The firm says Kansai Plascon was obliged to sell, market (distribute) and advertise the Sadolin brand until the end of January 2018
AkzoNobel, the Dutch-based Sadolin brand owner has terminated its licence agreement with Sadolin Paints East Africa, which is currently called Kansai Plascon, freeing itself to sign a new local manufacturer.
In a statement, Johann Smidt, the director for AkzoNobel Decorative Paints in Sub-Saharan Africa said: “In accordance with the contractual agreement, Kansai Plascon was obliged to sell, market (distribute) and advertise the Sadolin brand until the end of January 2018".
“This responsibility has not been upheld and actions by Kansai Plascon indicate deliberate breaches of the contract as evident in the over-labelling of Sadolin packs with Plascon labels.”
He added: “Recent market disruption in supply of the Sadolin brand is due to unlawful activities by Kansai Plascon. This has prompted us to engage in conversations with a new partner, much progress has been made in this respect.”
In an earlier interview, Smidt noted that AkzoNobel is going to spend significant funds to support a new local producer of Sadolin paint in Uganda, before moving to other countries in the region due to relatively big brand equity it enjoys locally.