Akzo Nobel is depending on green products to drum up more sales and offset mounting pressure related to the slowing housing markets in the U.S. and Europe, redOrbit reports.
Andre Veneman, the company's director of sustainability, says 18 percent of Akzo Nobel's revenue is now made up of sustainable products. The company is aiming for 30 percent by 2015.
Other companies have also noted increased sales of green products. GE has reported that revenues from its environmental portfolio topped $14 billion in 2007, up more than 15 percent compared with 2006, and the company’s “cleantech” fund — investment in cleaner technology research and development — surpassed $1 billion for the first time. Last year, P&G said that it plans to generate at least $20 billion in cumulative sales of products with reduced environmental impact over the next five years.
"We no longer sell a product, we sell energy savings, and clients are willing to pay extra for it," Veneman told redOrbit.
Intersleek 900 is one Akzo Nobel's sustainable products. It's a paint for ships' hulls that allows large vessels to pass more efficiently through water. It also reduces fuel consumption and transportation costs by at least six percent.
Although the new paint costs five times more than conventional hull coating, the company says it could deliver up to $2.5 million savings over a five year period for a typical ship.
