coatings word march 2013

Untitled-25 1 2/26/13 10:19 AM

Untitled-15 1 2/22/13 12:18 PM

AZ_ECS_203x273_EN.indd 1 14.01.13 11:33Untitled-5 1 1/16/13 10:14 AM

HOFF

MAN

N M

INER

AL G

mbH

P.O

. Box

14 6

0 8

6619

Neu

burg

( Don

au)

Ger

man

y P

hone

+49

( 0) 8

4 31

-53-

0 F

ax +

49 ( 0

) 84

31-5

3-3

30

ww

w.ho

ffman

n-m

iner

al.co

m o

r inf

o@ho

ffman

n-m

iner

al.co

m

SOME BUILDINGS HAVE

A GREAT PAST.

WE CAN ALSO GIVE THEM

A GREAT FUTURE.

FUNCTIONAL FILLERS FOR PAINTS

AND VARNISHES

Sillitin and activated Aktisil open up a vast number of appli-

cations for you. For example, in the form of faade paint for

the protection of historical buildings. Neuburg Siliceous

Earth is a natural mixture of corpuscular, crypto-crystalline

and amorphous silica and lamellar kaolinite. It provides en-

ormous advantages as a fi lling material: very low sedimen-

tation, good abrasion resistance, excellent breathability and

water vapor permeability, outstanding matting effect and

pigment distribution. We have the know-how. Use it.

PLEASE VISIT US AT THE EUROPEAN COATINGS SHOW 2013IN NUREMBERG FROM MARCH 19 21, 2013, HALL 4, BOOTH 614

We supply material for good ideas

hm_1119_AZ_Coasting World_Villa Stuck + MS_engl_203x273.indd 1 19.02.13 16:52Untitled-9 1 2/19/13 1:39 PM

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, [email protected]. POSTMASTER: Send address changes to: [email protected]; (201) 825 2552 ext. 374; Fax: (201) 825 6582. Free subscriptions to Coatings World are available to qualified individuals. Others are as follows: U.S. one year $75; two years $105. Outside U.S. and overseas: one year $95 (U.S.), two years $145 (U.S.), foreign airmail: one year $195 (U.S.). 5% GST required on Canadian orders. GST #131559148. The publisher reserves the right to 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.

Table of ContentsMarch 2013 Vol. 18, No. 3

March 2013 www.coatingsworld.com Coatings World | 5

ADVERTISING SECTIONSClassified Ads.......................................................96 Advertising Index .................................................97

COLUMNSInternational Coatings Scene ...............................28

Europe Europe OEM Coatings Market Sees Falling Sales But Increased Investment in Paint Shops Latin America Brazilian Paint Can Maker InvestsAfrica Paint and Coatings Market Set for Growth

Business Corner ...................................................34Business Ethics Revisited & Revisited & Revisited

IPaint ....................................................................36Non-Compete Agreements One Size Does Not Fit All

DEPARTMENTSEditors Page ..........................................................6As We Go ...............................................................8Fresh Paint ...........................................................10Market Reports ....................................................20Financial News .....................................................22Patents .................................................................26New Products ......................................................38Industry News ......................................................65Suppliers Corner .................................................69People..................................................................70Meetings ..............................................................71Final Coat .............................................................98

43 Surfactants Update 46 Testing Equipment Directory51 40th Annual Waterborne Symposium54 Q&A with Axalta Coating Systems56 AkzoNobel and University Form Partnership to Develop Corrosion Inhibition Coatings58 ECS 2013 Exhibitor Guide72 2013 Company Capabilities

A Special Yearly Supplement to Coatings World

Co

ver

imag

e co

urte

sy o

f Akz

oN

ob

el

40 The OEM Automotive Coatings MarketAuto manufacturers are looking for high-performance coatings that catch the consumers eye while also improving manufacturing efficiency.

5 TOC 0313.indd 5 2/26/13 10:07 AM

6 | Coatings World www.coatingsworld.com March 2013

Edito

rs P

age

A Rodman Media Publication 70 Hilltop Road Ramsey, NJ 07446 USA

(201) 825-2552 Fax: (201) 825-0553Web site: www.coatingsworld.com

EDITOR Kerry Pianoforte [email protected]

VICE PRESIDENT/EDITORIAL DIRECTORTom Branna [email protected]

ASSOCIATE EDITOR Bridget Klebaur [email protected]

ART DEPARTMENT Michael Del Purgatorio

[email protected]

INTERNATIONAL CORRESPONDENTSSean Milmo (Europe)

Charles W. Thurston (Latin America/Americas)

CONTRIBUTING EDITORS Phil Phillips

EDITORIAL ADVISORY BOARDJim 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.

[email protected]

EXECUTIVE VICE PRESIDENT Matthew J. Montgomery

[email protected]

GROUP PUBLISHER / ADVERTISING SALESDale Pritchett [email protected]

ADVERTISING SALES (U.S.)Kim Clement Rafferty [email protected]

ADVERTISING SALES (Europe) Baudry Boisseau Associates

27 Rue J. Lebeau- B-1000, Brussels, BelgiumTel.: 32-(0)2-513-06-47 Fax: 32-(0)2-514-17-38

[email protected]

ADVERTISING SALES (Hong Kong, Taiwan & China)Ringier Trade Publishing Ltd

401-405 4/F New Victory House93-103 Wing Lok Street, Sheung Wan, Hong Kong

(852) 2369 8788 Fax: (852) 2869 5919 [email protected]

CLASSIFIED ADVERTISING SALESPatty Ivanov 631-642-2048; Fax 631-473-5694

[email protected]

PRODUCTION MANAGER Patricia Hilla [email protected]

AUDIENCE DEVELOPMENT MANAGERJoe DiMaulo [email protected]

CIRCULATION MANAGERRichard DeVoto [email protected]

ONLINE DIRECTORPaul Simansky [email protected]

Coatings Worlds circulation is audited by BPA Worldwide.

In this issue, we take a look at the recent sale of DuPont Performance Coatings to global alternative asset manager, The Carlyle Group. The deal, worth some $4.9 billion, came about as DuPont announced plans to focus on the life sciences as its core business. The new company, renamed Axalta Coating Systems, provides coatings and application tools to the au-tomobile refinish and OEM markets. Coatings World had the opportunity to interview the new leadership team at Axalta (page 54) and find out the companys long-term plans.

Our European correspondent Sean Milmo also delves into this major acquisition in his article on Europes OEM coatings market, beginning on page 28. According to Milmo, squeezed profitability is thought to have been a major reason why DuPont decided to pull out of the segment.

Germany Here We ComeAs this issue goes to press, we are gearing up for the European Coatings Show (ECS) in Nrnberg March 17-19. Be sure to check out our European Coatings Show Exhibitors Showcase, beginning on page 58. If you are planning on attending the ECS, the showcase will help you plan your visit. If you cant make it to the show, the preview will give you a glimpse of the latest offerings from the leading suppliers to the paint and coatings indus-try. Also be sure to sign up on our website, www.coatingsworld.com, to receive our daily Live from the Show Floor e-mail blasts.

DuPont Performance Coatings Sold to

The Carlyle Group

[email protected]

6 Editors Page 0313.indd 6 2/25/13 3:18 PM

European Coatings Show, Nuremberg 1921 March 2013, Hall 7, Booth 7123VISIT US

www.clariant.com

05 2013

105_13A_special_Coatings_203x273_e.indd 1 31.01.13 17:18Untitled-13 1 2/6/13 11:07 AM


As

We

Go

To P

ress

AkzoNobel Announces New Strategy and Financial Targets

AkzoNobel announced a new strategy that will build on its leading market po-sitions in mature and high-growth mar-kets to achieve new financial targets. The strategy focuses on end-user segments, operational excellence and sustainability and is summarized by the companys new vision: Leading market positions deliver-ing leading performance.

AkzoNobel has leading market posi-tions and brands in paints, coatings and specialty chemicals, CEO Ton Bchner said. With our global scale and sus-tainability leadership, we will focus our strategy on customer service and opera-tional excellence, creating value for all our stakeholders.

To deliver its full potential, AkzoNobel has identified the following strategic fo-cus areas: care for the customer, reduc-tion of product and process complexity, cash and return on investment, embedded safety and sustainability, and diverse and inclusive talent development.

AkzoNobel has company-wide core processes, which will support and drive the strategic focus areas. These processes include a more rigorous operational con-trol cycle to drive and monitor delivery of its targets, behavior based and process safety, talent management, innovation and procurement.

AkzoNobel has four key end-user segments that it sells into: Buildings and Infrastructure, Transportation, Industrial and Consumer Goods. Better analysis and understanding of the leading indicators of these segments will make AkzoNobel more responsive to market developments.

AkzoNobels focus on end-user seg-ments will also allow for further growth in both mature and high-growth markets. The company will build on its leadership in high-growth markets, which already account for 44% of revenue a percent-age that is expected to grow further in the years ahead.

AkzoNobels drive for operational ex-cellence and performance improvement

is supported by its sustainability and in-novation strategy focused at: Creating more value from fewer resources.

AkzoNobel has defined the following sustainability ambitions:

In 2020, AkzoNobels downstream eco-premium products will account for 20% of revenue.

Carbon emissions will be reduced by 25% to 30% per ton of product by 2020 (base 2012).

Since the announcement of the perfor-mance improvement program in October 2011, AkzoNobel has delivered structur-al EBITDA gains of 250 million, while one-off costs amounted to 292 million, excluding North America Decorative Paints. AkzoNobel will accelerate the program and expects to achieve the full EBITDA benefit of 500 million, a year early, in 2013, with associated costs esti-mated at 205 million.

AkzoNobels new financial targets are

designed to drive operational excellence, cash generation and accountability and demonstrate a clear focus on creating value for shareholders.

Return on sales, defined as operating income divided by revenue, targeted at 9% by the end of 2015.

Return on investment target of 14% by the end of 2015. This reflects AkzoNobels focus on delivering value through achieving returns in excess of its cost of capital.

Net debt/EBITDA less than 2.0 times by the end of 2015. This will give a fuller measure of cash generation and not just one component.

Based on the market environment and the leading indicators in its end-user segments - Buildings and Infrastructure, Transportation, Industrial and Consumer Goods AkzoNobel is assuming sales growth (CAGR) of around 4% per year between 2012 and 2015. CW

Index to CompaniesThis index gives the starting page for a department or feature with a sig-

nificant reference to a manufacturer of paint, coatings, adhesives and sealants Subsidiaries are indexed under their own names.

AkzoNobel ....................................................................................10, 22, 40, 58Axalta Coating Systems ................................................................................... 10BASF ...................................................................................................10, 28, 40Benjamin Moore ............................................................................................ 10Crown Paints 32Dunn-Edwards .................................................................... 10Diamond Vogel .............................................................................................. 38Dunn-Edwards .............................................................................................. 38DuPont Performance Coatings ................................................................. 10, 28DuPont Refinish ............................................................................................. 38Hardide Coatings .......................................................................................... 38Henkel .......................................................................................................... 28Kelly-Moore Paint .......................................................................................... 10Polyglass U.S.A. ............................................................................................. 38PPG .....................................................................................................10, 22, 28Sherwin-Williams ........................................................................................... 38Trimite Coatings ............................................................................................ 10Valspar ............................................................................................................ 10VersaFlex Inc. ................................................................................................. 98

8 As We Go 0313.indd 8 2/26/13 10:08 AM

03_13 CW.indd 1 01.02.13 10:37Untitled-14 1 2/1/13 9:40 AM


Fres

h Pa

int

Global alternative asset manager The Carlyle Group L.P. has completed its acquisition of DuPont Performance Coatings for $4.9 billion and announced that the company is being renamed Axalta Coating Systems. Axalta Coating Systems is a global supplier of coatings to the transportation and industrial sectors. The investment was funded primarily with equity from Carlyle Partners V and Carlyle Europe Partners III.

We are excited to invest in Axalta Coating Systems and believe its strong market position and global footprint will enable the company to capitalize on op-portunities in rapidly emerging markets such as China and Brazil. As experienced investors in the industrial and transporta-tion sectors, the One Carlyle global net-work can help Axalta Coating Systems grow and create value, said Martin Sumner, principal of The Carlyle Group.

Charlie Shaver, the companys

chairman and CEO added, We look forward to this exciting next chapter for Axalta Coating Systems. Our global scale with 35 plants and seven technol-ogy centers around the world, combined with Carlyles industrial focus and global network, position us well for the future.

As an independent company, Axalta Coating Systems will build on a founda-tion of more than 90 years in the coatings industry. The company serves more than 120,000 customers in 130 countries and provides customers with a full range of coating systems.

In addition to driving performance and excellence, one of our greatest strengths is the systems-based approach we take with our customers, said John G. McCool, president of Axalta Coating Systems. Along with coatings, we pro-vide customers a full spectrum of tools and services to help them use our prod-ucts effectively. We offer customers

hands-on opportunities to learn how to use these products and applications tools in our 42 training centers throughout the world. This capability helps our custom-ers improve their performance and pro-ductivity while allowing us to enhance our offerings by gaining a better under-standing of customer preferences.

Axalta Coating Systems develops, man-ufactures and sells coatings and applica-tion tools to automobile repair body shops and original equipment manufacturers in the automotive and heavy-duty truck mar-kets. Its strong market positions are sup-ported by global brands including Standox, Spies Hecker, Cromax and Imron. The companys technology leadership is high-lighted by its best-in-class third generation of waterborne systems developed to ad-dress growing customer requirements for higher productivity and environmentally friendly coatings. Axalta Coating Systems also serves the decorative, architectural,

The Carlyle Group Completes Acquisition of DuPont Performance Coatings

Benjamin Moore Teams With Make It Right at Super Bowl

While there was plenty of action on the field when the Bal-timore Ravens and San Francisco 49ers faced off for Super Bowl 2013, nearby in the Lower Ninth Ward there was ac-tion of another kind.

Thats where Benjamin Moore was quarterbacking a team of skilled painting contractorsmany who traveled from Balti-morewho joined celebrities plus a group of local volunteers from Helm Paint and Decorating to put the exterior coating on the latest home built by Make It Right.

Benjamin Moore has been proud to work with and support Make It Right since its founding, said Benjamin Moore spokes-person Nick Harris of the companys association with the non-profit established by Brad Pitt to provide new, affordable and environmentally sustainable housing for flood victims of Hurri-cane Katrina. Since the Moore brothers started this company 130 years ago in Brooklyn, weve been active members of every community in which our products are sold and in which our inde-pendent dealers do business.

According to Tom Darden, executive director of Make It Right, Benjamin Moore has been a valued partner over the past five years, generously supporting our funding, supplying to date

more than 10,000 gallons of paint products and even curating recommended color palettes that complement our architecture and community. We fully appreciate all of the companys efforts, and are grateful that they stepped up to sponsor this Super Bowl day of service, as well.

The home that the team painted is the 91st to be built by Make It Right. Another three presently are under construc-tion in New Orleans, and it was designed by BNIM Architects of Kansas City, AIAs 2011 Na-tional Architecture Firm Award Winner. The Benjamin Moore colors that were applied to the 1,400-square-foot construction, which will be fully ready for occu-pancy later this spring, included 2145-30 Brookside Moss, AF-115 Lodge, 111 Rancho Clay and 629 Bachelor Blue.

The home that the team painted is the 91st to be built by Make It Right. The Benjamin Moore col-ors that were applied to the 1,400-square-foot con-struction included 2145-30 Brookside Moss, AF-115 Lodge, 111 Rancho Clay and 629 Bachelor Blue.

10-18 Fresh Paint 0313.indd 10 2/25/13 2:11 PM

whos using metallic pigments that leave the competition in the dust? you are.

Rev up your products and drive sales with the most exciting and innovative pigments from Sun Chemical. As a full-service, global pigments provider, we can help you meet all of your coatings needs. And, now that Benda-Lutz is a part of Sun Chemical, our portfolio of metallic effects gives you more choices and better performance than ever before.

For more information, visit us at the European Coatings Show, Hall 4, Stand 451 or www.sunchemical.com/ecs

72900 SunChem Metallics Show Ad for Coating World Trim: 8 x 10.75 Bleed: 8.25 x 11 Live: 7 x 10

72900_MetallicsShow_Ad_CW.indd 1 2/18/13 4:30 PMUntitled-5 1 2/19/13 11:37 AM


Fres

h Pa

int

general industrial and job-coater segments of the powder coatings market under the brands Alesta Powder Coatings, NAP-GARD

FBE Powder Coatings and ABCITE Powder Coatings.

Axalta Coating Systems will con-tinue to do business as DuPont Performance Coatings for the next sev-eral months until the new name is for-mally launched in the second quarter of 2013. The companys beta website AxaltaCoatingSystems.com is under development and will enable visitors to navigate to sites that contain informa-tion about its products and services.

AkzoNobel, American Chemical Society Honor Chemist with Inaugural North America Science AwardAkzoNobel and the American Chemical Society (ACS) named Carnegie Mellon

University Professor Krzysztof (Kris) Matyjaszewski, Ph.D. as the winner of the inaugural AkzoNobel North America Science Award for his cutting-edge poly-mer chemistry research.

The AkzoNobel North America Science Award was created to recognize outstanding scientific contributions by an individual in the fields of chemis-try and materials research conducted in the U.S. or Canada. The AkzoNobel Science Award was first presented in the Netherlands in 1970 and then extended to Sweden (1999), China (2010) and the U.K. (2012).

AkzoNobel established the North America award in 2012 in collabora-tion with ACS to recognize individuals helping to create a more sustainable future through scientific research. The company has a deep commitment to sustainability and has integrated it into every area of its business.

We have honored individuals for

their innovative contributions to scientific research for more than 40 years with the AkzoNobel Science Award, said Graeme Armstrong, executive committee member for research, development and innovation for AkzoNobel. We are privileged to rec-ognize Professor Matyjaszewski and will continue to acknowledge those who are undertaking big, innovative research that can deliver Tomorrows Answers Today.

From his discovery of the atom radical transfer polymerization (ARTP), an inno-vative process of the way macromolecules are made, to educating students and in-dustrial scientists on the new procedures for the polymeric material development, Matyjaszewski continues dedicating his efforts to deliver research that will help advance the field of polymer chemistry. Polymer chemistry, also known as macro-molecular chemistry, is the area of chem-istry that generates advances in everyday products and materials such as building materials, furniture, paints and plastics.

Matyjaszewski will receive a $75,000 cash award and a certificate of recogni-tion. He will be officially honored for his achievements at the ACS 245th National Meeting and Exposition, held April 7-11 in New Orleans, LA.

BASF Supplies Coatings for Mobile CranesBASF now supplies coatings for the mo-bile crane manufacturer Terex Cranes at its plant in Zweibrcken, Germany. The use of ultra high solids coatings solvent-borne coatings with a higher solids con-tent and low volatile organic compound (VOC) emissions plays a central role.

Terex Cranes wanted to further reduce the emission of VOCs during the coating process, said Karl-Heinz Edinger, BASF commercial transport systems Germany. We adapted our ul-tra high solids technology to the specific needs of Terex, which made us win over this customer.

Commercial vehicles such as mobile cranes are exposed to particularly harsh stresses through weather impacts and their use in off-road conditions. BASFs primers and topcoats provide a high level of corrosion protection and weathering resistance. Our topcoats also have high

COMPLETE LINEINTEGRATION

A LEADER IN CUSTOM LIQUID FILLING & PACKAGING EQUIPMENT

Net Weight Fillers with Auto-Clean while dispensing technologies

952.746.1091 | [email protected] | WWW.PASEGROUP.COM

Container Handling & De-Nesting Systems Lid Placing & Closing Class 1, Division 1, Group C&D Environments


Hides when wet. Naturally.Naturally.Hides when wet. Naturally.

Burgess Pigment

WITH TiO2 near historic highs, OPTIWHITEs wet and dry hiding properties may be the solution. From a stable, consistent s upplier with more than sixty years dedicated to serving the coatings industry, consider OPTIWHITE as yo ur natural choice.

+001-478-552-2544 800-841-8999 fax +001-478-552-1772 email: [email protected] www.burgesspigment.com

PO Box 349, Sandersville, GA 31082, USA

ISO 9001

SeahorseBlueBleedUSA-PCI.indd 1 1/7/13 11:35 AMUntitled-2 1 1/7/13 4:35 PM


Fres

h Pa

int

color stability to allow the Terex vehicles to keep their typical col-ors for years to come, Edinger said.

To achieve flawless surface results, BASFs ultra high solids coatings feature special flow properties, since Terex uses spray application to coat the cranes. Depending on the crane model, 250 to 500 liters of paint are applied to the ve-hicle. For comparison, depending on the model, a total of 12 to 15 liters of paint are needed to coat a passenger car.

Terex Cranes Germany, a subsidiary

of Terex Corporation, builds and coats mobile cranes with a loading capacity of up to 3,200 tons at its Zweibrcken plant. The various crane models range from small, maneuverable city cranes to caterpillar vehicles with extension sys-tems that are up to 230 meters high.

With Terex Cranes, we have suc-ceeded in winning a key customer in this segment. We hope that we will strength-en and expand this collaboration in the future and, at the same time, continue to push forward the Ultra High Solids Technology, Edinger added.

Commercial vehicles such as mobile cranes are ex-

posed to particularly harsh stresses through weather

impacts and their use in off-road conditions. BASFs

primers and topcoats provide a high level of corro-

sion protection and weathering resistance.

Senior Dow Director to Lead Keynote for Eastern Coatings Show

The Eastern Coatings Show executive committee has an-nounced that Peter Molinaro, vice president of North America Government Affairs for The Dow Chemical Company, will be the keynote speaker for the inaugural event scheduled for April 29 through May 2nd. Molinaro will be presenting on public policy and the potential manufacturing renaissance resulting from do-mestic energy resources including natural gas.

Molinaro is responsible for U.S. federal and state government affairs professionals, advocacy management and maintaining relationships with national political and governmental organiza-tions for The Dow Chemical Company. He leads the companys advocacy efforts on U.S. energy and climate change policy.

Molinaro will speak at the Gala Dinner on Wednesday eve-ning, May 1st at the Trump Taj Mahal Casino and Hotel. Tickets to the dinner may be purchased through the website or by con-tacting Fody Associates at [email protected].

The inaugural Eastern Coatings Show, sponsored by the Metropoli-tan New York Coatings Association, Philadelphia Society for Coatings Technology, and the New England Society for Coatings Technology will be held April 29 through May 2nd at the Trump Taj Mahal Casino and Hotel. The show will have more than 40 technical papers presented and 50 exhibitors. The show is planned to offer educational and technical presentations to advance understanding of the theory, science, manufacturing and marketing of coatings as well as showcase the improvements and innovations in coating perfor-mance and functionality beyond conventional expectations. To learn more, go to www.easterncoatingsshow.com.

Peter Molinaro


We look forward to protecting your facades against moisture.

We love your problems.

We can impregnate breathable walls against moisture, and much more besides. Together with our customers, we develop exceptional solutions for exceptional applications. We are the creative surface specialists for industrial coatings, architectural coatings, printing inks and automotive needs. Which problem would you like us to solve for you?

Achtung Lithozeile druckt nicht mit! Diese Datei ist ohne berfllungen angelegt! Farbton Offset-Druck 48c 100m14359 02-206 Evonik Anzeige Englisch Motiv Biopause 4c Format: 203 x 273 mm + 3 mm Beschnitt 03.01.13 amCoatings World, OF, ET Mrz 2013

ww

w.e

voni

k.co

m

Untitled-1 1 1/28/13 9:51 AM


Fres

h Pa

int

Valspar Awarded Contract to Supply Coating for Hongkong-Zhuhai-

Macao BridgeThe Valspar Corporation has been se-lected as the major supplier of con-crete reinforcing steel coatings for the Hongkong-Zhuhai-Macao bridge in China. When completed in 2016, the length of the bridge will span nearly 50 kilometers (30 miles) and is expected to be the worlds longest sea-crossing structure.

Valspar is honored to be appointed the primary supplier of protective coat-ings for this major infrastructure proj-ect, said Roeland Polet, senior vice president of Valspar Global Industrial. As a global leader in protective coatings backed by our unique Valspar Greenbar fusion-bonded epoxy, we are well posi-tioned to partner with steel contractors and have the broad experience to support large-scale global projects of this nature.

Valspar Greenbar fusion-bonded ep-oxy (FBE) coating meets the rigorous requirements of bridge building. The coating provides optimum long-term cor-rosion protection for the bridges steel-reinforcing bar, dowel bar and related bridge components; maximum flexibil-ity for bending fabrication; and abrasion and impact resistance.

The new bridge will serve as a criti-cal hub connecting southern Guangdong province, Hong Kong and Macao and be identified as a significant landmark in the Hong Kong and Pearl Delta region of Guangdong Province. The bridge width will be 33.1 meters, with a tunnel width of 2 meters by 14.25 meters and vertical clearance of 5.1 meters. The design live load for the bridge complies with both Chinas Highway Class I for Bridge Design Vehicle Loads and the live load provisions in the Design Manual for Roads and Railways of Hong Kong. The designed service life of the bridge is 120 years.

Valspars Greenbar coatings have been

used for more than 30 years and are in-stalled in more than 100,000 structures worldwide. One recent project featuring Valspar Greenbar coatings is the high-speed rail network being built across China where approximately 100,000 metric tons of Valspar Greenbar coated rebar were used in the construction of railbeds. Another globally recognized project is the One World Trade Center in New York City, where an estimated 4,500 metric tons of Valspar Greenbar coated rebar were used.

Dunn-Edwards Adds New Videos to Its How-To Series with Painting Tips from the Pros Dunn-Edwards answers the most-asked paint questions by do-it-yourselfers with the addition of seven new videos to its how-to video series. The videos feature tips and instruction on how to properly prep surfaces and apply paint from professional painter Cole Schaefer.



Fres

h Pa

int

Homeowners can find help on tough paint projects with details on How to Paint a Front Door, How to Paint a Wood Gate, How to Paint a Wood Deck and How to Paint Wood Siding. And every-one can learn secrets from the pros with topics like Painting Tips and Tricks and How to Choose the Right Paint. For larg-er painting projects, many people opt to hire a painting contractor. The How to Choose a Painting Contractor video of-fers a good checklist of questions to ask.

All 17 Dunn-Edwards How-To Paint videos are available on YouTube and the Dunn-Edwards website.

PPG Distributor Development Program Reaches 10,000-Student MilestonePPG Automotive Refinish announced that 10,000 distributor partners have now participated in PPGs Distributor Business Development Program cours-es. The milestone was reached on December 4, 2012 at PPGs Excellence in Distribution Management (EDM) class held in Orlando, Florida, at the Rosen Shingle Creek Hotel.

The EDM class is one element of a comprehensive curriculum PPG has creat-ed to support its independent paint, body and equipment distributors by providing them with the practical and professional skills required to successfully operate a productive and profitable business.

We spend a lot of time and effort on distributor training at PPG Automotive Refinish; its a critical component of our offerings, said Bob Wenzinger, PPG distributor program director. We want every one of our distributors to have healthy, successful businesses. Obviously that means providing them with great PPG products to selland we do that, but it also means giving them industry-leading training so they can outpace the competition and build and operate a thriving business.

The student enrollment of the dis-tributor training program includes dis-tributorship owners, managers, sales staff and the other key personnel involved in running a business.

Im proud of the fact that weve

trained 10,000 people so far, added Wenzinger. Theres tremendous demand for these courses. Our distributors find them very valuable.

Courses are conducted by PPG Automotive Refinish leadership and lead-ing consultants in the automotive refin-ish industry and cover a variety of critical topics for the paint body and equipment

distributor including finance, marketing, operations, selling skills, counter person develop-ment, commercial product busi-ness development and more.

In 2013, PPG will offer more than 30 distributor-specific courses throughout the U.S. and Canada.



Fres

h Pa

int

Coatings and Adhesives Corp. Raises Prices on Water-based

Coatings, Energy Curable Coatings and Adhesive ProductCoatings and Adhesives Corporation re-cently announced a price increase on all lines of its high performance water-based, energy curable coatings and adhesives. Coatings and Adhesives Corporation said that although the company is always working to reduce costs, the increases in the costs of styrene, benzene, other special chemical compounds and trans-portation have increased the cost more than the company can absorb through increased efficiencies and other cost con-tainment methods.

While materials based on delivered pricing will vary, on average material in-creases FOB Leland, North Carolina will be: water-based coatings will increase by 5%-8%; energy curable materials will increase by 2%-5%; and cold adhesives will increase by 3%-6%.

Trimite Global Coatings Acquires Trimite Brand Names and IPRTrimite Global Coatings has purchased all intellectual property (IPR), including trademarks and brand names, relating to the former Trimite Ltd. business that went into administration in March 2009. Stretford Group, the owner of Trimite Global Coatings, secured the rights.

I am delighted with the speedy ac-quisition of the assets - we are now able

to protect the heritage and goodwill as-sociated with the Trimite name in the coatings industry, said Jonathan Irwin, group managing director of Trimite Global Coatings. We have worked with Stretford Group to become financially stable and create a firm foundation for growth by focusing on our key markets and technologies.

Trimite Global Coatings has an-nounced that it has invested in R&D with the aim of setting new standards in global coatings production and technol-ogies and re-emerging as a key player in the global coatings industry. The R&D investment will further enhance the com-panys comprehensive range of coatings technologies supplied to clients in the U.K. and internationally.

Trimite Global Coatings products include paints, powder coatings and pre-treatments for key markets such as ve-hicles and engines, defense and aerospace, homeware, security, agricultural and con-struction equipment and teletronics.

DuPont Performance Coatings Launches New IntelliMistFor refinish shops in high heat, low humidity desert-like conditions, the IntelliMist spray booth climate control system from DuPont improves shop pro-ductivity by making it easier to use all waterborne and solvent paint products, and greatly improving painters comfort. IntelliMist is available to U.S. DuPont Performance coatings shops.

IntelliMist is a process improvement tool. Because it automatically controls a

spray booth during the spray cycle at the optimum level for humidity, it provides an extremely productive spray booth cli-mate, according to the company. It can also be used after the bake cycle to rap-idly cool down the booth and the panels. Vehicles are much more workable due to lower part and body temperatures.

Optimizing spray booth climate means that all waterborne and sol-ventborne products can be used more efficiently and consistently. It can mini-mize the need for specific additives and adjustments and painters dont have to constantly adjust paint mixtures to deal with conditions, according to the com-pany. Painters will no longer have to struggle to keep a wet edge.

Painter comfort is also greatly en-hanced. With a controlled spray booth climate, painters can work normal shifts no more starting at midnight and stop-ping by noon in high heat, low humid-ity conditions. Installation is normally completed in less than a day and there are no structural issues adding it to an existing booth.

Kelly-Moore Paints Opens Two New Bay Area StoresKelly-Moore Paint Company, Inc. has opened two new stores in the Bay Area San Francisco and Lafayette. The Lafayette store is located at 3707 Mt. Diablo Blvd., Lafayette, CA 94549. The newest San Francisco store is located at 701 Bayshore Blvd., San Francisco, CA 94124. The company recently opened a new store in San Jose and now has 63 stores in the Bay Area. CW


Untitled-27 1 2/15/13 10:13 AM


Mar

ket R

epor

ts

A new market report titled Antimicrobial Coatings Market - Global Industry Analysis, Market Size, Share, Trends, Analysis, Growth and Forecast, 2012 - 2018, by Transparency Market Research observes that the antimicrobial coatings demand was worth $1.6 billion in 2012 and is estimated to reach $3.3 billion in 2018, growing at a CAGR of more than 12% from 2012 to 2018. North America is the global revenue leader in antimicrobial coatings and domi-nates the demand for these products.

Owing to the ability to ward off mi-crobial growth effectively, there is a growing demand for antimicrobial coat-ings in medical applications such as cath-eters and other medical devices. With the realization that indoor air pollution can cause more harm to health, there had also been a noticeable rise in the use of antimicrobial coatings in improvement of indoor air quality. Increased use of plastic packaging in food applications has result-ed in growing demand for additives and coatings in the food packaging industry. However, factors such as questionable ef-ficacy of coatings used in apparel, health issues associated with the use of active sil-ver as the main ingredient and stringent regulations governing the antimicrobial coatings market are restraining growth, according to the report.

Active silver has emerged as the most widely used raw material for antimicro-bial coatings as it is believed to show the highest efficacy levels compared to other compounds. Antimicrobial powder coatings demand is expected to grow at a CAGR of 12.4% by volume and at a CAGR of 9.1% by volume, from 2012 and 2018. Surface modifications and coatings account for the larger of the two product-based market shares and are expected to show steady growth rates at CAGR of 8.8% by volume and at CAGR of 12.2% by revenue from 2012 to 2018. The market has also been segmented on the basis of the microbes; the coatings of-fer protection against organisms such as

E. coli, Listeria, Pseudomonas and others.Antimicrobial coatings demand for

indoor air quality is expected to grow at a CAGR of 12.8% from 2012 to 2018. Similarly hospitals and healthcare centers have a need for an antimicrobial atmo-sphere and coatings have been adapted accordingly for exclusive use in medical locations. The medical/healthcare mar-ket demand for antimicrobial coatings is therefore expected to grow at a CAGR of 12.6% from 2012 to 2018. In the case of mold formation, various coatings and products containing antimicrobial sub-stances are being put to use as an after-care method. Most of the buildings where mold aftercare is necessary are older than five years and hence the market is expected to grow at a high CAGR of 13.1% from 2012 to 2018.

The key market players include AkzoNobel N.V., Sherwin-Williams Company, Dow Microbial Control and Diamond Vogel Paints. There are many other market players such as BASF, E.I. du Pont de Nemours & Company (DuPont), Nippon Paint Co. Ltd., RPM International Inc., Royal DSM N.V., Sono-Tek Corporation and others that also have good market bases in antimi-crobial coatings.

Indian Paint Market Expected to Reach 49,545 INR Crs by 2016-2017: IPA StudyThe Indian Paint Association (IPA) re-cently hosted the 26th Indian Paint Conference in Mumbai. The theme for this years conference was Coating 2020 Future Redefined.

In order to have a better understanding of the paint market in India, IPA, appoint-ed AC Nielsen to undertake a detailed and comprehensive study to estimate the size of the market, both in decorative and Industrial paints. Indian Paint Market Size & Future coating industrys latest report by AC Nielsen was unveiled at the

conference. This report covers the estimat-ed trends in different product categories with an in-depth analysis of the end user market in the decorative paints segment.

Key highlights of the Study by IPA & AC Nielsen:

Indian paint market is expected to reach 49,545 INR Crs by 2016 17, decorative market will continue to grow and would have higher share compared to industrial paints.

Overall paint value market is es-timated at 26,040 INR Crs for FY 2011-12. Share of decorative paint is 18,490 INR Crs (71%) and share of industrial paint is 7,550 INR Crs (29%)

Overall paint volume market is pegged at 3.11 million MT, share of decorative is 2.405 (77.3%) and in-dustrial 0.705 (22.7%) Million MT

Per capita consumption of paint is es-timated at 2.57 kgs for FY 2011-12

High growth witnessed for exterior emulsion, interior emulsion, wood coatings in comparison to 2007-2008 Nielsen Survey

Use of water-based paints is grow-ing in the Indian paint market, new trends are catching up in-cluding paints with low VOC, no added lead, mercury, chromium, odorless paints

Industrial paint market in terms of growth rate, high growth witnessed for auto OEM, protective, powder coating and auto refinish paints in comparison to 2007-08 Nielsen Survey.

Speaking on this occasion, Ramakanth Akula, president, deco-ratives, Nippon Paint (India) Private Limited and president of IPA said, With more than 100 years of knowl-edge and expertise from its dedicated members, the Indian Paint Association has played a crucial role in shaping up the Indian Paint Industry. After an

Global Antimicrobial Coatings Market to Reach $3.3 B by 2018, Predicts TMR

20-21 Market Reports 0313.indd 20 2/25/13 2:19 PM


Mar

ket R

epor

ts

overwhelming response from the gov-ernment, the paint industry, trade part-ners, research and R&D technologists and other stakeholders year on year, the Indian Paint Association is glad to announce the 26th edition of the Indian Paint Conference.

The three-day conference featured ses-sions on Global Coatings Trends, Shaping Sustainability Concepts in Coatings, Shifts in Consumer Profile, Performance Coating Opportunity for India amongst others by the senior management from A.T. Kearney, DuPont, Toyota, Dow Chemicals, BASF, Asian Paints, Kansai Nerolac Paints Ltd, Tata AutoComp Systems, Berger Paints and AkzoNobel. The conference had par-ticipation from more than 270 associates and 75 paint companies including Asian Paints, Kansai Nerolac Paints Ltd, Berger Paints, Nippon Paints, AkzoNobel and Premium Coatings.

Venture Planning Group Offers Global Paint and Coatings Market A new 142-page report from Venture Planning Group provides analysis of the global paint and coatings market outlook, as well as supplier strategies, marketing tactics, and technological know-how.

The report presents a worldwide stra-tegic overview of the paint and coatings market, including:

Sales forecasts for major market segments.

Sales forecasts for key geographic regions:

- North America, Europe, Asia Pacific, Latin America, Africa, Mideast.

In addition, the report reviews the major U.S. and international regulatory, technological, economic, demographic, and social trends with potentially sig-nificant impact on the paints and coat-ings industry during the next five years, including discussion of such key issues as industry consolidation, market globaliza-tion, environmental regulations and oth-ers. The companies analyzed in this report are AkzoNobel, BASF, DuPont, Henkel, Kansai Paint, Nippon Paint, PPG, RPM,

Sherwin-Williams and Valspar. The company profiles include: Specific business, new product devel-

opment and marketing strategies. Major strengths and weaknesses, e.g.,

managerial, organizational, market-ing and product development.

Anticipated acquisitions, joint ven-tures and divestitures.

Promotional tactics. Distribution approaches. Product service and support. Customer relations. Internally developed and acquired

technologies, processes, and related capabilities.

Proprietary technologies and patent litigations. CW

20-21 Market Reports 0313.indd 21 2/25/13 2:19 PM


Fina

ncia

l New

s

PPG Industries reported fourth quarter 2012 net sales of $3.6 billion. Net in-come for the quarter was $227 million, or $1.46 per diluted share, including nonrecurring charges. Adjusted net in-come for the quarter, excluding the non-recurring charges, was $238 million, or $1.53 per diluted share. Fourth quarter 2011 net sales were $3.5 billion, and net income was $216 million, or $1.39 per diluted share.

PPGs annual sales for 2012 were $15.2 billion, an increase of 2 percent versus 2011 sales of $14.9 billion. The companys full year 2012 net income was $941 million, or $6.06 per diluted share, versus 2011 net income of $1.1 billion, or $6.87 per diluted share. Full year 2012 adjusted net income was $1.2 billion, or $7.94 per diluted share. The companys full year tax rate on ongoing earnings was 25 percent in 2012 and 2011.

Fourth quarter 2012 net income in-cludes after-tax charges of $11 million, or 7 cents per diluted share, for acquisi-tion-related costs and costs directly re-lated to the separation of the commodity chemicals business and merger with a subsidiary of Georgia Gulf Corporation. The company anticipates additional ac-quisition- and separation-related costs in the first quarter 2013. There were no nonrecurring charges in last years fourth quarter or full year 2011. The 2011 re-sults included a favorable catch-up im-pact from a fourth quarter adjustment of the full year 2011 tax rate from 26 percent to 25 percent and from a favor-able tax audit settlement. A Regulation G Reconciliation of fourth quarter and full year 2012 adjusted net income and earnings per diluted share to reported net income and earnings per diluted share is included below.

Our record fourth quarter results capped off an exceptional year for the company, driven by excellent operat-ing performance and several significant strategic actions that have accelerated

the pace of our portfolio transforma-tion, said Charles E. Bunch, PPG chair-man and CEO. During the quarter, as we did during the first nine months, we grew our sales and earnings despite moderate overall economic conditions that varied by region and end-use mar-ket, and continued negative impacts from currency translation.

Our coatings businesses continued to perform well, growing earnings by 30 per-cent versus last years fourth quarter, and the Optical and Specialty Materials seg-ment delivered similar earnings growth. Commodity Chemicals segment earnings strengthened versus last year despite low-er than anticipated sales and higher costs stemming from two unplanned produc-tion outages. Full year earnings for the Commodity Chemicals segment exceeded the prior-year record. Glass segment earn-ings were lower, as market conditions for fiber glass remained challenging.

In summary, 2012 was an excellent year for PPG and its shareholders. We achieved new adjusted-earnings-per-share records in each quarter and delivered higher full year earnings in each major region, including Europe, reflecting our strong operating execution, Bunch said. We continued our history of strong cash generation, delivering record full year cash from operations and ending the year with $2.4 billion of cash and short-term investments. We also raised our annual dividend payout for the 41st consecutive year, a legacy we are proud to continue.

Looking ahead, Bunch said he antici-pates economic trends will remain varied by region in 2013, with a solid growth bias remaining in North America, improv-ing growth prospects in Asia and subdued activity levels in Europe. We will contin-ue to aggressively manage our businesses, including delivering incremental 2013 savings of between $70 million and $80 million from our previously announced restructuring program and targeted price increases in our coatings businesses, as

we work to fully recapture inflation from the past two years, he said.

Strategically, we are continuing to complete the necessary actions to sepa-rate the commodity chemicals business, and we expect the transaction to close late this month. We also have a variety of acquisition-related activities underway and anticipate closing the acquisition of the AkzoNobel North American archi-tectural coatings business by mid-second quarter 2013. Lastly, we continue to ana-lyze prudent cash-deployment opportuni-ties for our current strong cash position and anticipated 2013 free cash genera-tion, with a primary focus on deploying that cash for profitable earnings-growth initiatives, Bunch concluded.

The company reported that cash and short-term investments totaled approxi-mately $2.4 billion at the end of 2012, up from $1.5 billion at the end of 2011. Full year cash from operations was about $1.8 billion, up 25 percent versus the pre-vious year.

Performance Coatings segment sales for the quarter were $1.2 billion, up 1 percent versus the prior year. Segment sales benefited from continued strength in aerospace demand, high single-digit percentage growth in U.S. architectural coatings sales and modest organic sales gains in automotive refinish. Sales in the quarter were negatively impacted by further weakening in marine new-build activity and lower architectural coat-ings volumes in emerging regions. Sales from acquisitions held for less than one year provided a modest benefit. Segment earnings grew 26 percent to $177 mil-lion. In addition to the earnings impact of the sales increase, the segment deliv-ered lower costs through discretionary cost management and restructuring-related benefits, and while cost inflation continued, it was at lower rates than in prior periods of the year.

Industrial Coatings segment sales for the quarter were $1.1 billion, an increase

PPG Reports Record Fourth Quarter and Full Year Results

22-24 Financials 0313.indd 22 2/25/13 2:21 PM

ABB FranceProcess Automation Division - Cellier Activity 700 bd. Jean-Jules Herbert, F-73100 Aix-Les-BainsPhone: +33 479 35 05 65 - Fax: +33 479 88 37 71e-mail: [email protected]

Helping you face growth potential?

Definitely.

The new plant engineered and recently started up by Cellier Activity of ABB France in Ukraine combines performing and cleantech process solutions to manufacture environmentally friendly decorative paints. The plant includes high-shear dispersers, automatic powder handling, liquid transfers through pigged lines and an open control system which optimize the equipment availability, process flexibility and product quality. By taking into account capacity expansion possibilities, its design aims at satisfying the plant owners requirements to increase market shares and efficiently face growth potential. www.abb.com/industries

Untitled-31 1 2/15/13 11:53 AM


Fina

ncia

l New

s

of $95 million, or 9 percent, versus the prior year. Strong vol-ume growth continued in North America and emerging regions,

more than offsetting persistently weak European demand. Volume growth re-mained the strongest in automotive OEM (original-equipment manufacturer) coat-ings, with company results continuing to outpace industry growth. The packaging coatings business also experienced vol-ume growth in all regions. Demand in the industrial coatings business varied by end-use application, including weaker consumer electronics demand partly off-set by higher automotive parts activity. Segment earnings for the quarter were $144 million, an increase of $38 million, as the earnings impact from the higher sales was coupled with lower operating costs, including the benefits from ongo-ing cost management and restructuring-related savings.

Architectural Coatings EMEA (Europe, Middle East and Africa) seg-ment sales for the quarter were $465 million, an increase of $16 million, or 4 percent, versus the prior year. Sales vol-umes declined 2 percent and currency translation was negative, but these de-clines were countered by increased sales related to the Dyrup acquisition, which added about 4 percent to segment sales, and improved pricing. Segment earnings were $9 million, up $1 million, as lower costs, including restructuring cost bene-fits, were partly offset by the impact from lower sales volumes.

Commodity Chemicals segment sales for the quarter were $405 million, up $7 million versus the prior year. Selling prices were modestly lower year-over-year stemming from lower chlorine pric-ing, including chlorine price decreases realized earlier this year, which was more than offset by higher caustic pricing and increased volume.

Caustic pricing was higher both year-over-year and sequentially versus the third quarter 2012. Segment earnings in the quarter were negatively affected by $5 million, resulting from the impacts of lower sales, higher maintenance ex-penses and lower facility utilization stem-ming from two previously announced

unplanned production outages. Despite these negative impacts, segment earnings improved to $72 million, up $9 million versus the fourth quarter 2011, due to lower manufacturing costs from higher operating rates driven by increased cus-tomer demand.

One of the previously announced un-planned outages is expected to continue to impact PPGs results for Commodity Chemicals in January 2013, with an es-timated negative earnings impact for the month of January in the $5 million to $10 million range based on reduced sales, negative sales mix and lower oper-ating rates. Based on currently available information, production is anticipated to return to near-normal levels toward the end of January.

PPG intends to report results for the Commodity Chemicals segment in dis-continued operations in 2013, follow-ing the Commodity Chemicals business separation transaction that is currently anticipated to be completed at the end of January 2013.

AkzoNobel Publishes Q4 and Full-Year 2012 ResultsAkzo Nobel N.V. published its fourth quarter and full-year 2012 results. Revenue for the year was up 5 percent driven by favorable currencies and pric-ing, which was partially offset by a de-cline in volumes. EBITDA for the year was 4 per-cent higher at 1,901 million (2011: 1,834 million) helped by the perfor-mance improvement program, which contributed 276 million to EBITDA. As a consequence of the impairment charge of 2,106 million in Q3 related to Decorative Paints, we recorded a full-year operating loss of 1,244 million. Excluding this impairment charge, oper-ating income was 862 million positive (2011: 1,145 million). AkzoNobel delivered a strong set of results in difficult markets, underpinned by the performance improvement pro-gram which exceeded our intermediate targets, said CEO Ton Bchner. Commenting on the outlook Bchner said: The economic environment re-mains challenging and we expect no

fundamental changes in the trends that we have seen recently in our businesses. We will continue to focus on performance improvements and operational efficien-cies in order to benefit from our strong portfolio of businesses with many leading market positions and exposure to growth markets.Business PerformanceDecorative Paints was impacted by weaker demand in the European markets. Specialty Chemicals delivered a robust performance, despite weaker demand in the second half of the year. Performance Coatings recorded a strong performance driven by margin management and oper-ational efficiency actions, despite weaker volumes overall.Portfolio Changes On December 14, 2012, AkzoNobel an-nounced the sale of Decorative Paints North America to PPG. On December 28, 2012, the company completed the sale of Chemicals Pakistan, which was subsequently deconsolidated. In early 2012, AkzoNobel acquired Boxing Oleochemicals in Specialty Chemicals the leading supplier of nitrile amines and derivatives in China and throughout Asia. The Schramm/SSCP acquisition account-ed for the positive acquisition effect in Performance Coatings as these activities were consolidated from Q4 2011.Incidental ItemsAkzoNobel incurred higher restructuring costs, mainly in mature markets, as the company implemented its performance improvement program. Restructuring ac-tivities are ongoing across the businesses, with the restructuring being stepped up in the European Decorative Paints busi-ness in Q4.Raw Materials On average, raw material costs were stable compared with the previous year, with the upward pressure on oil prices offsetting softer titanium dioxide prices. Proposed DividendAkzoNobel will propose a total dividend for 2012 of 1.45. A final dividend will be paid in cash unless shareholders elect to receive a stock dividend.

The 2012 full-year and Q4 report can be read on www.akzonobel.com/quarter-lyresults. CW

22-24 Financials 0313.indd 24 2/25/13 2:21 PM

Solvay helps you develop eco-friendly formulations

Solvay offers newest generation of innovative performance additives for environmentally friendly paints, coatings and emulsion polymers.

w RHODOLINE APE-free and Zero-VOC paint additives including defoamers, wetting and dispersing agents, and functional additives for freeze/thaw improvement and extended open-time

w RHODOSURF APE-free surfactant technologies for a wide

range of resin emulsion applications w SIPOMER specialty monomer technologies offering better

adhesion and improved stability for emulsion polymers

Rhodia is now Solvay

North AmericaPhone: +1-609-860-4000Fax: +1-609-860-0463

EuropePhone: +33 (0) 1 53 56 50 00Fax: +33 (0) 1 53 56 53 90

Asia PacificPhone: +65 - 6291 1921Fax: +65 - 6394 3376

Latin AmericaPhone: +55 11 3741-7637Fax: +55 11 3741-8378

[email protected]

Visit usin

Booth Hall 1,

Stand1-318Eu

ropean

CoatingsShow

March18

-21

Untitled-6 1 2/21/13 12:30 PM


Pate

nts

U.S. 8,197,654 B2PPG Industries has been awarded a patent for a method for preparing an electrode-positable coating comprised of mixing a flatting agent with an electrodeposit-able resin; combining the mixture with a pigment paste to form a flatting agent-pigment paste mixture; and combining the flatting agent-pigment paste mixture with an electrodepositable resin; the flat-ting agent is comprised of silica, clay, talc, barite, calcium carbonate, barium sulfate, aluminum silicate, sodium aluminum sili-cate, hollow spheres of alumina silicate, potassium aluminum silicate, magnesium silicate or combinations thereof.

Valspar Patents Treatment for Cement Composite U.S. 8,202,581 B2Valspar Sourcing, Inc. has been granted a patent for a method for preparing a coated article comprised of providing a ce-ment fiberboard substrate having an outer surface, applying directly to the cement fi-berboard substrate an aqueous treatment comprised of at least one phosphorus acid or salt of a phosphorus acid, and applying atop at least the treated substrate one or more of a sealer, primer or topcoat.

Imperial Chemical Patents Low VOC Coatings U.S. 8,188,183 B2Imperial Chemical Industries has been granted a patent for an autoxidisable coating comprised of a liquid dispersion medium and a binder wherein the binder is comprised of an unsaturated copoly-mer which is produced by reacting at least one unsaturated fatty acid drying oil com-ponent and an ethylenically unsaturated monomer, the unsaturated fatty acid reacts with an oxirane group on the ethyleni-cally unsaturated monomer to yield a first reaction product and subsequently react-ing the first reaction product with one or more monomers copolymerizable with the product of the first reaction and selected

from the group consisting of acrylic acid esters, methacrylic acid esters, acrylic acid, methacrylic acid, acrylic acid esters of ali-phatic alcohols, acrylic acid esters or aro-matic alcohols, methacrylic acid esters of aliphatic alcohols, methacrylic acid esters of aromatic alcohols, styrene, substituted styrenes, vinyl carboxylate esters and vinyl carboxylate olefins selected from ethylene, propylene or butene-1 and styrene or its homologues and at least 15% by weight of the binder is present as microgel, which is the result of the two reaction steps and which is insoluble in tetrahydrofuran.

United Technologies Patents Thermal Barrier Coating U.S. 8,216,687 B2United Technologies Corporation has been granted a patent for an article com-prised of a metallic substrate; a coating system atop the substrate and comprised of an alumina-chromia layer having a thickness at least 50% of a total thickness of the system; and a bondcoat between the substrate and the alumina-chromia layer.

Omnitech EnvironmentalPatents Coating Additive U.S. 8,188,184 B2Omnitech Environmental has been awarded a patent for a vehicle system comprised of by weight relative to the vehicle system, 4%-45% of a first com-ponent, the first component comprised of at least one material selected from the group consisting of an acrylic resin solution, a latex dispersion, a urethane solution, a microcrystalline wax solu-tion, and a vegetable oil; 50%-90% of a second component, the second compo-nent comprised of at least one material selected from the group consisting of a fumaric resin solution and an acrylic res-in emulsion; and 0.5%-10% of an aque-ous solution of an additive comprised of the reaction product of a first reagent

comprised of a carboxylic acid; and a second reagent comprised of at least one material selected from the group consisting of a dialkylaminoalkyl acry-late monomer and a dialkylaminoalkyl methacrylate monomer.

Polyguard Products Patents Mold Inhibiting Coating U.S. 8,202,919 B2Polyguard Products, Inc. has been grant-ed a patent for a composition for appli-cation to provide a water barrier coating on a construction surface comprised of at least one of wood, cement, masonry, plaster, stone, clay and brick. The com-position is comprised of an aromatic hydrocarbon solvent; styrene-based polymer; and an antimicrobial effective amount of triclosan.

Sun Chemical Patents Multi-Color Pearlescent Pigments U.S. 8,211,224 B2Sun Chemical Corp. has been granted a process for making a pearlescent pigment comprised of reducing a metal oxide coated substrate with a hydrogen source in the presence of a particulate noble met-al catalyst in a liquid medium.

Rockwood Patents Process to Produce Red Iron OxideU.S. 8,206,681 B2Rockwood Italia SpA has been granted a patent for a process for producing red iron oxide comprised of providing a fer-rous chloride feedstock, precipitating high surface area lepidocrocite seeds hav-ing a BET surface area of greater than 175 m2/g by mixing the ferrous chloride feedstock with an alkali and oxidizing the obtained mixture and growing the lepi-docrocite seeds at an overall acidic pH, wherein the growing of the lepidocrocite seeds is carried out by adding further fer-rous chloride feedstock and alkali to the mixture, whereby the lepidocrocite con-verts into hematite. CW

PPG Patents Method for Preparing an Electrodepositable Coating

26 Patents 0313.indd 26 2/25/13 2:24 PM

Trust Chem- A Unique Supplier of Organic Pigment

Visit us at the European Coatings SHOW 2013Hall 7, Booth No. 625

TRUST CHEM USA1050 Main Street,Suite22,East Greenwich,Rhode Island 02818Tel:401 398 7301 Fax:401 398 7321E-mail:[email protected]:www.trustchemusa.com

Untitled-22 1 2/7/13 11:48 AM


International Coatings Scene Europe

by Sean Milmo European Correspondent [email protected]

Cars sales have been falling in Western Europe as yet another economic down-turn confirms expectations that the re-gions recovery from the 2008 financial crisis will be a lengthy process.

However, while demand for cars declines, large sums are being invested by automobile manufacturers in the modernization of their paint shops in the region to cut production costs, particularly through reduced energy consumption, and to make them more eco efficient.

This means that OEM coatings producers and their raw material suppliers have to find ways of offsetting shrinking margins.

Squeezed profitability in the regions car

sector over the last few years is thought to be a major reason why DuPont decided to pull out of the segment by recently selling DuPont Performance Coatings (DPC), predominantly an OEM and auto refinish coatings business, to Carlyle Group, a Washington-based private equity company.

In the first half of last year, DuPont Performance Coatings GmbH, Wuppertal, Germany, which is at the heart of the OEM coatings operation of DPC, reported a 2 per-cent rise in sales to $2.1 billion. Pre-tax oper-ating profit soared by 30 percent from $138 million to $179 million.

The increase pushed up the sales margin from 6.6 percent in the same period of 2011 to 8.4 percent but this was still well short of DuPonts reported target of 11 percent for its coatings operation.

With fewer cars being produced for the regions core automobile market in Western

One of the

attractions of

the European

automobile

sector to coatings

producers and

their raw material

suppliers is

that a strong

presence in the

regions OEM

segment offers

opportunities for

sales stimulated

by demand

outside Europe.

Europe OEM Coatings Market Sees Falling Sales But Increased Investment in Paint Shops

28-29 Europe 0313.indd 28 2/25/13 2:25 PM


International Coatings Scene Europe

Europe, OEM coatings businesses can achieve higher revenues only by provid-ing added value. Often this can only be realized by contributing to the innova-tions and initiatives aimed at pushing down costs and raising efficiencies.

New car registrations in the European Union and non-EU Western European states such as Norway and Switzerland went down by almost 8 percent to 12.5 million last year, according to market re-searchers PwC Autofacts.

This was the fifth successive decline in new car registrations in the region so that demand is still 3.5 million units below what it was in 2007. PwC Autofacts is expecting a small recovery later in 2013 but this will not be sufficient to prevent a further decline of 1.2 percent in registra-tions this year.

Nonetheless, drops in demand in countries like Germany have been partly offset by strong export sales in markets outside Europe. In the UK both sales and production increased last year because of exports to non-European regions, espe-cially of premium cars.

One of the attractions of the European automobile sector to coat-ings producers and their raw material suppliers is that a strong presence in the regions OEM segment offers opportuni-ties for sales stimulated by demand out-side Europe. European car companies, especially the leading German manufac-turers Volkswagen, Daimler and BMW with their ranges of global brands are not only big exporters but also builders of new plants in high growth areas like the Asia Pacific.

However, with demand shrinking in Europe and intense price competition from domestic OEM manufacturers in the emerging economies, car companies in Europe have to continue to slash their own production costs. Automotive companies (in Europe) have trimmed any remaining fat and are now cutting into the bone to sustain their business opera-tions, said Giorgio Elefante, PwC auto-motive partner.

With paint shops the biggest cost is energy. A conventional paint shop can account for as much as 70 percent of a car plants total energy consumption

and of gas 92 percent, according to the figures from Durr AG, the German global leader in paint shop installation and engineering. Another high cost fac-tor is the levels of wastage of paints and other raw materials.

As a result, innovations in paint shop technologies have been primarily aimed at reducing energy consumption and waste. These are being achieved by improved pretreatment and elec-trocoating technologies, such as a full rotation of the car body in the dipping tank, less use of drying ovens, more separation and collection of solid par-ticles and greater use of robots and automatic atomizers for electrostatic paint applications.

While car manufacturers have been announcing plans to close plants in Europe because of overcapacity in the region, many of the remaining ones are having or will have their paint shops re-built or refurbished.

In the first nine months of last year, Durrs sales went up by 44 percent in Germany and 32 percent in the rest of Europe, whereas in the rest of the world they dropped.

Most of the increase in sales in Europe last year has come from engineer-ing and equipment for paint shops, ex-plained Gunter Dielmann, Durrs investor

relations manager. We dont expect such a strong year in Europe in 2013 but over the next few years the paint shop market will remain stable in the region because the trend is towards cutting the cost of painting cars through the modernization of application technologies.

Coating producers have been strengthening their contribution to the improvements in these technologies through new innovations in integrated processes, which reduce the number of paint layers requiring drying.

PPG Industries has introduced a sys-tem that eliminates the need for a primer by enhancing the properties of two layers of basecoat without requiring a heated flash-off zone in between. Another inno-vation allows wet-on-wet applications of primers, basecoats and clearcoats with-out any flash-off zones in between.

BASF Coatings has been investing in electronic equipment in its R&D centers to enable it to replicate the widening range of automatic equipment in OEM paint shops. It has been introducing at its European R&D units a new paint ap-plication robot whose control software

has been developed by BASF itself. (It) simulates nearly any situation at paint-lines all over the world, says Walter Jouck, head of the companys coating technology management.

It has also been forming research part-nerships for making innovations and rais-ing efficiency. It has a joint venture with Henkel AG & Co KGaA, Dusseldorf, to develop improvements to metal pretreat-ment and dip coating processes.

BASF has recently completely a study with Durr on the eco-efficiencies of car coating processes so that the two compa-nies can work together to raise the eco-efficiency of individual paint shops. The conditions and the impact factors at the car manufacturers and their plants vary, explained Alexander Haunschild, BASFs head of OEM Coating Solutions Europe. There is no standard answer to the ques-tion as to which process is best.

What is certain is that in the future car manufacturers in Europe will want the lowest possible costs while achieving the highest possible quality and eco stan-dards at its paint shops. CW

European car companies...with their range of global brands are not only big exporters but also builders of new plants in high growth areas like the Asia Pacifc.

28-29 Europe 0313.indd 29 2/25/13 2:25 PM


International Coatings Scene Latin America

by Charles W. Thurston Latin America Correspondent [email protected]

Brazils Metalgrafica Trivisan S.A. is investing an estimated $25 mil-lion, including $9 million worth of German technology, to double its annual metal can production capacity to 900 tons per year, according to market reports. The investment will go into the companys So Jos dos Pinhais, Parana state factory. Among new processes the company will add are UV curing and plastic lid liners.

With 2011 sales of about $25 million, Trivisan in May of last year predicted a 30 percent increase in sales for 2012, from its focus on the middle market of small and large paint and coatings producers. Trivisan launched a stock sale program to cover the cost of the new investment, and also plans to divest non-core assets.

Trivisan produces a range of cans in sizes from 125 ml, or approximately 1/32nd of a U.S. gallon, to 18 liters, or approximately five U.S. gallons. Among customers in Brazil are Tintas Farben and BASF, Trivisan noted.

Among an estimated universe of 40 metal can producers in Brazil, close Trivisan competitors include Brasilata, of Sao Paulo. Brasilata, which claims a 45 percent market share of industrial metal cans in Brazil, has invested more than $10 million over the past few years to bring its capacity up to 70 million tons, with the newest of four plants in Recife, in Pernambuco state. The company last year was voted as Packaging Supplier of the Year by the So Paulo State Paint and Varnish Industry Syndicate, or SITIVESP. Brasilata executives have speculated on the possibility of off-shore investments in either the United States or China.

Crown Holdings, of Philadelphia, is a more formidable multinational competi-tor. In a fourth-quarter 2012 conference

call transcribed by Seeking Alpha, Crown Holdings chief financial offi-cer Timothy Donahue said, Volume in Brazil, Colombia and Mexico continued to be strong, up more than 16% for the year, offsetting a 1.5% decline in North America. The overall Brazilian market was up 7% in 2012, with our share of the market growing to almost 26% on the back of investments made in 2009 and 2011. We expect another year of high utilization rates in each region across the entire segment, with improving produc-tivity in 2013. The company is investing primarily in beverage lines in Brazil now.

Competition in Brazil and elsewhere in Latin American may heat up for paint and coatings packagers in general. In a broad review of packaging materials, including metal cans, Deloitte Corporate Finance

said in its second-quarter 2012 review, It is likely that the packaging industry will see increased M&A activity in the near future involving acquisitions of companies with strong presence and operations in re-gions such as Asia Pacific and South and Central America. These foreign targets are expected to provide a quick entry into these economies rather than developing greenfield operations and will also bring knowledge of local markets. Acquirers may be willing to expand to these loca-tions in an attempt to become more global and diversify their revenues streams.

A key factor in the Brazilian metal can market is the price of steel, which has been increasingly affected by Chinese imports, a Trivisan executive pointed out. About 60 percent of the companys cost of manufacturing is steel, he noted. CW

Brazilian Paint Can Maker Invests

30 Latin America 0313.indd 30 2/25/13 2:26 PM

Organised by:

Supported by:

Latin American Coatings Show 201317 18 July 2013 World Trade Center, Mxico City

The Latin American Coatings Show continues to be the largest coatings event in Latin Americafor raw materials suppliers and equipment manufacturers for the coatings industry.

Exhibiting at the Latin American Coatings Show 2013 will help your company achieve its sales and marketing goals, allowing you the opportunity to:

Meet thousands of new buyers and develop a quality database Raise your profile in the industry and add value to your brands Show your full product range in real life rather than a catalogue or website Overcome objections and accelerate the buying process Launch a new product and generate media interestDevelop a personal and direct relationship with your clients Get immediate feedback on your product range Locate new agents and distributors for your products Participate in and benefit from the international publicity campaigns promoting the Latin American Coatings Show

Take part in the a highly respected show for the coatings industry in Latin America

REASONS TO EXHIBIT AT THE LATIN AMERICAN COATINGS SHOW 2013

For more information on exhibiting please contact:Jeff MontgomeryTel: +44 (0) 1737 855078Email: [email protected]

Agent in MexicoDan BadulescuHead & Arms, S.C - Columbus GroupAngelina 6 B, Col. San Angel, C.P 01000, Mexico D.F.Tel: (5255) 5661-23-91 Tel. & Fax: (5255) 5662-11-98Email: [email protected]

www.coatingsgroup.com

LACS2013fpad_English.indd 1 03/01/2013 10:22Untitled-8 1 2/21/13 1:19 PM


International Coatings Scene Africa

According to

the International

Monetary Fund,

the near-term

growth for Africa

remains broadly

positive, with

growth projected

above five

percent a year

in 2012-13.

by Shem Oirere Africa Correspondent

Although the global economic scene has been undergoing turbulent moments since the 2009 financial crisis, in Africa, projections are looking good and the paints and coatings industry is one of the economic seg-ments that will benefit from the anticipated five percent GDP growth for 2012 through 2013.

The positive economic growth projected by the International Monetary Fund will be but-tressed by increased financing for infrastructure development by governments in the region, an expansion of real estate and transport sectors both in the short and medium term.

The near-term outlook for the region remains broadly positive, with growth pro-jected above five percent a year in 201213, said the IMF in its October 2012 release

IMF Outlook for Sub-Saharan Africa: Maintaining Growth in an Uncertain World. With global commodity prices projected to remain soft and domestic climatic conditions improving, inflation is expected to decline to about eight percent through end 2012, and about seven percent through end 2013.

Crown Paints Kenya CEO, Rakesh Rao, told the companys shareholders in Nairobi recently, the high economic prospects will spur expansion of the building construction indus-try and ensure demand for paints remains in the medium term.

However, the 2009/2010 global financial meltdown impacted the paint and coatings industry in several African countries. Some had to make do with high raw material pric-es, volatile world prices and depreciation of their local currencies.

Paint manufacturers had to balance between rising high production and distribution costs on

Africa Paint and Coatings Market Set for Growth

32-33 Africa 0313.indd 32 2/25/13 2:28 PM


International Coatings Scene Africa

the one hand and ensuring their custom-ers do not flee from them for increasing prices on the other.

Rao said this trend put pressure on the paint makers margins consider-ing also the international pressure of raw materials.

The depreciating local currencies meant high prices for construction materi-als and high interest rates on commercial bank loans. These factors combined to constrain the growth of the regions real estate sector. But overall, analysts predict good times ahead both for Africas econ-omy and the paints and coatings industry.

Market research analyst Frost and Sullivan said, the East African automo-tive coatings market is likely to grow its revenues to $27 million by 2016.

The coatings and adhesives market in East Africa has a significant potential despite the recent global economic down-turn and the challenges and restraints faced by the countries in this region, the analyst said. Investors who capitalize on the developing East African economy will benefit from a market that is driven by minimal competition and limitations when compared to the more developed global markets of Asia, North America and Europe.

The analyst also said that revenues for the adhesives market that stood at $15.6 million in 2009 could rise to $21.7 mil-lion over the next three years.

Heightened industrial and economic development in East Africa is driving the coatings and adhesives market, said Kholofelo Maele, Frost and Sullivans chemicals, materials and food research analyst. Additionally, the recently imple-mented East African Common Market Protocol encourages cross-border trade and industrial expansion within the East African region along with tax benefits for the market participants.

This is unlike the case for South Africa whose performance was greatly affected by the 2009-2010 global financial crisis resulting in stagnation of the automotive and construction industry. The paints and coatings industry market in the country according to UK-based research firm IRL, were forced to move in favor of low-medium quality products.

In its fourth edition report, A Profile of the Middle Eastern and African Paint Industries, IRL paints a bright picture for the North Africa paint and coatings market especially Egypt. Despite the po-litical turmoil that led to the overthrow of former strongman Hosni Mubarak, IRL said the country will lead the anticipated growth of the regions paints and coatings market driven by the 3.5 percent GDP growth expected of 2012 through 2013.

Elsewhere in Africa, the paints and coatings market has seen key players ex-panding beyond their countries of origin or forming partnerships that have re-sulted in new technologies and expanded supply networks across the region.

For example Crown Paint Kenya is ex-panding its operations to Eastern Africas second largest economy, Tanzania, where it is investing in excess of $3 million put-ting up a manufacturing plant.

As we look to widen our footprint within East Africa, we have set aside Ksh 250 million (approximately $3 mil-lion) to launch operations in Tanzania, Rao said. We are currently exporting to South Sudan and Rwandawhich is one of the most innovative and pre-mium markets, Burundi and also getting good market responses in Democratic Republic of Congo.

The Nairobi-based company, whose sales rose from 12.4 million liters to 14 million liters by 2011, also announced a major deal with the worlds second larg-est manufacturer and supplier of paint, Hempel, which had earlier acquired Crown Paints UK. The deal in November 2012, paved the way for the sharing of supply networks and technology between the two paint firms.

By sealing a deal with the second largest manufacturer and supplier of paints in the world, Crown Paints has pulled another rabbit out of the hat. Today we become a player in all sectors of the world paint market, Rao said.

The expansion was also realized in South Africa where leading global chemi-cal company BASFs South Africa sub-sidiary, which also acts as a regional hub to Sub-Saharan Africa, opened the re-gions first dispersions plant as part of its strategy to take advantage of the growth

expected in the coatings and construction industries in coming months.

With this new facility we are well po-sitioned to support our customers growth in South Africa and Sub-Saharan Africa by providing BASFs high quality, premium service and reliable supply, said Jacques Delmoitiez, BASFs president for Europe, Middle East and North Africa when launching the plant in October 2012.

According to Christoph Hansen, BASFs senior vice president dispersions for adhesives and construction Europe: South Africa as an emerging market is very attractive for us. By investing into local production of our high-tech acrylic dispersions we can serve our customers in Sub Saharan Africa even more effectively and flexibly.

A number of countries in Africa have unveiled additional funding for infra-structure development in the medium term. This is expected to trigger demand for infrastructure chemicals and materials according to analysts.

Governments in the Sub-Saharan Africa region have plans to increase infra-structure investments, signaling augment-ed demand for chemicals and materials, said Frost and Sullivan.

The analyst singles out Ghana, Kenya and South Africa where growth of the paint and coatings industry is expected with the governments having programs underway to increase the infrastructure stock.

The African Development Bank too, has changed to an extent of triggering increased investment by both the public and private sector hence creating more growth opportunities for the paints and coatings industry. According to the Bank, recognizing the infrastructure gap as an opportunity, both domestic private inves-tors and emerging partners have scaled up their investments in Africas infra-structure. The Bank went on to say that increased private sector role in Africas infrastructure has been accompanied by changes in lending and policy facilities of International Finance Institutions.

It would appear, the African paints and coatings market is putting its best foot forward and its share of the global business is set to go up. CW

32-33 Africa 0313.indd 33 2/25/13 2:28 PM

coatings word march 2013

Documents

european coatings

coatings market set

coatings worlds circulation

columnsintern coatings

coasting world

maker investsafrica

form of faade paint

pmcoatings world issn