AkzoNobel said more than 117 employees will continue working from the regional headquarters in sales, marketing, finance and other business-support functions. 

Current Nashville production volume is expected to be absorbed by AkzoNobel powder coatings plants in Reading, Pennsylvania; Warsaw, Indiana; and Monterrey, Mexico. The company said it does not expect the transfer to interrupt supply to customers in North America.

AkzoNobel connected the closure to its Industrial Excellence program, which is intended to optimize operations and reduce complexity across its manufacturing network. A company spokesperson also told WKRN that the program leading to the Nashville decision is separate from the proposed AkzoNobel-Axalta merger. 

The company previously announced plans to close manufacturing sites in Groot-Ammers, the Netherlands; Cork, Ireland; and Lusaka, Zambia, and transfer production to other regional locations. AkzoNobel described those plans as the first part of a multiyear industrial-efficiency program scheduled to be finalized by the end of 2026. 

The Nashville decision leaves AkzoNobel with a three-site powder coatings manufacturing network serving the North American market while retaining its corporate and support presence in the city.

Sources: Yahoo Finance, AkzoNobel

Powder coatings customers will be watching the production transfer for continuity in lead times, product availability and technical service. The closure also adds to a broader pattern of coatings and specialty-chemicals manufacturers consolidating production into fewer, larger sites.