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Imagination and practicality


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ASH-3033 CoatingsAd-Coatings
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November 2013 Vol. 18, No. 11 Table of Contents

32

Exterior Architectural Coatings Market


Cover photo and image above courtesy of Dunn-Edwards.

37

Adhesives and Sealants Market

COLUMNS

International Coatings Scene ............................... 24


Europe Eastern Europe Economic Difculties Dampen
Demand for Coatings
Latin America Venezuelan Paint Market Under Pressure
Africa Kansai Paint Strategy for Africa Stirs Regions
Major Markets

Business Corner ................................................... 30


Distributors are Very Important... Sometimes

DEPARTMENTS

Editors Page.......................................................... 6
As We Go to Press ................................................. 8
Index to Companies ............................................... 8
Fresh Paint ........................................................... 10
Market Reports .................................................... 21
Financial News ..................................................... 22
New Products ...................................................... 23
Industry News ...................................................... 40
Suppliers Corner .................................................. 44
People.................................................................. 46
Meetings .............................................................. 47
Final Coat............................................................. 50

ADVERTISING SECTIONS

Classified Ads....................................................... 48

Advertising Index................................................. 49

COATINGS WORLD (ISSN 152-711-29) is published monthly by Rodman Media Corp., 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: (201) 825-2552; Fax (201) 825-0553.
Periodical postage paid at Ramsey, NJ 07446 USA and additional mailing offices. Publications Mail Agreement No: 40028970. Return Undeliverable Canadian Addresses to
Circulation Dept. PO Box 1051, Fort Erie, On L2A 6C7, circulation@rodmanmedia.com. POSTMASTER: Send address changes to: Coatings World, 70 Hilltop Rd., Ramsey,
NJ 07446. Free subscriptions to Coatings World are available to qualified individuals. Others are as follows: U.S. one year $75; two years $120. Outside U.S. and overseas:
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determine qualification of free subscriptions. Printed in the USA. Coatings World is used under license from Whitford Worldwide. Coatings Worlds circulation is audited by
BPA International.
November 2013

5 TOC 1113.indd 5

www.coatingsworld.com

Coatings World | 5

10/29/13 3:21 PM

Editors Page

Improving Housing
Market Bodes Well
for Coatings, Adhesive
and Sealants Markets

ccording to a recent report from the National Association of


Realtors, new-home sales are at a five-year high. Despite rising
mortgage rates, single-family new-home sales rose 8.3 percent in
June to the highest level since May 2008, the Commerce Department reported. Single-family new-home sales were up 38.1 percent compared to
June of last year the largest year-over-year increase since January 1992.
According to data from the National Association of Realtors, total existing-home sales this year will be 10 percent higher than 2012, reaching
more than 5.1 million, and are likely to hold even in 2014. The national
median existing-home price is expected to rise 11 to 11.5 percent for all of
2013, but moderate to a 5 to 6 percent gain in 2014.
These positive gains are being felt by manufactures of paint, coatings,
adhesives and sealants. In the two feature articles in this issue, manufacturers attributed improvements in their business with improvements in the
housing market.
In Exterior Architectural Coatings Market (page 32), coatings manufacturers I interviewed reported growth that was being fueled by an improved housing market and an increase in consumer confidence.
The rebound in construction activity is a key driving force in this improvement, said Ethan Opolion, product manager at Dunn-Edwards.
This positive sentiment was also reflected in associate editor, Bridget
Klebaurs article, Adhesives and Sealants Market (page 37). According
to her article, home sales are the highest levels they have been in four years
and home builders continue to hire additional workers in anticipation of a
continued robust housing market.
Despite these positive reports, there is no doubt that consumer confidence took a hit with the recent 16-day government shutdown. Economists
worry that the conflict in Washington could damage the U.S. economy.
Lets hope this proves to be a temporary setback and the positive trend
continues into 2014.

kpianoforte@rodmanmedia.com

A Rodman Media Publication


70 Hilltop Road Ramsey, NJ 07446 USA
(201) 825-2552 Fax: (201) 825-0553
Web site: www.coatingsworld.com
EDITOR
Kerry Pianoforte kpianforte@rodmanmedia.com
VICE PRESIDENT/EDITORIAL DIRECTOR
Tom Branna tbranna@rodmanmedia.com
ASSOCIATE EDITOR
Bridget Klebaur bklebaur@rodmanmedia.com
ART DEPARTMENT
Michael Del Purgatorio
mdelpurgatorio@rodmanmedia.com
INTERNATIONALCORRESPONDENTS
Sean Milmo (Europe)
Charles W. Thurston (Latin America/Americas)
CONTRIBUTING EDITORS
Phil Phillips
EDITORIALADVISORYBOARD
Jim Berry (Berry Environmental)
Joseph Cristiano (consultant)
Thomas Frauman (consultant)
Joseph Prane (consultant)
Isadore Rubin (consultant)
Richard M. Tepper (PPG Industries)
Shelby F. Thames (University of So. Mississippi)

PRESIDENT
Rodman J. Zilenziger, Jr.
rzilenziger@rodmanmedia.com
EXECUTIVEVICEPRESIDENT
Matthew J. Montgomery
mmontgomery@rodmanmedia.com
GROUPPUBLISHER / ADVERTISINGSALES
Dale Pritchett dpritchett@rodmanmedia.com
ADVERTISING SALES (U.S.)
Kim Clement Rafferty krafferty@rodmanmedia.com
ADVERTISING SALES (Europe)
Baudry Boisseau Associates
27 Rue J. Lebeau- B-1000, Brussels, Belgium
Tel.: 32-(0)2-513-06-47 Fax: 32-(0)2-514-17-38
baudry@baudryboisseau.com
ADVERTISING SALES (Hong Kong, Taiwan & China)
Ringier Trade Publishing Ltd
401-405 4/F New Victory House
93-103 Wing Lok Street, Sheung Wan, Hong Kong
(852) 2369 8788 Fax:(852) 2869 5919
mchhay@ringier.com.hk
CLASSIFIEDADVERTISING SALES
Patty Ivanov 631-642-2048; Fax 631-473-5694
pivanov@rodmanmedia.com
PRODUCTIONMANAGER
Patricia Hilla philla@rodmanmedia.com
AUDIENCE DEVELOPMENT MANAGER
Joe DiMaulo jdimaulo@rodmanmedia.com
CIRCULATION MANAGER
Richard DeVoto rdevoto@rodmanmedia.com
ONLINE DIRECTOR
Paul Simansky psimansky@rodmanmedia.com
Coatings Worlds circulation is audited by BPA Worldwide.

6 | Coatings World www.coatingsworld.com

6 Editorial 1113.indd 6

November 2013

10/29/13 11:01 AM

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10/8/13 10:26 AM

As We Go To Press

AkzoNobel Opens
New Coatings Plant in India

AkzoNobel has strengthened its manufacturing footprint in India by opening a


new 20 million decorative paints plant
in Gwalior, which will have an annual capacity of 55 million liters.
The eco-efficient Greenfield facility
AkzoNobels sixth factory in India will
supply a range of decorative paints and
create improved distribution channels for
the popular Dulux brand. The new site
will also help speed up transportation
times and reduce the cost of logistics.
Speaking at the official inauguration, AkzoNobel CEO Ton Bchner
said: India plays an extremely important role in our growth strategy
and the new Gwalior site underlines
our commitment to creating a leading coatings powerhouse in India. As a
global leader in sustainability, Im also
pleased that the plant has focused so
heavily on energy, water and resource
conservation, which will be vital in
helping us to create more value from
fewer resources.
The Gwalior plant will provide
cost-effective access to key markets
in the northern and central areas of
India, added Amit Jain, managing director of AkzoNobel India. This will
greatly reinforce our strategy of expanding Dulux distribution, as well as
improving customer service in these
high growth regions.
The factory has been built on
9,000m2 of land, with a greenbelt area of
9,000m2, while sufficient infrastructure
is in place to support future expansion
plans. Provision has also been made to
accommodate key suppliers, allowing for
a smoother manufacturing process.
Special sustainability features include
rainwater harvesting and energy efficient
pumping systems, while 20 percent of
the roofing area allows natural daylight
to flood in, reducing the need for artificial lighting.
AkzoNobel currently employs approximately 1,800 people in India.

PPG Celebrates 50th


Anniversary of Electrocoat
Technology
PPG Industries recently celebrated the
50th anniversary of its electrocoat (ecoat) technology at the Coatings and
Resins Research Center in Springdale,
Pennsylvania. More than 100 employees
from Springdale and the PPG Coatings
Innovation Center in Allison Park attended. They were joined by PPG retirees

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........................................................................................8, 10, 22, 50


Aremco Products.............................................................................................. 23
Axalta Coating Systems.................................................................................... 10
BASF................................................................................................................ 10
Benjamin Moore.............................................................................................. 46
BehrPro............................................................................................................ 10
Carboline......................................................................................................... 23
Cortec.............................................................................................................. 23
Crown Paint..................................................................................................... 28
DAP................................................................................................................. 37
H.B. Fuller....................................................................................................... 37
Helios .............................................................................................................. 10
Henkel............................................................................................................. 37
Kansai Paint..................................................................................................... 28
NOFMetal Coatings Group............................................................................. 10
Nippon Paint.................................................................................................... 10
PPG.............................................................................................8, 10, 22, 23, 46
The Sherwin-Williams Company...................................................................... 10
Tremco............................................................................................................. 37
Valspar............................................................................................................. 10
3M................................................................................................................... 37

8 | Coatings World www.coatingsworld.com

8 As We Go 1113.indd 8

who were instrumental in developing the


breakthrough corrosion-protection technology that is now used by automakers
and industrial OEMs around the world.
PPG launched its first industrial e-coat
service line in 1963 for General Electric.
Today, PPG operates more than 1,000
e-coat tanks to support major global industrial and automotive manufacturers,
including Caterpillar, General Electric,
John Deere and Whirlpool. CW

November 2013

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Fresh Paint

AkzoNobel Opens New Dutch Lab

AkzoNobel has opened a new center


for research at its Sassenheim site in the
Netherlands. Along with a research center in Slough in the UK and Singapore,
the Dutch location is now one of the
main research centers for AkzoNobels
Decorative Paints portfolio.
The new facility in Sassenheim will
focus on research into decorative paints,
wood adhesives and pre-deco products,
while Slough will concentrate more on
wall paints. Recent innovations involve
fast-drying paints, which can also be applied and repainted at low temperatures.
The new facility will house approximately 100 scientists, bringing the total
number of people working in research, development and innovation (RD&I) at the
Sassenheim site to approximately 400.
Sustainable innovation is key to our
success and the new center is a valuable
investment, which will enable us to organize our research activities more efficiently and effectively, said Ruud Joosten,
AkzoNobels executive committee member responsible for Decorative Paints.
Added
director
global
R&D
Decorative Paints, Andr van Linden:
Sassenheim is already a major research
hub, but strengthening our power to innovate means we will be better positioned to focus on delivering pioneering
products and technologies that make a
real difference to our customers and our
markets.
Boosting Sassenheims RD&I knowhow also means that the site has further
enhanced its position as a key center of
expertise, where researchers and scientists can share knowledge and contribute
to the development of new technologies
not only for decorative paints, but also
for many of the companys other businesses located in Sassenheim.

Valspar Awarded Top Metal


Construction Award
The Valspar Corporation has been
named
the
Metal
Construction

Associations Chairmans Award recipient for Overall Excellence in its


participation with the Central Arizona
College, Maricopa Campus project.
The award, presented at METALCON
International, an annual metal construction tradeshow, honors MCA
members for outstanding building projects across the world. This year, a panel
of three architect judges reviewed more
than 90 architectural projects to determine award winners based on innovation and creativity.
Designed by SmithGroupJJR, the
76,000 square foot facility consists of
four buildings featuring classrooms,
community meeting spaces, a library
and a culinary arts kitchen. Located in
the Maricopa community, the campus
serves more than 15,000 students and
1,000 faculty members. The project was
unveiled two years after the projects
ground breaking ceremony. The $18 million project was also the Grand Award
Winner of the 2013 Metal Architecture
Design Awards.
Valspar provided a Fluropon coating
for the Cor-Ten AZP color that was applied in a three-coat process by Precoat
Metals to create a unique, rusted and
desert-inspired appearance to embrace
the campus Native American roots,
while providing the metal with advanced
protection against the elements. The
Fluropon coating, containing 70 percent
PVDF resins, provides the strongest protection against weathering, aging and
pollution and exceptional color retention
to preserve the beautiful aesthetic of the
facility for years to come, according to
the company.
The award ceremony took place at
the Georgia World Congress Center
during the METALCON trade show
that highlighted project participants
including Metal Sales Manufacturing
Corporation, US Steel, Precoat Metals,
SmithGroupJJR, CORE Construction
and Kovach Building enclosures.

10 | Coatings World www.coatingsworld.com

10-20 Fresh Paint 1113.indd 10

BEHRPRO Supports
Community Beautification
BehrPro, the professional products
and services group of Behr Process
Corporation, was the official paint sponsor and active participant in this years
Hands On Atlanta Day, the citys largest civic engagement day dedicated to
transforming Greater Atlantas communities. In support of the city-wide effort, BehrPro donated 155 total gallons
of paint, including Behr Premium Plus
Ultra, Behr Premium Plus, Behr Premium
Weatherproofing All-In-One Wood Stain
and Sealer and Behr Premium Porch
and Patio Floor Paint. A team of 25 local BehrPro volunteers also joined forces
with more than 7,000 event participants
to revitalize and beautify approximately
65 organizations, in just one day.
Raquel Hudson, associate director
of corporate volunteerism at Hands On
Atlanta, selected BehrPro as the exclusive
supplier of paints and stains for the organizations largest event of the year after
success with Behr products on previous
residential and commercial projects.
Beyond the companys high-quality product offerings, Hudson and her team has
come to rely on the comprehensive portfolio of professional services available
through the BehrPro program, including
jobsite delivery, factory tinting and expert advice provided by representatives.
She stated, Having a dedicated BehrPro
rep to help us select paints, provide advice and deliver product right to the jobsite has been crucial in streamlining our
operations.
With the majority of Hands On
Atlanta Day projects focused on restoring
high-traffic areas, such as local schools or
community centers, it was critical that
the paint be durable enough to withstand
consistent wear and tear, said Hudson.
However, it was important that the
paint was easy for our volunteerssome
of whom have limited experience with
large-scale paint projectsto apply in
November 2013

10/29/13 3:29 PM

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Fresh Paint

a short period of time. We also


prefer to use bright, vibrant colors to create uplifting and inviting environments. Fortunately,
we were able to find a variety of products that met all the criteria through the
BehrPro program.
BehrPro sales representative Phillip
Hayes led volunteer efforts on behalf of
the company and worked with Hudson
and her team to identify the most fitting
products for Hands On Atlanta Day projects. With everything from classrooms to
picnic tables and murals requiring attention, Hayes and the BehrPro team were
able to provide on-site expertise and help
train volunteers on how to quickly and
effectively complete the paint jobs.
We were honored to join the 23rd
Annual Hands On Atlanta Day and be
a part of the thousands of community
members who donated time and labor to
help restore the schools and non-profits
in need, Hayes said. With BehrPros
portfolio of high-quality products,
Atlanta will receive the beautification it

deserves, with lasting durability that requires less maintenance.

Axalta Receives Best


Performance Vendor Award
from Tata Marcopolo
Axalta Coating Systems in India received
the Best Performance Award from Tata
Marcopolo Motors Ltd, an India-based
joint venture between Tata Motors and
Marcopolo S.A. of Brazil. With daily production reaching almost 70 buses during its peak season, Tata Marcopolo has
become one of Asias leading bus manufacturers. This is the third consecutive
year that Tata Marcopolo selected Axalta
Coating Systems for its award out of its
pool of suppliers, acknowledging Axaltas
commitment to provide consistent, highperformance coatings solutions.
We are very proud to receive
this prestigious award, said Vinay
Rajadhyaksha, managing director, Axalta
Coating Systems India Pvt. Limited. The
award recognizes the close collaboration
between Tata Marcopolo and our team.

We look forward to strengthening our


successful partnership by offering distinguished and innovative services to support Tata Marcopolos growth.
Axalta has been Tata Marcopolos exclusive coatings supplier since 2008. Two
Axalta systems in particular contributed
to the award. Axaltas wet-on-wet paint
system has supported Tata Marcopolos
more than five-fold increase in production by offering increased productivity
and energy savings. In addition, Axaltas
value engineering programs have helped
improve Tata Marcopolos production
line by improving the skills of workers
and reducing costs.

PPG Teams with Mitchell


Link Repair Management
Systems
PPG Industries automotive refinish
business has teamed with Mitchell
International, Inc., to offer a comprehensive, integrated repair management
system to collision centers across the
U.S. and Canada. The system combines

PPG Donates Winter Supplies to Yushu County in China for Sixth Consecutive Year
PPG Industries employees from 11 sites in China recently donated clothing, bedding and school supplies for people in
Yushu County, Qinghai Province. The warm winter program
has been led by PPG volunteers for six consecutive years, and
this year PPG volunteers at sites in Tianjin, Shanghai, Zhangjiagang, Wuhu, Foshan, Guangzhou, Kunshan and Suzhou collected supplies that will be delivered to schools and poverty
care stations in Nangqian village, Yushu County, ahead of
the typically harsh winters experienced in the region. Since
unexpectedly heavy snow fell on Yushu County in 2008, PPG
China has encouraged employees to donate money and winter clothes for people in this area. When an earthquake struck
the county in April 2010, PPG supported disaster-relief efforts
by donating essential items to help improve living conditions
there. Our involvement in the warm winter program demonstrates PPGs core value of recognizing the concerns and
needs of society, said Cathy Yan, PPG general manager for
government affairs and business development, Asia Pacific.
We will continue to expand our Chinese volunteer initiatives
and to encourage more employees to engage in charitable
endeavors in the areas of education, environmental protection and community donations. Since the PPG China Volunteer Association began in 2011, PPG has established five
volunteer teams with 260 registered members.

12 | Coatings World www.coatingsworld.com

10-20 Fresh Paint 1113.indd 12

November 2013

10/29/13 3:29 PM

In commenting on the announcement, Hidefumi Morita, president of


NP-USA and CEO of NPAC, stated,
The sale of Seibert Powder Coatings
is consistent with Nippon Paints management strategy, which seeks to focus
on growing its core businesses. We are
very pleased that we are able to sell our
powder paint segment to Protech, a

Fresh Paint

PAINTMANAGER software from PPG


with the REPAIRCENTER ToolStore
program from Mitchell, which is a
provider of technology, connectivity
and information solutions to the property and casualty claims and collisionrepair industries.
PaintManager software is a proprietary network solution that helps boost
collision center productivity by combining computerized color mixing accuracy
and efficiency with comprehensive reporting and tracking features. Efficiency
can be enhanced further by incorporating
PPGs paint shop interface utility, which
enables sharing of critical workflow information between the front office and
the paint operation.
The RepairCenter ToolStore program is a dynamic marketplace that enables body shops to connect with their
mission-critical collision repair trading
partners and third-party add-on tools
to streamline workflow and run their
businesses more profitably and efficiently. According to the company, by
combining PaintManager software with
the RepairCenter ToolStore program,
collision centers can generate a seamless, easily accessible data stream to
monitor and manage body shop repair
and paint procedures. This will enable
them to operate more efficiently while
augmenting repair productivity and increasing revenue opportunities.

company sincerely committed


to continuing to provide quality powder paint to the market.
NPACs liquid paint division will continue to supply paint and
coatings to its OEM and Tier automotive customers. We will continue to
focus on providing the highest quality paint to our existing automotive

Nippon Paint USA Sells


Seibert Powder Coatings
Nippon Paint (USA) Inc. (NP-USA), a
subsidiary of Nippon Paint Co., Ltd. of
Osaka, Japan, has reached an agreement with Protech Chemicals Ltd. to
sell the powder coating business of NPA
Coatings Inc. (NPAC), also known as
Seibert Powder Coatings.
Seibert Powder Coatings is a division
of NPAC, a wholly owned subsidiary
of NP-USA, located in Cleveland, Ohio.
Terms of the asset sale were not disclosed.
The transaction is expected to be finalized by November 15, 2013.
Protech plans to continue to manufacture powder paint at the Cleveland
facility and offer employment to the vast
majority of current employees.

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November 2013 www.coatingsworld.com

10-20 Fresh Paint 1113.indd 13

North America
Phone: +1-800-973-7873
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Coatings World | 13

10/29/13 3:29 PM

Results of U.S. Architectural Coatings Industry Research Report


Which Compared Business Trends in September 2013 vs. September 2012
Each month, Northcoast Research surveys a large sample of paint
retailers throughout the U.S. to get a sense for current business
trends. Please note that of the three primary architectural coatings channels (paint stores, home centers and retail distributors),
this survey is primarily reflective of the distributor channel which
tends to see volume growth less than the industry; therefore, view
the results as a directional indicator more so than absolute industry volumes. For inquiries regarding this report contact Kevin Hocevar at 216-468-6924 or kevin.hocevar@northcoastresearch.com.
Architectural Coatings Sales Volumes Up 1.3% in September vs. Last Year
According to industry participants, average sales volumes in September rose 1.3% year-over-year and slightly contracted from the
2.5% level in August. Our survey respondents tend to cater more
towards the do-it-yourself painter (DIY) and given existing home
sales, which tends to correlate higher with DIY sales than new construction, has grown 12% this year we expect results to continue
to trend positively. Overall, 62% of respondents witnessed an increase in volumes vs. only 23% that saw volumes decline, which
averaged out to 1.3% volume growth and a net increase of 39%.
Price of Paint from Suppliers Paint Prices Up vs. Last Year
but Growth Slows
65% of contacts noted a year-over-year increase in the cost of
a gallon of paint from suppliers in the month of September as
our paint price index increased 1.4%. This compares to a yearover-year increase of 1.0% and 1.5% in August and July, respectively. Price increases issued by paint manufacturers in 2012 as
a result of recovering raw material inflation are starting to anniversary and thus year-over-year price increases are becoming
less pronounced a trend that is likely to continue. We believe
the trend of flat pricing will be sustained as 83% of respondents
reported that there have been no price increase notifications issued from paint suppliers at this time.

Raw Materials TiO2 Prices appear to be Bottoming Out


Throughout 2013, titanium dioxide (TiO2) has been on a downward trend but our research suggests a floor is being reached.
In recent weeks a few grades of paint grade TiO2 have witnessed small price increases in the range of 1-3%. The success
of these increases is yet to be determined however TiO2 inventories are beginning to become more balanced and as utilization rates increase, we would not be surprised to see successful price increases by the end of 2013. Propylene prices have
been rebounding since April; however, they are still below highs
seen in February and actually began to tick down over the past
couple of weeks.
Paint Inventory Levels Inventories Remain Fairly Balanced
75% of respondents stated that current paint inventory levels
at their location are in-line with current business conditions and
they are maintaining current levels of purchasing. Only 10% of
contacts noted that current paint inventory levels are too low
while the remaining 14% of participants revealed that paint inventory levels were too high in September. Overall, we believe
that inventories are well-aligned with current demand levels.
3 Month Outlook Outlook Positive with a Hint of
Seasonality
Our proprietary Architectural Coatings Outlook Index reached
a 0.35 for the month of September compared to a level of 0.57
in August. Note that the highest possible reading is +2 (indicating all contacts have a very positive outlook) and the lowest possible reading is -2 (indicating all contacts have a very
negative outlook. A reading of 0.35 is a positive translation
(albeit at a slightly lesser rate than August) as it indicates that
contacts within the industry maintain a favorable outlook but
expect general slowdowns in-line with seasonal patterns over
the near term now that the more robust summer months have
come to an end.

Northcoast Research Time Series


Index

March

April

May

June

July

August

September

Volume (vs. prior year)

1.3%

1.8%

2.0%

2.3%

0.8%

2.5%

1.3%

Price (vs. prior year)

1.5%

1.5%

2.0%

2.1%

1.5%

1.0%

1.4%

% of Contacts Expecting
a Price Increase

28%

18%

17%

17%

17%

14%

17%

Outlook

0.85

0.68

0.43

0.70

0.30

0.57

0.35

Northcoast Research Time Series Index for Architectural Coatings

14 | Coatings World www.coatingsworld.com

10-20 Fresh Paint 1113.indd 14

November 2013

10/29/13 3:29 PM

BASF and Volkswagen


Present Science Award
Electrochemistry to Dr. Karl
Mayrhofer
The international Science Award
Electrochemistry
from
BASF
and Volkswagen was awarded to
Dr. Karl Mayrhofer, work group
Electrocatalysis,
Max-PlanckInstitut fr Eisenforschung, Dsseldorf,
Germany. The jury of representatives
from BASF, Volkswagen and from
academia selected Mayrhofer for the
outstanding results of his research on
electrocatalysts, which are crucial for
the life expectancy of fuel cells. The scientist has developed new test and analysis methods which enable direct visual
investigation of degradation pathways
for different catalysts, and which identify fully automatic appropriate materials

for catalysts. These research results are


an important contribution to realizing
highly active and stabile electrocatalysts for efficient electrochemical energy
converters.
With
the
Science
Award
Electrochemistry, which is endowed
with prize money of 50,000, BASF and
Volkswagen support outstanding scientific and engineering achievements in the
electrochemistry, and provide an incentive for the development of high-performance energy stores.
The Science Award Electrochemistry
(www.science-award.com ) has been
presented annually since 2012 and targets top scientists in the global academic research community. This is the first
science award to be presented jointly
by two companies on a cross-sectoral
basis. The prize money is intended as
start-up funding for further research activities and is to be used for laboratory
equipment, scientific events or to fund
highly qualified employees.

November 2013 www.coatingsworld.com

10-20 Fresh Paint 1113.indd 15

Ring International
and Helios Enter
Into Share Purchase
Agreement

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customers while seeking to expand our


business throughout North America,
said Morita.

Helios Domale d.d. and Ring


International Holding (RIH), a Viennabased industrial group active in the fields
of stationery products and industrial
coatings, agreed on the terms and conditions of a share purchase agreement (SPA)
in which RIH is to acquire 73.12 percent
of the shares in Helios. Completion of
the share transfer is still subject to certain conditions customary for his type
of transaction, including merger control
clearance. Once the share transfer is completed, RIH will in accordance with
applicable Slovenian law publish the
takeover intention and subsequently a
mandatory takeover offer to theremaining minority shareholders of Helios.
Strongly believing in the strengths and
prosperous future of Helios, RIH will
integrate part of its existing coating division into Helios operations with the aim

Coatings World | 15

10/29/13 3:29 PM

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of increasing efficiency of the


combined group, through economies of scale, innovation and the
realization of synergies especially in the fields of R&D, and by unifying
branding and marketing, according to the
company. R&D activities of the enlarged
group will be centralized in Slovenia in
order to concentrate all knowledge and
innovation in Helios Domale. RIH, thus
intends to preserve and further create
highly skilled workplaces in Slovenia.
Helios will become the headquarter of
the combined entity and the umbrella
brand of the new combined entity and
shall become an active consolidator of the
coating industry in Europe, with a special
focus on SEE (South Eastern Europe)
and CIS (Commonwealth of Independent
States) region. RIH will further develop
the Helios brand and its main brand
names. Slovenian main manufacturing
locations shall remain the centerpiece of
Helios business activities. Employment
levels at Helios in Slovenia shall be substantially maintained or increased.
Helios is a leading manufacturer
of coatings in South Eastern Europe.
Headquartered in Slovenia (Domale
near Ljubljana), Helios employs approximately 2,200 employees and runs
ten productionplants located in Slovenia,
Croatia, Russia, Serbia and Ukraine. The
companys product portfolio covers the
full spectrum of coating products, including decorative coatings, car refinishing coatings, coatings for metal industry,
coatings for wood industry, powder coatings, road marking paints and synthetic
resins. The company reports that it holds
leading market positions in selected geographies and product categories with
a strong portfolio of well-known established brands such as Mobihel, Helios,
Chromos, Belinka, Zvezda, Colomix,
Odilak, Duga and Color.

PPG Architectural Coatings


Joins Growing HomeSphere
Network of Preferred
Manufacturers
HomeSphere Inc. announced that PPG
Architectural Coatings will join its growing digital lead-generation and customer
loyalty platform, opening up new revenue

opportunities for the brand.


A respected paint industry leader,
PPG will connect HomeSpheres growing builder network to its wide range of
interior and exterior paints and stains,
caulks and adhesives, including the recently added Glidden Professional Paints
and products that meet the most stringent environmental standards. Its popular brands, including Pittsburgh Paints,
Olympic and Martha Stewart Living, are
distributed through home centers, independent dealers and a network of company-owned stores across North America.
With our strong suite of brands and
large distribution network, PPG is uniquely positioned to service the new residential market, said PPG national business
development manager Carl Howell.
HomeSphere connects our team to a
much broader base of home builders that
can benefit from our variety and environmentally-conscious paints and coatings.
PPG joins nearly 75 preferred manufacturers using HomeSphere BRI and its
industry-first digital marketing services
to connect with a growing network of
regional and local builders. Members of
HomeSpheres extensive builder network
are staged to construct nearly 20 percent of the total new single-family homes
forecast in 2013. Nationally, local and
regional builders construct 75 percent of
current new-build homes.

Keep America Beautifuls


Graffiti Prevention Grant
Awards Presented to Seven
Local Organizations
Keep America Beautiful (KAB) announced the winners of the 2013 Graffiti
Hurts Grant Program. This year, KAB
provided four $2,500 cash grants as well
as two $2,500 paint supply certificates
from The Sherwin-Williams Company.
Q-Star also provided a FlashCAM, valued at $6,995, to one deserving recipient.
The FlashCAM is a deterrent system effective in preventing illegal trespassing
during hours it most often occurs.
$2,500 cash grant recipients:
Population
>250,000:
Keep
Riverside Clean & Beautiful,
Riverside, California

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10-20 Fresh Paint 1113.indd 16

Population 75,000 250,000: City


of Baton Rouge, Baton Rouge,
Louisiana.
Population < 75,000: Coastal
Carolina University, Conway, South
Carolina and Keep Hammond
Beautiful, Hammond, Louisiana.
$2,500 Sherwin-Williams paint supply
certificate recipients:
Population > 75,000: Keep Las
Vegas Beautiful, Las Vegas, Nevada.
Population 75,000 250,000:
Keep Alachua County Beautiful,
Gainesville, Florida.
Q-Star FlashCAM recipient:
Eight Mile Boulevard Association,
Detroit, Michigan.
The recipients of this years Graffiti
Hurts Grant Program awards reinforce
how volunteer engagement can help
mitigate damage that can be caused by
graffiti vandalism, said Becky Lyons,
COO of Keep America Beautiful. Were
very grateful to The Sherwin-Williams
Company for its ongoing support of the
Graffiti Hurts program, which provides
communities with valuable tools and resources to abate graffiti.
Responding to the blight of graffiti
vandalism, the Graffiti Hurts program
was developed in 1996 through a partnership between Keep America Beautiful,
the nations largest nonprofit that builds
and sustains vibrant communities, and
The Sherwin-Williams Company, maker
of Krylon paint. The Graffiti Hurts Grant
Program was initiated in 2007. According
to the U.S. Department of Justice, graffiti contributes to lost revenue associated
with reduced ridership on transit systems, reduced retail sales, and declines in
the value of surrounding residential and
commercial property.
The Graffiti Hurts Grant Program
augments the power of local partnerships, volunteerism and community
engagement in beautifying communities while eradicating blight, said Ian
L. Gresham, vice president of marketing, Diversified Brands Division,
The
Sherwin-Williams
Company.
Sherwin-Williams is proud to be a
November 2013

10/29/13 3:29 PM

NOF Metal Coatings Group


Major Partner of the Wind
Power Sector
A worldwide leader in anti-corrosion
protection of metallic parts based on zinc
flake chemical compounds in aqueous
phase, the NOFMetal Coatings Group
is a partner of choice in the automobile
industry, the company reported. Having
set its reputation on the performance of
its coatings and the quality of its services, the international group confirms
its presence in the developing wind
power sector. Companies such as Vestas,
Gamesa, Alstom Wind, Acciona, Clipper
Windpower and Vergnet have approved
the technologies commercialized by NOF
Metal Coatings.
The common goal of all participants
in the global wind market, OEMs, suppliers, distributors or bolt makers, is to

respond to the customers needs and


to meet their requirements. Thanks to
its global network and international
dimension, the NOF Metal Coatings
Group has adopted an approach based
on support and therefore is seen as a
key partner to all participants in the
wind power industry.
With
the
range
of
coatings
DACROMET and GEOMET, as well as
the topcoats PLUS, widely used in the automobile industry, NOF Metal Coatings
provides a long-term solution for the
wind energy sector and a response to
its specific technical requirements. The
low-thickness of the coatings and their
anti-corrosion protection mechanisms
guarantee the performance and reliability
necessary in very aggressive wet and saline environments.
NOF Metal Coatings global licensees network is capable of meeting
the coating needs on metallic parts of
the wind power sector in terms of application processes (Dip-Spin and Spray

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supporter of Graffiti Hurts and commends the vision of this years awardwinning local initiatives.

process on frame or rack) as


well as production volumes.
In 2013, the NOF Metal
Coatings Group renewed its
participation in the China Wind Power
tradeshow in Beijing with major companies of the wind energy sector.

PPG Donates $72,000 for


Education-related Initiatives
in Greater Pittsburgh Area
The PPG Industries Foundation has
donated $72,000 recently to education-related initiatives in the Greater
Pittsburgh area, where the company
maintains its global headquarters and
several facilities. The grants highlight
PPG Industries commitment to supporting its local communities and the
foundations top funding priority of
backing educational programs.
The recent grants have funded:
Allegheny Intermediate Units Math
& Science Collaborative program

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November 2013 www.coatingsworld.com

10-20 Fresh Paint 1113.indd 17

Coatings World | 17

10/29/13 3:29 PM

Fresh Paint

Fred Rogers Center of Saint


Vincent Colleges Early
Learning Environment
Girl Scouts of Western
Pennsylvanias Color of
Science program
Pirates Charities Pittsburgh Pirates
Education Days program
YMCA of Pittsburghs effort to provide scholarships for students and
chaperones to attend the YMCA
Europe Festival in Prague.

PPG is strongly committed to supporting educational programs in the communities where it has a presence, said
Sue Sloan, executive director of the PPG
Industries Foundation. As Pittsburgh is
PPGs global headquarters community,
we are very pleased to support so many
organizations in the area that do great
work in advancing an array of learning
opportunities.
Established in 1951, the PPG Industries
Foundation demonstrates the values of
PPG Industries by enhancing the quality
of life in communities where the company
has a presence. Interests of the foundation, in order of priority, are education,
human services, culture and arts, and
civic and community affairs. PPG also
supports charitable causes by encouraging employees volunteerism and board
service with nonprofit organizations.

PPG Launches Enhanced


ColorMobile Software
Application
PPG Automotive Refinish has introduced
an updated and improved version of the

COLORMOBILE software application.


Designed for smartphones and tablets,
the new application allows quick and easy
mobile retrieval of the most up-to-date
PPG color information. Collision industry professionals using PPG and NEXA
AUTOCOLOR products now have free
access, 24/7, to the latest Prime, Variant
and Special field formulas anywhere there
is an Internet connection.
We are very excited about the new
ColorMobile application and the convenience it offers, said Mary Kimbro,
PPG global color director. We designed
the application for personnel requiring
immediate access to vital color information. Sales and technical representatives
frequently need to answer color questions any time of the day or while theyre
on the roadaway from their desktop
computers. With ColorMobile, obtaining
color information quickly and accurately
is easier than ever.
The ColorMobile application features
a user-friendly screen and enhanced functionality including streamlined searching
based on a users individual preferences.
General search results may be obtained
through a variety of categories such
as vehicle manufacturer, OEM/brand
codes, model, year, color description
and others. Once results are presented,
the user can expand the Formula Details
screen to view minimum mix quantities
and VOC information.
The ColorMobile application also
has email capability. We know how important it is for industry professionals
to stay connected with customers, adds
Kimbro. We included the email function

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10-20 Fresh Paint 1113.indd 18

so color formulations could be sent out


right away.
The new application is available now
and intended exclusively for users of
PPG and Nexa Autocolor branded products. Subscribers to the Online Color
Formulations desktop version can utilize
their same user ID and password for the
ColorMobile application to obtain full
color formula information.

Ole Kristian Fureid from


Norway wins the R-M
International Best Painter
Contest 2013
Ole Kristian Fureid from Norway is the
winner of the international final of the
Best Painter Contest of BASFs automotive refinish brand R-M. Elvis Husic from
Slovenia came in second place and Steve
Poiret from Belgium took third place.
18 participants, all under the age of
30, from Asia Pacific, Europe and South
Africa competed in the international final
at the R-M Refinish Competence Center
in Clermont de lOise, France after having been selected in the national finals.
The best automotive refinish painters
were elected for the finals globally.
The R-M Best Painter Contest has
shown once again that we have the highest profile of automotive refinish painters
in our business: young talents all providing excellent results, said Harald Pflanzl,
senior vice president Automotive Refinish
Coatings Solutions Europe. Our declared objective is to provide innovative
solutions to make our customers more
successful. With the new R-M Refinish
Competence Center, we have an excellent

November 2013

10/29/13 3:29 PM

Chengdu Economic and Technological


Development Zone. The relocation ceremony also marked the inauguration of
a new Chengdu training center for PPGs
automotive refinish business.
Guests from leading automotive
manufacturers and their dealers, PPG
suppliers and authorized distributors,
and representatives from partner schools

Fresh Paint

location and offer a unique platform for


sharing knowledge and know-how with
our clients and business partners like 3M,
DeVilbiss, EMM, RUPES and SATA.
The 18 best young painters demonstrated their talent in a wide range of
demanding technical skills tests. These
included the very latest high efficiency
refinish technology, using R-Ms waterborne paint line ONYX HD, as well as
application and repair techniques, color
tests, a consultancy task and the correct
use of consumables.
The VIP Colour Task was another
challenge. The finalists had to demonstrate their own design paint scheme on
a scale model car, employing the latest
OEM color trends. The contest reflects
R-Ms reputation as a premium automotive refinish paint brand and its passion
for color and design with experts from
vehicle manufacturers and the world of
design. Mark Gutjahr, head of design
Europe at BASF judged this additional
color task.
I am very happy about the great success of Ole Kristian Fureid, said Ronny
Raeymaekers, jury president and manager
of the R-M Refinish Competence Center.
All finalists have shown strong determination especially as the competition was
tough and the conditions unique. The entire R-M and jury team congratulates the
winners and their teams.
The participants were representatives
from Austria, Belarus, Belgium, Bulgaria,
France, Germany, Italy, Japan, the
Netherlands, Norway, Poland, Portugal,
Russia, Slovenia, Spain, South Africa,
Switzerland and the United Kingdom.
Also the premium business partners 3M,
DeVilbiss, EMM, RUPES and SATA actively supported the contest with key
speeches and the celebration of young
talents, together with R-Ms regular business partners including Festool, Horn &
Bauer, Mettler-Toledo, Norton/StGobain,
SIA Abrasives and Teroson.

attended the ceremony and visited the new training center, along
with officials from government
and industrial associations such
as Wang Fengling, vice secretary general, China Automotive Maintenance
and Repair Trade Association; Xu
Donglan, deputy director, Automotive
Maintenance and Repair Office of the

PPG Relocates Automotive


Refinish Southwest China
Regional Office
PPG Industries has relocated its regional office for automotive refinish
operations in Southwest China to the
Untitled-3 1

November 2013 www.coatingsworld.com

10-20 Fresh Paint 1113.indd 19

Coatings8/20/13
World10:00
| 19AM

10/29/13 3:29 PM

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Department of the Sichuan


Province Administration for
Transportation; Jia Luncai, vice
director, Chengdu Economic
and
Technological
Development
Zone
Management
Commission;
Hao Jianping, chairman, Chengdu
Automotive Maintenance and Repair
Trade Association.
The relocation of the southwest China
regional office to the Chengdu Economic
and Technological Development Zone
marks a major step forward in our efforts to get closer to our customers and
improve our overall services in this region, said Pauline Yuen, PPG vice president, refinish coatings and light industrial
coatings, Asia. The southwest region
has long been a focus for PPGs business
in China, and the new training center in
Chengdu will enable us to respond faster
to the growing demand from customers
here and to accelerate PPGs growth in
the China market.
Covering 1,000 square meters, the new
Chengdu training center can host training programs for more than 1,200 people
each year. The centers design incorporates eco-friendly, state-of-the-art equipment such as a central vacuum system, a
centralized exhaust system and an intelligent gas-powered room, providing trainees with an enhanced training experience
and high-efficiency repair experience in a
safe and comfortable environment.
The new training center aims to bring
PPGs leading technologies and training programs to the growing automotive refinish market in Chinas southwest
region, said James Yang, PPG general
manager of automotive refinish and
light industrial coatings, Greater China.
We are continuing to advance the general knowledge and management skills of
spray-finishing professionals in China.
Since it entered the China market in the
1980s, PPGs automotive refinish business
has built training centers in Shanghai,
Beijing, Guangzhou and Chengdu, providing training for thousands of technicians from automotive manufacturers,
automotive dealers and refinish distributors. PPG offers a wide array of refinish brands such as DELTRON, NEXA
Autocolor, ACS, EMAXX and V-PRO

coatings. It was the first company to introduce waterborne automotive coatings


to China, offering AQUABASE Plus and
ENVIROBASE high performance coatings to help promote a greener automotive aftermarket in China.

Researchers at the
University of Rochester
Develop Foam Polymer
Coatings with Varying
Density and Pore Structures
A researcher at the University of
Rochester has developed a process to
grow highly customizable coatings of
foam-like polymers.
The process, developed by Mitchell
Anthamatten, an associate professor of
chemical engineering at the Universitys
Hajim School of Engineering and Applied
Sciences, involves growing foam polymers directly from gases.
With this process we can grow
polymer coatings in which the density
and pore structure varies in space, said
Anthamatten. My hope is that the research leads to applications in a wide
variety of fields, including medical, manufacturing and high-tech research.
Anthamatten, working closely with
graduate student Ran Tao, developed
a system in which a mixture of gases
is pumped into a low pressure reactor
containing a cold surface to encourage
condensation. One of the condensed
liquids actually forms the polymer
material, while the other one temporarily occupies the spaces that become
the pores in the foam material. But the
problem is that the liquids in the film
dont mix wellvery much like water
and oil. Whats required is to quickly
solidify the polymer film, just as the
two liquids begin to separate from one
another. By controlling the solidification rate, they could control the size
and distribution of the pores; the faster
the coating is solidified, the smaller the
pores become.
Anthamatten and Tao found the answer by adjusting the rate at which the
gases were fed into the system, changing
the temperature of the cold surface in the
reactor, and using a chemical agent that
helps solidify the coating. By adjusting all

20 | Coatings World www.coatingsworld.com

10-20 Fresh Paint 1113.indd 20

those factors, they were able to coat foam


polymers with different densities, thicknesses, shapes, and hole-sizes.

AkzoNobel Showcased
Products, Sustainability
Platform and Education
Classes at SEMA
AkzoNobel Automotive and Aerospace
Coatings Americas (A&AC) showcased
its multi-brand refinish portfolio, industry sustainability platform, and exclusive
education classes at SEMA 2013.
SEMA week began for AkzoNobel with
a press conference announcing the collision repair industrys first Sustainability
Education Challenge Grant.
The grant, sponsored by AkzoNobel
and administered by the Collision Repair
Education Foundation, was created to
stimulate the awareness, development,
and delivery of innovative sustainability
solutions within secondary and post-secondary institutions.
The third annual AkzoNobel
Sustainability Leadership Symposium
was presented this year, for the first
time, as a learning component under
the SEMA Education Program. The
symposium was comprised of collision
repair industry stakeholders discussing
key issues and proposing strategies for
advancing sustainability. According to
AkzoNobel, the ultimate goal of this
endeavor is to create an independent
industry coalition dedicated to the advancement of sustainable business practices within collision repair. Facilitation
of the symposium was led by Mike
Shesterkin of Whats Next Sustainability
Consulting and Sara Tollin, AkzoNobel
Global Sustainability Specialist.
We are very excited to have so many
unique opportunities to introduce show
attendees to our industry leading refinish brands and sustainability initiatives,
said Laura Costello, director of marketing for AkzoNobel Automotive and
Aerospace Coatings Americas. With the
magnitude of SEMAs global influence in
the automotive aftermarket segment, we
knew it was the perfect venue to showcase our ongoing commitment to products and practices that are designed to
help grow and prosper our industry.CW
November 2013

10/29/13 3:29 PM

Market Reports

TMR Analyzes Current Market Trends of


Decorative Coatings Market
TMR has released a new report analyzing
current market trends of the decorative coatings market.
Decorative coatings or architectural
coatings are the finishes and paints that are
applied on commercial and residential buildings. They are mainly used to add colors to
the room and make them attractive and
fresh and to serve as protection from moisture, corrosion, bacteria and UV radiation.
Decorative coatings have various applications such as interior and exterior house
paints, primers, sealers, varnishes and stains.
In recent years the beauty of products in
terms of looks and appearance and its aesthetic values are important in making the
product stand out of the other products.
Based on the type of architectural coating
the market can be segmented into exterior
water-based coatings, interior water-based
coatings, exterior solvent based coatings,
interior solvent based coatings, architectural
lacquers and other architectural coatings.
According to a new report from TMR,
in 2012, architectural coatings dominated
the global coatings market, accounted for
the single largest share in value terms. The
mushrooming of office buildings, housing
complexes and shopping malls all over the
world drive the growth of decorative coatings market.
The decorative coating market is
driven by high investments and growth
in construction and furniture sector. The
growing consumer interest in aesthetics
and home decoration and the improving standards of living are fueling the
demand for architectural coatings. The
market share of decorative coatings in
the overall coatings market increased
as compared to other segments. In the
emerging economies consumers are becoming increasingly Westernized in terms
of increased living standard, while the
recession still shows an impact in many
developed western economies, where the
growth rates of the market have declined.
In emerging markets, the large chunk of
consumers are becoming price sensitive,

forcing the manufacturers to focus on innovative and customized products.


A major challenge faced by the decorative coatings industry is the stringent regulations regarding the usage of toxic chemicals
in coatings and this has forced decorative
paint formulators to seek environmentally
friendly and innovative solutions.
Environmental Regulations/Key Players
in the Market
Various factors such as environment
regulations, health and wellness concern, technology and convenience, are
playing an increasingly important role
in the global decorative coatings market.
The growing end-users awareness of the
advantages of reduced volatile organic
compounds (VOC) emissions has hastened the consumption of water-based
decorative coatings and are expected to
replace solvent-based products in interior applications. Some of the key players in this market include AkzoNobel NV,
PPG, Dulux, Dow Chemical, SherwinWilliams, BASF and DuPont.
This research report analyzes this market depending on its market segments,
major geographies, and current market
trends. Geographies analyzed under this
research report include: North America,
Asia Pacific, Europe and Rest of the World.
This report provides comprehensive
analysis of market growth drivers, factors
limiting market growth, current market
trends, market structure and market projections for upcoming years.
This report offers a complete study
of current trends in the market, industry
growth drivers and restraints. It provides
market projections for the coming years.
It includes analysis of recent developments in technology, Porters five force
model analysis and detailed profiles of
top industry players.
The report also includes a review of
micro and macro factors essential for the
existing market players and new entrants
along with detailed value chain analysis.

November 2013 www.coatingsworld.com

21 Market Reports 1113.indd 21

Dispersing Agents Market


Worth $6.3 Billion by 2018
Marketsandmarkets has published a
new
report, Dispersant/Dispersing
Agent Market, by End-User Industries
(Construction, Paint & Coating, Pulp &
Paper, Detergent, Oil & Gas, Agriculture,
Pharmaceutical) & Geography Trends
& Forecast to 2018, defines and segments the global dispersing agent market
with an analysis and forecast of the volume consumed and revenue generated.
The dispersing agent consumption will
grow from an estimated 3,960 KT in
2013 to 5,475 KT by 2018, growing at a
CAGR of 6.7 percent.
According to the report, the dispersing
agents market is mainly driven by growing demand for end-user industries such
as construction, paints and coatings, pulp
and paper, detergents, oil and gas, agriculture and pharmaceutical. The rising need
for infrastructure drives the consumption
of dispersing agents in the construction
industry. Similarly, accelerating development in the infrastructure and automotive
sector has resulted in an expansion of the
market for dispersing agents in the paints
and coatings industry. The oil and gas industry will show a rapid growth with increasing demand from the automobile and
energy sector.
According to the report, the dispersing agents market is fragmented and has
an immense potential to attract various
small and big level industry players. It
experiences a huge surge, especially in
Asia-Pacific, due to its flourishing infrastructure sector. It is the highest growing
market, followed by Europe and North
America that drives the global consumption of dispersing agents.
New product development is the major growth strategy adopted by market
players. Most of the companies are engaged in developing new and improved
products to meet the rising demand from
end-user industries so as to increase their
dispersing agents business. CW
Coatings World | 21

10/29/13 11:03 AM

Financial News

2013 AkzoNobel Q3 Results

Akzo Nobel N.V. reported third quarter revenues of 3,778 million, 5 percent
lower compared with the same period last
year. The decrease was a consequence of
adverse currency effects and divestments.
Lower restructuring costs and higher volumes helped push Q3 operating income
up 22 percent to 303 million.
The third quarter saw AkzoNobel
divest its Building Adhesives business
and announce plans to drive further efficiency and performance improvements
within Functional Chemicals and in
Germany, as well as plans to streamline
the management structure in Decorative
Paints to improve competitiveness. The
company also published details of investments totaling more than 50 million in two new manufacturing facilities
to meet growing demand in western
China. AkzoNobel furthermore maintained its number one ranking in the
Dow Jones Sustainability Index, heading
the Materials industry group.
Decorative Paints revenues of 1,136
million in the third quarter were stable
versus the previous year, with higher
volumes offset by adverse currency effects. Although conditions in Europe
remained challenging in general, global
volumes were up on the same quarter
last year. Lower costs and lower restructuring charges contributed to increased
operating income for Q3 2013 of 107
million, more than double the previous
years figure.
Quarterly revenue at Performance
Coatings declined 4 percent to 1,415
million compared with last year, with the
decline attributable to adverse currency
effects. Whilst overall volumes were up 2
percent, weak demand in Europe continued to impact all businesses. Q3 restructuring costs were lower in 2013 than a
year earlier, as a result of which operating
income showed an improvement, up 23
percent at 160 million.
Revenue in Specialty Chemicals was
10 percent lower at 1,252 million,

primarily as a result of the divestment


of Chemicals Pakistan and negative currency effects. Overall volumes were flat
compared with a year earlier. Operating
income was down 20 percent at 107 million, mainly as a consequence of one-off
restructuring costs incurred as part of the
performance improvement program in
the Functional Chemicals Business Unit.

PPG Reports Third Quarter


Results
PPG Industries reported third quarter
2013 net sales of $4 billion, up 17 percent
versus the prior year. Third quarter 2013
reported net income from continuing operations was $220 million, or $1.52 per
diluted share, and adjusted net income
from continuing operations was $353
million, or $2.44 per diluted share. Third
quarter 2012 reported net income and
earnings per diluted share from continuing operations were $288 million and
$1.86, respectively. There were no nonrecurring charges in the prior-year quarter.
We continued to deliver record financial performance in the third quarter as
positive impacts from our cash deployment and our strong operating focus
were coupled with a broader improvement in market conditions, said Charles
E. Bunch, PPG chairman and chief executive officer. Aerospace and automotive
OEM coatings remained PPGs most consistent growth drivers, with many other
businesses contributing to the overall
sales and earnings growth.
Performance Coatings segment net
sales for the quarter were $1.6 billion,
up 34 percent, or $409 million, versus
the prior year due primarily to the addition of sales from acquired businesses.
Segment volumes, excluding acquisitions,
declined 2 percent, as the impact of lower
marine new-build industry demand in
Asia offset growth in all other businesses.
Currency translation reduced sales by 1
percent. Aerospace net sales advanced
more than 10 percent as continued strong

22 | Coatings World www.coatingsworld.com

22 Financial News 1113.indd 22

end-use market demand gains were supplemented by sales from acquired businesses. Automotive refinish net sales grew,
aided by strong emerging-region volume
growth that offset negative currency impacts and a modest volume decline in
Europe. North American architectural
coatings net sales, excluding acquisitions,
were up mid-single-digit percentages,
reflecting consistently higher market demand. Segment earnings improved $49
million, or 24 percent, to $252 million as
a result of acquired businesses earnings
and lower costs that stemmed from business restructuring actions and ongoing
cost management.
Industrial Coatings segment net sales
for the quarter were $1.2 billion, advancing about 10 percent, or $109 million, versus the prior year due to higher
volumes and modest acquisition-related
gains. Volumes in automotive original
equipment manufacturer (OEM) coatings grew by about 10 percent globally.
Global industrial coatings business unit
volumes improved mid-single-digit percentages and volume trends improved in
all regions in comparison with the first
half of 2013. Global packaging coatings
volumes grew modestly. Segment earnings for the quarter were $181 million, up
18 percent as a result of higher volumes
and continued cost management.
Architectural Coatings EMEA
(Europe, Middle East and Africa) segment net sales for the quarter were $571
million, up $7 million, or 1 percent, versus the prior year as lower volumes offset
favorable foreign currency translation.
For the third quarter volumes declined by
4 percent year over year. Despite the lower volumes, segment earnings of $73 million represented growth of $17 million,
or 30 percent, versus the prior year, aided
by aggressive discretionary cost-management actions and lower costs, including
benefits from prior restructuring actions.
Currency translation contributed $2 million to segment earnings. CW
November 2013

10/28/13 4:24 PM

Carboline Company, a global manufacturer of high performance coatings, linings


and fireproofing products, has launched
Polyclad ARO, an advanced high performance coating formulated to protect fusion bonded epoxy (FBE) coated buried
steel pipe from damage during horizontal
directional drilling installations.
Polyclad ARO is specially designed
for the protection of FBE or epoxy coated pipeline from gouge and mechanical
damage during directional drilling or
slip bore installations. Polyclad ARO is
applied directly over coated pipe as an
abrasion resistant overlay (ARO) and
provides superior protection in rocky,
rough and mountainous environments.
It absorbs the destructive energy and
minimizes coating damage, according
to the company.
The purpose of ARO coatings is to
protect the FBE from damage while being pulled through a drilled hole. The
test that best simulates this damage is the
gouge resistance test currently being developed by NACE International. Polyclad
ARO has the best gouge resistance of all
abrasion resistant overlay (ARO) coatings on the market, the company reports.

PPG Launches AUE-370YL


for Industrial Coatings
PPG Industries commercial coatings
group has launched AUE-370YL, a
key addition to its family of CPC/LIC
(Commercial Performance Coatings/
Light Industrial Coatings) high-hiding
yellow resin bases. AUE-370YL is a yellow tint base intended to provide increased hiding at lower-dry film builds
for select industrial colors.
AUE-370YL will provide users of
direct-to-metal technology with approximately 30-35 percent better hiding
on yellow colors, the company reported.
The increased hiding capability creates
faster production throughput and cost
savings for the end-user since fewer
coats are required.

AUE-370YL, like AUE-370, is an easyto-use, direct-to-metal 2.8 pounds-pergallon high-solids VOC (volatile organic
compound) urethane that is part of the
CPC family of topcoat products. This
resin allows for high build of the topcoat
using a variety of application equipment
including airless.
PPGs commercial coatings group offers a full range of coating technologies
for the commercial transportation and
light industrial markets, including polyurethanes, alkyds, epoxies, polyurea,
waterborne, pretreatment chemicals
and powder coatings. PPGs commercial coatings products are marketed
under names such as the DELFLEET
Evolution, DELFLEET ESSENTIAL,
Commercial Performance Coatings and
AMERCOAT brands.

New Biobased Open


Atmosphere Corrosion
Inhibitor From Cortec
Cortec Corporation, a leader in innovative, green, sustainable technologies has launched EcoLine 3680, a
certified biobased, biodegradable,
ready-to-use temporary coating for
multimetal protection.
EcoLine 3680 is formulated with
USDA (United States Department of
Agriculture) renewable raw materials,
which allows use for corrosion protection of equipment where incidental contact with food is possible. The product is
HX-1 approval pending.
This green inhibitor provides premium indoor and outdoor multimetal
protection. When applied on the surface, it leaves a tenacious, dry-to-touch
protective coating, which provides excellent protection on metal surfaces,
according to the company. The film is
self-healing and moisture-displacing,
providing superior protection even
against aggressive environments. This
wax-like film can be removed with alkaline cleaners such as Cortec VpCI-414.

November 2013 www.coatingsworld.com

23 New Products 1113.indd 23

New Products

Carboline Launches Polyclad ARO to


Protect FBE/Epoxy Coated Steel Pipe

EcoLine 3680 is safe, economical and


easy-to-use.

Aremcos Al Rich Corr-Paint


CP2010 Urethane Coating
Offers High Temp Corrosion
Resistance
Corr-Paint CP2010, a new aluminum
rich, high performance coating developed
by Aremco Products, Inc., is now used to
provide high temperature corrosion resistance on copper and steel components
and structures exposed to oxidation and
corrosive atmospheres to 400F (204C).
Aremcos Corr-Paint CP2010 is a
single part, aluminum rich, low viscosity
urethane coating that dries and cures at
room temperature to a hard, non-porous,
abrasion resistant surface. CP2010 is resistant to a wide range of acids, bases,
fuels and solvents, and has also survived
long-term salt fog, salt spray and humidity testing of over 1000 hours, according
to the company.
Corr-Paint CP2010 is supplied with a
viscosity of 300-600 cP, specific gravity of
1.08 g/cc, and solids by volume of 66.0
percent, and solids by weight of 70.0 percent. It is typically applied in a 4.0 mil
wet film thickness that dries to approximately 2.0 mils. The theoretical coverage
rate in a 1.0 mil dry film is 1058 ft2/gal.
Corr-Paint CP2010 can be used in combination with Aremcos Corr-Prep CPR2000,
a solution that is used to prepare extremely
smooth surfaces for coating. CP2010 can
also be applied directly to severely rusted
surfaces found in many maintenance and
repair applications. Application methods
include brush, roller or conventional pneumatic spray equipment.
Typical applications include the coating of OEM components such as motor
housings, bag houses, cyclones, hoppers,
pipelines and precipitators, to the coating
of large structures found in MRO (maintenance repair operations) applications
throughout the power, pulp and paper,
and chemical processing industries. CW
Coatings World | 23

10/28/13 10:03 AM

International Coatings Scene Europe

Eastern Europe Economic Difficulties


Dampen Demand for Coatings

Since 2008, the


gap in GDP
growth rates
has narrowed
dramatically, with
GDP rises in some
Eastern European
countries even
falling below the
EU average.

by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com

astern Europe used to be regarded by


Western European coatings producers as
the buoyant market on their doorstep
in which demand could be depended upon to
boost their sales especially at times of sluggish
domestic growth.
Now, however, much of Eastern Europe is
no longer playing the role of the helpful neighbor. Many countries in the region are having
the sort of economic difficulties that are dampening demand for coatings in their Western
European counterparts.
In the five years to 2007 GDP growth was
in most Eastern European countries more
than double that of the annual average for the
European Union of 2.5 percent.

24 | Coatings World www.coatingsworld.com

24-25 Europe 1113.indd 24

Since 2008, the gap in GDP growth rates has


narrowed dramatically, with GDP rises in some
Eastern European countries even falling below
the EU average.
The economies of new Eastern European entrants into the EU have not so far gained the sort
of impetus that other Eastern European states
have enjoyed from membership. The average
rate of GDP growth has declined in Romania
and Bulgaria since they joined in 2007.
Some of the weaker Eastern European
economies are taking far longer to recover from
the 2008 economic crisis than expected, explained Armodios Yannidis, vice-president of
the Greek coatings producer Vitex-Yannidis
Group which has been expanding its decorative
paints operation into southeastern Europe.
The Eastern European construction sector, the
mainstay of coatings demand, has been struggling
to return to the relatively high investment levels before 2008. In some countries construction
November 2013

10/29/13 11:03 AM

Europe International Coatings Scene

The underlying trend in Eastern Europe...is one of steadily


decreasing GDP growth rates.
production has been falling by more than
10-20 percent over the last two years.
In Hungary construction has been recovering this year with production in the
second quarter almost 11 percent higher
than in the same period in 2012. But this
was still approximately 8 percent lower
than in 2010, according to figures from
Eurostat, the EUs statistical service.
The construction sector had been
virtually dead until quite recently when
there was a small revival in investment,
said one Hungarian analyst.
In Romania a rise in construction
activity this year has not yet generated
higher decorative coatings sales in value
terms. In the first half of 2013 growth by
volume went up by 3-5 percent but by
value dropped by 2-4 percent due to low
prices, said Yannidis.
Since 2008, when Romanias decorative paints market was worth 210 million ($295 million) it has been constantly
shrinking due to the crisis in the countrys
real estate construction sector, the loss
of consumers purchasing power and the
overall decline in industrial production,
said Yannidis.
In Serbia, due to join the EU shortly,
decorative paints sales plummeted by 25
percent last year and have continued to
contract by 15 percent in 2013, he adds.
Vitex-Yannidis opened just before the
2008 financial debacle a new 30 million coatings plant at its headquarters in
Aspropyrgos near Athens with an annual
capacity of 24,000 tons. The strategy was
to use the facility to consolidate a leading
position in the Greek decorative market
while expanding exports in southeast
Europe where it had established sales
and distribution networks in Romania,
Bulgaria and Serbia.
While these Eastern European markets
collapsed, demand for decorative paints
in Greece went into freefall in the wake
of severe government austerity measures
to deal with a national debt crisis.
The sales of Vitex-Yannidis dived by

half with the company making its first


losses in its 80-year history. It has been
restructuring to focus more sharply on
decorative paints, especially in the Greek
market where there are signs that a 55-60
percent slump in sales is starting to flatten out.
2013 has been a good year for us,
said Yannidia. Our sales figures are positive up an estimated 4 percent by the
year end-- for the first time for six years.
The constant restructuring we have been
doing is also paying off and our result
will be positive again.
The company last year extended its toll
manufacturing activities at Aspropyrgos
to enable other international coatings
producers to use it as a base to supply the
Eastern European market.
This type of outsourcing is a sign
of companies downsizing their export activities in the region, explained
Yannidis. Weve been talking to one
company which is thinking of closing
a plant. With a toll manufacturing arrangement it can at least maintain some
presence in the market.
Russia is one major Eastern European
country that has been attaining growth
well above EU average rates in recent
years although not so high as the 8 percent annual peaks before 2008. This is
reflected in high levels of local demand
for coatings.
Economic growth in Russia has been
slowing down slightly this year but it is
still the fastest growing coatings market
in Eastern Europe, said Patrik Gallen,
head of the coatings business at Bang &
Bonsomer, a Finnish-based chemicals distributor whose sales to coatings producers in Russia have been increasing at
over 10 percent annually.
The Russian market has been attracting the leading multinational and regional
coatings companies because when demand
in much of the rest of Europe is flat this is
a major Eastern European country showing some kind of growth, he added.

November 2013 www.coatingsworld.com

24-25 Europe 1113.indd 25

Top coatings players have been stepping up their investment in the country. We are now investing continuously
in our business in Russia in the area of
brands, supply chain, new products and
our distribution network, said Jan-Piet
van Kesteren,
AkzoNobels decorative paints regional director for Eastern
Europe and Africa.
Western European companies have
been exploiting a rising preference in
the Russian coatings market for quality products. Russia now accounts for
around 40 percent of sales of the Finnish
coatings company Tikkurila which targets the premium-priced part of the countrys market.
A liking for quality also helps distributors of foreign-made speciality chemicals
for which Russian production is unable
to meet demand. We have been able to
benefit from the growth of the upper-end
of the market, said Gallen. The higher
the quality of the coatings the more there
is a need for speciality chemicals which
are not produced locally.
Poland is another large Eastern
European country that has quickly
recovered from the 2008 crisis. But
even it has been vulnerable to reversals,
particularly in the construction sector. In the second quarter of this year
construction production dropped to 23
percent below the level a year ago, according to Eurostat.
Russia, which is susceptible to changes
in prices of oil and gas, the cornerstone of
its economy, has been having its blips as
well. The World Bank is predicting that
its GDP growth will drop by almost half
to 1.8 percent this year but will bounce
back to 3.1 percent in 2014.
The underlying trend in Eastern
Europe, nonetheless, even in the countries
with more thriving economies, like Russia
and Poland, is one of steadily decreasing
GDP growth rates. As these are closely
linked to paint demand, that means slower rises in the region in coatings sales. CW
Coatings World | 25

10/29/13 11:03 AM

International Coatings Scene Latin America

Venezuelan Paint Market Under Pressure


by Charles W. Thurston
Latin America Correspondent
thurstoncw@rodmanmedia.com

enezuelas paint and coatings


manufacturers are under severe
pressure both to produce and to
sell because of a shortage of raw materials, a limited access to hard currency
and a depressed local economy. Pablo
Olalquiaga, the president of Asociacin
Venezolana de la Industria Qumica
y Petroquimica (Asoquim), the national chemical industry association,
recently said, the industry is going
through a very difficult time. Indeed,
Alejandro Werner, the director of the
International Monetary Funds Western
Hemisphere department warned in
early October that the economic situation in Venezuela is unsustainable...
without adjustments.
While the new Venezuelan president
Nicolas Maduro is attempting to rebuild the countrys decimated economy,
his task is formidable. Inflation is running close to 30 percent per year, product price controls are still in effect for
many products including paint and
coatings, and the weak and overvalued
domestic currency the bolivar is
making imports more expensive. Exstrongman Hugo Chavez died in March
after a long and contentious term as
president, marked by such business
stifling activities as nationalizations of
foreign companies.
Continued raw material imports
by paint makers are being slowed by
large outstanding debt payments to
the suppliers, both domestic and foreign. According to figures cited by
Olalquiaga, the paint and coatings
industry now owes foreign suppliers
close to $700 million, while domestic
suppliers are owed close to $400 million. One impact is that suppliers are
raising prices: at mid-2013 the Central

Bank of Venezuela (BCV) estimated


that overall prices in the construction
industry went up more than 50 percent
over the prior year, against an inflationary rise of only 30 percent.
Asoquim statistics show that most
Venezuelan paint producers registered
double-digit increases in sales over the
first two quarters of this year; however
continued sales growth is being threatened by very low stock levels. Nearly
half of the association membership reported production down during the first
two quarters by over 17 percent. Over
the same period, paint and coatings exports were reported by members to have
slid approximately 15 percent. Paint can
shortages are forcing some manufacturers to produce only quarts, Olalquiaga
noted in one recent interview. Overall
idle capacity is running close to 70 percent, he noted in another.
The Venezuelan economy is grinding to a halt, with expansion forecast

26 | Coatings World www.coatingsworld.com

26 Latin America 1113.indd 26

at no more than 1.0 percent this year,


compared with 5.6 percent last year.
More pessimistic, Spains BBVA bank
group forecast that Venezuelan economy would contract 0.4 percent this
year while Peru expands by 5.8 percent, Chile by 4.2 percent, Mexico and
Argentina by 3.0 percent, and Brazil
by 2.5 percent. The Latin American region is expected by BBVA to expand by
3.1 percent this year, according to the
banks third-quarter analysis.
One of the governments plans for
recovery is to auction $900 million
worth of U.S. dollars over the next few
months to help companies with import
payment problems. The government has
also raised the minimum wage twice
this year, but is in a constant battle
with inflation. And finally, following
Venezuelas 2012 entry into the South
American Mercosur trade block, more
imports and exports are expected with
Brazil and Argentina. CW
November 2013

10/28/13 10:04 AM

2014
www.american-coatings-show.com
Georgia World Congress Center
Atlanta, GA
April 8-10, 2014
American Coatings ConferenCe
April 7-9, 2014

Untitled-3 1

10/30/13 2:03 PM

International Coatings Scene Africa

Kansai Paint strategy for Africa


Stirs Regions Major Markets
by Shem Oirere
Africa Correspondent

plot developed by global Osakabased paint maker Kansai Paint


in 2010, to diversify geographically and also in terms of its products
so as to mitigate the risk of too much
dependence on the Asia market and the
automobile sector, is slowly turning out
to be a catalyst fuelling the expansion of
Africas coatings industry.
Two years after what Kansai said was
a happy ending to a hostile takeover involving the acquisition of South Africas
Freeworld Coatings, the Japanese coatings giant has made yet another huge
leap by acquiring a 63.25 percent interest in Zimbabwes coatings market leader
Astra Industries. The Japanese coatings
firm partnered with the management and
staff of Astra, which also has substantial interest in the chemicals market, to
buy the stake from the Finance Trust of
Zimbabwe, an investment arm of Reserve
Bank of Zimbabwe.
Part of our strategy was to use
Kansai Plascon in South Africa as our
platform growth into the rest of the
African continent and we are happy to
say that the acquisition of Astra is the first
step in making this a reality and demonstrate our commitment that we made at
that time, said Nauman Malik, Kansai
Plascon CEO. Kansai Plascon is the company formerly known as Plascon South
Africa and was renamed after its merger
with Japanese company Kansai Paint.
Malik said Kansai, which announced
net sales of $3,127 million for the financial year ending March 2013 an equivalent of 14.6 percent year-on-year increase
has confidence in the in the economy
of Zimbabwe and Africa in general and
believe Astra Industries is the right company to partner with.

Kansai seems to have taken the adverse publicity on the performance of


Zimbabwes economy on its stride and
also appear to have ignored queries on
why the Reserve Bank of Zimbabwe has
been disposing of even some of its well
performing assets.
The African Development Bank said
Zimbabwes economic growth decelerated from 10.6 percent in 2011 to 4.4
percent in 2012, reflecting a fragile
recovery owing largely to inherent political and economic uncertainties, a
high debt overhang and the deteriorating infrastructure.
Key challenging factors to doing
business includes policy instability, lack
of funding, corruption, excessive or poorly functioning government bureaucracy

28 | Coatings World www.coatingsworld.com

28-29 Africa 1113.indd 28

and inadequate infrastructure.


However, the bank said in the
countrys economic outlook for 2013
Zimbabwes real gross domestic product
(GDP) growth is projected to improve
marginally to five percent in 2013. The
projected improvement in 2013 will be
underpinned by improvements in mining
and agriculture.
The economy continues to experience structural challenges emanating
from the limited sources and high cost of
capital; uncertainties arising from policy
inconsistencies, especially with respect to
economic empowerment and indigenization regulations; dilapidated infrastructure and obsolete technologies.
Despite these challenges, Kansai said
the fact that Astra Industries is a market
November 2013

10/28/13 10:05 AM

Africa International Coatings Scene


leader in Zimbabwe, has a sound management and history of success, the buyout is a worth investment risk and will
benefit from expertise and technology
from its South Africas operations.
The timing may be subject to controversy but we dont want to wait at
the risk of the company partnering with
someone else, said Malik.
The entry into the Zimbabwe market tightens further the grip Kansai
holds in the Southern Africa market
with a major presence in Namibia,
Zambia and Malawi.
Despite the apprehension with which
its entry into South Africa was received
in 2011, Kansai Paint, now trading as
Kansai Plascon in the country, is sending
a precedent of sorts in the regions coatings industry.
Not only are we setting a precedent
in the coatings industry, but we are also
setting the precedent in the South Africa
economic environment, said Malik previously terming the Kansai Paint and
Freeworld acquisition story a hostile
takeover and a happy ending.
Kansai Paint president and representative director Hiroshi Ishino said the
companys South Africa subsidiary, contributed greatly to the consolidated operating income of $257 million and the 189
million net income for the financial year
ending March 2013.
The revenue of the Kansai Paint
Group increased due to the additional
contribution of our South Africa subsidiary, which was consolidated during the
previous fiscal term, said Ishino.
The Zimbabwe buyout is part of
Kansais accelerated globalization and
which Ishino said focuses on developing
nations where the prospects for growth
are most positive.
Our overseas business will look to
strengthen competitiveness by optimizing costs and product quality to meet the
needs of the market, he said.
We will also increase the pace in
which we enter and develop businesses in
new territories and fields as well as areas
that can make a significant contribution to
our consolidated business performance.
And in line with its strategic accelerated global expansion, Kansai Paint

has hinted at a planned acquisition of a


Kenyan coatings firm as it eyes the growing Eastern Africa market.
Hiroshi Ishino, who was in Nairobi
recently, told reporters: Kenya is a
crucial part of our business agenda in
the region. We are open to all avenues
to enter the market, but we are also
ready for a buyout.
Although he did not confirm the
Nairobi coatings company that Kansai
Paint is eyeing, focus has now shifted to
leading paint makers of Crown Paints,
Basco Paints and Sadolin Paints.
The Nairobi-based paint manufacturers fit Ishinos description of the
kind of company that would want to
acquire stake. He was quoted saying
Kansai ruled out beginning operations
in Eastern Africa from scratch involving processes such as buying land, putting up buildings, hiring local staff and
fighting for market share against the
established rivals.
Kansai hopes to bank on the property
boom currently enjoyed in East Africa
and specifically in Kenya to achieve its
growth targets after sealing a buyout deal
in the region.
Analysts say growth in real estate sector opens opportunities for paint makers
and cement makers in the region to grow
their bottom lines.
The number of multinationals and
NGOs that have either set up their operations or plan to relocate there, in addition to fast-growing domestic Kenyan
businesses, have ensured that Nairobi
continues to attract investments into the
commercial office sector, says Michael
Turner, managing director, Actis East
Africa, a private equity firm investing exclusively in Africa.
In East Africa and in Kenya specifically, the property market is responding to demand that has been created
by the expanding middle class with
disposable income and able to service
their mortgages
Kansais appetite for the East Africa
coatings market comes at a time when
leading paint manufacturer in the region, Crown Paints Kenya Limited has
announced a new partnership with
the worlds largest manufacturer of

November 2013 www.coatingsworld.com

28-29 Africa 1113.indd 29

decorative plaster, Armourcoat.


Crown Paints CEO Rakesh Rao said
the company is keen on growing its premium segment and will introduce a new
product, Crown Armourcoat, in the local market.
We are seeing in the market an increasing shift to high-end finishes to
lend a superior feel to interior living
spaces. Consumers especially in the
middle and upper income segments are
also looking beyond traditional coating
solutions like paint to achieve a strong
aesthetic appeal in their homes and offices, said Rao
Armourcoat launched in Kenya in
mid-October and appointed Crown
Paints Kenya it agent for Kenya,
Uganda,
Tanzania,
Mozambique,
Rwanda and Burundi.
Armourcoat creative director Duncan
MacKellar sealed the deal with Crown
Paintss Rao and held several meetings
with the application and sales teams to
map out a winning formula for the new
product.
The acquisitions and partnerships
in Africa coatings market in 2013 were
pioneered by Netherlands-based chemical firm IMCD Group BVs acquisition
of 100 percent interest in South Africas
Chemical Distributor Chemimpo South
Africa (Pty) Ltd.
IMCD Group BV describes itself as
one of the worlds leading company in
sales, marketing and distribution of specialty chemicals and food ingredients
with a footing in Europe, Asia-Pacific
and Africa.
Integration of the two companies
in South Africa will take place through
the course of 2013 and will establish
IMCD South Africa as the leading specialty chemical company in Sub-Saharan
Africa, said Piet van der Slikke, CEO of
Rotterdam-based IMCD.
Otto Brinkmann, who is manager
of the Johannesburg based-Chemimpo
South Africa (Pty) Ltd. and will spearhead the combined operations, said
the company management hopes the
change as it significantly increases
our customer base, laboratory presence
and sales personnel, delivering exhaustive market penetration. CW
Coatings World | 29

10/28/13 10:05 AM

Business Corner Strategies & Analysis

Distributors Are Very Important... Sometimes


by Phil Phillips, PhD
Contributing Editor
phillips@chemarkconsulting.net

ne of the most common types of


business opportunity ventures,
a distributor or dealer is an independent agent whos entered into an
agreement to offer and sell the product
of another company but isnt entitled to
use the manufacturers name as part of its
business name. Depending on the agreement, the distributor may be limited to
selling only that companys goods or it
may have the freedom to market several
different product lines or services from
various firms.
In retail, distributors are invisible
to most consumers. Their names mean
nothing to the people who enjoy the
products they deliver. But they effectively (if not always efficiently) bridge the
geographical gap between producer and
retailer. Supermarkets and department
stores couldnt exist without a complicated distribution system,
capable of moving enormous
amounts of product of every
size and description.
Retail distributors can
deliver a lot of value to the
markets they serve for the
manufacturer.
They transport goods
from large warehouses to
the retail outlets.
They warehouse materials in different parts of
the country.
They handle the paperwork between the
retail outlets and the
manufacturers.
They handle invoicing
and collection.
They dont sell for the
manufacturer.
Thats
the manufacturers job,

through its advertising and promotion. Distributors put the product


in the hands of the retailer. In many
markets, the manufacturer has to
have distributors, but they dont
relieve the manufacturer of the primary sales responsibility.
Industrial distributors have some
of these same duties for their industrial principles. There are four different types of Industrial Distributors in
North America:
1. A stocking distributor only deliver on time at agreed to price.
2. 
A stocking distributor with technical product knowledge and TS
capabilities.
3. A stocking distributor with technical product knowledge and TS capabilities and pricing latitude.
4. 
A ny of the above and they can
be exclusive to one principle per
type product or they can be nonexclusive, offering like or nearlike products.

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30-31 Biz Corner 1113.indd 30

In many markets,
the manufacturer has
to have distributors,
but they dont relieve
the manufacturer of
sales responsibility.
An industrial product is any item that
is used in manufacturing or industry.
Examples will vary according to the type
of product being manufactured. Some
common examples include carts or dollies, tapes, adhesives, coatings, sealants,
ladders, lifts, storage lockers, cabinets,
and scaffolding. Other industrial products are personal protection equipment,
office supplies, light fixtures, or tools.
The Industrial Coatings, Adhesives
and Sealants Products channel to

Diagram 1

November 2013

10/28/13 10:06 AM

Strategies & Analysis Business Corner


market tactical decisions lie in the following areas:
Geographic distance from the manufacturers product
Size of the accounts (customers) served
Value of the product sold
Complexity of the product itself or complexity-in-use down the supply chain
In the simple two-dimensional diagram
pictured we are addressing only the last
two decision elements... Product value and
product complexity. CONCLUSION: The
greater the complexity and value the greater
the need for the supplier to market directly
to the customer.
The diagram below is typical of many
suppliers of complex or semi-complex
industrial products within the coatings
industry. The Raw Material supplier, in
this case, has two significant barriers
when gathering intelligence from the
market place:
1. His own Distributors
2. His own Formulator customers.
The Raw material supplier, therefore,
has no direct influence on the ultimate
OEM Customer and even more disturbing, according to our research; the supplier has less than a 40 percent chance
of building a product/service that is accurate for that OEM.
When a supplier with a semi to very
complicated product offering can select a distributor with highly skilled
technical sales people that markets no
competitive product lines and walks
through the same doors for all the
principles it represents, and that distributor brings it principles Product
Managers/Tech Service people into the
formulators environment in a timely
manner, there exists a decent chance of
ongoing success.
That being said, our experience indicates the aforementioned circumstance
rarely exists.
Therefore, when a semi-technical to
highly technical product line is being offered to a set of targeted coatings or adhesives formulators, direct sales is usually
the best tactic. Distributors, in this case,
can service the less strategic coveted accounts and/or those accounts that are

Diagram 2

Diagram 3

geographically distant from the suppliers


activity epicenter.
Even then, when the marketing is
devoted mostly through the supplier
companys own sales/marketing force, a
call-load program must include not only
the formulators, as suggested, but to the
OEM End-Users themselves . . . . . your
customers customer.
In the diagram we depict an organization that has set aside the distributor

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30-31 Biz Corner 1113.indd 31

(therefore, no insulation exists from


it as a barrier) as a seller/marketer
(except in the cases mentioned above)
and recognizes that his own customer
(formulator) cannot possibly glean
all the pertinent intelligence from the
OEM End-Users and accurately provide same to you, the supplier, thus giving the supplier an opportunity to help
his formulator customer define needs
more accurately. CW
Coatings World | 31

10/28/13 10:06 AM

FEATURE

Exterior Architectural
Coatings Market

Photo courtesy of PPG

Improvements in the housing market will have a positive impact on the exterior
architectural coatings market.
Kerry Pianoforte, Editor

hile not back to pre-recession levels, the U.S. economic situation is certainly looking brighter. According
to a recent report from the National Association of
Realtors, new-home sales are at a five-year high. Total existinghome sales this year will be 10 percent higher than 2012, reaching more than 5.1 million, and are likely to hold even in 2014.
This is good news for exterior architectural coatings manufacturers, who rely on both existing homeowners repainting and
new home construction for their business to grow.
We are certainly seeing positive growth in the exterior architectural coatings market and this is being fueled by an improved housing market and increased consumer confidence,
said Ethan Opolion, product manager at Dunn-Edwards.
The rebound in construction activity is a key driving force
in this improvement.
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According to the U.S. Paint and Coatings Market report, from August 29, 2013, U.S. demand for paint and coatings is forecast to reach 1.5 billion gallons in 2017, added
Opolion. This is a large gain from the volume declines recorded during the 2007-2012 period. These gains will be further supported by an improved economic outlook and greater
consumer confidence.
As the housing market improves, property owners both
single family and multi-family, are more likely to repaint the exterior of their properties.Exterior painting projects tend to be
more expensive and a little more complex than interior projects,
so when the housing marker was down, property owners would
prioritize repainting the interior before doing the exterior, said
Colin Jaffe, senior vice president of pro sales for professional
products and services at Behr Process Corp.

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FEATURE Exterior Architectural Coatings


We see momentum building for both residential and commercial exterior projects, not just for repainting, but also for
new construction projects, Jaffe added.
Yes, certainly improvements in the housing market are having a positive impact, agreed Karl Schmitt, vice president of
marketing research and design at Sherwin-Williams. There are
more housing starts and we are seeing a positive impact on the
exterior architectural coatings market. In addition, to housing
starts, we are also seeing a positive trend with existing homes.
As more people stay in their home longer they are using more
exterior architectural coatings.
We anticipate that the improvements we are seeing will
have a positive impact on the exterior architectural coatings market, although painting typically lags the Housing Starts
Index by 6 to 12 months, added Laurie
Forbush, brand manager at PPG. We
do expect a recovery in the U.S. as we
are seeing the key economic indicators
moving in a more positive direction. We
believe the recovery pace will be relatively slow, but steady, over the next one to
five years.
Sherwin-Williams,
through
its
Product Finishes Division, provides coatings for exterior siding and windows to
both the new build and remodeling markets. Typically known as machine
finishes, they are in demand for the Emerald Exterior paint meets
building and remodeling market
the most stringent VOC
due to their ability to offer consisregulations.
tent quality, said Chuck Susnis,
market development director, wood and composite building
products, Sherwin-Williams Product Finishes. They are cost
effective versus on-site painting or finishing, and weather conditions become a non-factor. They also allow customers to obtain
custom colors on demand; builders and lumber yards do not
need to carry a large color palette on hand, reducing inventory
and costs. The coatings can be supplied to finishers on a justin-time basis, typically within 10 days or less for delivery. The
remodeling market has remained strong over the past year, and
new build is gaining steam.

Green Building Fuels Growth


As this issue goes to press the U.S. Green Building Council
(USGBC) will be launching v4, the newest version of LEED.
First introduced in 2000, LEED (Leadership in Energy and
Environmental Design) is a green building tool that addresses
the entire building lifecycle recognizing best-in-class building
strategies. As LEED and the green building movement continue
to gain momentum, exterior coatings manufacturers are devoting considerable time to developing coatings to meet these industry standards.
While there are several elements of green building, according
to Jaffe, the three that have an impact on the coatings industry

are energy efficiency, indoor environmental quality and efficient


use of materials and resources. As such, specific features, such
as biodegradability, water solubility and product durability
resulting in less material used are in demand.
To meet growing industry standards, Behrs R&D labs work
closely with raw materials suppliers to determine how to help
meet customers project requirements while delivering products that adhere to recognized certifications. For example, the
wetting and dispersing agents we use are being converted to
emission-free, ammonia-free, VOC-free versions and the preservatives in Behr products are formaldehyde- and heavy metal-free, said Jaffe. Additionally, the zero-VOC products and
durable stain-resistant interior paints we offer improve indoor environmental quality by eliminating exposure
to chemicals, reducing the amount of coats required
and extending product life.
In recent years, Behr has
worked to meet and support
green building requirements.
In addition to releasing a
zero-VOC version of widelyused self-priming paint, Behr
Premium Plus, 77 percent of
all Behr Process Corporation
products sold in 2012 were
certified by MPI GreenGuard
and/or GreenSeal. Also earlier
this year the company added
another zero-VOC product
line under the Kilz Pro-X
300-Series label.
By engineering our products to
last longer and reducing the number of coats required during
the painting process, weve made a gallon stretch much farther
than it used to, added Jaffe. To this end, coatings that demonstrate extreme durability and excellent coverage Behr Marquee
Exterior Paint and Primer and Behr Premium Plus Ultra Exterior
Paint and Primer In One optimize material efficiency and offer a
do more with less solution to customers.
PPG has a wide variety of low- and no-VOC products that
meet or exceed environmental standards, such as Greenguard
or the Collaborative for High Performing Schools (CHPS). In
addition, our architectural representatives are LEED Accredited
professionals and can assist with LEED specifications, waste
management and compliance regarding VOC emissions at the
local level, said Forbush. We were also the first national paint
supplier to introduce a container recovery program allowing
customers to return any five-gallon plastic paint buckets used
for water-based products to most of our store locations. The
pails are then consolidated and sent to distribution centers for
shredding and recycling. In addition to its environmental benefits, this program reduces customer costs by eliminating the
need to pay for empty-pail disposal
Dunn-Edwards Greener by Design mission is to provide
the best performing paint and related suppliers by preserving

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November 2013

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Exterior Architectural Coatings FEATURE


the environment, conserving energy and material resources and
protecting human health and safety.
Dunn-Edwards offers a variety of low- and zero-VOC
paints, zero-VOC colorants, ethylene glyco (EG)-free paint and
coatings produced in the worlds first LEED Gold-certified manufacturing plant.
Sherwin-Williams provides coatings with improved performance to enhance durability and reduce the need to recoat.
We are a leader in reducing VOCs and HAPs and offer a
wide variety of waterborne and high solids coatings to meet
regulatory needs, said Susnis. Many of our coatings for exterior building products are available with Solar Reflective
Technology for heat-sensitive substrates, formulated to repel
heat in dark colors in order to resist warping and bowing when
exposed to solar rays.
We have a lot of products that not only meet the 2009 LEED
standard, but also meet the v.4 requirement, added Schmitt.
We also have a green guide on our web site www.swgreenspecs.
com to help our partners meet these standards. We literally update the content on a daily basis.

New Products
Sherwin-Williams recently introduced KemAqua BP Siding Plus,
a product for the OEM and machine finish siding market. It

provides excellent aesthetics for the homeowner, said Susnis.


Builders and remodelers can count on its durability and can
choose from a wide range of color options. Ease of application,
a strong finish coat that dries quickly and low VOCs make it an
excellent choice for finishers and siding manufacturers.
Sherwin-Williams Emerald exterior paint delivers best-inclass overall performance and industry-leading technology for
premium paint jobs that require beauty and durability, according to the company. Emerald exterior features crosslinking 100
percent acrylic technology that delivers durability and hide,
while its VinylSafe technology allows darker colors to be painted over vinyl siding without concern for warping or buckling.
The paint also provides resistance to blistering, peeling, fading
and dirt pickup, with a mildew-resistant coating.
BehrPro has launched two new exterior coatingsBehr
Marquee Exterior Paint and Primer and Behr Premium
Deckover coating. Both products incorporate a variety of innovative and advanced features and offer durable, long lasting
protection, according to the firm.
Behr Marquee Exterior Paint and Primer showcases Behrs
most advanced technology to deliver world-class durability
paired with superior UV protection for longer lasting color,
according to the company. After significant research and development, the Marquee Exterior Paint and Primer has been

Color Trends for Exterior Architectural Coatings


Exterior architectural coatings manufacturers Coatings World interviewed identified a number of color and style trends for
this market.
Overall, the general exterior home
trends are leading toward the following: urban revival, mid-century modern,
Craftsman influence, new use for old
stuff, mix of materials, mixing inside and
outside to no barriers living and use of
construction materials to mimic natural elements, such as concrete to mimic
natural stone, said Sara McLean, color
marketing manager at Dunn-Edwards.
For color on the exterior, color
seems to have no limitations and we are
seeing color go in several directions,
added McLean. As consumers become less afraid of color, architects and
designers are able to explore with color
more. For those seeking a minimal pop
of color on the modern exterior, youll
still find the white or neutral exterior,
however, a pop of color is added to the
door or landscape architecture elements

to draw the eye through the design


and not take away from the surrounding environment. For those seeking an
indoor/outdoor effect in architecture,
a full range of blues and greens draws
the eye to the exterior. And for those
hipsters who love reviving a historic
property such as a mid-century mod or
Craftsman, historical coloring is combining with modern color for an updated
look. To achieve a minimal update and
still make the exterior of the home still
feel personalized, a trend is to keep the
body color and change out all the trim,
door, and fascia colors more frequently
than the typical 10-15 year lifecycle.
In general, neutral tones are more
popular for residential projects. Todays
most popular neutral colors include
off-white, tan, gray, brown, light yellow,
muted gold, soft green and blue-gray,
said Colin Jaffe, senior vice president of
pro sales for professional products and
services at Behr Process Corp. Exterior
colors are often selected based on the

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32-36 Exterior FEATURE 1113.indd 35

style of the house or building, or the region in which its located. You may see
a trend color show up in smaller doses,
such as on a door or on a commercial
building, before it is widely adopted in
a residential setting. Likewise, popular
colors are often adapted in exterior architectural details like doors, windows,
and outdoor living areas. Additionally,
using lighter colors can make a house or
building appear larger, and darker colors
have a tendency to make it feel farther
away from the street.
Trends move much slower in this
market since exterior paint colors tend
to need to last longer, but, overall, we are
seeing use of some darker body colors
darker beiges, blues and grays, added
Dee Schlotter, senior color marketing
manager at PPG. We are also noticing
a trend towards using a darker trim color
than the main body, as a way to highlight
nice exterior fascia and trim. Off White
and beige are still the favorites, but grays
are becoming very popular as well.

Coatings World | 35

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FEATURE Exterior Architectural Coatings


specifically designed to provide the professional marketplace
with a premium product that resists dirt and fading, while
maintaining its finish in environments with rain, snow, wind,
UV exposure and other extreme weather conditions. Specialized
polymers in the 100 percent acrylic formula provide a tough,
non-stick surface, helping to prevent dirt adhesion and maintain
the appearance of exterior surfaces under the most challenging
environments. The dual paint and primer also offers early rain
resistance, allowing for painting later in the wet season. When
using the Marquee product, the film resists rain after 60 minutes without run off or visible film defects.
Behr Premium Deckover exterior solid color coating revives
old weathered wood and concrete surfaces. Featuring a 100
percent acrylic resin fused with ceramic microspheres, Behr
Premium Deckover coating creates a durable, mildew-resistant
finish that enables professionals to restore and maintain areas,
such as decks, railings, walkways, patios and more.
Behr Premium Deckover exterior coating is intended for
both horizontal and vertical applications. Additionally, the
product can cover up to 50 square feet in just two coats, while
still concealing splinters and cracks up to . The resulting
smooth, slip-resistant finish offers added resistance to cracking and peeling. The solid color coating is available in a diverse
palette that offers professionals 54 custom color options.
Dunn-Edwards offers Acri-Wall, a line of professional, zero
VOC, low-odor paints that are ideally suited for use on new
residential, commercial and multi-tenant housing projects.
Dunn-Edwards also recently introduced Ultrashield, a new
line of interior/exterior, high performance coatings. These three
new paints and two new primers are zero-VOC, very low odor

and free of hazardous air pollutants (HAP). New products in


the line include a paint and primer for metal. Ultrashield DTM
Semi-Gloss is a direct-to-metal coating that provides excellent
corrosion resistance on steel, galvanized steel and aluminum
substrates. For maximum protection against corrosion, use new
Ultrashield DTM Gray Primer. Both of these products are intended for metal substrates only. They are both very low odor,
HAPS free, and safe for use in occupied areas such as hospitals,
hospitality and entertainment projects.
Also added to the Dunn-Edwards line are Ultrashield
Interior/Exterior Low Sheen and Gloss, ideal coatings for a
wide range of surfaces, including drywall, wood, masonry,
metal, as well as equipment and tanks. Both the Low Sheen
and Gloss are mar resistant and provide exceptional resistance to UV exposure. For those hard-to-stick to surfaces,
Ultrashield Multi-Surface Primer exhibits outstanding adhesion to masonry, metal, galvanized metal, wood, plaster, wallboard, and previously coated surfaces.
PPG recently introduced a new house and trim paint Speed
Cryl Exterior Latex. It is specially formulated to meet the needs
of high volume new home and multi-family projects. Speed Cryl
is a professional quality 100 percent acrylic exterior latex that
provides an economical option for good adhesion, hiding and
coverage on a variety of exterior substrates, according to the
company. It is specifically formulated to meet the professional
application needs of high volume new home, multi-family and
large repaint projects. It offers a full body feel and provides a
good balance of build capabilities and sag resistance for spray,
brush, or roll application. In 2013 PPG also added to its new
Speedhide zero product line with a Satin finish offering. CW

BehrPro has recently launched two new exterior coatings,


Behr Marquee and Behr Premium Deckover.

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November 2013

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FEATURE

Adhesives and Sealants

Market

3M Adhesives

The adhesives and sealants market continues to recover from economic slump.
Bridget Klebaur, Associate Editor

he adhesives and sealants market is slowing growing


back to pre-recession levels, with the economy stabilizing from the economic devastation of 2008. Despite this,
there are still challenges within the market and facing them has
been no easy task.
While there are signs that the market is stabilizing, commercial construction was hit hard by the economic downturn,
and it will be some time before we see construction activity
approaching 2008 levels, said Charles O. Houk, president,
Tremco Inc. commercial sealants and waterproofing division.
The past three or four years have been devastating for many
in our industry, but there remain opportunities for those who
have positioned themselves well to grow even in this still challenging environment.
Mike Gorman, VP marketing, DAP Products Inc., agreed
that the economy is looking up, especially in terms of the
housing market.

Weve seen the highest existing home sales in four years and
homebuilders are continuing to hire more workers in anticipation
of continued robust housing market, Gorman said. An improved
housing market could lead to a significant increase in demand across
the consumer and commercial markets for adhesives and sealants.
Steve Meenan, business director, 3M Adhesives and Sealants,
explained that while the U.S manufacturing sector has enjoyed
good growth for adhesives and sealants in 2013, other parts of
the world are still struggling. Despite this, the overall long-term
outlook for adhesives and sealants is favorable.
As an example, in transportation markets there is a strong
trend for vehicle light weighting to improve fuel economy,
Meenan said. That is driving the use of new materials such as
composites and plastics to replace metals. These new materials
have to be bonded in the assembly process instead of welded or
mechanically fastened. So we see adhesives growing faster that
the general market growth where they are used.

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Coatings World | 37

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FEATURE Adhesives and Sealants Market


Henkel found that trends did indeed differ between regions.
While the non-European emerging markets developed very
well, momentum in North America and Western Europe was
more subdued.
Jim Owens, president and CEO, H.B. Fuller, explained that
because of the relatively weak economy their focus has been
on ways to innovate and create value that
drives change in customers products and
processes
Tremcos focus has remained the same
in both good and difficult times.
We are looking for opportunities
to help designers, contractors and owners build or restore their structures to
high performance standards, Houk said.
While we cant control the amount of
construction activity, we can control how
we approach the projects that are active.
Our ability to help our customers achieve
their design goals is our best insurance for
continued growth.
Gorman said that DAP saw opportunities
for growth in markets that serve new residen3M Fast Tack Water
tial construction and remodeling/repair.
As we continue to experience positive trends in the housing
market, consumers are increasing the amount of their investment back into their homes. We see this specifically in projects
like painting rooms and larger expenditures like kitchen and
bath renovations, he said.
For Henkel, the adhesives for consumers, craftsmen and
building business turned in a solid sales performance in the
second quarter and household and repair adhesives performed
particularly well.
With our new plant for building adhesives in Russia, which
will begin production shortly, we have established the basis for
further profitable growth of the business in the region, a representative from Henkel said.
Owens explained that electronics and hygiene products were
in strong and growing demand despite the weak economy.

Rising Raw Material and Energy Costs


The rising costs of raw materials and energy have certainly added to the challenges in the adhesives and sealants market.
Despite a significant drop in the overall demand for construction products, the cost of raw materials and the energy to
convert them into finished goods has continued to rise, Houk
said. At Tremco, we have been proactive in addressing these
challenges. For example, we are relentless in our pursuit of eliminating all forms of waste from our manufacturing processes.
We have set and exceeded goals related to reducing energy and
water usage in our manufacturing facilities. We have achieved
zero landfill contribution in several of our North American
manufacturing sites and that is good from both an environmental and cost perspective. While price increases are sometimes
necessary, there are many things we can do to mitigate rising

costs that do not impact our customers and make us a better


company to do business with.
Meenan explained that rising raw material costs are a constant that any manufacturer has to deal with, and customers are
never happy about price increases.
Therefore, it is prudent to develop new formulations using
alternate raw materials, such as renewable
materials, that can be somewhat immune
to the dynamics of the specialty chemical cycle, Meenan said. Also, the 3M
manufacturing team does an outstanding job squeezing out cost using Lean Six
Sigma principles. This allows us to absorb some of the raw materials headwinds
without passing on price increases to our
customers.
Owens said that for H.B. Fuller, rising
raw material costs are seen as an opportunity to partner with customers, suppliers and others to drive innovation in the
manufacturing process.
We adapt our product technology
Based Adhesive 1000NF based on the changing availability of various raw materials, and then we work with
our customers to reduce complexity and lower the overall cost
to produce their products, he said.
Henkel increased selling prices and maintained strict cost
discipline in order to increase a gross margin.
In order to improve efficiency and secure material supplies,
we continuously optimize our value chain while at the same time
maintaining our level of quality, a representative from Henkel
said In addition to continuous negotiation of new, competitive
contract terms, our ongoing initiative to reduce total procurement expenses is a major factor in the success of our purchasing
strategy.
Environmental regulations are also affecting the market for
adhesives and sealants. The goal for adhesives and sealants manufacturers is to develop environmentally compliant products
that deliver the same level of performance as previous products.
Regulatory agencies are demanding manufacturers in our
industry provide environmentally friendly solutions, Houk
said. The challenge of course is to help these agencies achieve
their goals without compromising the performance that our customers have come to expect when they use our products. We
take product stewardship seriously and we are working very
hard to provide safe, sustainable solutions without compromising our ability to deliver high value to our customers.
At 3M, reducing solvent and VOCs is a concern for the environment and for worker safety and comfort, and viewed as an
opportunity for growth.
3M sees an opportunity to lead the way through new product development, Meenan said. As an example, we launched
a line of low-VOC aerosol adhesives that had far lower VOC
content than what is allowable in environmental regulations.
Changes from traditional solvent adhesives to those that are

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Adhesives and Sealants Market FEATURE


thermoplastic are a big driver of growth for H.B. Fuller.
H.B. Fuller has consistently been a huge steward of the environment, both at our plants and in support of our customers, so lower
VOC adhesives is something weve been a leader in, Owens said.

New Products and Acquisitions


Tremco has launched several new products recently according
to Houk. They have introduced Dymonic 100, a new breed of
urethane sealant suited for expansion and control joints, precast concrete panel joints, perimeter caulking (around windows,
doors and panels) and aluminum, masonry and vinyl siding.
The sealants aliphatic formulation eliminates long delays due
to cure time or inclement weather.

Tremco Dymonic 100

They have also introduced Vulkem OC810, a durable, one


coat, low-odor deck coating solution for light pedestrian traffic
areas such as balconies, roof terraces and mechanical rooms.
Tremcos Vulkem OC810 Coating is a high-solids, aliphatic urethane membrane designed to be applied in one 35-40 mil coat
for aesthetically pleasing, durable waterproofing protection that
is mildew- and fungus-resistant and low VOC (less than 30g/L).
Another Tremco product recently launched is T3 Building
Solutions, a high-performance sealing system for use around
windows and doors that controls thermal bridging and air infiltration which can lead to heat loss, occupant discomfort and
premature structural deterioration.
3M recently introduced a new alternative to solvent-based
adhesives. 3M Fast Tack Water Based Adhesive 1000NF offers
strength and speed that are comparable to solvent-based adhesives, with additional benefits including zero VOCs (per EPA
test method 24) and Greenguard certification.
H.B. Fuller launched Sesame High Modulus Tape at Pack
Expo in September. This product provides corrugated packaging
designers with the ability to increase the stacking strength and
box life of produce boxes. This new fiber technology ensures
that boxes, trays and bins will hold up better even in the most
challenging environments.
For DAP, this year marks one of their largest product launches ever with the introduction of seven new products for the contractor and do-it-yourselfer.
SmartBond construction adhesives represent one of our key
new products launches, said Gorman. It is revolutionary new
foaming gel construction adhesives formulated and designed

to help contractors and DIYers work faster, saving both time


and money. It provides eight times the coverage of standard cartridge adhesives, so users can do more with less.
Henkel has released three new products recently. Loctite
MAX 3, polyurethane matrix resin developed for fully automated series production of composite components for the automotive industry. In collaboration with KraussMaffei, Henkel
has developed a process for the manufacture of components
based on glass or carbon fiber and using high-pressure RTM
technology that creates a surface quality good enough for automobile exteriors. Technomelt Supra 100 Cool is an innovative
hotmelt adhesive for the packaging industry, which delivers high
efficiency in packaging production while also promoting sustainability in customer operations. In addition to its low application temperature of 100 degrees Celsius and its high adhesive
strength, Technomelt Supra 100 Cool is also characterized by its
wide-ranging suitability in case sealing, carton closing and tray
erection. Henkel also released the new high-performance elastic
adhesive Teroson PU 8590 LD, which is used for direct glazing
and assembly work in vehicle construction enables manufacturers to achieve a significant reduction in vehicle weight.
H.B. Fuller has made a few acquisitions this past year.
They acquired Forbos industrial adhesives business in March,
which was a major consolidation of two industry leaders. Last
September H.B. Fuller made an important acquisition in the
electronics space that enabled them to increase their market
knowledge and qualification capabilities in a wide range of microelectronics assembly technologies. Most recently, they purchased a company in Brazil that is strengthening their business
in packaging markets and also Latin America.

Tremco Vulkem OC810

On September 18th, Henkel opened the worlds biggest adhesive production plant in Shanghai, China. The new factory is
comprised of 150,000 square meters of space and is now the
central production site for industrial adhesives in China and the
Asia-Pacific region. Customers being served by the new adhesives plant include enterprises in the automotive industry and
various consumer goods sectors. Annual output is forecast to
reach up to 428,000 metric tons of adhesives. CW

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Industry News

Allnex to Create
Americas Headquarters and Technical Center

Allnex has opened its new Americas


Headquarters and Technology Center.
The move from Smyrna, Georgia to
Alpharetta, Georgia is one more positive step that newly independent resins
and additives company Allnex (formerly Cytec Coating Resins) is taking to
strengthen its position worldwide, the
company reported
The new center will bring the Sales,
Marketing, Technical Service, and
Research and Development organizations and several functions that support Allnexs four key business groups
Radcure, Powders, Liquid Coatings
and Additives, and Crosslinkers together under one roof that offers a modern
working environment and state-of-theart laboratory facilities.
We are thrilled with our new location in Alpharetta, and are pleased to be
able to offer Allnex employees the expanded space needed to work under one
roof, fostering teamwork, creativity, innovation, and customer focus, said Tom
Kelly, Americas vice president for Allnex
USA. This investment also underscores
Allnexs commitment to our Americas
business. With this move, we are ensuring that we can provide both our customers and employees with the support they
need to maximize their success.
The move to Alpharetta is providing the opportunity to combine several
smaller research laboratories in one central, very modern building and enabling
the company to further develop its Allnex
brand. In addition, the current locations
would have required substantial upgrades
to achieve the same goal, while with the
new facility, attractive financial incentives
will help offset relocation expenses.
The creation of our new Americas
Headquarters and Technology Center is part
of Allnexs strategy to accelerate our growth
in key markets and further globalize our
business. It is also one more way we are reinforcing our position as a preferred resin supplier, noted Allnex CEO Frank Aranzana.

Galactic Receives Approval


from ECOCERT
Galactic has received approval from
ECOCERT in accordance with their
standards on natural and organic raw
materials for a number of its natural
solutions for cosmetics, detergents and
paint. Founded in 1991, ECOCERT is
a leading international environmental
organization responsible for the certification of food products, cosmetics,
detergents, perfumes and textiles. It is
based in Europe but conducts inspections in more then 80 countries, making
it one of the largest organic certification
organizations in the world.
ECOCERT
acknowledges
that
Galactics solutions are based on raw materials derived from renewable resources
and have been produced by environmentally friendly processes. ECOCERT also
checks for the absence of GMOs, parabens, phenoxyethanol, nanoparticles,
silicon and animal-derived ingredients, a
fact, which further highlights the naturalness of the solutions Galactic provides.
We, at Galactic, are constantly striving
to offer our clients natural ingredients for
their formulations, and are delighted to be
deemed ECOCERT compliant for several
of our products, said Denise OConnor,
market regulatory affairs officer.

Celanese Launches
International Impact
Program
Be innovative, committed and collaborative to help make the world a better place. This is one of the missions of
Celanese, a global technology and specialty materials company.
This mission is driving the announcement of the Celanese International Impact
Program, an employee volunteer program
of the Celanese Foundation that will help
organizations and people around the
world address economic, social and environmental challenges. The first projects
for the Celanese International Impact

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40-43 Indy News 1113.indd 40

Program are in Uberlndia, Brazil, where


Celanese employees will assist three organizations that provide social services to
their local communities.
The program has recently sent 10
Celanese employee volunteers to work
side-by-side with individuals and nongovernment
organizations
(NGOs)
to help them achieve their missions.
Celanese employees share their business
and professional insight along with tools
to enable these beneficiaries to strengthen their strategies and infrastructures so
they can thrive over the long term.
The company is proud of our employees who are giving their time and talent to
support these deserving organizations in
Uberlndia, said Gretchen Rosswurm,
vice president, corporate communications and corporate social responsibility, Celanese. They come from China,
Singapore, Germany, the Netherlands
and the United States. They are chemists,
accountants, managers, engineers and
more. Each is a talented, committed community volunteer and Celanese employee.
While in Brazil, these 10 employees will
work in sub-teams to deliver specific
needs for each NGO. This includes creating a sustainable marketing model for a
community garden; enhancing volunteer
retention for an organization that supports domestic violence victims; and offering management tools for a home that
provides free housing for females undergoing medical treatment.
In this first phase, 10 Celanese volunteers are spending four weeks in
Uberlndia, Brazil, working with three
NGOs to address local economic and environmental challenges as follows:
SOS Ao Mulher e Familia de
Uberlndia (SOS Women and Family
of Uberlndia), a non-profit organization that provides psychological, social and legal assistance for
victims of domestic and family violence. The Celanese team will help
the various organizations involved
November 2013

10/29/13 11:04 AM

The key to the programs success is


connections the 10 employees connecting with each other, the rest of Celanese
and the communities where they serve,
Rosswurm added. Based on initial results, Celanese is definitely making a difference, and our employees are having a
great time in the process.

Allnex Officially Opens


TS&D Lab in Shanghai
Allnex officially opened its new Technical
Services & Development (TS&D) laboratory in Shanghai. This facility is planned to
bring together Allnexs key technologies under one roof for synergies and resource sharing in technical developments.
China is the focal point of our

coating resins business growth strategy,


said Allnexs vice president, Asia Pacific,
Siva Iyer. The new center will integrate
the capabilities of our existing two laboratories in China; it will meet global
safety and environmental standards and
provide modern state-of-the-art lab facilities for our employees to further help
our customers by faster product and
applications development. Our aim is
also to speed technology transfer from
Europe and America to the emerging
growth regions.
Frank Aranzana, CEO, Allnex added,
The opening of our new TS&D laboratory is part of Allnexs strategy to accelerate growth in Asia and further globalize
our business. It also reinforces our position as a preferred resin supplier.
Allnexs TS&D laboratory is located
within an easily accessible modern technology park at Yin Du Road, Shanghai to
support its entire coating resins and additives portfolio. This laboratory facilitates
paint formulation, technical service, raw
material research, resins modification and
new resins development.

Novozymes to Supply
Enzyme Technology to
Razens Cellulosic Ethanol
Plant in Brazil
Novozymes has entered into a collaboration agreement with Brazils largest sugarcane crusher, Razen Energia S/A.
As part of the agreement, Novozymes
will supply enzyme technology to Razens
first commercial-scale cellulosic ethanol
plant in Brazil, scheduled to be operational
by end 2014. The plant will be a bolt-on facility to Razens Costa Pinto sugarcane mill
in the state of So Paulo and will have the
capacity to produce 40 million liters of cellulosic ethanol a year from sugarcane bagasse
and straw. The agreement also provides for
Novozymes to supply enzyme technology
to Razens second cellulosic ethanol plant,
should such a plant be constructed.

Azelis Opens Coatings


Application Lab in Sankt
Augustin, Germany
Azelis opened a coatings application
lab in Sankt Augustin, Germany. To enhance technical support and offers its

November 2013 www.coatingsworld.com

40-43 Indy News 1113.indd 41

Industry News

in the process improve their communications and increase volunteer retention so the organization can more
effectively help victims.
Projeto Estao Vida (Project Life
Station), a non-profit organization
that provides after-school care, education and counseling for children
and teenagers from low-income
families so their parents can work.
During the half-day care, the organization provides activities such as
tutoring, music, dance and computer
classes. The children and teens also
help care for a garden where they
grow produce for the organizations own consumption. Celanese
volunteers will help develop a strategy to increase the gardens output
and sell the surplus to local businesses and reinvest the extra income
into Estao Vidas programs and
activities.
Casa de Hospedagem Betesda
(House of Mercy), a non-profit organization that houses low-income
female patients undergoing medical
treatment. The Celanese volunteers
will improve file management processes as guests check in and out
each day as well as streamline the
process for purchasing and receiving
in-kind donations of the products it
uses in daily operations so the organization will be more efficient and
can focus more on its beneficiaries.

customers and principals access


to a key center of excellence.
Azelis represents many world
leading coatings manufacturers
and the expert lab team aims to incorporate their high performance raw materials
into guideline formulations that preview
the latest trends and processing techniques, according to the company.
Additionally, work with customers
and principals on specific confidential
projects will enhance in depth sales support and technical advice for our partners.
Primarily, guideline formulations will
center around water-based systems such
as faade and interior wall paints, wood
lacquers and pigmented primers.
Operating under strict protocols, testing services will include; the measurement of particle fineness, foaming and
de-foaming properties, adhesion, washability resistance, gloss reflection and surface properties by microscopic analysis,
as well as the characterization of raw materials and formulated compounds.

Clariant Closes Sale of


Textile Chemicals, Paper
Specialties and Emulsions
Businesses
Clariant announced the closing of the sale
of its Textile Chemicals, Paper Specialties
and Emulsions businesses to SK Capital.
The three former Clariant businesses are
now operating under the name Archroma.
After some adjustments for working capital and for the lower operational performance of some parts of the businesses,
the total purchase price consideration of
the transaction will amount to approximately CHF 425 million, mainly consisting of a cash inflow of CHF 355 million
and the transfer of pensions and other
liabilities. Worldwide, 2900 employees
will transfer to Archroma.

BASF and Sabo Enter into


License Agreement for
Light Stabilizer Chimassorb
2020
BASF has entered into an agreement to
license the Chimassorb 2020 technology
to SABO SpA.
According
to
the
company,
Chimassorb
2020
combines
Coatings World | 41

10/29/13 11:04 AM

Industry News

exceptionally high UV and


long-term thermal stability in
applications such as polypropylene fibers and tapes. Demand
for solutions based on Chimassorb 2020
has been steadily increasing, and the
technology will grow as the product of
choice for many applications.

AkzoNobel Opens
Bermocoll Cellulose
Derivatives Production
Plant in Ningbo
AkzoNobel has further extended its
Ningbo multi-site in China with the completion of a new Bermocoll cellulose derivatives production plant. The new site
is now serving the growing demand from
customers throughout the region.
Based on a natural polymer,
AkzoNobels Bermocoll cellulose derivatives are sourced from wood pulp or cotton linters. The main application areas
are water-based paints and building additives. Thanks to their unique water retention properties, they improve the product
performance of water-based paint and
help to further reduce VOC levels, the
company reported.
Werner
Fuhrmann, AkzoNobels
Executive Committee member responsible for Specialty Chemicals commented,
Our Ningbo multi-site continues to be
a cornerstone operation for us to deliver
for our customers and help us realize our
growth ambitions in this key region. We
now look to extending our market leadership positions and bring our sustainable,
innovative applications to the building
and construction industry.
Following the start of production,
AkzoNobel intends to ramp up the capacity of the plant to its 10,000 MT
nameplate by the end of 2014.
AkzoNobel has invested more than
400 million in the Ningbo site since
it was established in November 2010.
Occupying a 50-hectare plot, AkzoNobel
is already producing chelates, ethylene
amines, ethylene oxide and organic peroxides at its Ningbo multi-site. The products produced in Ningbo serve a number
of markets including the building and
construction, cleaning and detergents,
food, oilfield, personal care and pulp

and paper industries. AkzoNobel currently employs more than 7,700 people
in China, including 500 in research and
development. Revenue for 2012 was 1.7
billion, the majority being generated from
local demand.

Huntsman Relocates its


Surfactants Business in
Europe
The Performance Products division of
Huntsman Corporation plans to re-focus
its surfactants business in Europe. The
company announced that it plans to transition away from a number of surfactant
assets and product lines that have commoditized and to focus on developing
and growing the remaining differentiated
surfactants business in Huntsmans strategic markets. Relevant authorities and
social partners will be fully consulted.
We expect the restructuring to
be complete by end-2014, said Stu
Monteith, president of Huntsmans
Performance Products division. It will
result in a European surfactants business
more closely aligned to our chosen markets and more integrated with the rest
of the divisions business processes and
chemistries.
We are in discussions with potential
partners for certain facilities and every effort will be made to ensure a smooth and
seamless transition for customers and
other stakeholders, he added.
It is estimated that approximately
250 Huntsman Performance Products
European positions could potentially be
affected by these changes during the next
18 months. Upon completion Huntsman
expects the annual EBITDA benefit will
be approximately $20 million.
Huntsmans surfactants business in
other parts of the world as well as other
product lines in the Performance Products
division (including amines, maleic anhydride and carbonates) will not be affected
by the proposals.

Dow to Increase its Polyol


and Copolymer Capacity at
Freeport, Texas Facility
Dow Chemical Company will increase
its polyol and copolymer capacity at
its Freeport, Texas facilities as a result

42 | Coatings World www.coatingsworld.com

40-43 Indy News 1113.indd 42

of debottlenecking.
Dow is constantly evolving our technologies to help our customers grow,
said Mark Bassett, global business director for Dow Polyurethanes. DMC catalysis will allow our Texas facilities to
meet customer needs in the region, while
boosting global supply of Dows worldclass products. This capacity increase
positions Dow to assists customers with
growing demand for polyols and copolymer polyols down the value chain.
The facilities will use state-of-the art
DMC catalysts to create polyol products
with unique properties. The extra capacity
will expand Dows capability to leverage
low carbon ethylene oxide costs in the U.S.
Gulf Coast. It will also enable increased
output of base polyols to be used in the expanded copolymer polyols facility, as well
as extra volumes of flex slab and coatings,
adhesives, sealants and elastomers (CASE)
polyols to the NAA markets.

Catalytic Process Using


Waste CO2, Shale Gas
Targets Coatings Markets
Novomer Inc., a sustainable materials
company pioneering a family of high-performance polymers and other chemicals
from renewable feedstocks such as carbon dioxide (CO2), recently announced
a major new application of its catalytic
innovations. Poised to disrupt a $20 billion, mature global market, the approach
encompasses the sequestration and conversion of carbon dioxide and ethanerich shale gas into mass market chemicals
such as acrylic acid, butanediol and others
commonly used in paints, coatings, textiles and diapers, the company reported.
A $5 million dollar Department of
Energy (DoE) Grant supports the initiative as part of the Clean Energy
Manufacturing Initiative (CEMI), and a
partnership with an industrial gas supplier. The resulting chemicals produced
are existing chemical compounds, giving
Novomer and its partners the ability to
reach pilot scale (2,000 metric tons/yr) in
2015, and full commercial scale in 2017.
This, in turn, could result in the first US
acrylic acid plant built in over 10 years.
Notably, the process being developed
by Novomer and the low cost of the
November 2013

10/29/13 11:04 AM

ALTANA Acquires Rheology


Business of Rockwood
Holdings
ALTANA has completed the acquisition
of the rheology business of Rockwood
Holdings, Inc. With the acquisition
ALTANAs sales are expected to reach approximatley 1.9 billion per year.
ALTANA acquired the rheology
business of Rockwoods Performance
Additives segment for a purchase price of
$635 million. The acquired business segment is one of the worlds leading suppliers of rheology additives that optimize
the flow characteristics of various materials. Rheology additives are used, among
other things, in coatings, construction
materials, and personal care products.
They can, for example, ensure that coatings have the right viscosity and that they
can be applied without forming droplets
or bubbles.
As a result of the acquisition the
number of the ALTANA Groups employees increased from 350 to 5,700.
In addition to the administration department in Austin, Texas, four new
production sites have been taken over:
Gonzales, Texas, Louisville, Kentucky,
Widnes, UK and Moosburg, Germany.
ALTANA will integrate the acquired
rheology business into its BYK Additives
& Instruments division.

Solvay to Acquire U.S.Based Chemlogics


Solvay has signed an agreement to acquire privately-held Chemlogics for a
total cash consideration of $1.345 billion. According to the company, adding the U.S.-based company to Solvays
Novecare business unit will create a
leader with an extensive portfolio of
tailored chemical solutions for the fastgrowing oil and gas market, serving
stimulation, cementing, production and
water management applications.

Oman Oil Company


Acquires Oxea from Advent
International
Advent International has sold Oxea,
one of the largest global manufacturers of Oxo chemicals to the Oman Oil
Company (OOC), a commercial company wholly owned by the Government of
the Sultanate of Oman
The acquisition is subject to antitrust approvals and satisfaction of other
conditions. The purchase price was not
disclosed. With the acquisition of Oxea,
OOC aims to become a vertically integrated global chemical leader in the
downstream industry.
With 1.3 million tons of Oxo chemicals and derivatives each year, Oxea generated sales of approximately 1.5 billion
in 2012. The company was formed by
merging two separate business units,
which Advent acquired in 2007 from
Celanese and Degussa (now Evonik).

Celanese Simplifying its


Brand Architecture
Celanese has announced plan to simplify brand architecture to capture in a
single brand the full suite of Celanese
technology, resources, products and
solutions. This change moves Celanese
toward achieving its vision of becoming the first-choice chemistry solution
source for its customers.
Our vision represents Celaneses
depth and breadth of industry and chemistry knowledge, the capabilities to innovate for our customers, the dedication
to creating value, and a commitment
to partnerships to help our customers
succeed, said Mark Rohr, chairman

November 2013 www.coatingsworld.com

40-43 Indy News 1113.indd 43

Industry News

feedstocks (waste CO2 and large volume shale gas) could allow U.S. providers to become global low-cost leaders
in chemical intermediates and vastly reduce dependencies on crude oil markets.
The company estimated that cost savings could be as large as 20-40 percent
compared to todays technologies, but
will depend on the ultimate performance
of key techno-economic variables that
will be determined as part of the DOE
project. Additional potential benefits of
Novomers process include:
Increased energy productivity of chemical manufacturing by 30-70 percent
Reduce CO2 footprint by 40-110 percent (depending on target chemical)
Energy savings of more than 20 trillion
BTUs per year within 10 years.
Total sequestration of waste gases with
only moderate temperature requirements

and chief executive officer. We


believe the phrase that best describes Celanese is The chemistry inside innovation.

BASF Receives Frost &


Sullivan Award for Resins
for Protective Coatings
BASF has received the 2013 Product Line
Strategy Leadership Award from Frost &
Sullivan based on a recent analysis of the
European resins for protective coatings
market. The award recognizes the extent
to which the product line meets customer
base demands, the overall impact it has
in terms of customer value as well as increased market share.
BASFs strategic acquisitions improved its coating raw materials portfolio and gave it access to many important
technologies. Due to our combined
know-how in the field of resins, pigments
and additives, we are able to support our
customers in formulation and processes,
said Ulf Neidlein, vice president business management resins and additives,
Europe. This allows us to be seen as a
provider of complete coatings solutions
rather than pure raw-material chemistry.
BASFs current approach to product
portfolio development is based on market trends. The market continues to
shift away from using high-solvent coatings, and BASF is leading this conversion
by replacing alkyds with acrylic dispersions, said Frost & Sullivan industry
analyst Roland Heinze. The company
also looks to replace other conventional
technologies to the greatest extent possible with more sustainable ones in order
to grow faster than the market.
The companys extensive portfolio
of coating raw materials translates to a
wide variety of applications protective
coatings but also printing and packaging,
furniture and flooring, automotive, and
general industry.
Frost & Sullivan Best Practices
Awards recognize companies in a variety of regional and global markets for
demonstrating outstanding achievement and superior performance in areas
such as leadership, technological innovation, customer service, and strategic
product development. CW
Coatings World | 43

10/29/13 11:04 AM

Suppliers Corner

Elevance Offers Bio-Based


Inherent C18 Diacid

Elevance Renewable Sciences, Inc.


recently announced the commercial
availability of Inherent C18 Diacid
a mid-chain length, bio-based diacid
that enables producers of polyamides and polyurethanes, lubricants and
adhesives to significantly expand their
portfolios with cost-competitive products that demonstrate performance not
possible from products made with more
common, shorter-chain diacids according to the firm.
Elevances unique, efficient process
to produce C18 diacid, also known as
octadecanedioic acid or ODDA, uses
materials produced from its world-scale
biorefinery in Gresik, Indonesia. The process allows Elevance to make Inherent
C18 Diacid with the purity required for
demanding applications like polymers at
a cost that is competitive with other specialty diacids in the marketplace, according to the company.
As a diacid, or if converted to diamine, a C18 diacid enables the creation
of more than a dozen new base polymers
that can result in more than a hundred
new compounds or formulations. For
example, Inherent C18 Diacid will allow polyamides to enter new automotive
and electronic applications that demand
better hydrolytic performance, improved
optical properties and greater material
toughness or flexibility.
Using Inherent C18 Diacid in polyester polyols enables the creation of new,
previously unattainable pre-polymers,
helping polyurethane manufacturers create polymers with exceptional solvent
resistance, hydrolytic stability, optical
clarity and toughness that will benefit
automotive, food service, medical and
other markets.

Shimadzu Launches
Next-Generation FTIR
Spectrophotometer
Shimadzu Scientific Instruments Inc. has
introduced the IRTracer-100 Fourier

Transform Infrared (FTIR) spectrophotometer. Combining high speed, sensitivity and resolution with enhanced
expandability and easy-to-use software,
the IRTracer-100 quickly and easily obtains high-quality data for samples in
such fields as chemicals and electronics
according to the company.
The IRTracer-100 offers best-in-class
60,000:1 S/N ratio, which allows researchers to quickly and easily obtain
high-quality data of ultra-small contaminants. Resolution of 0.25 cm-1 provides for highly accurate quantitation
and identification. In addition, a rapid
scan function allows rapid sample acquisitions of 20 spectra per second. This
enables analysis of reactions occurring
within a few seconds, and kinetic studies
occurring in less than one second.
The IRTracer-100 features a stable,
airtight interferometer that incorporates
a built-in automatic dehumidifier, protecting the unit against moisture and
other environmental influences. In addition, the patented Advanced Dynamic
Alignment system, sampling at over
5,000 times per second, works in combination with a smooth-moving mirror to
ensure optimum performance, enhanced
stability and shorter warm-up times.
Self-diagnostics and monitoring technology allow for quick, easy instrument
management. The IRTracers validation
program enables easy verification of the
instruments performance. This program
complies with U.S., European, Japanese
and Chinese pharmacopeias, and with
ASTM specifications.
Optimized for network applications,
new LabSolutions IR Series software
offers intuitive operation, high-level
administrative functions, secure data
management, and a variety of data manipulation functions. It includes an extensive library of nearly 12,000 spectra
as well as a high-performance search
function for easier identification of unknown samples. A unique Print Template

44 | Coatings World www.coatingsworld.com

44-45 Suppliers Corner 1113.indd 44

function allows easy creation and printing of custom reports. In addition, the
Easy Macro program allows users to
effortlessly create macros for routine
tasks. This improves productivity and
allows even novice FTIR users to easily
operate the IRTracer-100.

Arkema Launches New


Waterborne Alkyd Polymer
for Coatings
Arkema Coating Resins has introduced
Synaqua 4804 waterborne alkyd. This
new binder is an APEO and ammoniafree short oil alkyd emulsion designed for
use in a wide variety of coatings in which
performance similar to solvent-based
alkyds is desired. It offers the coatings
formulator a low-VOC option to develop
high-gloss products with the application
feel of a solvent-based alkyd.
Synaqua 4804 binder provides highgloss potential and excellent gloss retention, very good hardness, quick dry
time, low yellowing, good stability with
anticorrosive pigments, good application characteristics and excellent performance in blends with other technologies,
including styrene acrylics, acrylics and
polyurethane dispersions.

Atlas Introduces the New


Xenotest 440 Xenon
Weathering Instrument
Atlas Material Testing Technology has
introduced a new weathering instrument
suitable for performing accelerated testing on a variety of materials.
According to the company, the
Xenotest 440 sets a new standard in
economical, mid-sized, air-cooled xenon devices. Designed for fast and
economical testing, the Xenotest 440
combines new XenoLogic lamp operating technology with an efficient design,
which includes ultrasonic humidifiers to
reduce water consumption.
XenoLogic is a new twin-lamp operating technology, which enables the
November 2013

10/28/13 10:06 AM

Allnex Unveils UCECOAT


7210 Waterborne UV
Resin to Produce Super
Hardcoats
Allnex
recently
introduced
new
UCECOAT 7210 waterborne UV resin.
This product offers a wide blending
range with Allnexs UCECOAT 7200
waterborne UV resin to produce super
hardcoats with tailor-made flexibility, according to the company.
Formulations based on UCECOAT
7210 and UCECOAT 7200 provide a
solvent-free, low viscosity UV hardcoat
with high solid content of approximately 65 percent and excellent stability.
Compared with solventborne systems,
this hardcoat demonstrates equivalent
mechanical and chemical resistance and
it also allows brand owners to meet sustainability requirements.
UCECOAT 7210 is recommended
as a co-resin with UCECOAT 7200 for
hardcoat on curved substrates where
flexibility of the coating is required such
as consumer electronic casings, automotive interiors, films and rigid plastics.

Union Process
Manufactures First Attritor
with Telescoping Head
Union Process, Inc. has produced its first
Attritor with a telescoping head. The
company custom-designed the special
telescoping head to facilitate maintenance

and access to the grinding tank. By raising the head assembly, the customer is
able to easily change out grinding tanks.
The cantilever designed telescoping head
was the first ever built by Union Process.
The SL-30 batch production Attritor
will be used in an R&D application to
grind materials in liquid nitrogen. As
such, the mill includes a vented cover for
cryogenic grinding with liquid nitrogen
and a phase separator. A liquid nitrogen
controller is used to maintain liquid nitrogen levels during the milling process.
The product discharge is equipped with
a cryogenic ball valve.
The mill features a 304SS grinding
tank that is jacketed for cooling. The
agitator shaft is constructed of stainless
steel. Specially configured arms are 440C
stainless steel.

New Technical Brochure


Available from Orion
Engineered Carbons
A new technical brochure that explores
the benefits and performance properties
of NEROX 505 and Nerox 605 Carbon
Black pigments for industrial coatings is
now available for download from Orion
Engineered Carbons.
NEROX 505 and NEROX 605 pigments are suitable for both solvent- and
waterborne coatings systems, and offer
numerous advantages including stable
dispersion, high jetness and high bluish undertone. The four-page color brochure uses charts to highlight coloristic
properties in acrylic and alkyd-melamine
systems, relative tinting performance,
and jetness in water-based dispersions.
NEROX 605 shows superior jetness and
bluish undertones to NEROX 505 and a
competitive product.
According to the company, the Special
Furnace Blacks are produced using an
after-treatment process that leads to better wetting and dispersion properties and
lower oil and binder adsorption. This
in turn can mean better stability, higher
gloss and lower viscosity in water- and
solvent- borne coatings.
To download a free copy of NEROX
505 and NEROX 605 Carbon Black
Pigments for Industrial Coatings, go
to www.oecliterature.com, or contact

November 2013 www.coatingsworld.com

44-45 Suppliers Corner 1113.indd 45

Suppliers Corner

instrument to achieve high irradiance


levels of 120 W/m2 of total UV radiation.
By testing at higher irradiance levels, test
times can be significantly reduced, compared to standard weathering tests.
In addition to its high irradiance functionality, XenoLogic provides another
significant advantage: an extended lamp
service life. XenoLogic continuously synchronizes two 2200W xenon lamps inside the chamber at the lowest possible
stress level, which leads to optimized
lamp service life and maximized light
efficiency. With this new technology, the
two xenon lamps combined can last over
4000 hours under standard testing levels
of 40-60 W/m2. This increases instrument uptime and reduces lamp operating
costs by as much as 30 percent or more.

Orion Engineered Carbons at


1-832-445-3300.

Charles Ross Offers


Turnkey Systems for
Accelerated High-viscosity
Mixing and Discharge
Charles Ross manufactures a range of
turnkey mixing and discharge stations
for batching paste-like materials and
high-viscosity formulations. The companys Multi-Shaft Mixers, Planetary
Dispersers and Double Planetary Mixers
are all offered with an optional platenstyle discharge system designed for nonflowable, sticky or heavy mixtures.
With push-button simplicity, the system automatically discharges a batch by
lowering a precisely-machined platen
into the vessel. An O-ring around the
platen rides against the vessel sidewalls
virtually wiping the surfaces clean.
Product is pushed out through the bottom of the vessel or through a port on
the platen.
The PowerMix features a saw-tooth
disperser blade and a planetary stirrer
which both revolve around the vessel
while turning on their own axes of rotation at independently-controlled speeds.
This agitator combination is ideal for
handling viscous dispersions up to approximately two million cP. After the
mixing cycle, the vessel is simply rolled
over to the discharge system. As the platen is lowered hydraulically into the vessel, finished product is forced out within
seconds. Various size and style adaptors
allow the operator to fill syringes and
cartridges straight from the mix vessel.
Yield is extremely maximized as normally only a thin layer of product remains on
the vessel bottom, the company reports.
Charles Ross also supplies turnkey
mixing and discharge packages for highvolume requirements. These systems
may include automatic feeders, metering
pumps, multiple vessels, clean-in-place
manifolds, filter assemblies, inline transmitters to measure viscosity, density, flow
rate, etc., pneumatically-operated valves,
integrated recipe controls and many others depending on the process requirements. Contact the company directly for
further information. CW
Coatings World | 45

10/28/13 10:06 AM

People

Benjamin Moore Appoints


Michael Searles as New CEO

Benjamin Moore and Company, a unit


of Berkshire Hathaway, announced the
appointment of Michael Searles as chief
executive officer. Searles brings forty
years of retail leadership experience to
Benjamin Moore. In his career, he has
served as a leader at many retail concepts,
including Kids R Us, Wilsons Leather,
and most recently Stage Stores, Inc.
Searles replaces Bob Merritt who
had been named CEO 15 months ago.
Merritt, whose prior experience was in
the restaurant sector, was named CEO by
Warren Buffet in June 2012.
No reason was given for Merritts
departure.
Michael Searles is a strong, adept
leader who understands the importance
of the independent retailer, said Warren
Buffett, chairman and CEO of Berkshire
Hathaway in a press release. Mike is
committed to the strategy we have set
forth and the commitment we have outlined to the dealer network. We are excited to have him joining the Benjamin
Moore team
I am excited to be joining this talented organization at this time, said Searles.
The opportunities for continued success
of this iconic brand are excellent and I
look forward to working with the team
to make them a reality.

PPG Names Sales Manager


for Latin America
PPG Industries has named Deron
Patterson international sales manager, flat glass international. A 14-year
sales veteran in the U.S. glass industry,
Patterson has been handling architectural
accounts in Texas, Louisiana and Mexico
for the past seven years while also conducting strategic business development
for PPG flat glass in Mexico. In his new
post, Patterson will retain his sales and
business development responsibilities in
Mexico while expanding his territory to
include customers in Central and South
America and the Caribbean.

As a LEED Green Associate since


2010 and a member of the Texas and
Louisiana chapters of the U.S. Green
Building Council (USGBC), Patterson
has made hundreds of presentations
about the role of high-performance glass
in promoting sustainable building at top
architectural firms throughout his sales
territories. He also is a board member of
the Texas Glass Association and a member of the Texas and Louisiana chapters
of the American Institute of Architects
(AIA) and Construction Specifications
Institute (CSI).

KODA Distribution
Group Names New Chief
Commercial Officer
KODA Distribution Group (KDG) has
named Joel W. Jones as its new chief
commercial officer. Jones position will
cover many critical duties at KODA
Distribution Group, including managing and enhancing KDGs key supplier
relationships and working with the five
independent, regional companys sales
organizations on best practices in the specialty selling process.
As CCO, Jones will be managing current suppliers, developing new strategies
for filling product gaps and working on
building upon KDGs portfolio. In addition, he will take on the responsibility
of managing the Commercial Excellence
Program for KDG. This includes working with each KDG companys sales force
and management team to determine how
to better serve their key customers.
Jones spent the past 29 years at The
Dow Chemical Co., where he held various positions including Northeast regional sales manager, product channel
manager and, most recently, served as a
global corporate account executive.

Hockmeyer Adds to Sales


Team
Hockmeyer Equipment has hired Robert
C. Brungard as senior vice president of

46 | Coatings World www.coatingsworld.com

46 People 1113.indd 46

sales and marketing. He has more than


30 years of broad experience in general
management, sales, financial and operations management. In addition to this,
he has extensive international experience
having lived and worked in many parts of
the world in various roles for manufacturing companies. His experience in management and industries such as chemicals,
mineral processing and contract services
industries will be an excellent addition to
Hockmeyer, the company reported.
Brungard was most recently vice president and general manager for Acupac
where he served the medical, personal
care and household goods industries.
Prior to this he held increasing roles
and responsibilities during his career
with Bekaert, CP Kelco, JM Huber and
General Dynamics. He will be working
to grow Hockmeyers market presence
both domestically and internationally.

Resinate Materials Group


Adds Executive Vice
President of R&D
Resinate Materials Group, Inc. has appointed Rick Tabor executive vice president of R&D and technical development.
He will report directly to Brian Phillips,
CEO. In his new position Tabor will be
responsible for driving strategic initiatives and prioritizing new product development activities.
Tabor brings more than 30 years of
experience to the organization with expertise in the development of polyurethane products for diverse industries.
Prior to joining Resinate, he worked at
Stepan Company where his primary responsibility was to drive strategic new
business development efforts for key
business units. He also worked at Dow
Chemical Company where he held a
variety of positions with increasing responsibility in R&D and business development. Through his career, Tabor was
named on 42 patents and has produced
15 external publications. CW
November 2013

10/28/13 10:07 AM

Meetings

CHINACOAT2013 in Shanghai
November 20-22
November 11 - 14
PRA Training Program: Paint
Technology
Location: Hampton, UK
Contact: PRA, Elisabeth Brown
Phone: +44 (0)20 8487 0815
Email: e.brown@pra-world.com
Website: www.pra-world.com

November 12
British Coatings Federation Awards
Dinner 2013
Location: Nottingham Belfry Hotel,
Nottingham, UK
Contact: British Coatings Federation
Website: www.coatings.org.uk
Email: alison.brown@bcf.co.uk

November 20 - 22
ChinaCoat 2013
Location: Shanghai New International
Expo Centre (SNIEC)
Contact: SINOSTAR INT
Phone: 852-2865-0062
Email: info@sinostar-intl.com.hk
Website: www.chinacoat.net

November 26 - 30
PRA Training Program: Paint and
Coatings Basics
Location: Hampton, U.K.
Contact: PRA, Elisabeth Brown
Phone: +44 (0)20 8487 0815
Email: e.brown@pra-world.com
Website: www.pra-world.com

January 21 - 24
World of Concrete
Location: Las Vegas Convention Center,
Las Vegas, NV
Website: www.worldofconcrete.com

February 24 - 28
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

February 27-28
RadTech Annual Winter Meeting
Location: Miami, FL (co-located with
Graphics of the Americas)
Contact: RadTech International North
America
Phone: 240-497-1242 or 240-423-3143
Fax: 240-209-2340
Website: www.radtech.org
Email: uveb@radtech.org

March 3 - 6
Scale-up and Commercial Production
of Emulsion Polymers
Location: San Francisco, CA
Contact: Emulsion Polymers Consulting
and Education, LLC
Phone: 603-742-3370
Email: info@epced.com
Website: www.epced.com

March 6 - 8
PaintIndia 2014
Location: Bombay Exhibition Center,
Goregaon, Mumbai, India
Contact: PaintIndia
Website: www.paintindia.in

March 10 - 12
Middle East Coatings Show 2014
Location: Dubai International
Convention & Exhibition Centre, UEA
Contact: The Coatings Group
Website: www.coatings-group.com/
show/mecs/contact-us

April 7-10
American Coatings Show 2014
Location: Georgia World Congress
Center, Atlanta, GA
Contact: AC Show Management c/o
NurnbergMesse North America
Phone: 770-618-5830
Email: info@american-coatings-show.com
Website: www.american-coating-show.com

November 2013 www.coatingsworld.com

47 Meetings 1113.indd 47

May 12-14
RadTech 2014
Location: Hyatt Regency OHare,
Rosemont, IL
Contact: RadTech International North
America
Phone: 240-497-1242 or 240-423-3143
Fax: 240-209-2340
Website: www.radtech.org
Email: wveb@radtech.org

May 18-21
Southern Society for Coatings
Technology 2014 Annual Technical
Meeting
Location: Marriott Hilton Head Resort
and Spa, Hilton Head, SC
Contact: Southern Society for Coatings
Technology (SSCT)
Website: www.ssct.org

September 3-5
Asia Pacific Coatings Show 2014
Location: Balai Sidang Jakarta
Convention Centre
Contact: The Coatings Group, Diana
Fahmi
Phone: +44 (0) 1737 855 021
Website: www.coatings-group.com/
show/apcs/
Email: DianaFahmi@quartzltd.com

October 15-16
North Afirca Coatings Congress
20144
Location: Hyatt Regency Hotel,
Casablanca, Morocco
Contact: The Coatings Group,
Diana Fahmi
Tel: +44 (0) 1737 855 021
Website: www.coatings-group.com/
congress/nacc/
Email: DianaFahmi@quartzltd.com CW

To submit an event email


kpianoforte@rodmanmedia.com

Coatings World | 47

10/29/13 11:06 AM

Classifieds

C lassifieds
Blades

Equipment for Sale

Stainless IT

Stainless ITT

CONN Blades

The
Most Efficient & Aggressive Available

UHMW Poly

www.connblade.com

(814) 723-7980

Products & Services

HIGH
SPEED
DISPERSERS

Scan to see
units in stock
for fast delivery.
Free Tag Reader:
http://gettag.mobi

1-800-243-ROSS
www.dispersers.com

48 | Coatings World www.coatingsworld.com

CLASSIFIEDS CWM1113.indd 2

PA I N T & C O AT I N G S I N
November 2013

10/30/13 10:14 AM

Classifiedsv

Products & Services


Hainan Zhongxin Chemical Co., Ltd.

Cycloaliphatic Epoxy Resin Producer


TTA184, CAS#: 5493-45-8
Equivalent to:
CY184
More Products Please Visit:

O
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O
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www.zxchem.com.cn / www.tetrachem.com.cn
Mail to: sales@zxchem.com.cn
Call at: +86-21-64854340 (CN)
+1-732-529-6353 (US)

Advertising Index

Company Name

Page

Phone

Website

American Coatings Show 2014

27

Ashland

3 800-345-0447

Blairgowrie Associates, LLC

18

602-539-2683

www.blairgowrieassociates.com

BYK USA Inc.

203-265-2086

www.byk.com

Chemark Consulting

15

910-692-2492

www.chemarkconsulting.net

Chromaflo Technologies

15

Conn & Company

19

CPS Color

Evonik Industries

11

800-367-4857

Cover 2

800-HEUBACH

17

512-472-8282

www.technologylitigators.com

Cover 4

973-279-1306

www.munzing.com

Ross, Charles & Son

800-243-ROSS

www.mixers.com

Siltech Corporation

17

416-424-4567

www.siltechcorp.com

Solvay

13 609-860-4000

Heubach Ltd.
McDaniel and Associates, PC
Munzing

ashland.com/coatings

chromaflo.com

814-723-7980

November 2013 www.coatingsworld.com

CLASSIFIEDS CWM1113.indd 3

www.american-coatings-show.com

www.connblade.com
www.cpscolor.com
www.evonik.com
www.heubachcolor.com

www.solvay.com
Coatings World | 49

10/30/13 2:52 PM

Final Coat

AkzoNobel Powers Nuna7 to Victory

Staged between Darwin and Adelaide


in Australia, the 3,000 km World Solar
Challenge race was won by the Nuon
Solar Team from Delft University of
Technology in The Netherlands in a
time of just over 33 hours. Their average speed was 90.71kph.
Key to its success was the use of
an ultra-light water-based composite pinhole filler (Aerowave 2501)
and an aerodynamic Sikkens coatings system which reduced wind
drag. The triumph comes just weeks
after the Dutch VeloX3 recumbent
bike also coated by Sikkens
broke the world record for a human-powered vehicle.
Were delighted that our
long-standing partnership with
the students from Delft has produced another magnificent result
and we congratulate the team for
this fantastic achievement, said
Klaas Kruithof, director of research, development and innovation for AkzoNobels Performance
Coatings activities. Its a great example of how we work closely with
industrial customers to develop
technically advanced coatings that
deliver outstanding performance.
This years race represented the
fourth time that Sikkens technicians
have worked with the Delft team on
the Nuna project. The main addition
for 2013 was the new water-based
pinhole filler, which was originally
developed for use on aircraft. It was
combined with an aerodynamically advanced Sikkens coatings system to give
the vehicle the best possible chance of
finishing first. Which it did, 100km
ahead of the team in second.
Launched in 1987, the World
Solar Challenge is designed to
showcase the development of advanced automotive technology and
promote alternatives to conventional vehicle engines. CW

The World Solar Challenge Race was won by he Nuon Solar Team from Delft University of Technology.

The main addition was the new water-based pinhole filler, which was originally developed for use on aircraft.

50 | Coatings World www.coatingsworld.com

50 Final Coat 1113.indd 50

November 2013

10/28/13 10:08 AM

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