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● Bayer MaterialScience to sell polyester resins businesses to Stepan 2

● Clariant and SK Capital report on progress of the textile, paper and emulsions

activities divestment 3

● HMG Paints has Prodrive all covered 4

● Resinall Rütgers Resins GmbH becomes RÜTGERS Resins GmbH 5

● Nova Scotia-based Mr. Paint welcomes Sansin Enviro Stains to its store shelves 6

● USS Freedom repainted with AMERCOAT 240, PSX 700SG coatings by PPG 7

● A PROFILE OF THE EASTERN EUROPEN PAINT INDUSTRY 8

Momentive Specialty Chemicals successfully completes start-up of new

coating resins plant in Thailand

Momentive Specialty Chemicals Inc. (“Momentive Specialty Chemicals” or the “Company”)

has announced the successful start-up of its new plant in Chonburi, Thailand, which

significantly increases its capacity to produce acrylic-based resins and service customers in

Southeast Asia.

Following the successful start-up of the plant’s reactors, production is expected to gradually

ramp up in the second quarter of 2013. The new plant significantly expands Momentive’s

production of acrylic-based resins in the region and allows the company to broaden its

product offering in this important growth region. The site, which is located on land

purchased by the company in the Pinthong Industrial Estate Park, is capable of producing

the latest generation of acrylic resins designed for use primarily in coatings, adhesives, and

building and construction applications. In addition to

production facilities, the new site includes

product development and

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CONTENTS

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applications laboratories, as well as technical service and application support capabilities for

customers.

“We are pleased to start up this new facility on time and on budget,” said Julia Harp, Senior

Vice President. “The new facility positions us to grow rapidly in Southeast Asia and we are

excited to provide a broader range of acrylic resins to meet the needs of our valued

customers.”

The Chonburi plant is the company’s second addition to its Asia-Pacific footprint in 2013. In

March 2013, the Company also announced that it had opened a new plant in Tianjin, China.

The Tianjin site produces a full range of amine curing agents and supports the global

demand for high performance epoxy systems.

The company plans to employ 30 people at the Chonburi plant when it becomes fully

operational. The new Chonburi, Thailand, site replaces Momentive Specialty Chemical’s

former, smaller plant in Samutsakorn, Thailand, which was a leased property. The company

continues to maintain its sales and administrative offices in Bangkok.

Source: Momentive Specialty Chemicals, 23 April

Bayer MaterialScience LLC has agreed to

sell its global powder polyester resins

business and its US-based liquid polyester

resins merchant business to Stepan

Company of Northfield, Illinois. The sale is

scheduled to be completed by June 1.

Financial terms were not disclosed.

Both Bayer businesses are located in

Columbus, Georgia. The 45 Bayer

employees who work at the Columbus

facility will be offered the opportunity to

become Stepan employees.

“The divestiture allows us to focus on our

core competencies,” explained Daniel

Meyer, Head of the Coatings, Adhesives,

Specialties business unit at Bayer

MaterialScience AG. “We believe we have

found the right home for our North

American polyester resins business and

look forward to watching it develop

further successfully under new

ownership.”

Bayer will retain its trade name

Desmophen® to continue to sell its diverse

portfolio of products to the coatings,

adhesives, sealants and elastomers

industries around the world, including

liquid polyester resins in markets outside

the United States.

Bayer MaterialScience/Stepan Company

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“This acquisition will significantly expand

Stepan’s polyol product offering. Stepan is

a leading producer of polyester polyol

used in rigid insulation foam. This

acquisition will diversify our polyol

offering and accelerate our efforts to

grow in CASE [coatings, adhesives,

sealants and elastomers] and PUSH

[Polyurethane Systems House]

applications,” said F. Quinn Stepan, Jr.,

President and CEO of Stepan Company.

“We intend to make future capital

expenditures to expand the capabilities at

Columbus.”

“Stepan is getting a solid business, a base

of loyal customers and talented, value-

driven employees,” said Jerry MacCleary,

President of Bayer MaterialScience in the

NAFTA region. “Everyone wins with this

transaction.”

Bayer acquired the Columbus facility in

2000 when it purchased Sybron Chemicals

Inc. Today, the facility includes both

commercial and production operations,

serving North America as a leading

producer of polyester resins. Powder

polyester resins are used in a variety of

coatings applications, including industrial

metal and transportation coatings. Liquid

polyester resins are utilised as building

blocks in various coatings and adhesives.

Source: Bayer MaterialScience, 30 April

Clariant, a world leader in Specialty Chemicals, and SK Capital, a private investment firm

with a disciplined focus on the specialty materials, chemicals and healthcare sectors, have

provided an update on the separation process of Textile Chemicals, Paper Specialties and

Emulsions. Clariant announced that it agreed to sell the three businesses to SK Capital on

27th December 2012.

After closing of the transaction, the three businesses will be regrouped under a new

company with the name of Archroma. Archroma will be a world leading supplier of products

and solutions to the textile, paper, adhesives and coating industries with a turnover of CHF

1.2 billion and approximately 3,000 employees. The company will be headquartered in

Switzerland, which will also host the leadership of Archroma Paper Solutions. Archroma

Textile Specialties will be managed from Singapore and Archroma Emulsions Products will

be managed from Brazil.

The operational and legal separation, including the incorporation of legal entities, licensing

and registration activities, the establishment of IT systems, and development of

Clariant/SK Capital

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infrastructure and support services as well as ensuring a seamless transition for the

Archroma employees is proceeding well. “The project is running full steam ahead. I am

delighted to see the commitment of the joint separation team as well as the employees of

the businesses which are highly motivated and are working on the separation with great

professionalism”, says Clariant CFO Patrick Jany.

An important aspect in establishing the new company is obtaining merger control and

governmental approvals and authorisations, several of which remain pending. To ensure a

successful separation process that minimises disruption for both customers and employees,

Clariant and SK Capital have targeted a closing of the transaction at the end of the 3rd

quarter of 2013. Barry Siadat, a Managing Director of SK Capital, says: “The separation of

the Archroma business from Clariant is progressing well, and we are focused on closing the

transaction once all transition activities are completed. We remain jointly committed to

provide our customers with the highest quality products and services throughout this period

of transition.”

Source: Clariant, 30 April

HMG Paints, the UK’s largest independent

paints manufacturer, has become a

technical partner of Prodrive Motorsport

and will supply all its paints and coatings

for its Aston Martin Racing and MINI

World Rally teams.

HMG Paints not only specialises in

coatings for automotive use, but also

supplies paint and a variety of protective

coatings to a wide variety of industries.

Coatings supplied by the Manchester

based company have been painted on

fleets of commercial buses, protected the

British Starchaser rocket and have been

used by film studios on a number of

movies.

Prodrive uses hundreds of litres of paint

every year on its race and rally cars on a

variety of surfaces, including carbon fibre

composite, aluminium, steel, and plastics.

HMG Paints has over 80 years’ experience

of developing and manufacturing highly

specialised coatings for all substrates and

will be fully utilising the modern research

and development facilities located in

Manchester. Prodrive will be working

alongside HMG Paints, as a technical

partner, on a number of projects to

ensure superb colour quality and the

effective coating of these surfaces.

HMG Paints/Prodrive

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“It was important to us to have a partner

who could match the exact colours

demanded by our sponsors,” said Richard

Taylor, Prodrive Business Development

Director. “We will also be working with

HMG on a weight reduction programme

that will minimise our paint and coatings

usage, as ultimately every gram we can

shave off the weight of the car gives us a

performance advantage.”

The experienced paint technicians at HMG

Paints will also be working alongside

Prodrive on a number of other coatings

projects. “We are working to significantly

enhance the appearance of the cars using

unique pigments, producing even more

vibrant and eye-catching colours,” said

Steve Crossman, Business Development

Director at HMG. “Together, we are also

developing new heat management

coatings for the vehicle interior and

exterior, and an advanced lotus effect

treatment that will reduce the amount of

mud and dirt that clings to the car during

a race.”

The partnership has already got off to a

flying start with the Aston Martin Racing

team claiming a thrilling victory at the 6

hours of Silverstone World Endurance

Championship event in both the GTE Pro

and Am classes.

HMG Managing Director, John Falder said:

“We have often driven past Prodrive on

the M40 and have followed their success

on the track and stage. It is a great

privilege to know that the next time we

watch the Aston Martins at Le Mans and

the MINI on the stages of the World Rally

Championship, that they will be gleaming

in paint developed and produced by us

here in Manchester.”

Source: HMG Paints, 1 May

Effective April 16th 2013, the industrial resin producer Resinall

Rütgers Resins GmbH changed its name to RÜTGERS Resins

GmbH.

After RÜTGERS Novares GmbH, a subsidiary company of internationally operating RÜTGERS

Group, had acquired and fully integrated the 50% share capital of Resinall Europe into their

Business Line Resins & Modifiers, RÜTGERS Novares today operates successfully and

customer-oriented at two high-class production sites.

RÜTGERS Group

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Both RÜTGERS Novares GmbH with its production site in Duisburg and the Uithoorn-based

RÜTGERS Resins are well experienced in the development, production and marketing of

high-quality hydrocarbon resins for the adhesive, printing inks, coatings, synthetic asphalt

and rubber industry.

“The state of the art equipment of both sites combined with the innovation, technology and

application know-how of our motivated teams will create an effective production and

supply network: The best preconditions to meet the needs of our industrial customers”, said

Uwe Holland, Head of Business Line Resins and Modifiers. “The combination of both

production sites leads to a well balanced product portfolio which will meet the expectations

of our customers. By integrating the two sites we will also be able to optimise our service

level in order to improve our delivery reliability even further."

Source: RÜTGERS Group, 1 May

The Sansin Corporation announced that

Mr. Paint, based in Sydney, Nova Scotia,

will feature its line of water-borne

exterior Enviro Stain wood finishes for

siding and decks, as well as the Purity

interior line and microfine colorant

system.

Open for 30 years, the Mr. Paint store

serves both commercial and residential

customers looking for high quality,

durable wood stains that also meet

increasingly stringent regulations and

feature an enviro-friendly formulation.

“We saw two demonstrations of the

Sansin product and were highly impressed

with the product’s ease of application,

colour offering and durability,” said Henry

Tomko, Co-owner of Mr. Paint. “What

astounded us the most is that the Sansin

colour swatch and the actual colour

applied on the piece of wood matched

exactly; it was right on the money, which

is very important to our customers.”

Sansin pioneered a water-borne alkyd

formula that combines the benefits of

both oil- and water-based coatings, using

water as the vehicle to allow oil to

penetrate deep into the wood. Sansin’s

wood finishes deliver long-lasting

durability, easier maintenance and

outstanding performance without the

toxicity found in conventional stains that

contribute to smog and ozone depletion.

“Mr. Paint has a reputation for standing

behind its products and advising

customers on how to use product for

Mr. Paint/Sansin Corporation

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maximum success,” said Sjoerd Bos, Vice

President of Sansin. “Mr. Paint needed an

enviro-friendly wood stain line that could

deliver high performance. Sansin exterior

stains provide all the characteristics of

penetrating oils, yet utilise moisture in the

wood itself to diffuse deep into the wood

tissue, even when the moisture content is

as high as 25 percent.”

Mr. Paint will sell Sansin’s exterior line of

Enviro Stains (Classic™, DEC™, ENS™ and

SDF™), Sansin Purity® interior wood

finishes and sealants, and the microfine

colour system.

Source: Sansin Corporation, 22 April

PPG Industries announced that the topsides of the USS

Freedom, lead ship of the US Navy’s littoral combat ships

(LCS), have been repainted using AMERCOAT® 240 edge-

retention epoxy and PSX® 700SG epoxy-polysiloxane coatings

by PPG’s protective and marine coatings (PMC) business.

Commissioned in 2008, the USS Freedom went to dry dock in

January 2013 to remove the existing coatings system because that system had failed.

Lockheed Martin, builder of the USS Freedom,

naval contractor YYK Enterprises, Inc., National

City, Calif., and the US Navy specified a two-coat

system by PPG incorporating one coat of

Amercoat 240 edge-retention epoxy from the

water line to the rail and a finish coat of PSX

700SG coating from the water line to the topside

interface to replace the existing coatings system.

PSX 700SG coating is a semi-gloss version of the

patented PSX 700 epoxy-polysiloxane product,

which was engineered to meet US government

marine coating requirements. PSX 700SG coating

is more resistant to fading and colour shifting

than the original silicon-alkyd-based coating and

easier to clean.

Using the Amercoat 240 epoxy and PSX 700SG coating system, the USS Freedom became the

first naval warship since the 1960s to incorporate the US Navy Federal Standard Colours for

PPG

The topsides of the USS Freedom, lead ship of the US Navy’s littoral combat ships (LCS), have been repainted using AMERCOAT® 240 edge-retention epoxy and PSX® 700SG epoxy polysiloxane coatings by PPG Industries’ protective and marine coatings business. Using the

Amercoat 240 epoxy and PSX 700SG coating system, the

USS Freedom became the first naval warship since the 1960s to incorporate the US Navy Federal Standard

Colours for camouflage, featuring black, haze grey, light grey and ocean grey.

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camouflage, featuring black, haze grey, light grey and ocean grey. Cmdr. Patrick Thien,

commanding officer of one of the USS Freedom’s two active crews, said, “I want my ship to

look like a warship. If we’re going to paint it, we might as well go all the way.”

Because the USS Freedom is an active warship, PPG and YYK Enterprises had to meet

accelerated deadlines for supply and painting. Amercoat 240 epoxy and four colors of PSX

700SG coating were manufactured in record time and shipped from PPG’s Little Rock, Ark.,

facility to YYK’s loading dock in National City within 72 hours. Priming and painting began

immediately, and the ship was returned to service in less than six weeks.

PSX 700SG coating is a color-stable LSA (low solar-absorbing), low-VOC (volatile organic

compound) coating with unlimited recoatability for easier touch-up and maintenance. It

contains no isocyanates and offers superior abrasion resistance, wide cure temperature

flexibility and unique surface tension to minimise rust and dirt streaking.

PSX 700SG coating is approved on the US Navy Qualified Product List (QPL) for topside and

freeboard applications and also complies with US Department of Defence MIL-PRF-24635E,

Type V (high-durability), Type VI (high-durability, low-VOC), Class 2 (semi-gloss), Grade B

(low solar-absorbing) specifications.

PPG’s PMC business is a world leader in protective and marine coatings. Its products protect

customers’ assets in some of the world’s most demanding conditions and environments,

such as projects in energy, infrastructure and marine markets. PPG PMC features lines such

as the Amercoat and SIGMA COATINGS® brands.

Source: PPG Industries, 23 April

A PROFILE OF THE EASTERN EUROPEAN PAINT INDUSTRY

IRL is pleased to announce the publication of a new long-awaited edition of its title, A Profile of

the Eastern European Paint Industry. This report has been developed and expanded upon from

IRL’s previous studies.

The report provides overviews and forecasts for ten national paint and coatings markets across the

continent from Eastern Europe to the countries of Black Sea region, namely Armenia, Belarus,

Estonia, Georgia, Latvia, Lithuania, Moldova, Russia, Turkey and the Ukraine. It focuses on and

provides market insight into nine mainstream coating sectors.

Available now from IRL...

9

Paint demand across these countries has been evaluated at 2.7 million tonnes, and with average

market growth of 5.8% p.a., this can be expected to reach more than 3.6 million tonnes by the end

of 2016. Very simple drivers underpin growth in coatings demand across the region, including:

• Growth in construction markets

• Growth in infrastructure investment

• Rising salaries and greater disposable incomes

• Growing industrial output

Eastern European Market for Paints & Coatings, 2011 (Tonnes)

Segment Market Size (Tonnes)

Architectural Paints 1,599,100

General Industrial Coatings 461,100

Protective Coatings 169,400

Marine Coatings 50,000

Wood Coatings 205,250

Automotive OEM Coatings 81,000

Automotive Refinish Coatings 44,850

Plastic Coatings 24,050

Powder Coatings 93,950

Total 2,728,700

The regional market is now dominated by two economies, Russia and Turkey, which together

represent about 2.3 million tonnes of paints and coatings consumption for 2011. This translates into

per capita paint use of 10.3 kg/head in Russia (population almost 143 million) and a similar per

capita paint consumption of 10.2 kg/head in Turkey (population 78.8 million).

Turkey is enjoying the highest market growth rate. Key contributors to the future success of the

Turkish market are growth in construction, maintenance and refurbishment projects carried out in

the country, the strong position of the local powder coatings industry, growth in end-use industries

such as automotive, electronics and home appliances, and expected growing demand for water-

borne and low-VOC paints due to the accession of the TSE (Turkish standards body) into the CEN.

Russia, in the meantime, shows average growth in the architectural coatings market. Growing

interest of customers in health, safety and environmental matters is one of the key drivers behind

the growing popularity of firstly low-VOC and then water-based paints. However, the low

quality/economy architectural paint segment still holds the largest market share. Industrial coatings

are poised for higher than average growth over the forecast period, with the highest growth

expected in the sectors of marine paints and coatings for bridges and tunnels. One of the key mid-

term marketing opportunities for the Russian coatings market will be the hosting of the Winter

Olympic Games by the Russian city of Sochi in 2014.

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Eastern European Markets for Paints & Coatings, 2011 & 2016: Leading Markets

Source: IRL

Other sizeable markets include the Ukraine and Belarus. The Ukrainian paint demand is placed at

about 230,000 tonnes, and the Belarusian paint demand is around half of this.

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Eastern European Markets for Paints & Coatings, 2011 & 2016: excl. Leading Markets

Source: IRL

In some countries in Eastern Europe architectural coatings have taken on such significance that there

are sometimes circumstances where industrial coatings are being neglected. As a result, many

accounts for the supply of industrial coatings are now being fulfilled by exports from multinational

companies in the west and are often sustained through importers and distributors.

In the overall Eastern European market, the best opportunities for the marketing of industrial

coatings have been identified in the areas of powder, marine and automotive OEM coatings.

‘A Profile of the Eastern European Paint Industry’ is available now from IRL. It includes market

data for 2011 and forecasts to 2016 for each country included in the report, market splits into nine

coating segments, and further splits of each market segment by chemistry and technology. It also

12

outlines the key industry participants in almost every country and shows key trends in the

architectural and industrial sectors.

Sections of the report, priced individually, are available to purchase online at our website:

www.informationresearch.co.uk

For more information on this and our other reports, please contact Cathy Galbraith at:

cgalbraith@brggroup.com

Coating Update by Email (CUBE) is a free weekly news digest of the latest business news and events in the global paints and coatings industry, and is published in-house by specialist coatings research company IRL.

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CUBE © IRL 2013