Sabanci Holding Intends to Acquire 50% of Akzo Nobel's Industrial Fibers

Business Wire, Oct 6, 1997

ARNHEM, Netherlands--(BUSINESS WIRE)--Oct. 6, 1997--Akzo Nobel nv and Sabanci Holding, Istanbul, Turkey, have signed a letter of intent on the transfer of Akzo Nobel's Industrial Fibers business into a 50/50 joint venture.

Akzo Nobel and the Sabanci group are planning to come to a final agreement in the spring of next year.

The business concerns polyester, nylon and rayon industrial fibers and fabrics with production facilities in Germany, the Netherlands, the United States and Brazil, with sales totaling NLG 1.6 billion and 4,500 employees. These fibers are used as reinforcing materials in tires and various other technical end uses as fabrics, car seatbelts, conveyor belts, airbags, ropes and nets.

Fritz Frohlich, Member of the Board of Management of Akzo Nobel nv: "We have had an excellent relationship with the Sabanci group for many years, and we would be very pleased to have them as a 50% partner in our Industrial Fibers business. This move enables us to jointly improve our ability to serve our worldwide customers in the increasingly global markets and fits in the restructuring of Akzo Nobel's portfolio."

Sevket Sabanci, Vice Chairman of Sabanci Holding: "So far we have been primarily focused in Turkey. It is our group ambition to grow outside Turkey through globalization. This project will take us into a new dimension in our development with an excellent platform outside our home market for additional growth and we are looking forward to working even more closely with Akzo Nobel."

The Sabanci group is one of the largest industrial and financial conglomerates in Turkey. The group is the leader in many business sectors in Turkey, has more than 50 affiliated companies and over 27,000 employees. Total combined revenues for 1996 amounted to USD 7.8 billion. The primary sectors are banking and insurance, textiles, synthetic fibers, cement, automotive, tire and tire reinforcement materials, food, retail, and tobacco. The group has international operations in the UK, Israel, Spain and Egypt and a Sabanci bank in London. The group has grown through the expansion of existing core businesses and through the formation of 17 joint ventures, each with world leaders in their fields. In the related areas of industrial fibers these include joint ventures with Bridgestone, DuPont, Toyota, Bekaert, and more recently Hoechst.

CONTACT: Akzo Nobel, Chicago

Nick Sommers, 312/906-7612

http://www.akzonobel.com