Changes In Structure And Ownership Of Akzo Nobel Endüstri Ve Otomobil Boyaları A.Ş.

27 February 2010

Dear Valued Customer;

I am writing to you in order to give you some brief information on the history of our company and inform you of the forthcoming changes in its structure and ownership. 

Our company was established in 1982 under the name of Kemipol A.Ş. by 100% Turkish capital with the purpose of manufacturing and marketing Industrial Coatings. Following a period of rapid growth especially in General Industrial Coatings and Automotive Coatings, a joint venture agreement was signed with the Dutch based paint manufacturer Akzo International b.v and our name became Akzo Kemipol A.Ş. 

After the worldwide merger between Akzo and Nobel in 1994, our name changed again and became Akzo Nobel Kemipol A.Ş. Since then until the beginning of 2007, we carried out our activities in General Industrial Coatings, Automotive Coatings, Wood Coatings, Car Refinishes, and Coil Coatings in this company, which was jointly owned by Akzo Nobel (51%) and Altan family (49%). 

We served the industry in this period, especially in General Industrial  Coatings  and Automotive Coatings not only with Akzo Nobel technologies but also with the technologies of Kansai Paint Co., Ltd., a Japan based paint manufacturer and one of Akzo Nobel’s global partners. 

In 1993 Akzo divested its automotive business in most parts of the world, except in Turkey and some other countries outside of Europe. After the merger with Nobel, in the late 1990ies and early  2000s, Akzo Nobel divested  its business also in General Industrial Coatings gradually except in Turkey, which led the shareholders of Akzo Nobel Kemipol A.Ş. to decide in favor of transferring Akzo Nobel’s shares in the Automotive Coatings and General Industrial Coatings to Kansai Paint Co.,Ltd. 

In order to realize this transfer, the business partnership between Akzo Nobel and Altan family was restructured  at the beginning  of  2007. Accordingly, a new joint venture dedicated to General Industrial Coatings and Automotive Coatings under the name of Akzo Nobel Endüstri ve Otomobil Boyaları A.Ş. was established and a share transfer agreement was signed between Akzo Nobel and Kansai Paint simultaneously. We had informed you of these changes in due course. The relevant formal announcements had also found place in the national and international press at the time these changes took place. 

However, we had to wait until 2009 due to some regulatory issues before we could drop the name Akzo Nobel Endüstri ve Otomobil Boyaları A.Ş.  and  adopt  the new  name Kansai  Altan Boya Sanayi  ve Ticaret  A.Ş. The new  company Kansai Altan is the continuation of Akzo Nobel Endüstri ve Otomobil A.Ş., with the difference that its name reflects  our new shareholding structure  and corporate identity more  properly than our previous name. The shares of the new company are jointly owned by Kansai Paint Co., Ltd. (51%) and Altan family (49%). 

Kansai Paint Co.,Ltd. is one of the largest paint manufacturers in the world and owns advanced technologies in the areas of Automotive Coatings and General Industrial Coatings which are already available to our new company Kansai Altan. 

In addition to Kansai Paint’s technologies, we will continue to use all the technologies already in the portfolio of our former company Akzo Nobel Endüstri ve Otomobil Boyaları A.Ş., including the Akzo Nobel technologies which are currently in use in our company. 

We will  continue to manufacture the same products  with the same formulations and identifications, in the same site, using the  same equipment and applying the  same processes. There will be no change in our supply chain specifically due to the change in the shareholding structure in our company. 

The activities in Wood Coatings, Car Refinishes, and Coil Coatings will continue to be managed in the same site as before by AkzoNobel Kemipol A.Ş., which continues to be jointly owned by AkzoNobel(51%) and Altan family (49%).  

We will be informing you with another notification on the date of the change of the corporate name.  

I hope we will have the opportunity to continue serving you with our products and services. 

AkzoNobel Endüstri ve Otomobil Boyaları A.Ş.