This article summarizes reporting by the Chicago Tribune and official announcements from AkzoNobel. This article summarizes publicly available elements and public remarks.

AkzoNobel Invests $58 Million to Modernize Waukegan Aerospace Hub

AkzoNobel has announced a significant capital injection of €50 million (approximately $58 million) into its Waukegan, Illinois, facility, solidifying the site’s status as the company’s largest aerospace coatings production plant in the world. According to reporting by the Chicago Tribune and official company statements released in early January 2026, the project aims to modernize manufacturing capabilities and expand capacity to meet surging global travel demand.

The investment involves a strategic reorganization of AkzoNobel’s North American footprint. While the Waukegan site will focus on intensified manufacturing, warehousing operations are set to relocate to a new facility in Pleasant Prairie, Wisconsin. This shift allows the company to repurpose existing storage space in Illinois for production lines, directly addressing the need for higher output.

Scope of the Expansion

The upgrade focuses on what AkzoNobel describes as “Industrial Excellence,” a program designed to streamline operations through advanced automation and improved workflow. The Waukegan facility, located at 1 East Water Street, currently spans 11 acres and employs approximately 200 people.

According to details shared in the company’s announcement, the modernization will be executed in two phases. The primary goal is to enhance supply chain resilience in North America, offering shorter lead times for airline and MRO (Maintenance, Repair, and Operations) customers.

Technological Upgrades

The investment will fund the installation of state-of-the-art machinery intended to increase throughput and consistency. Key technical enhancements include:

• Liquid Pre-Batch Area: A dedicated zone designed to improve the efficiency of mixing and preparing coating formulations.
• High-Speed Dissolvers: New technology aimed at accelerating the dissolving process for various coating components.
• Rapid Service Unit: A specialized operational unit focused on the MRO market, ensuring faster turnaround times for urgent aircraft repair needs.

Strategic Context and Market Demand

The decision to expand comes as the aerospace industry prepares for a projected rise in global air travel. Airlines and manufacturers are increasingly requiring specialized coatings for both new aircraft deliveries and the maintenance of existing fleets. By moving finished goods storage to the new Wisconsin facility, AkzoNobel expects to significantly increase its production capacity for primers, basecoats, clearcoats, and custom colors.

Patrick Bourguignon, Director of AkzoNobel’s Automotive and Specialty Coatings business, emphasized the strategic necessity of the move in a press statement:

“This investment will increase our comprehensive North American supply capability and solidify our position as a frontrunner in the aerospace coatings industry. Demand for air travel is expected to grow significantly over the next few years and we want to make sure our customers are able to meet that demand with aircraft of the highest quality.”

Operational Flexibility

Beyond raw capacity, the upgrades are designed to offer greater flexibility in production batch sizes. Martijn Arkesteijn, Global Operations Director for AkzoNobel Aerospace Coatings, noted that the improvements would directly benefit customer timelines.

“We’ll be able to provide current and future customers with even more flexibility through the delivery of large batch sizes, better responsiveness to market needs and shorter lead time for color development.”

Sustainability Targets

While the primary focus of the investment is operational efficiency, AkzoNobel has stated that the project aligns with its broader environmental goals. The company aims to reduce carbon emissions by 50% by 2030 (using a 2018 baseline) and transition toward 100% renewable electricity. The new equipment installed at the Waukegan plant is expected to reduce energy intensity per unit of production, supporting these corporate sustainability targets.

AirPro News Analysis

The separation of manufacturing and warehousing is a growing trend among industrial suppliers facing land constraints in established industrial zones. By decoupling storage from production, AkzoNobel effectively unlocks new square footage for value-added manufacturing without the need to acquire adjacent land, which can be difficult in developed areas like Waukegan. This move suggests a prioritization of speed and volume, critical factors as the aerospace supply chain continues to recover and expand post-pandemic.

Sources

Sources: Chicago Tribune, AkzoNobel Official Announcements