Editorial

2015 has begun under the effect of adjustment, which goes in the right direction to correct problems, distortions and unbalances, while seeking to restore the confidence of economic players.For the most part, we consider the path on which the conduct of the eco-nomic policy has now gotten to be right, notwithstanding that we may be of different opinions in some respects.The year, as anticipated, will be a challenging one. Adjustments always cause pain, and this will be no exception. However, once we have this period behind us, we will be in a better position to advance.What we have to do now is work hard, use our creativity, innovate, and take action to make this year better than it promises to be. Towards that end, ABRAFATI 2015 will be very helpful, serving as driver of business and tech-nological evolution.Bringing together a rather substantial contingent of highly qualified profes-sionals, on the one hand, the event will provide an open space for negotia-tions, discussion of new ideas, formation of partnerships, and networking. On the other hand, by being there, people will be able to see the state of the art in the industry, become familiar with trends, and identify the paths leading to the coatings of the future —which indisputably include sustainability.The results for 2015 will depend on our attitude. Difficulties do exist, and they can be viewed either as insurmountable obstacles or as challenges to be overcome. The notion that should guide us on this journey is that irrespective of the state of affairs, there are always new opportunities to be created and to be found.

Dilson FerreiraExecutive President

Revista ABRAFATI is a quarterly publication from ABRAFATI, the Brazilian Coatings Manufacturers Association. This Pocket Edition brings a summary of the key themes published in the complete version of the magazine, available in Portuguese. Av. Dr. Cardoso de Mello, 1340 - cj. 131 - 04548-004 – São Paulo - BrazilTel: (5511) 4083-0500 - abrafati@abrafati.com.br - www.abrafati.com.brThe reproduction of the articles is allowed, as long as the source is mentioned.

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The coatings supply chain will be in a challenging environment, but with bright prospects for the future.

YEAR BEGINS WITH ADJUSTMENTS AND PREPARATION FOR UPSWING

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Like 2014, this will be an unusu-al year, but for different reasons. Last year, the poor performance of the economy was mostly due to the erratic conduct of economic policies, combined with a complex international setting and the Bra-zilian presidential elections, which led to an unstable environment and discouragement among businessmen and investors.The year 2015 will be a hard one as well, but with different characteristics. To begin with, there will be neither a World Cup nor elections. In addition, the level of uncertainty about the economy will be lower, as the federal government’s new economic team and the adjustment measures that have been announced demonstrate a vision that a new course is needed and make things more predictable.The core issue in this move was mentioned by Minister Joaquim Levy at the World Economic Forum in Davos: “In order to have investment, we need to have confi-dence. For this reason, we decided to take measures that will increase confidence in the economy.”While the initiation of the adjustment process and the restoration of credibility are viewed as essential steps, they will not bring any actual results in the short term. “The expectation is that things will be complicated for a few months, but then the

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Minister Joaquim Levy: measures to increase confidence

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economy will pick up slowly and gradually, maybe starting even in late 2015,” says ABRAFATI’s executive president Dilson Ferreira.It is a complex situation that will call for action on various fronts. “In addition to macroeconomic issues, there are several other problems facing us, such as shortage of water in many regions, the potential power rationing (and related cost increases), the crisis involving Petrobras, and doubts about the continuation or implementation of many major projects,” Mr. Ferreira explains.

OpportunitiesEven though it is teeming with threats, the cur-rent environment is not considered quite so negative by ABRAFATI. One good piece of news is the continuation of investment in the “Minha Casa, Minha Vida” (or “My Home, My Life”) pro-gram. Renovations and new construction proj-ects will also happen, yet in a smaller number. There are also investments in infrastructure, which the government promises to boost.The situation is more complicated with coatings for industrial use. The manufacturing sector has been limping for quite a while, and 2015 should not see any radical change.Prospects are favorable for automotive refin-ish coatings because when it takes consumers more time to trade in their cars for new ones, which is just what is happening today, they tend to take better care of their vehicles, which includes having minor repairs made. Since this is a time of transition, no immediate results should be expected. However, Dilson Ferreira points out that mid- and long-term prospects are still exciting. “Brazil needs to keep moving forward from a social and economic standpoint, and coatings are going to be present in this development process, which involves meeting basic demands for housing, urban mobility, energy, logistics and several other things,” he sums up.

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Dilson Ferreira: Mid- and long-term prospects are exciting

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ABRAFATI 2015

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With eight months left before the trade show, the call for papers for the 14th International Coatings Congress has started to mobilize the scientific community and researchers connected with companies involved in the coatings supply chain.Recognized as one of the world’s most important events in its field of specialty, the congress is part of ABRAFATI 2015, which will take place on October 13 through 15 in São Paulo. Because leading national and international experts will be in attendance, those present will be able get a preview of the paths of innovation in paints and coatings. As a priority theme for the entire coatings supply chain, sustainability will be present in all papers, whether as the primary focus or in the form of analyses and considerations regarding the impacts and implications of the innovations being introduced.The deadline for submitting paper abstracts for consideration is May 05. The entire process can be completed on the website at www.abrafati2015.com.br.

Focus of AttractionWhile the congress receives its first registrations, the International Exhibition of Coatings Industry Suppliers remains in the process of adding new players to a top-notch cast. Confirmed exhibitors already number two hundred, demonstrating the trade show’s power of attraction, as it is recognized as the best opportunity in the region to close deals, start new business relationships, expand customer portfolios, and learn about the paths of innovation. Accord-ingly, exhibiting company profiles range from giants with global operations to businesses that are taking their first steps in the industry.

Most of the innovations to be on display at the exhibition and the studies to be presented at the congress will focus on sustainability.

SUSTAINABILITY: THE THEME IN THE SPOTLIGHT AT ABRAFATI 2015

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Quality

With the addition of a new manufacturer and with several companies in the certifi-cation process, the Industry-Specific Quality Program (PSQ, the initials in Portuguese) for Decorative Coatings is further expanding its reach, as well as its impact on the market-place.Currently, 29 companies are part of the pro-gram, which means they are producing coat-ings which certifiably meet the requirements set forth by technical standards. “Although it

may seem a small number of manufacturers, the volume they produce represents practically 90 percent of the entire market,” says Gisele Bonfim, manager of technical and environmental affairs at ABRAFATI. The availability of those coatings to all Brazilian consumers is ensured by the cap-illarity of their production, which is divided into 42 plants located in the country’s five regions, and by a broad network of distributors and retailers.“Before the end of this half, at least two more manufacturers will be added to the list, as they are at the final stage of the PSQ certification process,” Gisele informs. “As a result, the program will gain even more in representativeness.”

According to the evaluations conducted by the program, the introduction of two new product categories, namely, satin-finish and semi-gloss latex paints, is yet another step forward scheduled to take place over the next few months.Environmentally speaking, sustainability-related require-ments are also gaining traction. After last June’s introduc-tion of an assessment of the presence of lead in coatings, the next step will be measuring emission levels of VOCs (volatile organic compounds). A draft technical standard pertaining to this theme has been completed and will be subject to a public hearing in the first half of 2015.

QUALITY PROGRAM ADVANCESAND EXPANDS ITS IMPACT Positive results achieved in 2014 and actions expected for this year contribute to ensuring an orderly market and awareness among the coatings industry’s various stakeholders

New actions are being planned and carried out in 2015 as part of the efforts undertaken by the coatings industry to ensure the proper disposal of packaging materials after con-sumption of the products they contain. Many of those actions are implemented by means of the Prolata Reciclagem program, in partnership with Abeaço (short in Portuguese for Brazil-ian Steel Packaging Association), which made great strides last year.Goals for this year include implementing 13 redemption centers for receiving steel packaging products in various parts of the country, and setting up the second Prolata Recycling Center in Paraná.In addition, the program will continue working with 50 collectors’ coopera-tives, whose members are given technical support and training. Along with improvements in the operation of these cooperatives, also targeted will be ways of increasing the income drawn by their members, which increase is al-ready happening thanks to an agreement signed with steel company Gerdau, whereby it has committed to buying all steel collected by the cooperatives at a fair price. For 2014, at some cooperatives, that represented as much as 100 percent of the amount received per ton of steel.To complement the set of actions, the Internet platform will be finalized to provide interaction with consumers, allowing them, for example, to locate steel packaging redemption centers.“We want to promote recycling by engaging cooperatives, manufacturers, retailers and consumers in the 12 World Cup host cities. This goal is in line with the precepts of the National Policy for Solid Waste,” says Juliana Zellauy Feres, sustainability manager at ABRAFATI.

Sustainability

PROPER DISPOSAL OF METAL PACKAGING MATERIALS: NEW ACTIONSABRAFATI reaffirms its commitment to seek best solutions for solid waste.

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Dilson Ferreira (ABRAFATI) and José Maria Granço (Prolata) signed a term sheet in December

Technological Development

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As Brazil’s most traditional recognition for scientific achievements in the universe of paints and coatings, the presentation of the ABRAFATI Awards attracted dozens of researchers in its 16th edition. At the end of the evaluation process, three studies were recognized, all of which having sustainability as the focal point of their themes.“We received very good papers that demonstrate

there is a lot of relevant research being done in Brazil. This is key to the sci-entific and technological development of our industry, leading to advances and innovations that have a strong connection with our strategy of prioritizing sustainability,” says Dilson Ferreira, executive president of ABRAFATI.One of the results of the award, as pointed out by the participants, is how it brings researchers and companies closer, thereby creating opportunities for innovations to go out of the laboratory and into the production line. That was one of the objectives of creating the awards back in the 1980’s, and it has been achieved through the stimulus to research that they represent.

BRAZILIAN RESEARCHERS RENOWNED FOR HIGH-END TECHNICAL STUDIES16th edition of ABRAFATI Coatings Science Awards honors papers highlighting sustainability.

The Winners1st PlaceAuthor: Mariane Dalpasquale (Universidade Estadual do Centro Oeste do Paraná)Coauthors: Filipe Quadros Mariani, Marcelo MullerAdvisors: Eryza Guimarães de Castro, Fauze Jacó AnaissiPaper Title: “Colored, Non-Toxic Polysaccharide-Based Aluminates”

2nd PlaceAuthor: Marcelo Augusto Gonçalves Bardi (National Commission on Nuclear Energy/Energy and Nuclear Research Institute)Advisor: Luci Diva Brocardo Machado (IPEN-CNEN/SP)Paper Title: “Biodegradation Study of Ultraviolet Radiation or Electron Beam-Cured Printing Inks Applied to Plastics”

3rd PlaceAuthor: Manuel Julimar Lopes (SJD Rastreabilidade e Manutenção de Instrumental Cirúrgico Ltda.)Paper Title: “Aminosilane as the Only Curing Agent in High-Chemical-Strength Epoxy Coatings With Lower Environmental Risks and Improved Occupational Health”