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The Resource for the Global Coatings Industry, Volume March 2011

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  • Project27:Layout 1 3/3/11 5:22 PM Page 1

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    nanoFLON microFLON

    Properties Test Method Unit 101T 114T 118C 119N 150N 160N 124T4 131T1 132T1 132T2 141T2 141T3

    Average particle size ASTM D4464 microns 6 - 9 4 - 8 4 - 6 4 - 8 4 - 6 5 - 8 16 - 30 4 - 6 4 - 6 10 - 13 10 - 13 14 - 22

    Primary particle size

    Scanning electron microscope (SEM) microns 0.2 0.2 0.2 0.2 0.15 0.15 N/A N/A N/A N/A N/A N/A

    90% ASTM D4464 microns 13 12 10 12 9 13 40 10 10 20 20 35

    Melting point ASTM D4591 C / F 323/614 321/610 320/608 320/608 321/610 321/610 325/617 328/622 328/622 327/621 328/622 327/621

    Specific gravity ASTM D5675 g/cc 2.15 2.15 2.15-2.2 2.1-2.2 2.2 2.2 2.15-2.2 2.1 - 2.2 2.15-2.2 2.15-2.2 2.1-2.2 2.1-2.2

    Bulk Density ASTM D4895 g/l 200 - 500 200-350 250 - 400 250-450 250-450 250-450 300-550 300 - 550 300-550 300 -500 250-400 300 - 500

    Surface area ASTM D5675 m^2/g 6.0 - 8.0 6.0 - 8.0 6.0 - 8.0 7.0 - 9.0 11.0-13.0 11.0-13.0 1.0-3.0 3 3 1.0-3.0 1.0-3.0 1.0 -3.0

    FDA Status 21CFR 177.1550 175.300 175.300 175.300 177.1550 177.1550 175.300 177.1550 175.300 175.300 177.1550 175.300

    ties

    Average

    Proper est MethodTTe

    ticle sizepar ASTM D4464

    Primary ticle sizepar

    Scanning electron microscope (SEM)

    microns

    nan

    Unit 101T 114T 118C

    6 - 9 4 - 8 4 - 6

    microns 0.2 0.2 0.2

    6

    C

    oFLON

    119N 150N 160N 124

    4 - 8 4 - 6 5 - 8 16 -

    0.2 0.15 0.15 N/

    30

    microFLON

    4T4 131T1 132T1 132T2 141

    4 - 6 4 - 6 10 - 13 10

    A N/A N/A N/A N

    - 13

    1T2 141T3

    14 - 22

    /A N/A

    ticle sizepar microscope (SEM)

    90% ASTM D4464

    Melting point ASTM D4591

    cfiSpecigravity ASTM D5675

    Bulk Density ASTM D4895

    Surface area ASTM D5675

    A StatusFD

    microns 13 12 10

    C / F 323/614 321/610 320/60

    g/cc 2.15 2.15 2.15-2

    g/l 200 - 500 200-350 250 - 4

    m^2/g 6.0 - 8.0 6.0 - 8.0 6.0 - 8

    21CFR 177.1550 175.300 175.30

    /

    12 9 13 40

    08 320/608 321/610 321/610 325/

    2.2 2.1-2.2 2.2 2.2 2.15-

    400 250-450 250-450 250-450 300-5

    8.0 7.0 - 9.0 11.0-13.0 11.0-13.0 1.0-3

    00 175.300 177.1550 177.1550 175.3

    / / /

    0 10 10 20 2

    617 328/622 328/622 327/621 328

    -2.2 2.1 - 2.2 2.15-2.2 2.15-2.2 2.1

    550 300 - 550 300-550 300 -500 250

    3.0 3 3 1.0-3.0 1.0

    300 177.1550 175.300 175.300 177.

    / /

    20 35

    /622 327/621

    1-2.2 2.1-2.2

    0-400 300 - 500

    0-3.0 1.0 -3.0

    .1550 175.300

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  • Project6:Layout 1 3/1/11 4:46 PM Page 1

  • March 2011 www.coatingsworld.com Coatings World | 5

    COATINGS WORLD Coatings World (ISSN 152-711-29) is published monthly by Rodman Publications, Inc., 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 Box1051, 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 CoatingsWorld 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 licensefrom Whitford Worldwide. COATINGS WORLDS circulation is audited by BPA International.

    COLUMNSInternational Coatings Scene ....................................30Latin America BASF Promotes Top Suvinil Marketer in BrazilEurope BASF Pioneers Coatings Technology ResearchChina Intellectual Property Protection

    ADVERTISING SECTIONSClassified Ads ............................................................103Advertising Index......................................................105

    46 Automotive Coatings: On the spot with Red Spot

    50 Toward a Clean Energy Future: A Q&A with Chad Holliday

    54 Testing Equipment58 The Surfactants Market61 ECS 2011 Exhibitor Showcase68 Focus on China:

    A Profile of Guangdong Carpoly

    80 2011 Company Capabilities: A Special Yearly Supplement to Coatings World

    DEPARTMENTSEditors Page ................................6

    As We Go To Press ......................8

    Index to Companies....................8

    Fresh Paint ................................10

    Patents ......................................22

    Financial News ..........................24

    Market Reports ........................26

    New Products ............................40

    Industry News ..........................71

    Suppliers Corner........................76

    People ........................................78

    Final Coat ................................106

    68

    March 2011 Vol. 16, No. 3 Table of Contents

    5 TOC0311.qxp:TOC 3/4/11 3:06 PM Page 5

  • When final 2010 figures were tallied, China at long last surpassedJapan to become the worlds second-largest economy. Japans econ-omy was worth $5.474 trillion at the end of 2010. Chinas economy

    was closer to $5.8 trillion. After nearly three decades of phenomenal growth,at its current rate, experts see China replacing the U.S. as the worlds top econ-omy in roughly a decade.

    The U.S. economy is approximately three times the size of the Chineseeconomy. However, while Chinese growth has been truly impressive in recentdecades, with the rapid overtaking of Japanand in recent years passing Ger-many, France and Great BritainChina remains a very poor country in percapita terms.

    The International Monetary Fund estimates that GDP per head of the pop-ulation is almost $34,000 in Japan, while in China it is roughly $7,500. HereChina is more on par with nations like Algeria, El Salvador and Albania. In theU.S. per capita income is estimated at $46,000.

    Eswar Prasad, Tolani Senior Professor of Trade Policy at Cornell Univer-sity and author of Emerging Markets: Resilience and Growth Amid GlobalTurmoil says:

    There are virtually no historical parallels for a country that is so largeand dominant in absolute terms and yet lags far behind many other countriesin terms of per capita income and other indicators of development. There isstill a yawning gap in per capita income levels between China and the ad-vanced economies and, even at present growth trajectories, it will take a gen-eration for China to achieve the level of development of advanced economies.

    However, there is little doubt that China is reshaping the global economy,which is quite remarkable for an economy with such a low per capita income.Although its economy is still only one-third the size of Americas, China passedthe U.S. last year to become the worlds largest market for passenger vehicles.

    General Motors says it sold more cars and trucks in China last year than itdid in the U.S. for the first time in its 102-year history. The company sold 2.35million vehicles in China. Thats about 136,000 more than it sold in the U.S.China also passed Germany last year to become the worlds biggest exporter.

    Scores of global companies are making a more aggressive push into China.However, this does not come without risk. Dan Watson, Coatings WorldsChina correspondent returns this month to talk about intellectual propertytheft. We all know it is a serious issue. Dan wonders if American companiesare turning a blind eye to the IP theft issue in exchange for profits. Its an in-teresting conversation piece. You can read Dans insights beginning on page 34.As always, let me know your thoughts on the issue and I will publish them ina future issue.

    6 | Coatings World www.coatingsworld.com March 2011

    China Becomes WorldsSecond-Biggest Economy

    Edito

    rs P

    age

    A Rodman Publication 70 Hilltop Road Ramsey, NJ 07446 USA

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

    EDITOR Tim Wright [email protected]

    VICE PRESIDENT/EDITORIAL DIRECTORTom Branna [email protected]

    ASSOCIATE EDITOR Kerry Pianoforte [email protected]

    ART DEPARTMENT Michael Del Purgatorio [email protected]

    INTERNATIONAL CORRESPONDENTSSean Milmo (Europe)

    Charles W. Thurston (Latin America/Americas)Dan Watson (China)

    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)

    RODMAN PUBLISHINGPRESIDENT

    Rodman J. Zilenziger, Jr. [email protected] VICE PRESIDENT

    Matthew J. Montgomery [email protected]

    GROUP PUBLISHER / ADVERTISING SALESDale Pritchett [email protected]

    ADVERTISING SALES (U.S.)Kim Clement [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] SALES (Hong Kong, Taiwan & China)

    Ringier Trade Publishing Ltd401-405 4/F New Victory House

    93-103 Wing Lok Street, Sheung Wan, Hong Kong (852) 2369 8788 Fax: (852) 2869 5919

    [email protected] ADVERTISING SALES

    Patty Ivanov 631-642-2048; Fax [email protected]

    PRODUCTION MANAGER Patricia Hilla [email protected]

    CIRCULATION DIRECTORJoe DiMaulo [email protected]

    ONLINE DIRECTORPaul Simansky [email protected]

    WEB MASTERJason Lawton [email protected]

    COATINGS WORLDS circulation is audited by BPA [email protected]

    6 Editorial0311:Editors Page 3/4/11 3:07 PM Page 6

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  • BASF and X-rite have launched aninnovative solution for the color coatingof tablets. The collaboration provides asmart color management offering forpharmaceutical formulators to measureand calibrate colors efficiently, andproduce high quality film-coated tablets.The solution combines BASF Kollicoat IRCoating Systems with X-Rites XTHColorEye Handheld Spectrophotometer.BASFs Kollicoat IR Coating Systems arean innovative modular system of sevenbase colors. The base colors are designedto be combined easily to produce instantlyrecognizable tablets in hundreds ofdifferent shades. Customers can benefitfrom its high quality, flexibility andefficiency to remain agile and responsivein the fast-moving markets.

    PPG PMC announces globalprice increases PPG Industries protective and marinecoatings (PMC) business is raising pricesglobally, as permissible by contract. Aseconomies recover from the global reces-sion, prices for basic commodities such ascopper are increasing at alarming rates,said Thomas Mauck, PPG vice president,protective and marine coatings. Also,prices for epoxy and other processed rawmaterials that PMC uses are rising to ac-count for the high costs of basic com-modities. Based on current informationand conditions, we forecast these infla-tionary trends will continue during 2011.

    Henkel to raise prices forindustrial adhesives Against the background of rising raw mate-rial costs, and with immediate effect, Henkelis implementing a price increase for certainproduct groups of its industrial adhesives. In-crease amounts will vary based on marketsegment and technology. On average, theprice increases will range from 10 to 25 per-cent. The price increase is attributable to on-going escalation of raw material costs overthe last 15 months, especially affecting oil

    and natural gas based products, the companysaid. Continuous spikes in global demand,coupled with capacity constraints in primarychemical, rosin and resin feed stocks, havefurther tightened supply, have driven raw

    material prices upward. For this reason,Henkel said further price increases will be-come necessary in the following categories:hotmelts, polyurethane, water-based adhe-sives and surface treatment products. CW

    8 | Coatings World www.coatingsworld.com March 2011

    New Solutions for Color Coating TabletsAs W

    e G

    o To

    Pre

    ss

    Index to Companies

    This index gives the starting page for a department or feature with a signifi-

    cant reference to a manufacturer of paint, coatings, adhesives and sealants.

    Subsidiaries are indexed under their own names.

    AkzoNobel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 24, 40

    BASF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 10

    Bayer MaterialScience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Biocoat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Diamond Vogel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Euclid Chemical Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    GMM Development Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Guangdong Carpoly Chemical Co., Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

    Helios Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Henkel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    Honeywell Electronic Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    International Paint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Jotun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Keco Coatings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Leighs Paints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Medi-Solve Coatings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 10, 40

    Red Spot Paint & Varnish Co. Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

    Resene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    RPM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

    Rust-Oleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Seal-Krete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Sherwin-Williams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 24, 106

    Solrac Coatings (Jiaxing) Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Tikkurila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Valspar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10, 24, 40

    8 AsWeGo0311.qxp:As We Go To Press 3/4/11 9:25 AM Page 8

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  • BASF Future Business GmbH and Medi-Solve Coatings LLC have formed a col-laboration in the field of antimicrobialcoatings for catheters and other minimallyinvasive medical devices. This collabora-tion combines Medi-Solves proprietaryAquaCoat coating technology with BASFFuture Business proprietary HyGentic sil-ver-based antimicrobial additive platform.According to BASF, in the area of medicaldevices materials, it is expanding its port-folio by forming partnerships with inno-vative companies such as Medi-SolveCoatings LLC. New functional materialsfor medical applications not only improvethe standard of medical care for an agingpopulation, but also address importanteconomic needs, such as the cost pressurein the healthcare system. Medi-SolveCoatings will be using its proprietary andpatented coating technology to applyBASFs HyGentic antimicrobial additivesto dialysis catheters, PICC lines and othercatheters known to have high infectionrates in clinical applications. This collab-oration is designed to benefit cliniciansand patients around the world by reduc-ing possible sources of infection and im-proving the standard of care.

    RPM acquires synthetic fibermanufacturer Through its subsidiary The Euclid Chem-ical Company, RPM International Inc. hasacquired PSI Packaging, Inc. (PSI), a pro-ducer of micro- and macro-fibers for theready-mixed and pre-cast concrete mar-ket. With headquarters and manufactur-ing located in LaFayette, GA/USA, PSI hasannual sales of approximately $6 million.PSI, which was founded in 1999 by itsfour current owners and executive offi-cers, will become part of Euclid Chemical,a unit of RPMs building solutions groupthat serves construction markets world-wide. PSI will provide both a complemen-tary product line to existing EuclidChemical fiber products, as well as manu-facturing capacity and expertise.

    PPG launches online solarreflectance index tool for coolroofs PPG Industries coil and extrusion coat-ings group has launched an online toolthat helps architects and building ownersselect the best cool roof coating color,based on reflectance, for new and retrofitbuilding projects. Users can compare hun-dreds of cool roof coating colors, manyregistered with Energy Star or the CoolRoof Rating Council (CRRC), by visitingcoolcolorsdatabase.ppg.com and enteringavailable or desired data for one of moreof the following criteria: product code;product name; color description; l*a*b*color space value; solar reflectance(TSR/SRV); thermal emittance (TE); solarreflectance index (SRI); and Energy Starand/or CRRC listing. Based on the crite-ria provided, the selector tool generates areport with data tables and color swatchesfor all matching cool roof coating colors.Users also can review the full menu of En-ergy Star- and CRRC-listed cool roof col-ors from PPG by clicking the searchbutton. Scott Moffatt, PPG director ofmarketing for coil and extrusion coatings,said the color selector is designed tostreamline the specification process. Weunderstand how difficult it is for architectsand specifiers to sort through manufac-turers catalogs and industry listings tofind the right colors and products for theirprojects, he said. This tool enables themto expand the search process and acceler-ate it at the same time.

    AkzoNobel opens newindustrial coatings plant forcoil and plastic coatingsAkzoNobels plan to accelerate growthand increase revenue in India to 1 billionwithin the next five years has been under-lined by the official opening of a new in-dustrial coatings plant near Bangalore. Thefacility, which will produce coil and spe-cialty plastic coatings, is located inHoskote on an existing AkzoNobel site

    that already manufactures marine andprotective coatings, automotive coatingsand powder coatings. The technologiesmost in demand include laser-etch coatingsfor the automotive industry, soft-touchtechnology for smart phones and coil coat-ings for high performance steel and alu-minum construction markets. The newBangalore facility will be capable of man-ufacturing up to 18 million liters per year,with scope for further expansion. The ad-ditional capacity will also boost the com-panys ability to meet the growing demandin India and neighboring countries. Ak-zoNobel currently employs approximately1,500 people in India and operates six pro-duction facilities, two research laborato-ries and roughly a dozen sales locations,representing activities from across all coat-ings and specialty chemicals businesses.

    Helios strengthens operationsin Slovenia Helios Group has opened a car refinishingcoatings center and a production plant forwater-based coatings in Domzale, Slove-nia. The coatings manufacturer alsoopened a center for metal coatings inMedvode, Slovenia. Helios invested 14million in the three projects. Additionalresources will be invested in the produc-tion plant for water-based coatings andthe car refinishing coatings center until2012. Currently the production capacityof decorative and car refinishing water-based coatings is 500 tons per month.

    GMM opens facility in India GMM Development Limited has opened anew manufacturing facility located inAhmedabad, India. The new GMM Indiafacility includes a technical developmentcenter, full-scale coatings production area,and offices for administration, sales andfinance. This operation will produce non-stick coatings and industrial coatings forthe local Indian market, as well as for theexport market globally. Beyond the mainfacility, GMM has also purchased an ad-

    10 | Coatings World www.coatingsworld.com March 2011

    BASF and Medi-Solve Coatings collaborate Fresh

    Pai

    nt

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  • ditional seven acres of adjacentland for future expansion. Thecompany expects to employmore than 100 people in India

    within a few years.

    Keco Coatings opens industrial facility Keco Coatings has acquired a second fa-

    cility for the companys highperfor-mance coating operation in Indianapo-lis, IN. Keco plans to invest $1 millionin the facility and hire 50 employees by2013. The new jobs will include engi-neering, management, customer serviceand manufacturing positions. The40,000 square foot facility on the cityswest side is adjacent to the downtown

    Certified Technology Park. Keco cur-rently employs 25 people at its down-town Indianapolis facility and 20 peopleat its Statesville, NC location. The ex-pansion allows the company to capital-ize on the opportunities available in thedomestic and international markets itserves, as well as enhance its highvol-ume coating capabilities. Keco will offer

    12 | Coatings World www.coatingsworld.com March 2011

    Fres

    h Pa

    int

    Chinas TiO2 prices continue to increase in 2011

    The Chinese chemical consulting company CCM International Limited

    predicts Chinas TiO2 prices will continue to increase throughout 2011.

    Though the domestic market slowed down at the start of winter,

    Chinas TiO2 prices maintained stability as of January 2011, supported

    by rising raw materials prices and strong export volume, the firm said.

    As it is well known, there is a global titanium feedstock supply

    shortage. As a result, prices of titanium feedstock soared in 2010.

    Compared with January 2010, the average CIF price and average do-

    mestic ex-factory price for the whole year of 2010 increased by 49.9

    and 44 percent, respectively (FIGURE 1).

    In the short term, the reinvesting titanium feedstock projects can-

    not be launched, which will not help to alleviate the short supply of ti-

    tanium feedstock. Meanwhile, contributing more than 40 percent of

    Chinas titanium feedstock import volume, Vietnam is to strengthen

    its management of mineral exploitation and licensing mineral ex-

    ploitation through auctioning exploitation rights. In addition, the Viet-

    nam government will collect a fee from individuals and organizations

    that are licensed to explore minerals. Owing to the short supply, Chinas

    TiO2 producers or mining traders have to bid in the spot abroad.

    Hence, prices of titanium feedstocks are predicted to continue to

    increase in 2011, which will sustain TiO2 prices.

    In 2011, Chinas TiO2 export volume is expected to continue grow-

    ing strong which will also boost the prices of Chinese TiO2. Thanks to

    the short supply of TiO2 outside of China and the frequent price hikes,

    more and more European and American consumers source TiO2 from

    China, which has led China to be a TiO2 net exporter since May 2010.

    As of October 2010, China exported a total of 255,323 tons of TiO2.

    This represents a 109.9 percent year-on-year increase.

    In 2011, besides a 40,000-ton capacity expansion of Tiwest Joint

    Venture (a joint venture of Tronox and Exxaro in Australia), there is not

    any new incremental TiO2 production capacity outside of China. Ac-

    cordingly, the short supply situation of TiO2 in the European and Amer-

    ican markets will not alleviate much in 2011.

    Owing to the continuous tight supply in the Western markets, the

    global Big 5 TiO2 producersDuPont, Cristal, Huntsman, Tronox and

    Kronosall announced price hikes for their worldwide TiO2 products in

    January 2011, by USD200/t to USD300/t. This round of price hikes will

    push more consumers to adopt Chinese TiO2 for substitution, to cut cost.

    In general, there is a USD250-350 gap between Chinas average ru-

    tile ex-factory price and average CIF price; and a USD300-450 gap be-

    tween the actual transaction FOB price and average CIF price (FIGURE

    2). Hence, the CIF prices of Chinas import TiO2 are expected to range

    in USD2500/t to USD2700/t in 2011. Chinas import TiO2 average CIF

    price reached USD2530/t in October 2010 while there was not price in-

    crease announcement during November and December last year.

    Though Chinas TiO2 prices will be driven by the increasing inter-

    national prices and the firm export volume, the downturn demand in

    the domestic market and the newly launched production capacity will

    offset the extent of price increases. Owing to the downturn demand,

    some producers reduced their anatase TiO2 price in December 2010.

    Accordingly, Chinas rutile prices are optimistically expected to keep at

    the current level for the remainder of 2011.

    However, domestic demand for TiO2 will certainly rebound after

    the Chinese New Year and keep growing driven by the start of pro-

    moting building materials in the countryside and expanding urbaniza-

    tion. In a word, Chinas TiO2 prices will keep the uptrend through

    2011, following global TiO2 prices.

    CCM is dedicated to market research in China, Asia-Pacific Rim and

    global market. Visit www.cnchemicals.com for more information or

    contact [email protected].

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  • its signature Kephos process atthe new facility, which was de-veloped for performance racingapplications as a replacement

    for black oxide and anodizing. Kephosattributes include superior abrasion re-sistance and corrosion resistance, achiev-ing up to 192 hours salt spray resistanceper ASTM B-117 when applied at a one-half micron coating thickness, the com-pany said. Founded in 1979 andheadquartered in Indianapolis, IN, KecoCoatings specializes in custom servicessuch as research and development pro-totype and distinct production cate-gories. It is one of 22 DuPont Telflonlicensed industrial applicators (LIAs) inthe U.S. Industries Keco serves includeaerospace, lighting, packaging, food,glass, automation, transportation, filtra-tion, pharmaceutical and performanceracing. The range of technologies KECOoffers include a full line of signatureproducts, with applications ofnonstick liquids and powders, con-ductive non-stick, dry film lube, ceramic,corrosion resistant, plasma, thermal bar-rier and Kephos.

    MicroBlend enters Latin America MicroBlend Inc. has entered the LatinAmerican market with the installation ofits paint dispensing systems in Sodimacstores in Colombia. Sodimac is the lead-ing home improvement retailer in LatinAmerica. They currently have 100 largeformat locations in Colombia, Chile, Ar-gentina and Peru and expansion contin-ues throughout Latin America. TheMicroBlend partnership strengthens Sodi-macs leadership in the architectural paintmarket. Sodimac pioneered the use ofcaptive brands in paint retailing in LatinAmerican with the introduction of GlamKolor brand paints initially in theirChilean locations. MicroBlend has in-stalled the latest version of its patentedPaint Factory system, introducing thepaint industry and the Sodimac stores toseveral new innovations to its technolo-gies. The latest version of the Paint Fac-tory system provides higher dispensecapacity. Orders from one quart to 1500gallons can be made quickly without spe-

    cial advance ordering or planning. Sodi-mac has expanded the Glam Kolor brandchoices in quality levels to three, doubledthe number of sheens available and nowoffer over 50,000 new colors.

    Tikkurila completes thedivestment of its powdercoatings business Tikkurila has completed the selling of itspowder coatings business. All shares inTikkurila Powder Coatings, a Russianindustrial coatings company, were trans-ferred to Teknos Group Oy on January26, 2011. The sales and purchase agree-ment was signed in December 2010, andan approval for the transaction has beenreceived from the competition authori-ties. Tikkurila divested its industrialpowder coatings business, because it isnot a part of Tikkurilas core business.After the transaction, Tikkurila has nopowder coatings related operations. Therevenue of the sold company was 2.4million in 2010, and it employs approx-imately 50 people. The transaction doesnot have a significant impact on the fi-nancial result or balance sheet of theTikkurila Group, according to the com-pany. Tikkurila is the leading decorativepaints company in Russia, where it op-erates four paint factories after the trans-action. The products are sold under thebrands of Tikkurila, Teks, Finncolor andGamma in over 5,000 retail outlets.Tikkurila has approximately 1,500 em-ployees in Russia.

    AkzoNobels powder pricessurge in Europe AkzoNobel Powder Coatings EuropeWest will increase prices between 8.5 and19 percent. This rise is in response tocontinued shortages in raw material sup-plies and the associated increase in rawmaterial costs. Gordon MacLeman, man-aging director of Powder Coatings Eu-rope West said since the beginning of lastyear industry began witnessing strong in-creases in the price of a broad range ofraw materials used in the production ofpowder coatings.

    During the last couple of monthsthis situation has dramatically deterio-rated in a manner which could not be

    foreseen, he said. Depending upon thetechnology base of the product, the rawmaterials prices have increased by be-tween 20 and 70 percent. This is not ex-pected to improve as demand in rapidlydeveloping economies increases. This isan unprecedented situation in Europe,and many powder coatings companiesare experiencing difficulty in maintain-ing full supply. AkzoNobel PowderCoatings enjoys a strong global positionwhich has so far enabled the consistentsupply of product but even we are nowbeginning to face real problems with theavailability of raw materials.

    AkzoNobel Powder Coatings hasworked hard over the last two years to ag-gressively attack its own cost base, ac-cording to MacLeman, which has resultedin radical restructuring. Over the last 18months the firm has downsized a numberof factories and has closed two produc-tion units, as well as taking significant joblosses in the non-manufacturing part ofthe business.

    While we will continue to save costin all business areas we have no choicebut to recover some of the many raw ma-terial increases, he said. Unfortunatelywe believe we will see continued short-ages and raw material price increases fora number of years to come. We must actnow to protect our customers suppliesand to ensure the survival of our com-pany and the industry.

    BASF relocates polyurethanesystems business unit BASF is moving the manufacturing of itsoffshore subsea insulation PUR systems toHouston, Texas. The move brings BASFcloser to its Gulf Coast subsea insulationcustomers, reduces delivery times and im-proves upon technical service and cus-tomer responsiveness. Making a capitalinvestment in the Gulf Coast customerbase is a critical step toward implement-ing our strategy of sustainable customersuccess, said Jim Lausch, manufacturingdirector for BASF Polyurethane Solutions.BASF Polyurethane Systems are used in avariety of mercury-free solutions suppliedto the offshore industry, including subseathermal insulation, structural elastomers,pipe pigs and rigid foam.

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  • BASF Coatings hosts 28 vocational schoolteachers at itsinternational conference

    Whether for repairing damage to the fin-ish, refinishing scratches or fulfilling cus-tomers needs for tuning jobs, professionalbodyshops are in demand around theglobe. Unfortunately, however, uniformquality standards are not yet in placeeverywhere. To close this gap, BASF Coat-ings is committed to high-quality training,particularly with its STAMPP training pro-gram. The company recently hosted an in-ternational conference for vocationalschool teachers for the first time at itsMnster production site. Twenty-eightschool principals and teachers travelled tothe site from Sweden, Denmark, Norway,France, Austria, Germany and Russia. Itsoften hard for teachers to remain in touchwith industry. At our conference, theteachers were able to communicate inten-sively with experts, said Kevin McDer-mott, head of the Coatings RefinishAcademy. The program, for example, in-cluded a lecture on the latest innovationsin the branch. In addition, the participantslearned about state-of-the-art multiworkplaces and went on a guided tour of BASFCoatings Color Design Studio Europe.STAMPP, which stands for STimulate andrevAMp the Paint Profession, is a pro-gram designed to publicize the spraypaint-ing profession and to encourage youngpeople to choose this high-tech careerpath. BASF has a close cooperation withvocational schools and bodyshops. Thecompany provides up-to-date and com-prehensive learning materials for the one-year training program. STAMPP allowsthe trainees to specialize in the trade of au-tomotive refinishing after they completetheir basic technical training. The syllabusis based on European standards and it isadapted to the individual countries.

    International Paint drives up prices International Paint Ltd. is set to initiateproduct price rises in response to spiral-ing global raw material costs. During2010 the cost of raw materials critical tothe manufacture of both our marine andprotective coatings product ranges in-

    creased significantly, said Paul Westcott,marine and protective coatings commer-cial director. We have attempted to min-imize the impact on our customers for aslong as possible by leveraging our buyingpower and driving internal cost savingmeasures. Unfortunately the increase incosts shows no sign of abatement andtherefore regrettably we now have littlechoice but to initiate a program of prod-uct price rises.

    A familiar inflationary cycle is beingrepeated across a broad spectrum of rawmaterial markets due to both supply anddemand dynamics. On the supply side, anumber of factors are at play includingshortages in raw material feedstocks, gen-eral destocking in the supply chain, re-duced raw material manufacturingcapacity and supply outages. Demand isbeing driven by emerging marketeconomies in most cases from industriesoutside of the coatings market and as everthe price of oil remains a key driver. In ad-dition to the tight supply and demand dy-namics prices are being fueled by investoractivity in the commodity spot markets.

    A number of raw materials key to themanufacture of both marine and protec-tive coatings products have been affectedby the inflationary drivers including,epoxy resins, titanium dioxide, solvents,copper and other metals.

    Valspar buys Brazilian coatings maker Valspar Corp. has bought a Brazilianmanufacturer of powder coatings used inappliances, building products, transporta-

    tion and other general industrial markets,the company announced Tuesday. IsocoatTintas e Vernizes Ltda. serves customersin Brazil, Argentina and Colombia. Thecompany, which is located inAraariguama, state of So Paulo, had2010 sales of approximately $34 million,Valspar. Isocoat further strengthensValspars presence in the fast-growingcoatings markets in Latin America, saidGary Hendrickson, Valspar president andchief operating officer.

    NAD recommends Sherwin-Williams modify no-VOC claims for Harmony PaintsThe National Advertising Division (NAD)of the Council of Better Business Bureaushas recommended that The Sherwin-Williams Company, maker of the Har-mony line of paints, modify or discontinueadvertising claims that the Harmony paintline is completely free of VOCs.

    NAD, the advertising industrys self-regulatory forum, reviewed express andimplied claims made by Sherwin-Williams in website and print advertis-ing following a challenge by BenjaminMoore & Co.

    Benjamin Moore challenged the ex-press claims:

    No-VOC formula.Zero-VOC formula.Formulated without silica and withoutVOCs for better indoor air quality.

    NAD also reviewed the implied claimthat the full line of Sherwin-Williams Har-mony paints, including base paint andpaint containing color, contain no VOCs.

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    BASF is committed to training young spray painters all over the world.

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    For purposes of this challenge only, bothparties agreed that a zero VOC or noVOC claim is substantiated if the VOCcontent of the paint contains less than fivegrams per liter VOC.

    In this case, NAD considered the Sher-win-Williams representation that, basedon its Material Safety Data Sheets andTechnical Data Sheets, certain colors in itsHarmony line would exceed the fivegrams per liter VOC threshold when itsdeep base paint was mixed with con-ventional colorants, but the majority ofthe paints in its Harmony line would yieldless than five grams per liter.

    NAD also reviewed evidence that in-cluded the results of testing commissionedby Benjamin Moore on selected colors ofHarmony brand paint. The results of thattesting indicated that, after the addition ofconventional colorants to Sherwin-Williams deep base paint, VOC levelsranged from 42 to 112 grams per liter forCoating VOCs (used by air quality dis-tricts to determine whether or not a paint

    is in compliance with the limits set by thedistricts rules.)

    Sherwin-Williams questioned the test-ing and maintained that because the ma-jority of its paints in the Harmony line fallbelow the five grams per liter threshold,its zero-VOC claims are substantiated asto its entire line of Harmony paints.

    Following its review of the evidence inthe record, NAD determined that the Sher-win-Williams claim of zero-VOC was aline claim for the full line of Harmonypaints after the addition of colorants.

    The evidence in the record, NAD noted,demonstrates that not all of the paint col-ors in the Harmony line perform as prom-ised when Sherwin-Williams Deep Base ismixed with conventional colorants.

    NAD recommended that the claim bediscontinued or modified to clearly con-vey to consumers that there are exceptionsto the line claim by clearly and conspicu-ously disclosing that the addition of con-ventional colorants to Harmony DeepBase paint may result in higher levels of

    VOCs for some colors.Sherwin-Williams, in its ad-

    vertisers statement, said thecompany is disappointed thatthe NAD did not agree with its positionthat both consumers and the industry un-derstand zero-VOC claims to pertainonly to the majority of colors in a paintline, as opposed to being a 100 percentline claim. However, out of respect forthe self-regulatory process, Sherwin-Williams will accept the NADs decisionand will take the NADs findings intoconsideration in its future advertising forHarmony.

    Valspar publishes industrialmaintenance products catalogValspars new Industrial MaintenanceProduct catalog offers a complete line ofpremium Valspar industrial paints includ-ing enamels, fluorescents and specialtypaints such as traffic, zone marking, tractorand implement paints. Also featured areValspars professional grade primers and

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  • paints as well as the Cabot line ofsiding and deck stains. A highlightof the catalog is the new profes-sional latex program, which offers

    premium quality paints that are specificallyformulated to meet the needs of the pro-fessional painter. In addition to hiding andsuperb touch-up capabilities, Valspars pro-fessional latex paints have low splatter, arewashable and are low odor/low VOC for-mulated, the company said. Valspars In-dustrial Maintenance Products catalogfeatures detailed information, color chartsand photos of premium quality products,including: industrial high-solids spraypaint; fluorescent, high heat, zinc primerand hammered spray paints; industrialenamel and armor anti-rust; specialtypaints such as tractor and implement,marking and traffic, zone marking, latexfield marking, barn and fence, siding androof, porch and floor and heavy-duty alu-minum; professional latex paints andprimers; all-purpose enamel spray paintsand appliance epoxy; sealers; and Cabotdeck and siding stains.

    BMW recommends BASFCoatings automotive refinish products for dealers and bodyshopsBASF Coatings automotive refinish prod-ucts were approved by BMW for 30 coun-tries across the globe. This means thatBMW recommends the paint manufac-turer for its bodyshops and dealers. Thetwo companies are linked by a long-estab-lished cooperation in the refinishing sector.BMW has already used BASF Coatingsautomotive refinish products since 1984.In addition to the paints, BMW bodyshopsalso utilize BASF Coatings services in-cluding training, bodyshop audits or com-puter-assisted color management. The newagreement is valid until the end of 2012.

    New Zealand firms collaborateto develop waterborne paintsfrom sustainable raw materialsIndustrial Research Ltd. (IRL), the onlyCrown Research Institute mandated tosupport New Zealand industry, and paintmanufacturer Resene have joined togetheron a project to develop waterborne paintsbased on resins made from sustainable

    raw materials. Dr. Simon Hinkley is thelead chemist on the collaboration. A yearago, the proposal won Resene $1 millionin R&D services in IRLs Whats YourProblem New Zealand? competition.

    IRL scientists and Resene technicalstaff have created a novel-binding ingre-dient using a polymer derived from areadily available and highly renewablefeedstock produced in New Zealand.They will soon be applying for a patent.

    We have generated a novel, derivatizedpolymer mixture that not only confersproperties crucial for a paint binder, but

    also allows laterreactivity in the paint pro-moting hardening, film forming and otherdesirable characteristics, said Hinkley.

    We are creating a new ingredient thatmust utilize simple and readily scaledprocesses, so it cant involve complex orcostly chemistry, Hinkley said. Existingtechnologies have been around for a longtime and are refined to a high level. Ourshas to compete with that.

    Hinkley said there are still significanthurdles to overcome before productionand commercialization are underway.These include two critical technical chal-

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    Solrac Coatings (Jiaxing) Co., Ltd., becomes IKEAs official supplier

    IKEA, the Swedish international home

    products company and the worlds largest

    furniture retailer, recently added Solrac Coat-

    ings (Jiaxing) Co., Ltd. to its stable of liquid

    coatings suppliers, of which there are only

    ten worldwide. Based in the Zhejiang area in China, Solrac Coatings (Jiaxing) is the Chinese

    arm of Productos Solrac, S.A., which is headquartered in Barcelona, Spain. The company

    manufactures high technology waterborne coatings.

    Solrac supplies its waterborne processes to furniture manufacturers in China. This latest

    deal helps to establish Solrac Coatings (Jiaxing) Co., Ltd. as being technologically on par with

    the major international coatings companies that dominate the industrial coatings sector.

    Wood coatings manufacturer Solrac was founded in 1942 and has been active in markets

    in France, Portugal and Romania before entering Asia.

    China has a strong wood coatings market, particularly for parquets and furniture. In 2008,

    it represented 6.4 millions of tons of coatings, according to IRLs, A Profile of the Chinese

    Paint Industry. After a conscientious analysis, Solrac group decided in 2007 to invest a part

    of its human and financial capital to build a factory in China.

    The 5,000 square meter factory is fully equipped with the most up to date technology,

    which enables coatings production capacity of 2,500 tones a year.

    Being part of IKEAs suppliers is a huge quality step for Solrac, said Javier Gallach Ca-

    ballero, manager, Solrac Coatings (Jiaxing) CO., LTD. This client requires effort and dedica-

    tion, and the five-year plan suggested by the

    Chinese government to protect the environment,

    will help the change from solvent products to en-

    vironmentally friendly products.

    Solracs policy is entirely focused on water-

    borne products because of their high quality and

    their environmentally-friendly production, Ca-

    ballero said. Step by step our clients focus on high

    quality finished products instead of cheap prod-

    ucts. Until a year ago, in China, the market share

    for waterborne products was centralized on IKEA

    and a few manufacturers working also in European and North American markets. The mar-

    ket is progressively more oriented to waterborne and low VOC products. In order to meet this

    demand, Solrac is positioned in China.

    IKEA store in Chengdu, China.

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  • March 2011 www.coatingsworld.com Coatings World | 19

    lenges to ensure the material meets thespecifications for a paint binder ingredient.

    We also have to make sure our ingredi-ent is compatible with all the other thingsthat go into your average pot of paint, ofwhich there are potentially thousands of in-dividual materials in the finished product,Hinkley said. The binder must also be sta-ble in the pot and on the wall, cost effectiveto produce and economic to export.

    In 2011, Resene plans to launch a neweco range of paints that use the new in-gredient, with the first products expectedto be for walls and ceilings.

    While the original IRL/Resene collabo-ration was an 18-month-long project, thepartnership will continue with the Founda-tion for Research, Science and Technologyproviding funding for a $2.6 million dollarproject that will run over the next fouryears. That project, co-funded by Resene,will allow the team to develop its technol-ogy to produce high-performance paints.

    AkzoNobel becomes a fulltechnology partner of McLaren GroupAkzoNobel has become a full technologypartner to the McLaren Group after ex-panding and extending the current relation-ship with Vodafone McLaren Mercedes. Theannouncement of the deal coincided with thelaunch in Berlin of the new MP4-26 For-mula 1 car, which now features the Ak-zoNobel logo on the rear wing endplate.mThe two companies have been work-ing together since 2008, when AkzoNobel,through its Sikkens brand, became the offi-cial supplier of paint solutions to the Voda-fone McLaren Mercedes Formula 1 team.Under the new four-year agreement, Ak-zoNobel will work closely with McLarenRacing to further develop its extreme envi-ronment technology for use in Formula 1and wider industrial applications. The newMP4-26 features a sophisticated high glossSikkens system and will be driven by formerchampions Jenson Button and Lewis Hamil-ton. The first Grand Prix of the 2011 seasontakes place in Bahrain on March 13.

    MingYang Wind Power Groupnames PPG Best Supplier China Ming Yang Wind Power GroupCo., Ltd. (Mingyang Wind Power Group),

    named PPG Industries Best Supplierduring its Annual Supplier Conference,recognizing the high quality of PPGs coat-ings products, customer service and tech-nical support. Mingyang Wind PowerGroup is the largest non-state-owned or -controlled wind turbine manufacturer inChina, and the only one with sharestraded on the New York Stock Exchange.

    It specializes in designing, manu-facturing, selling and servicingmegawatt-class wind turbines. Asa global provider of integratedsolutions to the wind energy industry, PPGoffers proven technical and sales supportto customers such as Mingyang WindPower Group, with whom PPG hasworked since 2007. CW

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  • Patent No. U.S. 7,776,960 B2PPG Industries has obtained a patent for anepoxy functional polymer comprised of thereaction product of a terpene and an epoxyfunctional monomer wherein the terpene iscomprised of 10% to 60% weight of thetotal solids weight of the polymer.

    Reactive Surfaces extends itsnovel biocide technologypatent portfolio in the U.S.and abroadReactive Surfaces has expanded its exist-ing active ingredient patent portfolio onProteCoat bio-based anti-microbial addi-tive technology with grants in the U.S. andAustralia of several patents covering coat-ing compositions containing these non-toxic biocides. The issued claims vary inscope depending upon the jurisdiction,but generally relate to coating composi-tions comprising one or more antimicro-bial peptides in a coating such as a paint,and include multi-layer resin systems aswell as temporary coatings. The claimedcoating compositions include architecturalcoatings (wood and masonry coatings),industrial coatings (automotive, can,sealant and marine coatings), as well asspecification coatings (pipeline, trafficmarker, aircraft and nuclear power plantcoatings). More specifically, the claimedcompositions comprise antimicrobial pep-tides (with both antifungal and antibac-terial functionalities, as well as thecapability to kill spore forms of both) in asufficient amount to inhibit or prevent thegrowth of a microbe on a coated surface.The claimed biocides are naturally occur-ring, non-toxic and readily biodegrade-able amino acid polymers generallycomprising six to 25 amino acids capableof being admixed into a binder, includingthermoplastic and thermosetting binders.

    Paint for detection ofradiological or chemical agentsPatent No. U.S. 7,780,912 B2Lawrence Livermore National Security

    has received a patent for paint on a sur-face that warns of radiological or chemi-cal substances comprised of a paintoperatively connected to the surface, anindicator material carried by the paint

    that provides an indication of the radio-logical or chemical substances, whereinthe indicator material includes scintilla-tion material, and a thermo-activationmaterial carried by the paint.

    22 | Coatings World www.coatingsworld.com March 2011

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    Hydrophobic coatings patent awarded

    Patent No. U.S. 7,670,684Corrosion-resistant, more environmentally acceptable coatings have been real-ized by Sergiu Gorun, PhD, associate professor of chemistry at New Jersey In-stitute of Technology (NJIT). The "Functional Coating Compositions ofPerfluoroalkyl Perfluoro-Phthalocyanine Compounds" discloses a new self-con-tained subclass of molecules. These new materials are comprised of organicscaffolds with metal centers, which can be applied as either an opaque or trans-parent hydrophobic coating. "A combination of properties has been achievedbased on the presence of a metal in the molecular structure without compro-mising the desired robust, hydrophobic features," Gorun said. "Consequently,these coatings are more versatile than previous materials since most metals canbe incorporated." The new composition avoids exposing humans to the can-cerous effects of heated petroleum-based products, which may make the newcompositions more environmentally acceptable than current well-known coat-ings. Since all carbon-hydrogen bonds have been eliminated and replaced byperfluorinated carbon chains or fluorine, the new molecules exhibit a high ther-mal stability as compared to petroleum-derived materials. The coatings work bymaintaining a low-energy surface that resembles a lotus leaf in its property torepel water, despite the presence of metal centers. Since water does not wet thesurface, any exposed area covered by the coating will not be subject to waterbinding, thus preventing the onset of corrosion. This new chemical configura-tion also mitigates the destructive effect of oxygen, the culprit that ages organicmaterials. The absence of any carbon-hydrogen bonds in NJIT's new coating re-moves the pathway for oxygen to destroy the new molecules. Interestingly, theuse of certain metals in the center of the composition enables the coatings touse the sun's radiation for the photo-physical activation of oxygen from air. Ac-tivated or singlet oxygen is good for maintaining a clean surface. It won't de-stroy the robust coating, thus contributing to its overall protective effects. Thepotential applications for these new materials are broad. U.S. Army researchersare interested in these coatings for military and commercial applications: pre-venting the corrosion of vehicles and related hardware as well as applying thecoatings to surfaces as a self-cleaning repellent for chemical and biological con-taminants. On-going collaborative research is focused on using the materials asbiocidal coatings for medical instruments or hospital walls or as an optical coat-ing that allows surfaces to change color under the influence of electrical currents. One industrial application includes the photocatalytic oxygenation of molecules.

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  • March 2011 www.coatingsworld.com Coatings World | 23

    Nippon Paint receives patentfor pigment dispersionPatent No. U.S. 7,780,778 B2Nippon Paint Co., Ltd. has received apatent for a pigment dispersion consist-ing of a first pigment made of a coloringpigment having a primary average parti-cle diameter of 200 nm or smaller, ormade of carbon black having an averageparticle diameter of a structure of 100nm or smaller, and a second pigmentmade of barium sulfate having a primaryaverage particle diameter of 55 nm orsmaller, a pigment dispersant and amedium. The first pigment and the sec-ond pigment are combined so that avalue of (acid amount-base amount) ofone pigment becomes positive, and avalue of (acid amount-base amount) ofthe other pigment becomes negative, thecombined first and second pigmentsbeing dispersed in the medium in thepresence of the pigment dispersant, andthe pigment dispersant being a nonionicor anionic pigment dispersant.

    Imerys Pigments patentsmethod for separating mixtureof finely divided mineralsPatent No. U.S. 7,780,779 B2Imerys Pigments, Inc. has been granted apatent for a composition comprised ofkaolin having a particle size distributionsuch that at least 90% of the kaolin has aparticle size of less than approximately 1m and a median particle size (d50) rang-ing from 0.25 m to less than 0.35 m,having an Fe2O3 content in an amountless than approximately 0.8% by weightrelative to the total solids content, and aGE brightness of at least 91, the kaolinbeing derived from a crude kaolin havingFe2O3 in an amount of at least 1.0% byweight, relative to the weight of the crudekaolin and a titania content of at least1.5% by weight, relative to the weight ofthe crude kaolin.

    BASF Coatings patentscolloidally dispersed metallicbismuth coatingPatent No. U.S. 7,781,054 B2BASF Coatings GmbH has been granteda patent for a coating on a metallic sub-strate prepared from a thermally cur-

    able, organic-based aqueous coating ma-terial comprised of a colloidally dis-persed metallic bismuth, present in anamount between from 0.01% to 2.5%by weight, based on total amount of thecoating, and at least one alkanemono-carboxylic acid having at least 5 carbonatoms in the alkane and the alkane con-sists of the alkane, wherein the col-

    loidally dispersed metallic bis-muth is provided from at leastone salt of bismuth that is pres-ent in an amount greater thanan amount of the at least one alka-nemonocarboxylic acid in the coatingmaterial and wherein the bismuth pres-ent in the coating provides heavy corro-sion protection. CW

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  • AkzoNobel reported a revenue increase of12 percent for the year 2010 to 14.6 bil-lion. EBITDA increased 16 percent to1,964 million, with EBITDA margins upat 13.4 percent. Total 2010 net income in-creased 165 percent to 754 million. Rev-enue growth was driven by a six percentvolume increase across its three businessareas as demand recovered, particularly inhigh growth markets. For the fourth quar-ter, volumes were up three percent, pric-ing improved four percent and EBITDArose three percent to 377 million. Thetotal net income amounted to 162 mil-lion. Raw material prices increased in2010, particularly in the second half of theyear. The company expects 2011 prices toincrease further. Pricing and cost reduc-tion actions are ongoing. Net debt de-creased from 1,744 million at year-end2009 to 936 million at year-end 2010,mainly due to the National Starch divest-ment generating 1 billion of cash. Netcash from operating activities was 519million (2009: 1,220 million) reflectinginvestment in working capital facilitatinggrowth and higher restructuring paymentsin 2010. In September 2010, the companyannounced a simplified dividend policy,stating that it intends to pay a stable torising dividend. In line with this policy,AkzoNobel is proposing a final dividendof 1.08, which would make a total 2010dividend of 1.40, up four percent from1.35 in 2009. Our 2010 performancemarks the first year of delivery of our newstrategy. All business areas have reportedstrong revenue growth, increased prof-itability, improved sustainability perform-ance and higher returns on investedcapital, said CEO Hans Wijers. Ak-zoNobels revenue in high growth mar-kets, currently representing around 40percent of our total, grew more than 20percent, outperforming the market in2010. In our mature markets, revenue in-creased close to ten percent, further evi-dence that our medium-term growth plansare on track. Broad demand improvement

    in both mature and high growth marketsfor specialty chemicals led to a full-yearEBITDA increase of 27 percent. Perform-ance coatings delivered a solid perform-ance, supported by volume growth andselective acquisitions, although EBITDAmargins were impacted by higher raw ma-terial costs. Double-digit revenue growthfor decorative paints was achieved in Asiaand Latin America, with lower volumes inmature markets.

    RPM reports fiscal 2011 second-quarter resultsRPM International Inc. reported that ona pro-forma basis, improvements were re-alized in net sales, net income and earn-ings per share for its fiscal 2011 secondquarter ended November 30, 2010. Prior-year pro-forma results assume that the de-consolidation of its Specialty ProductsHolding Corp. (SPHC) and subsidiaries,which eliminated approximately $300million in annual revenues from the com-panys industrial segment beginning June1, 2010, occurred before fiscal 2010. Netsales, net income and earnings per shareall posted improvements. Net sales grew5.3 percent to $826.3 million from$784.5 million, while net income was up2.3 percent, to $48.8 million from $47.7million a year ago. Consolidated EBITgrew 2.7 percent, to $89.4 million from$87.1 million in the year-ago second quar-ter. On a prior-year pro-forma basis,which offers a better comparison to cur-rent-year actual results, RPMs industrialsegment continued a trend of year-over-year sales increases on the strength of ourbusinesses concentrated in maintenance,repair and infrastructure, while our con-sumer segment faced the challenges oftough comparisons following record re-sults in the fall of 2009. Both segments re-main challenged by higher raw materialcosts, mainly due to capacity reductionsby suppliers, which has exerted down-ward pressure on our gross margins, saidFrank Sullivan, chairman and CEO. On

    an as reported basis, RPMs net sales of$826.3 million were down 3.8 percentfrom the $858.7 million reported in thefiscal 2010 second quarter. Net incomewas off 12.7 percent, to $48.8 millionfrom $55.9 million in the year-ago secondquarter. Consolidated EBIT dropped 4.1percent to $89.4 million from $93.4 mil-lion a year ago. Industrial segment salesgrew eight percent to $582.5 million inthe fiscal 2011 second quarter from$539.2 million a year ago. Industrial seg-ment EBIT increased 0.7 percent, to $68.7million from $68.2 million in the fiscal2010 second quarter. Industrial salesgrowth in the second quarter continued tobenefit from strong sales comparisons incorrosion control coatings and high per-formance polymer flooring, while domes-tic and international sealants linescontinued to struggle in the face of weaknew construction markets, Sullivan said.RPMs consumer segment had a 0.6 per-cent decline in net sales to $243.8 millionfrom $245.2 million in the fiscal 2010 sec-ond quarter. Consumer segment EBIT fell14.4 percent, to $27.3 million from $31.9million a year ago. Our consumer linesmaintained or grew their market share,despite challenges in their end marketsand tough prior-year comparisons, saidSullivan.

    Valspar reports weak results for first-quarterThe Valspar Corporation reported its re-sults for the first-quarter ended January28, 2011. First-quarter sales totaled$842.4 million, a 25.3 percent increasefrom the first quarter of 2010. Net incomefor the first quarter was down to $33.4million in 2011 from $33.9 million in2010. Results for the quarter were in linewith our expectations, said WilliamMansfield, Valspar chairman and CEO.Our Australian paints acquisition andthe continued success of our pricing andnew business efforts drove our double-digit top line growth. Looking ahead, we

    24 | Coatings World www.coatingsworld.com March 2011

    AkzoNobel reports strong fourth quarter resultsFina

    ncia

    l New

    s

    24-25 FinancialNews0311:Financial News 3/4/11 9:32 AM Page 24

  • March 2011 www.coatingsworld.com Coatings World | 25

    remain focused on addressing continuing upward pressure onraw material costs through pricing and pro6ductivity.

    Sherwin-Williams reports fourth quarter resultsThe Sherwin-Williams Company released its financial results forthe fourth quarter and year ended December 31, 2010. Com-pared to the same periods in 2009, consolidated net sales in-creased $296.8 million, or 18.6 percent, to $1.90 billion in thequarter and $682.2 million, or 9.6 percent, to $7.78 billion inthe year due primarily to higher paint sales volume, acquisitionsand selling price increases. Acquisitions increased consolidatednet sales 8.7 percent in the quarter and 3.4 percent in the year.Net sales in the Paint Stores Group increased 8.6 percent to$999.3 million in the quarter and increased 4.1 percent to $4.38billion in the year due primarily to selling price increases andimproving domestic architectural paint sales to residential re-paint contractors and DIY customers. Paint Stores Group seg-ment profit increased to $134.8 million in the quarter from$119.9 million last year and increased to $619.6 million in theyear from $600.2 million last year. Net sales of the ConsumerGroup increased 6.2 percent to $255.0 million in the quarterand 5.9 percent to $1.30 billion in the year due primarily to im-proving demand at some of the segments retail, industrial andinstitutional customers. Segment profit increased to $26.1 mil-lion in the quarter from $4.6 million last year and increased to$204.0 million in the year from $157.4 million last year. TheGlobal Finishes Groups net sales increased 46.4 percent to$640.1 million in the quarter due primarily to acquisitions,higher paint sales volume, and selling price increases. Net salesincreased 26.5 percent to $2.09 billion in the year due primarilyto acquisitions, higher paint sales volume, and favorable cur-rency translation rate changes. Segment profit in the quarter in-creased to $28.8 million from a loss of $1.1 million last yeardue primarily to reduced asset impairment charges, increasedpaint sales volume, and selling price increases, partially offsetby dilution from acquisitions. Segment profit increased in theyear to $123.7 million from $65.0 million last year due prima-rily to increased paint sales volume, a reduction in asset im-pairment charges, and favorable currency rate changes, partiallyoffset by dilution from acquisitions. We are pleased that all ofour operating segments achieved sales and operating profitgrowth on a year over year basis in this continuing uncertainenvironment. Our operating segments continue to control costsand have implemented price increases to offset the current rawmaterial increases, said Christopher Connor, chairman andCEO. Over the past year, our Paint Stores Group continued tofocus on gaining business in all markets and product lines whilemaintaining customer service in a difficult raw material envi-ronment. Consumer Group improved their operating resultsthrough increased sales, realizing the benefits from prior yearsite rationalizations, and maintaining good cost control. In theGlobal Finishes Group, we continue to be pleased with thegrowth in architectural, OEM and automotive finishes sales vol-ume. The Sayerlack and Acroma acquisitions are performing toexpectations. CW

    24-25 FinancialNews0311:Financial News 3/4/11 9:32 AM Page 25

  • Propylene is one of the most importantstarting products in the petrochemical in-dustry. The new study from Ceresana Re-search forecasts a dynamic developmentof the global demand for propylene,namely an increase of more than 20 mil-lion tons by 2017. Sales of propylenereached their peak value of over $90 bil-lion in 2008, said Oliver Kutsch, thepresident of the market research institute.This level will be surpassed as soon asin 2012.

    An important factor, which will impactthe global propylene market, is the mas-sive capacity expansions for propyleneand downstream products in the MiddleEast and China. Middle East countries ex-hibit the largest increases in propyleneproduction and demand. Ceresana Re-search expects that supply and demand inthese countries will have doubled by2014. However, the Asia-Pacific regionwill continue to dominate the market andgenerate more than 45 percent of all de-mand. China is rising to become the great-est propylene consumer worldwide andwill most likely edge out the U.S. to takeover second place in 2011.

    The most important buyers of propy-lene include manufacturers of polypropy-lene who account for nearly two thirdsof all demand. Polypropylene is one ofthe best-selling plastics, second only topolyethylene. The largest consumer is theautomobile industry. Polypropylene hasa very wide range of applications and is,for example, also needed for the manu-facturing of packaging films, bottle caps,fiber ropes as well as for bicycle helmetsand nappies.

    The second-largest propylene marketconsists of producers of acrylonitrile,followed by propylene oxide. The pro-duction of cumene accounts for about5.5 percent of the global demand forpropylene. Acrylonitrile is mainly usedto produce acrylic fibers, which areprocessed into textiles. The derivatives ofpropylene oxide are needed as raw ma-

    terials for the manufacturing of productslike polyurethane, lacquers and adhe-sives, polyester resins, cooling agents,antifreeze and solvents. Cumene ismainly used to manufacture phenol andacetone, and is therefore also a pre-prod-uct for bisphenol A, phenol resins,caprolactam and methyl methacrylate.

    The market study by Ceresana Re-search analyzes the world market forpropylene including demand, production,imports, exports, revenues and prices areexamined, including forecasts up to 2017.Particular emphasis is put on the 55 coun-tries where propylene is produced. The in-vestigated application areas includepolypropylene, acrylonitrile, propyleneoxide, cumene, isopropanol, acrylic acid,2-ethylhexanol, and n-butanol. The buy-ers guide lists 137 profiles of all largepropylene manufacturers. The study isnow available in English or German fromCeresana Research. For more informationvisit www.ceresana.com/en/market-stud-ies/chemicals/propylene/ CW

    U.S. market for woodpreservative chemicals to reach $567.4MThe United States and Europe representmajor markets for wood preservativechemicals. The markets witnessed a de-cline in demand during 2008-2009, pri-marily because of the slump in the macroeconomy. However, the markets bottomedout of the recession and displayed signs ofrecovery by 2010. Factors such as a re-bound of business in the real estate sector,demand in the existing wood housing anddecks segments, and growing domestic de-mand for coatings are likely to steergrowth for wood preservative chemicals.The increasing use of high-value durablecoatings offering the benefits of hassle-freecleanup is also likely to add to the de-mand. Moreover, use of wood coatings inindoor applications, consistent manufac-ture of pressure-treated lumber, construc-tion-related repair activities, and product

    upgrading would further bolster the de-mand for wood coatings. This and otherinformation is available in a new marketreport by Global Industry Analysts Inc.

    Decking represents the largest end-useapplication for wood preservative chemi-cals in the United States. Fencing and rail-road products represent other majorend-use applications for wood preserva-tive chemicals. However, revenues forwood preservative chemicals from thelandscape-products end-use segment areprojected to register fastest growth from2007 through 2015. In terms of volumesales, creosote and pentachlorophenolproduct segments dominate the U.S. woodpreservative chemicals market.

    The interior wood application seg-ment, driven by the revival of the housingsector and an increase in the purchase ofresidential products, is likely to increasedemand for various wood-protectionproducts compared to the exterior seg-ment. Demand for wood-protection prod-ucts is expected to stem from variousinterior wood applications such as woodcabinets and wood flooring. On the otherhand, growing performance and environ-mental issues are major factors drivinggains for greener or superior-value woodpreservatives. Growing concerns over theemission of VOCs has paved the way forthe launch of various eco-friendly solu-tions such as radiation-cured coatings,water-based coatings and powder coat-ings. Moreover, coatings that come withother enhanced performance features,such as the ability to be used for dual pur-poses, and improved durability are alsograbbing the attention of the consumers.Development of wood preservatives with-out the use of harmful or toxic materialssuch as copper, arsenic or chromium isalso on the rise.

    The research report, Wood Preserva-tive Chemicals: A U.S. & European Mar-ket Report, provides a comprehensivereview of current market trends, the im-pact of the recession on the markets, key

    26 | Coatings World www.coatingsworld.com March 2011

    The Propylene Market Recovers Mar

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    growth drivers, product overviews, end-use applications, envi-ronmental and regulatory issues, recent product introductions,recent industry activity, and profiles of major and niche globaland regional market participants.For more details about this report, visit www.strategyr.com/Wood_Preservative_Chemicals_Market_Report.asp

    Megatrends will be key to future growthfor chemicals and materials marketsSeismic shifts in economies, politics, culture and climate and theirconvergence have thrown up global megatrends. These mega-trends present opportunities for companies of all sizes. The chem-ical industry recognizes this as much as any other. Many of thestrategies being set by the worlds top chemical companies arenow based on an understanding of these global megatrends.

    Megatrends are global, sustained and macroeconomic forcesof development that impact business, economy, society, culturesand personal lives, thereby defining our future world and its in-creasing pace of change. Frost & Sullivans ongoing research pro-gram identifies, defines and evaluates megatrends and their futureimplications for a range of businesses and markets, including thechemicals and materials industry.

    Megatrends will have a profound impact on the future di-rection of the chemicals and materials industry, said Frost &Sullivan industry principal Brian Balmer. For instance, thegrowth of mega cities will stimulate growth for many chemicalproducts such as glazing with added acoustic insulation, and ma-terials such as plastics and adhesives that enable the productionof more compact home appliances.

    Over the longer term, continued urbanization in developedcountries will result in demand for more materials that con-tribute to making healthier buildings, such as odor-neutraliz-ing paints.

    Similarly, social trends, in particular for more environmen-tally sustainable solutions, will be the single biggest factor af-fecting future chemicals demand, said Balmer. Thedevelopment of plant-based feed stocks in place of crude oil willbe the most important trend in chemicals to 2020, driven in partby consumer demand led by social trends.

    The impact of social concerns over sustainable and renewablematerials will spur the development of second-generation biofu-els, produced using algae as a feedstock. This will remove theissue over competing with food crops.

    Products designed for modern and future lifestyles part ofGeneration Y use a wide range of innovative chemicals, saidBalmer. These include structural materials such as engineeringplastics for more compact and more feature-packed convergentdevices such as smart phones, composite materials for lighter,stronger sports equipment and eco-friendly materials for bio-sourced, recyclable, reusable or bio-degradable packaging.

    Product areas that will emerge at the forefront in future dueto the impact of megatrends range from nanomaterials, smartmaterials and sustainable/renewable materials to organic elec-tronics, biotechnology and carbon fiber and engineered natural

    A new generation of even more GREEN ULTRALUBE wax additives

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  • fibers. Their growing presencewill, in turn, have ramificationsfor several chemicals.

    For instance, the rise of nan-otechnology has a role to play in plastics,paints, cosmetics and many other fields of

    chemistry. Similarly, the rise of organicelectronics will underline the appeal ofpolymeric materials, which are electricalconductors or semiconductors that enablea wide range of devices, such as clothingwith embedded electronics, e-paper and

    wallpaper that also provides lighting.If you are interested in more informa-

    tion on Frost & Sullivans study, Impactof 2020 Megatrends on Chemicals, sendan e-mail to:Katja Feick at [email protected]. CW

    28 | Coatings World www.coatingsworld.com March 2011

    Mar

    ket

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    orts

    Despite an economy that remains sluggish overall, a majority ofsenior executives in the chemical industry expect their compa-nies to be back to pre-recession revenue levels by the end ofthis year, and four out of ten expect their companies to be in-volved in some sort of merger and acquisition activity withinthe next 12 months. However, the bad news is that its not atall clear that chemical companies are effectively employing theright operational tools and methods, including business-ana-lytics ones, to achieve the kind of growth they want to achievenow that theyre finally getting back to even. Thats accord-ing to a survey of 88 chemical company CEOs, presidents andother senior-level executives released by AlixPartners LLP, theglobal business-advisory firm.

    When the economy turned south a couple of years ago,chemical companies, especiallycompared to companies in manyother industries, responded quitewell by cutting costs and drivingleaner operations, said Bob Sul-livan, managing director of Alix-Partners and co-lead of the firmsGlobal Chemical Industry Practice.And of course, there are stillbenefits to be realized on thatfront, as there always is in any in-dustry. But the name of the gamenow is the top lineeverythingfrom improving pricing, to improving customer relationships,to improving employee productivity. Thats where chemicalcompanies are going to sink or swim from here on out. How-ever, at this point it would appear that many are content tojust tread water.

    The survey found that 53 percent of companies expect toreach pre-recession revenues by the end of 2010, and 42 per-cent of respondents said they think its either very or some-what likely their companies will be involved in a majoracquisition, merger or takeover in the next 12 monthsandfor executives from large chemical companies that numberwas 54 percent. Moreover, approximately three out of five re-spondents said that their companies performance in profitgrowth has increased over the past three years. However,those companies without formal growth targets were lesslikely to report an increase; 55 percent of companies with no

    or informal growth targets reported an increase in profitgrowth, versus 62 percent of companies with formal, meas-urable growth targets.

    As in chemistry itself, coming up with the right mix of el-ements to spur growth in the chemical industry, be it organicgrowth or acquisitive growth, is a delicate balance, saidMike Sinoway, managing director of AlixPartners and leaderof the firms Global Growth Services Practice. Achieving thatright balance is nearly impossible without crystal-clear visibil-ity into both your market and inside the operations of yourown company.

    The AlixPartners survey found that chemical processingcompanies see the year ahead as indeed being very much agrowth-oriented one. When asked to name their top three pri-

    orities for the next 12 months,43 percent cited innovation and40 percent said revenuegrowth. By comparison, just 34percent cited cost reduction.Additionally, despite the appar-ent interest in M&A in the yearahead, 56 percent said theyview organic growth as either acritical or major revenueengine as well.

    One way in which compa-nies might improve their growth

    prospects is more effective business analytics, and the surveyresults indicate that industry executives agree. Thirty percentof those surveyed said they expect their companies to increasespending on business analytics in the year ahead, while onlythree percent plan to decrease spending in this area.

    In todays competitive environment, taking on a growthagenda without the visibility that sound business analytics pro-vides is like stepping into traffic with a blindfold on. You mightmake it across the street, but then again you might not, saidBob Noe, managing director of AlixPartners and lead of thefirms Global Strategic Information Management Practice.And more and more, the issue today isnt so much whetheryour company has analytical systems but rather are you get-ting the most out of those analytics for the money youve putinto them? For many companies, thats a question that remainsperpetually unanswered.

    SURVEY: 42% of chemical companies expect M&A in 2011

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  • by Charles W. Thurston

    Latin America Correspondent

    [email protected]

    BASF has promoted Eugnio LuporiniNeto, previously its top marketer for theSuvinil line, to vice president of architec-

    tural sales and automotive refinishing in SouthAmerica. Suvinil recently celebrated its 50thyear in the Brazilian market, under BASF own-ership for much of the last decade.

    Suvinil is already one of the top brands inBrazils architectural segment, and multifac-eted marketing campaigns recently led by Netoare helping raise its profile even further. Thecompany claims to hold 60 percent of the pre-mium range market for architectural paint inthe country.

    The Suvinil brand was recently ranked thethird most recognized among 72 major brandsfeatured in a recent survey by Arcoweb. It isvery important for us that Suvinil is among themost remembered brands, and apart from beingan inspiration, it shows that the work we havedone is recognized by the public, said Neto.

    Similarly, upon achieving second place out of120 companies competing for the title of MostInnovative Companies in Brazil 2010, Netosaid, To be among the most innovative compa-nies in Brazil further encourages us to alwaysseek the best for our customers. The competi-tion was organized by Epoca Negocios maga-zine, and feted by U.S. consultant A.T. Kearny.Suvinil produces its own research as well. Lastyear, the company interviewed more than 8,000consumers in 49 cities ahead of the launch of itsYour House, Your Pride! sales campaign.

    The green zone is a major target for Suvinil.During the past year, Neto helped Suvinil posi-tion within the Sustainable Apartment projectin Sao Paulo, promoted by green consultantSustentaX Engenharia de Sustentabilidade. Pur-suing LEED principles set out by the U.S. GreenBuilding Council, the Sustainable Apartmentproject brought together materials and goodssuppliers which had secured a SustentaX seal ofGreen approval. A model apartment in Sao

    Paulo featured an all-green construction anddecoration approach, for which Suvinil quali-fied over a dozen of its products, including low-VOC paint.

    Green marketing is also utilized in the com-panys automotive refinishing business, whichNeto also now heads. BASF currently holds anestimated 30 percent share of the Brazilian re-finishing segment, which has a national value ofabout $150 million, Valor Economico suggests.Last year, BASF predicted short-term double-digit growth in the segment.

    Another tangent of the Suvinil marketingstrategy is professional training for resellers andprofessional painters. Last year, Neto staged ap-proximately 170 separate training events to helpsuch collaborators offer the best Suvinil prod-uct for the application.

    Recent Suvinil product launches include theMenos Sujeira, or less mess, Suvinil sub-line,which features less brush or roller dropage anda less noticeable odor during application. Suvinilalso rolled out 13 new color tones for this line,which is available in all shades within the com-panys SelfColor system.

    Suvinil production is centered at the com-panys So Bernardo do Campo location, nearthe city of So Paulo, the largest production sitefor BASF paints and coatings in Brazil, the com-pany said. Capacity at the site is 330 millionliters of coatings, paints and resins, including au-tomotive OEM coatings, automotive refinishes,industrial coatings and the Suvinil brand.

    Apart from domestic sales, Suvinil also ex-ports to Paraguay, Venezuela, Cuba, Bolvia andseveral African countries. CW

    30 | Coatings World www.coatingsworld.com March 2011

    BASF Promotes Top Suvinil Marketer in Brazil

    International Coatings Scene Latin America

    One of Brazils top

    brands continues to

    grow under new

    leadership.

    The Suvinil brand was recently ranked the third

    most recognized among 72 major brands in Brazils

    architectural segment.

    30 LatinAmerica0311:International Coatings Scene 3/4/11 9:35 AM Page 30

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    Project37:Layout 1 3/4/11 2:18 PM Page 1

  • 32 | Coatings World www.coatingsworld.com March 2011

    BASF Pioneers Coatings Technology Research

    International Coatings Scene Europe

    by Sean Milmo

    European Correspondent

    [email protected]

    As coatings producers and their raw ma-terial suppliers increasingly focus onR&D as a platform for growth, BASF is

    showing the big competitive advantages it hasas an innovator in coatings and other sectors.

    First it has the benefit of being a massive ver-tically integrated operation, making not onlycoatings and their raw materials but also thebasic chemicals from which the raw materialsare derived.

    Then because of its size as the worlds largestchemicals producer it has been able to build upan extensive R&D network across the worldwhile running a big central research unit at itscorporate HQ in Ludwigshafen, Germany. As aresult it has been able to generate a steadystream of new technologies and applications incoatings and related segments.

    Research and development at BASF is one ofour strategic assets for generating growth basedon technical and scientific know-how, AndreasKreimeyer, the companys research executive di-rector, told an R&D press conference at Lud-wigshafen. More than 9,600 of our employeesare working in international and interdisciplinaryteams on about 3,600 projects aimed at findinganswers to the challenges of the future.

    By 2015 th