AkzoNobel to close Nashville powder coatings factory amid industrial overhaul
The closure also coincides with pressure in Tennessee’s chemical-manufacturing sector.
USA – AkzoNobel is set to shut its Nashville powder coatings manufacturing plant by the end of 2026, eliminating 75 jobs.
According to the company, it separate Nashville regional headquarters, home to more than 117 employees in sales, marketing, finance, and business support, will remain open and unaffected.
The closure affects only the Nashville Powder Coatings manufacturing operation, not AkzoNobel’s broader presence in the city.
Production currently handled in Nashville will be shifted to AkzoNobel’s powder coatings facilities in Reading, Pennsylvania; Warsaw, Indiana; and Monterrey, Mexico. AkzoNobel does not expect the transition to disrupt supply to customers in North America.
AkzoNobel describes the decision as part of its 2023 Industrial Excellence program, an effort to streamline operations, reduce complexity, and address issues such as supply-chain bottlenecks, underinvestment at key sites, and low capacity utilization.
The company’s broader strategy includes consolidating its Industrial Coatings footprint in North America by rationalizing, upgrading, and optimizing its industrial network to strengthen competitiveness.
Site closures linked to the program are described as the first phase of a multiyear efficiency plan scheduled for completion by the end of 2026.
The Nashville decision fits into a wider global restructuring. AkzoNobel has also announced plans to close manufacturing sites in Groot-Ammers, Netherlands; Cork, Ireland; and Lusaka, Zambia, with production from those locations expected to move to other facilities in their respective regions.
The program driving the Nashville closure is not being affected by its proposed merger with Axalta Coating Systems, according to the company.
The announcement comes as AkzoNobel awaits European Union approval for a proposed merger with U.S.-based Axalta Coating Systems, a transaction reported by Nashville’s WKRN as valued at about USD 25 billion.
Chemical manufacturing employment in the state fell 2.6% over the previous year, according to August data from the Tennessee Department of Labor and Workforce Development cited by WKRN.
Even while reducing its Nashville manufacturing footprint, AkzoNobel is investing in growth elsewhere in its Powder Coatings business.
The company has announced a USD 30 million expansion of its North American powder coatings operations, citing rising demand from architecture, automotive, agriculture, construction, appliances, and furniture markets.
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