AkzoNobel the brand owners of Sadolin Paints have announced cancelation of their Licence Agreement with Kansai Plascon, who recently acquired Sadolin Paints (East Africa), citing breach of the agreement.
Johann Smidt, the Managing Director AkzoNobel Decorative Paints in Sub-Sahara Africa says the cancellation takes immediate effect although it was supposed to last a few more months.
By the agreement, after acquiring Sadolin, Plascon were obliged to continue producing, selling and marketing the Sadolin Brand until the end of January next year.
These however, immediately after the acquisition, renamed the brand to Plascon.
“We have made multiple attempts to engage Kansai Plascon to ensure continued supply of the Sadolin brand to the market,” said Smidt in a statement.
“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, “This behavior, amongst other activities, has left us with no choice but to cancel the agreement with immediate effect to protect our Sadolin brand and ensure supply to the Ugandan people.”
AkzoNobel recently won a court order allowing them to retain ownership of the Sadolin Brand, and have since committed to partner with other paint manufacturers in East Africa to resume production of paints under the Sadolin name.
Mr Smidt says progress has been made so far to this effect.
He further dismissed Plascon media advisements that they were “migrating from Sadolin to Plascon” as misleading.
“Sadolin has been owned by AkzoNobel since 1987 and was founded by Gunnar Sadolin in 1907. It was never owned by the local licensee, Sadolin Paints East Africa. The licensee was purely manufacturing, selling and distributing the Sadolin brand on behalf of AkzoNobel.”