Rain

Rain

max temp: 4°C

min temp: -1°C

Search

Will jobs be lost at Stowmarket paint factories as PPG pursues buyout of AkzoNobel?

PUBLISHED: 10:13 01 May 2017 | UPDATED: 10:13 01 May 2017

Signs for the PPG and AkzoNobel paint factories, Stowmarket. Picture: MATT REASON

Signs for the PPG and AkzoNobel paint factories, Stowmarket. Picture: MATT REASON

Archant

Concerns that paint factory jobs are at risk at two of Stowmarket’s largest employers have been raised, as one of the businesses looks at buying out the other.

Entrance to the PPG paint factory, Stowmarket. Picture: MATT REASON Entrance to the PPG paint factory, Stowmarket. Picture: MATT REASON

American chemicals giant PPG, owners of the Stowmarket paint factory which makes automotive paints, are looking to buy out Dutch-owned AkzoNobel, owners of the neighbouring factory known for making Dulux paints.

The two companies both sit on the former ICI paint factory, and together are one of central Suffolk’s largest industries.

Concerns have been raised that a merger between the two would lead to job losses in Stowmarket, with PPG refusing to guarantee jobs in AkzoNobel’s European paint factories.

PPG have made a third and final “friendly” offer to the board of AkzoNobel, with the previous two offers rebuffed, partly on the grounds that jobs would be put at risk.

Nick Gowrley, Mid Suffolk District Council leader and councillor for the town said: “We fully expect the current offer to be rejected again.”

He said that if there was a takeover, the council will act to try and ensure that jobs are maintained.

There are concerns that even if the offer is turned down PPG will pursue a “hostile” takeover bid, with many of AkzoNobel’s shareholders piling pressure on the company to accept the offer from PPG.

Representatives of the employees of Dutch-based AkzoNobel stated the PPG offer contains “significant uncertainties and risks” to employees.

In PPG’s latest offer, chairman Michael McGarry said they would create “extraordinary value and benefits for all of AkzoNobel’s stakeholders”.

Last year PPG announced plans for 1,700 job cuts worldwide and has previously made cuts when acquiring other businesses.

Stowmarket Town Council clerk David Blackburn said the council would be concerned if the merger led to job losses in the town.

“We would hope that both existing levels of employment are kept as they are and every effort is made to invest in the business,” he said. “We would hope that there is not any asset stripping or less employment as a result.”

PPG have publicly committed to continuing with the production of Dulux if they buy out AkzoNobel. When asked by this newspaper, they made no comment on the security of Stowmarket’s jobs.

The Harvest Centre, home of Brandon Full Gospel Church, held its Christmas meal on Saturday evening and this year invited people who had made a difference in the community.

Snow-lovers in Suffolk and Essex took full advantage of today’s weather by getting outside to enjoy the white stuff despite plummeting temperatures.

A woman arrested on suspicion of causing death by careless driving when under the influence of drink or drugs has been released under investigation.

Kesgrave High School will be closed tomorrow after a major power failure.

A woman was raped in a car in Lowestoft yesterday in what police have described as a “despicable attack”.

Ipswich Town Hall will be 150 years old in January. John Norman looks at its story – one rarely dull.

Headteachers face an “impossible” task of deciding whether to close their school due to snow and fear looking “foolish” later in the day if forecasts prove to be inaccurate, education leaders say.

Most read

Eating Out in the Broads

cover

Click here to view
the Eating Out
supplement

View

Visit the Broads

cover

Click here to view
the Visit the Broads
supplement

View

London Boat Show 2018

cover

Click here to view
London Boat
Show supplement

View

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24