coatings word november 2013

Untitled-1 1 10/29/13 3:39 PM

11_13 CW.indd 1 24.10.13 08:07Untitled-1 1 10/24/13 11:31 AM

Imagination and practicalitycreate Ashlands innovativecoatings additives

Aquafl ow, Dextrol, Fungitrol, Jaypol, Natrosol, Nuosept, Strodex are trademarks of Ashland.

Ashland Specialty Ingredients off ers industry-leadingproducts in its Coatings product line. Ashland is a completeadditive provider of innovative solutions for waterborne architectural coatings, including rheology modifi ers, defoamers, surfactants, dispersants and biocides.

Have more questions on your mind? Call our Ashland representativesat 800 345 0447 / 302 594 5000 or visit ashland.com/coatings

Registered trademark, Ashland or its subsidiaries, registered in various countries Trademark, Ashland or its subsidiaries, registered in various countries 2013, AshlandAD-00000

Registered trademark, Ashland or its subsidiaries, registered in various countries Trademark, Ashland or its subsidiaries, registered in various countries 2013, AshlandAD-12466

ASH-3033 CoatingsAd-Coatings 8x10.75.indd 1 8/12/13 3:40 PMUntitled-1 1 10/22/13 9:40 AM

Untitled-2 1 10/22/13 10:02 AM

November 2013 www.coatingsworld.com Coatings World | 5

Table of ContentsNovember 2013 Vol. 18, No. 11

COATINGS WORLD (ISSN 152-711-29) is published monthly by Rodman Media Corp., 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: (201) 825-2552; Fax (201) 825-0553. Periodical postage paid at Ramsey, NJ 07446 USA and additional mailing offi ces. Publications Mail Agreement No: 40028970. Return Undeliverable Canadian Addresses to Circulation Dept. PO Box 1051, Fort Erie, On L2A 6C7, [email protected]. POSTMASTER: Send address changes to: Coatings World, 70 Hilltop Rd., Ramsey, NJ 07446. Free subscriptions to Coatings World are available to qualifi ed individuals. Others are as follows: U.S. one year $75; two years $120. Outside U.S. and overseas: one year $95 (U.S.), two years $160 (U.S.), foreign airmail: one year $195 (U.S.). 5% GST required on Canadian orders. GST #131559148. The publisher reserves the right to determine qualifi cation of free subscriptions. Printed in the USA. Coatings World is used under license from Whitford Worldwide. Coatings Worlds circulation is audited by BPA International.

ADVERTISING SECTIONSClassifi ed Ads.......................................................48 Advertising Index .................................................49

COLUMNSInternational Coatings Scene ...............................24

Europe Eastern Europe Economic Dif culties Dampen Demand for Coatings

Latin America Venezuelan Paint Market Under PressureAfrica Kansai Paint Strategy for Africa Stirs Regions

Major Markets

Business Corner ...................................................30Distributors are Very Important... Sometimes

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

37 Adhesives and Sealants Market

32 Exterior Architectural Coatings MarketCover photo and image above courtesy of Dunn-Edwards.

5 TOC 1113.indd 5 10/29/13 3:21 PM

6 | Coatings World www.coatingsworld.com November 2013

Edito

rs P

age

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

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

EDITOR Kerry Pianoforte [email protected]

VICE PRESIDENT/EDITORIAL DIRECTORTom Branna [email protected]

ASSOCIATE EDITOR Bridget Klebaur [email protected]

ART DEPARTMENT Michael Del Purgatorio

[email protected]

INTERNATIONAL CORRESPONDENTSSean Milmo (Europe)

Charles W. Thurston (Latin America/Americas)

CONTRIBUTING EDITORS Phil Phillips

EDITORIAL ADVISORY BOARDJim Berry (Berry Environmental)

Joseph Cristiano (consultant) Thomas Frauman (consultant)

Joseph Prane (consultant)Isadore Rubin (consultant)

Richard M. Tepper (PPG Industries)Shelby F. Thames (University of So. Mississippi)

PRESIDENT Rodman J. Zilenziger, Jr.

[email protected]

EXECUTIVE VICE PRESIDENT Matthew J. Montgomery

[email protected]

GROUP PUBLISHER / ADVERTISING SALESDale Pritchett [email protected]

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

ADVERTISING SALES (Europe) Baudry Boisseau Associates

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

[email protected]

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

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

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

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

[email protected]

PRODUCTION MANAGER Patricia Hilla [email protected]

AUDIENCE DEVELOPMENT MANAGERJoe DiMaulo [email protected]

CIRCULATION MANAGERRichard DeVoto [email protected]

ONLINE DIRECTORPaul Simansky [email protected]

Coatings Worlds circulation is audited by BPA Worldwide.

According to a recent report from the National Association of Realtors, new-home sales are at a five-year high. Despite rising mortgage rates, single-family new-home sales rose 8.3 percent in June to the highest level since May 2008, the Commerce Department re-ported. Single-family new-home sales were up 38.1 percent compared to June of last year the largest year-over-year increase since January 1992.

According to data from the National Association of Realtors, total ex-isting-home sales this year will be 10 percent higher than 2012, reaching more than 5.1 million, and are likely to hold even in 2014. The national median existing-home price is expected to rise 11 to 11.5 percent for all of 2013, but moderate to a 5 to 6 percent gain in 2014.

These positive gains are being felt by manufactures of paint, coatings, adhesives and sealants. In the two feature articles in this issue, manufactur-ers attributed improvements in their business with improvements in the housing market.

In Exterior Architectural Coatings Market (page 32), coatings manu-facturers I interviewed reported growth that was being fueled by an im-proved housing market and an increase in consumer confidence.

The rebound in construction activity is a key driving force in this im-provement, said Ethan Opolion, product manager at Dunn-Edwards.

This positive sentiment was also reflected in associate editor, Bridget Klebaurs article, Adhesives and Sealants Market (page 37). According to her article, home sales are the highest levels they have been in four years and home builders continue to hire additional workers in anticipation of a continued robust housing market.

Despite these positive reports, there is no doubt that consumer confi-dence took a hit with the recent 16-day government shutdown. Economists worry that the conflict in Washington could damage the U.S. economy. Lets hope this proves to be a temporary setback and the positive trend continues into 2014.

Improving Housing Market Bodes Well

for Coatings, Adhesive and Sealants Markets

[email protected]

6 Editorial 1113.indd 6 10/29/13 11:01 AM

Ross mixers and blenders are engineered to run

trouble-free for decades. But if you ever need a replacement

part, chances are we have it right here, ready to ship in

48 hours or less.

We keep a multi-million dollar inventory of parts in stock from planetary gears to rotors, stators, seals and

O-rings for your High Shear Mixer. So, when you need

help to keep your production on track, you can count on us.

Learn more about the value built into every Ross mixer and blender. Visit www.mixers.com.

Or call 1-800-243-ROSS.

Jon Kerr Parts Manager Ross Employee Owner

Jon Kerr Parts Manager Ross Employee Owner

Jon KerrParts ManagerRoss Employee Owner

Scan to learn more.Free Tag Reader: http://gettag.mobiS

Need a new gear for your 1967 HDM Double

Planetary Mixer? No problem.

RO-2811i Jon Kerr-Parts ad for Coatings World Bleed: 8.25 x 11 Trim: 8 x 10.75 4-C date: 10/07/13 (SCD#13ROSS132)

Untitled-2 1 10/8/13 10:26 AM

As

We

Go

To P

ress


AkzoNobel Opens New Coatings Plant in India

AkzoNobel has strengthened its manu-facturing footprint in India by opening a new 20 million decorative paints plant in Gwalior, which will have an annual ca-pacity of 55 million liters.

The eco-efficient Greenfield facility AkzoNobels sixth factory in India will supply a range of decorative paints and create improved distribution channels for the popular Dulux brand. The new site will also help speed up transportation times and reduce the cost of logistics.

Speaking at the official inaugura-tion, AkzoNobel CEO Ton Bchner said: India plays an extremely im-portant role in our growth strategy and the new Gwalior site underlines our commitment to creating a lead-ing coatings powerhouse in India. As a global leader in sustainability, Im also pleased that the plant has focused so heavily on energy, water and resource conservation, which will be vital in helping us to create more value from fewer resources.

The Gwalior plant will provide cost-effective access to key markets in the northern and central areas of India, added Amit Jain, managing di-rector of AkzoNobel India. This will greatly reinforce our strategy of ex-panding Dulux distribution, as well as improving customer service in these high growth regions.

The factory has been built on 9,000m2 of land, with a greenbelt area of 9,000m2, while sufficient infrastructure is in place to support future expansion plans. Provision has also been made to accommodate key suppliers, allowing for a smoother manufacturing process.

Special sustainability features include rainwater harvesting and energy efficient pumping systems, while 20 percent of the roofing area allows natural daylight to flood in, reducing the need for artifi-cial lighting.

AkzoNobel currently employs ap-proximately 1,800 people in India.

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

who were instrumental in developing the breakthrough corrosion-protection tech-nology that is now used by automakers and industrial OEMs around the world.

PPG launched its first industrial e-coat service line in 1963 for General Electric. Today, PPG operates more than 1,000 e-coat tanks to support major global in-dustrial and automotive manufacturers, including Caterpillar, General Electric, John Deere and Whirlpool. CW

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

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

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

Aremco Products ............................................................................................. 23

Axalta Coating Systems ................................................................................... 10

BASF ............................................................................................................... 10

Benjamin Moore ............................................................................................. 46

BehrPro ........................................................................................................... 10

Carboline ........................................................................................................ 23

Cortec ............................................................................................................. 23

Crown Paint .................................................................................................... 28

DAP ................................................................................................................ 37

H.B. Fuller ...................................................................................................... 37

Helios ............................................................................................................. 10

Henkel ............................................................................................................ 37

Kansai Paint .................................................................................................... 28

NOFMetal Coatings Group ............................................................................ 10

Nippon Paint ................................................................................................... 10

PPG ............................................................................................8, 10, 22, 23, 46

The Sherwin-Williams Company ..................................................................... 10

Tremco ............................................................................................................ 37

Valspar ............................................................................................................ 10

3M .................................................................................................................. 37

8 As We Go 1113.indd 8 10/30/13 9:24 AM

Conclusive evidence. 30 years of experience in the tinting business means you are getting our expertise in every color you see. And as industry frontrunner in no- and low-VOC colorants, dispensers and software we are geared up for the next 30 years. Want to know more about tomorrows tinting solutions? Visit www.cpscolor.com/next30yrs today!

Ahead in tintingfor over 30 years.

0997_00_094_A4-adv_v2.indd 1 5/14/13 12:17 PMUntitled-2 1 5/23/13 11:27 AM


Fres

h Pa

int

AkzoNobel has opened a new center for research at its Sassenheim site in the Netherlands. Along with a research cen-ter in Slough in the UK and Singapore, the Dutch location is now one of the main research centers for AkzoNobels Decorative Paints portfolio.

The new facility in Sassenheim will focus on research into decorative paints, wood adhesives and pre-deco products, while Slough will concentrate more on wall paints. Recent innovations involve fast-drying paints, which can also be ap-plied and repainted at low temperatures.

The new facility will house approxi-mately 100 scientists, bringing the total number of people working in research, de-velopment and innovation (RD&I) at the Sassenheim site to approximately 400.

Sustainable innovation is key to our success and the new center is a valuable investment, which will enable us to orga-nize our research activities more efficient-ly and effectively, said Ruud Joosten, AkzoNobels executive committee mem-ber responsible for Decorative Paints.

Added director global R&D Decorative Paints, Andr van Linden: Sassenheim is already a major research hub, but strengthening our power to in-novate means we will be better posi-tioned to focus on delivering pioneering products and technologies that make a real difference to our customers and our markets.

Boosting Sassenheims RD&I know-how also means that the site has further enhanced its position as a key center of expertise, where researchers and scien-tists can share knowledge and contribute to the development of new technologies not only for decorative paints, but also for many of the companys other busi-nesses located in Sassenheim.

Valspar Awarded Top Metal Construction AwardThe Valspar Corporation has been named the Metal Construction

Associations Chairmans Award re-cipient for Overall Excellence in its participation with the Central Arizona College, Maricopa Campus project. The award, presented at METALCON International, an annual metal con-struction tradeshow, honors MCA members for outstanding building proj-ects across the world. This year, a panel of three architect judges reviewed more than 90 architectural projects to deter-mine award winners based on innova-tion and creativity.

Designed by SmithGroupJJR, the 76,000 square foot facility consists of four buildings featuring classrooms, community meeting spaces, a library and a culinary arts kitchen. Located in the Maricopa community, the campus serves more than 15,000 students and 1,000 faculty members. The project was unveiled two years after the projects ground breaking ceremony. The $18 mil-lion project was also the Grand Award Winner of the 2013 Metal Architecture Design Awards.

Valspar provided a Fluropon coating for the Cor-Ten AZP color that was ap-plied in a three-coat process by Precoat Metals to create a unique, rusted and desert-inspired appearance to embrace the campus Native American roots, while providing the metal with advanced protection against the elements. The Fluropon coating, containing 70 percent PVDF resins, provides the strongest pro-tection against weathering, aging and pollution and exceptional color retention to preserve the beautiful aesthetic of the facility for years to come, according to the company.

The award ceremony took place at the Georgia World Congress Center during the METALCON trade show that highlighted project participants including Metal Sales Manufacturing Corporation, US Steel, Precoat Metals, SmithGroupJJR, CORE Construction and Kovach Building enclosures.

BEHRPRO Supports Community BeautificationBehrPro, the professional products and services group of Behr Process Corporation, was the official paint spon-sor and active participant in this years Hands On Atlanta Day, the citys larg-est civic engagement day dedicated to transforming Greater Atlantas com-munities. In support of the city-wide ef-fort, BehrPro donated 155 total gallons of paint, including Behr Premium Plus Ultra, Behr Premium Plus, Behr Premium Weatherproofing All-In-One Wood Stain and Sealer and Behr Premium Porch and Patio Floor Paint. A team of 25 lo-cal BehrPro volunteers also joined forces with more than 7,000 event participants to revitalize and beautify approximately 65 organizations, in just one day.

Raquel Hudson, associate director of corporate volunteerism at Hands On Atlanta, selected BehrPro as the exclusive supplier of paints and stains for the orga-nizations largest event of the year after success with Behr products on previous residential and commercial projects. Beyond the companys high-quality prod-uct offerings, Hudson and her team has come to rely on the comprehensive port-folio of professional services available through the BehrPro program, including jobsite delivery, factory tinting and ex-pert advice provided by representatives. She stated, Having a dedicated BehrPro rep to help us select paints, provide ad-vice and deliver product right to the job-site has been crucial in streamlining our operations.

With the majority of Hands On Atlanta Day projects focused on restoring high-traffic areas, such as local schools or community centers, it was critical that the paint be durable enough to withstand consistent wear and tear, said Hudson. However, it was important that the paint was easy for our volunteerssome of whom have limited experience with large-scale paint projectsto apply in

AkzoNobel Opens New Dutch Lab

10-20 Fresh Paint 1113.indd 10 10/29/13 3:29 PM

Achtung Lithozeile druckt nicht mit! Diese Datei ist ohne berfllungen angelegt! Farbton Offset-Druck 48c 100m14359 03-033-1-2-A Evonik Anzeige Englisch Motiv Meerjungfrau 4c Format: 203 x 273 mm + 3 mm Beschnitt 02.10.13 amCoatings World, OF, ET November 2013

ww

w.e

voni

k.co

mWe look forward to developing permanently clean surfaces for you.

We love your problems.

We can protect ships hulls from biofouling, and much more besides. Together with our customers, we develop exceptional solutions for exceptional applications. We are the creative surface specialists for industrial coatings, architectural coatings, printing inks and automotive needs. Which problem would you like us to solve for you?

Untitled-1 1 10/8/13 9:27 AM


Fres

h Pa

int

a short period of time. We also prefer to use bright, vibrant col-ors to create uplifting and invit-ing environments. Fortunately,

we were able to find a variety of prod-ucts that met all the criteria through the BehrPro program.

BehrPro sales representative Phillip Hayes led volunteer efforts on behalf of the company and worked with Hudson and her team to identify the most fitting products for Hands On Atlanta Day proj-ects. With everything from classrooms to picnic tables and murals requiring atten-tion, Hayes and the BehrPro team were able to provide on-site expertise and help train volunteers on how to quickly and effectively complete the paint jobs.

We were honored to join the 23rd Annual Hands On Atlanta Day and be a part of the thousands of community members who donated time and labor to help restore the schools and non-profits in need, Hayes said. With BehrPros portfolio of high-quality products, Atlanta will receive the beautification it

deserves, with lasting durability that re-quires less maintenance.

Axalta Receives Best Performance Vendor Award from Tata Marcopolo Axalta Coating Systems in India received the Best Performance Award from Tata Marcopolo Motors Ltd, an India-based joint venture between Tata Motors and Marcopolo S.A. of Brazil. With daily pro-duction reaching almost 70 buses dur-ing its peak season, Tata Marcopolo has become one of Asias leading bus manu-facturers. This is the third consecutive year that Tata Marcopolo selected Axalta Coating Systems for its award out of its pool of suppliers, acknowledging Axaltas commitment to provide consistent, high-performance coatings solutions.

We are very proud to receive this prestigious award, said Vinay Rajadhyaksha, managing director, Axalta Coating Systems India Pvt. Limited. The award recognizes the close collaboration between Tata Marcopolo and our team.

We look forward to strengthening our successful partnership by offering distin-guished and innovative services to sup-port Tata Marcopolos growth.

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

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

PPG Donates Winter Supplies to Yushu County in China for Sixth Consecutive Year

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



Fres

h Pa

int

PAINTMANAGER software from PPG with the REPAIRCENTER ToolStore program from Mitchell, which is a provider of technology, connectivity and information solutions to the prop-erty and casualty claims and collision-repair industries. PaintManager software is a propri-etary network solution that helps boost collision center productivity by combin-ing computerized color mixing accuracy and efficiency with comprehensive re-porting and tracking features. Efficiency can be enhanced further by incorporating PPGs paint shop interface utility, which enables sharing of critical workflow in-formation between the front office and the paint operation. The RepairCenter ToolStore pro-gram is a dynamic marketplace that en-ables body shops to connect with their mission-critical collision repair trading partners and third-party add-on tools to streamline workflow and run their businesses more profitably and effi-ciently. According to the company, by combining PaintManager software with the RepairCenter ToolStore program, collision centers can generate a seam-less, easily accessible data stream to monitor and manage body shop repair and paint procedures. This will enable them to operate more efficiently while augmenting repair productivity and in-creasing revenue opportunities.

Nippon Paint USA Sells Seibert Powder CoatingsNippon Paint (USA) Inc. (NP-USA), a subsidiary of Nippon Paint Co., Ltd. of Osaka, Japan, has reached an agree-ment with Protech Chemicals Ltd. to sell the powder coating business of NPA Coatings Inc. (NPAC), also known as Seibert Powder Coatings.

Seibert Powder Coatings is a division of NPAC, a wholly owned subsidiary of NP-USA, located in Cleveland, Ohio. Terms of the asset sale were not disclosed. The transaction is expected to be final-ized by November 15, 2013.

Protech plans to continue to manu-facture powder paint at the Cleveland facility and offer employment to the vast majority of current employees.

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

company sincerely committed to continuing to provide quali-ty powder paint to the market.

NPACs liquid paint divi-sion will continue to supply paint and coatings to its OEM and Tier automo-tive customers. We will continue to focus on providing the highest qual-ity paint to our existing automotive

Extend your Open-Time with RHODOLINE OTE 500!

RHODOLINE OTE 500 enables low/zero VOC formulations in waterborne paints, inks and colorants.

North AmericaPhone: +1-800-973-7873Fax: +1-609-860-0463

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

Asia Paci cPhone: +65 - 6291 1921Fax: +65 - 6394 3376

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

[email protected]

Committed to your coatings success

Rhodia is now Solvay!



Results of U.S. Architectural Coatings Industry Research ReportWhich Compared Business Trends in September 2013 vs. September 2012

Each month, Northcoast Research surveys a large sample of paint retailers throughout the U.S. to get a sense for current business trends. Please note that of the three primary architectural coat-ings channels (paint stores, home centers and retail distributors), this survey is primarily reflective of the distributor channel which tends to see volume growth less than the industry; therefore, view the results as a directional indicator more so than absolute indus-try volumes. For inquiries regarding this report contact Kevin Ho-cevar at 216-468-6924 or [email protected].

Architectural Coatings Sales Volumes Up 1.3% in Septem-ber vs. Last YearAccording to industry participants, average sales volumes in Sep-tember rose 1.3% year-over-year and slightly contracted from the 2.5% level in August. Our survey respondents tend to cater more towards the do-it-yourself painter (DIY) and given existing home sales, which tends to correlate higher with DIY sales than new con-struction, has grown 12% this year we expect results to continue to trend positively. Overall, 62% of respondents witnessed an in-crease in volumes vs. only 23% that saw volumes decline, which averaged out to 1.3% volume growth and a net increase of 39%.

Price of Paint from Suppliers Paint Prices Up vs. Last Year but Growth Slows65% of contacts noted a year-over-year increase in the cost of a gallon of paint from suppliers in the month of September as our paint price index increased 1.4%. This compares to a year-over-year increase of 1.0% and 1.5% in August and July, respec-tively. Price increases issued by paint manufacturers in 2012 as a result of recovering raw material inflation are starting to an-niversary and thus year-over-year price increases are becoming less pronounced a trend that is likely to continue. We believe the trend of flat pricing will be sustained as 83% of respondents reported that there have been no price increase notifications is-sued from paint suppliers at this time.

Raw Materials TiO2 Prices appear to be Bottoming OutThroughout 2013, titanium dioxide (TiO2) has been on a down-ward trend but our research suggests a floor is being reached. In recent weeks a few grades of paint grade TiO2 have wit-nessed small price increases in the range of 1-3%. The success of these increases is yet to be determined however TiO2 inven-tories are beginning to become more balanced and as utiliza-tion rates increase, we would not be surprised to see success-ful price increases by the end of 2013. Propylene prices have been rebounding since April; however, they are still below highs seen in February and actually began to tick down over the past couple of weeks.

Paint Inventory Levels Inventories Remain Fairly Balanced75% of respondents stated that current paint inventory levels at their location are in-line with current business conditions and they are maintaining current levels of purchasing. Only 10% of contacts noted that current paint inventory levels are too low while the remaining 14% of participants revealed that paint in-ventory levels were too high in September. Overall, we believe that inventories are well-aligned with current demand levels.

3 Month Outlook Outlook Positive with a Hint of SeasonalityOur proprietary Architectural Coatings Outlook Index reached a 0.35 for the month of September compared to a level of 0.57 in August. Note that the highest possible reading is +2 (indi-cating all contacts have a very positive outlook) and the low-est possible reading is -2 (indicating all contacts have a very negative outlook. A reading of 0.35 is a positive translation (albeit at a slightly lesser rate than August) as it indicates that contacts within the industry maintain a favorable outlook but expect general slowdowns in-line with seasonal patterns over the near term now that the more robust summer months have come to an end.

Northcoast Research Time Series

Index March April May June July August September

Volume (vs. prior year) 1.3% 1.8% 2.0% 2.3% 0.8% 2.5% 1.3%

Price (vs. prior year) 1.5% 1.5% 2.0% 2.1% 1.5% 1.0% 1.4%

% of Contacts Expecting a Price Increase

28% 18% 17% 17% 17% 14% 17%

Outlook 0.85 0.68 0.43 0.70 0.30 0.57 0.35

Northcoast Research Time Series Index for Architectural Coatings



Fres

h Pa

int

customers while seeking to expand our business throughout North America, said Morita.

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

for catalysts. These research results are an important contribution to realizing highly active and stabile electrocata-lysts for efficient electrochemical energy converters.

With the Science Award Electrochemistry, which is endowed with prize money of 50,000, BASF and Volkswagen support outstanding scien-tific and engineering achievements in the electrochemistry, and provide an incen-tive for the development of high-perfor-mance energy stores.

The Science Award Electrochemistry (www.science-award.com ) has been presented annually since 2012 and tar-gets top scientists in the global academ-ic research community. This is the first science award to be presented jointly by two companies on a cross-sectoral basis. The prize money is intended as start-up funding for further research ac-tivities and is to be used for laboratory equipment, scientific events or to fund highly qualified employees.

Ring International and Helios Enter Into Share Purchase AgreementHelios Domale d.d. and Ring International Holding (RIH), a Vienna-based industrial group active in the fields of stationery products and industrial coatings, agreed on the terms and condi-tions of a share purchase agreement (SPA) in which RIH is to acquire 73.12 percent of the shares in Helios. Completion of the share transfer is still subject to cer-tain conditions customary for his type of transaction, including merger control clearance. Once the share transfer is com-pleted, RIH will in accordance with applicable Slovenian law publish the takeover intention and subsequently a mandatory takeover offer to theremain-ing minority shareholders of Helios.

Strongly believing in the strengths and prosperous future of Helios, RIH will integrate part of its existing coating divi-sion into Helios operations with the aim



Fres

h Pa

int

of increasing efficiency of the combined group, through econo-mies of scale, innovation and the realization of synergies especial-

ly in the fields of R&D, and by unifying branding and marketing, according to the company. R&D activities of the enlarged group will be centralized in Slovenia in order to concentrate all knowledge and innovation in Helios Domale. RIH, thus intends to preserve and further create highly skilled workplaces in Slovenia. Helios will become the headquarter of the combined entity and the umbrella brand of the new combined entity and shall become an active consolidator of the coating industry in Europe, with a special focus on SEE (South Eastern Europe) and CIS (Commonwealth of Independent States) region. RIH will further develop the Helios brand and its main brand names. Slovenian main manufacturing locations shall remain the centerpiece of Helios business activities. Employment levels at Helios in Slovenia shall be sub-stantially maintained or increased.

Helios is a leading manufacturer of coatings in South Eastern Europe. Headquartered in Slovenia (Domale near Ljubljana), Helios employs ap-proximately 2,200 employees and runs ten productionplants located in Slovenia, Croatia, Russia, Serbia and Ukraine. The companys product portfolio covers the full spectrum of coating products, in-cluding decorative coatings, car refinish-ing coatings, coatings for metal industry, coatings for wood industry, powder coat-ings, road marking paints and synthetic resins. The company reports that it holds leading market positions in selected ge-ographies and product categories with a strong portfolio of well-known estab-lished brands such as Mobihel, Helios, Chromos, Belinka, Zvezda, Colomix, Odilak, Duga and Color.

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

opportunities for the brand.A respected paint industry leader,

PPG will connect HomeSpheres grow-ing builder network to its wide range of interior and exterior paints and stains, caulks and adhesives, including the re-cently added Glidden Professional Paints and products that meet the most strin-gent environmental standards. Its popu-lar brands, including Pittsburgh Paints, Olympic and Martha Stewart Living, are distributed through home centers, inde-pendent dealers and a network of compa-ny-owned stores across North America.

With our strong suite of brands and large distribution network, PPG is unique-ly positioned to service the new residen-tial market, said PPG national business development manager Carl Howell. HomeSphere connects our team to a much broader base of home builders that can benefit from our variety and environ-mentally-conscious paints and coatings.

PPG joins nearly 75 preferred manu-facturers using HomeSphere BRI and its industry-first digital marketing services to connect with a growing network of regional and local builders. Members of HomeSpheres extensive builder network are staged to construct nearly 20 per-cent of the total new single-family homes forecast in 2013. Nationally, local and regional builders construct 75 percent of current new-build homes.

Keep America Beautifuls Graffiti Prevention Grant Awards Presented to Seven Local OrganizationsKeep America Beautiful (KAB) an-nounced the winners of the 2013 Graffiti Hurts Grant Program. This year, KAB provided four $2,500 cash grants as well as two $2,500 paint supply certificates from The Sherwin-Williams Company. Q-Star also provided a FlashCAM, val-ued at $6,995, to one deserving recipient. The FlashCAM is a deterrent system ef-fective in preventing illegal trespassing during hours it most often occurs.

$2,500 cash grant recipients: Population >250,000: Keep

Riverside Clean & Beautiful, Riverside, California

Population 75,000 250,000: City of Baton Rouge, Baton Rouge, Louisiana.

Population < 75,000: Coastal Carolina University, Conway, South Carolina and Keep Hammond Beautiful, Hammond, Louisiana.

$2,500 Sherwin-Williams paint supply certificate recipients:

Population > 75,000: Keep Las Vegas Beautiful, Las Vegas, Nevada.

Population 75,000 250,000: Keep Alachua County Beautiful, Gainesville, Florida.

Q-Star FlashCAM recipient: Eight Mile Boulevard Association,

Detroit, Michigan.

The recipients of this years Graffiti Hurts Grant Program awards reinforce how volunteer engagement can help mitigate damage that can be caused by graffiti vandalism, said Becky Lyons, COO of Keep America Beautiful. Were very grateful to The Sherwin-Williams Company for its ongoing support of the Graffiti Hurts program, which provides communities with valuable tools and re-sources to abate graffiti.

Responding to the blight of graffiti vandalism, the Graffiti Hurts program was developed in 1996 through a part-nership between Keep America Beautiful, the nations largest nonprofit that builds and sustains vibrant communities, and The Sherwin-Williams Company, maker of Krylon paint. The Graffiti Hurts Grant Program was initiated in 2007. According to the U.S. Department of Justice, graf-fiti contributes to lost revenue associated with reduced ridership on transit sys-tems, reduced retail sales, and declines in the value of surrounding residential and commercial property.

The Graffiti Hurts Grant Program augments the power of local partner-ships, volunteerism and community engagement in beautifying communi-ties while eradicating blight, said Ian L. Gresham, vice president of mar-keting, Diversified Brands Division, The Sherwin-Williams Company. Sherwin-Williams is proud to be a



Fres

h Pa

int

supporter of Graffiti Hurts and com-mends the vision of this years award-winning local initiatives.

NOF Metal Coatings Group Major Partner of the Wind Power SectorA worldwide leader in anti-corrosion protection of metallic parts based on zinc flake chemical compounds in aqueous phase, the NOFMetal Coatings Group is a partner of choice in the automobile industry, the company reported. Having set its reputation on the performance of its coatings and the quality of its ser-vices, the international group confirms its presence in the developing wind power sector. Companies such as Vestas, Gamesa, Alstom Wind, Acciona, Clipper Windpower and Vergnet have approved the technologies commercialized by NOF Metal Coatings.

The common goal of all participants in the global wind market, OEMs, sup-pliers, distributors or bolt makers, is to

respond to the customers needs and to meet their requirements. Thanks to its global network and international dimension, the NOF Metal Coatings Group has adopted an approach based on support and therefore is seen as a key partner to all participants in the wind power industry.

With the range of coatings DACROMET and GEOMET, as well as the topcoats PLUS, widely used in the au-tomobile industry, NOF Metal Coatings provides a long-term solution for the wind energy sector and a response to its specific technical requirements. The low-thickness of the coatings and their anti-corrosion protection mechanisms guarantee the performance and reliability necessary in very aggressive wet and sa-line environments.

NOF Metal Coatings global li-censees network is capable of meeting the coating needs on metallic parts of the wind power sector in terms of ap-plication processes (Dip-Spin and Spray

process on frame or rack) as well as production volumes.

In 2013, the NOF Metal Coatings Group renewed its participation in the China Wind Power tradeshow in Beijing with major compa-nies of the wind energy sector.

PPG Donates $72,000 for Education-related Initiatives in Greater Pittsburgh AreaThe PPG Industries Foundation has donated $72,000 recently to educa-tion-related initiatives in the Greater Pittsburgh area, where the company maintains its global headquarters and several facilities. The grants highlight PPG Industries commitment to sup-porting its local communities and the foundations top funding priority of backing educational programs.

The recent grants have funded: Allegheny Intermediate Units Math

& Science Collaborative program

Protection of Trade Secrets-It's Elemental

*TRADESECRETAUDITS *TRADESECRETVALUATIONS*INNOVATIONPROTECTION *TRADESECRETLITIGATION

Let us help you protect your intellectual propertyand manage your risks.

----------------------------------------------------------

300 West Ave. Ste. 1316; Austin, Texas 78701(512) 472-8282. Email: [email protected]

www.technologylitigators.com

Youve spent years developing your products. Wherewould your business be if someone walked off with yoursecret formula? Your client lists? Your confidentialbusiness strategy?At McDaniel and Associates, not only are we skilled in

protecting your trade secrets, but at the core of our businessare scientists who have long been involved in the specialtychemicals industry. We understand the challenges specific toour industry and can assist you in safeguarding anddefending the security of yourmost valuable assets.

Tech Lit:Layout 1 4/1/13 9:38 AM Page 1



Fres

h Pa

int

Fred Rogers Center of Saint Vincent Colleges Early Learning Environment

Girl Scouts of Western Pennsylvanias Color of Science program

Pirates Charities Pittsburgh Pirates Education Days program

YMCA of Pittsburghs effort to pro-vide scholarships for students and chaperones to attend the YMCA Europe Festival in Prague.

PPG is strongly committed to sup-porting educational programs in the com-munities where it has a presence, said Sue Sloan, executive director of the PPG Industries Foundation. As Pittsburgh is PPGs global headquarters community, we are very pleased to support so many organizations in the area that do great work in advancing an array of learning opportunities.

Established in 1951, the PPG Industries Foundation demonstrates the values of PPG Industries by enhancing the quality of life in communities where the company has a presence. Interests of the founda-tion, in order of priority, are education, human services, culture and arts, and civic and community affairs. PPG also supports charitable causes by encourag-ing employees volunteerism and board service with nonprofit organizations.

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

COLORMOBILE software application. Designed for smartphones and tablets, the new application allows quick and easy mobile retrieval of the most up-to-date PPG color information. Collision indus-try professionals using PPG and NEXA AUTOCOLOR products now have free access, 24/7, to the latest Prime, Variant and Special field formulas anywhere there is an Internet connection.

We are very excited about the new ColorMobile application and the con-venience it offers, said Mary Kimbro, PPG global color director. We designed the application for personnel requiring immediate access to vital color informa-tion. Sales and technical representatives frequently need to answer color ques-tions any time of the day or while theyre on the roadaway from their desktop computers. With ColorMobile, obtaining color information quickly and accurately is easier than ever.

The ColorMobile application features a user-friendly screen and enhanced func-tionality including streamlined searching based on a users individual preferences. General search results may be obtained through a variety of categories such as vehicle manufacturer, OEM/brand codes, model, year, color description and others. Once results are presented, the user can expand the Formula Details screen to view minimum mix quantities and VOC information.

The ColorMobile application also has email capability. We know how im-portant it is for industry professionals to stay connected with customers, adds Kimbro. We included the email function

so color formulations could be sent out right away.

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

Ole Kristian Fureid from Norway wins the R-M International Best Painter Contest 2013 Ole Kristian Fureid from Norway is the winner of the international final of the Best Painter Contest of BASFs automo-tive refinish brand R-M. Elvis Husic from Slovenia came in second place and Steve Poiret from Belgium took third place.

18 participants, all under the age of 30, from Asia Pacific, Europe and South Africa competed in the international final at the R-M Refinish Competence Center in Clermont de lOise, France after hav-ing been selected in the national finals. The best automotive refinish painters were elected for the finals globally.

The R-M Best Painter Contest has shown once again that we have the high-est profile of automotive refinish painters in our business: young talents all provid-ing excellent results, said Harald Pflanzl, senior vice president Automotive Refinish Coatings Solutions Europe. Our de-clared objective is to provide innovative solutions to make our customers more successful. With the new R-M Refinish Competence Center, we have an excellent



Fres

h Pa

int

location and offer a unique platform for sharing knowledge and know-how with our clients and business partners like 3M, DeVilbiss, EMM, RUPES and SATA.

The 18 best young painters demon-strated their talent in a wide range of demanding technical skills tests. These included the very latest high efficiency refinish technology, using R-Ms water-borne paint line ONYX HD, as well as application and repair techniques, color tests, a consultancy task and the correct use of consumables.

The VIP Colour Task was another challenge. The finalists had to demon-strate their own design paint scheme on a scale model car, employing the latest OEM color trends. The contest reflects R-Ms reputation as a premium automo-tive refinish paint brand and its passion for color and design with experts from vehicle manufacturers and the world of design. Mark Gutjahr, head of design Europe at BASF judged this additional color task.

I am very happy about the great suc-cess of Ole Kristian Fureid, said Ronny Raeymaekers, jury president and manager of the R-M Refinish Competence Center. All finalists have shown strong determi-nation especially as the competition was tough and the conditions unique. The en-tire R-M and jury team congratulates the winners and their teams.

The participants were representatives from Austria, Belarus, Belgium, Bulgaria, France, Germany, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Russia, Slovenia, Spain, South Africa, Switzerland and the United Kingdom. Also the premium business partners 3M, DeVilbiss, EMM, RUPES and SATA ac-tively supported the contest with key speeches and the celebration of young talents, together with R-Ms regular busi-ness partners including Festool, Horn & Bauer, Mettler-Toledo, Norton/StGobain, SIA Abrasives and Teroson.

PPG Relocates Automotive Refinish Southwest China Regional OfficePPG Industries has relocated its re-gional office for automotive refinish operations in Southwest China to the

Chengdu Economic and Technological Development Zone. The relocation cer-emony also marked the inauguration of a new Chengdu training center for PPGs automotive refinish business.

Guests from leading automotive manufacturers and their dealers, PPG suppliers and authorized distributors, and representatives from partner schools

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

Untitled-3 1 8/20/13 10:00 AM



Fres

h Pa

int

Department of the Sichuan Province Administration for Transportation; Jia Luncai, vice director, Chengdu Economic

and Technological Development Zone Management Commission; Hao Jianping, chairman, Chengdu Automotive Maintenance and Repair Trade Association.

The relocation of the southwest China regional office to the Chengdu Economic and Technological Development Zone marks a major step forward in our ef-forts to get closer to our customers and improve our overall services in this re-gion, said Pauline Yuen, PPG vice presi-dent, refinish coatings and light industrial coatings, Asia. The southwest region has long been a focus for PPGs business in China, and the new training center in Chengdu will enable us to respond faster to the growing demand from customers here and to accelerate PPGs growth in the China market.

Covering 1,000 square meters, the new Chengdu training center can host train-ing programs for more than 1,200 people each year. The centers design incorpo-rates eco-friendly, state-of-the-art equip-ment such as a central vacuum system, a centralized exhaust system and an intelli-gent gas-powered room, providing train-ees with an enhanced training experience and high-efficiency repair experience in a safe and comfortable environment.

The new training center aims to bring PPGs leading technologies and train-ing programs to the growing automo-tive refinish market in Chinas southwest region, said James Yang, PPG general manager of automotive refinish and light industrial coatings, Greater China. We are continuing to advance the gen-eral knowledge and management skills of spray-finishing professionals in China.

Since it entered the China market in the 1980s, PPGs automotive refinish business has built training centers in Shanghai, Beijing, Guangzhou and Chengdu, pro-viding training for thousands of techni-cians from automotive manufacturers, automotive dealers and refinish distribu-tors. PPG offers a wide array of refin-ish brands such as DELTRON, NEXA Autocolor, ACS, EMAXX and V-PRO

coatings. It was the first company to in-troduce waterborne automotive coatings to China, offering AQUABASE Plus and ENVIROBASE high performance coat-ings to help promote a greener automo-tive aftermarket in China.

Researchers at the University of Rochester Develop Foam Polymer Coatings with Varying Density and Pore StructuresA researcher at the University of Rochester has developed a process to grow highly customizable coatings of foam-like polymers.

The process, developed by Mitchell Anthamatten, an associate professor of chemical engineering at the Universitys Hajim School of Engineering and Applied Sciences, involves growing foam poly-mers directly from gases.

With this process we can grow polymer coatings in which the density and pore structure varies in space, said Anthamatten. My hope is that the re-search leads to applications in a wide variety of fields, including medical, manu-facturing and high-tech research.

Anthamatten, working closely with graduate student Ran Tao, developed a system in which a mixture of gases is pumped into a low pressure reactor containing a cold surface to encourage condensation. One of the condensed liquids actually forms the polymer material, while the other one tempo-rarily occupies the spaces that become the pores in the foam material. But the problem is that the liquids in the film dont mix wellvery much like water and oil. Whats required is to quickly solidify the polymer film, just as the two liquids begin to separate from one another. By controlling the solidifica-tion rate, they could control the size and distribution of the pores; the faster the coating is solidified, the smaller the pores become.

Anthamatten and Tao found the an-swer by adjusting the rate at which the gases were fed into the system, changing the temperature of the cold surface in the reactor, and using a chemical agent that helps solidify the coating. By adjusting all

those factors, they were able to coat foam polymers with different densities, thick-nesses, shapes, and hole-sizes.

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



Mar

ket R

epor

ts

TMR has released a new report analyzing current market trends of the decorative coat-ings market. Decorative coatings or architectural coatings are the finishes and paints that are applied on commercial and residential build-ings. They are mainly used to add colors to the room and make them attractive and fresh and to serve as protection from mois-ture, corrosion, bacteria and UV radiation. Decorative coatings have various appli-cations such as interior and exterior house paints, primers, sealers, varnishes and stains. In recent years the beauty of products in terms of looks and appearance and its aes-thetic values are important in making the product stand out of the other products. Based on the type of architectural coating the market can be segmented into exterior water-based coatings, interior water-based coatings, exterior solvent based coatings, interior solvent based coatings, architectural lacquers and other architectural coatings.

According to a new report from TMR, in 2012, architectural coatings dominated the global coatings market, accounted for the single largest share in value terms. The mushrooming of office buildings, housing complexes and shopping malls all over the world drive the growth of decorative coat-ings market.

The decorative coating market is driven by high investments and growth in construction and furniture sector. The growing consumer interest in aesthetics and home decoration and the improv-ing standards of living are fueling the demand for architectural coatings. The market share of decorative coatings in the overall coatings market increased as compared to other segments. In the emerging economies consumers are be-coming increasingly Westernized in terms of increased living standard, while the recession still shows an impact in many developed western economies, where the growth rates of the market have declined. In emerging markets, the large chunk of consumers are becoming price sensitive,

forcing the manufacturers to focus on in-novative and customized products.

A major challenge faced by the decora-tive coatings industry is the stringent regula-tions regarding the usage of toxic chemicals in coatings and this has forced decorative paint formulators to seek environmentally friendly and innovative solutions.

Environmental Regulations/Key Players in the MarketVarious factors such as environment regulations, health and wellness con-cern, technology and convenience, are playing an increasingly important role in the global decorative coatings market. The growing end-users awareness of the advantages of reduced volatile organic compounds (VOC) emissions has has-tened the consumption of water-based decorative coatings and are expected to replace solvent-based products in inte-rior applications. Some of the key play-ers in this market include AkzoNobel NV, PPG, Dulux, Dow Chemical, Sherwin-Williams, BASF and DuPont.

This research report analyzes this mar-ket depending on its market segments, major geographies, and current market trends. Geographies analyzed under this research report include: North America, Asia Pacific, Europe and Rest of the World.

This report provides comprehensive analysis of market growth drivers, factors limiting market growth, current market trends, market structure and market pro-jections for upcoming years.

This report offers a complete study of current trends in the market, industry growth drivers and restraints. It provides market projections for the coming years. It includes analysis of recent develop-ments in technology, Porters five force model analysis and detailed profiles of top industry players.

The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis.

Dispersing Agents Market Worth $6.3 Billion by 2018Marketsandmarkets has published a new report, Dispersant/Dispersing Agent Market, by End-User Industries (Construction, Paint & Coating, Pulp & Paper, Detergent, Oil & Gas, Agriculture, Pharmaceutical) & Geography Trends & Forecast to 2018, defines and seg-ments the global dispersing agent market with an analysis and forecast of the vol-ume consumed and revenue generated. The dispersing agent consumption will grow from an estimated 3,960 KT in 2013 to 5,475 KT by 2018, growing at a CAGR of 6.7 percent.

According to the report, the dispersing agents market is mainly driven by grow-ing demand for end-user industries such as construction, paints and coatings, pulp and paper, detergents, oil and gas, agricul-ture and pharmaceutical. The rising need for infrastructure drives the consumption of dispersing agents in the construction industry. Similarly, accelerating develop-ment in the infrastructure and automotive sector has resulted in an expansion of the market for dispersing agents in the paints and coatings industry. The oil and gas in-dustry will show a rapid growth with in-creasing demand from the automobile and energy sector.

According to the report, the dispers-ing agents market is fragmented and has an immense potential to attract various small and big level industry players. It experiences a huge surge, especially in Asia-Pacific, due to its flourishing infra-structure sector. It is the highest growing market, followed by Europe and North America that drives the global consump-tion of dispersing agents.

New product development is the ma-jor growth strategy adopted by market players. Most of the companies are en-gaged in developing new and improved products to meet the rising demand from end-user industries so as to increase their dispersing agents business. CW

TMR Analyzes Current Market Trends of Decorative Coatings Market

21 Market Reports 1113.indd 21 10/29/13 11:03 AM


Fina

ncia

l New

s

Akzo Nobel N.V. reported third quar-ter revenues of 3,778 million, 5 percent lower compared with the same period last year. The decrease was a consequence of adverse currency effects and divestments. Lower restructuring costs and higher vol-umes helped push Q3 operating income up 22 percent to 303 million.

The third quarter saw AkzoNobel divest its Building Adhesives business and announce plans to drive further ef-ficiency and performance improvements within Functional Chemicals and in Germany, as well as plans to streamline the management structure in Decorative Paints to improve competitiveness. The company also published details of in-vestments totaling more than 50 mil-lion in two new manufacturing facilities to meet growing demand in western China. AkzoNobel furthermore main-tained its number one ranking in the Dow Jones Sustainability Index, heading the Materials industry group.

Decorative Paints revenues of 1,136 million in the third quarter were stable versus the previous year, with higher volumes offset by adverse currency ef-fects. Although conditions in Europe remained challenging in general, global volumes were up on the same quarter last year. Lower costs and lower restruc-turing charges contributed to increased operating income for Q3 2013 of 107 million, more than double the previous years figure.

Quarterly revenue at Performance Coatings declined 4 percent to 1,415 million compared with last year, with the decline attributable to adverse currency effects. Whilst overall volumes were up 2 percent, weak demand in Europe contin-ued to impact all businesses. Q3 restruc-turing costs were lower in 2013 than a year earlier, as a result of which operating income showed an improvement, up 23 percent at 160 million.

Revenue in Specialty Chemicals was 10 percent lower at 1,252 million,

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

PPG Reports Third Quarter ResultsPPG Industries reported third quarter 2013 net sales of $4 billion, up 17 percent versus the prior year. Third quarter 2013 reported net income from continuing op-erations was $220 million, or $1.52 per diluted share, and adjusted net income from continuing operations was $353 million, or $2.44 per diluted share. Third quarter 2012 reported net income and earnings per diluted share from continu-ing operations were $288 million and $1.86, respectively. There were no nonre-curring charges in the prior-year quarter.

We continued to deliver record finan-cial performance in the third quarter as positive impacts from our cash deploy-ment and our strong operating focus were coupled with a broader improve-ment in market conditions, said Charles E. Bunch, PPG chairman and chief execu-tive officer. Aerospace and automotive OEM coatings remained PPGs most con-sistent growth drivers, with many other businesses contributing to the overall sales and earnings growth. Performance Coatings segment net sales for the quarter were $1.6 billion, up 34 percent, or $409 million, versus the prior year due primarily to the ad-dition of sales from acquired businesses. Segment volumes, excluding acquisitions, declined 2 percent, as the impact of lower marine new-build industry demand in Asia offset growth in all other businesses. Currency translation reduced sales by 1 percent. Aerospace net sales advanced more than 10 percent as continued strong

end-use market demand gains were sup-plemented by sales from acquired busi-nesses. Automotive refinish net sales grew, aided by strong emerging-region volume growth that offset negative currency im-pacts and a modest volume decline in Europe. North American architectural coatings net sales, excluding acquisitions, were up mid-single-digit percentages, reflecting consistently higher market de-mand. Segment earnings improved $49 million, or 24 percent, to $252 million as a result of acquired businesses earnings and lower costs that stemmed from busi-ness restructuring actions and ongoing cost management. Industrial Coatings segment net sales for the quarter were $1.2 billion, ad-vancing about 10 percent, or $109 mil-lion, versus the prior year due to higher volumes and modest acquisition-related gains. Volumes in automotive original equipment manufacturer (OEM) coat-ings grew by about 10 percent globally. Global industrial coatings business unit volumes improved mid-single-digit per-centages and volume trends improved in all regions in comparison with the first half of 2013. Global packaging coatings volumes grew modestly. Segment earn-ings for the quarter were $181 million, up 18 percent as a result of higher volumes and continued cost management.

Architectural Coatings EMEA (Europe, Middle East and Africa) seg-ment net sales for the quarter were $571 million, up $7 million, or 1 percent, ver-sus the prior year as lower volumes offset favorable foreign currency translation. For the third quarter volumes declined by 4 percent year over year. Despite the low-er volumes, segment earnings of $73 mil-lion represented growth of $17 million, or 30 percent, versus the prior year, aided by aggressive discretionary cost-manage-ment actions and lower costs, including benefits from prior restructuring actions. Currency translation contributed $2 mil-lion to segment earnings. CW

2013 AkzoNobel Q3 Results

22 Financial News 1113.indd 22 10/28/13 4:24 PM

New

Pro

duct

s

Carboline Company, a global manufac-turer of high performance coatings, linings and fireproofing products, has launched Polyclad ARO, an advanced high perfor-mance coating formulated to protect fu-sion bonded epoxy (FBE) coated buried steel pipe from damage during horizontal directional drilling installations. Polyclad ARO is specially designed for the protection of FBE or epoxy coat-ed pipeline from gouge and mechanical damage during directional drilling or slip bore installations. Polyclad ARO is applied directly over coated pipe as an abrasion resistant overlay (ARO) and provides superior protection in rocky, rough and mountainous environments. It absorbs the destructive energy and minimizes coating damage, according to the company.

The purpose of ARO coatings is to protect the FBE from damage while be-ing pulled through a drilled hole. The test that best simulates this damage is the gouge resistance test currently being de-veloped by NACE International. Polyclad ARO has the best gouge resistance of all abrasion resistant overlay (ARO) coat-ings on the market, the company reports.

PPG Launches AUE-370YL for Industrial Coatings PPG Industries commercial coatings group has launched AUE-370YL, a key addition to its family of CPC/LIC (Commercial Performance Coatings/Light Industrial Coatings) high-hiding yellow resin bases. AUE-370YL is a yel-low tint base intended to provide in-creased hiding at lower-dry film builds for select industrial colors.

AUE-370YL will provide users of direct-to-metal technology with ap-proximately 30-35 percent better hiding on yellow colors, the company reported. The increased hiding capability creates faster production throughput and cost savings for the end-user since fewer coats are required.

AUE-370YL, like AUE-370, is an easy-to-use, direct-to-metal 2.8 pounds-per-gallon high-solids VOC (volatile organic compound) urethane that is part of the CPC family of topcoat products. This resin allows for high build of the topcoat using a variety of application equipment including airless.

PPGs commercial coatings group of-fers a full range of coating technologies for the commercial transportation and light industrial markets, including poly-urethanes, alkyds, epoxies, polyurea, waterborne, pretreatment chemicals and powder coatings. PPGs commer-cial coatings products are marketed under names such as the DELFLEET Evolution, DELFLEET ESSENTIAL, Commercial Performance Coatings and AMERCOAT brands.

New Biobased Open Atmosphere Corrosion Inhibitor From CortecCortec Corporation, a leader in in-novative, green, sustainable technolo-gies has launched EcoLine 3680, a certified biobased, biodegradable, ready-to-use temporary coating for multimetal protection.

EcoLine 3680 is formulated with USDA (United States Department of Agriculture) renewable raw materials, which allows use for corrosion protec-tion of equipment where incidental con-tact with food is possible. The product is HX-1 approval pending.

This green inhibitor provides pre-mium indoor and outdoor multimetal protection. When applied on the sur-face, it leaves a tenacious, dry-to-touch protective coating, which provides ex-cellent protection on metal surfaces, according to the company. The film is self-healing and moisture-displacing, providing superior protection even against aggressive environments. This wax-like film can be removed with alka-line cleaners such as Cortec VpCI-414.

EcoLine 3680 is safe, economical and easy-to-use.

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

Carboline Launches Polyclad ARO to Protect FBE/Epoxy Coated Steel Pipe


23 New Products 1113.indd 23 10/28/13 10:03 AM

International Coatings Scene Europe

by Sean Milmo European Correspondent [email protected]

Eastern Europe used to be regarded by Western European coatings producers as the buoyant market on their doorstep in which demand could be depended upon to boost their sales especially at times of sluggish domestic growth.

Now, however, much of Eastern Europe is no longer playing the role of the helpful neigh-bor. Many countries in the region are having the sort of economic difficulties that are damp-ening demand for coatings in their Western European counterparts.

In the five years to 2007 GDP growth was in most Eastern European countries more than double that of the annual average for the European Union of 2.5 percent.

Since 2008, the gap in GDP growth rates has narrowed dramatically, with GDP rises in some Eastern European countries even falling below the EU average.

The economies of new Eastern European en-trants into the EU have not so far gained the sort of impetus that other Eastern European states have enjoyed from membership. The average rate of GDP growth has declined in Romania and Bulgaria since they joined in 2007.

Some of the weaker Eastern European economies are taking far longer to recover from the 2008 economic crisis than expected, ex-plained Armodios Yannidis, vice-president of the Greek coatings producer Vitex-Yannidis Group which has been expanding its decorative paints operation into southeastern Europe.

The Eastern European construction sector, the mainstay of coatings demand, has been struggling to return to the relatively high investment lev-els before 2008. In some countries construction

Since 2008, the

gap in GDP

growth rates

has narrowed

dramatically, with

GDP rises in some

Eastern European

countries even

falling below the

EU average.

Eastern Europe Economic Difficulties Dampen Demand for Coatings


24-25 Europe 1113.indd 24 10/29/13 11:03 AM

International Coatings Scene Europe

production has been falling by more than 10-20 percent over the last two years.

In Hungary construction has been re-covering this year with production in the second quarter almost 11 percent higher than in the same period in 2012. But this was still approximately 8 percent lower than in 2010, according to figures from Eurostat, the EUs statistical service.

The construction sector had been virtually dead until quite recently when there was a small revival in investment, said one Hungarian analyst.

In Romania a rise in construction activity this year has not yet generated higher decorative coatings sales in value terms. In the first half of 2013 growth by volume went up by 3-5 percent but by value dropped by 2-4 percent due to low prices, said Yannidis.

Since 2008, when Romanias decora-tive paints market was worth 210 mil-lion ($295 million) it has been constantly shrinking due to the crisis in the countrys real estate construction sector, the loss of consumers purchasing power and the overall decline in industrial production, said Yannidis.

In Serbia, due to join the EU shortly, decorative paints sales plummeted by 25 percent last year and have continued to contract by 15 percent in 2013, he adds.

Vitex-Yannidis opened just before the 2008 financial debacle a new 30 mil-lion coatings plant at its headquarters in Aspropyrgos near Athens with an annual capacity of 24,000 tons. The strategy was to use the facility to consolidate a leading position in the Greek decorative market while expanding exports in southeast Europe where it had established sales and distribution networks in Romania, Bulgaria and Serbia.

While these Eastern European markets collapsed, demand for decorative paints in Greece went into freefall in the wake of severe government austerity measures to deal with a national debt crisis.

The sales of Vitex-Yannidis dived by

half with the company making its first losses in its 80-year history. It has been restructuring to focus more sharply on decorative paints, especially in the Greek market where there are signs that a 55-60 percent slump in sales is starting to flat-ten out.

2013 has been a good year for us, said Yannidia. Our sales figures are posi-tive up an estimated 4 percent by the year end-- for the first time for six years. The constant restructuring we have been doing is also paying off and our result will be positive again.

The company last year extended its toll manufacturing activities at Aspropyrgos to enable other international coatings producers to use it as a base to supply the Eastern European market.

This type of outsourcing is a sign of companies downsizing their ex-port activities in the region, explained Yannidis. Weve been talking to one company which is thinking of closing a plant. With a toll manufacturing ar-rangement it can at least maintain some presence in the market.

Russia is one major Eastern European country that has been attaining growth well above EU average rates in recent years although not so high as the 8 per-cent annual peaks before 2008. This is reflected in high levels of local demand for coatings.

Economic growth in Russia has been slowing down slightly this year but it is still the fastest growing coatings market in Eastern Europe, said Patrik Gallen, head of the coatings business at Bang & Bonsomer, a Finnish-based chemicals dis-tributor whose sales to coatings produc-ers in Russia have been increasing at over 10 percent annually.

The Russian market has been attract-ing the leading multinational and regional coatings companies because when demand in much of the rest of Europe is flat this is a major Eastern European country show-ing some kind of growth, he added.

Top coatings players have been step-ping up their investment in the coun-try. We are now investing continuously in our business in Russia in the area of brands, supply chain, new products and our distribution network, said Jan-Piet van Kesteren, AkzoNobels decora-tive paints regional director for Eastern Europe and Africa.

Western European companies have been exploiting a rising preference in the Russian coatings market for qual-ity products. Russia now accounts for around 40 percent of sales of the Finnish coatings company Tikkurila which tar-gets the premium-priced part of the coun-trys market.

A liking for quality also helps distribu-tors of foreign-made speciality chemicals for which Russian production is unable to meet demand. We have been able to benefit from the growth of the upper-end of the market, said Gallen. The higher the quality of the coatings the more there is a need for speciality chemicals which are not produced locally.

Poland is another large Eastern European country that has quickly recovered from the 2008 crisis. But even it has been vulnerable to reversals, particularly in the construction sec-tor. In the second quarter of this year construction production dropped to 23 percent below the level a year ago, ac-cording to Eurostat.

Russia, which is susceptible to changes in prices of oil and gas, the cornerstone of its economy, has been having its blips as well. The World Bank is predicting that its GDP growth will drop by almost half to 1.8 percent this year but will bounce back to 3.1 percent in 2014.

The underlying trend in Eastern Europe, nonetheless, even in the countries with more thriving economies, like Russia and Poland, is one of steadily decreasing GDP growth rates. As these are closely linked to paint demand, that means slow-er rises in the region in coatings sales. CW


The underlying trend in Eastern Europe...is one of steadily decreasing GDP growth rates.

24-25 Europe 1113.indd 25 10/29/13 11:03 AM

International Coatings Scene Latin America


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

Venezuelas paint and coatings manufacturers are under severe pressure both to produce and to sell because of a shortage of raw mate-rials, a limited access to hard currency and a depressed local economy. Pablo Olalquiaga, the president of Asociacin Venezolana de la Industria Qumica y Petroquimica (Asoquim), the na-tional chemical industry association, recently said, the industry is going through a very difficult time. Indeed, Alejandro Werner, the director of the International Monetary Funds Western Hemisphere department warned in early October that the economic situ-ation in Venezuela is unsustainable...without adjustments.

While the new Venezuelan president Nicolas Maduro is attempting to re-build the countrys decimated economy, his task is formidable. Inflation is run-ning close to 30 percent per year, prod-uct price controls are still in effect for many products including paint and coatings, and the weak and overvalued domestic currency the bolivar is making imports more expensive. Ex-strongman Hugo Chavez died in March after a long and contentious term as president, marked by such business stifling activities as nationalizations of foreign companies.

Continued raw material imports by paint makers are being slowed by large outstanding debt payments to the suppliers, both domestic and for-eign. According to figures cited by Olalquiaga, the paint and coatings industry now owes foreign suppliers close to $700 million, while domestic suppliers are owed close to $400 mil-lion. One impact is that suppliers are raising prices: at mid-2013 the Central

Bank of Venezuela (BCV) estimated that overall prices in the construction industry went up more than 50 percent over the prior year, against an infla-tionary rise of only 30 percent.

Asoquim statistics show that most Venezuelan paint producers registered double-digit increases in sales over the first two quarters of this year; however continued sales growth is being threat-ened by very low stock levels. Nearly half of the association membership re-ported production down during the first two quarters by over 17 percent. Over the same period, paint and coatings ex-ports were reported by members to have slid approximately 15 percent. Paint can shortages are forcing some manufactur-ers to produce only quarts, Olalquiaga noted in one recent interview. Overall idle capacity is running close to 70 per-cent, he noted in another.

The Venezuelan economy is grind-ing to a halt, with expansion forecast

at no more than 1.0 percent this year, compared with 5.6 percent last year. More pessimistic, Spains BBVA bank group forecast that Venezuelan econ-omy would contract 0.4 percent this year while Peru expands by 5.8 per-cent, Chile by 4.2 percent, Mexico and Argentina by 3.0 percent, and Brazil by 2.5 percent. The Latin American re-gion is expected by BBVA to expand by 3.1 percent this year, according to the banks third-quarter analysis.

One of the governments plans for recovery is to auction $900 million worth of U.S. dollars over the next few months to help companies with import payment problems. The government has also raised the minimum wage twice this year, but is in a constant battle with inflation. And finally, following Venezuelas 2012 entry into the South American Mercosur trade block, more imports and exports are expected with Brazil and Argentina. CW

Venezuelan Paint Market Under Pressure

26 Latin America 1113.indd 26 10/28/13 10:04 AM

www.american-coatings-show.comGeorgia World Congress Center

Atlanta, GA

April 8-10, 2014

American Coatings ConferenCe April 7-9, 2014

2014

Untitled-3 1 10/30/13 2:03 PM

International Coatings Scene Africa

Kansai Paint strategy for Africa Stirs Regions Major Markets

by Shem Oirere Africa Correspondent

A plot developed by global Osaka-based paint maker Kansai Paint in 2010, to diversify geographi-c

coatings word november 2013

Documents