezing as a method of isolating<br />
different dyestuffs. A young Cambridge engineer called<br />
Dermot Manning was given the task of designing vessels<br />
that could be used up to a pressure of 3,000 atmos-<br />
pheres: they became known, from their shape, as bombs.<br />
Early in 1931, the high-pressure apparatus, made in the<br />
Netherlands under Michels’ supervision, was installed at<br />
Winnington. Michels speculated that pressures above 1,000<br />
atmospheres might produce chemical reactions that would<br />
not normally happen except in the presence of catalysts.<br />
The pressure-freezing experiments for Dyestuffs came to a<br />
dead end, but ICI continued exploring high-pressure chemistry.<br />
Gibson and Fawcett began work with mixtures of ethylene<br />
and carbon monoxide. These were found to react readily<br />
at 160°C and 3,000 atmospheres to give a white, powdery<br />
substance which appeared to be a type of polymer. On the<br />
evening of Friday, March 24, 1933, Gibson and Fawcett set<br />
out to react ethylene and benzaldehyde at a temperature of<br />
170°C and a pressure of 1,900 atmospheres. The apparatus<br />
was left overnight and on the Saturday morning was found<br />
to have lost some gas. The two chemists raised the pressure<br />
back to over 1,900 and left it over the weekend. On Monday<br />
morning there was virtually no pressure left in the apparatus<br />
because a leak had developed in the oil line, and all the benzaldehyde<br />
had blown out of the test tube into the oil. When<br />
they dismantled the “bomb”, Fawcett noticed that the tip of the<br />
gas-inlet tube, which had been in the reaction space, looked<br />
as if it had been dipped in paraffin wax. It was the first recorded<br />
observation of polyethylene, an entirely new polymer.<br />
Analysis showed it to be a polymer of ethylene of fairly high<br />
molecular weight. Threads could be drawn from the molten<br />
material. Attempts to repeat the experiment were only<br />
occasionally successful. The first resulted in an explosion so<br />
violent that it smashed the gauges. But in May the experiment<br />
worked again, producing “a hard wax” solid containing<br />
no oxygen. Fawcett pressed hard to be allowed to continue<br />
the experiments but any commercial possibilities for the new<br />
material seemed remote. More than two years were to elapse<br />
before the ethylene experiments were resumed in December<br />
1935, with a new team of chemists, and the “bombs” this time<br />
safely isolated in brick cubicles. Fawcett, meanwhile, was<br />
nursing a bitter disappointment that his and Gibson’s discovery<br />
had not been allowed to develop. His determination to<br />
make the world of science recognize what had been achieved<br />
led in September 1935 to what became known as “the Fawcett<br />
disclosure”. It could easily have led to Britain losing one of its<br />
key wartime advantages over Germany in the development of<br />
radar, which was to prove the first major use of polythene.<br />
The Fawcett disclosure<br />
The occasion of the Fawcett disclosure was the Faraday<br />
Society’s General Discussion at Cambridge on “The<br />
Phenomena of Polymerization and Condensation.” It was<br />
attended by the world’s most eminent polymer scientists,<br />
including Wallace Carothers of DuPont, then working on his<br />
epoch-making discovery of nylon, and, from Hitler’s Germany,<br />
Hermann Staudinger and Kurt Meyer. Fawcett had applied for<br />
permission within ICI to give a paper on the polymerization of<br />
ethylene, which was at that time unknown. His request was<br />
granted – although patents had not yet even been applied<br />
for. Fawcett actually informed Staudinger privately about the<br />
ICI breakthrough on the evening before the conference.<br />
Staudinger, however, did not believe him. At the conference<br />
itself, Fawcett informed the assembled scientists that he<br />
had succeeding in making a solid polymer ethylene with a<br />
mole-cular weight of 4,000 by heating ethylene to 170°C,
ICI invented polythene, the world’s first plastic, by accident in 1933.<br />
This test tube shows an early sample of the breakthrough product<br />
Eric W. Fawcett, who worked with Reginald O. Gibson on the<br />
discovery of polythene<br />
233
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Imperial Chemical Industries<br />
The ICI legacy<br />
at a pressure of 1,000 atmospheres. Staudinger refused to<br />
comment. In 1937, two years after ICI’s patents on polythene<br />
were safely out, one of IG Farben’s top polymer chemists,<br />
a Dr Ambros, visited ICI and was heard to remark: “I don’t<br />
know how we missed it.”<br />
An improved process for the production of polythene<br />
Further experiments in polymerization occurred at ICI which<br />
were to considerably improve the quality of polythene.<br />
On December 20, 1935, Michael Perrin, John Paton and<br />
Edmond Williams set up an experiment to make polythene<br />
using ethylene alone. The temperature and pressure were<br />
the same as in Fawcett and Gibson’s first experiment, but the<br />
outcome was different. Pressure started to fall in the “bomb”<br />
– apparently because the ethylene was escaping through a<br />
leaky joint. Perrin’s lab assistant, Frank Bebbington, periodically<br />
raised the pressure back to its original level of 2,000<br />
atmospheres. When all the ethylene in the secondary compressor<br />
was used up, the “bomb” was cooled and opened.<br />
In Perrin’s words, “it was with no surprise but considerable<br />
pleasure that I saw the vessel apparently filled with a white<br />
powder.” There were eight-and-a-half grams of it, more than<br />
double the amount that Fawcett and Gibson had succeeded<br />
in making from all their experiments put together.<br />
It was some months before the team realized that their success<br />
was an accident. IG Farben’s chemists had probably been<br />
right in their assertions that ethylene would not poly-merize<br />
– but a trace of oxygen in the ethylene, which had been supplied<br />
in cylinders by the British Oxygen Company, had acted<br />
as a catalyst. As extra ethylene was fed in to counteract the<br />
leak, the oxygen entering with it had sustained the reaction.<br />
Polythene is patented<br />
By February 1936 the first British provisional patent for polythene<br />
had been filed. By April a brand name, “Alketh”, later<br />
changed to Alkathene ® , was registered for the material.<br />
Complete British patent specifications were filed in Septem-<br />
ber 1937 for the manufacture and conversion of the polymer<br />
into threads and films. The trade mark Alketh was regis-<br />
tered in April 1936 and, in November 1937, the generic<br />
name polythene was introduced to describe solid polymers<br />
of ethylene. In America both DuPont and Union Carbide mapped<br />
out their own paths for the making of polythene, but ICI’s<br />
patents ensured rich royalties for ICI in the U.S. market.<br />
Polythene is manufactured on industrial scale<br />
Polythene was to find many and varied uses in the development<br />
of packaging, insulation materials and household<br />
goods, but it was its application in radar that initially drove<br />
production. From an 80 cc reactor in the original experiments,<br />
development moved to a 750 cc size in November<br />
1936 and, by January 1937, to a 9-litre vessel capable of<br />
producing 10 tons of polythene a year. By September 1938,<br />
ICI had designed a 50-litre reactor capable of making 50<br />
tons a year. The first full-scale polythene plant, a 100-tonner<br />
(comprising two 50-litre vessels) went into production on<br />
September 1, 1939. Polythene was about to meet its hour in<br />
history, while, for ICI as a whole, the war would have a profound<br />
and catalytic effect on its development in many areas<br />
– plastics, man-made fibers, pharmaceuticals, agricultural<br />
chemicals and, for a brief but momentous period, in giving<br />
birth to the atomic age.<br />
Polythene is used in radar<br />
Radar, a system that locates the position of objects in space<br />
by using radio waves, is an acronym for Radio Detection<br />
and Ranging. Radar had been developed on both sides of<br />
the Atlantic in the late 1920s and early 1930s and was perfected<br />
for military purposes in 1935 by R.A. (later Sir Robert)<br />
Watson-Watt. Before World War II broke out, Britain was<br />
already equipped with a chain of radar masts to give early<br />
warning of approaching aircraft, but the masts were awkwardly<br />
high and obvious targets themselves for air attacks.<br />
To enable radar sets to be fitted into warships or aircraft, it<br />
was first necessary to reduce the wavelength and hence<br />
the size of the “mirror” needed to concentrate the electromagnetic<br />
beam. At the outset of war, no one could generate<br />
electromagnetic waves at wavelengths measured in<br />
centimeters – “centimetric radar”. That problem was solved<br />
by two British scientists, J.T. Randall and H.A.H. Boot, who<br />
discovered the cavity magnetron, which could generate<br />
a wavelength of ten centimeters or less. But the strength<br />
of the signals being bounced back from the target was<br />
low, and without exceptional insulation there was a risk<br />
that they would be lost in the feeders from the aerial into<br />
the equipment.<br />
Neither of the two materials then widely used for electrical insulation<br />
– rubber and gutta-percha – was good enough to make<br />
centimetric radar a practical proposition. Polythene was.<br />
The first ton of polythene made in ICI’s full-scale manufacturing<br />
plant was delivered for experimental radar cables<br />
shortly after the outbreak of war. The plant was quickly doubled<br />
in capacity and the second unit came into production<br />
on June 1, 1940. All output was then channeled to radar<br />
use; although polythene-insulated sets were not ready in<br />
time for the Battle of Britain that summer, the decision had<br />
already been taken to standardize all future radar cables on<br />
the use of polythene.<br />
The first sensational use of mobile radar was at the end of<br />
the Blitz on London, when RAF night fighters began to locate<br />
and shoot down German bombers, and then at the Battle of<br />
Cape Matapan against the Italian fleet in March 1941, one<br />
of the most decisive British naval victories since Trafalgar. It<br />
was largely a night action, and the radar sets installed in the<br />
British battleships enabled the British guns to be so accurate<br />
that the Italians lost three heavy cruisers, a six-inch gun<br />
cruiser, three destroyers and a battleship, while the British<br />
lost only one naval aircraft and suffered no casualties or<br />
material damage to the fleet.<br />
Radar proved a decisive advantage for the Allies in the<br />
Atlantic war too. March 1943 had been the worst month of<br />
the Atlantic war for the Allies, with 43 ships sunk in the first<br />
20 days. Following the introduction of centimetric radar, no<br />
Allied ship was lost to U-boats in the Atlantic between the<br />
middle of May and September 1943, and the German navy<br />
never regained supremacy. The Germans were employing a<br />
bulkier insulating material and their radar was consequently<br />
less effective.<br />
The Ziegler process for polythene manufacture<br />
By 1945, the Alkali Group had the capacity for producing<br />
about 5,000 tons of polythene a year. This still required a highpressure<br />
process, however, and called for a feedstock based<br />
on alcohol derived from molasses. The discovery of how to<br />
make polyethylene of a high molecular weight at normal<br />
temperatures and pressures using oil instead of alcohol was<br />
made not by ICI but by Karl Ziegler, a German chemist, in<br />
1950. By this time, ICI’s original patent for polythene manufacture<br />
had expired and two American oil companies, Phillips<br />
Petroleum and Standard Oil of Indiana, independently developed<br />
their own low-pressure processes. With their ready<br />
access to domestic oil resources, American companies were<br />
well placed to develop oil-based plastics instead of using an<br />
alcohol-based feedstock. The need to keep pace with these
Imperial Chemical Industries<br />
The ICI legacy<br />
technological advances forced ICI to license in the Ziegler<br />
process and produce its own polythene from oil.<br />
Profits from war<br />
ICI dominated Britain’s chemical industry and played a pivotal<br />
role in Britain’s war effort. Ammonia supplied the basis<br />
of nitric acid, essential for explosives; the technology of dyestuffs<br />
could be applied variously to explosives, gases or pharmaceuticals.<br />
ICI also offered Britain’s largest pool of scientific<br />
talent combined with industrial resources. As war became<br />
increasingly probable, the company negotiated various<br />
“agency” roles with the government – a system designed<br />
to avoid profiteering by which government paid the costs of<br />
plant for war production which would be useless in time of<br />
peace. With 25 such factories producing material ranging<br />
from aircraft alloys to mustard gas and detonators, ICI was<br />
the government’s largest industrial agent in the World War II.<br />
ICI’s sales grew enormously during the war, and so did its<br />
profits, though these were greatly reduced by wartime<br />
taxation. The war gave a great push to innovations and discoveries<br />
within the company on which much post-war business<br />
would be built. Important breakthroughs in weed killers<br />
and pesticides were made in ICI’s plant-protection laboratories,<br />
and its infant pharmaceutical business developed out of<br />
wartime necessity for such drugs as the anti-malarial drug<br />
Paludrine ® . But the ICI discovery to make its greatest impact<br />
on the war – and to open up entirely new markets in later<br />
years – was Perspex ® .<br />
The invention of Perspex ®<br />
Perspex ® , the trade name for a non-splintering transparent<br />
sheet made from methyl methacrylate, was the result of<br />
a process of synthesis invented in 1932 by ICI’s Dr John<br />
Crawford. Its wartime role as the material for aircraft cockpit<br />
canopies was the spur for its invention. Reginald Mitchell,<br />
the designer of the new fighter plane later to be known as<br />
the Spitfire, was searching in the early 1930s for a suitable<br />
transparent material to enclose the pilot’s cockpit in a sliding<br />
canopy. Glass splintered, and celluloid had terrible problems<br />
of opacity. A German firm, Rohm and Haas of Darmstadt,<br />
was experimentally developing a similar substance called<br />
Plexiglas ® at the time, but the German process was expensive<br />
and complex. Crawford set to work in 1931 to devise a<br />
cost-effective and practical manufacturing process for methyl<br />
methacrylate. This he achieved by mixing acetone cyanohydrin<br />
with sulfuric acid, adding methanol to the products<br />
and isolating the “ester” by steam distillation. The reaction<br />
needed to be carried out with specific catalysts present,<br />
such as copper and sulfur. The working out of the process<br />
was widely recognized as a brilliant piece of chemistry. The<br />
name Perspex ® – from the Latin “to see through” – was given<br />
to the new material, and the trademark was registered on<br />
November 16, 1934, being first incorporated in a Spitfire<br />
fighter plane two years later.<br />
The war not only hugely increased demand for Perspex ®<br />
in aircraft but also inadvertently discovered an entirely new<br />
market for the new product as an optical material. Surgeons<br />
treating wounded pilots discovered that fragments of<br />
Perspex were tolerated by the body’s tissues, even when<br />
they penetrated the eye. An ophthalmic surgeon named<br />
Harold Ridley went on to pioneer the use of a special grade<br />
of Perspex ® , known as CQ, for intraocular surgery, replacing<br />
the natural lens of the eye after operations such as those for<br />
cataracts. Perspex ® became the chief material for contact<br />
lenses until the advent of alternatives to the hard lens, now<br />
known as “soft” and “gas-permeable” lenses, which use a<br />
different formula of plastic.<br />
With its enormous versatility, Perspex ® remains a key invention<br />
for ICI. <strong>Today</strong> it is used all over the world for signs, light<br />
fittings, glazing, dentures, technical models, sanitary ware<br />
and lightweight furniture. Despite ICI’s almost simultaneous<br />
discovery of polythene, Perspex ® was the first of the modern<br />
plastics to be in commercial production by 1939 as an<br />
entirely new business for the company.<br />
Man-made fibers<br />
Alongside the infant plastics industry, the other great development<br />
in man-made materials during the 1930s had taken<br />
place in fibers, when DuPont announced its discovery of<br />
nylon at the New York World’s Fair in October 1938. The discovery<br />
of nylon founded a whole new industry without which<br />
most modern clothing and a huge variety of other synthetic<br />
textile products would be inconceivable. A polymer of high<br />
molecular weight achieved by chemical condensation, nylon<br />
was the result of 10 years of “blue-sky” research by a young<br />
chemist from Harvard named Wallace Carothers. Nylon’s<br />
molecules could be drawn into fibers of unusual strength and<br />
were superior in many ways to natural fibers or chemically<br />
modified ones such as rayon. In 1939, ICI took out a license to<br />
manufacture the new fiber. Realizing that it needed the experience<br />
of a specialized textile firm, ICI formed a partnership<br />
with Courtaulds, then the world’s largest producer of viscose<br />
rayon. The new company was registered in January 1940<br />
under the name of British Nylon Spinners. It immediately<br />
commenced manufacturing nylon for parachutes – a role<br />
that became critical to Britain’s war effort when Japan’s entry<br />
in December 1941 cut off large supplies of natural silk.<br />
Terylene ® – the first polyester<br />
In 1941, ICI was presented with the discovery that was to lead<br />
to the creation of Terylene ® , the first polyester. This discovery<br />
had been made by two chemists working in the research laboratory<br />
of a Manchester company called the Calico Printers’<br />
Association. One of these chemists, J.R. (Rex) Whinfield,<br />
had become increasingly interested in Carothers’ work on<br />
synthetic fibers at DuPont. In 1935 he urged Calico Printers’<br />
Association to likewise enter the field of synthetic fibers. Five<br />
years went by, however, before his advice was followed. When<br />
Whinfield, assisted by a colleague named J.T. Dickson, was<br />
permitted by his employers to re-open the line of inquiry which<br />
Carothers had explored but then abandoned, he adopted a<br />
different approach from the American chemist. Whereas<br />
Carothers had worked with aliphatic acids, which have a<br />
long-chain molecular make-up, Whinfield chose one of the<br />
so-called aromatic acids, with a different structure including<br />
a benzene ring. This was terephthalic acid. As Whinfield suspected,<br />
the resulting molecular chain was closely packed and<br />
strong, and highly resistant to melting.<br />
Terephthalic acid was, however, notoriously difficult to react,<br />
being extremely impure. J.T. Dickson devised a way to purify<br />
it, however, and created a few grams of a polymer which had<br />
most of the properties of nylon as well as certain unique ones<br />
of its own. The new fiber was less affected by water than nylon<br />
and it could be crimped to give the feeling of a woolen yarn.<br />
It was also exceptionally resistant to wrinkling and could be<br />
heat-set in pleated skirts, which became one of the great early<br />
successes of Terylene ® . Unlike rayon or cellulose acetate, it<br />
was, moreover, highly resistant to sunlight through glass and<br />
made excellent curtains. Net curtaining became one the biggest<br />
markets for the new synthetic fiber.<br />
Whinfield had already chosen the name Terylene ® for his<br />
invention when the Calico Printers’ Association, interested in<br />
the possibility of a joint venture, brought it to ICI. In 1944, after<br />
conducting its own research into the new fiber, ICI entered into<br />
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Imperial Chemical Industries<br />
The ICI legacy<br />
a licensing agreement with the Calico Printers’ Association<br />
for the production of Terylene ® . The first piece of Terylene ®<br />
fabric was woven at the Shirley Institute in Manchester in<br />
August 1946. Huge tonnages were confidently anticipated.<br />
The first commercial sale of Terylene ® in Britain was on<br />
October 4, 1948, to the Nottingham firm of Dobson and<br />
Braine for the manufacture of lace curtains. Two years later<br />
ICI decided to invest £10 million in a plant at Wilton to produce<br />
5,000 tons of Terylene ® a year. This went into production<br />
in 1954. It was supplied with its raw polymer by<br />
another Wilton factory under the control of Dyestuffs. So<br />
rapidly did the business grow that by 1956 ICI had created<br />
a Fibers Division. The success of Terylene ® pushed ICI<br />
into the synthetic fibers business and was the driving force<br />
behind the company’s abortive 1961 bid for Courtaulds,<br />
which was its single biggest customer for Terylene ® and<br />
which is described elsewhere in this volume. The bid failed,<br />
but ICI did subsequently gain control of the jointly owned<br />
British Nylon Spinners and in 1966 merged it with its Fibers<br />
Division to make a completely new company, ICI Fibers Ltd.<br />
Terylene ® had the characteristic of blending better than nylon<br />
with natural fibers such as cotton and wool. This opened<br />
the way to the “easy-care” revolution in clothing, which was<br />
based on a 50:50 or 67:33 cotton/polyester blend. Although<br />
never developed for wartime use, Terylene ® was undoubtedly<br />
the most influential of the inventions of that period in<br />
terms of postwar business for ICI. But there was one discovery<br />
of the 1930s which overshadowed all others in its<br />
portents for the world; one in which ICI as Britain’s leading<br />
science-based industrial group was to play a small but<br />
highly significant role. That discovery was the atom bomb.<br />
Nuclear fission<br />
Soon after the outbreak of war, an ICI scientist drafted<br />
a paper which stated: “The year 1939 is likely, in the future, to<br />
be remembered not so much for the start of the present war<br />
than as the date of the discovery of a new phenomenon in<br />
physics which has been given the name of ’nuclear fission.’<br />
The importance of this discovery lies in the certain proof,<br />
which it provides, that the enormous store of sub-atomic<br />
or nuclear energy available in matter can be released and<br />
controlled for practical use. It may mark the introduction of<br />
a new technical era in civilization and lead to the development<br />
of a source of power which will allow for the re-orientation<br />
of world industry.”<br />
The first steps towards this discovery had been taken at the<br />
end of the 19th century with the work on radioactivity done in<br />
Germany by Roentgen, the discoverer of X-rays, and in Paris<br />
by Pierre and Marie Curie. Further key links had been added<br />
to the chain by Ernest Rutherford, John Cockcroft and James<br />
Chadwick in Cambridge, Enrico Fermi in Rome and Irene<br />
Curie and Pierre Joliot in Paris. The latest burst of discoveries,<br />
to which the ICI paper referred, originated with the German<br />
chemist Otto Hahn, the Austrian physicist Lise Meitner and<br />
her nephew O.R. Frisch and, independently, Pierre Joliot.<br />
These findings proved that the release of atomic energy from<br />
uranium was possible. The papers embodying this work were<br />
freely available – many were published in the distinguished<br />
journal Nature – and speculation had ranged freely over the<br />
implications not only for industry but also for weapons. The<br />
words “super bomb” were much in evidence.<br />
In the spring of 1939, the British government began to give<br />
consideration to the defense implications of pure uranium compounds.<br />
Work went on without any great urgency until a report<br />
produced by Professor Rudolf Peierls and O.R. Frisch changed<br />
the official attitude almost overnight. Together the two men had<br />
analyzed a key paper published by Niels Bohr, a brilliant scientist<br />
from Copenhagen, just two days before the outbreak of war.<br />
In this paper, Bohr had put forward his theories that fission was<br />
more likely to occur in the light isotope of uranium, U235, than in<br />
U238, which forms almost 99.3 percent of natural uranium. The<br />
problem would be how to separate them. Speaking 46 years<br />
later, the then Sir Rudolf Peierls recalled: “Our main motivation<br />
was that we suspected the Germans might have had the<br />
same ideas and might in fact be further advanced, and such a<br />
weapon in the hands of Hitler would have been very frightening.<br />
We knew there could be no defense; the only thing to do would<br />
be to have the weapon yourself and use it as a deterrent.”<br />
Peierls and Frisch propounded a critical size for the bomb and<br />
proposed separating the isotopes by thermal diffusion to produce<br />
a lump of pure U235. They also suggested making the<br />
bomb in two or more sections, to be kept separate until the<br />
moment for explosion, and they gave a warning about the dangers<br />
of radiation, which they predicted would be fatal to living<br />
beings for a long time after the bomb had gone off. Interest<br />
in the bomb project was made still more urgent by the information<br />
that some French scientists had managed to smuggle<br />
out of occupied France the world’s entire stock of heavy water.<br />
(Heavy water resembles ordinary water in appearance and<br />
chemical behavior, but it has a particular hydrogen isotope<br />
which makes it efficient in slowing down neutrons, a vital part<br />
of the process of atomic explosion.) The British government’s<br />
special uranium committee called on ICI to help transforming<br />
scientific theory into industrial fact; of all British companies, ICI<br />
alone had the scientific and industrial range needed to comprehend<br />
and coordinate the central processes. ICI was eager<br />
to develop what it saw as a new source of power which had<br />
not only wartime uses but, also applications which would be<br />
revolutionary in peacetime.<br />
The company’s concern was chiefly with the production of<br />
U235 or uranium hexafluoride. Despite initial difficulties, ICI’s<br />
scientists – working under the code name “The Directorate of<br />
Tube Alloys” – managed to produce this compound in sufficient<br />
quantities to make its use in a bomb a feasible proposition.<br />
By July 1941 ICI was confident enough to report that a bomb<br />
could be in production by the end of 1943. In the same year,<br />
President Roosevelt of the United States offered to pool<br />
American resources with the British on a joint development.<br />
But the British, who were ahead of the Americans at that<br />
stage, rejected the offer, wishing to keep the research under<br />
British control. The consequences were swift and irreversible.<br />
The United States intensified its own research efforts and<br />
within months outstripped Britain. British Prime Minister<br />
Winston Churchill made every effort to restore co-operation<br />
and in August 1943 succeeded in persuading Roosevelt<br />
to share American atomic research and resources in the<br />
common war effort. But the work was based in the United<br />
States and resulted in a “brain drain” across the Atlantic as<br />
American re-quests for British scientists and engineers were<br />
speedily met. Several were sent by ICI. Professor Rudolf<br />
Peierls, O.R. Frisch and Frank Kearton (later Lord Kearton,<br />
chairman of Courtaulds) were among the British scientists<br />
and engineers attached for a while to the so-called Kellex<br />
Corporation in New York – the anonymous-sounding business<br />
set up by the cereal manufacturers Kellogg’s to cloak<br />
work on the atomic project.<br />
Meanwhile in Britain, ICI continued its efforts to produce uranium<br />
on an industrial scale. By the spring of 1943 a pilot plant<br />
was in operation producing up to 1,000 pounds of uranium a<br />
week. In April 1945, however, ICI’s work in this field was halted.<br />
Under the post-war government of Clement Atlee, the development<br />
of atomic energy in Britain was taken over by the newly<br />
established UK Atomic Energy Authority. ICI provided two men<br />
to key appointments in that body – Christopher Hinton and<br />
Michael Perrin – but from thenceforth, ICI was no longer the<br />
driver of nuclear research in Britain. A brief but intense chapter<br />
in the company’s history had come to an end.
J.R. Whinfield, originally of the Calico Printers’<br />
Association, invented the world’s first polyester<br />
fiber, Terylene ® . ICI developed Terylene ® into<br />
a global business, and Whinfield finished his<br />
career on the board of ICI Fibres<br />
237
238<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
Polythene enters the domestic market<br />
In the wake of World War II, Britain was very down-at-heel.<br />
Clothing was still rationed, furniture was sold under the<br />
“Utility” label and kitchens were still equipped with enamel<br />
bowls, stone sinks and cast-iron stoves. Soon, however, a<br />
housing boom commenced; within ten years, one in every<br />
five people in Britain would be living in new post-war houses.<br />
New factories and housing estates demanded a new internal<br />
environment, and it was the research chemist who provided<br />
the materials for it.<br />
Nylon and Terylene ® made immediate inroads on the sales<br />
of traditional fabrics such as wool, cotton and silk as soon<br />
as they came on the civilian market. Detergents were first<br />
marketed for the housewife under brand names in 1951,<br />
and washing machines and refrigerators revolutionized the<br />
middle-class kitchen. Along with washing machines came<br />
unbreakable buckets, bowls and brushes made from polythene.<br />
The first polythene bowls began appearing in the<br />
shops as early as 1948. They quickly became popular as<br />
their advantages were realized – bright, clear colors, long<br />
life, resistance to chipping or rusting, quiet in use and<br />
much safer when washing up precious glass or china. ICI<br />
manufactured molded polythene: it sold the raw material in<br />
bulk, usually in the form of chips. Sales of this new material<br />
expanded enormously with the rise of supermarkets and<br />
self-service, and, indeed, helped to bring about the shopping<br />
revolution of the 1950s. For the first time, customers could<br />
see what they were buying, even though it was pre-packaged.<br />
Plastic bags and carriers were the next to be<br />
developed, and polythene was used to coat cardboard for<br />
milk and soft-drink cartons.<br />
Revolution in refrigeration<br />
Another type of plastic – polyurethane foam – had a comparable<br />
impact on the way we live. Polyurethanes were<br />
invented by Otto Bayer in Germany just before World War II;<br />
they were developed by IG Farben as foams for insulating<br />
material in V2 rockets and some aircraft and military vehicles.<br />
The details of polyurethane technology were brought<br />
to Britain after the war by the Allied commission on German<br />
wartime industrial development, and ICI’s Reg Hurd was one<br />
of the chemists who played a major role in its progress thereafter.<br />
Polyurethane foams are made from a combination of<br />
resins and polyisocyanates: these react with each other, cre-<br />
ating a foaming structure. Early types of polyurethane foam<br />
were made from a resin known as 2:4 toluene di-isocyanate,<br />
or TDI. Rigid foams fill cavities and bond strongly to most<br />
surfaces, providing immense strength. TDI foams, however,<br />
give off noxious vapors during application. Hurd decided to<br />
try to make foams from a different polyisocyanate, Diphenyl<br />
Methane Di-isocyanate, or MDI. MDI was much safer to<br />
handle, but conventional wisdom had always been that<br />
it was impossible to make foam from it. Hurd, however,<br />
developed a method to make the substance foam, and his<br />
breakthrough coincided with a boom in refrigerated cargo<br />
ships and the whole refrigeration industry. MDI was stronger<br />
and more fireproof than the cork traditionally used for insulating<br />
the cold-storage sections of ships and also safer to<br />
apply than TDI. Very soon ICI was providing foam to fill cold<br />
stores, refrigerated transport and carbon dioxide tankers;<br />
chemical plants and pipelines were also being insulated with<br />
rigid foam.<br />
From the consumer’s point of view, the development of<br />
MDI foams revolutionized the manufacture and price of<br />
domestic fridges and freezers. By the early 1960s they<br />
were becoming a standard fitting in British kitchens instead<br />
of a luxury item, and frozen food gained sweeping popularity.<br />
During the 1960s ICI introduced developments which<br />
greatly extended the market for MDI foams, producing<br />
applications as diverse as soles molded directly to shoes<br />
and impact-resistant car bumpers.<br />
A new generation of dyestuffs<br />
Almost simultaneous to the discovery of MDI foams came<br />
the creation of synthetic dyestuffs. The first synthetic dyes<br />
had been discovered in England in 1856 by William Henry<br />
Perkin, but Germany quickly seized industry leadership and<br />
by 1914 commanded nearly 90 percent of the global market.<br />
The collapse of the European dyestuffs cartels after World<br />
War II enabled Britain to expand her export markets, but until<br />
the late 1940s there had been no major discoveries in the<br />
industry since the development of azoic dyes in 1912.<br />
Nylon and polyester fibers demanded new dyestuffs. Within<br />
ICI alone, approximately 3,000 new potential dyes were<br />
being synthesized and screened every year. The synthetics<br />
manufacturers were vigorous in promoting their own products,<br />
but ICI continued its work on dyes for natural fibers, for<br />
which a huge market still existed. ICI’s chemists sought to<br />
find a new bright wool dye which would be colorfast when<br />
washed. They had a totally new idea: to modify the structure<br />
of some known dyes so that they would undergo a chemical<br />
reaction with the wool fibers. Instead of water-soluble wool<br />
dyes, which were attached to the fibers by mere physical<br />
forces, the ICI chemists were trying to produce a chemical<br />
bond between dye and fiber, making the color part of the<br />
fiber itself.<br />
One of these chemists, Dr W. E. Stephen, had prepared<br />
derivatives of azo dyes with derivatives of trichlorotriazine, or<br />
cyanuric chloride. This did not work with wool, but Stephen’s<br />
colleague Ian Rattee realized that these dyes might work well<br />
with cotton, producing water-soluble dyes which would be<br />
colorfast even when washed. Within six months, three promising<br />
Procion ® reactive dyes had been chosen for development<br />
– a red, a blue and a yellow. The three-dye range was<br />
launched in March 1956. By 1961, demand for Procion ® dyes<br />
was running at 600 tons a year. The investment in Procion ®<br />
dyes reached break-even point by 1972, only sixteen years<br />
after they were first recognized as a workable discovery.<br />
This success was complemented by ICI’s development of<br />
effective dyes for polyesters.<br />
The Dulux ® dog<br />
The post-war explosions of color in clothes and domestic<br />
utensils were matched by comparable advances in the<br />
paints which decorated homes and offices, and in ease of<br />
use which transferred much of the business of decorating<br />
from the professional to the do-it-yourself enthusiast. ICI had<br />
been concerned with paints and lacquers almost from its<br />
inception; Dulux ® was a brand name used in the early days<br />
of ICI’s existence. Created in fact not by ICI but by DuPont<br />
and first launched by that company as an automotive paint in<br />
1926, Dulux ® was the first of the alkyd-based paints, which<br />
were an advance on the old, lead-based types, offering quick<br />
drying in combination with high gloss. In Britain, however,<br />
the name was used for a range of paints for the domestic<br />
rather than the automotive market.<br />
In those days, however, decorators and their suppliers were<br />
the main customers; even in the early 1950s, the advertising<br />
slogan was, “Say Dulux ® to your decorator.” But by then the<br />
do-it-yourself revolution was just around the corner. Nearly<br />
three-quarters of all wallpaper sold in Britain by the second<br />
half of the 1950s was directly to the public; sales of portable<br />
electric drills rocketed and even furniture began to be<br />
sold in kits which claimed that “All you need is a screwdriver.”
Frank Rose (right) and Frank Curd, discoverers of the anti-malarial drug<br />
Paludrine ® , which played an important role in World War II
240<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
By 1953, Dulux ® was on the retail market. It rapidly rose to<br />
become the brand leader, and 10 years later an Old English<br />
sheepdog was used in its advertisements for the first time,<br />
being chosen as a symbol of “family.” The breed was relatively<br />
uncommon at the time, but under the influence of the advertisements<br />
has become widely popular; indeed, puppies are<br />
often advertised for sale as “Dulux ® puppies”. Dulux ® Brilliant<br />
White, a breakthrough in home decorating, was a success<br />
from its launch in the mid-1960s. Dulux ® paint, produced on<br />
ICI’s main paint manufacturing facility at Slough, is one of the<br />
very few products which go directly from ICI to the customer in<br />
the high street. In the words of Philip Hanscombe, managing<br />
director of the Paints Division in 1986: “Many people think of<br />
ICI as Dulux ® ; the brand gives the company a humanity.”<br />
ICI becomes a pharmaceutical player<br />
Lord Melchett (Sir Alfred Mond) had wanted ICI to be a<br />
research-based company whose innovations would match<br />
those of its great German rival, IG Farben. But the collapse<br />
of its cornerstone business, the nitrogen market, in the late<br />
1920s and the world depression that followed forced deep<br />
cuts in its research budgets, which did not begin to rise again<br />
until the mid-1930s. By this time the whole chemical industry<br />
was undergoing profound change, away from the old 19th<br />
century bulk commodities towards “fine” organic chemistry.<br />
ICI’s research policy began to change direction in response.<br />
Pesticides, pharmaceuticals, synthetic rubber, fibers and<br />
plastics were among the new developments clamoring<br />
for attention.<br />
After much debate within the company’s senior management,<br />
ICI finally took the plunge into pharmaceuticals in<br />
1936, six years after Lord Melchett’s death. An ICI board<br />
minute of June 11, 1936, authorized an initial “grant” of<br />
£5,000 a year for five years from October 1936 for “research<br />
by the Dyestuffs Group in regard to synthetic organic pharmaceuticals”.<br />
A team of seven chemists was appointed to<br />
search for new drugs and one of the seven was Dr Frank<br />
Rose, an azo chemist who was to become the discoverer of<br />
the anti-malarial drug Paludrine ® .<br />
The war against malaria<br />
Efforts to reproduce the natural anti-malarial properties of<br />
quinine in synthetic form dated back to the late 1890s, in<br />
particular to the work of Paul Ehrlich at the Moabite Hospital<br />
in Berlin. More experiments had been conducted in Austria:<br />
Professor Julius Wagner-Jauregg of Vienna won a Nobel Prize<br />
in 1927 for his work in the field. But the main thrust of early<br />
anti-malarial research was carried on in Bayer’s laboratories<br />
in Elberfield, Germany, where the focus lay on Ehrlich’s idea<br />
of preparing derivatives of a dyestuff called methylene blue as<br />
potential drugs to combat the disease.<br />
One reason why the Germans had focused so much effort on<br />
quinine substitutes was the difficulty the country had experienced<br />
during World War I in obtaining supplies of the natural<br />
product. As war loomed again in the late 1930s, it became evident<br />
that this time round it could well be the British who would<br />
be cut off from supplies if Japan gained control of the East<br />
Indies, the main source of chinchona bark from which quinine<br />
was extracted. ICI therefore joined the other leading British<br />
pharmaceutical manufacturers in the war research effort. A<br />
team of seven ICI chemists stopped looking for new drugs<br />
and concentrated on “cracking the German patents”. One of<br />
Rose’s colleagues, a brilliant chemist named Frank Curd, set<br />
out to discover the structure of mepacrine from the 30 or so<br />
examples of the German patents. He was so successful that<br />
ICI had a pilot plant in production by September 1939. At first,<br />
mepacrine was considered to be merely a synthetic substitute<br />
for quinine, but its use on large numbers of servicemen<br />
in the Far East soon revealed that it was in fact more effective<br />
than the naturally occurring compound. Mepacrine still had<br />
drawbacks, however. It did not solve the problem of patient<br />
relapse, it turned the skin yellow, and it often led to gastrointestinal<br />
upsets and anemia. A better synthetic substitute for<br />
quinine was clearly required.<br />
By chance, the ICI team learned that some soldiers who had<br />
caught malaria and, simultaneously, a streptococcal infection<br />
had been treated for the latter with sulfa drugs such as<br />
Sulfamethazine (sulfadimidine), which Frank Rose had synthesized.<br />
The sulfa drugs not only cured the streptococcal infection<br />
but also alleviated the malarial condition. Rose and Curd<br />
now began to design anti-malarial drugs based on this fact.<br />
Success came with Rose’s synthesis of analogues based on<br />
the chemical system biguanide. Clinical trials at the Liverpool<br />
School of Tropical Medicine, in which the research team at one<br />
point deliberately infected themselves with malaria, identified<br />
the compound 4885, named proguanil or Paludrine ® , as the<br />
best of the group. Paludrine ® was colorless and proved to act<br />
in the early stages of the disease before the malaria parasite<br />
invaded the bloodstream. The new drug was extensively used<br />
by British troops in the Malaysian campaign after 1945 and<br />
was to prove the most effective anti-malarial treatment available<br />
for more than four decades. Reflecting on his achievement,<br />
Frank Rose was later to remark: “I think I can say we<br />
never killed anyone. Paludrine ® has an inbuilt safety device – if<br />
you take too much of it, it makes you sick. Whenever you get<br />
a new drug, sooner or later someone will try to commit suicide<br />
with it, but you can’t do that with Paludrine ® .”<br />
The first usable penicillin<br />
While Rose and his fellow-workers were absorbed in their<br />
anti-malarial research, ICI’s Dr William Boon was working<br />
on the early development of penicillin, which had been<br />
discovered by Alexander Fleming. In his original research<br />
during the 1920s, Fleming had written a report on the bacteria-inhibiting<br />
properties of penicillin, but this report had<br />
lain neglected. When Ernst Chain, a Jewish chemist who<br />
had left Germany for Britain in 1933, was working at the<br />
Oxford School of Pathology, he studied Fleming’s report and<br />
embarked on an investigation into how penicillin could be<br />
synthesized and purified. Penicillin was still being produced<br />
in laboratories by the fermentation method at the time, but<br />
the wisdom of the day assumed that large-scale manufacture<br />
would have to involve chemical synthesis in order to be<br />
cost-effective. ICI undertook to synthesize penicillin for use<br />
in the clinical work being conducted at the Oxford School<br />
of Pathology. A team headed by Boon was set up in 1942<br />
to produce the first medically usable quantities of penicillin.<br />
Shortly afterwards, the British Ministry of Supply became<br />
involved, wanting large-scale production because penicillin<br />
had by then become acknowledged as highly effective in<br />
treating wounds. The emphasis within ICI now switched to<br />
making penicillin by fermentation. ICI managed to purify the<br />
culture, thus demonstrating that industrial production by<br />
fermentation was also technically possible. Production by<br />
chemical synthesis never proved to be an economic form of<br />
manufacture, and manufacture by fermentation remains the<br />
most cost-effective procedure to this day.<br />
A breakthrough anesthetic: Fluothane ®<br />
ICI’s work on anti-malarial and anti-infective drugs was complemented<br />
by important advances in the field of anesthesia.<br />
The first half of the 20th century had seen few advances in<br />
anesthetics, at least of the inhalant variety. What innovations<br />
did occur had been made in the development of intravenous
First introduced in the 1960s, the Dulux ® dog became one of the most<br />
popular advertising icons of post-war Britain, triggering a revival in<br />
the popularity of the Old English Sheepdog breed
242<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
anesthetics such as barbiturates and in muscle relaxants for<br />
use in combination with anesthetics. Inhalants – chiefly chloroform,<br />
nitrous oxide, cyclopropane and ether – had scarcely<br />
changed since the previous century, and all possessed disadvantages.<br />
ICI’s development of a new type of anesthetic<br />
was to occur through its investigations of the properties<br />
of fluorocarbons.<br />
Fluorocarbons had been originally developed as refrigerants<br />
by General Motors and DuPont in America during<br />
the 1930s, In 1939 ICI’s James Ferguson had advanced a<br />
revolutionary theory that connected narcosis to thermodynamic<br />
activity. He concluded that a similar relationship might<br />
work in anesthesia and should be tried out with fluorinated<br />
compounds. In 1950, Ferguson – by then research director<br />
of ICI’s General Chemicals Division – assigned the task of<br />
investigating this theory to a young chemist called Charles<br />
Suckling, who had joined ICI in 1942. Suckling began to<br />
investigate the anesthetic properties of fluorocarbons.<br />
All told, four people had to be satisfied by the ideal inhalant<br />
anesthetic. The patient wanted to be rendered unconscious<br />
easily and pleasantly and to recover quickly, with no adverse<br />
after-effects. The surgeon required a non-explosive gas<br />
which did not restrict surgical work. The anesthetist needed<br />
a potent compound with a good safety margin. Last but<br />
not least, the manufacturer wanted a chemical which could<br />
be simply and inexpensively made and was easy to purify,<br />
transport and store. The problem was to take from this list of<br />
requirements those which might be related to the properties<br />
of the fluorine-containing compounds under examination.<br />
Suckling used the relatively new techniques of gas chromatography<br />
for his investigations, which ensured a high<br />
standard of purity and later facilitated the scale-up of manufacturing<br />
techniques from laboratory to factory. He synthesized<br />
a number of new compounds, including halothane.<br />
Halothane proved to be the breakthrough, and was subsequently<br />
marketed by ICI as Fluothane ® .<br />
Fluothane ® encountered initial resistance among some members<br />
of the medical profession when it was first introduced in<br />
1953. Anesthetists of the day favored mixing their own “cocktail”<br />
of inhalant anesthetics from a range of different gases,<br />
and viewed the use of a solitary anesthetic gas as a retrograde<br />
step. Fluothane ® also presented a challenge to equipment<br />
makers, requiring them to produce more advanced<br />
vaporizers. Anesthetists soon came to acknowledge the<br />
advantages of halothane, however. By March 1958, many<br />
thousands of cases of patients successfully anaesthetized<br />
by Fluothane ® had been recorded. Dr Michael Johnstone<br />
of the Crumpsall Hospital in Manchester was responsible<br />
for testing the novel anesthetic on ICI’s behalf. He noted<br />
that one of the most important advantages of Fluothane ®<br />
was that it permitted many forms of abdominal surgery to<br />
be conducted “while the patient breathes spontaneously”.<br />
Fluothane ® went on to become the most commonly used<br />
anesthetic in the western world.<br />
James Black invents beta-blockers<br />
In the early 1950s the pharmaceutical industry was experiencing<br />
one of the most fundamental upheavals of its existence.<br />
Synthetic products were replacing existing medicines<br />
and bringing about a revolution in both pharmacy and medical<br />
practice. Responding to this trend, ICI concentrated all<br />
its medical business in a separate division at a new site in<br />
Alderley Park in Cheshire in 1957. James (later Sir James)<br />
Black joined this new division in 1958 with the object of developing<br />
drugs to reduce the risk of heart attack. His father having<br />
died from a heart attack following a car crash, Black was particularly<br />
interested in the role of stress in producing adrenaline<br />
and precipitating an angina attack. He believed that it might<br />
be possible to develop a new approach to prevention based<br />
on blocking the action of adrenaline on the heart, and thus<br />
reducing the heart’s demand for oxygen. This insight led to<br />
the development of the world’s first beta-blockers.<br />
Black’s work drew on the research of Ray Ahlquist of Des<br />
Moines, Iowa, who in 1948 had posited the idea of two distinct<br />
types of adrenotropic receptors, which he designated<br />
alpha and beta. His work also benefited from the research<br />
carried out at the Eli Lilly laboratories in Indianapolis where<br />
it was discovered that a compound named dichloroisoprenaline,<br />
or DCI, negated the effects of adrenaline. Black realized<br />
that it would be possible to synthesize an analogue of<br />
DCI which would be devoid of any intrinsic action of its own<br />
when bound to the receptors of the heart. In January 1960,<br />
John Stephenson, a medical chemist at Alderley Park, had<br />
the idea of replacing the two chlorine molecules in DCI by<br />
another phenyl ring to make a naphthalene. He synthesized<br />
this new compound, which was named pronethalol. The new<br />
compound was given the brand name “Alderlin,” derived from<br />
Alderley Park, and by 1962 clinical trials confirmed that it was<br />
indeed helpful in the treatment of angina as it blocked the cardiac<br />
effects of the sympathetic nervous system – the “fight or<br />
flight” reaction to stress which had been described by Walter<br />
Cannon in his book The Wisdom of the Body. ICI next set out<br />
to find an improved version of this prototype drug. This led to<br />
the creation of propranolol, devised and synthesized by Dr<br />
A.F. Crowther, which was approximately 10 times as potent as<br />
its predecessor. Propranolol proved to be the first beta-adrenergic<br />
antagonist or “beta- blocker”. It was launched as Inderal ®<br />
(a near-anagram of “Alderlin”) in 1965. Inderal ® proved a safe<br />
and effective treatment for angina pectoris, cardiac arrhythmias<br />
and hypertension, with hardly any serious side-effects.<br />
Black left ICI in mid-1964. He was made Fellow of the Royal<br />
Society in 1976, knighted in 1981, and awarded the Nobel<br />
Prize for Medicine in 1988. In 1986, when he was 62 years of<br />
age and directing a small research unit at the Rayne Institute<br />
of King’s College Hospital Medical School, he explained that<br />
he found it “hard to live with” the celebrity Inderal ® had brought<br />
him. “The things I’ve been associated with happen to have<br />
made a lot of money, but commercial success has nothing to<br />
do with the quality of the science,” he said. “I had fun doing it,<br />
it was tremendously exciting.”<br />
Pesticides and hormonal weed killers<br />
People have been trying to control pests and improve the<br />
yield of their crops since the cultivation of land began. Virgil<br />
in the second of his Georgics recommended dressing seed<br />
with ashes and other substances to preserve the crops<br />
from disease. Pliny’s Natural History suggested sprinkling<br />
cabbage caterpillars with a compound of wormwood. The<br />
modern era of pest control began around 1860, when<br />
arsenic compounds were first used in the United States<br />
against the dreaded Colorado beetle.<br />
In contrast to the relatively late development of its interest<br />
in pharmaceuticals, ICI had from its inception been interested<br />
in agricultural chemicals. In 1927, the company established<br />
a centre for “agricultural research and demonstration”<br />
at Jealott’s Hill, near Bracknell in south east England.<br />
The aim of the research station was to popularize the use of<br />
nitrogen on grass by farmers and encourage the adoption of<br />
an intensive system of grassland management, which<br />
could substantially increase the numbers of livestock<br />
supported by pastures. As a second world war became<br />
increasingly likely, work at Jealott’s Hill focused on the<br />
development of fertilizers to stimulate intensive grass<br />
production. More significant, however, were two war-<br />
time discoveries which were to come on to the market as<br />
“Gammexane” and Methoxone ® .
Dr Charles Suckling (centre) discovered the breakthrough anesthetic Fluothane ® in 1955. With him are Dr Michael Johnstone,<br />
who conducted the clinical trials, and fellow researcher James Raventos
244<br />
Imperial Chemical Industries<br />
The ICI legacy<br />
“Gammexane” – properly named gamma benzene hexachloride<br />
– is a benzene hexachloride (BHC) compound. Deriving<br />
its name from the toxicity of its gamma isomer, the compound<br />
was found to be highly effective in the eradication of locusts in<br />
Africa and wireworms and flea beetles in Britain. Gammexane<br />
was, however, ultimately edged out of the market by the even<br />
more effective DDT, manufactured by the Swiss firm Geigy.<br />
The first hormonal weed killer<br />
Almost parallel with Gammexane came the discovery of the<br />
first of the so-called hormonal weed killers, Methoxone ® .<br />
The development of Methoxone ® grew out of ICI’s work on<br />
phytohormones, substances occurring naturally in plants<br />
which regulate their growth. The existence of these chemicals<br />
had been discovered in the Netherlands in 1926, and<br />
two related substances, alpha-naphthaylacetic acid (NAA)<br />
and indole-3-acetic acid (IAA), were already under study by<br />
ICI in 1936. ICI’s chemists deduced that the organic part of<br />
the soil might contain growth hormone from decayed plants,<br />
and that thus the soil itself might stimulate plant growth.<br />
Simultaneously, an ICI scientist named W.G. Templeman<br />
made a revolutionary observation: NAA did not just fail to<br />
stimulate plant growth; it suppressed it, and the suppression<br />
was selective. Further work proved conclusively that<br />
Sir John Harvey-Jones (1924–2008)<br />
Famous for the length of his hair, the brightness of his ties and his Falstaffian figure,<br />
Sir John Harvey-Jones was one of ICI’s most inspirational chairmen in the second half<br />
of the 20th century. In fact he has been described as the most famous British industrialist<br />
since Isambard Kingdom Brunel.<br />
Born in Hackney, London, John Harvey-Jones spent his early childhood in India, where<br />
his father – an officer in the British Army – was guardian and tutor to a boy Maharajah.<br />
At the age of seven, however, he was sent to a preparatory school in Kent, England, where<br />
he was the victim of bullying and became extremely unhappy. In 1940, when he was just<br />
16, he went to sea as a midshipman in the Royal Navy, subsequently serving in submarines in<br />
the Baltic Sea. He twice experienced being torpedoed. When World War II came to an end,<br />
Sir John was sent by the Royal Navy to Cambridge University to learn Russian and German<br />
for use in naval intelligence.<br />
When his daughter contracted polio, however, Sir John decided to leave the Royal Navy<br />
in search of an occupation which would permit him to spend more time with his wife and<br />
many of the most troublesome weeds growing in cereals<br />
or grass were killed off by NAA while most of the crops<br />
remained resistant to it. Supported by the British Ministry<br />
of Agriculture, ICI organized the largest field trial of its kind<br />
ever attempted at the time, and by 1946, Methoxone ® or<br />
“cornland cleaner” was available to British farmers.<br />
ICI built on the success of Methoxone ® by developing further<br />
selective hormonal weed killers in the 1950s, including<br />
diquat and paraquat. Named after the quaternary salts from<br />
which it is derived, Paraquat was launched on the market as<br />
Gramoxone ® in 1962 and came to be used by farmers in 120<br />
countries worldwide. Herbicides are considered risky today,<br />
but at the time Gramoxone ® was a breakthrough. Quickly<br />
effective and then quickly inactive, it left little residue, was<br />
harmless to wildlife, inactive in soil, and helped to prevent<br />
soil erosion by not affecting soil-retaining grass or weeds<br />
surrounding the treated crop. Dr William Boon, who was<br />
instrumental in the development of diquat and paraquat,<br />
was keenly aware of the potential dangers of these products,<br />
both to the environment and to human health. He in<br />
fact formed an Ecology Section within ICI, which was to<br />
become the basis for the Environmental Sciences Group<br />
that the company established in 1969. Boon later become<br />
a Fellow of the Royal Society in recognition of his contributions<br />
to organic chemistry.<br />
Growing a new protein<br />
In the 1960s, the World Health Organization predicted that<br />
the world was going to run short of protein – in particular,<br />
the rich European countries which were not among the chief<br />
producers of soy beans, the ultimate protein commodity. In<br />
response to this idea, ICI’s Dr Peter King set out to develop<br />
a new protein – not for people to eat directly, but for animal<br />
feed. Their first intention was to synthesize protein by chemical<br />
means, but the chemistry involved was too complex and<br />
the plan was soon abandoned. Various fermentation processes<br />
were then considered. They chose as a substrate a<br />
substance containing carbon that can be metabolized that<br />
had just appeared in abundant quantities under the North<br />
Sea – natural gas. Using this as a feedstock, bacteria or<br />
yeasts could in theory be grown in quantities, producing<br />
protein-rich microbial cells or single-cell protein (SCP).<br />
In 1968, King started searching the world for micro-organisms<br />
that would grow on methane. After much trial and error,<br />
it was found that Methylophilus methylotropus would grow<br />
not on methane but on methanol – and this proved to be<br />
the breakthrough. From the early laboratory fermenters, the<br />
process was gradually scaled up and by 1971 a pilot plant<br />
was working, plus a separator and a drying plant for harvesting<br />
the protein, which was branded “Pruteen.” Then it all<br />
daughter. He joined ICI on Teesside as a junior manager in 1956. Sir John joined ICI’s<br />
board in 1973 and became Chairman in 1982. By the time he stepped down five years<br />
later, many of the company’s non-core businesses had been divested, its bureaucratic<br />
structures had been reformed, and its profits had trebled.<br />
On leaving ICI, Sir John built a new career in television with his popular Troubleshooter<br />
series, in which he advised struggling businesses on how to improve their performance.<br />
His role won him a British Academy of Film and Television Arts (BAFTA) award.<br />
Knighted in 1985 for his services to industry, Sir John Harvey-Jones became Chancellor<br />
of Bradford University, Chairman of The Economist and a board member of Grand<br />
Metropolitan. He also worked for various charities. In 1991 he published an autobiography,<br />
Getting It Together, in which he described the “Jekyll and Hyde” tension between his<br />
outwardly self-confident persona and the insecure child within. Despite his numerous<br />
achievements in a range of different disciplines, Sir John remained painfully aware of his<br />
inadequacies and never ceased to long for the respect of his father.
The KLEA 134a plant at Runcorn, Cheshire, in the early 1990s.<br />
KLEA 134a was a replacement for ozone-damaging<br />
chlorofluorocarbons (CFCs)<br />
Sir John Harvey-Jones – an inspirational chairman during the 1980s<br />
and one of the foremost industrialists of his era<br />
245
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Imperial Chemical Industries<br />
The ICI legacy<br />
began to go wrong. The economics of Pruteen were badly<br />
affected by two things. The first was the oil-price shock of<br />
l973, which pushed up the price of methanol. The second was<br />
the decline in global soya meal prices, which were caused by<br />
the introduction of more efficient cultivation methods and the<br />
simultaneous expansion of soya bean cultivation. Pruteen<br />
had been intended as an alternative to soya meal for use in<br />
animal feed, and the drop in soya meal prices had the effect<br />
of shrinking the potential market for Pruteen. Even so, the ICI<br />
board gave the green light in 1976 for the construction of the<br />
world’s first commercial plant to manufacture protein from<br />
methanol. At its peak the plant could have produced 50,000<br />
tons of Pruteen a year – but it never did. The expected “protein<br />
gap” never materialized. However, the work was not wasted.<br />
Pruteen was found to be highly successful as a replacement<br />
for expensive skim-milk powder in the diets of calves<br />
and young pigs. The work on single-cell protein also led ICI<br />
into fermentation technology and biotechnology in general.<br />
The company’s Biological Products business has been<br />
responsible for a number of significant product developments,<br />
most notably myco-protein, a foodstuff similar to<br />
edible fungus, brought to market in partnership with Rank<br />
Hovis McDougall as Quorn ® .<br />
The environmental revolution<br />
In 1962, the American author Rachel Carson published Silent<br />
Spring – a book that shocked a generation with its revelations<br />
of the toxic effects of DDT and other chemicals and transformed<br />
attitudes to the chemical industry. Scientific and<br />
public awareness of the damage being done to the environment<br />
by chemicals began to gather force in the 1970s. In 1971<br />
an apparently minor decision by the Schweppes company not<br />
to accept the return of its soft-drink bottles sparked a demonstration<br />
by hundreds of British consumers, who besieged<br />
the company’s headquarters with a barrage of bottles. From<br />
this was formed the Friends of the Earth, Britain’s first environmental<br />
pressure group.<br />
Substitutes for CFCs<br />
The early 1970s were the years when scientists started to<br />
investigate the long-term effects of chlorofluorocarbons<br />
(CFCs) on the earth’s upper atmosphere. CFCs had been<br />
first developed in 1928 by General Motors in the USA. They<br />
had the unique properties of being both chemically and<br />
thermally stable, and found extensive usage in refrigeration<br />
(as coolants and foam-blowing agents) and in aerosols<br />
(as propellants). By 1974, nearly one million tons of CFCs<br />
were being produced annually. Then two American scientists,<br />
Sherwood Rowland and Mario Molina, posited a<br />
link between CFCs and depletion of the ozone layer. By<br />
1978 the U.S. government was sufficiently concerned to<br />
impose a ban on aerosols containing CFCs. Worldwide<br />
CFC production ceased in 1995. In seeking alternatives,<br />
ICI decided to explore HFCs, products with a zero potential<br />
for ozone depletion in which all the chlorine is replaced by<br />
hydrogen. ICI started producing one HFC-based product,<br />
KLEA 134a, in 1990 and another, KLEA 32, in 1992. The<br />
company also developed a safe process for disposing of its<br />
remaining CFC stocks.<br />
Driving environmental standards<br />
The 1990s also saw ICI setting new environmental standards<br />
for all its new plants, halving its production of waste<br />
and implementing a rigorous energy conservation program.<br />
A new process of ammonia synthesis was developed at this<br />
time to replace the company’s two ageing ammonia plants<br />
at Severnside. Requiring less feed gas, building land and<br />
steel for construction, it also produced less waste. In 1990<br />
the new process won the Royal Society of Arts’ Pollution<br />
Abatement Technology Award, sponsored by the United<br />
Kingdom’s Environment Foundation, the Department of the<br />
Environment, and Shell.<br />
The drive to reduce pollution gave birth to a new environmental<br />
business in the form of ICI Watercare, launched in<br />
1990 to develop products for purifying drinking water and<br />
treating sewage, as well as systems for the treatment of liquid<br />
wastes from industrial manufacturing processes. In 1992, ICI<br />
also published its first report on progress towards environmental<br />
objectives, giving data on waste and emissions and<br />
the number of prosecutions sustained on environmental<br />
charges. The announcement of environmental objectives<br />
was the first of its five-year series of Challenge improvement<br />
objectives, which continue today with Challenge 2010.<br />
Biopol ® – the biodegradable plastic<br />
ICI’s most technically exciting development of this period was<br />
Biopol ® , the biodegradable plastic hailed by the American<br />
magazine Popular Science in 1990 as one of the one hun-<br />
dred greatest scientific achievements in environmental technology.<br />
In fact Biopol ® was a discovery of the 1970s, an<br />
offshoot of the Pruteen experiment described above. Nonoil<br />
based, and made by the action of natural organisms on<br />
glucose, it was seen in the years following the 1973 OPEC oil<br />
embargo as a potentially winning substitute for petroleumbased<br />
plastics, and a potential boon to developing countries<br />
with no oil but the ability to grow sugar. The price of oil stabilized,<br />
and then fell, however, and more supplies of oil came<br />
on stream. The world appeared to have passed Biopol ® by.<br />
The green revolution was to open up new horizons for the<br />
innovative plastic, however, which found its first commercial<br />
use in the form of shampoo bottles for the environmentallyconscious<br />
German market.<br />
Advanced materials for aerospace<br />
A new family of plastics, developed out of aromatic chemistry<br />
with its high-density molecular structure (as opposed to the<br />
looser aliphatic compositions) began to emerge in the 1960s,<br />
beginning with PES (polyether sulphone), which is far more<br />
resistant to heat than polythene. ICI secured a world first with<br />
PES and launched it as an engineering plastic for such uses<br />
as transformer windings, parts of electric motors and medical<br />
sterilization equipment. Then the search began for a more<br />
crystalline compound that would take high-precision molding<br />
and could be used at high temperatures. It resulted in the discovery<br />
of PEEK (polyether ether ketone), which came out in<br />
the early 1970s and found immediate application as a wirecoating<br />
material in the electronics industry.<br />
An earlier discovery than PES, developed in the 1950s, was<br />
PET (polyethylene terephthalate), a polyester derivative from<br />
the same technology as Terylene ® . PET started life in ICI as<br />
a base for photographic film but, with a changed molecular<br />
structure, is now widely used for plastic bottles. The liquidcrystal<br />
polymers that were developed later from PET have<br />
remarkable optical and magnetic properties.<br />
During the 1980s, synthetic materials called aromatic polymer<br />
composites (APCs) began to open up new markets.<br />
APCs are thermoplastics reinforced with fiber to form a light<br />
but stiff and immensely strong material that can make anything<br />
from high-performance tennis rackets to aerospace<br />
components. APCs were originally another response to<br />
the energy crisis of the 1970s: to save fuel, engineers were<br />
looking for lighter-weight components for cars and aircraft.<br />
The aerospace industry offered ICI more scope for its inno-
Imperial Chemical Industries<br />
The ICI legacy<br />
vative products than the increasingly cost-conscious car<br />
industry of the day, and ICI turned its attention to combining<br />
PEEK with carbon fiber as a replacement for epoxy, the substance<br />
widely used at that time for building aircraft. The ICI<br />
scientists working on APC were buoyed up by excitement<br />
and worked Saturday and Sunday night shifts as the project<br />
moved into high gear. It was well into the 1990s before APC<br />
was a proven success, however. Then history intervened:<br />
the collapse of Communism in Eastern Europe and the<br />
progressive winding-down of arsenals on both sides of the<br />
superpower divide brought cuts in government spending in<br />
the defense and aerospace industries. It also brought much<br />
less demand for advanced materials such as APC.<br />
“Fewer but better” drugs<br />
In the 1980s, ICI’s Pharmaceuticals Division pursued a<br />
policy of developing “fewer but better” drugs, building on the<br />
platform of its drug discoveries, such as the beta-blockers<br />
Inderal ® (described above) and Tenormin ® . Tenormin ® had<br />
been launched in 1976 and would become the best-selling<br />
beta-blocker in almost every market in the world. ICI’s<br />
dominance in the cardiovascular therapeutic category was<br />
strong, and Inderal and Tenormin ® together became the<br />
most subscribed beta-blockers in the world. ICI’s innovation<br />
in pharmaceuticals continued with the launch of Diprivan ® ,<br />
an intravenous anesthetic that allowed the level of sedation<br />
to be precisely controlled. For patients and anesthetists it<br />
offered speed and quality of recovery following surgery. The<br />
prostate cancer treatment Zoladex ® , an injectable, was also<br />
launched in this period.<br />
Recession and turnaround in the 1980s<br />
The early 1980s saw ICI struggling to cope with the effects<br />
of recession. The chairmanship of John Harvey-Jones from<br />
1982 to 1987, however, transformed the company from a<br />
loss-making operation to a profitable one again. In 1984,<br />
while the chemical cycle was “up”, ICI was the first UK<br />
company to achieve £1 billion in annual pre-tax profits. The<br />
£1 billion mark was to be achieved several times during the<br />
decade, with more than £1.5 billion being reached in 1989.<br />
ICI became the first company in the world to market solid<br />
emulsion paint for application by roller to the domestic consumer.<br />
With the purchase of Glidden of the U.S. in 1986, ICI<br />
became one of the largest paints companies in the world.<br />
Expansion into the USA continued with the acquisition in<br />
1985 of the chemicals interest of Beatrice and of Garst Seed,<br />
a major corn seed company. In 1987, Stauffer Chemicals<br />
of the U.S. was acquired to further strengthen the agro<br />
chemicals business, and the Board of Directors met in<br />
New York, the first time it had met outside the UK. Another<br />
first, in 1991, was the appointment of the first woman to<br />
the ICI Board. Even more significant events, however, were<br />
to follow.<br />
ICI becomes a specialty chemicals<br />
and paints producer<br />
First was the demerger in 1993 of the Pharmaceuticals<br />
and Agrochemicals businesses to form Zeneca (today<br />
AstraZeneca, a global pharmaceuticals company; the agrochemicals<br />
business joined Novartis to form Switzerland-based<br />
Syngenta). Then, in 1997, ICI continued its momentous portfolio<br />
shift with the acquisition of the speciality chemicals businesses<br />
of Unilever and the divestment of its bulk and intermediate<br />
chemicals businesses. These divestments were to total<br />
more than 50 separate deals over a period of just five years.<br />
Businesses that trace at least part of their origins back to ICI<br />
include – besides AstraZeneca and Syngenta – the polyester<br />
manufacturer Artenius UK, the specialty chemicals business<br />
Avecia, the pharmaceuticals giant, Brunner Mond (recreated<br />
as a stand-alone company in 1991), the surfactants manufacturer<br />
Croda, Dow Chemicals, the Warrington engineering<br />
consultancy Eutech, Huntsman, INEOS (which acquired<br />
ICI’s Chlor and Klea businesses), Invista, the acrylics manufacturer<br />
Lucite, the Swiss refining group Petroplus, Premier<br />
Foods (whose antecedents within ICI developed Quorn ® ),<br />
Saffil (a manufacturer of heat-resistant material used in catalytic<br />
converters), the rock salt manufacturer Salt Union, the<br />
Saudi petrochemicals company SABIC, SembCorp (which<br />
owns the former ICI utilities and services business of Teesside<br />
in the UK), SOG (ICI’s former Runcorn business park), the<br />
fertilizer manufacturer Terra Industries and the plastics<br />
maker Victrex.<br />
ICI focuses on high-growth,<br />
high-margin businesses<br />
By becoming a leading specialty chemicals and paints producer,<br />
ICI aimed to move away from cyclical bulk chemicals<br />
and up the value chain to be a higher growth, higher margin<br />
business. ICI became one of the world’s major specialty<br />
products and paints businesses, represented mainly by<br />
National Starch and ICI Paints. By this stage in the company’s<br />
evolution, approximately one-quarter of ICI’s sales<br />
were made in the Asia Pacific region and 40 percent in the<br />
Americas, while less than 12 percent of sales were made in<br />
the UK. The ICI Group achieved sales of £6.4 billion in 2001,<br />
with its paints portfolio driving the company’s profitability.<br />
ICI employed 38,600 people in businesses worldwide by<br />
this point; on commencing trading in 1927, it had employed<br />
33,000 people, all of them in Britain.<br />
Entering the new millennium, ICI’s product portfolio included<br />
flavors and starches for the food industry, fragrances, surfactants<br />
and specialty polymers for personal care products,<br />
adhesives for the electronics and packaging markets, and<br />
a wide range of decorative coatings and specialty products<br />
for domestic use and the construction industry. Listed on<br />
both the London and New York stock exchanges, ICI was a<br />
member of the FTSE100, FTSE4Good and the Dow Jones<br />
Sustainability Index. In 2006, when it disposed of its fragrance<br />
business Quest to Givaudan SA and its surfactants<br />
business Uniqema to Croda International Plc, ICI posted<br />
annual sales of £4.8 billion, 50 percent of which was attributable<br />
to paints.<br />
Acquisition by Akzo Nobel<br />
The following year, ICI was acquired by Akzo Nobel<br />
after an intense negotiation process which captured<br />
the headlines throughout the latter part of the summer.<br />
Akzo Nobel’s original offer of 600 pence per share had<br />
been rejected by ICI when first made in June 2007; an<br />
improved offer of 650 pence per share was likewise turned<br />
down as undervaluing ICI. Only when Akzo Nobel combined<br />
forces with the German consumer products group<br />
Henkel to create a joint bid of 670 pence per share was the<br />
offer successful. The deal, which valued ICI at £8.1 billion<br />
(c10.8 billion), was announced on August 13, 2007 and formally<br />
concluded on January 2, 2008.<br />
247
248<br />
1 <strong>AkzoNobel</strong> headquarters<br />
Amsterdam, the Netherlands<br />
Major <strong>AkzoNobel</strong> manufacturing,<br />
R&D, and sales locations<br />
1<br />
Amsterdam
249
250<br />
The Akzo Nobel resins facility in Bergen op Zoom, the Netherlands, in 1995
<strong>AkzoNobel</strong><br />
In 1994, Akzo took one of the most important steps in its history. It merged<br />
its coatings and chemicals businesses with those of Nobel Industries,<br />
swiftly integrating them to create a new global organization named<br />
Akzo Nobel. For a merger which is frequently regarded as a textbook<br />
example of successful integration, the starting position was inauspicious:<br />
Nobel Industries was deeply in debt, and the Swedish government – which<br />
owned 65 percent of the company’s shares – wished to divest its shareholding<br />
as quickly as possible.<br />
251<br />
Overview<br />
A perfect fit<br />
An instinct for cooperation<br />
Acquisition of Courtaulds<br />
Market and technology focus<br />
Pharma, Coatings, Chemicals<br />
Fit for the future<br />
ICI joins Akzo Nobel<br />
Rebranding to become <strong>AkzoNobel</strong>
252<br />
<strong>AkzoNobel</strong> 1994–2008:<br />
Consolidation and focus<br />
<strong>AkzoNobel</strong><br />
There was a prelude to this move, however. In the summer<br />
of 1992, Ove Mattsson, Chairman of the Board of Nobel<br />
Industries, visited Aarnout Loudon, Chairman of the Board<br />
of Management of Akzo, in Arnhem with a proposal to take<br />
over Akzo’s coatings business. In return he offered a majority<br />
share in Nobel, the ownership of Nobel’s chemicals business,<br />
and a cash payment. This would have made Nobel<br />
a pure coatings company. Loudon rejected the offer, but<br />
he contacted Mattsson again in February 1993: “Ove,” he<br />
said, “I like the industrial logic of your proposal, so let’s talk.”<br />
Loudon, however, inverted Mattsson’s original idea, suggesting<br />
that Akzo should take over Nobel Industries’ coatings<br />
and chemicals businesses. On examination of Loudon’s<br />
industrial logic, Mattsson agreed.<br />
A perfect fit<br />
The acquisition has, in fact, been frequently described as a<br />
merger. “As the bigger party,” commented Aarnout Loudon<br />
during an interview in 2003, “it was Akzo who took over Nobel<br />
Industries, but for coatings it was a merger. Strategically, it<br />
was a perfect fit. Of course, the analysts said we paid too<br />
much – they always do. I replied: ‘Time will tell,’ and, looking<br />
back, it has. After further acquisitions, Akzo Nobel has<br />
become the largest coatings company in the world.”<br />
Keen to identify best practices in both companies and translate<br />
these into the new situation, Akzo Nobel sought top<br />
talent to manage the complex knowledge transfer and integration<br />
process. Many of these came from Sweden, including<br />
Ove Mattsson himself, who became Akzo Nobel’s Board<br />
Member for Coatings. “I’ve got very positive memories of<br />
working with the Dutch,” Mattsson was later to recall. “Their<br />
easy-going way of doing business matched ours. And, like<br />
us, they have a small-nation syndrome and an international<br />
outlook. The Nobel coatings business had something<br />
of a family company culture, so joining with similar Akzo<br />
companies was easier.” The fact that both partners had<br />
divested their consumer businesses during the 1980s, and that<br />
both were organized in terms of business units rather than<br />
divisions, also helped.<br />
An instinct for cooperation<br />
Aarnout Loudon retired as Chairman of Akzo Nobel’s Board<br />
of Management in 1994, taking on the role of Chairman of<br />
the Supervisory Board. He was succeeded as Chairman<br />
of the Board of Management by Cees van Lede, to whom<br />
fell the task of making the integration work over the coming<br />
years. Van Lede’s philosophy echoed that of Mattsson: “Like<br />
the Netherlands,” he observed, “Sweden is a small country,<br />
and I think small countries have an instinct for co-operation.<br />
Nobel also shared our business unit philosophy, and, like us,<br />
had a culture of give-and-take and consensus building, and<br />
once Swedes reach a consensus, it’s virtually unbreakable.”<br />
Acquisition of Courtaulds<br />
Only four years later, Akzo Nobel announced its intention<br />
to acquire Courtaulds (see the separate chapter on The<br />
Courtaulds Legacy). This brought Courtaulds’ extremely<br />
strong coatings portfolio into the business (as explained in<br />
the separate chapter on International Paint). On January 1,<br />
1999, Courtaulds’ and Akzo Nobel’s fibers businesses were<br />
integrated into a new company called Acordis, which supplied<br />
man-made fibers and materials for industrial, textile,<br />
medical and hygiene applications. With production facilities<br />
in Germany, the Netherlands, the UK, the United States,<br />
Brazil, Italy, Spain and Poland, Acordis had its organizational<br />
headquarters in Derby (UK) and its legal headquarters in the<br />
Netherlands. It employed 19,000 people worldwide and had<br />
sales of NLG 6 billion (approximately $3 billion) at the time of<br />
its establishment. Acordis was divested in the same year to<br />
CVC Capital Partners.<br />
Market and technology focus<br />
This brought to an end Akzo Nobel’s association with fibers,<br />
which stemmed back to the foundation of Enka by Jacques<br />
Coenraad Hartogs in 1911. In the years that followed,<br />
Akzo Nobel made selective acquisitions in coatings, chemicals<br />
and pharmaceuticals, refocused its chemicals portfolio<br />
(integrating its salt and base chemicals activities and<br />
strengthening its specialty chemicals portfolio), and made a<br />
number of strategic divestments.<br />
The new Company Statement, formulated in 1995,<br />
described Akzo Nobel as a “market-driven and technologybased<br />
company,” and this set the tone for operations in the<br />
closing years of the 20th century. Following the acquisitions<br />
of Nobel Industries’ coatings and chemicals businesses<br />
and of Courtaulds, Akzo Nobel was also a genuinely international<br />
business in spirit as well as name. “We distinguish<br />
ourselves from many others as a multicultural company,”<br />
stated Cees van Lede in 1996, “not only in terms of human<br />
resources, but equally in terms of the national backgrounds<br />
we assemble under the Akzo Nobel logo, and the business<br />
that we conduct worldwide. But we are also multicultural in<br />
that we emphasize the responsibilities of the business units<br />
and service units, and we stimulate them to exploit their own<br />
identities and styles. On the other hand, the competitive<br />
edge of our corporation above all lies in our acting as one<br />
coherent group in spite of its many different parts. Each of<br />
our employees, whatever he does or wherever she works,<br />
should have the same attitude, showing full commitment to<br />
the success of our customers, eagerness to make a sound<br />
return on our shareholders’ investments, ability to create an<br />
attractive working environment and a deeply felt sensitivity<br />
to conduct our activities in a socially responsible manner.<br />
Within this common framework, our diversity should enable<br />
us, more than others, to benefit from the wide range of individual<br />
ideas within the company, stimulating one another<br />
to bring to life new business concepts and to develop new<br />
products or services.”<br />
Pharma, Coatings, Chemicals<br />
Under the chairmanship of Van Lede, Akzo Nobel positioned<br />
itself as a company offering Pharma, Coatings and<br />
Chemicals, and the emphasis on the human and animal<br />
healthcare sectors increased during these years, taking<br />
advantage of the non-cyclical nature of the pharma industry.<br />
Akzo Nobel’s success during this period owed much to the<br />
strategic thinking and international orientation of Van Lede,<br />
who succeeded in translating Aarnout Loudon’s bold expansion<br />
plans into operational reality. Van Lede’s stated single<br />
priority on assuming the chairmanship in 1994 had been<br />
“to make this work,” and he used his renowned interpersonal<br />
and linguistic skills to great effect in this cause. Indeed, Van<br />
Lede added Swedish to his portfolio of foreign languages so<br />
as to better understand the viewpoint of his new colleagues<br />
from Nobel Industries. Ultimately 60 percent of the company’s<br />
sites received a visit from Van Lede during his almost<br />
decade-long tenure.<br />
The successful integration of Nobel Industries, the acquisition<br />
of Courtaulds’ cutting-edge coatings operations,<br />
the divestment of the problematic fibers business and the<br />
new emphasis on a very strong Pharma group were all the<br />
achievement of Cees Van Lede. Throughout his chairmanship,<br />
he cultivated a managerial style which balanced a
Powder coatings being packed by Anders Engman at Akzo Nobel’s<br />
powder coating facility in Malmö, Sweden, in 1998<br />
253
254<br />
<strong>AkzoNobel</strong> 1994–2008:<br />
Consolidation and focus<br />
<strong>AkzoNobel</strong><br />
pragmatic approach to business with a deep understanding<br />
of the human factor. “His major achievement was to take<br />
former CEO Aarnout Loudon’s business-unit concept of a<br />
decentralized, two-layer organization and actually put it<br />
into practice,” commented his former colleague CFO Fritz<br />
Fröhlich in an interview marking the occasion of Van Lede’s<br />
retirement in 2003. “Van Lede is one of those cosmopolitan<br />
Dutch businessmen who speaks numerous languages and<br />
loves diversity,” Fröhlich continued. “I have never heard him<br />
voice any prejudice, he’s very tolerant, he isn’t just the hardnosed<br />
profit-driven business man. He’s interested in all stakeholders<br />
– and employees, the public, the shareholders.”<br />
Under Van Lede’s direction, <strong>AkzoNobel</strong> posted the best<br />
results in its long history as it entered the new millennium<br />
in 2000, with net income of c966 million, up 25 percent<br />
on the previous year’s figure. The first years of the 21st<br />
century witnessed economic stagnation, however, and the<br />
perceived attractiveness of the pharma sector underwent a<br />
general decline, as pure pharma players found the process<br />
of bringing “blockbuster” drugs to market increasingly<br />
lengthy and expensive. Indeed, the early years of the new<br />
millennium proved to be particularly challenging, with the<br />
increasingly difficult economic climate adding to the pressure<br />
brought about by the loss of patent protection for key<br />
pharma product Remeron. A series of restructuring programs<br />
soon followed and it was against this background<br />
that Hans Wijers succeeded Cees van Lede as Chairman<br />
of the Board of Management in 2003. Van Lede had been<br />
at the helm for almost a decade and had overseen a crucial<br />
phase in the history of the company.<br />
Fit for the future<br />
Within months of Wijers becoming Chairman, the company<br />
was quick to signal its new, more focused, strategy. A major<br />
chemicals divestment program was announced which would<br />
eventually result in a complete realignment of the portfolio.<br />
The Decorative Coatings business was also restructured,<br />
with Wijers intent on creating a platform for growth and<br />
maneuvering the company into a position of financial and<br />
organizational strength.<br />
A few years later, in 2006, another landmark announcement<br />
was made, when Wijers spelled out his vision for<br />
the company.<br />
“Pure play” was the key phrase in Hans Wijers’ new strategy,<br />
which was presented on February 7, 2006, at Akzo Nobel’s<br />
2005 Annual Results press conference. Wijers announced<br />
the creation of a pure play chemicals and coatings company<br />
and a pure play pharmaceutical company. The objective of<br />
this bold move was to enhance shareholder value through<br />
increased management and strategic focus, offering greater<br />
transparency and putting both businesses in a position to<br />
accelerate their growth independently of one another.<br />
The initial plan was for a minority listing of Organon<br />
BioSciences (comprising Akzo Nobel’s pharma business<br />
units Organon, Intervet and Nobilon) on the Euronext<br />
Bourse in Amsterdam, with full separation of the two<br />
companies to occur within the following three years. On<br />
March 12, 2007, however, the separation process was<br />
dramatically speeded up by Schering-Plough’s offer to<br />
acquire Organon BioSciences for c11 billion. The offer was<br />
accepted, marking the termination of Akzo Nobel’s association<br />
with pharma – a link stretching back most prominently<br />
to Saal van Zwanenberg’s foundation of Organon<br />
in 1923. At the moment of acceptance, Akzo Nobel<br />
employed a total of 61,900 people worldwide and generated<br />
net income of c1.2 billion on annual revenues of<br />
c13.7 billion. The company was, in Hans Wijers’ words,<br />
“Fit for the future.”<br />
ICI joins Akzo Nobel<br />
Only months after disposing of Organon BioSciences,<br />
Akzo Nobel made another swift and decisive move,<br />
announcing on August 13, 2007 its intention to acquire<br />
Imperial Chemical Industries PLC (ICI). The deal, which<br />
was formally closed on January 2, 2008, was worth<br />
£8.1 billion (c10.8 billion). An important component of this<br />
transaction was the sale of ICI’s Adhesives Division and<br />
Electronic Materials Division to the Düsseldorf-based international<br />
consumer products company Henkel for £2.7 billion<br />
(c3.6 billion). The disposal of the two divisions offered a<br />
compelling strategic fit for both Akzo Nobel and Henkel and<br />
enabled Akzo Nobel to increase the offer it had originally<br />
made for ICI in August 2007 while maintaining its financial<br />
discipline. Taking into account these disposals, the acquisition<br />
of ICI gave Akzo Nobel pro forma combined sales<br />
(based on figures for 2006) of c15.3 billion, c10 billion of<br />
which were attributable to coatings activities. The combination<br />
of Akzo Nobel’s and ICI’s coatings portfolios assured<br />
the expanded Akzo Nobel a leading presence on all continents,<br />
the ability to serve customers worldwide, a strong<br />
and complementary fit across all its regions, markets and<br />
brands, and an excellent platform for growth.<br />
Rebranding to become <strong>AkzoNobel</strong><br />
The purchase of ICI set in motion a reorganization of management<br />
functions and the company’s business activities to<br />
integrate the new acquisition. While Akzo Nobel’s Chemicals<br />
businesses had by and large already been rationalized in<br />
2004, the incorporation of ICI’s highly successful Dulux<br />
brand into Akzo Nobel’s Decorative Coatings business triggered<br />
a major rethinking of the company’s Coatings organization.<br />
The Coatings portfolio was divided into a Decorative<br />
Paints business, featuring seven regional business, and a<br />
Performance Coatings business, including Car Refinishes,<br />
Marine & Protective Coatings, Powder Coatings, Industrial<br />
Finishes, and Packaging Coatings. The acquisition and integration<br />
of ICI within Akzo Nobel was the last milestone in the<br />
transformation of the company from the conglomerate it had<br />
been nearly a decade before to a highly focused Coatings<br />
and Specialty Chemicals company.<br />
The time was ripe for a new corporate brand for the company.<br />
On April 25, 2008, <strong>AkzoNobel</strong> was born. The company<br />
had been re-energized for a new beginning. A new corporate<br />
brand and identity was unveiled, symbolizing the fundamental<br />
transformation which the company had undergone. But the<br />
name was retained (now written as one word) because it<br />
commanded too much value, heritage and respect for it to<br />
be discarded. The familiar logo also remained, having been<br />
given a modern restyling to make it more relevant to the new<br />
positioning. “Our new brand promise typifies our desire to<br />
create new ideas,” explained Wijers. “We are one company<br />
and will continually seek out new and better answers for our<br />
customers, making true on our brand promise: Tomorrow’s<br />
<strong>Answers</strong> <strong>Today</strong>.”
Akzo Nobel provided the coatings for the two largest wind turbines in the world when commissioned in 2006. Situated off<br />
the northeast coast of Scotland, they weigh 750 tons each and have rotor blades more than 61 metres long. Approximately<br />
3,000 liters of coatings were required to protected the turbines against this notoriously harsh maritime environment<br />
255
256<br />
Akzo Nobel’s Sikkens ® products being used to help restore the original ornamental<br />
frieze above Rembrandt’s “Night Watch” in Amsterdam’s Rijksmuseum
<strong>AkzoNobel</strong><br />
Most companies do not survive longer than 40 years; the conflicting pressures<br />
to continually evolve in the face of change while retaining a clear<br />
sense of identity and purpose are simply too great. <strong>AkzoNobel</strong> traces its<br />
earliest forbear back to the middle of the 17th century. The account of<br />
the company’s genesis, growth and survival into the 21st century is by<br />
definition a huge success story.<br />
257
258<br />
<strong>AkzoNobel</strong> in the 21st century<br />
<strong>AkzoNobel</strong><br />
That success has been based on many things. On entrepreneurial<br />
flair, commercial acumen, informed risk-taking and,<br />
of course, innovative capability. The companies that have<br />
gone into the creation of today’s <strong>AkzoNobel</strong> were in themselves<br />
significant organizations that were successful over the<br />
course of many decades. <strong>AkzoNobel</strong>’s success is founded<br />
on its remarkable ability to change.<br />
Looking beyond the horizon of this book, there is perhaps<br />
only one safe prediction to be made. <strong>AkzoNobel</strong> will con-<br />
An ever-changing<br />
portfolio<br />
At the time of this book’s publication, <strong>AkzoNobel</strong>’s portfolio<br />
is focused on coatings and chemicals. The company is<br />
the world’s largest coatings manufacturer and commands<br />
leading market positions in virtually all its chemicals<br />
businesses. <strong>AkzoNobel</strong> develops, manufactures and<br />
markets innovative, high-quality products and services for<br />
most market segments. The coatings portfolio includes<br />
decorative paints; products for industrial applications<br />
including powder coatings; marine, protective and<br />
aerospace coatings; and coatings-related products such<br />
as wood and building adhesives. Key <strong>AkzoNobel</strong> coatings<br />
brands include Albatex ® , Astral ® , Dulux ® , Dulux ® Magic<br />
White ® , Dulux ® Valentine ® , Flexa ® , Flood ® Herbol ® ,<br />
International ® , Interpon ® , Lesonal ® , Levis ® , Marshall ® ,<br />
Molto ® , Nordsjö ® , Sadolin ® , Schönox ® , Sico ® , Sikkens ® ,<br />
Tintas Coral ® , Trimetal ® and Vivechrom ® .<br />
<strong>AkzoNobel</strong> is also one of the world’s leading producers<br />
of specialty chemicals, holding leading or strong global<br />
positions in many markets. A key supplier to the polymer<br />
production and processing industries, the company is also<br />
the world leader in pulp bleaching chemicals and an<br />
important producer of salt, functional chemicals, and<br />
surfactants. Key <strong>AkzoNobel</strong> chemicals brands include<br />
Akucell ® , Bermocoll ® , Bolikel ® , Demeon ® D, Dissolvine ® ,<br />
Eka ® , Expancel ® Microspheres, Jozo ® Salt, Kromasil ® MCA,<br />
Nezo ® Salt, Suprasel ® and Trigonox ® .<br />
tinue to change. It will make further acquisitions and divestments,<br />
reorganize its activities, develop new technologies,<br />
and create new markets. These are things that the company<br />
will have to do in order to excel – and it will have to excel<br />
in order to survive. That is the way of business. If this brief<br />
account of <strong>AkzoNobel</strong>’s history tells us one thing, it is that<br />
the fundamental laws of business never change. The challenges<br />
and opportunities facing <strong>AkzoNobel</strong> today are not<br />
so very different from those faced by so many of the great<br />
<strong>AkzoNobel</strong>’s<br />
business line-up 2008<br />
Decorative Paints<br />
Decorative Paints supplies a full range of interior and<br />
exterior decoration and protection products for both the<br />
professional and DIY markets. Our Decorative Paints<br />
organization consists of 7 regional businesses.<br />
Performance Coatings<br />
Car Refinishes supplies paints and services to the car<br />
repair, commercial vehicle and automotive plastics markets.<br />
Industrial Activities comprises the company’s Industrial<br />
Finishes and Powder Coatings businesses.<br />
Marine & Protective Coatings is a global market leader<br />
in marine paints and antifouling coatings. It manufactures<br />
fire-retardant products for large plants and offshore installations,<br />
as well as protective coatings for structures such as<br />
bridges, aircraft and stadiums.<br />
Packaging Coatings manufactures and supplies inks and<br />
coatings for the interior and exterior of cans and other metal<br />
containers.<br />
pioneers described in this narrative – and by the countless<br />
more who could not be named, but whose anonymous<br />
contribution was just as vital in helping to create today’s<br />
<strong>AkzoNobel</strong>.<br />
These pioneers of so many years ago had their sights firmly<br />
set on tomorrow. In today’s very different world, there is no<br />
better place to look for the future of <strong>AkzoNobel</strong>. Where better<br />
to highlight that idea than in the company’s corporate identity:<br />
Tomorrow’s <strong>Answers</strong> <strong>Today</strong><br />
Specialty Chemicals<br />
Base Chemicals produces energy, salt, chlor-alkali products<br />
and derivatives. Its products are used to make items such as<br />
glass, pharmaceuticals and textiles.<br />
Chemicals Pakistan focuses on providing, for example,<br />
specialty chemicals, polyester fibers and soda ash exclusively<br />
for the Pakistan market.<br />
Functional Chemicals comprises a number of businesses<br />
that manufacture and sell a variety of chemical intermediates<br />
and performance chemicals on a global scale.<br />
Polymer Chemicals produces organic peroxides, and<br />
is also a major producer of metal alkyls and co-catalysts<br />
– chemicals used primarily in the production of thermoplastics,<br />
and for making a wide range of plastic goods.<br />
Pulp & Paper Chemicals produces bleaching chemicals<br />
used in the manufacture of paper pulp and supplies process<br />
and performance chemicals that improve the properties<br />
of paper.<br />
Surface Chemistry produces surface-active agents used<br />
to facilitate the combination or seperation of two different<br />
materials.
A selection of <strong>AkzoNobel</strong> powder coatings
260<br />
Located alongside the Veracel pulp mill in Brazil, Eka’s Bahia plant, which was opened in 2005,<br />
is an example of the Chemical Island Concept of <strong>AkzoNobel</strong> Pulp and Paper Chemicals
The products described in this book are not solely the creation<br />
of <strong>AkzoNobel</strong> and its predecessor companies. They are<br />
the result of economic conditions, scientific aspiration and<br />
consumer demand in many different markets of the world<br />
at many different times. They are, at the deepest level, the<br />
creation of society itself.<br />
Every society has its aspirations, and every society has its<br />
fears. A fear widely held by many people at the opening of<br />
the 21st century is that our creative ability to intervene in the<br />
course of nature may ultimately lead to the destruction of the<br />
very planet on which we live. Whatever science may or may<br />
not be able to teach us on this subject, this fear is very genuine,<br />
and it needs to be taken very seriously. Our capacity for<br />
recombining the constituent elements of nature by means<br />
of chemistry is now seen to harbour risks that were never<br />
dreamt of even half a century ago. The word sustainability<br />
– still a newcomer to the world’s economic vocabulary in the<br />
early 1990s – is rightly on everybody’s lips today.<br />
In his Chairman’s Statement in the 2007 <strong>AkzoNobel</strong><br />
Sustainability Report, Hans Wijers clearly acknowledged<br />
the central role that sustainability has to play in <strong>AkzoNobel</strong>’s<br />
future. Addressing all the company’s stakeholders, he wrote,<br />
“Companies have to understand the new fundamentals of<br />
today’s markets and changing customer needs. These<br />
include a growing scarcity of raw materials, fossil fuels and<br />
fresh water resources; rising energy prices; the economics<br />
of CO 2 emissions; and the international debate on supply<br />
chain responsibility and social standards. This combination<br />
will increasingly impact market propositions and profit and<br />
loss accounts.”<br />
Hans Wijers continued that “Our capability to deliver sustainable<br />
solutions to our customers is crucial for the success of<br />
our company.” Delivering solutions to customers has always<br />
been the business of <strong>AkzoNobel</strong> and its predecessor companies.<br />
Indeed, many stories in this book depict the entre-<br />
preneurial struggle to capitalize on a technology, open up a<br />
market with it, and then service that market with products for<br />
as long as possible. This is not, however, what is nowadays<br />
understood as truly sustainable practice. If <strong>AkzoNobel</strong>, as a<br />
commercial enterprise, still has to capitalize on technologies,<br />
open up markets with them, and then service those markets<br />
with products for as long as possible, it has to do so in ways<br />
which not only deliver maximum value to its customers but<br />
also demand minimum resources from the planet. The management<br />
of sustainability in the value chain is as important<br />
as the delivery of value through the product – indeed, the<br />
management of sustainability is itself becoming a means of<br />
delivering value, as customers and consumers alike seek<br />
eco-premium and low-carbon solutions.<br />
Historically, this is still a very new element in the entrepreneurship<br />
equation, and its application will have far-reaching<br />
effects on every aspect of <strong>AkzoNobel</strong>. As the end of the<br />
opening decade of the 21st century approaches, the<br />
responsibilities inherent in operating any industrial chemical<br />
process are clearer than ever before. Writing in the same<br />
Sustainability Report, Hans Wijers said, “Our employees will<br />
be challenged and rewarded to develop sustainable solutions<br />
and to contribute to innovation. We will unlock new<br />
economic value for our shareholders, reaping the benefits of<br />
a successful combination of sustainable solutions and efficient<br />
operations. And for our environment and the communities<br />
in which we operate, it means being able to make an<br />
even greater contribution to a more sustainable world.”<br />
The stories in this book show that <strong>AkzoNobel</strong> has made a<br />
great contribution to the world on many fronts during the<br />
course of its history. The challenge for the future is to do<br />
that not only in a sustainable manner, but in such a way as<br />
to actively bring about a more sustainable world. More than<br />
ever before, <strong>AkzoNobel</strong>’s task is to fulfil the declaration that<br />
is integral to its brand: Tomorrow’s <strong>Answers</strong> <strong>Today</strong>.<br />
261
262
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Post, Hans Peter, Nearly 80 years of wood and<br />
veneer – Article in The Adhesive Specialist<br />
96/1, Casco Adhesives AB, Stockholm, 1991<br />
Sohlman, Ragnar, The legacy of Alfred Nobel<br />
– The story behind the Nobel Prizes,<br />
The Bodley Head, London, 1983<br />
Ståhle, Nils K., Alfred Nobel – The Man and his<br />
work, Thomas Nelson and Sons Ltd, London, 1962<br />
Steen, J.H. van der, 200 jaar Sikkens, Akzo<br />
Coatings bv, Sassenheim, 1991<br />
Tausk, Marius, Organon – The story of an<br />
unusual pharmaceutical enterprise,<br />
Akzo Pharma bv, Oss, 1984<br />
Timmer, Petra (Editor), Where Colour Plays a<br />
Distinctive Role – History of the Sikkens Award,<br />
V+K Publishing, Blaricum, 1997<br />
Various, Akzo Nobel News & Views,<br />
Akzo Nobel, Arnhem, 1988–2003<br />
Various, Akzo Nobel Matters,<br />
Akzo Nobel, Arnhem, 2003–2007<br />
Verhoog, Jeroen, 75 Years Organon –1923 to<br />
1998, N.V. Organon, Oss, 1998<br />
Widén, Erik, Eka Nobel – 100 Years (Eka Echo<br />
Jubilee issue), Akzo Nobel, Bohus, 1995<br />
263
264
Index<br />
Letters after a page number refer to columns<br />
or separate side stories on that page.<br />
Columns are designated in order from left<br />
to right: a, b, c, and d. Separate side stories<br />
are indicated by the letter i.<br />
Page numbers in bold refer to illustrations.<br />
Page numbers in italics refer to maps or<br />
milestones.<br />
Dutch names that include a particle (e.g.<br />
van) can be found listed under the particle.<br />
The abbreviation KZO refers to Koninklijke<br />
Zout-Organon.<br />
A<br />
AB Berol-Produkter (Berol) see Berol<br />
AB Bofors Nobelkrut 134b, 138i<br />
AB Kema 15, 180b–180c see also Barnängen<br />
AB Stockholms Bryggerier 180c<br />
AB Syntes 190b<br />
acetic acids 20, 76i, 186b, 244a<br />
Acordis<br />
acquisition by CVC Capital Partners 20,<br />
28a, 46c, 252b<br />
annual turnover 252b<br />
divestment of 20, 31<br />
founding history 28a, 46c, 212a, 252b<br />
management structure 46c<br />
range of products 46c<br />
activated carbon 15, 64a<br />
Activit 64a<br />
adhesives<br />
advertisement for 177<br />
production of 14, 15, 173, 174a–174c, 174i,<br />
176a<br />
soy based 14, 174a<br />
testing of 172<br />
advertisements see also advertising campaigns<br />
for Biotex ® 80c, 81<br />
Casco calendar girl 177<br />
for Celanese 211<br />
for Duyvis ® peanuts 99<br />
for Enkalon ® 47<br />
founding of KemaNobel 134c–134d<br />
for Rubbol ® 51<br />
for Sikkens 53<br />
slogan for Ovowop ® 102b<br />
advertising campaigns see also advertisements<br />
by Akzo 38i<br />
for Crown ® 196b<br />
for Dulux ® 238c, 240a<br />
by G.W. Sikkens & Co. 52a<br />
joint advertising by Kortman & Schulte and<br />
AKU 80c<br />
by Sadolin & Holmblad 162<br />
aerospace coatings see aircraft coatings<br />
aerospace industry 246c–247a<br />
Aftonbladet (newspaper) 143<br />
Agfa 226b<br />
Agis, Maurice 59<br />
Agrochemicals division (ICI) 20, 247b<br />
AgVax 110c<br />
Ahlquist, Ray 242b<br />
Airbus 4 27<br />
aircraft coatings<br />
Akzo Nobel 28b, 212a–212b, 220a<br />
Courtaulds 216b<br />
Sikkens 52c<br />
Walpamur 196a<br />
Akcros Chemicals 116c<br />
Aktiebolaget Kema 180b–180c<br />
AKU (Algemene Kunstzijde Unie) 80d see<br />
also Enka; Vereinigte Glanzstoff-Fabriken<br />
diversifications 16<br />
employees at 44a<br />
expansion of 44a–44b<br />
founding history 18, 24a, 36a–36b, 42b<br />
invention of aramid fiber 36a–36b<br />
joint advertising with Kortman & Schulte<br />
80c<br />
management structure 42b, 44b–45a<br />
merger history 14, 30, 35–36a, 36i,<br />
44b–45a, 88, 204a<br />
merger with KZO 18, 24a, 36i, 44b–45a,<br />
45c<br />
production of nylon 24a, 44b<br />
during WW II 42c<br />
Akulon ® 44a<br />
Akzo see also under specific divisions; under<br />
specific sites<br />
acquisition of Armour 18<br />
acquisition of US companies 19, 36c<br />
advertising campaigns 38i<br />
competition with DuPont 19, 24a–24b, 46a<br />
corporate identity of 19, 38i<br />
creation of Intervet 110a<br />
efficiency drive 90s 36c, 38<br />
environmental management system 19<br />
founding history 18, 24a, 35–36a, 36c,<br />
44b–45a<br />
impact oil crisis 24a<br />
labor relations at 19<br />
logo of 18, 38i, 45c, 80b<br />
management structure 19, 24b<br />
map of site locations 32<br />
merger history 18, 23–24a, 26a, 26c, 30,<br />
44b–45a, 54a, 70a, 80d, 88, 114c-114d,<br />
116a–116c<br />
merger with Nobel 30, 123, 145c, 170a,<br />
176b, 251–252a<br />
product range of 36a<br />
production of Twaron ® 19, 24a–24b, 46a<br />
reorganizations 18, 24b–24c<br />
sole shareholder of Akzona 19, 24c, 114c<br />
Akzo America Inc. 19, 114c–114d, 116a<br />
Akzo Chemicals Inc. 114c, 116b<br />
Akzo Chemie America 114c, 116a–116b<br />
Akzo Code of Conduct 45c<br />
Akzo Nobel see also Acordis; Akzo; <strong>AkzoNobel</strong>;<br />
Nobel Industries AB; under specific<br />
business units; under specific sites<br />
acquisition of Courtaulds 20, 28a, 46c,<br />
212a–212b, 220a, 252b<br />
acquisition of Crown Berger 196c–197<br />
acquisition of Eka 154b<br />
acquisition of ICI 21, 28c–29, 197, 247c,<br />
254b<br />
annual turnover 28b, 254a, 254b<br />
Company Statement 252b–252c<br />
creation of Organon BioSciences 21, 28c,<br />
106c, 254b<br />
divestment of fiber production 28a, 252b<br />
divestments 20, 28c, 30–31<br />
divestments to Henkel 247c, 254b<br />
environmental policies 20, 21<br />
founding history 20, 24c, 26a, 26c, 30, 38,<br />
123<br />
integration after merger ICI 252b<br />
joint venture with Courtaulds 26c<br />
listing on stock exchange 254b<br />
map of site locations 248<br />
merger history 20, 23–24, 26c, 30–31, 56a,<br />
145c, 160c<br />
portfolio of 28b<br />
production of powder coatings 20, 253<br />
production of veterinary products 28b<br />
relocation headquarters to Amsterdam 21,<br />
28c<br />
reorganizations and expansions<br />
116c–116d<br />
salt production of 70b<br />
Akzo Nobel Decorative Coatings AB 170a<br />
Akzo Nobel Industrial Coatings AB 170a<br />
Akzo Nobel Salt, Inc. 26c<br />
Akzo Nobel Surface Chemistry LLC. 116d<br />
Akzo North America (Akzona) see Akzona<br />
Akzona (Akzo North America) see also Akzo<br />
America Inc.<br />
Akzo sole shareholder of 19, 24c, 114c<br />
founding history 18, 114c<br />
name change to Akzo America Inc. 19<br />
name changes and divestments 19,<br />
114c–114d<br />
<strong>AkzoNobel</strong> see also Akzo Nobel<br />
and aircraft coatings 212a<br />
and the Björkborn Foundation 140c<br />
corporate identity of 258c, 261b<br />
founding history 23, 29, 38, 56i, 67, 109<br />
future of 258a–258c, 261a–261b<br />
logo 254c<br />
map of site locations 248<br />
marine coatings 220a<br />
new corporate brand 21, 29, 254c<br />
portfolio of 258i<br />
production of powder coatings 259<br />
Sustainability Report 261a–261b<br />
US history 113<br />
Albemarle Corp. 21<br />
265
266<br />
Albright & Wilson 19<br />
Alby Klorat 19<br />
Alderley Park site (ICI) 242b<br />
Alderlin 242b–242c<br />
Alfred Nobel and Co. 126c<br />
Algemene Kunstzijde Unie (AKU) see AKU<br />
alkali 230i<br />
Alkali Group 232a<br />
alkali plant 151<br />
Alkathene ® 234a<br />
Allied Chemical and Dye Corporation 226b,<br />
226c<br />
alphanaphthaylacetic acid (NAA) 244a<br />
Alvik site (Barnängen/Lars Montén) 180b, 182<br />
Ambros, Dr. 232c<br />
American Enka Corporation 14, 18, 19, 42b,<br />
114d<br />
American Internatonal Salt Company 18, 70b,<br />
70c, 115<br />
American PVS Chemicals Inc. 64c<br />
American Viscose Company (AVC) 204c, 205a<br />
American Viscose Corporation (AVC) 15,<br />
205a–205b, 208a–208b, 210b<br />
American Wyandotte Paint Products Company<br />
19<br />
Amersfoort site (Van Hasselt) 92a, 92c<br />
amine plant 188<br />
ammonia<br />
Haber-Bosch process 226b<br />
overproduction 230b<br />
production of 17, 144c, 152a, 235a<br />
synthesizing process 246b<br />
Amsterdam sites (Boldoot)<br />
closure of several 86c<br />
Haarlemmerweg factory 13, 86a, 88<br />
shop in Kalverstraat 14, 85, 86b<br />
on Singel and Langestraat 86a<br />
Amsterdam sites (Ketjen)<br />
in 1835 62<br />
catalysts for oil plant 16, 64b<br />
destruction of 64b<br />
hydrochloric acid plant 13, 64a<br />
sulfur dioxide plant 16, 64b<br />
sulfuric acid plant 12, 64a, 64b, 64c, 65<br />
Amundsen, Lars 173–174a, 174c<br />
anabolic steriods 17, 104c<br />
Anaglypta ® 194d, 197<br />
Andriol ® 18, 106b<br />
anesthetics 240c, 242a–242b, 247a<br />
animal feed 73, 96a, 109<br />
anti-depressants 18, 20, 106b–106c, 107<br />
anti-malarial drugs 240b–240c<br />
APCs (aromatic polymer composites)<br />
246c–247a<br />
Aquitania, RMS 225, 226c, 228a–228b<br />
Aquitania Agreement 226c, 228a–228b<br />
aramid fibers 36b, 46a see also Kevlar ® ;<br />
Twaron ®<br />
architecture see Sikkens Prize<br />
Ardbo, Martin 140c<br />
Arenka ® 19 see also Twaron ®<br />
Armak Chemicals (formerly Armour Industrial<br />
Chemicals) 18, 114c<br />
armaments industry 14, 15, 122b, 122c, 126a,<br />
138a–138d, 140a–140c<br />
Armerican Cabot Corporation 64b<br />
Armour, Philip Danforth 114a<br />
Armour & Co. see also Chicago site; Dial<br />
Corporation; Industrial Chemical division;<br />
McCook site<br />
acquisition by Greyhound Lines Inc. 18,<br />
114c<br />
acquisition of Kessler 17, 114b<br />
Chicago Stock Yards 112, 114a<br />
develops fatty acid fractionation 17,<br />
114a–114b<br />
founding history 11, 113, 114a<br />
improvement of potash 15, 114b<br />
joint venture with Dan Hess 17, 114b<br />
joint venture with Lion Fat and Oil 114b<br />
merger history 30<br />
name changes and divestments 19,<br />
114b–114c<br />
production of soaps 12, 16, 17, 114a–114b<br />
Armour-Dial, Inc. (formerly Armour-Dial<br />
Company) 114b<br />
Armour-Dial Company (formerly Armour & Co)<br />
114b<br />
Armour’s Family Soap 114a<br />
Arnhem site (Akzo) 39<br />
Arnhem site (Enka/AKU)<br />
Enka plant 37<br />
production at 44b<br />
research centre 42b, 44a<br />
start of production 41–42a<br />
aromatic polymer composites (APCs)<br />
246c–247a<br />
art history 206i<br />
Artenius UK 247b<br />
Arthur Sanderson & Sons 196a<br />
artificial silk see rayon; viscose<br />
Asheville site (Akzo America Inc) 19<br />
Asheville site (American Enka Corporation) 14,<br />
42b<br />
Asken (investment company) 145c<br />
Aspa Mill 152c<br />
Aspro-Nicholas 110a<br />
Astral 54a<br />
AstraZeneca 247b<br />
Atlee, Clement 236c<br />
atom bomb 236a–236c<br />
atomic energy 236a–236c<br />
Ausvac 20, 110b<br />
Autocryl ® 54a<br />
Autoflex ® 17, 52a, 54a<br />
Autoflex ® Filler 52c<br />
Autoflex ® Sneldrogend 52c<br />
Autoflex ® Washprimer 52c<br />
AVC (American Viscose Company) 204c, 205a<br />
AVC (American Viscose Corporation)<br />
205a–205b, 208a–208b, 210b<br />
Avecia 247b<br />
B<br />
Bad Boekelo 15, 69<br />
BAE Systems 140c<br />
Baekeland, Leo 230c<br />
BAFTA award 244i<br />
Bahia site (Eka) 260<br />
Bakelite ® 230c<br />
ballistite 126b, 126c, 134a<br />
Banting, Fred 14<br />
Barnängen (Barnängen Tekniska Fabrik) see<br />
also Alvik site<br />
acquisition by Henkel 182<br />
acquisition by KemaNord (formerly<br />
Fosfatbolaget) 17, 18, 122b, 145b<br />
creation of AB Kema 15, 180b–180c<br />
education in beauty care 180c, 183<br />
expansions 180b–180c<br />
founding history 11, 179<br />
marketing of soaps 12, 180b<br />
merger history 30, 180b–180c, 182<br />
production of ink 180a–180b<br />
production of personal care products<br />
180c, 181<br />
production of soaps 180a–180b, 182<br />
“Shantung School” 16, 180c, 183<br />
trademark 180a<br />
Base Chemicals 258i<br />
BASF 19, 114d, 226b, 228i<br />
Battle of Britain 234c<br />
Battle of Cape Matapan 234c<br />
Bayer, Otto 238a<br />
Bayer AG<br />
acquisition of Nordsjö 166c<br />
agreement with <strong>AkzoNobel</strong> 28a<br />
anti-malarial research 240b<br />
divestment of Nordsjö 170a<br />
role in chemical industry 226b<br />
vaccine factory 110c<br />
and Zwanenberg 102b, 104a<br />
Bayer Biologicals 20, 31, 110b<br />
Beadle, Clayton 12, 44i<br />
Beatrice 247b<br />
Bebbington, Frank 234a<br />
Beer, Edwin 205i<br />
Bell, Alexander Graham 86i<br />
Bemberg 10, 23<br />
Bénénuts ® 96d, 98a<br />
Bengtsfors site (Eka)<br />
alkali plant 151<br />
founding site 12, 150a–150b<br />
hydro-electric power station at 150a<br />
relocation to Bohus 14<br />
Bergen op Zoom site (<strong>AkzoNobel</strong>) 250<br />
Berger, Lewis 10, 194a<br />
Berger ® 194a, 197<br />
Bernigaud, Hilaire (Count de Chardonnet) 202c<br />
Bernström, Mr. 184, 185<br />
Berol (AB Berol-Produkter) see also Domsjö<br />
site (Berol/MoDo)<br />
acquisistion by MoDo 16, 186a–186b<br />
acquisition by Nobel Industries 122c<br />
and business-to-business products 190i<br />
founding history 15, 185<br />
merger history 30<br />
production of impregnation agents 15,<br />
186a<br />
Berol Kemi AB 18, 19, 145c, 190c–190d<br />
Berol Nobel AB 19<br />
Berol ® (brand) 190c<br />
Best, Charles 14<br />
beta-blockers 17, 242b–242c, 247a<br />
Bevan, Edward John 12, 44i, 205i, 230c<br />
Bifacton ® 16<br />
Big Ben (soap brand) 114a<br />
Billingham site (Brunner Mond) 226b<br />
Bindol ® 15, 166b<br />
Biopol ® 246b–246c<br />
Biotex (stage play) 80d<br />
Biotex ® 80c–80d, 81, 88<br />
Birkeland, Kristian 144b<br />
BJN 196c<br />
Björkborn Foundation 140c<br />
Björkborn Manor 128c, 140c<br />
Bjurvald, Martin (Dr. RX) 174b<br />
Black, Sir James 242b–242c<br />
Blaisse, Folkert 46c<br />
blasting cap 11, 122a<br />
blasting gelatin 11, 26a, 126c, 134a<br />
bleaching powder 226a<br />
bleaching process see chlorine; chlorine<br />
dioxide; hydrogen peroxide<br />
the Blitz 140b, 234c<br />
“blue sky” research 232b, 235b<br />
Blunt, Sir Anthony 206i<br />
bodyshops 54a, 54c, 55<br />
Boekelo site (KNZ) 15, 68a–68b, 69<br />
Bofors AB see also Bofors site; Nobel<br />
Industries i Sverige AB<br />
acquisition by Nobel Industries<br />
122b–122c, 134a<br />
acquisition of KemaNobel, 19, 176a<br />
cannon manufacturing 11, 138a–138d<br />
divestment by Nobel Industries 145c<br />
founding history 10, 122b, 137–138a<br />
innovations in weapon manufacturing<br />
140a–140b<br />
merger history 12, 23, 26b, 30, 121<br />
production of armaments 14, 15, 122b,<br />
122c<br />
production of steel 138b<br />
weapons deal scandal 19, 26b, 122c,
140b–140c<br />
Bofors Nobel 122b<br />
Bofors Nobel Explosives Company 138i<br />
Bofors site (Bofors)<br />
Cannon Works 136<br />
employees at 141<br />
founding site 138a<br />
production of gunpowder 134b, 139<br />
Bofors ® guns 122b, 137, 140a–140b, 141<br />
Bofors ® turretless tank 140b<br />
Boforsite (explosive) 138i<br />
Bohr, Niels 236b<br />
Bohus site (Eka) 14, 150b, 153, 155<br />
Boldoot ® (brand) see also Boldoot (firm);<br />
Eau de Cologne<br />
bottles 87<br />
and the competition 86b, 88<br />
delivery van 84<br />
Boldoot (firm) see also Amsterdam sites;<br />
Boldoot ® (brand)<br />
Catholic faith and 86d, 88<br />
expansion after WW II 86d, 88<br />
founding history 10, 83<br />
merger history 17, 23, 30, 88<br />
part of Consumer Products division (Akzo)<br />
88<br />
part of Consumer Products division (KZO)<br />
88<br />
products range 89<br />
shop in Kalverstraat 14, 85, 86b<br />
takeover by British American Cosmetics<br />
88<br />
and the telephone 86i<br />
use of Eau de Cologne in soap 11, 86a<br />
during WW I and WW II 86b–86d<br />
Boldoot, Jacobus Cornelis 82, 83<br />
Boldoot museum 86b–86c<br />
Boon, William 240c, 244b<br />
Boot, H.A.H. 234b<br />
Borden Inc. 174a<br />
Borth (North-Westphalia) 68i<br />
Bosch, Carl 226c<br />
Boxmeer site (Intervet) 110c<br />
Breda site (Enka/AKU)<br />
employees at 43, 45a–45c<br />
final closure of 46a–46b, 47<br />
proposed closure of 19, 45a–45c<br />
British Alizarine Company 226a<br />
British American Cosmetics 88<br />
British Celanese Ltd. 210a<br />
British Cellophane Ltd. 205c, 210a<br />
British Dyes Ltd. 226a<br />
British Dyestuffs Corporation<br />
founding history 226a<br />
logo of 227<br />
merger history 225, 226c<br />
after WW I 226c<br />
British Dynamite Co. 226a<br />
British Ministry of Agriculture 244b<br />
British Ministry of Supply 240c<br />
British Nylon Spinners 15, 210b, 235b–235c,<br />
236a<br />
Brolac ® 196c<br />
Broxo ® 70a<br />
Brunner, Mond & Co. Ltd. see Brunner Mond<br />
Brunner, Sir John 226a, 230i<br />
Brunner Mond (Brunner, Mond & Co. Ltd.) see<br />
also Billingham site<br />
founding history 226a<br />
and the Haber-Bosch process 226b, 228i<br />
head-hunting system 230a<br />
influence on ICI 230i<br />
logo of 227<br />
merger history 225, 226c, 247b<br />
BT Kemi scandal 18, 160a–160b<br />
butanol 186b<br />
butyraldehyde 190d<br />
C<br />
calcium carbide 15, 144b, 144c, 145b<br />
Calico Printers’ Association 15, 235b–236a<br />
California ® soups 88, 104d<br />
"Cambridge Five" 206i<br />
Campbell, Gordon 212a<br />
Canadian Competition Bureau 197<br />
candle-making 114a, 178, 180b<br />
Cannon, Walter 242b–242c<br />
cannons 136, 138a–138d<br />
Car Refinishes 254c, 258i<br />
Car Refinishes Instruction Center 18, 54c<br />
car refinishing systems 17, 52c, 54a, 55<br />
carbide see calcium carbide<br />
carbon disulphide 152a<br />
Carlson, Birger 144c<br />
Carlson, Oscar 134d, 142, 143, 144c<br />
Carmiggelt, Simon 104d<br />
Carnegie (investment company) 145c<br />
Carothers, Wallace 232c, 235b–235c<br />
Carson, Rachel 246a<br />
Casco AB see also Kristinehamn site<br />
acquisition by Fosfatbolaget (formerly<br />
Superfosfat) 17, 122b, 145b, 174c<br />
advertisements 177<br />
expansion after WW II 174b, 174c<br />
founding history 14, 173–174a<br />
logo of 174a<br />
merger history 19, 30, 170a, 176a–176b<br />
product range of 174c<br />
production of adhesives 14, 15, 174a–174c,<br />
174i<br />
Casco Glue 174a<br />
Casco Nobel 176a<br />
Casco ® (brand) 176b<br />
Cascoflex ® 19, 176a<br />
CascoGard 18<br />
Cascol ® 16, 174b<br />
Casconol ® 174b<br />
Cascosinol ® 174a<br />
casein 14, 15, 173, 174a, 174i<br />
Cassell, G.E. 150a<br />
Catalyst business unit 20, 28b, 64b<br />
catalysts 16, 64b<br />
caustic soda (natrium hydroxide) 68i, 150b,<br />
204a see also lye (sodium hydroxide)<br />
Cefarox 92b<br />
Celanese (brand) 204c, 211<br />
Celanese Co. 204c<br />
Cellon (nylon brand) 210b<br />
Cellon Ltd. 17, 210a, 216b<br />
Cellophane 205c, 210b<br />
Celluloid 230c<br />
cellulose lacquer 14, 52a<br />
Central Research (Akzo Nobel) 76<br />
Central Works Council (Enka-Glanzstoff)<br />
45a–45b<br />
Central Works Council (ICI) 230a<br />
Cerazette ® 20, 106b<br />
CetaBever 52c<br />
CFCs (chlorofluoro carbons) 246a–246b<br />
Chadwick, James 236b<br />
Chain, Ernst 240c<br />
Challenge 2010 246b<br />
Chardonnet, Hilaire Bernigaud, Count of 202c<br />
Chefarine ® 106a<br />
Chefaro (Chemische Fabriek Rotterdam) see<br />
also Dordrecht site<br />
merger history 16, 31, 92b, 92c, 106a,<br />
106c<br />
part of Pharma division (Akzo) 18, 20, 92c<br />
Chemical Island Concept 260<br />
Chemicals businesses 26c, 28b, 64c, 116d, 252c<br />
Chemicals division (Akzo)<br />
Ketjen part of 64c<br />
Kortman & Schulte part of 80d<br />
merger with Salt division (Akzo) 20, 70b<br />
Noury & Van der Lande part of 76<br />
Van Hasselt part of 18, 92c<br />
Chemicals division (KZO) 36c, 106a<br />
chemicals industries 36b–36c, 64c, 144b<br />
Chemicals Pakistan 258i<br />
Chemische Fabriek Rotterdam (Chefaro) see<br />
Chefaro<br />
Chicago site (Akzo Nobel) 116d<br />
Chicago site (Armour) 112, 114b<br />
Chilean saltpeter (sodium nitrate) 80a<br />
chlorine<br />
as a by-product of LeBlanc process 226a<br />
as derivative of salt 68i<br />
environmental problems of 152a–152b<br />
production of 20, 68c, 152a–152b<br />
use of (chlorine tree) 71<br />
chlorine dioxide 152c<br />
chlorofluoro carbons (CFCs) 246a–246b<br />
Churchill, Sir Winston S. 53, 236c<br />
citric acid 15, 74c<br />
Clarks Summit site (International Salt<br />
Company) 115<br />
clothing, easy-care revolution in 236a<br />
Coatings businesses<br />
creation of 26c, 54a, 252c<br />
diversifications of 28b<br />
use of Sikkens brand name 56a<br />
Coatings division (Courtaulds) 210a<br />
Coatings division (KZO) 36c, 54a, 106a<br />
Cockcroft, John 236b<br />
Colomap ® 54b<br />
coloring agents 91–92a, 158c<br />
Colorozo ® 15<br />
Colorscala ® 54b<br />
commercials see advertisements; advertising<br />
campaigns<br />
Community Program 21, 28b<br />
competition authorities 197, 212a<br />
Compiègne site (Noury & Van der Lande) 15,<br />
74c<br />
Compozil ® 18, 19, 152c, 154a–154b<br />
Consumer Products division (Akzo)<br />
Boldoot part of 88<br />
Duyvis part of 98a<br />
founding of 18<br />
Kortman & Schulte part of 80d<br />
products range 89<br />
Shell’s shares in 88<br />
transferred to Douwe Egberts/Sara Lee<br />
19, 30, 88, 98a<br />
Consumer Products division (KZO) 88<br />
Consumer Products division (Nobel) 20, 30,<br />
122c, 182<br />
contraceptives see oral contraceptives<br />
Conway of Allington, Martin Conway, 1st Baron<br />
206i<br />
Copenhagen site (Sadolin & Holmblad) 158a,<br />
158b, 159, 161<br />
copolymer 220a, 220i<br />
Corona spray gun 221<br />
Corporate Environmental Department (Sadolin<br />
& Holmblad) 160b<br />
Corporate Environmental Policy (Sadolin &<br />
Holmblad) 160b<br />
Corporate Social Responsibility Report (CSR<br />
Report) 21, 28b<br />
Cortophine ® 16<br />
Coty Inc. 88<br />
Courtauld, Augustin 208i<br />
Courtauld, George I 201–202a, 203<br />
Courtauld, George II 202a<br />
Courtauld, Samuel III 113, 200, 201–202a, 202b<br />
Courtauld, Samuel IV 15, 204c, 206i, 208i<br />
Courtauld, Taylors & Courtauld see Samuel<br />
Courtauld & Co<br />
Courtauld Institute of Art 15, 204c, 206i, 208i<br />
Courtauld Silver Collection 208i<br />
Courtaulds see also Courtaulds plc; Courtaulds<br />
Textiles plc; Samuel Courtauld & Co; under<br />
267
268<br />
specific divisions; under specific sites<br />
acquisition by Akzo Nobel 20, 28a, 46c,<br />
212a–212b, 220a, 252b<br />
founding history 113<br />
joint venture with Akzo Nobel 26c<br />
listing on stock exchange 13<br />
map of site locations 198<br />
merger history 31, 56a, 216b<br />
partnershp with ICI 235c<br />
rivalry with Enka 42i<br />
separation into two businesses 19, 210c<br />
share prices 210a<br />
Courtaulds News 205i<br />
Courtaulds plc<br />
acquisition by Akzo Nobel 212a–212b<br />
founding history 19, 210c<br />
product range of 210c<br />
Courtaulds Textiles plc<br />
acquisition by Akzo Nobel 212a–212b<br />
founding history 19, 210c<br />
product range of 210c<br />
Courtelle ® 210a, 210b<br />
Coventry site (Courtaulds) 204b<br />
Cowap, A.H. 228i<br />
Crawford, John 235a<br />
Croda 247b<br />
Crompton Corporation 116d<br />
Cross, Charles Frederick 12, 44i, 204a, 205i,<br />
207, 230c<br />
Crown Berger Ltd. see also Crown Decorative<br />
Products<br />
acquisition by Nobel Industries 196c<br />
founding history 19, 193, 196c<br />
merger history 30, 56a, 122c, 145c, 176a<br />
part of Akzo Nobel 196c–197<br />
production of industrial coatings 196a, 197<br />
production of wallpaper 194a<br />
Queen’s Award for Technological<br />
Achievement 196c<br />
Crown Decorative Products 18, 19, 196b, 197<br />
see also Crown Berger Ltd.<br />
Crown Wilman Vymura 197<br />
Crown ® (brand) 17, 56a, 193, 196b, 196c–197<br />
Crown ® Advance ® One Coat 196b<br />
Crown ® Period Colors ® 197<br />
Crown ® Plus Two ® 17, 193<br />
Crowther, A.F. 242c<br />
Croydon Mouldrite Ltd. 232a<br />
Crumpsall Hospital 242b<br />
CSR Report (Corporate Social Responsibility<br />
Report) 21, 28b<br />
Cuprinol ® 170a<br />
Curd, Frank 239, 240b<br />
Curie, Irene 236b<br />
Curie, Marie 236b<br />
Curie, Pierre 236b<br />
CVC Capital Partners 20, 28a, 46c, 212a<br />
D<br />
Dan Hess 17, 114b<br />
Danielsson, Carl 138d, 140a<br />
Darwen site (Walpamur/Crown) 194b–194c,<br />
196a–196b, 197<br />
DCI (dichioroisoprenaline) 242b<br />
DDT 244a, 246a<br />
Decorative Coatings business 254a, 254c<br />
Decorative Paints business 254c, 258i<br />
Delfshaven site (Kortman & Schulte) 12, 78,<br />
80a, 80d<br />
Delfzijl site (Enka/AKU) 46a<br />
Delfzijl site (KNZ) 17, 70b<br />
Desogen ® 24c<br />
DeSoto (aircraft paints producer) 220a<br />
DeSoto site (Intervet) 20, 110b<br />
detonator 11, 126b<br />
Deventer Dagblad 36i<br />
Deventer site (Noury & Van der Lande)<br />
closure of flour factory 76<br />
creation of Nourypharma 74c<br />
explosion at peroxide plant 76<br />
founding site 73<br />
move to new building 74b–74c<br />
safety laboratory at 76<br />
Dexter Corporation 28b<br />
Dial Corporation (formerly Armour & Co.) 19,<br />
20, 114d<br />
Dial Deodorant Soap 16, 114b<br />
dichioroisoprenaline (DCI) 242b<br />
Dickson, J.T. 235c<br />
Diosynth 18, 20, 28b, 106c<br />
Diphenyl Methane Di-isocyanate (MDI) 238b<br />
Diprivan ® 247a<br />
diquat 244b<br />
DJSI (Dow Jones Sustainability Indexes) 21,<br />
28b, 247c<br />
Dobbelman ® 80d, 88<br />
Dobson and Braine 236a<br />
Docker Brothers 216c<br />
Domsjö site (Berol/MoDo) 190a–190b, 190d<br />
Dordrecht site (Chefaro) 92c<br />
Douwe Egberts/Sara Lee 19, 30, 88, 98a<br />
Dow Chemicals 247b<br />
Dow Jones Sustainability Indexes (DJSI) 21,<br />
28b, 247c<br />
Driehoek ® 80b–80c, 88<br />
Drietex 80c<br />
DSM (Dutch Sate Mines) 45<br />
Du Saar (employee Ketjen) 64a<br />
Dulux ® 16, 193, 238c, 240a<br />
Dulux ® Brilliant White 240a<br />
Dulux ® dog 240a, 241<br />
Dunlop 174b<br />
DuPont<br />
and competition Akzo 19, 24a–24b, 46a<br />
development of fluorocarbons 242a<br />
and the Dulux ® brand 238c<br />
invention of nylon 232c, 235b–235c<br />
Kevlar ® production 24a–24b, 46a<br />
production of polythene 234a<br />
relationship with ICI 228c<br />
Durabolin ® 17<br />
Duradio ® Enamel Paint 196a<br />
Dutch State Mines (DSM) 45<br />
Duyvis (Koninklijke Fabrieken T. Duyvis Jz. n.v.)<br />
see also Koog aan de Zaan site<br />
advertisement 99<br />
founding history 10, 13, 95–96a<br />
listing on stock exchange 17, 96d<br />
merger history 18, 30, 36a, 36i, 106a<br />
merger with Recter 19, 98a<br />
part of Consumer Products division (Akzo)<br />
98a<br />
as part of Douwe Egberts/Sara Lee 98a<br />
production of consumer food 15, 96b–96d<br />
production of linseed oil 96a–96b<br />
production of nuts, snacks and mixes 17,<br />
98a–98b<br />
“Royal” designation 17, 19, 96d, 98a<br />
Duyvis, Ericus Gerardus (son of T. Duyvis Janz.)<br />
96a<br />
Duyvis, Teeuwis 94, 95–96a<br />
Duyvis Janszoon, Teeuwis (grandson of<br />
Teeuwis Duyvis) 96a–96b<br />
Duyvis ® (brand) 98a, 99<br />
Dyestuff Group (ICI) 232b, 240a<br />
dyestuff industry 158a–158b, 226a, 238b–238c<br />
dynamite<br />
invention of 11, 70i, 122a, 126b<br />
production of 134a–134b<br />
use of 70i, 126c, 133<br />
E<br />
Eau de Cologne 11, 83, 88, 88i, 180a see also<br />
Boldoot ® (brand)<br />
Eau de Cologne 'Extra-Vieille' 88i<br />
Eau de Cologne 4711 88i<br />
ECF (elemental chlorine-free) 152c<br />
Echafa 104d<br />
Ede site (Enka/AKU) 42b, 44a<br />
Edet 106a<br />
Edison, Thomas 114a<br />
Ehrlich, Paul 240a–240b<br />
Eigen Vervoers Organisatie (EVO) 44a<br />
Eka (Elektrokemiska AB (EKA)) see also<br />
Bengtsfors site; Bohus site; Eka Nobel AB<br />
acquisition by Nobel Industries 19, 122c,<br />
154a<br />
annual turnover 152a<br />
diversifications 152a–152c<br />
employees 150i, 153<br />
founding history 12, 14, 18, 149–150a<br />
merger history 30, 154b<br />
name change to Eka Nobel AB 19<br />
part of Akzo Nobel Chemicals 116c<br />
product range of 152a<br />
production of ammonia 17<br />
production of caustic soda 150b<br />
production of chloride of lime 12,<br />
150a–150b<br />
production of chlorine dioxide 152c<br />
production of Compozil ® 19, 152c,<br />
154a–154b<br />
production of hydrogen peroxide 14, 152b,<br />
155<br />
production of lye 12, 150b, 152a<br />
production of metacilicate 15, 152a<br />
production of water glass 14<br />
reorganization by Montgomery 152a<br />
Eka Chemicals see Pulp & Paper Chemicals<br />
Eka Nobel AB 19, 145c see also Eka<br />
(Elektrokemiska AB (EKA))<br />
Ekerö site (Barnängen) 182<br />
Elektrokemiska AB (EKA) see Eka<br />
(Elektrokemiska AB (EKA))<br />
Eli Lilly laboratories 242b<br />
Emmen site (Enka/AKU) 16, 44a, 45a, 45i, 46a<br />
Emmerich site (Noury & Van der Lande/Akzo)<br />
13, 18, 74a, 74c<br />
employees see also job losses<br />
of AKU 44a<br />
at Bofors site 141<br />
at Breda site 43, 45a–45c<br />
of Eka 150i, 153<br />
at Emmen site 45i<br />
at Enka plant 43<br />
at Felling-on-Tyne site 217<br />
female 150i, 247b<br />
labor relations 19, 180a, 228c, 230i<br />
Nordsjö 164<br />
Nordsjö staff canteen 171<br />
at Oss site 106a<br />
of Sadolin & Holmblad 159<br />
at Sassenheim site 52b<br />
transport for 44a, 166c<br />
in yarn factory 213<br />
enamel 158c, 160i<br />
energy conservation 19, 220i, 246b<br />
Eneroth & Co. 180b<br />
Engman, Anders 253<br />
Engström, Albert 180b<br />
Enka (Nederlandse Kunstzijdefabriek)<br />
see also AKU; American Enka; American<br />
Enka Corporation; Arnhem site (Enka/AKU);<br />
Asheville site; Breda site (Enka/AKU); Delfzijl<br />
site (Enka/AKU); Ede site (Enka/AKU);<br />
Emmen site (Enka/AKU); Lowland site<br />
corporate identity of 19<br />
employees at 43<br />
founding history 13, 41–42a<br />
international expansion 42a–42b<br />
loss of German companies 42c, 44a<br />
merger history 18, 21, 24a, 30, 36a,
36a–36b, 42b, 44b–45a, 204a<br />
production of viscose 13, 16, 41, 44a<br />
rivalry with Courtaulds 42i<br />
during WW I 42a–42b<br />
Enka ® chamois 44b<br />
Enka International 18<br />
Enka-Glanzstoff<br />
founding history 18, 44b, 44b–45a<br />
job losses 46a–46b<br />
master plan for Fibers division 45a–45c<br />
outsourcing synthetic fiber production 46b<br />
synthetic fiber market crisis 46a–46c<br />
Enkalon ® 44a, 47<br />
Enka ® -spons (Enka ® sponge) 44a<br />
Enschede see Boekelo site (KNZ); Usselo site<br />
(KNZ)<br />
Enso Paperikemia 20<br />
Entosorbine ® 88<br />
environmental awareness, growth of 246a–246c<br />
environmental crimes 160a–160b<br />
environmental policies<br />
Akzo Nobel 20, 21<br />
ICI 246b<br />
Nordsjö 20, 170b<br />
Sadolin & Holmblad 160b<br />
Environmental Protection Act (Sweden) 160b<br />
Environmental Sciences Group (ICI) 18, 244b<br />
Epiglass 220a<br />
ethanol 88i, 186b<br />
ethylene 186b, 190a–190b<br />
ethylene glycol 15, 186b<br />
ethylene oxide 186b, 190b<br />
EU Flower 20, 170b<br />
European Commission 197, 212a<br />
Eutech 247b<br />
EVO (Eigen Vervoers Organisatie) 44a<br />
Expancel (firm) 176i<br />
Expancel ® 145b, 176i<br />
explosives<br />
and Alfred Nobel 26a, 126c<br />
production of 11, 64a, 122a, 134a–134c,<br />
135<br />
use of 50d, 138i<br />
Extensor 220a<br />
Eyde, Sam 144b<br />
F<br />
4711 (Eau de Cologne) 88i<br />
Fabergé, Peter Carl 160i<br />
Fabriken Tomten and Vignäron 180b<br />
Faraday Society 232c<br />
Farina, Giovanni Maria (Johann Maria) 83, 88i<br />
Farina, Jean Maria Joseph 88i<br />
fatty acids 14, 17, 80d, 96i, 114a–114b<br />
fatty amines 15, 16, 114b<br />
Fawcett, Eric William 232b–232c, 233<br />
Fawcett disclosure 232a–232b<br />
FCC (fluid catalytic cracking) 26c<br />
Felix ® 98a<br />
Felling-on-Tyne site (Holzapfel/International)<br />
development of copolymer 220a<br />
employees at 217<br />
expansion and modernizing 216b<br />
factory at 13, 18, 216a<br />
powder coating factory at 216c<br />
tankhouse 6 218<br />
Feminis, Gian Paolo 88i<br />
Ferguson, James 242a<br />
Fermi, Enrico 236b<br />
fertility drugs 17, 20, 28b, 102b, 106b<br />
fertilizers, artificial 64a, 144a–145a, 145b<br />
Fibers business unit 26c, 46c<br />
Fibers division (Akzo)<br />
financial struggles 24a, 46b<br />
master plan for 18, 43, 45a–45c<br />
outsourcing production 46b<br />
Fibers Division (ICI) 17, 236a<br />
Fina works 104d<br />
fire brigade 52b, 161<br />
Fleming, Alexander 240c<br />
Fleurs de Hollande (perfume) 86d<br />
Flexa ® 56a<br />
Flexsys 92c<br />
flour improver 74b, 92b<br />
fluid catalytic cracking (FCC) 26c<br />
fluorocarbons 242a<br />
Fluothane ® 16, 240c, 242a–242b, 245<br />
Flyol 92b<br />
Follistim ® 28b<br />
Fonderies & Ateliers Mécaniques Nobel & Fils<br />
126a<br />
Food division (KZO) 36c, 106a<br />
Forskningslaboratoriet LKB 180c<br />
Fosfatbolaget AB see also KemaNord AB<br />
acquisition of Casco 17, 122b, 145b, 174c<br />
acquisition of Liljeholmens Stearinfabrik<br />
122b<br />
agreement with MoDo 190a–190b<br />
name change to KemaNobel 18, 122a,<br />
145b, 174c<br />
name change to KemaNord AB 18<br />
production of melamine 147<br />
4711 (Eau de Cologne) 88i<br />
fowl pox 110a<br />
Freeth, Francis 228i, 232a–232b<br />
freeze-driers 111<br />
Fremery, Max 204a<br />
Friends of the Earth 246a<br />
Frisch, O.R. 236b, 236c<br />
FSH 20<br />
FTSE100 Index 247c<br />
FTSE4Good Index 247c<br />
Functional Chemicals 190d, 258i<br />
fungicides 92c<br />
furniture design see Sikkens Prize<br />
furniture industry 174b, 176b<br />
G<br />
Gamlestaden, financial crisis 19, 26b, 122c,<br />
145c, 170a, 182<br />
Gammexane 242c, 244a<br />
Gandhi, Rajiv 140b–140c<br />
Garst Seed 247b<br />
Geigy 244a<br />
Gellini 20, 110b<br />
Gembo 52c<br />
General Chemicals Division (ICI) 242a<br />
General Motors 242a, 246a–246b<br />
General Strike (1926) 194i<br />
General United Viscose see AKU<br />
Getting It There 244i<br />
Gibson, Reginald 231c–231d<br />
giornata particolare, Una (film) 60<br />
Gist-Brocades 19, 110b<br />
Gladweg ® 70a<br />
Glanzstoff-Courtauld 210b<br />
Glidden 247a<br />
Glimfabriek 104d<br />
Glover, William 150i<br />
glue see adhesives<br />
grain storage 77<br />
Gramoxone ® 17, 244b<br />
Great Depression 42b–42c, 96a–96b, 205b,<br />
230b, 232a<br />
Greyhound Lines Inc. 18, 114c<br />
Groen, Henk 54b–54c<br />
Groningen site (Sikkens) 49, 50a, 50d, 52b<br />
Groningen Street 52b<br />
“Guldhuset” 158a<br />
Gustav VI Adolf, King 189<br />
G.W. Sikkens & Co. see also Sikkens Group;<br />
under specific sites<br />
advertising campaign 52a<br />
coatings for aircraft 52c<br />
forming of the Sikkens Group 52c<br />
formula for varnish 50i<br />
founding history 10, 30, 49<br />
listing on stock exchange 16, 52c<br />
official dealerships 50c<br />
paints for car manufacturing 50a–50b, 50d<br />
paints for car refinishing systems 52c<br />
part of KZK 17<br />
production of cellulose lacquers 14, 52a<br />
production of Japanese lacquers 12,<br />
50a–50b, 52a<br />
production of synthetic resins 52b<br />
production of water glass 52c<br />
Purveyor of the Royal Household 15, 52a<br />
“Royal” designation 13, 50b<br />
and Rubbol ® Japanlak sneldrogend 14,<br />
50d, 51<br />
during WW I 50b–50c<br />
during WW II 53<br />
during and after WW II 52b<br />
Gyttorps Sprängämnes 134b<br />
H<br />
Haber, Fritz 144b–144c<br />
Haber-Bosch process 226b, 228i<br />
Hahn, Otto 236b<br />
halothane 242a<br />
Halstead site (Courtaulds) 203<br />
Hammar, Victor 140a–140b<br />
Hanscombe, Philip 240a<br />
Harcross Chemicals 116c<br />
Hartogs, Jacques Coenraad 40, 41, 42i<br />
Harvey-Jones, Sir John 244i, 245, 247a<br />
Hedström, Bengt 172<br />
Helpman 50a<br />
HEMA 61<br />
Hendrik Gahns AB 180c<br />
Hendrix, Wim 108<br />
Hengelo site (KNZ)<br />
job losses 70b<br />
new plants at 15, 68c<br />
research centre 68c, 70b<br />
salt-drilling rig 25<br />
Henkel<br />
acquisition of Consumer Products division<br />
(Nobel) 20, 30, 122c, 182<br />
acquisition of Dial Corporation 20, 114d<br />
acquisition of parts of Akzo Nobel 247c,<br />
254b<br />
herbicides 16, 17, 76, 244a–244b<br />
Herrema, T. 18<br />
“he’s worth his salt” 70i<br />
Hess, Sophie 128b<br />
HFCs (hydrofluorocarbons) 246b<br />
Hierta, Lars Johan 134d, 143<br />
Hilton, Richard 194b<br />
Hinton, Christopher 236c<br />
Hoechst AG 196c, 226b<br />
Hoechst Roussel Vet 20, 28a, 31, 110b<br />
Hoesch Chemie 36i, 64c, 106a<br />
Hogg, Sir Christopher 18, 210c<br />
Hollandia Theater Group 80d<br />
Hollandse Kunstzijde Industrie 42b<br />
Holmblad (firm) 10, 11, 158a–158b<br />
Holmblad, Jacob 49, 158a<br />
Holmblad, Lauritz 158a–158b<br />
Holmblad, P.L. 158b<br />
Holmbladsgade 158b, 159<br />
Holmström, John Wilhelm 179, 180a<br />
Holzapfel, Albert 215<br />
Holzapfel, brothers 214<br />
Holzapfel, Max 214, 215<br />
Holzapfel Limited see also Felling-on-Tyne site;<br />
International Paints (Holdings) Ltd.<br />
founding history 11, 214, 216a, 217<br />
name change 14, 216a<br />
production of paints 12<br />
Hopton Technologies 20, 28b<br />
Hossman, Paul 138a<br />
Household Products division (KZO) 36c, 106a<br />
269
270<br />
HPC (hydroprocessing catalysts) 26c<br />
Huguenot refugees 113, 201, 208i<br />
Huisman, Sipko 210c, 212a<br />
Humegon ® 17, 106b<br />
Hunink, Anton 104d<br />
Huntingdon, A.W. 194c<br />
Huntingdon, James 194b–194c<br />
Huntsman 247b<br />
Hurd, Reg 238a–238b<br />
Hutter, Joseph R. 46b<br />
Hyatt, John Wesley 230c<br />
hydrochloric acid 13, 14, 15, 64a, 68c<br />
hydrofluorocarbons (HFCs) 246b<br />
hydrogen peroxide<br />
chemical composition 76i<br />
production of 14, 152a–152c, 155<br />
as substitute for chlorine 152b<br />
hydrophobization agents 186a<br />
hydroprocessing catalysts (HPC) 26c<br />
I<br />
IAA (indoleacetic acid) 244a<br />
ICI (Imperial Chemical Industries) see also<br />
under specific divisions; under specific sites<br />
abortive bid for Courtaulds 17, 210a–210b,<br />
236a<br />
acquisition by Akzo Nobel 21, 28c–29,<br />
247c, 254b<br />
agricultural research 242c, 244a–244b<br />
ammonia synthesizing process 246b<br />
anesthetic research 242a–242b, 245, 247a<br />
annual turnover 247a, 247c<br />
anti-malarial research 16, 240b–240c<br />
biodegradable plastic 246b–246c<br />
collapse of nitrogen market 14, 230b, 240a<br />
development of beta-blockers 17,<br />
242b–242c, 247a<br />
development of penicillin 15, 240c<br />
development of proteins 18, 244c, 246a<br />
divestments 20, 247b<br />
dyestuffs research 238b–238c<br />
energy conservation 246b<br />
environmental policies 246b<br />
expansion 247a–247b<br />
founding history 14, 226c, 228a–228b<br />
head-hunting system 230c–231a<br />
house journal 231<br />
identification with Empire 228b–228c<br />
influence of Brunner Mond on 230i<br />
and international competition 225,<br />
226b–226c<br />
invention of Perspex ® 15, 235a–235b<br />
invention of polythene 15, 232a–232b, 233<br />
labor relations at 228c<br />
listing on stock exchange 247c<br />
logo of 28c, 228b<br />
map of site locations 222<br />
merger history 31<br />
nuclear research 15, 236c<br />
partnership with Courtaulds 235c<br />
product range of 228b–228c, 247c<br />
production of Dulux ® 16, 193, 238c, 240a<br />
production of Fluothane ® 16, 242a–242b,<br />
245<br />
production of herbicides 16, 17,<br />
244a–244b<br />
production of MDI foams 238b<br />
production of mepacrine 240b<br />
production of paints 247b<br />
production of polythene 234b–234c, 238a<br />
production of Terylene ® 15, 235c–236a,<br />
237<br />
relationship with DuPont 228c<br />
research in CFC alternatives 19,<br />
246a–246b<br />
during WW II 235a<br />
ICI Fibers Ltd. 236a<br />
ICI Paints 247c<br />
ICI Watercare 246b<br />
ICI Workers’ Shareholding Scheme 230a<br />
IG Farben 226b, 226c, 228a, 238a<br />
Imperal Home Décor 197<br />
Imperial Chemical Industries (ICI) see ICI<br />
Implanon ® 20, 106b<br />
impregnation agents 186a<br />
Inderal ® 17, 242c, 247a<br />
indoleacetic acid (IAA) 244a–244b<br />
Industria paint factory 92c<br />
Industrial Activities 258i<br />
Industrial Chemical division (Armour) 114c<br />
Industrial Finishes 254c<br />
INEOS 247b<br />
ink 11, 28a, 158c, 180a–180b<br />
insulin<br />
discovery of 14<br />
production of 14, 103, 104i<br />
use of offal for production of 102a, 102i<br />
Inter-Continental Biologics 19, 110b<br />
International Paint & Compositions Co Ltd. see<br />
International Paints (Holdings) Ltd.<br />
International Paint Ltd. see also International<br />
Paints (Holdings) Ltd.<br />
founding history 14, 215–216b<br />
expansion 216a–216c<br />
production of marine paints 15, 215–216b<br />
International Paints (Holdings) Ltd. see also<br />
International Paint Ltd.<br />
acquisition by Courtaulds/PJA 18, 210a,<br />
216b–216c<br />
founding history 11, 16, 216a–216b<br />
geographical expansion 220a<br />
product innovations 216c, 220a<br />
production of powder coatings 216c,<br />
220a, 221<br />
International ® 56a<br />
Internatonal Salt Company 18, 70a, 115<br />
Interpon ® 56a, 216c<br />
Intersleek ® 425 220i<br />
Intersleek ® 700 220i<br />
Intersleek ® 900 220i<br />
Intervet International see also Laboratoria<br />
Nobilis (Intervet); under specific sites<br />
acquisition of Hoechst Roussel Vet 20,<br />
28a, 110b<br />
acquisition of Inter-Continental Biologics<br />
19, 110b<br />
founding history 18, 109, 110a<br />
geographical expansion 20, 110a–110b<br />
and Gist-Brocades 19, 110b<br />
innovations 110b–110c<br />
merger history 18, 30, 31, 110a<br />
part of Organon BioSciences 21, 110c,<br />
254b<br />
production of veterinary vaccines 19,<br />
110a, 110c<br />
Invista 247b<br />
IRA 18<br />
J<br />
Jacoa 196c<br />
Jansen, Jac 110a<br />
Jansson, Emanuel 140a–140b<br />
Jealott’s Hill site (ICI) 242c<br />
Jenson and Nicholson 194b<br />
J.F. Laucks Company 174a<br />
job losses<br />
Enka-Glanzstoff 46a–46b<br />
Ketjen 64c<br />
in salt plants 70b<br />
synthetic fibers market 46a–46b, 210c<br />
Johansson, Egon 184<br />
John Hall and Sons 194a–194b, 196c<br />
Johnstone, Michael 242b, 243<br />
Joliot, Pierre 236b<br />
Jones, Frank 205i<br />
Jones, Peter 59<br />
Jozo ® 14<br />
Judd, Donald 58i, 61<br />
K<br />
Kearton, Sir C.F. 210a, 210b–210c, 236c<br />
Kellex Corporation 236c<br />
Kema Companies see AB Kema<br />
Kemabolagen 180c<br />
KemaNobel<br />
advertisements 134b–134c<br />
founding history 18, 26b, 122a–122b,<br />
134c–134d<br />
merger history 19, 30, 121, 122b–122c,<br />
145b, 170a, 176a<br />
product range of 145b–145c<br />
KemaNord AB see also KemaNobel<br />
acquisition of Barnängen 17, 18, 122b,<br />
145b<br />
acquisition of Nitro Nobel 18, 134c, 145b<br />
founding history 122a–122b, 174c<br />
merger history 19, 30, 134c<br />
name change to KemaNobel 18, 134c,<br />
145b, 176a<br />
Kemi-Casco 174b<br />
Kemira 196c<br />
Kemisk Værk Koge A/S 158c<br />
Kempensche Zinkmaatschappij 17<br />
Kenobel 19<br />
KenoGard 19, 145c<br />
Kessler 17, 114b<br />
Ketjen (Koninklijke Zwavelzuurfabrieken van het<br />
Ketjen) see also Amsterdam site (Ketjen)<br />
develops activated carbon 15, 64a<br />
founding history 10, 63<br />
innovations & growth 64a–64b<br />
job losses 64c<br />
merger history 17, 30, 36a, 36b, 64c, 68c,<br />
92c<br />
production of sulfuric acid 12, 15, 64a–64b,<br />
64c<br />
during and after WW II 64b<br />
Ketjen, Gerhard Tileman 63<br />
Kevlar ® 19, 24a–24b<br />
Kew laboratory (Viscose Spinning Syndicate)<br />
204a, 205i<br />
Key (magazine) 197<br />
Kinder & Co. 196a<br />
King, Peter 244c<br />
Kinsky, Bertha 128a<br />
Kjellberg & Söner 134b<br />
KLEA 134a 19, 245, 246b<br />
KLEA 32 246b<br />
Kleefse Waard site (Enka/AKU) see Arnhem<br />
site (Enka/AKU)<br />
Kleve site (Noury & Van der Lande) 73, 74a<br />
Knight, Sir Arthur 210b–210c<br />
KNZ (Koninklijke Nederlandse Zoutindustrie)<br />
see also under specific sites<br />
diversifications 68b–68c<br />
founding history 14, 68a<br />
merger history 17, 30, 36a, 36b, 64c, 68c<br />
production of potash 15<br />
production of soda 14, 17, 68c<br />
Kolker, Hugo 207<br />
Kölnisch Wasser 88i<br />
Koninklijke Fabrieken T. Duyvis Jz. n.v. see<br />
Duyvis<br />
Koninklijke Lak- en Japanlakkenfabriek G.W.<br />
Sikkens & Co see G.W. Sikkens & Co.<br />
Koninklijke Nederlandse Zoutindustrie (KNZ)<br />
see KNZ<br />
Koninklijke Zout-Ketjen (KZK) see also<br />
Koninklijke Zout-Organon (KZO)<br />
founding history 17, 36b, 64c, 68c
merger history 30<br />
merger with Koninklijke Zwanenberg-<br />
Organon 17, 45c, 54a, 70a, 106a<br />
salt production of 70a<br />
Koninklijke Zout-Organon (KZO) see also under<br />
specific divisions<br />
founding history 17, 36b, 45c, 54a, 70a,<br />
106a<br />
merger history 18, 30, 35–36a, 80d, 88,<br />
106a<br />
merger with AKU 18, 24a, 36i, 44b–45a,<br />
45c<br />
Koninklijke Zwanenberg-Organon see also<br />
Koninklijke Zout-Organon (KZO)<br />
acquisition of Kortman & Schulte 17, 80d,<br />
104d<br />
acquisition of Noury & Van der Lande 17,<br />
36b, 104d<br />
diversification 104d<br />
founding history 36b, 104c<br />
merger history 17, 30, 88<br />
merger with KZK 17, 45c, 54a, 70a, 106a<br />
merger with Noury & Van der Lande 76<br />
“Royal” designation 16, 104c<br />
takeover of Laboratoria Nobilis (Intervet)<br />
104d, 110a<br />
Koninklijke Zwavelzuurfabrieken van het Ketjen<br />
see Ketjen<br />
Koog aan de Zaan site (Duyvis) 96a–96b, 97<br />
Kortman, Constant 79<br />
Kortman & Schulte see also Delfshaven site<br />
acquisition by Koninklijke Zwanenberg-<br />
Organon 17, 80d, 104d<br />
founding history 12, 79<br />
introduction of Zilverzeep 12, 80b<br />
joint advertising with AKU 80c<br />
merger history 30, 36a, 80d<br />
production of iodine 80a–80b<br />
production of soaps 12, 80b–80d<br />
production of soda 79–80a<br />
production of synthetic detergents 17,<br />
80c–80d<br />
Kraijenhoff, Gualtherus (Guup) 22, 45c–46a<br />
Kristinehamn site (Casco) 174c<br />
Kroon voor de Was 80b<br />
Krupp 138b<br />
Kvävebolaget 150b<br />
KZK (Koninklijke Zout-Ketjen) see Koninklijke<br />
Zout-Ketjen<br />
KZO (Koninklijke Zout-Organon) see Koninklijke<br />
Zout-Organon<br />
L<br />
L/70 40 mm gun 15, 122b, 140a–140b<br />
La Cellophane 205c<br />
La Seda de Barcelona 24c<br />
Label Inks 28a<br />
Laboratoria Nobilis 16, 17, 106a, 109, 110a see<br />
also Intervet International<br />
Láboratorios Saltor 18, 110a<br />
lacquers 54i, 74i see also under different brand<br />
names<br />
Laqueur, Ernst 100, 102b, 102i<br />
Lars Foss Kemi A/S 158c<br />
Lars Montén & Co. 15, 180b<br />
Latham, Thomas Paul 202c<br />
Le Corbusier 58i<br />
Leblanc process 226a<br />
Lee of Fareham, Arthur Hamilton Lee, 1st<br />
Viscount 206i<br />
Leeropaan ® 102b<br />
Leiden site (Sikkens) 52c<br />
Leigh site (Courtaulds) 12, 202c<br />
Lend-Lease 208b<br />
Leo, Anders 164<br />
Lesonal 54a, 106a<br />
Lever Brothers 226b<br />
Levinstein Ltd. 226a<br />
Lewis Berger & Sons 19, 194a, 196c<br />
Library of Science and Technology 144i<br />
Lignox ® 152c<br />
Liljeholmens Stearinfabrik AB<br />
acquisition by Barnängen 180b–180c<br />
acquisition by Superfosfat 16, 122b, 145b<br />
end of superphosphate production 15<br />
founding history 10<br />
production of candles at 178<br />
Lilljeqvist, Rudolf 148, 149–150b<br />
Limerick site (Akzo) 18<br />
Lincrusta ® 194d, 197<br />
linseed oil 50i, 96a–96b, 96i<br />
Lion Fat and Oil 114b<br />
liquid chlorine 68c, 152a–152b<br />
Liverpool FC 195, 196b<br />
Liverpool School of Tropical Science 240b<br />
Livial ® 19, 106b<br />
Livorno ® 96d<br />
Ljunga Saltpeter 144c<br />
Ljungaverk site (Superfosfat)<br />
hydro-electric power station at 13<br />
library at 144i<br />
opening of 144a<br />
production of fertilizers at 15, 144b–144c<br />
production of plastics 145a–145b<br />
production of synthetic rubber 145a<br />
Ljunglöf, Robert 180b<br />
Loda ® 80d, 104d<br />
logos see also trademarks<br />
Akzo 18, 38i, 45c, 80b<br />
<strong>AkzoNobel</strong> 254c<br />
British Dyestuffs 227<br />
Brunner Mond 227<br />
Casco 174a<br />
Crown ® 195<br />
ICI 28c, 228b<br />
Nobel Industries (British arm) 227<br />
United Alkali 227<br />
Lohse, Richard Paul 60<br />
London site (ICI) 228c, 229<br />
Loudon, Aarnout A. 22, 24b–24c, 38i, 252a,<br />
252c, 254a<br />
Louis O. Werneke 28a<br />
Lowland site (Enka) 117<br />
LR-lim 15, 174a<br />
Lucite 247b<br />
lye (sodium hydroxide) 12, 150b, 152a see also<br />
caustic soda (natrium hydroxide)<br />
Lyndiol ® 17, 27, 106a, 107<br />
M<br />
MacPherson ® Paints 196c, 197<br />
madder (Rubia tinctorum) 158a<br />
malaria 240b–240c<br />
Malmö site (Akzo Nobel) 253<br />
Malmö sites (Nordström & Sjögren) 164, 165,<br />
166a, 167, 168<br />
Manning, Dermot 232b<br />
Månsbo site (Superfosfat) 12, 144a, 144i, 146<br />
Marcus Hook site (Courtaulds/AVC) 204c<br />
Margarine Unie 14, 101<br />
Marine & Protective Coatings 254c, 258i<br />
marine coatings<br />
delivery of 219<br />
and environmental issues 220i<br />
powder coatings 216c, 220a<br />
production of 15, 215–216b<br />
Marvelon ® 19, 26c, 106b<br />
Mattcement 174a<br />
Mattsson, Ove 176a–176b, 252a<br />
Mayer, Joseph 116a<br />
Mayolande 96d<br />
McCook site (Armour) 16, 114b, 116b<br />
McGowan, Sir Harry 226c, 228a–228b<br />
McKenna, Reginald 226c<br />
MDI (Diphenyl Methane Di-isocyanate) 238b<br />
meat trade 104c, 114a<br />
Medical Division (ICI) 17<br />
Mees, August Mari 50d, 58<br />
Meitner, Lise 236b<br />
Mekog fertilizer 64a<br />
melamine 145a, 147<br />
Melchett, Alfred Mond, 1st Baron see Mond,<br />
Sir Alfred<br />
Mellor, J.G.G. 196a<br />
Membrana business unit 46b<br />
Menformon ® 14<br />
mepacrine 240b<br />
Mepal 147<br />
Mercilon ® 19, 26c<br />
metasilicate 15, 152a<br />
Methoxone ® 16, 242c, 244a–244b<br />
methyl methacrylate 235a<br />
Meyer, Kurt 232c<br />
Michels, Anton 232b<br />
Miljonprogrammet 166c<br />
mills 73, 74a, 74c, 75, 95–96a<br />
Mitchell, Reginald 235a<br />
Mixit ® 54c<br />
Mo och Domsjö AB (MoDo) see MoDo<br />
Moabite Hospital 240a–240b<br />
Mobile site (Courtaulds) 212a<br />
MoDo (Mo och Domsjö AB) see also Berol<br />
Kemi AB; MoDoKemi AB; under specific<br />
sites<br />
acquisition of Berol 16, 186a–186b<br />
acquisitions 190b–190c<br />
agreement with Fosfatbolaget 190a–190b<br />
divestment of chemicals operations 18,<br />
190c<br />
name change to MoDoKemi AB 18, 190c<br />
production of ethylene glycol 15<br />
MoDoKemi AB 18, 190b–190c see also Berol<br />
Kemi AB<br />
Molina, Mario 246b<br />
Mölndal site (Berol) 186a<br />
Mölndal site (MoDo) 190b, 191<br />
Mond, Ludwig 224, 226a, 230i<br />
Mond, Sir Alfred (later Lord Melchett) 226b,<br />
226c, 228c, 230a, 230c, 240a<br />
Mond Nickel Company 228c<br />
mondo nuovo, Il (film) 60<br />
Montgomery, J.G. 152a<br />
Morgenthau, Henry 208b<br />
mourning crepe 11, 202a–202b, 209<br />
Muromatte Flat Oil Paint 196a<br />
Mutar, Mr. 207<br />
N<br />
NAA (alphanaphthaylacetic acid) 244a–244b<br />
Nacka site (Casco) see Stockholm site (Casco)<br />
Nacka site (Superfosfat) see Stockholm site<br />
(Superfosfat)<br />
National Franchise Board for Environmental<br />
Protection (Sweden) 152a<br />
National Starch 247c<br />
natrium hydroxide (caustic soda) 68i<br />
Nature 236b<br />
Nazi occupation 42c, 104a–104b<br />
Nederlandse Bell Telefoonmaatschappij 86i<br />
Nederlandse Kunstzijdefabriek (Enka) see Enka<br />
Nederlandse Staatsmijnen (DSM) 45<br />
Neoprene (synthetic rubber) 145a–145b<br />
NeSBIC 20<br />
NewCell ® 26c<br />
nickel 228c<br />
Nitro Nobel AB<br />
acquisition by KemaNord 18, 134c, 145b<br />
divestment of part of 122c<br />
founding history 26b, 122a–122b<br />
merger history 30, 134c–134d, 145b, 145c<br />
offices 132<br />
271
272<br />
range of products 135<br />
Nitro Reparatie Zwart 52a<br />
Nitro Rubbol ® 52a<br />
nitrogen 226b<br />
nitroglycerin<br />
accidents with 122a, 126b, 126c, 134a<br />
invention of 11<br />
Nobel’s development of dynamite 26a<br />
Nobel’s experiments with 122a, 126b<br />
Nitroglycerin AB see also Nitro Nobel AB<br />
founding history 11, 26a, 122a, 126c,<br />
133–134a<br />
merger history 14, 134b–134c, 144c–145a<br />
name change to Nitro Nobel 17, 26b, 122a<br />
product range of 134a, 134c<br />
Nitrolit 134c<br />
NK (Nederlandse Kunstzijdefabriek) see Enka<br />
Nobel, Alfred see also Nitroglycerin AB; Nobel<br />
Foundation; Nobel Prize<br />
and blasting gelatin 11, 26a, 126c, 134a<br />
death of 26b, 126c, 128b<br />
desire for peace 138d<br />
as entrepreneur 121, 126a, 126c,<br />
128a–128b, 133–134a<br />
founding of British Dynamite Co. 226a<br />
founding of Eka 150a<br />
interests in Bofors 126a–126b, 134b,<br />
138c–138d<br />
invention of blasting cap/detonator 11,<br />
122a, 126b<br />
invention of dynamite 11, 70i, 122a, 126b<br />
as inventor 26a, 126b–126c, 134a<br />
laboratory in San Remo 127<br />
origins 26a, 125–126a<br />
portrait of 124, 131<br />
private life of 128a–128b<br />
testament of 128b–128c, 129i, 130<br />
Nobel, Immanuel 26a, 126a<br />
Nobel, Ludwig 26a<br />
Nobel Chematur 122b<br />
Nobel Consumer Goods AB 145c<br />
Nobel Dynamite Trust 12, 26a, 128a<br />
Nobel Explosives Ltd. 225, 226a, 227<br />
Nobel Foundation 12, 26a–26b, 128c<br />
Nobel Industries AB see also Courtaulds<br />
Textiles plc<br />
acquisition of Berol AB 19, 122c<br />
acquisition of Bofors AB 122b, 134b<br />
acquisition of Crown Berger 19, 122c<br />
acquisition of Eka 122c, 154a<br />
acquisition of Sadolin & Holmblad 19,<br />
122c, 160b–160c, 176a<br />
Bofors scandal 26b, 122c, 140b–140c<br />
divestments 122c, 140c, 145c, 182<br />
founding and expansion 19, 122b–122c<br />
Gamlestaden financial crisis 19, 26b, 122c,<br />
182<br />
link with ICI 28c<br />
map of site locations 118<br />
merger history 23, 24c, 26a, 26c, 30, 114d,<br />
116c, 145b<br />
merger with Akzo 30, 123, 145c, 170a,<br />
176b, 251–252a<br />
Nobel Industries i Sverige AB 19, 176a<br />
Nobel Laureates 129i, 144b–144c, 145a, 180c,<br />
240b, 242c<br />
Nobel Prize 13, 26a–26b, 128c<br />
Nobel-Dynamite Trust Company Ltd. 226a<br />
Nobelite (explosive) 138i<br />
Nobilon 21, 110c, 254b<br />
Nol site (MoDo) 190b<br />
Nomosquito 186a<br />
Noordwijk 52b<br />
Norbio 20, 110b<br />
NorCasco 174b<br />
Nordbanken 122c, 145c, 170a, 182<br />
Nordensen, Harald 180b<br />
Nordisk Droge & Kemikalie A/S 19<br />
Nordsjö (Nordström & Sjögren) see also Sege<br />
site<br />
acquisition by Bayer 166c<br />
divestment by Bayer 170a<br />
employees 164<br />
environmental policies 20, 170b<br />
expansion after WW II 166b–166c<br />
founding history 13, 165–166a<br />
merger history 19, 30, 122b, 145b, 166c,<br />
170a<br />
paint deliveries 166a, 169<br />
production of Bindol ® 15<br />
production of paints 17, 166a–166c, 170b<br />
staff canteen 171<br />
Nordsjö Idé & Design stores 170b<br />
Nordsjö Tinova ® VX 166i<br />
Nordsjö ® (brand) 170a<br />
Nordsjö ® Farver 160b<br />
Nordsjö ® −Sadolin ® 170a<br />
Nordström, Axel 165, 166b<br />
Nordström, Olle 166c<br />
Nourical 74c<br />
Nourij, Jan 73<br />
Noury & Van der Lande see also under specific<br />
sites<br />
acquisition by Koninklijke Zwanenberg-<br />
Organon 17, 36b<br />
competition from Van Hasselt 92b<br />
diversifications 74c<br />
founding history 10, 73<br />
international expansion 15, 74b–74c, 76a<br />
merger history 30, 36a, 64c<br />
merger with Koninklijke Zwanenberg-<br />
Organon 76<br />
oil production 73<br />
production for paint industry 74a, 74b–74c<br />
production of citric acid 15, 74a<br />
production of peroxides 74b<br />
production of pesticides 76<br />
production of pharmaceuticals 74c<br />
takeover by Koninklijke Zwanenberg-<br />
Organon 17, 104d<br />
unsuccessful takeover bid for Organon 74c<br />
during WW I 74a<br />
Nourypharma 17, 74c, 76a<br />
Novadelox ® 74b<br />
Novartis 247b<br />
nuclear energy 236a–236c<br />
nuclear fission 236a–236c<br />
Nuplex Industries 20<br />
NuvaRing ® 20, 28b, 106b<br />
nylon<br />
invention of 208a, 232c, 235b–235c<br />
production after WW II 238a<br />
production by AKU 24a, 44b<br />
production by British Nylon Spinners 15,<br />
235b–235c<br />
production by Courtaulds 208c<br />
O<br />
Oberbruch site 34<br />
Oegstgeest 52b<br />
Ögren, J.F. 179<br />
oil embargo<br />
and plastics research 246c<br />
and synthetic fiber production 24a, 45c<br />
oil manufacturing 52c, 73, 74a, 95–96a, 96i<br />
Old English Sheepdog 240a, 241<br />
Oleochemicals Sdn Bhd 19<br />
Olins, Wally 38i<br />
Olsson, Mr. 184, 185<br />
OPEC 24a, 246c<br />
Oppau site (BASF) 228i<br />
oral contraceptives<br />
health issues 106b<br />
Organon and the production of 17, 18, 19,<br />
26c, 27, 28a, 106a–106b, 107<br />
resistance against 106a–106b<br />
Orgalutran ® 106b<br />
Organon see also Organon BioSciences; Oss<br />
site<br />
annual turnover 106c<br />
and Diosynth 18, 28b<br />
divestment of Teknika unit 20, 31, 106c<br />
founding history 14, 100, 101, 102a, 102i,<br />
104i<br />
international expansion 102b, 104a<br />
Jewish management 104a–104b<br />
merger history 16, 21, 30, 36a, 36b, 64c,<br />
76, 104c, 106c<br />
pilot plant 105<br />
production of anti-depressants 18, 20,<br />
106b–106c, 107<br />
production of hormonal products 14, 15,<br />
16, 17, 19, 102b, 104b–104c, 106b<br />
production of insulin 102a, 103, 104i<br />
production of oral contraceptives 17, 18,<br />
19, 26c, 27, 28a, 106a–106b, 107<br />
unsuccessful takeover by Noury & Van der<br />
Lande 74c<br />
during and after WW II 104a–104c, 104i<br />
Organon BioSciences<br />
acquisition by Schering-Plough 21,<br />
28c–29, 31, 106c, 110c, 254b<br />
founding history 21, 28c, 106c, 254b<br />
Organon Teknika 19, 20, 31, 106a, 106c<br />
Oss site (Organon) 106a<br />
outsourcing 46b<br />
Ovarnon ® 102b<br />
Overschie site (Kortman & Schulte) 80c<br />
Ovestin ® 17<br />
Ovo-Diphterin ® 110a<br />
Ovowop ® 102b<br />
Oxford School of Pathology 240c<br />
Oy Casco 174c<br />
ozone layer 246b<br />
P<br />
Packaging Coatings 212b, 258i<br />
paint deliveries 166a, 169, 219<br />
paint factory, interior 192<br />
paint mixing systems 54c, 166c–166d<br />
Painters’ Museum (Sikkens) 20, 48, 56i<br />
paints see also aircraft coatings; marine<br />
coatings; powder coatings<br />
definition of 54i<br />
manual preparation of 156, 157–158a<br />
production by Holzapfel Limited 12<br />
production by ICI 247b<br />
production by Nordsjö 17, 166a–166c,<br />
170b<br />
production by Walpamur 194c–194d<br />
Paints division (Crown) 196b<br />
Palme, Olof 140b–140c, 187<br />
Palmer, Thomas 194d<br />
Paludrine ® 16, 235a, 239, 240b–240c<br />
Paper Chemicals division (Eka) 152c<br />
paper industry 76i, 152a–152c, 154a–154b<br />
paraquat 244b<br />
Parkes, Alexander 230c<br />
Parksine 230c<br />
Passione d’amore (film) 60<br />
patents<br />
for Eau de Cologne 88i<br />
German 228i<br />
German, anti-malarial drugs 240b<br />
of Hartogs 42i<br />
of Mond 228c, 230i<br />
of Nobel 11, 122a, 126b, 126c<br />
for Novadelox ® 74b<br />
for polythene 234a<br />
for Remeron ® 28b, 106b–106c<br />
swine fever vaccine 110c<br />
the Twaron ® −Kevlar ® dispute 12, 24a–24b,
46a<br />
for viscose 12, 44i, 202c, 204a–204c, 204b<br />
Paton, John 234a<br />
Pavulon ® 18<br />
peanuts 98i<br />
peat 74i<br />
PEEK (polyether ether ketene) 246c–247a<br />
Peierls, Rudolf 236b, 236c<br />
Penaat, Johannes (zoon van Willem) 50b<br />
Penaat, Willem 49<br />
Penaat, Willem Albert (zoon van Willem) 50b<br />
penicillin 15, 240c<br />
Penser, Erik<br />
acquisition of Bofors 19, 26b<br />
acquisition of KemaNobel 19, 122b<br />
creation of Nobel Industries 19, 145b–145c<br />
Gamlestaden financial crisis 122c, 145c,<br />
170a<br />
weapons deal scandal 26b<br />
Perciwall, Ewert 174c<br />
Performance Coatings business 254c, 258i<br />
Perkin, W.H. 226a<br />
Perkin, William Henry 238b<br />
Permoglaze ® 196c, 197<br />
Pernaemon ® 14, 102b<br />
peroxides 74b, 76i, 92b, 92c<br />
Perrin, Michael Wilcox 232b, 234a, 236c<br />
Perspex ® 15, 232a, 235a–235b<br />
PES (polyether sulphone) 246c<br />
pesticides 68c, 76, 242c, 244a<br />
PET (polyethylene terephthalate) 246c<br />
Petitot, Jean 160i<br />
Petrie, Charles 216a<br />
petrochemicals 122a, 145b<br />
Pharma businesses<br />
acquisition by Schering-Plough 28c<br />
creation of 26c, 252c<br />
divestment of Chefaro 106c<br />
reproductive medicine market 28b<br />
Pharma division (Akzo)<br />
Chefaro part of 18, 20, 92c<br />
financial support for Fibers division 46b<br />
reproductive medicine market 24c<br />
pharmaceutical industry 242b<br />
Pharmaceuticals division (ICI) 20, 242b, 247a,<br />
247b<br />
Pharmaceuticals division (KZO) 36c, 106a<br />
Philips Dunbar 18<br />
Phillips Petroleum 234c<br />
Phoenicians 68i<br />
Phosphores Chemicals 21<br />
Physical Chemistry Group (ICI) 232b<br />
pigments 74a–74c, 156, 158a, 158c<br />
Pinchin Johnson and Associates Ltd. (PJA) 10,<br />
17, 210a, 216b–216c, 219<br />
Pinorin Japan (laquer) 50a–50b<br />
PJA (Pinchin Johnson and Associates Ltd.) 10,<br />
17, 210a, 216b–216c, 219<br />
plastics 16, 145a–145b, 232a–232b, 246b–246c<br />
see also polythene<br />
Plastics division (ICI) 15, 232a<br />
Plexiglas ® 235a<br />
Pliny the Elder 242c<br />
Poland 46b<br />
pollution<br />
BT Kemi scandal 18, 160a–160b<br />
reduction of 224, 246b<br />
of waste water 154a<br />
Polution Abatement Technology Award 246b<br />
polychloroprene (synthetic rubber) 145a–145b<br />
polyester 24a, 235c–236a, 237<br />
polyether ether ketene (PEEK) 246c–247a<br />
polyether sulphone (PES) 246c<br />
polyethylene terephthalate (PET) 246c<br />
Polymer Chemicals 258i<br />
polythene<br />
improvements to production process<br />
234a, 234c–235a<br />
invention history 15, 232a–232b, 233<br />
production of 234b–234c, 238a<br />
use in radar 234b–234c<br />
polyurethane foam 238a–238b<br />
Popular Science (magazine) 246b<br />
Porcillis ® AD Begonia 110c<br />
Porter Paints 212b, 220a<br />
potash (potassium carbonate) 15, 114b<br />
potassium carbonate (potash) 15, 114b<br />
potassium nitrate 15, 144b<br />
Potter, Charles 194b<br />
Potter, Harold 194b<br />
Potter & Co. 194b–194c<br />
Potts, Ralph H. 114a<br />
Poultry Biologicals 18, 110a<br />
powder coatings 20, 216c, 220a, 221, 253, 259<br />
Powder Coatings (<strong>AkzoNobel</strong>) 254c<br />
power-looms 202a<br />
PPG Industries 212b<br />
Predictor ® 18<br />
Premier Foods 247b<br />
Printing Inks 20<br />
Procion ® 17, 238c<br />
proguanil see Paludrine ®<br />
propranol 242c<br />
Pruteen 244c, 246a, 246c<br />
Pulp & Paper Chemicals 20, 154a–154b, 176i,<br />
258i, 260<br />
pulp industry 76i, 152a–152c, 154a–154b, 186b<br />
Pure Chemicals 36i<br />
Puregon ® 20, 28b, 106b<br />
PVC 16, 145a<br />
PVS Chemicals (Belgium) 64c<br />
Q<br />
QDHS technology 166i<br />
Queen’s Award for Technological Achievement<br />
196c<br />
Quick-Drying High Solid (QDHS) technology<br />
166i<br />
quinine 240b<br />
Quorn ® 246a, 247b<br />
R<br />
radar, centimetric 234b–234c<br />
radiation, nuclear 236b<br />
Randall, J.T. 234b<br />
Rank Hovis McDougall 246a<br />
Rattee, Ian 238c<br />
Raventos, James 243<br />
rayon see also viscose<br />
collapse of market for rayon 44b–45a<br />
growth of production of 204c–205a<br />
invention history 202c, 204a<br />
production of 36a–36b, 204c–205b, 208c<br />
Recter 19, 98a<br />
Red Hand Compositions Company 216c, 219<br />
red propeller brand 216a<br />
Reed, Albert E. 196a<br />
Reed Elsevier PLC see Reed International<br />
P.L.C.<br />
Reed International P.L.C. (later Reed Elsevier<br />
PLC) 194a, 196a<br />
refrigeration 238a–238b<br />
Remeron ® 20, 28b, 106b–106c, 107<br />
rennet 91–92a, 92c<br />
Research Council (ICI) 230a<br />
Resicoat ® 56a<br />
Resins 21<br />
Richter, J.H.M. 110a<br />
Ridley, Harold 235b<br />
Riebensahm, Walther 104i<br />
Rietveld, Gerrit 58i, 59<br />
Rijksmuseum Amsterdam 256<br />
Ripplewood Holding LLC 21<br />
Robert Ingham Clark 216c<br />
Roentgen, Wilhelm 236b<br />
Roermond 74b<br />
Roget & Gallet 88i<br />
Rohm and Haas Company 235a<br />
Roosevelt, Franklin Delano 208b, 236c<br />
Roosvicee ® 88<br />
Rose, Frank 239, 240a, 240b–240c<br />
Rotterdam site (Boldoot) 86c<br />
Rotterdam site (Ketjen) 64b<br />
Rotterdam site (Kortman & Schulte) 79<br />
Rotterdam sites (KZK) 68c, 70b<br />
Rotterdam sites (Van Hasselt) 91, 92a<br />
Rowland, Sherwood 246b<br />
Royal Society of Arts 246b<br />
rubber, synthetic (polychloroprene) 145a–145b<br />
Rubbol ® A–Z ® 15, 50d<br />
Rubbol ® Japanlak sneldrogend 14, 50d, 51<br />
Rudbeck, Olaf 26a<br />
Runcorn site (ICI) 245, 247b<br />
Rutherford, Ernest 236b<br />
RX ® Glue 15, 174b<br />
S<br />
SABIC 247b<br />
saccharin 64b<br />
Sadolin, Gunnar A. 13, 158b<br />
Sadolin, Knud 158b<br />
Sadolin & Holmblad A/S see also Copenhagen<br />
site (Sadolin & Holmblad)<br />
acquisition by Nobel Industries 19, 122c,<br />
145c, 160b–160c, 176a<br />
BT Kemi scandal 18, 160a–160b<br />
cinema commercial 162<br />
environmental policies 160b<br />
expansion after WW II 158c, 160a<br />
founding history 13, 158b<br />
management team of 159<br />
merger history 30, 158c<br />
product range of 158c, 160a<br />
production of enamel 158c<br />
production of paints 14<br />
production plant 163<br />
Sadolin Farveland ® 18, 160a<br />
Sadolin ® (brand) 56a, 160c<br />
Sadolin ® Wholesale Center 160b<br />
Sadolins Farver 13, 158b<br />
safety regulations 76<br />
Saffil 247b<br />
Sail Hammer 114a<br />
Salata ® 15, 96d<br />
salt<br />
harvesting of 68i<br />
in Holland 12, 14, 67<br />
production of 66, 70a–70b<br />
storage 70i<br />
use of 70i<br />
Salt Chemicals division (KZO) 36c, 106a<br />
“Salt Convention” 14<br />
Salt division (Akzo) 20, 70b<br />
Salt Union 247b<br />
saltpeter see potassium nitrate; sodium nitrate<br />
(Chilean saltpeter)<br />
Samuel Courtauld & Co see also Courtaulds<br />
abortive bid by ICI 17, 210a–210b, 236a<br />
acquisition of Cellon 17, 210a, 216b<br />
acquisition of International Paints 18,<br />
210a, 216b–216c<br />
acquisition of PJA 17<br />
collapse of market for silk 11, 202b<br />
diversification and expansion 208c, 210a<br />
expansion and growth 202a–202b,<br />
204b–204c<br />
financial losses and recovery 205b–205c<br />
focus on British market 210b<br />
founding history 10, 202a<br />
job losses 210c<br />
273
274<br />
listing on stock exchange 13<br />
loss of AVC 15, 208a–208b, 210b<br />
production of nylon 208c<br />
production of viscose 13, 44i, 204a–204c<br />
reorganizations 18, 202c, 210c<br />
split into two companies 210c<br />
synthetic fibers market crisis 210b–210c<br />
during and after WW II 208a–208b<br />
San Remo site (Nobel) 127<br />
Sandtex ® 196c, 197<br />
Sassenheim site (Sikkens) see also Sikkens<br />
Painters’ Museum<br />
Car Refinishes Instruction Center at 18, 54c<br />
hoarding advertisement 53<br />
installation of new oil mill 52c<br />
move to new buildings at 15, 52a–52b<br />
visit of Churchill to 53<br />
“Savon de l’Exposition” 12, 180a<br />
Scabicidol 74c<br />
Schering-Plough<br />
acquisition of Organon BioSciences 21,<br />
28c–29, 106c, 110c, 254b<br />
acquisition of Pharma businesses 28c<br />
Schnitger, F. 214<br />
Schönox 176a<br />
Schröder House 59<br />
Schulte, Herman 79<br />
Schweppes 246a<br />
Scola, Ettore 58i, 60<br />
Securum 19, 123, 145c<br />
Sege site (Nordsjö) 16, 166b–166c, 166d, 170a<br />
Self-Polishing Copolymer (SPC) 220i<br />
SembCorp 247b<br />
Senate Foreign Relations Committee 208b<br />
“Shantung School” 16, 180c, 183<br />
shipping, environmental inpact of 220i<br />
Shirley Institute 236a<br />
Sicova 52c<br />
Sikkens, Geert Willem 49<br />
Sikkens, Wiert Willemszoon 35, 49<br />
Sikkens Celluloselakfabriek 52a<br />
Sikkens Group see also G.W. Sikkens & Co.;<br />
under specific sites<br />
founding history 52c<br />
listing on stock exchange 16, 52c<br />
marketing strategy for car refinishes<br />
systems 56a<br />
merger history 23, 30, 36c<br />
paints for car refinishing systems 17, 54a,<br />
55<br />
part of Coatings businesses 54a<br />
part of Coatings division (KZO) 36c, 54a<br />
Sikkens Painters’ Museum 20, 48, 56i<br />
Sikkens Prize 17, 58i, 59–61<br />
Sikkens Prize Foundation 58i<br />
Sikkens ® Car Color Selector 54a<br />
Sikkens ® coatings 256<br />
Silent Spring 246a<br />
Silfversparre, Arent 138d, 140a<br />
silk 11, 201–202b, 235c<br />
Silveroid 228c<br />
Sinaspril ® 88<br />
Sjögren, Albin 164, 165<br />
Sjögren, Sven 166c<br />
Smit, Piet 64a<br />
Smith and Walton 196a<br />
Smitt, Johan Wilhelm 126c<br />
smokeless gunpowder 126b, 126c, 134a<br />
Smooth Velvet ® 196c<br />
Sneek site (Sikkens) 57<br />
Snia Viscosa 210b<br />
SOAB (Svenska Oljeslageri Aktiebolaget) 190b<br />
soaps, production of<br />
by Armour & Co. 12, 16, 17, 114a–114b<br />
by Barnängen 180a–180b, 182<br />
by Boldoot 13, 86<br />
by Consumer Products division (Akzo) 88<br />
by Dial Corporation 19, 114d<br />
by Kortman & Schulte 12, 80b–80d<br />
at Widness 224<br />
Sobrero, Ascanio 11, 126b<br />
social responsibility 28b<br />
Société Central de Dynamite 12, 128a<br />
soda<br />
production of 17, 68c, 79–80a<br />
use of 80i<br />
soda ash 226a, 230i<br />
Söderblom, Åke 180b<br />
Södertälje site (Berol) 15, 186a<br />
sodium carbonate see soda; soda ash<br />
sodium chloride see salt<br />
sodium hydroxide (lye) 12, 150b, 152a<br />
sodium nitrate (Chilean saltpeter) 80a<br />
sodium perborate 152a<br />
Sodium silicate (water glass) 14, 52c<br />
Soesbeek, Klaas 22, 45c<br />
Softsand ® 196c<br />
SOG 247b<br />
Sohlmann, Ragnar 128b<br />
Solo ® Gloss 196b<br />
Solutia 92c<br />
Solvay Company 114d<br />
Solvay process 226a, 230i<br />
Sovpren 145a<br />
SPC (Self Polishing Copolymer) 220i<br />
Specialty Chemicals business 258i<br />
Spitfire (fighter plane) 235a<br />
spray gun 50d<br />
Standard Oil of Indiana 234c<br />
Statsföretag AB 190c<br />
Staudiger, Hermann 232a, 232c<br />
Stauffer, Hans (nephew of John Sr.) 116a<br />
Stauffer, John Jr. (son of John Sr.) 116a, 116b<br />
Stauffer, John Sr. 114d<br />
Stauffer Chemical Co.<br />
acquisition by Akzo America 19, 114d, 116a<br />
acquisition by ICI 247b<br />
founding history 12, 113, 114d<br />
listing on stock exchange 116a<br />
merger history 30<br />
production of commodity chemicals 114d<br />
Stearn, C.H. 204a, 205i<br />
Steigenberger, Louis 194a<br />
Stenungsund site (Akzo Nobel) 116c, 116d,<br />
122a, 145b<br />
Stenungsund site (Berol/MoDo)<br />
amine plant at 188<br />
headquarters of MoDoKemi 18<br />
inauguration by King Gustav VI Adolf, 189<br />
Olof Palme at 187<br />
petrochemical ethylene plant 17, 190b<br />
Stepan Co. 114c<br />
Stephen, W.E. 238c<br />
Stephenson, John 242b<br />
Sterisol AB 180c<br />
Sternfeld bakery 72<br />
steroids 17, 18, 104c<br />
Stockholm site (Barnängen) 180a<br />
Stockholm site (Casco) 172, 174c, 174i, 175<br />
Stockholm site (Superfosfat) 120, 144a<br />
Stockholms Benmjölsfabrik 122b, 145b<br />
Stockholms Superfosfat Fabriks AB see also<br />
Fosfatbolaget AB; under specific sites<br />
acquisition of Barnängen 180c<br />
acquisition of Casco 174c<br />
acquisition of Liljeholmens Stearinfabrik<br />
16, 145b<br />
acquisition of Nitroglycerin AB 14,<br />
144c–145a<br />
expansion 144c<br />
focus on petrochemicals 122a, 145b<br />
founding history 11, 143<br />
library of 144i<br />
merger history 30, 122a, 134b–134c,<br />
145b–145c<br />
name change to Fosfotbolaget AB 17, 122a<br />
production of carbide 15<br />
production of plastics 16, 145a–145b<br />
Stora Kemi 19<br />
Stora Kopparberg 122a, 145b<br />
Suckling, Charles 242a, 243<br />
sulfa drugs 240b<br />
Sulfamethazine 240b<br />
sulfur dioxide 16, 64b<br />
sulfuric acid<br />
emissions of 64i<br />
history and use of 64i<br />
production of 12, 15, 63, 64a–64b, 64c,<br />
144a<br />
Super Lepus ® 140b<br />
superphosphate 15, 143–144b, 145a, 174c<br />
Surface Chemistry business 116d, 190c, 258i<br />
surfactants 26c, 116b–116d, 186b, 186i<br />
Surfactants 190c<br />
Surfactants America 116c<br />
Sustainability Report 261a–261b<br />
Sutherland, E.J. 74b<br />
Svedberg, Theodor (The) 145a, 180c<br />
Svedopren 16, 145a<br />
Svenska Oljeslageri Aktiebolaget (SOAB) 190b<br />
Sveriges Riksbank 128c<br />
Sveriges Riksbank Prize in Economic Sciences<br />
128c<br />
Swallow, John 232b<br />
Swan, Sir Joseph 202c<br />
Swedish Royal Academy of Sciences 126c<br />
Swedish State Railway 126c<br />
Syngenta 247b<br />
Synthese 16, 52c<br />
synthetic fibers market 24a, 44b–45a, 46a–46b,<br />
204c–205a, 210b–210c see also under spe-<br />
cific fiber brand names; under specific fibers<br />
T<br />
T. Duyvis Jansz. (firm) see Duyvis<br />
Tacryl 145b<br />
Talens 54a<br />
tallow 80b, 114a<br />
Tausk, Marius 102b, 104a<br />
Taylor I, P.A. 202a<br />
TDI (toluylene di-isocyanate) 238b<br />
Teesside site (ICI) 244i, 247b<br />
Teknika unit (Organon) 19, 20, 31, 106c<br />
Templeman, W.G. 244a<br />
Tencel ® 212a<br />
Tennant, Sir Charles 226a<br />
Tenormin ® 247a<br />
tensides see surfactants<br />
Terlenka ® 44a<br />
Terra Industries 247b<br />
Terylene ®<br />
invention of 15, 235c–236a<br />
production of 15, 236c, 237, 238a<br />
Tetley, Henry Greenwood 202b–202c,<br />
204a–204b, 205i, 209<br />
Teuge site (Noury & Van der Lande) 73<br />
textile dyes 157–158a<br />
Textillim ® 174b<br />
"The Directorate of Tube Alloys" 236c<br />
'the pill' see oral contraceptives<br />
Thermodynamics Laboratory (Amsterdam) 232b<br />
Thomas, Edouard 207<br />
Thyranon ® 15<br />
Timbuktu 68i<br />
Tinova ® VX 166i<br />
Tintorama ® 17, 166c–166d<br />
titanium dioxide 74c, 154a<br />
TOF-Guard ® 20<br />
toluylenedi-isocyanate (TDI) 238b<br />
Tolvon ® 18, 106b<br />
Tonicum Noury ® 74c<br />
Topham, F. 204b, 205i, 207<br />
trade unions 92c<br />
trademarks 180a see also logos
Tricel ® 210a<br />
Tromp, Cees 56i<br />
Twaron ® 19, 24a–24b, 46a<br />
Twickel Estate 67<br />
U<br />
UKAEA (United Kingdom Atomic Energy<br />
Authority) 236c<br />
Unilever 18, 20, 101, 247c<br />
Union Carbide 234a<br />
United Alkali 225, 226a, 226c, 227<br />
United Kingdom Atomic Energy Authority<br />
(UKAEA) 236c<br />
University of Leiden 232a<br />
uranium 15, 236b–236c<br />
Urban, Johan 204a<br />
Usselo site (KNZ) 68c<br />
V<br />
vaccines, veterinary 20, 110a–110c<br />
Vademecum (mouthwash) 12, 180b<br />
Valhallahuset 165, 167<br />
Valspar ® paints 52c<br />
Van den Bos, Adolf Gustaaf 22<br />
Van der Lande, Gerrit 73<br />
Van der Lande, Johannes Christian Lebuïnus<br />
(Jan) 74a–74b<br />
Van der Veer (varnish boiler) 50i<br />
Van Doesburg, Theo 58i<br />
Van Hasselt (firm) see also under specific sites<br />
acquisition by Chefaro 92b<br />
and agricultural prize 11, 92a, 93<br />
competition from Noury & Van der Lande<br />
92b<br />
diversifications 92b–92c<br />
founding history 91<br />
merger history 16, 17, 30<br />
part of Chemicals division (Akzo) 18, 92c<br />
production of fungicides 92c<br />
production of peroxides 92b, 92c<br />
production of rennet 91–92a, 92c<br />
production of rubber chemicals 92b, 92c,<br />
93<br />
Van Hasselt, Johan (son of Willem) 90, 92a,<br />
92b, 92i<br />
Van Hasselt, Willem 91<br />
Van Kaathoven, Hans 104i<br />
Van Lede, Cees 22, 252b–252c, 254a<br />
Van Oss, Jacques 100, 102i<br />
Van Zwanenberg, Salomon (Saal) 100, 102a,<br />
102b, 102i, 104a–104b<br />
Vapona ® 88<br />
varnish 50i<br />
Veracel pulp mill 260<br />
Verbruggen, Elly 111<br />
Vereinigte Glanzstoff-Fabriken see also AKU<br />
founding history 12, 204a<br />
merger history 14, 24a, 30, 36a<br />
merger with Enka 18, 36a–36b, 42b, 44b<br />
Verhulst, Hans 58<br />
Vernie of Germany 110a<br />
veterinary vaccines 19, 110a, 110c<br />
Victoria, Queen 202c<br />
Victrex 247b<br />
Vinterviken site (Nitroglycerin AB) 133, 134b<br />
Virgil 242c<br />
Vis, Jacob Pieter 67–68a<br />
viscose see also rayon<br />
collapse of market for 44b<br />
invention history 12, 44i, 205i<br />
patents for 12, 44i, 202c, 204a–204c<br />
production by AKU 24a<br />
production by Courtaulds 13, 44i,<br />
204a–204b<br />
production by Enka 13, 16, 41, 44a<br />
production by Enka-Glanzstoff 46b<br />
production history 44i<br />
production process 44i<br />
Viscose Spinning Syndicate 205i, 207<br />
vitriol see sulfuric acid<br />
VOCs (volatile organic compounds) 166i<br />
volatile organic compounds (VOCs) 166i<br />
Vulnax 36a<br />
W<br />
Wagner-Jauregg, Julius 240b<br />
Wallenberg (banking family) 122a, 122b, 145b<br />
Wallenberg, Marcus 174a<br />
Wallpaper Manufacturers Ltd. see Walpamur<br />
(Wallpaper Manufacturers Ltd.)<br />
Walpamur (Wallpaper Manufacturers Ltd.) 12,<br />
13, 14, 194b–194d, 194i see also Walpamur<br />
Company Ltd. (WPM)<br />
Walpamur Company Ltd. (WPM) see also<br />
Crown Decorative Products<br />
acquisition by Reed International P.L.C.<br />
196a<br />
founding history 14, 196a<br />
name change to Crown Decorative<br />
Products 18, 196b<br />
Walpamur ® 16, 194c–194d, 195<br />
Walton, Frederick 194d<br />
Warburg émigrés 206i<br />
Ward White Group 196c<br />
washing soda see soda; soda ash<br />
Water Board (Sweden) 152a<br />
water glass (sodium silicate) 14, 52c<br />
Watson-Watt, Sir Robert 234b<br />
weapons deal scandal 19, 26b, 122c,<br />
140b–140c<br />
weapons industry see armaments industry<br />
Weber, Orlando F. 226b, 226c<br />
weed killers 16, 76, 244a–244b<br />
Werneke & Mulheran 28a<br />
Westerdahl, N.E. 180b<br />
Whinfield, J.R. (Rex) 235c, 237<br />
White Flyer 114a<br />
Widnes site (ICI) 224<br />
Wijers, Hans 6, 254a–254b, 261a–261b<br />
Wilco 106a<br />
Wilhelmina, Queen 50b<br />
William I, King 63<br />
Williams, Edmond 234a<br />
Williams Holdings 19, 196c<br />
Wilton site (ICI) 236a<br />
wind turbine 255<br />
Winnington site (ICI) 232b<br />
Wisdom of the Body, The (Cannon) 242b–242c<br />
Wishnick Tumpeer Chemical Company 116d<br />
Witco 116d<br />
Witt, Sir Robert Clermont 206i<br />
woad (Isatus tinctoria) 158a<br />
Wolff Olins 19, 38i<br />
Woodley, F. 207<br />
Woodwash ® 196c<br />
woodworking industry 174a–174b, 176a–176b<br />
Woolworth chain 196c<br />
World Health Organization 244c<br />
X<br />
Xylee 44b<br />
Y<br />
Yardley cosmetics 88<br />
yarn factory 213<br />
Yggdrasil AB 145c<br />
Z<br />
Zeneca 20, 247b<br />
Ziegler, Karl 234c<br />
Ziegler process 234c–235a<br />
Zilverzeep 12, 80b<br />
Zoladex ® 247a<br />
Zwanenberg & Co. see also Koninklijke<br />
Zwanenberg-Organon<br />
founding history 12, 101<br />
merger history 14, 16, 18, 30, 36a, 36b,<br />
101, 104c<br />
Zwanenberg-Organon see Koninklijke<br />
Zwanenberg-Organon<br />
275
276
Credits<br />
The vast majority of the photographs and illustrations included in this book are historical.<br />
As <strong>AkzoNobel</strong> has to a significant degree evolved through acquisitions and divestments,<br />
the information available about these photographs and illustrations is in many cases either not<br />
complete or non-existent. For this reason, the sources accessed to obtain the photographs<br />
and illustrations included in Tomorrow’s <strong>Answers</strong> <strong>Today</strong> are listed here.<br />
If holders of rights could be identified and permissions obtained, the name of the holder is<br />
listed instead of the source directly accessed. If known, the photographer or maker of the<br />
illustration is listed in italics below the source or holder of rights.<br />
Agis, Maurice (© c/o Pictoright Amsterdam 2008) 59<br />
Airbus Deutschland<br />
M. Lindner 29<br />
Akzo Nobel AB (Communications, Stockholm) 120, 132, 135,<br />
142, 146, 147, 172, 175, 177, 178, 181L, 183<br />
Akzo Nobel Car Refinishes (Sassenheim)<br />
Studio Van der Horst 55<br />
Akzo Nobel Chemicals Inc. (Commercial Services, Chicago) 114<br />
Akzo Nobel Deco A/S (Sales, Copenhagen) 156, 159, 161, 162,<br />
163<br />
Akzo Nobel Decorative Coatings AB (Communications,<br />
Malmö) 164, 167, 168, 169, 171, 255<br />
Akzo Nobel N.V. (Corporate Archive, Arnhem) 22, 40, 43L, 47,<br />
62, 66, 72, 75, 77, 82, 84, 85, 87, 90, 93, 117, 252, 261<br />
Aviodrome Luchtfotografie, Lelystad 37<br />
Hoedemakers, Paul 69<br />
Leemans, Ad 65<br />
Puffelen Jr., P.J. van 24<br />
Versnel, Jan 39<br />
VGF Photoarchive 34<br />
Akzo Nobel Powder Coatings Ltd (Communications, Felling)<br />
221R<br />
Akzo Nobel Surface Chemistry AB (R&D, Stenungsund)<br />
184, 187, 188, 189, 191<br />
Akzo Nobel UK Ltd (Company Secretarial, London) 200, 2003L,<br />
2003R, 207, 209L, 209R, 210, 211<br />
<strong>AkzoNobel</strong> (formerly ICI Corporate Communications, London)<br />
224, 227, 229, 231, 233L, 233R, 237, 239, 245L, 245R, 247L, 247R<br />
<strong>AkzoNobel</strong> (formerly ICI Communications, Slough) 243<br />
<strong>AkzoNobel</strong> Corporate Communications 6, 71<br />
Alfred Nobel Foundation (Stockholm) 124, 127, 130, 131<br />
ANP foto (The Hague) 43R<br />
Bofors (Corporate Archive, Karlskoga) 136, 139, 141T, 141B<br />
Collectie Gemeentearchief (Rotterdam) 78<br />
Crown Paints (Marketing, Darwen) 192, 195L, 195R<br />
Eka Chemicals (Communications, Göteborg) 148, 151, 153, 155<br />
Eran Oppenheimer Foto 258<br />
Hema (Amsterdam) 61<br />
International Paint Ltd (Communications/ Company<br />
Secretarial, London) 214, 217, 218, 219, 221L<br />
International Protective Coatings (Communications, London)<br />
257<br />
Intervet International (Boxmeer) 108, 111L, 111R,<br />
Jones, Peter 59<br />
Judd, Donald (Art© Judd Foundation. Licensed by VAGA, NY /<br />
Pictoright Amsterdam 2008) 61<br />
Lohse, Richard Paul (© c/o Pictoright Amsterdam, 2008) 60<br />
N.V. Organon (Oss) 29, 100, 103, 105, 107T, 107B<br />
Pepsi & Co (Utrecht) 94, 97, 99<br />
REpower Systems A.G. (Hamburg) 257<br />
Rietveld, Gerrit (© c/o Pictoright Amsterdam 2008) 59<br />
Sara Lee (Utrecht) 81<br />
Scola, Ettore 60<br />
Sikkens (Trade, Sassenheim)<br />
Julius van Dijk 57<br />
Sikkens Foundation (Sassenheim) 59, 60, 61<br />
Sikkens Painters’ Museum (Sassenheim) 48, 51, 53B, 53T<br />
Studio Van der Horst 58<br />
Studio Toivo Steen 261<br />
277
278
Produced by <strong>AkzoNobel</strong> Corporate Communications<br />
Editorial Board<br />
John McLaren – Director of Corporate Communications (<strong>AkzoNobel</strong>)<br />
Peter de Haan – Head of Internal Communications (<strong>AkzoNobel</strong>)<br />
Berry Oonk – Head of Corporate Branding (<strong>AkzoNobel</strong>)<br />
Editor Jonathan Steffen, The Corporate Story Ltd, Woking, UK<br />
Assistant Editors Ian Cressie (<strong>AkzoNobel</strong>), David Lichtneker (<strong>AkzoNobel</strong>)<br />
Indexing ISB&Index, Stitswerd, Netherlands<br />
Design Manager Pepe Vargas (<strong>AkzoNobel</strong>)<br />
Design Solar Initiative, Amsterdam, Netherlands<br />
Lithography and printing Drukkerij Tesink BV, Zutphen, Netherlands<br />
279
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