Akzo Nobel Functional Chemicals S.A.

September 1, 2008 - The Board of AkzoNobel has approved an investment of close to USD 8 mln in the sulfuric acid plant and sulfur processing facilities at San Lorenzo in Argentina. The major investment comes within a few months of the acquisition of the site as part of the purchase by AkzoNobel of the former ICI global coatings and chemicals activities.  Functional Chemicals General Manager Bob Margevich commented: 'This investment shows our commitment to Sulfur Derivatives as a growth business for AkzoNobel. We are supporting our South American industrial and agricultural sector customers by meeting the increased demand for sulphuric acid in this fast growing region.’ Business Manager Mario Mariuzzi commented: ‘We see great growth opportunity in the sulphuric acid market in Argentine going forward. Together with this 50% expansion of the existing San Lorenzo plant, AkzoNobel is also preparing proposals for additional sulphuric acid capacity in consultation with major customers to be able meet all of the forecasted increase in future demand.’ San Lorenzo Site Manager Oscar Badella commented: ‘In addition to the current sulphuric acid plant expansion, AkzoNobel will be improving sulfur processing facilities as part of the same project; the upgrade represents a significant investment in ensuring high environmental and safety standards'.