AkzoNobel sets standard in consumer electronics with sustainable and innovative coating solutions

Maximilien Schréder, Commercial director of the Global Consumer Electronics Coatings and Automotive and Refinish Coatings North Asia, AkzoNobel

Could you provide insights into the competitive landscape of the consumer electronics market and how AkzoNobel differentiates itself?

We began our operations for consumer electronics business in Vietnam in 2010, specifically to support Samsung's expanding presence in the country. This exemplifies our responsiveness to client needs and our ability to manage a robust network of applicators - ensuring colour, quality, and consistency across multiple suppliers for a single original equipment manufacturer (OEM).

We distinguish ourselves through our advanced coating technologies that offer distinctive functionalities and aesthetics, such as metallic effects and tactile sensations, making touch surfaces feel softer, for instance.

Additionally, our coatings are formulated to be highly durable and resistant to stains, catering to a broad range of substrates - even those with higher recycled content that may otherwise have a less appealing look. With proper application method, our solutions can effectively mask these concerns, presenting a visually appealing product without sacrificing environmental friendliness.

Furthermore, AkzoNobel is at the forefront of sustainable innovation. We are rolling out waterborne products with significantly reduced carbon footprints compared to traditional solvent-based options. We continue to develop technologies that can help to improve the appearance of products made from recycled plastics, so we can enable consumers to enjoy high-quality finishes while supporting environmental initiatives.

Durability remains a cornerstone of our approach. By enhancing the lifespan of products, we contribute positively to the environment by extending the lifecycle of consumer electronics.

Given AkzoNobel's diverse client base in the consumer electronics sector, how does the company navigate potential conflicts of interest while maintaining client confidentiality?

Indeed, we operate in a dynamic industry where the confidentiality of product launches is paramount, yet the sensitivity of information diminishes over a product's lifecycle. To mitigate conflict of interest, our approach is tailored. We address each case and client distinctly. While proprietary design elements remain client-specific, basic technological innovations like our waterborne solutions are offered market-wide. We focus on adaptability and providing a universal benefit to all clients, including the burgeoning Vietnamese market and other international businesses thriving in Vietnam.

Since initially establishing our presence for consumer electronics business in Vietnam in 2010 to cater to some of our key clients, we've recognised a burgeoning opportunity to serve diverse businesses. Living in Vietnam has allowed me to see first-hand the growth of Vietnamese businesses. Our expertise in coating technologies for plastic substrates positions us as a valuable partner to these companies as they evolve within the Vietnamese market.

Can you detail the rationale and strategic fit for AkzoNobel's recent expansion of production lines in the consumer electronics division within Vietnam?

We have scaled up our production, particularly in the north of Vietnam, which is a continuation of my prior responsibilities within the company. Concurrently, we've pivoted to focus on the advanced waterborne technology for our consumer electronics segment, which reflects a significant shift from our existing solvent-borne capabilities.

We decided to be closer to our customer base, which allows us to respond swiftly and provide tailored solutions that align with their specific requirements. We aim to not just respond to client requests, but also actively drive the industry towards more sustainable practices. Our investments also cater to the need for durable and high-quality finishings that meet diverse substrate requirements.

Could you elaborate on how AkzoNobel is integrating sustainability into its growth strategy, particularly in the Vietnamese market?

AkzoNobel has made sustainability a key focus, particularly as the demand for sustainable solutions grows in Vietnam and globally. Over the last 5-6 years, sustainability has moved from a talking point to a core aspect of our product discussions with OEMs, who now seek sustainable offerings like bio-coatings and low-carbon options.

Our investment in waterborne technology in Vietnam highlights our commitment to accessible, sustainable solutions, differentiating us from competitors and supporting local industry progress toward sustainability. This move is part of our wider goal to incorporate sustainability throughout our value chain, from raw materials to production processes.

We aim to empower customers with sustainable choices, demonstrating through our actions in Vietnam that advanced, innovative technical solutions are available now. For example, among our products, the durable, anti-stain coating for electronics exemplifies our commitment to practical, sustainable innovation, prolonging device life, and reducing waste.

In AkzoNobel’s push towards sustainability, do clients incur a premium cost for opting for eco-friendly products?

Our sustainable offerings are competitively priced to deliver significant value without a hefty premium in Vietnam. We emphasise on efficiency and value, optimising application processes to ensure maximum paint utilisation. Our experienced technical team in Vietnam is instrumental in helping suppliers and applicators enhance efficiency, reduce overall costs, and align with our sustainability objectives.

The true value of our paint goes beyond cost, focusing on effective application and longevity, which saves money over time and supports sustainability. We also guarantee the durability and performance of our coatings with advanced testing in our Bac Ninh facilities, using climate chamber to simulate extreme conditions. This commitment to quality and sustainability ensures we provide high-value solutions to our clients.

How does AkzoNobel collaborate with partners, both within and outside the industry, to enhance the quality and sustainability of its consumer electronics?

AkzoNobel thrives on a global collaboration network, encompassing teams across the continent, which fuels our innovation with diverse best practices and ideas. Our development presence spans from the Netherlands to Asia, including Vietnam, facilitating close work with partners ranging from suppliers to startups and academic institutions. This global and local blend enables us to launch contests and co-development projects, promoting innovation.

Additionally, AkzoNobel annually unveils colour trends, a collaborative effort with designers and architects worldwide. This process is not just about aesthetic appeal but also about responding to broader societal trends, such as the integration of AI in consumer devices, with the aim of making technology more approachable and human-centric.

What are the key challenges and opportunities AkzoNobel faces in the consumer electronics sector, particularly regarding sustainability?

One of the primary challenges we face is navigating a traditional industry where the significant role of coatings in sustainability is not consistently recognised. For instance, enhancing coatings to allow for greater use of recycled plastics is a direct way we contribute.

Another key area is the restrictions on the waterborne technologies that we previously thought to be limiting, but it turns out to be not the case any more. We've demonstrated to designers from well-known appliance manufacturers that our environmentally friendly solutions can achieve vibrant, metallic finishes without compromising design freedom.

On the flip side, in Vietnam's post-COVID landscape, agility has become paramount for the consumer electronics and automotive industries I lead. The rapid changes in manufacturing locations, driven by the shifting sands of the global economy, compel us to stay close to our customers and adapt quickly to their evolving strategies.

Despite the economic contraction, where many companies are slashing expenses, our optimism fuels our growth and propels our technology and sustainability efforts forward. Sustainability isn't a mere consideration - it is integral to our industry's future and a personal driver in my role. Sustainable practices will define our success and legacy in the chemicals and coatings field.

AkzoNobel inaugurates new production facilities in Bac Ninh On March 1, AkzoNobel celebrated the inauguration ceremony of the new production facilities at Bac Ninh site of AkzoNobel, marking a significant milestone in the sustainable development strategy of the group in Vietnam.