Coatings Word January 2014
Coatings Word January 2014
Coatings Word January 2014
1 Table of Contents
28
34 37 39
COLUMNS
InternationalCoatings Scene................................ 19
Latin America Arkema Increases Investments in Brazil Europe European Coatings Market Embraces Sustainability Africa Drive to Lead-Free Africa
DEPARTMENTS
Business Corner.................................................... 24
Disruptions Consultants Have Them Too, Part 2
Editors Page........................................................... 6 As We Go to Press.................................................. 8 Index to Companies................................................ 8 Market Watch....................................................... 10 Fresh Paint............................................................ 12 Patents.................................................................. 18 New Products....................................................... 25 Industry News....................................................... 42 Suppliers Corner................................................... 45 People.................................................................. 46 Meetings............................................................... 47 Final Coat.............................................................. 50
Classied Ads....................................................... 48
ADVERTISING SECTIONS
Advertising Index.................................................. 49
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Editors Page
t the start of a new year there is always a sense of optimism for the future. The paint and coatings industry has had some rocky years, but things appear to be improving. Throughout 2013 both paint manufacturers and their suppliers were reporting improvements in their business. The general feeling is that this upswing is going to continue into 2014. In the article Interior Architectural Interior Coatings (pg. 28) paint manufacturers I interviewed reported positive growth in 2013 due to an improved housing market and increased consumer confidence. In the Pigments Report (pg. 36) pigment suppliers also expressed optimism. Frank Lavieri of Lansco Colors said, We saw the pigment market grow in 2013 especially in the last third of the year and particularly in industries serving construction and housing. Since 2009 we have seen the consumption of pigment increase steadily and at double-digit rates at times. We expect 2014 to be another strong year. This sentiment was echoed in the Additives Market Report (pg. 33). The outlook for 2014 remains optimistic, with eyes continuing to follow the housing market. Particularly as interest rates begin to rise and employment numbers evolve, said Amber Goodyear of Coatex Inc. This optimism has a concrete basis as financial experts are also reporting that they expect things to improve in 2014. Prudential market experts recently reported that they expect significant growth in the financial markets in 2014 as the U.S. and global economies continue to recover amid central bank actions, low inflation and an improved business climate. They outlined their views at Prudential Financial, Inc.s 2014 Global Economic and Retirement Outlook briefing. In a statement released at the briefing Ed Keon, managing director of Quantitative Management Associates, said the more global markets and economies improve, the more they begin to resemble their pre-2008 levels. He expects significant growth in 2014 driven in part by technological innovations and a possible positive shock in energy production in the U.S. and around the world. He expects the Federal Reserve to remain on the sidelines for the next couple of years, keeping interest rates low, even as it begins to taper its bond-buying program. The new normal is beginning to look like the old normal. Weve seen significant growth in 2013 and were now experiencing a robust economy that we used to think of as normal, Keon said. Although it is much too early to tell for sure, things certainly do seem to be looking up in 2014!
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January 2014
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As We Go To Press
AkzoNobel Powder Coatings plans to relocate its manufacturing facilities in Ningbo and Suzhou, China to the Chang Zhou National High-Tech District by the end of 2015. The current location of AkzoNobels Ningbo site has been designated as a future residential zone in the Chinese governments 2010 urbanization plan, therefore making it unviable for future operations. Discussion with the local Government resulted in Chang Zhou being identified as a suitable alternative location. At the same time, AkzoNobel will also relocate its Suzhou plant to Chang Zhou. This move will further support the companys integrated business strategy focused on ensuring sustainable growth of its business in China. The relocation of our Ningbo and Suzhou facilities to Chang Zhou presents an opportunity to upgrade our manufacturing capacity and capability in the region, allowing us to provide even better service to our customers said John Wolff, managing director AkzoNobel Powder Coatings. The move will also create opportunities to better leverage synergies amongst AkzoNobel businesses and improve operational performance in line with AkzoNobels global strategy. The current Ningbo and Suzhou plants will continue to operate as normal until the end of 2015 with no disruptions to customer supply. Further details regarding the relocation plans and comprehensive HR plans for Ningbo and Suzhou-based employees will be announced in due course. AkzoNobel currently employs more than 7,700 people in China, with 2012 revenue totaling 1.7 billion, the majority being generated from local demand. Currently AkzoNobel Powder Coatings has six manufacturing facilities in China, serving customers across the region.
Index to Companies
This index gives the starting page for a department or feature with a significant reference to a manufacturer of paint, coatings, adhesives and sealants Subsidiaries are indexed under their own names. AkzoNobel................................................................................................. 12, 25 APV Engineered Coatings................................................................................ 25 Axalta Coating Systems.............................................................................. 12, 25 Basco Paints..................................................................................................... 22 BASF................................................................................................................ 12 BH Paints......................................................................................................... 25 Chemspec......................................................................................................... 22 Dunn Edwards................................................................................................. 28 H.B. Fuller....................................................................................................... 12 Kelly-Moore............................................................................................... 12, 28 MasterChem.................................................................................................... 25 National Paint.................................................................................................. 12 PPG............................................................................................................ 12, 22 Rhino Linings................................................................................................... 12 Rust-Oleum...................................................................................................... 25 Sansin............................................................................................................... 50 Sherwin-Williams....................................................................................... 25, 28 Sika.................................................................................................................. 12 Tikkurila.......................................................................................................... 25 Valspar....................................................................................................... 12, 28
January 2014
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Market Reports
RNCOS Analyzes Demand for Auto and HP Coating in Indian Paint Market
and industrial activities, in order to track the transformations happening in the industry. large amount of organic pigments; in Asia-Pacific, on the other hand, iron oxides are accounting for a comparatively large share of regional consumption. The largest growth potential in Asia-Pacific is expected for carbon black pigments. Paints and varnishes are the by far most important sales market for pigments worldwide. More than 43% of global demand originates in this segment. Processing plastics accounts for 27% of total demand for pigments. This segment will develop at the second highest growth rates in the future, explains Oliver Kutsch, CEO of Ceresana. Only the segment printing inks will grow at higher rates, thanks to an increase of demand for printed packaging. Ceresana expects the least dynamic development for the segment paper, as the completely revised 3rd edition explains.
According to analysis by RNCOS, the industrial paint market in India is being driven by automotive and high performance coatings. The auto industry in India is showing signs of pickup with car sales of 133,486 in August in 2013, up 15.4 percent from a year ago, according to Society of Indian Automobile Manufacturerss (SIAM) data quoted in a recent daily. Moreover, a higher demand from rural India will help also to boost the revenues of automobile industry and hence the industrial coating industry in the short to medium term. According to the latest report by RNCOS Booming Paint Industry in India, both automotive and high performance coating are witnessing huge demand and are witnessing huge growth. Several properties of automotive paints like resistance to high stresses like rain and UV radiation, heat and cold, gravel from the road and the brushes during the car wash, are providing an edge to this type of coating over other industrial paints. In addition, a high performance coating also provides superior performance properties, like corrosion and wear-resistance. Thus, these two categories will continue to drive the industrial paint market in the country. The report Booming Paint Industry in India, has provided an insight on the paint market by dividing the market into decorative and industrial paints, with market forecasts up to FY 2015-16 for various components along with their segments. Further, the components of the decorative market have been divided into various sub-segments. The report has also provided a detailed overview of the raw materials and the trade scenario in the paint market. In addition, macroeconomic indicators and trends affecting the industry have been identified to give a clearer picture of the industry. Profiling of major players in the paint market has also been provided with an emphasis on their product portfolio, key financials
Global Renewable Chemicals Market to Grow at CAGR of 7.32 Percent from 2012-16, Predicts TechNavio
TechNavios analysts forecast the Global Renewable Chemicals market to grow at a CAGR of 7.32 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing demand for eco-friendly chemicals and materials. The global renewable chemicals market has also been witnessing the adoption of eco-friendly bio-based chemicals and materials by major companies around the world in order to reduce greenhouse gas emissions. However, the possibility that production of renewable chemicals could trigger a global food crisis could pose a challenge to the growth of this market. TechNavios report, the Global Renewable Chemicals Market 20122016, has been prepared based on market analysis with inputs from industry experts. The report covers the Americas, and the EMEA and APAC regions; it also covers the Global Renewable Chemicals
January 2014
market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.
Lower Feedstock Prices Can Reduce Cellulosic Sugar Prices as Low as USD 0.26/ kg: Lux Research
Lower feedstock prices can drive down prices of fermentable cellulosic sugar to USD 0.26/kg, down from USD 0.32/kg to USD 0.36/kg, competitive with sugars from corn or sugarcane, according to Lux Research. This advance would allow biobased chemicals and biofuels to be made from more plentiful non-food sources, helping them better compete with petroleum-based chemicals and fuels. Improved enzyme technology will also be critical to making bio-based fuels and chemicals from cellulose competitive with those from corn and sugarcane, Lux Research says. Feedstock is the single largest driver of overall fuel production economics.
While agricultural waste is a common target feedstock, municipal and industrial waste can be near zero cost, or even negative cost, said Andrew Soare, Lux Research Senior Analyst and the lead author of the report titled, Cellulosic Chemicals and Fuels Race to Compete with First-Gen Sugar Economics. While enzymes are a big cost driver for cellulosic sugar, methods such as supercritical fluid processes that dont use enzymes at all can offer cheaper options, he added.
Thermochemical Pretreatment Options Offer Cellulosic Sugars for USD 0.25 per kg Operating Cost
Lux Research analysts built a cost model for a 700,000-ton-per-year plant to study the five main routes from lignocellulosic biomass to sugars. Among their findings: Cellulosic sugar costs vary. The minimum selling price for cellulosic sugars depends on the processes used. Dilute acid yields USD 0.34/kg, high-opex steam
explosion costs USD 0.35 per kg, ammonia fiber expansion costs USD 0.36/kg, and supercritical water can yield the cheapest price of USD 0.32/kg. Feedstock has a 21 percent impact on cellulosic sugar prices. A sensitivity analysis of cellulosic sugar prices found that flexing feedstock up to USD 100 per metric ton and down to USD 45 per metric ton (from a baseline of USD 70 per metric ton) had the largest impact on sugar prices, changing it by over 21 percent. Eschewing enzymes yields cheapest prices. Enzymes are the most expensive variable in prices of cellulosic sugar, and supercritical fluid and concentrated acid processes dont require enzymes at all, potentially offering the cheapest options though technology risk remains. The report, titled Cellulosic Chemicals and Fuels Race to Compete with First-Gen Sugar Economics, is part of the Lux Research Alternative Fuels Intelligence and the Bio-based Materials and Chemicals Intelligence services. CW
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Market Reports
Fresh Paint
Following an announcement in June of this year, AkzoNobel has agreed to the sale of 67 of its 72 German decorative paints stores to five independent wholesale distributors. Financial details were not disclosed. As a result of the transactions, all related assets and staff will transfer to the new owners, with completion expected by the end of Q1 2014. Of the remaining five stores, three will be closed, while the sale of the other two is expected to be finalized by the end of the month. AkzoNobel will also form strategic partnerships with the five distributors, with contracts in place for the company to continue supplying paint. The new owners will be Schlau Hammer, MEG Rhein Ruhr, MEG Paderborn, MEG West and Weigel. The divestment of the 67 stores is part of AkzoNobels global drive for operational excellence. In Germany, it is central to plans to make the country more profitable and effective by fully focusing on customer needs and developing and marketing key brands, the company stated.
Keep America Beautiful Launches Community Paint Donation Program through Support from Dow
National nonprofit Keep America Beautiful (KAB) and Dow have launched the KAB Community Paint Donation Program, which will award donated paint to communities throughout the country. Dow completed its sixth year as a national sponsor of Keep America Beautifuls Great American Cleanup (GAC) in 2013 with employees volunteering at more than 50 events in communities with Dow business locations throughout the U.S. These merit-based grants have been developed to support KAB affiliates efforts to build and sustain vibrant communities at a local level. Grant awards will be used to purchase paint that features innovative raw materials provided by Dow Coating Materials. Dow is continuing to demonstrate its commitment to making a difference in communities where it has a presence by donating materials for approximately 2,500 formulated gallons of 100 percent acrylic interior paint for community improvement projects that KAB affiliates and GAC participating organizations initiate in Dow communities. Thriving communities are rooted in individual responsibility and action as well as public-private partnerships, said Becky Lyons, COO of Keep America
January 2014
Fresh Paint
Beautiful. Thanks to Dow, the Community Paint Donation Program will help our network of affiliates and partnering organizations generate more positive impact in their communities. Dow is proud to be a long-time supporter of KAB and we hope this effort will be a further catalyst toward building and maintaining thriving communities, said Howard Ungerleider, executive vice president, Dow Advanced Materials. Were especially pleased that we can tie this important philanthropic work to our Dow Coating Materials businesses this is the embodiment of corporate citizenship at its best.
hygiene market. The award recognizes the development and successful commercialization of two of its next generation, high cohesion olefin based, hot melt adhesive products, Full-Care 5300 and FullCare 5650. In its analysis, Frost & Sullivan noted the effective use of H.B. Fullers third generation, high cohesive, polyolefin technology to create game-changing adhesive products. These technologies work across diaper construction applications and support the latest trends in diaper design (or functionality), such as ultra-thin and modified shapes. Their research also highlighted H.B. Fullers commitment to enhanced supply security for adhesives and its development of adhesive technologies that enable customers to do more with less, very much in line with H.B. Fullers and their customers sustainability initiatives.
H.B. Fuller Receives New Product Innovation Leadership Award from Frost and Sullivan
H.B. Fuller has been recognized with a New Product Innovation Leadership Award from Frost & Sullivan for its hot melt adhesive product innovation and technical leadership in the nonwoven
designed for use with the PPG Aquabase Plus waterborne refinish system. EC800 Ultra Fast 2.1 Clearcoat is part of the PPG Envirobase High Performance waterborne system and is also a 2.1 VOC air-dry clearcoat. Delton DC2000 Ultra Velocity Clearcoat is a versatile clearcoat suitable for use with the Deltron DBC, Global Refinish System and Envirobase High Performance basecoats. All three clearcoats dry quickly, do not require flash time between coats or baking in a paint booth and can be polished within approximately 30 minutes, delivering outstanding gloss, appearance and durability, according to the company. With their reduced cycle times, the clearcoats can improve productivity, increase efficiency and cut energy costs with no sacrifice in final finish quality.
industry, has acquired Advanced Coating Solutions, a San Diego-based developer and manufacturer of waterborne, compliant coatings including epoxies, urethanes, stains, sealers and topcoats. Prior to the acquisition, Advanced Coating Solutions was a supplier to Rhino Linings Corporation. The acquisition brings Advanced Coating Solutions products and personnel in-house, and gives them the resources necessary to focus on new product development based on technologies pioneered by the company. Rhino Linings will continue producing Advanced Coating Solutions current commercial products, which include water-based polyurethanes, acrylic coatings and water-based acrylic emulsion coatings. As a result of Rhino Linings streamlined manufacturing process, scale of production, warehouse and logistics network, these products will be more price competitive in the market. Employees will be relocated to the Rhino Linings San Diego headquarters,
and production will be based in that facility. Additional terms of the acquisition were not released.
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Coatings World | 15
Fresh Paint
Fresh Paint
commercial vehicle segments for many years and demonstrates the trust Daimler places in our products and services, said Carsten Vietze, coatings account manager for Daimler Van and Truck & Bus Europe at BASF. With the supply contract, we are strengthening the market position of the entire BASF Group in the growing Russian market. The paint system for the Sprinter Classic stands out for its high level of robustness, a property that is especially important for commercial vehicles such as the Mercedes-Benz van. For the new paintline, in addition to the e-coat, primer and clearcoat, BASF suppliers three metallic and three solid colors. BASF is a long-standing partner of Daimler for passenger cars and commercial vehicles in all regions. In addition to the complete product portfolio, ranging from e-coat to clearcoat, the company offers a wide range of services. In 2012, the partnership with BASF in the truck and bus segment was recognized with the Daimler Supplier Award. The Sprinter Classic is the first vehicle produced in cooperation between Mercedes-Benz Vans and GAZ. According to the firm, the Sprinter is one of the most successful van models in the world. In 1995, it replaced the Mercedes-Benz T1 and since then has been on roads worldwide.
Bringing our decorative paints and performance coatings expertise under one roof in Oman will provide a strong platform to support our customers in this increasingly important market.
automotive markets: North America, Europe, Asia Pacific and South America. The annual tradition of reporting trends in vehicle color popularity began in 1953, with only a North American focus. Over time, the report has been expanded to include all major regions and vehicle segments. For the first time, the top five most popular colors by model year, dating back more than 60 years, have been compiled into a historical mosaic of color. Our customers have counted on our legacy to deliver exciting color, as well as solutions to meet the challenges of a changing world, said David Fischer, vice president, OEM Global Market Strategy and Growth, Axalta. As manufacturing and coatings processes have evolved, the industrys commitment to sustainability has increased and customer expectations for improved performance have continued. Axalta has been a preferred partner to deliver the necessary technology to meet both of these demands.
National will continue to manufacture all Petri products including the full line of water-based, oil modified, and moisture curing polyurethanes as well as the full line of quick drying sealers at its facility in North Brunswick, New Jersey. We are excited to have a company of Petris reputation for premium products join our growing family of coatings. Petri is an approved vendor with Sherwin Williams and the products are available from over 3500+ store locations across the USA, said Mike Schnurr, president of National. National Paint Industries, established in 1959 manufactures a broad line of specialty coatings for the pleasure and commercial marine, hardwood flooring, swimming pool, and industrial maintenance markets.
businesses and keep pace with an everchanging market. There has been a tremendous amount of effort since February 2013 across Axaltas entire global business to get us to operate as an independent paint company, added Davis. Only three months after becoming an independent company we announced a $50 million investment
to expand our production in China. Today we continue to work to be agile and flexible. And with our investment into our new UK offices and training academy, we look forward to accelerating our growth as we continue to provide quality and innovative technologies and solutions to our customers. CW
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Fresh Paint
Patents
U.S. 8,540,974 B2 BASF has been granted a patent for an aqueous dispersion comprised of water-soluble and/or water-swellable anionic polymers of ethylenically unsaturated, anionic monomers; an aqueous medium; and a stabilizer comprised of (a) at least one water-soluble polymer selected from the groups consisting of graft polymers of vinyl acetate and/or vinyl propionate on (i) polyethylene glycols or (ii) polyethylene glycols or polypropylene glycols blocked at one or both terminal groups with alkyl, carboxyl or amino groups, polyalkylene glycols, polyalkylene glycols blocked at one or both terminal groups with alkyl, carboxyl or amino groups and (b) at least one water-soluble copolymer comprised of (b1) nonionic monoethylenically unsaturated monomers, (b2) cationic monoethylenically unsaturated monomers and optionally (b3) anionic monoethylenically unsaturated monomers, the fraction of the interpolymerized cationic monomers being greater than that of the anionic monomers.
rkema is augmenting its Brazilian investment this year in production technology at its recently acquired plant in Araariguama, in Sao Paulo state, with plans to offer more of the companies global portfolio to customers in Brazil from local production. The company has already completed quality control upgrades at the plant, acquired in mid-2012, and is in the middle of installing a new technical service laboratory, said Eric Kaiser, Arkema Coatings Resins business director for the Americas, based in Cary, North Carolina. The new investments will help the company offer more domestically-produced rheology additives and waterborne emulsions, which are substantially taxed as imports in Brazil. While Arkema declines to cite the dollar value of its existing or planned investments in Brazil, the acquisition was expected to contribute some $20 million per year to subsidiary Coatex. South American sales in 2013 were three to four percent of our total global sales, and I do see that number growing, said Kaiser. The company books Central American and Caribbean sales within its North America numbers. At the same time that Arkemas new facility has established local production in Brazil for both Coatex and Arkema Coating Resins, the companys coatings resins business also is expanding into other new markets in Latin America. In late November, Arkema forged a strategic alliance with Miami-based Andes Chemicals for the distribution of Arkema products in the Andean region, as well as in Central America and the Caribbean. We see that certain countries in the Andean region, like Peru, have an attractive growth rate, and the region as a whole has a good growth rate, so an important first step for us was to establish a strong partnership
with someone who can take our product to market there, said Kaiser. In 2013, Perus gross domestic product expansion was the third fastest in Latin America, at 5.2 percent, following neighboring Andean nation Bolivia at 6.4 percent, and Paraguay at a stunning 13 percent. The Latin American regional growth rate last year was 2.6 percent, according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). The Andean region could be a hot market over the next few years, and Peru will lead growth for the region, said Mauro Trevisani, the chief operating officer for Andes Chemical, based in Miami. That is why last year we opened a subsidiary including a warehouse in Lima; a lot is going on there in terms of infrastructure, he noted. Arkema expects to serve the Andean countries from its U.S. grid of
manufacturing primarily, since crosscontinental logistics west from Brazil are difficult given the Amazon and the Andes mountains. Having both east coast and west coast operations in the United States gives us the option of serving South America either from the United States or from Brazil. Arkema coatings resins supplied to clients in Brazil now are largely those being produced within the country. Arkemas PVDF, a paint additive with broad functionality enhancement and increasing demand, is marketed under the Kynar brand, and is among the companys higher performance products gaining market share in Latin America. Among polyacrylate dispersing agents, Coatex markets the Ecodis and Coadis brands; among acrylic water-based paint thickeners, it markets the Rheotech, Thixol and Viscoatex brands. Coapur is the companys polyurethanebased thickener brand. CW
Coatings World | 19
European standards bodies are currently drawing up standards for biomaterials, which should help establish the biological genuiness of chemicals like biosolvents, biosurfactants and biopolymers.
by Sean Milmo European Correspondent [email protected] However, with more complex issues like biodegradation and bioaccumulation, which are covered by environmental and safety legislation, European regulators could take several years to draw up specific rules for coatings raw materials such as pigments. Meanwhile, a growing proportion of companies, many of them buyers of coatings, are utilizing office IT systems to ensure that personnel meet corporate sustainability criteria, including regulatory compliance, when purchasing products. Use of these software tools reflects the rising proportion of companies in Europe that are now wanting to switch as much as possible to green products. In a recent global study of 500 industry executives, McKinsey & Company, a management consultancy, found that greenness is considered to be one of three very important factors along with consistency/quality
January 2014
he use of biomaterials and more benign chemicals in coatings in Europe is accelerating as whole supply chains give greater priority to sustainablity, particularly as a means of protecting the environment. At the same time, however, producers of coatings and their raw materials are having to deal with uncertainties about exactly what materials can be categorized as being environmentally acceptable. Sustainability is not always something that can be easily proved. European standards bodies are currently drawing up standards for biomaterials, which should help establish the biological genuineness of chemicals like biosolvents, biosurfactants and biopolymers.
he drive by paint manufacturers, government and non-governmental agencies to eliminate the making of paints with lead and chrome in Africa gained momentum in 2013 despite few setbacks such as lack of relevant legislation to enforce the initiative and reluctance by some suppliers to remove the offending products from their shelves for fear of losses. Although it is discretionary in almost all African countries for paint makers to remove lead from paint, some manufacturers have taken the lead in ensuring the World Health Organization (WHO) and United Nations Environmental Programme (UNEP) target of a world free of lead paint and chrome by 2020 is achieved. We are pleased to be years ahead of the global deadline of producing lead-free paints, said Kamlesh Shah, managing director of Kenya-based Basco Paints Ltd, the leading paint maker and distributor in Eastern Africa. Basco Paints, whose Basco and Duracoat brands are distributed in Uganda, Ethiopia, Tanzania, Democratic Republic of Congo, and South Sudan, said it put an end to production of decorative paints with lead and chrome in 2013. All Duracoat decorative paints manufactured from August 2013 are lead/chrome-free and all raw materials containing these contents have been replaced, said Shah. Basco Paints Duracoat and Basco brands come in 7,000 shades with Shah saying it is the largest offering in the region. The move to unleaded paint is possible and we are proof of that. I encourage other players in the industry
and, equally importantly, those retail members who join Sapma will not stock paint from a supplier unable to provide a declaration that his or her product is lead-free. There are about 200 small- to medium-sized manufacturers of paint and coatings producing uncontrolled products. Our drive to recruit as many retailers as possible is also still a challenge. Without the retail industrys cooperation, paints containing lead can still find its way to store shelves and all too often at ridiculously low prices. He advocated for more water-based paints with more white oil-based enamels to reduce the lead levels in the brands supplied to the market. It should be remembered that 80 percent of decorative paint is water-based and contains no lead, which is traditionally used to obtain the rich colors in oilbased enamels. As the majority of enamel sold is white, this reduces the lead factor even further since colored enamels represent only about four percent of decorative sales he explained. Chemspec, one of Africas largest coatings companies with a five percent market share of South Africas coatings market, is one of the manufacturers that have pledged to eliminate lead/chrome from all their paint brands distributed across the continent and beyond. We continue to remove lead and hazardous materials from our paint, the
January 2014
n Part One, we discussed the HBR conclusions: We have come to the conclusion that the same forces that disrupted so many businesses, from steel to publishing, are starting to reshape the world of consulting. We concluded with the two reasons, up until now, HBR has for consultants being immune to disruption . . . opacity and agility. Being opaque, the black box of the team room, causing extreme difficulty in the measurement of the consultants inputs in combination with the BIG GUYS agility, the flexibility to respond to the threat of disruption in the past, is being stripped away with new models from lesser-known more focused and targeted consultants. In this issue we will examine two questions: Are Consultants in danger of disruption? & are Clients hiring the right firm for the job?
So, the pressure is on ALL consultancies but especially the branded large firms where their fees are line item expenses that stand out as large versus the measureable results clients receive. These large branded firms have started to counter the pressure stemming from client inability to capture measureable results by seeking out smaller, more-focused industry-knowledgeable boutique consulting firms,(to absorb or contract) in hopes by doing so they will maintain their higher fees but produce both solid qualitative and quantitative results in the process. However, smarter more agile clients are finding these boutique consulting firms themselves thus going direct cutting enormous costs in the process.
your work across more specialized providers? Have you aggregated consultative spending across company to ID both the absolute amount and the patterns by individual firms? Do your consultancies make transparent the breakdown that underpins their recommendations? Can you standardize these analyses into hard assets? Do you bring in experienced professional services industry staff members when developing proposal and managing same? Do you have an outcomes-based system for measuring the quality of the providers work? Do your assessments drive decisions about future consultancy hirings? It is very interesting to note that HBRs interviews with consultants who rejected the notion of disruption in their industry cited the difficulty of getting large partnerships to agree on revolutionary strategies. Why try something new, they asked, when what theyve been doing has worked so well for so long? This is exactly the attitude that has given a set of solid disruption opportunity platforms to so many other industries over time . . . like the horse and buggy to cars; the typewriter to desktop to laptop to iPad; land-line phones to cell phones; mail to email and finally, the stated disruption of the leaders in the legal services industrys top franchised firms (Consultants), is undeniably under way. CW Reference: Harvard Business Review, October, 2013
January 2014
Legal Profession
For example, the legal industry has been and is currently under pressure with both their customer . . . . the disgruntled client as well as their new competitor models. An Advanced =Law survey of general corporate councils found that 52 percent agree (and only 28 percent disagree) with the statement that general council will make greater use of temporary contract attorneys, and 79 percent agree that unbundling of legal services . . . . will rise. Cost pressures force clients to abandon the easy assumption that price is a proxy for quality.
B-H Paints Launches Ulttima Plus Line of Paints for the Carribbean Region
B-H Paints, a member of the Harris Group of Companies, has launched the new Ulttima Plus line of paints which they report is the Ulttimate Paint Solution manufactured to solve the five major painting challenges that customers revealed through research conducted across the Caribbean. The new line of paints are comprised of a series of five innovative, proprietary trademarked technologies, all unique to Ulttima Plus. These five technologies were designed to reflect the wants and needs of Caribbean paint consumers, to address the product complaints customers have
PPG Unveils SIGMA NEXEON Antifouling Coatings Without Copper for Commercial Vessels
PPG Industries protective and marine business is the first coatings manufacturer
to successfully develop and market a range of copper-free antifoulings for commercial vessels to help customers stay ahead of future regulations. The unique SIGMA NEXEON coatings range was developed based on extensive research and testing at PPGs own facilities and third-party studies, the company reported. The SIGMA NEXEON range provides a complete copper-free antifouling solution. The SIGMA NEXEON 710 product is the antifouling solution for operational vessels and can be applied during construction and dry docking. For new-builds where outfitting takes longer than six months, SIGMA NEXEON 750 high-activity copper-free topcoat antifouling is specified. Both products combine unique selfpolishing zinc-acrylate binder technology with high performance to help protect ships during the new-building process and while in service. A distinctive benefit of SIGMA NEXEON copper-free antifouling is its property of smoothness from start. Because of the absence of copper, the leveling and smoothness right after application is significantly improved, delivering better fuel efficiency from the start. Third-party testing with leading universities and test institutes in Korea and Japan has confirmed the properties and performance of SIGMA NEXEON antifoulings. From these studies, PPG has classified SIGMA NEXEON products as low friction antifouling. The SIGMA NEXEON antifouling range was recently applied to the underwater hulls of four new-build drill ships, NORBE VIII, NORBE IX, NORBE X and NORBE XI, in operation offshore Brazil for Odebrecht Oil and Gas Limited. Odebrecht wanted to keep the hulls clean from fouling and free from discoloration while stationary in seawater to minimize cleaning costs before delivery to the field. Following successful completion of the project, OOG awarded
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New Products
New Products
PPG a certificate of appreciation for its commitment to safety, outstanding coating quality and excellent performance.
blast cleaned to preparation grade Sa2, or for surfaces primed with Temadur 20, Temacoat GPL-S Primer or Temanyl PVB from Tikkurila. The new Temadur SC-F series of paints are available in three gloss grades: semimatt, semi-gloss and glossy. They can be tintedto the shades of the RAL, NCS, SSG, BS, Monicolor Nova and Symphony color cards by using Tikkurilas advanced Temaspeed Premium tinting system.
AkzoNobel Unveils New Range of Powder Coatings for the Architectural Market
AkzoNobel Powder Coatings has launched the fifth edition of Collection Futura a unique range of special effect powder coatings marrying the latest design trends with the ultimate in superdurable protection for the architectural market, according to the company. Featuring 55 special effects, the new Interpon D2525 Collection Futura range is based on Interpon D2000 technology, which delivers long term performance, superior gloss retention, maximum film integrity and resistance to color change. Designed in collaboration with leading style and innovation consultants PeclersParis, the smooth, textured and metallic effects, represent the moods and social trends influencing contemporary architecture. Five distinct color palettes characterize the range and is comprisd of the dense and pigmentary tones of ExNatura, the calm palette Sublimed, the bright highenergy tones of Bold Energy, the low-key gently faded Soft Industry and the intense shimmers and shot reflections of Explosive. Featuring 55 special effects, the new Interpon D2525 Collection Futura range is based on Interpon D2000 technology, which delivers long term performance, superior gloss retention, maximum film integrity and resistance to color change.
KILZ PRO-X 100 Series Interior Paint Offers Pros Exceptional Value
Masterchem Industries, maker of KILZ brand products, has relaunched its KILZ PRO-X 100 Series interior paint line. Featuring an advanced new
formula, the product offers painters, contractors, property managers and remodelers strong hide and touchup capabilities at an affordable price point, according to the company Designed with the needs of industry professionals in mind, the high-hide and commercial-grade KILZ PRO-X 100 Series allows for projects to be completed faster, with potentially fewer coats, while still delivering a consistent and durable finish. After thorough research and testing, the newly reformulated KILZ PRO-X 100 Series now has improved sprayability, with the versatility to be applied with a brush or roller, making it a convenient solution for a variety of interior projects. With just one 5-gallon can covering up to 2,000 sq. ft., the paint is ideal for large, time-sensitive projects such as multi-family residential or commercial propertiesand helps to maintain and restore surfaces. Available in three sheens interior dead flat, eggshell and semi-gloss KILZ PRO-X 100 Series is versatile enough to be used on a number of different surfaces, including drywall, concrete block, masonry, metal, wood, cured plaster, architectural plastics and poured concrete, among others. KILZ PRO-X 110 Interior Dead Flat is an ultra-low sheen, high-hiding, non-reflective, latex paint for production environments with strong spray, spray back-roll and touch-up features. KILZ PRO-X 100 Interior Dead Flat is ideal for walls and ceilings in high turnover properties and excels at hiding small surface imperfections. KILZ PRO-X 130 Interior Eggshell is a production quality latex paint developed to provide maximum performance in applications such as spray, spray backroll and touch-ups. The washable paint is excellent for high traffic surfaces and rental property walls and trim. KILZ PRO-X 170 Interior SemiGloss is a production quality latex paint providing maximum performance when applied via spray, spray back-roll and touch-up that is well suited for kitchens, baths, doors, trim, high traffic surfaces and higher-moisture areas. CW
January 2014
2014
www.american-coatings-show.com
Georgia World Congress Center Atlanta, GA April 8-10, 2014 American Coatings CONFERENCE April 7-9, 2014
FEATURE
Sherwin-Williams Harmony Paint contains anti-microbial agents to inhibit the growth of mold and mildew on the paint lm and related bacterial odors.
The market for interior architectural coatings continues to improve, fueled by an improved housing market.
Kerry Pianoforte, Editor
nterior architectural coatings manufacturers have reported that 2013 was a good year for them and are optimistic this upswing will continue. We saw high positive growth in 2013 due to an improved housing market and increased consumer confidence, said Ethan Opolion, product manager at Dunn-Edwards. We expect this trend to continue in 2014.
Sherwin-Williams reported another positive year for interior architectural coatings also citing improvements in the housing market as having a positive impact. There are more housing starts and we are seeing a positive impact on the interior architectural coatings market, said Karl Schmitt, vice president of marketing research and design at Sherwin-Williams.
January 2014
Troys advanced materials protection and surface enhancement technologies provide maximum efficiency and value by delivering higher performance at lower use levels. With one of the broadest product lines in the industry combined with superior technical service, Troy can custom develop the most cost-effective solutions, enabling formulators to meet performance objectives and improve cost savings. To learn how Troy is the Key to Innovation, Performance, and Value, contact your Troy representative and ask how Troy dry film preservatives, wet-state preservatives, and performance additives are adding value in the industry today. Visit www.troycorp.com for more information.
Troy Corporation 8 Vreeland Road Florham Park, NJ 07932 USA tel +1.973.443.4200 fax +1.973.443.0843
January 2014
New Products
Sherwin-Williams has launched a number of new products for the interior architectural coatings market. Emerald Interior Acrylic Latex Paint and Emerald Exterior Acrylic Latex Paint deliver bestin-class overall performance and industry-leading technology for premium paint jobs that demand both beauty and durability, giving professionals the quality and reliability they need. This interior paint provides exceptional hide, coverage, durability and washability with outstanding scrub, stain, block, water spotting and burnish resistance. It also contains antimicrobial agents that inhibit the growth of mold and mildew on the paint surface. Emerald Interior Paint is available in all Sherwin-Williams colors and custom tints in matte, satin and semi-gloss. The paint is certified to GREENGUARD standards for low chemical emissions into indoor air during product usage. To learn more, see greenguard.org. Emerald Interior meet the most stringent VOC regulations and are self-priming with a smooth, uniform appearance. The paint is suitable for a wide range of residential and commercial applications including hotels, offices and home interiors. Sherwin-Williams enhanced Harmony Interior Acrylic Latex Paint features innovations that help eliminate common odors and promote better indoor air quality by reducing airborne concentrations of formaldehyde and
Customers look for key performance characteristics such as hide, stain resistance and ow and leveling. Increasingly, customers are also looking for ease-of-use and we see the success of self-priming paints.
other aldehydes. Once the paint has dried, Harmonys Formaldehyde Reducing Technology helps reduce the levels of volatile organic compounds (VOCs) from potential sources like insulation, carpet, furniture, fabrics and other building materials. In addition to its odor eliminating and formaldehyde reducing technologies, Harmony Paint contains anti-microbial agents to inhibit the growth of mold and mildew on the paint film and related bacterial odors helping to extend the life of the paint. Harmony Paint also delivers great hide and a durable finish that can withstand frequent washings.
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January 2014
FEATURE
n the paint and coatings industry, additives play an important role offering adhesion for paint, preventing growth of mildew and overall improving paint characteristics. Overall, growth in 2013 was slow, and as we progress into 2014 the market itself is optimistic albeit struggling. Additives, particularly rheology modifiers and dispersants continued to play a key role in end-performance requirements in the paint and coatings market during 2013, explained Amber Goodyear, marketing manager, Coatex Inc. The outlook for 2014 remains optimistic, with eyes continuing to follow the housing market. Particularly as interest rates begin to rise and employment numbers evolve. Benjamin Dupnik, global segment manager, coatings, Cabot Corp., said that the market did indeed grow slowly in 2013 driven by increases in automotive production, overall industrial production and the beginnings of a rebound in the construction sector. Growth in developed economies remained sluggish in 2013, and this trend will likely continue in 2014, Dupnik said. Among BRIC economies, only China is demonstrating a favorable growth rate in the coatings market, while India and Brazil have been flat or declining. In general, the overall coatings market growth rates tend to hold true for additives as well. The key to outperforming in the additive market is to identify and provide innovative products to the parts of the coatings market that are experiencing the fastest growth. Izzy Colon, VP/general manager, additives, Troy Corporation explained that the market remains competitive, with the advantage going to suppliers who offer multifunctional additives that perform the job of several products. The additives market in North America has experienced some improvement; Europe remains relatively flat; and Asia continues to be the growth leader, Colon said. Troy is in a strong position to supply these regional markets with the right technologies that offer high levels of performance, environmental responsibility, and cost efficiencies, backed by regional distribution, regulatory assistance, and accessible technical service and support. Eric Dumain, North American market manager, industrial coatings, Arkema Coating Resins explained that the additives market fared positively this year, driven in part by strength in North America in segments including building and construction, automotive, infrastructure spending and energy. 2014 is expected to be another growth year as these markets continue to gradually return to pre-recession levels, and the
industrial coatings markets accelerate in response to growth in durable goods orders, Dumain said. Laura Bittle, product manager-Americas, advanced organics, OMG Americas, Inc., said that they saw low growth in terms of additives this year. Globally we saw low single digit growth for additives, Bittle said. Growth was led by China with the Americas and Europe showing GDP growth rates. We expect 2014 to be stronger than 2013 as the global economic uncertainty starts to improve. BASF said that the additives market grew globally, especially for water-based applications. We expect the slow global recovery to continue modest growth for 2014, said Alex Warren, market segment manager, transportation and industrial coatings, BASF Corp. Bruce Seeber, business line manager of paint, BYK USA Inc. said that the market started slow in 2013, due to the late spring and the delay in paint sales. It rebounded well through the year and was driven by a rejuvenated West Coast market. The wood coatings market was also surprisingly strong, Seeber said. Other markets, such as the industrial coatings market, specifically the heavy equipment and the coil segments, were flat. Sales into the automotive market kept pace with continuing strong automotive sales. We were very happy with the markets interest in new technology and the increasing interest to improve performance of existing coatings technology. Seeber also anticipated 2014 to remain strong in the architectural coatings market due to the housing market both new and resale continuing to gain momentum. This should outpace the overall North American coatings industry growth, he said. There should also be a slight rebound for the general industrial coatings market, but this will still be slower than the rest of the coatings markets. Sel Avci, business development manager, Solvay Novecare Coatings said that the overall additives market for 2013 was inconsistent. The first half of the year got off to a slow start due to very tentative economic recovery and wet weather, which delayed the start of the paint season in the second quarter, Avci said. However, the market bounced back in the third and fourth quarters, suggesting a cautiously optimistic outlook for 2014. The recovery of the U.S. housing market and the improvement of the general economy is likely to lead to volume growth, most notably in the architectural coatings segment.
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Latest Technologies
Goodyear said that technology being developed for rheology modifiers and dispersants have been focused on efficiency, assisting the market in transitioning to reduced VOC levels, and ensuring optimal dispersion of expensive fillers particularly TiO2. We are also seeing progress being made toward solving industry issues through the use of new rheology modifiers - such as improving open time and hiding, she said. Joe McClung, global market manager, DuPont Fluoropolymer Solutions, said that DuPonts market surveys indicated customers want their painted surface to stay new for as long as possible. Based on this feedback, were developing solutions to provide durable and easy cleaning properties for both interior and exterior applications, McClung said. Paint brands are important drivers of consumer preference. Our new product development efforts are focusing on providing high-performance solutions to meet consumer demands. Troys development efforts continue to focus on green, multifunctional additives with VOC- and APE-free chemistry. Troy performance additives will continue to enable manufacturers to achieve performance objectives while lowering costin-use and meeting or exceeding green standards, Colon said. Troy is continually developing new technologies that will help our customers to lead in their respective markets. Griffin Gappert, new product leader, coatings specialties, Ashland Specialty Ingredients, explained that reducing VOC and greening of formulations has led to reformulations where additives are playing an increasingly important role. Bittle said that there is an increased emphasis on bio-based and renewable building blocks. There is a renewed interest in fluorine - based materials, she said. There is also continued interest in controlled polymer architecture by controlled radical polymerization and other techniques for dispersion and rheology modifications. Shailesh Shah, global strategic marketing-formulation
New Products
Solvay has launched many new products this past year. One new product is RHODOLINE OTE 500, a patented VOC-free and APE-free additive for extending open time in waterborne coatings. Rhodoline OTE 500 provides a two- to four-fold increase in open time and delivers additional benefits such as improved gloss, scrub resistance and elimination of wetting agents in waterborne architectural paints, industrial coatings, inks and adhesives. RHODOLINE FT-100 is a freeze-thaw stability additive, is a VOC-free, APE-free solution that stabilizes waterborne, soft latex-based paints upon freezing during transportation, storage or application. It addresses the latex coagulation issues of lowVOC paints based on soft binder polymers. Whether added to the binder polymer or during paint formulation, Rhodoline FT100 provides a finished paint that passes five cycles of freezethaw stability. RHODOLINE ASP-100 is a new breakthough anti-settling polymer specifically designed to control the settling of heavy pigments such as iron oxides, TiO2, clays or organic pigments in waterborne coatings systems. RHODOLINE
January 2014
FEATURE
Pigments Report
Pigments manufacturers report growth in 2013, primarily fueled by increased auto sales and our optimistic for continued growth in 2014.
Kerry Pianoforte, Editor
igments suppliers to the paint and coatings industry are reporting that 2013 was overall an improvement over the past few years. Increased auto sales and a more robust housing market are just two of the reasons given for the improvement. 2013 was a very positive year for Nubiola. The company reported steady demand for its inorganic pigment products through the first three quarters followed by some softening in the fourth quarter. Nubiola is growing on a year over year basis due to the global reach of our business and our disciplined focus in specific markets, said Craig Utesch, national ales manager coatings at Nubiola. Our pigment chemistries are used in durable goods and consumer products with fairly steady consumption patterns, and we pursue a niche strategy in construction markets to lessen our dependence on new construction trends. For 2014 we expect a reasonable growth patterns to continue into mid-summer. We saw the pigment market grow in 2013 especially in the last third of the year and particularly in industries serving construction and housing, said Frank Lavieri, executive vice president and general manager, Lansco Colors. Since 2009 we have seen the consumption of pigment increase steadily and at double digit rates at times. We expect 2014 to be another strong year. The pigments market for the coatings industry grew only in the one to two percent range for 2013 versus 2012, said Robert Poemer of Heubach. There were several periods during 2013 where it appeared the recovery was finally taking hold and there would be more significant overall growth. Unfortunately, these were not sustained throughout the entire year. The performance again varied significantly by the sector of the coatings business, added Poemer. Once again leading the way with the most improved performance was automotive where we have seen positive growth for the last four years. Although there are signs that the recovery is starting to impact the building sector, it still appears to be quite listless. As stated in previous years, the major questions for the building sector are when will we some return to normalcy and what will the definition of the new normalcy be? Overall, Poemer said 2013 was an okay year for coatings industry sales. While it was certainly an improvement over the recession years, it still has not recovered to pre-recession levels, he added. Heubachs sales for our line of high performance
pigments was up slightly in 2013 with again the positive driver being the automotive OEM market and soft sales to the architectural/building market. For 2014, we do anticipate four to five percent growth and a good percentage of our growth will be fueled by the introduction of new products into our high performance line of pigments. 2013 presented some unique challenges. Traditional supply channels have been disrupted by unusual regional issues and selective plant closures, said Bill Gray, business manager at Sincol USA Corp. There continue to be environmental headwinds in many part of the world, especially Asia. Sincol Corp. has been well prepared for these events with strategic investments in evergreen water treatment facilities and continuing expansion of our pigment chemistry designed for coatings. In the end, 2013 is another difficult year for the pigment supplier. Global production capacity still exceeds the global demand and short-term competition for key pigment standards remains heavy. Sincol Corp global pigment sales have increased by 30 percent versus 2012. The European economy continues its turn to positive, with a corresponding increase demand for organic pigment, said Gray. The U.S. market has been steady, with the Asian/Pacific sales region leading the way for overall sales growth. We expect the 2014 global economy to continue to expand. We are looking for good sales growth increase to the NAFTA coating market. Sun Chemical Performance Pigments continued to see an upswing in the global pigments market in 2013, especially in the high performance and special effect markets. Global demand for dyes and pigments is estimated to grow annually at a four percent rate, said Michael T. Venturini, global marketing manager coatings, performance pigments at Sun Chemical. The demand in the U.S. is stronger due to the rebound in the housing market. Asian demand has been growing in general especially in China and Thailand, but a slowdown was seen in Thailand in the later part of the year, said Makoto Furukawa, sales and marketing manager pigments for coatings and plastics, DIC Corp. Stronger demand has been seen in Japanese automotive coatings from later in the years and in architectural coatings from the second half of the year due to an expected increase in the demand before implementing VAT percent increase scheduled in April 2014.
January 2014
Trends/Challenges
Environmental issues continue to be a hot button issue for pigment suppliers. Without question the biggest challenge to the global pigment market will be more strict enforcement of environmental regulation, especially related to water and industrial waste treatment, said Gray. This will continue the trend toward developing less environmentally challenging organic pigments. Another consequence of this trend will be a reduction in number of pigment producers worldwide. Sincol Corp is well positioned to meet these challenges and remain focused and committed to meeting the changing marketplace needs. There is a real value in product and process stewardship and this trend will continue, said Utesch. Customers still want formulation tools with the lowest environmental impact and highest value from suppliers. With 100 years of manufacturing history and our leadership team in Spain, we continue to use REACH compliance as a strong influence for product development. Sun Chemical reported that it continues to see demand for pigments with unique performance properties that are tailored specially for the end users application, such as: stability/flocculation resistance in zero VOC systems, enhanced chemical and bleach resistance, increased strength allowing reduced usage and more value, and improved dispersability to reduce processing time. Environmental regulations and social change for sustainable raw materials with less environmental impact are driving rapid change and innovation in all segments of the coatings market, Venturini added. The trend is well established in Europe and the U.S., but is quickly growing in other regions. Another important trend affecting the pigments market is the consolidation of paint companies. One of the major trends on a global basis in the coatings industry continues to be the consolidation of paint companies particularly in the NAFTA market, said Poemer. This obviously leads to larger customers with increased buying power and overall lower pricing. Unfortunately there also appears to be an overcapacity for the production of pigments and there is the potential for some restructuring within the market. Consolidation is a major trend being driven by tighter regulatory and customer requirements coupled with the highly competitive nature of the global pigment market, stated Lavieri. Pigment buyers who have experienced past supply disruptions are more discerning than in years past and are doing more due diligence. Lansco Colors welcomes this scrutiny and is a major beneficiary as the legacy pigment manufacturers which once had patent protected monopolies become less important.
Remaining profitable under these circumstances requires that pigments suppliers are on the top of their game, delivering exactly what the customer wants. Generally speaking, all pigment customers are looking for acceptable and stable rheology, lot to lot consistency, a wide
FEATURE
HINACOAT2013 was held November 20-22 in Shanghai, China at the Shanghai New International Expo Center. The show was preceded by the Nano and Bio Technology, in Coatings and Finishing, on November 18-19. According to the shows organizers, this years CHINACOAT exceeded past exhibitions. To explore the flourishing coatings market, CHINACOAT2013 provides exhibitors with a unified onestop trading platform. The show is organized by Hong Kong-based Sinostar, and is held in Shanghai on odd years, Guangzhou on even years. The show was very well attended, with a reported 25,736 visitors and showcased a wide variety of new products and technologies. In addition to the high attendance numbers, the show was attended by an audience prepared with questions and a high level of interest in the exhibition.
much better than before. So thats very good for us product wise and company wise. Zi Li, president, Trust Chem discussed their new products and business this year. Trust Chem launched several new products at CHINACOAT including some new yellow high performance pigments for ink as well as new red high performance pigments for ink.
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Asian Market
Hoover said that globalization of the coatings market has truly impacted the industry worldwide. I think that what youre seeing is the real impact of globalization on the coatings market, especially when you have OEM pieces that are manufactured in one location, assembled in other locations, and moved around the world, Hoover said. So we are seeing a real impact in Asia from Europe. The European consumers are down, and even though the U.S consumers are up, its still been a tough year for sales in Asia. Whether were also seeing a lead-time development as products are made around the world, the amount of time it takes from producing a raw material to delivering to the final consumer is actually longer than its been in maybe even a year, he said. I think were really seeing globalization becoming a major influence on coatings industry. Li remained optimistic overall about Trust Chem in the market. Business in China is, depending on which coatings area, slightly down. Industrial coatings are showing some increase, Li said. Southeast Asia we see a lot of up and down. Mainly Indonesia and India are down. Vietnam we see being up, it is really a growing country. Economy worldwide is growing however we did not reach our budget. The year is not over so it is just a rough estimate. Overall, Im optimistic and positive about the year. Fujima explained that KH Neo Chem opened a new office in China, which assisted in growth. This year we established an office in Shanghai, Fujima said. We have been growing and generally our customers have been growing too. However growth has been slow and there is a lot of expectation especially on the manufacturer side in China.
CHINACOAT2014 Guangzhou
CHINACOAT2014 Guangzhou will be held on Dec 3-5, 2014 in the China Import and Export Fair Complex (Canton Fair Complex). For more info on CHINACOAT visit www.chinacoat.net. CW
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Industry News
The Dow Chemical Company detailed the scope of a separation of a significant portion of its chlorine value chain. These assets are being carved out for future transactions, and represent up to $5 billion of total annual revenue, inclusive of sales on the merchant market and sales to support Dows downstream, value-added products. The scope includes approximately 40 manufacturing facilities at 11 sites, and nearly 2,000 employees. Todays announcement represents a continuation of the shift of our company toward downstream high-margin products and technologies that customers value, and generate consistently higher returns than cyclical commodity products. We are committed to prioritize our resources such that we maximize total shareholder return, said Andrew N. Liveris, Dows chairman and chief executive officer. These businesses have served us well over decades, but are serving markets that Dow has exited over time, and we are therefore right-sizing our upstream integration to match the downstream focus that we started a decade ago, Liveris added. Separating these business units will allow us to further optimize the way they can be operated; and we believe different owners will be able to extract maximum value from these highly competitive assets and their related markets. The announcement outlines a clearly defined scope of businesses that are located in attractive regions and are backed by a low-cost energy position attractive for producers of chlorine-based chemicals such as caustic soda and PVC. Further, they are coupled with businesses that command industry-leading positions with world-scale assets and global capabilities. Assets included in this carve-out are: Dows U.S. Gulf Coast ChlorAlkali and Chlor-Vinyl facilities in Plaquemine, Lousiana, and Freeport, Texas, including Dows interest in the Dow Mitsui Chlor-Alkali joint venture in Freeport, TX;
60,000 metric tons annually, depending on product mix. After the successful capacity expansion for vinyl acetate-ethylene (VAE) copolymer dispersions in Nanjing site earlier this year, we are now ready to increase our dispersible polymer powder capacity as well, said Arno von der Eltz, president of Wacker Polymers. The market demand in China is continually growing, in particular for residential construction. The increasing trend towards construction of pre-decorated housing is also driving demand for ceramic tile adhesives, which require high-quality dispersible polymer powders. This capacity expansion will support market growth and strengthen our position as the leading manufacturer of dispersible polymer powders in China. Located in the Nanjing Chemical Industrial Park, Wackers Nanjing site manufactures VAE dispersions and dispersible polymer powders for the construction, coatings and adhesives sectors,
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as well as for a variety of other industries. Wackers backward-integrated polymer production not only ensures reliable raw material supply for dispersible polymer powders, but also enables synergies and economies of scale through a common infrastructure and energy supply.
Bayer to Expand Production Capacity of HDI & IPDI Coating Raw Materials
The rising demand for polyurethane automotive coatings has prompted Bayer MaterialScience to expand the production of two important coating raw materials: hexamethylene diisocyanate (HDI) and isophorone diisocyanate (IPDI). After a construction phase of a year and a half, the company has now commissioned the multipurpose plant at Chempark Leverkusen. It is integrated in our existing production operations for isocyanates and designed for the manufacture of both raw materials, said Hanno Brmmer, head of Production and Technology
in the Coatings, Adhesives, Specialties Business Unit at Bayer MaterialScience. Its modern equipment also is a response to the demands of customers for faster and more flexible delivery. The company invested some 35 million in the expansion project. It is also in line with Bayer MaterialSciences new sustainability concept, the aim of which is to increase valueadded for the benefit of society, thereby enhancing the quality of life. The raw materials produced in the new plant fulfill this requirement in that they support the production of performance automotive coatings with good durability and resistance. HDI and IPDI are also used in industrial coatings and adhesives.
The
coatingsworld.com
January 2014 www.coatingsworld.com Coatings World | 43
Industry News
Industry News
on its Changshu platform. The plant, part of Arkemas Coating Resins business unit, will serve customers in the Asia Pacific region with a full line of waterborne emulsion polymers for coatings and adhesives applications. This new plant, which represented a $30 million investment, is located in Arkemas Changshu manufacturing complex, the companys largest manufacturing complex worldwide. The full startup of this new facility is an important event for our customers in the Asia Pacific region, said Richard Jenkins, global group president of Arkema Coating Resins. We promised our customers local manufacturing of innovative, marketleading products, produced in a modern, automated facility with a focus on consistent, repeatable quality, and environmental responsibility. Our new facility delivers on each of those commitments and helps place Arkema in the forefront of raw material suppliers, both in the Asia Pacific region, and globally. The plant produces a range of emulsion polymers used as binders for architectural coatings, building and construction products, adhesives and specialty coatings. The products include Encor acrylic and styrene acrylic latexes; SNAP nano-acrylic polymers; Celocor opaque polymers; and Encor Flex elastomeric latexes. In addition to the waterborne products produced in the new plant, the company markets a comprehensive line of coatings raw materials, including solventborne resins, powder coating resins, and additives.
for coatings and construction, personal care, pharmaceutical, food and beverage customers in China. The facility is located in Shanghais Caohejing Industrial Park and currently employs approximately 50 chemists. Within the coatings sector, Ashland offers analytical and testing resources to continually assess market trends and develop next-generation additives that help customers improve the performance and value of their paint and coatings products. In addition to architectural, industrial, specialty and wood coatings, Ashland provides functional additives for paint removers, universal colorants and emulsion polymerization. In construction, Ashland products perform in a variety of applications including cement-based tile adhesives, renders, concrete, external insulation systems, mortar cements and self-leveling compounds. They provide functional properties including thickening and rheology control, water retention, adhesive strength, binding power, film formation, conditioning and deposition, colloid stabilization, suspending and emulsifying action.
conventional BDO are natural gas, butane, butadiene and propylene. BASF currently produces BDO and BDO equivalents at its sites in Ludwigshafen, Germany; Geismar, Louisiana; Chiba, Japan; Kuantan, Malaysia; and Caojing, China. In July BASF announced to increase its global capacities for BDO to 650,000 metric tons and for PolyTHF to 350,000 metric tons within the coming two years.
BASF Produces First Commercial Volumes of Butanediol from Renewable Raw Material
BASF has produced its first commercial volumes of 1,4-butanediol (BDO) from renewable raw material, and is offering this product to customers for testing and commercial use. The production process relies on a patented fermentation technology from Genomatica, based in California. The fermentation process uses dextrose as a renewable feedstock. The quality of BDO based on renewable raw material is comparable to petrochemicalbased BDO. BASF plans to expand its portfolio with selected BDO derivatives based on renewable feedstock, including Polytetrahydrofuran (PolyTHF). BDO and its derivatives are used for producing plastics, solvents, electronic chemicals and elastic fibers for the packaging, automotive, textile, and sports and leisure industries, among others. The starting materials for the production of
Ashland Adds Coatings & Construction Lab to its Shanghai Technical Center
Ashland Specialty Ingredients, a commercial unit of Ashland Inc., has added a coatings and construction lab in its Shanghai Technical Center. With 20 additional chemists, the newly expanded technical center houses laboratory facilities for research and development, application technology and services
molecular weights and alternative uses with unsaturated or fully saturated backbones.
New Monol Oligomer Technology Expands Applications for Cray Valleys Krasol Additives
Cray Valley has introduced Krasol LBH 5000M, the newest addition to its portfolio of liquid polybutadiene additives. The mono-hydroxyl functional oligomer (monol) is a versatile additive that supports new applications for reactive polybutadienes. The monol can also be hydrogenated to produce a clear liquid (Krasol HLBH 5000M). As a long-chain alcohol (C250), the monol retains resistance to acids and bases in harsh environments, is hydrolytically stable and is compatible with hydrocarbons. In composite systems the oligomeric chain can promote surface modification and adhesion, as well as hydrophobicity or rheological modification. Krasol is compatible with many substrates, including polyolefins. Krasol monols can be further modified for use as macromonomers, surfactants, compatibilizers, fluid additives and other value applications. Cray Valleys Krasol products are linear diols. The products are typically used in performance urethane applications that require excellent hydrolytic stability and chemical resistance. Commercial Krasol products are produced with a molecular weight range of 2,000-5,000 g/mol, contain 65 percent vinyl content, and have a glass transition temperature of approximately -45 C. Cray Valley is continuing to develop additional variants of the monol, which will create new technologies with various
Suppliers Corner
People
Archroma, a global manufacturer of color and specialty chemicals, and the former textile, paper and emulsions businesses of Clariant, has named Stephan Sielaff chief operating officer. Based in Reinach, Switzerland, Sielaff will oversee the business global production, manufacturing and integrated supply chain activities, ensuring the highest level of performance and efficiency to meet the companys commitment to world-class standards and high service levels, it was reported. Sielaff has spent the past eight years with Symrise, most recently as the senior vice president Global Operations of the Flavor and Nutrition business. Previously Sielaff held various roles in supply chain, innovation and engineering, as well as marketing at Unilever.
May 14 - 16, 2014 Coating Expo Vietnam 2014, International Coating, Pigment and Ink Exhibition and Conference
Location: Ho Chi Minh City, Vietnam Website: www.incoating.com Email: [email protected]
May 18 - 21, 2014 Southern Society for Coatings Technology 2014 Annual Technical Meeting
Location: Marriott Hilton Head Resort & Spa, Hilton Head, SC Contact: SSCT Website: www.ssct.org
February 24 - 28, 2014 41st Annual Waterborne, High-Solids, and Powder Coatings Symposium
Location: The Sheratorn Canal Street, New Orleans, LA Contact: School of Polymers and High Performance Materials at the Univeristy of Southern Mississippi Phone: 601-266-4475 Website: www.usm.edu
Meetings
Classifieds
C LASSIFIEDS
Blades Equipment for Sale
Stainless IT
CONN Blades
UHMW Poly
Stainless ITT
www.connblade.com
(814) 723-7980
1-800-243-ROSS
www.dispersers.com
WWW.COATINGSWORLD.COM
Classiedsv
Advertising Index
Company Name
American Coatings Show 2014 Chemark Consulting Conn & Company Eastman Chemical Company Hoover Color Corp McDaniel and Associates, PC Micro Powders Inc. Nubiola USA Reichhold, Inc.3 Shamrock Technologies Inc. Siltech Corporation SincolUSA Corporation Tiger Troy Corporation
Page
Phone
Website
www.american-coatings-show.com www.chemarkconsulting.net www.connblade.com www.eastman.com www.hoovercolor.com www.technologylitigators.com www.micropowders.com www.nubiola.com www.Reichhold.com www.shamrocktechnologies.com www.siltechcorp.com www.sincol.com.cn
27, Inserts polybagged 43 17 13 Cover 4 15 7 4 3 Cover 2 15 37 910-692-2492 814-723-7980 800-EASTMAN 540-980-7233 512-472-8282 914-793-4058 770-277-8819 800-431-1920 973-242-2999 416-424-4567 909-931-9954
Final Coat
et over the Bow River in the town of Banff, the Bow River Pedestrian Bridge, with a clear span of 80 meters, is considered the longest timber bridge of its kind. Two specially selected Sansin Enviro Stains were chosen to protect the bridges wood structures. Wood decking was selected to allow drainage and reduce build-up of snow and ice in the winter. The 113 timber deck panels are removable for easy access to newly installed pipes running underneath them.
Sansin Products Featured on the Bow River Pedestrian Bridge: First coat: Sansin KP11-S a ready-to-use, penetrating, low-VOC coating that provides a long-term protective undercoat for millwork and wood products that are subject to wet conditions. Sansin KP11-S is designed to reduce swelling, wood rot and moisture absorption. Second and third coats: Sansin SDF Top Coat a high solids version of its flagship SDF product, which can be used as an impenetrable maintenance coat, offering maximum protection from discoloration, UV degradation and water staining.
The bridge was formed by two 40 meter tapered haunch girders, cantilevering from either side to support a central 34 meter suspended span.
January 2014
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