Coatings Word May 2012

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    http://coatingsworld.com/
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    5/52May 2012 www.coatingsworld.com Coatings World | 5

    May 2012 Vol. 17, No. 5 Table of Contents

    COATINGSWORLD Coatings World (ISSN 152-711-29) is published monthly by Rodman Publications, Inc., 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: (201) 825-2552; Fax (201) 825-0553. Periodical postage paid at Ramsey, NJ 07446 USA and additional mailing offices. Publications Mail Agreement No: 40028970. Return Undeliverable Canadian Addresses to Circulation Dept. PO Box1051, Fort Erie, On L2A 6C7, [email protected]: Send address changes to: [email protected];(201) 825 2552 ext. 374; Fax: (201) 825 6582. Free subscriptions to Coatings

    World are available to qualified individuals. Others are as follows: U.S. one year $75; two years $105. Outside U.S. and overseas: one year $95 (U.S.), two years $145 (U.S.), foreign airmail: one year $195(U.S.). 5% GST required on Canadian orders. GST #131559148. The publisher reserves the right to determine qualification of free subscriptions. Printed in the USA. Coatings World is used under licensefrom Whitford Worldwide. COATINGSWORLDScirculation is audited by BPA International.

    COLUMNS

    International Coatings Scene ....................................26Europe Centralizing Deco Paint Operations To Maximize Efficiencies

    Business Corner ..........................................................28US-based Multinationals Continue To Hire Offshore

    IPaint ............................................................................30The Trade Secret Dance: Lessons From The Litigation Trenches

    ADVERTISINGSECTIONSClassified Ads ..............................................................48

    Advertising Index........................................................49

    36 Benjamin Moore HUE Awards

    41 PPG Launches Solar Glass Coating DEPARTMENTSEditors Page ................................6As We Go To Press ......................8

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

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

    Patents ......................................18

    Financial News ..........................22

    Price Increases............................23

    Market Reports ........................24

    New Products ............................25

    Industry News ..........................42

    Suppliers Corner........................45

    People ........................................46

    Meetings ....................................47

    Final Coat ..................................50

    41

    32Marine Coatings

    36

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    More Than Paint

    6 | Coatings World www.coatingsworld.com May 2012

    Editors

    Page

    A Rodman Publication70 Hilltop Road Ramsey, NJ 07446 USA

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

    EDITOR

    Tim Wright [email protected] PRESIDENT/EDITORIAL DIRECTOR

    Tom Branna [email protected] EDITOR

    Kerry Pianoforte [email protected] DEPARTMENT

    Michael Del Purgatorio [email protected] CORRESPONDENTS

    Sean Milmo (Europe)Charles W. Thurston (Latin America/Americas)

    CONTRIBUTING EDITORSPhil Phillips

    EDITORIAL ADVISORY BOARDJim Berry (Berry Environmental)

    Joseph Cristiano (consultant)Thomas Frauman (consultant)

    Joseph Prane (consultant)Isadore Rubin (consultant)

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

    RODMAN PUBLISHING

    PRESIDENTRodman J. Zilenziger, Jr. [email protected]

    EXECUTIVE VICE PRESIDENTMatthew J. Montgomery

    [email protected] PUBLISHER / ADVERTISING SALES

    Dale Pritchett [email protected] SALES (U.S.)

    Kim Clement Rafferty [email protected] SALES (Europe)

    Baudry Boisseau Associates27 Rue J. Lebeau- B-1000, Brussels, Belgium

    Tel.: 32-(0)2-513-06-47 Fax: 32-(0)[email protected]

    ADVERTISINGSALES (HongKong,Taiwan& China)Ringier Trade Publishing Ltd

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    [email protected] MANAGER

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    Richard DeVoto [email protected] DIRECTOR

    Paul Simansky [email protected] MASTER

    Jason Lawton [email protected]

    COATINGS WORLDScirculation is audited by BPA Worldwide.

    On the menu for this months feature stories are three vastly different segments

    of the coatings industry: marine coatings, color design in the interior deco seg-ment and the small but growing eld of solar coatings.

    Marine paints cover a broad range of applications and are charged with

    protecting vessels and structures in harsh and diverse environmental condi-

    tions. They must protect and function under aggressive and extreme situa-

    tions. Think chemical tank linings and offshore oilrigs.

    Ships account for the largest market distribution of marine coatings and

    painting a ship hull in dry dock is a massive undertaking. Basically, anti-foul-

    ing paint is applied on a vessel to prevent the accumulation of barnacles, mol-

    lusks, seaweed, slime and other drags on a ships movement.

    Ship owners look to their paint suppliers to cut costs with coatings that

    provide smoother, slicker vessel bottoms that can slice through the water at a

    faster speed and slower rate of fuel consumption.Beyond paint, one of the most important issues in marine coatings is being

    able to measure the effect of anti-fouling on the performance of the hull and,

    therefore, on the fuel performance and energy efciency of the vessel.

    Coatings companies are now putting a lot of effort into making it possible

    to measure with a high degree of accuracy and reliability the effect of a par-

    ticular coating on the fuel consumption of a particular vessel.

    Turn to page32 to read about coatings that offer cleaner, greener, faster

    boats with more environmentally friendly materials for hulls.

    If in marine coatings paint makers are really selling performance, not paint,

    back on land in the interior architectural coatings segment, color is often the

    major differentiator and selling point.

    As such each year paint rms invest a lot of time and research developingcolor trend forecasts that go on display to sway DIY consumers at retail.

    Benjamin Moore is one of those companies perched at the forefront of color

    design. To determine color trends, Benjamin Moores North American design

    team meets annually to discuss color forecast and trend research conducted

    throughout the year. Our perspectives are individually shaped by social, politi-

    cal, economic shifts and how they may translate to the world of design, says Ben-

    jamin Moores senior interior designer, Sonu Mathew.

    Each year Benjamin Moore hosts a celebration of color the HUE Awards

    presented for exceptional use of color in architecture and interior design.

    Turn to page36to read about this years winners, a truly distinguished

    group of design professionals who are all very passionate about the power of

    color. As Mathews says, Color is the soul of design.In this issue for the rst time Coatings World has begun to track the niche

    market for solar coatings, an area that has not popped up much on the radar.

    On page41 Charles Thurston reports on this truly high-tech coatings niche

    and PPGs recently launched anti-reective coating for glass panels used in

    solar modules, which the company says increases the amount of electricity

    produced by three to ve percent. The company spent nearly four years de-

    veloping the coatings and also recently formed a Solar Performance Group to

    focus solely on this burgeoning market.

    [email protected]

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    In the rst quarter Sherwin-Williams net

    sales increased $280.8 million, or 15.1

    percent, to $2.14 billion in the due pri-

    marily to higher paint sales volume and

    selling price increases. Net sales in the

    Paint Stores Group increased 20.9 percent

    to $1.12 billion in the quarter. Paint Stores

    Group segment prot increased $43.9

    million to $112.7 million in the quarter

    from $68.9 million last year. Net sales of

    the Consumer Group increased 8.6 per-

    cent to $320.4 million and segment protincreased to $55.3 million in the quarter

    from $41.1 million last year. The Global

    Finishes Groups net sales stated in U.S.

    dollars increased 11 percent to $483.1

    million. Segment prot increased in the

    quarter to $28.6 million from $19.4 mil-

    lion last year. The Latin America Coatings

    Groups net sales increased 7.1 percent to

    $208.6 million while segment prot in-

    creased to $19.9 million in the quarter

    from $17.4 million last year.

    We are pleased to report record salesand earnings per share in the rst quarter

    on strong sales and operating results of

    our Paint Stores Group and operating

    prot increases across the remaining oper-

    ating segments, said Sherwins chairman

    and chief executive, Christopher Connor.

    All our operating segments grew sales

    volume and operating prot as a percent

    to sales in the quarter. The Paint Stores

    Group volume growth was strong across

    all end market segments. Our Consumer

    Group improved their operating resultsthrough disciplined cost control and sell-

    ing price increases. Our Global Finishes

    and Latin America Coatings Groups in-

    creased paint sales volume and continued

    improving operating prot as a percent to

    sales. We continued to invest in our busi-

    ness by opening five net new locations

    in the Paint Stores Group. For the year,

    we expect our Paint Stores Group to

    open 60 to 65 new stores.

    In the second quarter of 2012, Sher-

    win-Williams anticipates its consolidatednet sales will increase ten to fifteen per-

    cent compared to the second quarter of

    2011 said Connar. For the full year

    2012, it expects consolidated net sales to

    increase above 2011 levels by a high sin-

    gle digit-to-low-teens percentage.

    Carboline to open facility inNev. for industrial coatingsCarboline Company has acquired an ex-

    isting 184,500-square-foot building in

    Dayton, Nev., for manufacturing and

    distributing high performance industrial

    coatings. The facility could create up to

    60 new jobs over the next several years,

    once it reaches full production. Carbo-

    line expects to invest several million dol-

    lars in modifications to the building to

    accommodate manufacturing and com-

    ply with all regulatory codes. The facil-

    ity is slated for production by September

    of 2012. CW

    8 | Coatings World www.coatingsworld.com May 2012

    Sherwin-Williams reports 15percentraise in first quarter sales

    AsWeGoToPress

    Index to Companies

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

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

    Subsidiaries are indexed under their own names.

    Advanced Polymer Coatings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

    AkzoNobel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,46

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

    Benjamin Moore.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Carboline Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

    Citadel Polyurea Coatings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

    Coat N Cool. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

    Color Wheel Paint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Dunn-Edwards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Dur-A-Flex. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    International Paint. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

    Jotun.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

    Loparex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Plascore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    PPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,22,23,41

    Precision Coating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Rolith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Rust-Oleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

    Sansin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

    Seal-Krete. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

    Shawcor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

    Sherwin Williams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,32

    U.S. Paint. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

    Valspar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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    U.S. Paint is expanding its line of origi-

    nal OEM coatings offered for the mo-

    torcycle aftermarket to include 11 colors

    manufactured for Bombardier Recre-

    ational Products line of Can-Am Spyder

    vehicles. Each paint product is available

    with its mixing and application guide

    and the proper catalyst, reducer, clear

    coat and primer.

    Were not a typical aftermarket

    paint supplier, said Ryan Luter, busi-

    ness development manager for U.S.

    Paint. Our products are not reproduc-

    tions of the coatings used by the OEMs,

    they are the original paint systems used

    by the manufacturer.

    Designed for the factory, yet suitable

    and effective for those customizing or re-

    pairing Spyders, the colors can be pur-

    chased directly from U.S. Paint in either

    gallon or quart sized containers. U.S. Paint

    is currently manufacturing and offering

    the following 11 colors:

    Vegas White Pearl: AJ8144/AJ8145

    Full Moon Silver Metallic: AJ1200

    Magnesium Metallic: AJ1216

    Lava Bronze Metallic: AJ6110

    Low Gloss Phantom Black: AJ2041

    (with low gloss clear AF3055)

    High Gloss Phantom Black: AJ2041

    (with high gloss clear J3507)

    Timeless Black Metallic: AJ2072

    Orbital Blue Metallic: AJ5145

    Newton Green Metallic: AJ4093

    (low gloss clear AF3055)

    Viper Red: AJ7130

    Alloy Orange Metallic: AJ9105 (low

    gloss clear AF3055)

    The aftermarket paint

    program we originally set up

    to service Honda motorcycle

    owners was so well received

    that it was easy to justify ex-

    panding the program to

    other paint systems we man-

    ufacture, said Luter. The

    growing popularity of the

    BRP Spyder and demand for

    custom pieces showed that

    these owners are not much

    different than Honda motor-

    cycle owners in their desire

    to get parts to match their

    factory nish.

    U.S. Paint was founded

    in 1931 and has maintained longstand-

    ing partnerships as a paint and coatings

    supplier for the motorcycle and power

    sports industries. The company is head-

    quartered in St. Louis, MO, and manu-

    factures and sells OEM approved

    motorcycle paint in smaller quantities for

    aftermarket applications.

    BASF Coatings wins theDaimler Supplier Award 2011

    in the category Trucks andBuses, ExteriorBASF Coatings has won Daimler AGs

    Daimler Supplier Award 2011 in the cat-

    egory, Trucks and Buses, Exterior. The

    company was one of 13 suppliers to re-

    ceive the award in Stuttgart, Germany.

    Once a year, the Daimler Supplier Award

    is given to recognize excellent perform-

    ance with respect to quality, cost, delivery

    reliability and innovation.

    Dr. Alexander Haunschild, head of au-

    tomotive OEM coatings Europe, acceptedthe award for BASF. The award was pre-

    sented by Andreas Renschler, head of

    Daimler trucks division.

    BASF Coatings is a long-standing part-

    ner of Daimler for passenger cars, as well

    as buses and trucks, in all regions. In ad-

    dition to the complete product portfolio,

    10 | Coatings World www.coatingsworld.com May 2012

    U.S. Paint expands line offactory certifiedmotorcyclepaint

    Fresh

    Paint

    BASF award winners (from left): Alexander Haunschild,

    head of automotive OEM coatings Europe BASF; Andreas

    Renschler, head of Daimler trucks division; Holger Steindorf,

    vice president procurement Daimler trucks and buses; Guis-

    card Glck, BASF Coatings truck and bus.

    New line includes 11 colors used on Can-Am Spyder models from 2008 to 2012.

    http://www.coatingsworld.com/http://www.coatingsworld.com/
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    ranging from e-coat to clearcoat,

    the company offers a wide range

    of services. In the area of buses

    and trucks, BASF Coatings sup-

    plies Daimler plants in all regions.

    The presentation of the Daimler Sup-plier Awards took place as part of the

    Daimler Key Supplier Meeting at Mer-

    cedes-Benz in Stuttgart. Around 450 rep-

    resentatives of the most important

    Daimler suppliers and 200 representatives

    of Daimler management participated in

    the event.

    Rolith receives $5 millionfunding to develop industrial-scale nanostructured coatings

    Rolith, Inc., a developer of advancednanostructured coatings and devices, has

    received $5 million in Series A funding

    from DFJ VTB Capital Aurora and AGC

    America Inc.

    Roliths nanostructured coatings are

    used in the renewable energy, green build-

    ing and consumer electronics markets,

    and the company will utilize the $5 mil-

    lion investment to step up business devel-

    opment in an effort to address the current

    market need for industrial-scale nanos-

    tructured coatings. The investments willalso be used to expand the engineering

    team and further research and develop-

    ment the company said.

    Rolith coatings function by a propri-

    etary nanolithography system and was

    formed by Dr. Boris Kobrin, Prof. Mark

    Brongersma and Julian Zegelman in

    2008.

    We are excited to lead the Series A in-

    vestment in Rolith, Inc. We believe that

    the companys proprietary large-scale

    nanocoating method has great potential to

    become the new standard for a vast vari-

    ety of industrial and consumer applica-

    tions, said Aidar Kaliev, global head of

    venture capital at VTB Capital. The team

    has an impressive track-record with sev-

    eral nanotech start-ups, combines Russian

    and US scientic backgrounds and has the

    necessary skills and experience to lead the

    company to success.

    We are very fortunate to have the

    support of worlds leading glass producer,

    AGC (Asahi Glass Company) Group, and

    DFJ VTB Capital Aurora, a highly rep-

    utable nanotechnology investor associated

    with one of the major Russias banking

    groups, VTB Group, said Boris Kobrin,

    founder and CEO of Rolith. This invest-

    ment will allow us to scale up our nanos-

    tructuring technology to substrate areaslarger than what is offered by any com-

    petitors and demonstrate feasibility of the

    rst few of our nanostructured coatings.

    PPG teams with BrandMusclePPG has partnered with BrandMuscle, a

    provider of web-based local marketing au-

    tomation software, to introduce PPG

    Marketing on Demand, a suite of online

    tools and services to help distributors and

    collision repair facilities produce cus-

    tomized marketing and advertising mate-rials. PPG Marketing on Demand is

    available to all PPG distributors and col-

    lision repair centers in North America.

    The new system provides a resource

    distributors and body shops can access to

    develop a variety of promotional pieces to

    support their local businesses. At the PPG

    Marketing on Demand website, registered

    users can create professional-quality, on-

    line business pages and display ads, web-

    sites, email campaigns, print ads,

    brochures, and door and mirror hangers.PPG is also providing distributors and

    collision centers with direct access to mar-

    keting professionals and media specialists

    who can assist with tasks as complicated

    as creating a marketing plan or as simple

    as negotiating the best rate for a local dis-

    play ad.

    Color Wheel Paint expands intoNorth CarolinaColor Wheel Paint, a manufacturer of

    paint and industrial coatings and part of

    the global Comex Group, has expaned

    into North Carolina which marks signif-

    icant growth and geographic expansion

    for the Florida-based brand. Color

    Wheel Paint offers paints such as Flex

    Lox, Optima and Tropicoat; specialty

    lines such as UltraCrete and Texturi; and

    a complete line of industrial coatings. All

    Color Wheel products are designed and

    tested for durability in the hot, humid

    climate of the Southeast region of the

    United States where paint failure due to

    mildew and fading are major concerns.

    The expansion was made official on

    April 2, 2012 with the opening of a com-

    pany-owned Color Wheel Paint store in

    Raleigh, N.C. The company said it has

    seen a growing demand for its paint

    products in this market as well as en-couraging overall economic growth.

    Dur-A-Flex resinous floorcoating manufacturer earnsnational certificationOne of Dur-A-Flexs oor systems has

    been certied by the National Floor Safety

    Institute (NFSI) for slip resistance, mak-

    ing the company the rst resinous oor

    coating manufacturer to receive such a de-

    termination by the nationally-recognized

    agency said the company.The NFSI provided Dur-A-Flex with

    the means to have their Dur-A-Quartz

    with Armor Top epoxy ooring system in-

    dependently evaluated for slip resistance.

    Once the system passed the agencys eval-

    uations, it was placed on the NFSIs Cer-

    tied Products list, which is accessible by

    facility owners looking to make more in-

    formed buying decisions.

    According to the NFSI, walking sur-

    faces are most likely to be identied as the

    primary cause of a slip, trip-and-fall acci-dent and comprise 55 percent of all falls.

    Comprised of more than ten years of

    researching various test methods by which

    walkway materials, coatings, chemical

    cleaning agents and treatments can be

    evaluated for their degree of slip resist-

    ance, the NFSI has a comprehensive eval-

    uation process. In order for Dur-A-Flexs

    Dur-A-Quartz with Armor Top to achieve

    the NFSIs certication status, the ooring

    system had to pass a laboratory phase and

    a eld test. The epoxy system passed both

    evaluations and exceeded the minimum

    accepted scores earning a high traction

    determination by the NFSI.

    ShawCor receives contract toprovide pipeline coatings forthe Ichthys LNG ProjectShawCor Ltd.s pipecoating division,

    Bredero Shaw, has received a contract

    with a value in excess of US$400 million

    to provide pipeline coatings and related

    products and services for the gas export

    pipeline on the Ichthys LNG Project.

    12 | Coatings World www.coatingsworld.com May 2012

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    Paint

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    This contract was signed with

    Mitsui & Co., Ltd.

    The Ichthys LNG Project is a

    joint venture between INPEX

    (76 percent, the operator) and Total (24

    percent). Gas from the Ichthys Field, in

    the Browse Basin approximately 200 kilo-

    meters offshore Western Australia, will

    undergo preliminary processing offshore

    to remove water and extract condensate.

    The 889 kilometer Ichthys gas export

    pipeline will transport production from

    the offshore central processing facility

    through a subsea pipeline to the onshore

    LNG facility to be located at Blaydin

    Point, Darwin, Northern Australia. The

    Ichthys LNG Project is expected to pro-

    duce 8.4 million tons of LNG and 1.6

    million tons of LPG per annum, along

    with approximately 100,000 barrels of

    condensate per day at peak.

    The contract involves coating 889

    kilometers of 42-inch pipe that will be

    protected with Asphalt Enamel coating,

    SureFlo internal coating and HeviCote

    concrete weight coating. In addition

    Bredero Shaw has also received a contract

    for anode procurement and installation as

    well as custom coating. Work will begin

    during the third quarter of 2012. The

    company will execute the work at

    Bredero Shaws facilities in Kabil, In-

    donesia and Kuantan, Malaysia. The

    Kabil and Kuantan facilities are full serv-

    ice coating plants that were built speci-

    cally to process large, complex projects in

    the Asia Pacic region.

    Loparex to expand theirEuropean operationsThe Loparex Group are investing in

    their European operation for release

    liner production. The Apeldoorn pro-

    duction facility in The Netherlands will

    be equipped with an extensive capacity

    and capability expansion by the third

    quarter of this year. The additional ca-

    pacity and product capabilities in Eu-

    rope will complement Loparex existing

    manufacturing facilities in North Amer-

    ica, China, India and Thailand.

    The expansion project includes the in-

    stallation of a new state-of-the-art, high-

    speed silicone coating line, as well as

    upgrades to existing silicone coating lines

    and the poly-coating extrusion line that

    will enhance the facilitys ability to deliver

    new-generation products.

    Todays converting and end-use mar-

    kets are demanding higher levels of per-

    formance, versatility and efciencies from

    release liners, said Theo Wilting, manag-

    ing director of Loparex Europe. Every

    14 | Coatings World www.coatingsworld.com May 2012

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    Paint

    Plascore to commercialize 'green' protective coatings developed by EMU researchers

    An Eastern Michigan University professor has partnered with a Michigan-based company to help commercialize green pro-

    tective coating developed by his research team at the university.

    Vijay Mannari, along with a group of students and other researchers at EMUs Coatings Research Institute, located in the Col-

    lege of Technology, have focused their efforts on developing sustainable polymers and coatings that use renewable sources.

    The results of their work over the past seven years are six new patent-pending inventions. The coatings developed are designed

    to protect metal, wood, plastic and building materials, and are used on industrial products within the automobile, aerospace,

    transportation, packaging and building industries.

    Development of green coating materials and technologies is more important than ever before, and the Coatings Research

    Institute has the unique capability to help the state and the country, through the innovation and commercialization of its in-house

    research, said Mannari.

    One of the products Mannaris team developed is a chromate-free, anti-corrosive pretreatment for metals, a protective coat-

    ing that inhibits rust.

    The product is an innovative system based on Sol-Gel technology that is much safer than existing products, yet comparable

    in performance, said Mannari.

    This coating has the potential of replacing materials currently on the market that are based on hexavalent chromium, a

    proven carcinogen.

    The team was recently awarded two grants by the Michigan Initiative for Innovation and Entrepreneurship, totaling $125,000,

    to help fund the commercialization of Mannaris inventions.

    Mannari, along with Philip Rufe, a technology commercialization coordinator at EMU, will lead the initiative.

    Mannaris group will take one of its coating innovations to the next level through a partnership with Plascore, Inc., a Michi-

    gan company that is eager to embrace sustainable green technologies by offering safer and greener products to its customers.

    Plascore, Inc., with headquarters in Zeeland, Mich., is a global manufacturer of honeycomb core and composite structures used

    in aerospace, marine, military, safety and transportation industries that utilize coatings on many of their products.

    We are very excited about our partnership with Plascore, said Mannari. It will not only help bring new and safer greener

    products to the market, but will also help propel Michigans economy and provide great experience to our students.

    Other green technologies Mannaris team is developing include UV-curable coatings made from soybean oil.

    To learn more about the Coatings Research Institute and the College of Technology at Eastern Michigan University, visit them

    online atwww.emich.edu/cri/index.html.

    http://www.coatingsworld.com/http://www.emich.edu/cri/index.htmlhttp://www.coatingsworld.com/http://www.emich.edu/cri/index.html
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    segment whether it is pressure-

    sensitive graphic arts, specialty

    tapes, or medical disposables has

    its own particular requirements,

    and new markets outside the traditional

    pressure-sensitive applications are devel-

    oping fast.

    This is the fourth major investment in

    capacity expansion undertaken by the Lo-

    parex Group in recent years. The Kaygee-

    Loparex joint venture in India installed a

    new silicone coating line and slitters in

    2009. The groups capacity at its

    Guangzhou, China, facility was increased

    with a new silicone coating line in early

    2011. In the third quarter of 2011, Lo-

    parex announced a new-build state-of-

    the-art production plant in Thailand,

    which will be fully operational by the end

    of 2012.

    Dunn-Edwards Paints winsManufacturing Leadership 100AwardDunn-Edwards recently received the

    2012 Manufacturing Leadership 100

    award for Operational Excellence, by

    Manufacturing Executive. The com-

    panys new LEED Gold-certified manu-

    facturing facility was honored for its

    innovation and superiority in opera-

    tional excellence for undertaking a proj-

    ect that transformed production

    processes and systems with an eye to-

    ward reducing costs and enhancing

    agility. Other winners in this category in-

    clude IBM, Ford Motor Company,

    LOral USA Inc., Michelin North Amer-

    ica and Pella Corp.

    Located in Phoenix, Ariz., United

    States, Dunn-Edwards 336,000-sq.-ft. fa-

    cility was custom designed to be the

    greenest and most efcient in the coatings

    industry said the company.

    We have incorporated innovative, en-

    ergy-efcient equipment and protocols,

    such as unique high-efciency process

    equipment with integrated dust-suppres-

    sion technology, so that no particulates

    are emitted to ambient air, and advanced

    wastewater recycling techniques to con-

    serve water, said Karl Altergott, CEO,

    Dunn-Edwards. Our systems are classi-

    ed as ultra-low discharge, meaning that

    waste generation is greatly minimized.

    Now, with the new plant in full op-

    eration, we have greatly increased our

    capacity and are able to produce paint

    for third parties, said Mark Alling, vice

    president of manufacturing, Dunn-Ed-

    wards. This includes existing paint

    companies, private label brands and li-

    censed product.

    Services offered include formulation

    and technical development, end-to-end

    commercialization process, inventory and

    logistic services, and custom labeling

    Because our facility is so modern

    and efficient, we are able to produce

    paint faster and more consistently,

    Alling said. Our proven quality control

    measures ensure a superior product, and

    we have the flexibility to operate with

    customers challenges, such as short lead

    times and small batches.

    Precision Coating acquireshydrophilic coating providerfor medical applicationsPrecision Coating Co., Inc. has acquired a

    controlling interest in Medi-Solve Coat-

    ings, LLC of Natick, Mass. Medi-Solve

    Coatings is a hydrophilic coating provider

    focusing on medical device applications.

    Medi-Solve Coatings adds formulation

    and application experience in the medical

    device arena for Precision Coating. The

    addition of hydrophilic coating capabili-

    ties to Precision Coatings offerings of u-

    oropolymer coatings will help meet a

    growing need of its medical device cus-

    tomers for coating formulation and tech-

    nical expertise said the company.

    I am pleased that we are able to offer

    our medical device customers a broader

    range of dry and wet lubricious coating

    technologies that are critical to the end

    performance of so many devices, said

    Robert DeAngelis, president of Precision

    Coating. Moreover, the experience of the

    Medi-Solve Coatings team will be ex-

    tremely valuable as we continue to ex-

    pand our coating capabilities.

    Coat N Cool products earnEnergy Star ratingFour proprietary cool roof products man-

    ufactured by Orange County, Calif.-based

    CoatNCool have earned an Energy Star

    rating. Marketed under the CoatNCool

    brand name, CoatNCool is a reective

    coating that is available in a variety of col-

    ors. The products earning the Energy Star

    rating include four colors: Basecoat

    White, Topcoat Antique White, Topcoat

    Butter Cream and Topcoat Siltstone.

    Energy Star qualied cool roof products

    lower roof surface temperature, decreasing

    the amount of heat transferred into a build-

    ing and reducing air conditioning costs.Ac-

    16 | Coatings World www.coatingsworld.com May 2012

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    Paint

    http://www.coatingsworld.com/mailto:[email protected]://www.blairgowrieassociates.com/http://www.coatingsworld.com/
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    cording to CoatNCool statistics, a cool roof can lower interior

    temperatures of a commercial or industrial building by eight to 12

    degrees during the hottest four hours of a summer day

    noon to four in the afternoonand can cut peak cooling

    demand by 10-15 percent.

    Sponsored by the U.S. Environmental Protection

    Agency, Energy Star promotes use of energy efcient products in

    all aspects of energy use from high-rise buildings to HVAC sys-tems. The primary mission of Energy Star is to provide unbiased

    information that helps Americans identify reliable, cost-effective,

    energy-saving solutions that protect the environment by reduc-

    ing greenhouse gas (GHG) emissions.

    Through 2010, more than 20,000 organizations have part-

    nered with the EPA, achieving environmental and financial

    benefits. Americans, with the help ofEnergy Star, prevented

    170 million metric tons of GHG emissions from entering the

    atmosphere in 2010 equivalent to the annual emissions from

    33 million vehiclesand saved about $18 billion on their util-

    ity bills.

    CoatNCool is an architectural coating specially engineered toreect sun light in the UV, IR and visible spectrum. It was engi-

    neered through the use of waterborne epoxy technology and com-

    plex inorganic compounded pigments (CICPs).These CICPs have

    been nely crushed and placed in a liquid dispersion in order to

    easily mix with the waterborne epoxy. The CICPs give

    CoatNCool its high reectivity and high fade resistance and pro-

    vide excellent adhesion and durability the company said. CW

    Fresh

    Paint

    www.eurocoat-expo.com

    Un vnement organis par :

    International Exhibition & CongressFor the paint, printing ink, varnish, glue and adhesive industries

    2012

    Contact: Cyril LADET [email protected]

    Phone: +33 (0)1 77 92 96 84 - Fax: +33 (0)1 77 92 98 21

    PALACIO DE CONGRESOS FIRA BARCELONA

    Barcelona, Spain

    02 04October 2012

    Foster your customers portfolio

    Enhance your visibility

    Develop your distribution network

    Showcase your innovations

    An event co-organised by:

    Coat'N'Cool reflective coating.

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    U.S. 8,110,624 B2

    The Valspar Corporation has obtained a

    patent for a low-VOC paint comprised of

    a latex polymer comprised of a surfactant

    and polymer particles comprised of a ho-

    mopolymer or copolymer including at

    least one of an acrylate or a methacrylate;

    a pigment; and a coalescent; wherein at

    least 1% by weight, based on polymer

    solids, of the paint is comprised of a coa-

    lescent having the formula:

    R1(C(O)XO)nR2 whereinR1 is an aliphatic hydrocarbyl moiety

    and is comprised of 3 to 24 carbon

    atoms, X is a divalent organic group com-

    prising oxygen atoms and 2 to 8 carbon

    atoms, n is 1, and R2 is an organic group

    comprised of 3 to 24 carbon atoms and

    one carbonyl group; with the proviso that

    the coalescent does not include any

    aliphatic unsaturated carbon-carbon

    bonds; and wherein the coalescent has a

    volatile organic content of less than ap-

    proximately 15% weight is nonreactive inthe paint, and is dispersible in the paint

    to form a uniform mixture.

    PPG Industries patents foodcans coated with an acrylicpolymer compositionU.S. 7,858,162 B2

    PPG Industries has been granted a patent

    for a food can coated at least in part on

    the interior with a composition comprised

    of a greater than 7% weight, based on

    total solids weight, of an acrylic polymerhaving a weight average molecular weight

    of greater than or equal to 60,000 and an

    acid value of

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    www.tego.de

    http://www.tego.us/
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    sor product and a casing sur-

    rounding the core, wherein the

    casing is comprised of at least

    one encapsulation material cho-

    sen from homo- and/or copolymers of

    methacrylic acid and/or of methacrylic

    acid esters (methacrylates), and/or homo-

    and/or copolymers of vinyl acetate, and at

    least one release agent.

    Essilor patents photochromiccoatingU.S. 8,110,127 B2

    Essilor International has been granted a

    patent for a thermally curable pho-

    tochromic coating composition com-

    prised of a mixture having two different

    monomers, where the monomers are se-

    lected from the group consisting of

    monofunctional (meth)acrylate; difunc-

    tional (meth)acrylate; a combination of

    a monofunctional (meth)acrylate and a

    difunctional (meth)acrylate; multifunc-

    tional (meth)acrylate; and aliphatic ure-

    thane diacrylate; a metal salt selected

    from the group consisting of a metal

    ester of 2-naphthoic acid, a metal ester

    of 2-ethylhexanoic acid, a metal ester of

    octoate material, and combinations

    thereof; a hindered amine light stabilizer

    (HALS); an antioxidant; an initiator se-

    lected from the group consisting of t-

    amylperoxy-2-ethylhexyl carbonate

    organic peroxide and t-butylperoxy-2-

    ethylhexylcarbonate; and a pho-

    tochromic dye.

    LG Chem patents UV-curableantireflective coatingU.S. 8,110,249 B2

    LG Chem, Ltd. has obtained a patent for

    an antireective coating composition com-

    prised of a photopolymerizable acrylate

    monomer (C1); a particulate metal uo-

    ride (C2) with a refractive index of 1.40 or

    less; a photopolymerization initiator (C3);

    and at least one liquid dispersion-enhanc-

    ing chelating agent (C4) selected from the

    group consisting of Mg(CF3COO)2,

    Na(CF3COO), K(CF3COO),

    Ca(CF3COO)2, Mg(CF2COCHCOCF3)2

    and Na(CF2COCHCOCF3).

    H.B. Fuller patents hot meltpressure sensitive adhesivethat contains vegetable waxU.S. 8,110,623 B2

    H.B. Fuller Company has received a

    patent for a hot melt pressure-sensitive

    adhesive composition comprised of a

    thermoplastic elastomer comprised of a

    block copolymer comprised of at least

    one A block comprised of polyvinyl aro-

    matic compound and at least one B

    block comprised of an elastomeric un-

    hydrogenated conjugated diene, hydro-

    genated conjugated diene or a

    combination thereof; tackifying agent;

    plasticizer oil; and from at least 5% by

    weight to approximately 25% by weight

    vegetable wax the pressure-sensitive ad-

    hesive composition exhibiting an onset

    of crystallization from melt of no greater

    than approximately 50 C.

    Coated article supportingphotocatalytic layer and UV-

    reflecting underlayerU.S. 8,110,297 B2

    Guardian Industries Corp. has been

    awarded a patent for a coated article

    comprised of a substrate supporting a

    coating. The coating is comprised of a

    UV-reflecting coating disposed, directly

    or indirectly, on the substrate, wherein

    the UV-reflecting coating is comprised

    of at least 0.1% by weight aluminum

    oxide, and at least 0.1% by weight ma-

    terial having a refractive index higher

    than the aluminum oxide, and wherein

    the material having the refractive index

    higher than the aluminum oxide in-

    cludes at least one: zirconium oxide, yt-

    trium oxide, hafnium oxide, and oxides

    of rare earth metals; and a photocat-

    alytic layer disposed over the UV-re-

    flecting coating so that at least some of

    any UV light that is not initially used in

    the activation of the photocatalytic

    layer and otherwise would pass into the

    substrate is reflected back towards the

    photocatalytic layer by the UV-reflect-

    ing coating. CW

    20 | Coatings World www.coatingsworld.com May 2012

    Patents

    http://www.coatingsworld.com/http://www.coatingsworld.com/
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    mailto:[email protected]://www.chinacoat.net/
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    AkzoNobel reported a six percent increase in rst quarter revenue

    compared with the same period in 2011, mainly driven by pricing

    actions to offset higher raw material costs the company said. The

    EBITDA for the quarter was three percent lower at 423 million,

    due to weaker end markets and cost ination the company said.

    Overall raw material prices remain a challenge for paint mak-

    ers. Looking forward, the company expects the higher oil and

    TiO2 prices on average to have an inationary impact.

    The decorative paints unit recorded a revenue increase of four

    percent in the rst quarter, however, lower volumes impacted

    earnings, particularly in North America. Restructuring and cost

    reduction actions are underway in Europe and North America tooffset weaker demand.

    In the performance coatings unit, revenue increased 11 percent

    and EBITDA was up 15 percent compared with theprevious year. In-

    dustrialcoatings, which wereboosted by acquisition activity, achieved

    the strongest growth, followed by marine and protective coatings.

    We are continuing to focus on performance improvement. Our

    global margin management efforts are also proving successful as we

    continue to mitigate the adverse effects of higher raw material

    costs, said CEO Hans Wijers.However, our volumes were down

    slightly, reecting the volatile nature of the economic conditions.

    Despite these challenges, we have solid fundamentals, renowned

    brands and a strong geographic spread. Furthermore, the ongoing

    performance improvement program shows that we are taking the

    right steps towards achieving our medium-term ambitions.

    PPG sees six percent growth in Q1 revenue onstrong U.S. coatings salesPPG Industries reported net sales for the rst quarter 2012 of $3.8

    billion, an increase of six percent versus the prior years rst quar-

    ter. Net income for the quarter was $13 million including nonre-curring charges. Adjusted net income for the quarter, excluding

    the nonrecurring charges, was $279 million. First quarter 2011

    net sales were $3.5 billion, and net income was $228 million.

    PPGs earnings growth momentum continued during the rst

    quarter, and we achieved a seventh consecutive quarter of record

    earnings with adjusted earnings per share up about 30 percent ver-

    sus last year, said Charles Bunch, PPG chairman and CEO. We

    have delivered consistently strong earnings over nearly two years de-

    spite the prolonged, gradual recovery from the economic crisis and

    continued raw materials cost ination. Our broad business portfo-

    lio and operating discipline have been critical factors in our record

    performance, and we still have further growth opportunities as de-mand in some of our larger end-use markets continues to recover.

    PPGs performance coatings segment sales were a rst quar-

    ter record of $1.2 billion, up $98 million versus the prior year.

    The aerospace business delivered mid-teen percentage sales

    growth, and U.S. architectural coatings sales improved about 20

    percent. Automotive renish and protective and marine coatings

    results were solid but with more modest sales growth. Architec-

    tural coatings volumes in emerging regions declined slightly. Seg-

    ment earnings grew $21 million versus the prior year to $160

    million due to higher sales.

    The industrial coatings segment sales were also a rst quarter

    record of $1.1 billion, an increase of $51 million, or ve percent,versus the prior year. Segment volumes grew by more than 10

    percent in the United States, including strong automotive OEM

    coatings business performance. Growth in emerging regions con-

    tinued, albeit at a lesser rate and with less consistency through-

    out the quarter than in the recent past. European volumes

    declined by about ve percent. Segment earnings for the quarter

    were $150 million, an increase of $34 million from the prior year.

    Architectural coatings - EMEA (Europe, Middle East and

    Africa) segment sales for the quarter of $517 million increased

    $46 million, or 10 percent, versus the prior year due principally

    to the Dyrup acquisition. Despite low-single-digit percentage seg-

    ment volume declines, segment earnings of $16 million grew by$4 million versus the prior years rst quarter. CW

    22 | Coatings World www.coatingsworld.com May 2012

    AkzoNobel reports six percent rise inrevenuewhile profit dips three percent

    FinancialNews

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    PPG Industries industrial coatings business

    is raising prices by an average of two to 10

    percent on all its liquid, powder and elec-

    trocoat (E-coat) products in theAsia Pacic

    region, effectiveApril 1 or as permissible by

    contract. We have experienced ongoing

    and signicant cost escalation for a major-

    ity of our raw materials, especially titanium

    dioxide (TiO2) and resins, said Willie Wu,

    PPG vice president, industrial coatings, Asia

    Pacic. We will continue to implement

    cost-control measures throughout our op-erations, and to aggressively negotiate pric-

    ing with suppliers, but the pressures we are

    facing make this action unavoidable.

    Cytec increases prices ofpowder resins, specialty resinsand additivesCytec Industries Inc. and its afliated com-

    panies announced to its customers a selling

    price increase on all powder coating resins

    Crylcoat powder resins; Additol powder

    resins additives; Modaow additives and

    resins; and Uvecoat powder resinssold in

    North America and Latin America. The in-

    crease is between US$0.10/lb - US$0.12/lb

    and became effective for shipments on or

    after April 1, 2012 or as contracts allow.

    Cytec also implemented a selling price in-

    crease on a range of specialty coating resins

    and additives in the Americas. The changesare necessary to offset increasing costs of

    raw materials and feedstocks the company

    said. The increase will range from six to 12

    percent depending on product family.

    Included in the increase are: Additol

    coating additives; Beckopox waterborne

    epoxy dispersions; Cycat catalysts; Cy-

    drothane polyurethane dispersions; Daotan

    polyurethane dispersions; Duroxyn water-

    borne epoxy-ester dispersions; Macrynal

    waterborne dispersions; Modaow coating

    additives; Multiow coating additives; PC

    Defoamer additives; Resydrol waterborne

    alkyd emulsions; Ucecryl waterborne alkyd

    emulsions; and Viacryl waterborne acrylic

    resins and emulsions.

    These increases became effective for

    shipments as of April 1, 2012 or as con-

    tracts allow.

    Cytec also hiked prices for its entirerange of powder coating resins and addi-

    tives sold in Europe, the Middle East and

    Africa.The price of all products in the range

    will be increased by 0.10 to 0.12 EUR/kg

    for shipments from Europe and by 0.13 to

    0.15 USD/kg for shipments from Asia. The

    adjustment also became effective for all

    shipments as of April 1, 2012.CW

    PPG to hike prices on its liquid, powderand electrocoat products inAsia Pacific

    Price

    Increases

    http://www.coatingsworld.com/http://www.evonik.com/Butterflyhttp://www.coatingsworld.com/
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    The market research firm Ceresana fore-

    casts the global solvent market to earn

    revenues of about US$33 billion in

    2019. The firm highlights the dynamic

    economic development in emerging

    countries like China, India, Brazil and

    Russia, which will continue to boost the

    demand for solvents. The market re-

    search institute expects worldwide sol-

    vent consumption to increase at an

    average annual rate of 2.5 percent overthe next years. Accordingly, the growth

    rate seen during past eight years will be

    surpassed.

    The most frequently used solvents are

    alcohols, such as ethanol, n-butanol, iso-

    propanol and methanol. About 6.4 mil-

    lion tons of alcohol-based solvents were

    utilized worldwide in 2011. Demand for

    ethanol and ethers is projected to rise at

    an above-average growth rate of more

    than three percent per year between 2011

    and 2019. Demand for halogenated sol-vents is especially declining in Western Eu-

    rope and North America. Also aromatics

    and pure hydrocarbons will continue their

    downward trend.

    The report also analyzes how the use

    of solvents will develop in individual mar-

    kets. Most important buyers include pro-

    ducers of paints and coatings. They are

    followed by a considerable distance by

    printing ink manufacturers. The printing

    ink industry accounted for somewhat

    more than eight percent of global solventdemand in 2011. The pharmaceutical in-

    dustry came in third place, followed by

    cosmetics and adhesives. Furthermore,

    solvents are used in a broad variety of

    other industrial applications, for example

    in chemical manufacturing processes,

    cooling circuits, chemical dry-cleaning,

    and as de-icing agents.

    The adhesive industry is expected to

    record the strongest growth in solvent use.

    Besides private consumption, adhesives

    are increasingly used in industrial appli-cations. They allow for easy, safe and ex-

    ible connections, which are usually inex-

    pensive and lightweight.

    With a roughly 39 percent share of

    global consumption, Asia-Pacic is the

    largest solvent outlet, followed by North

    America and Western Europe. Asian coun-

    tries will further increase their shares in

    the global solvent market mainly at the

    expense of saturated industrial countries.

    Many emerging and developing countries

    benet from an increasing solvent demandabove all in the paint, coating and adhe-

    sive industries.

    For example, solvent demand in the

    paint and coatings industry is predicted

    to increase by 2.9 percent per year until

    2019. Mainly emerging and developing

    countries will boost this trend. Rising

    prosperity in these countries will result

    in an increasing per capita consumption

    of paints.

    The market for solvents is consider-

    ably influenced by legal regulations andthe growing environmental awareness of

    end-consumers the report says. Changes

    targeted at reducing the environmental

    impact of solvents will focus on both

    production methods and further substi-

    tutions of specific solvent types. The

    manufacture of solvents from renewable

    resources reduces the dependence on pe-

    troleum and improves the CO2 balance.

    Western Europe and North America

    will continue to pursue their goal of re-

    ducing emissions of VOCs. The shiftingfrom solvent-based paints to water-based

    or other solvent-free paints is negatively

    impacting the solvent demand in these re-

    gions. In the other regions, environmental

    protection is far less important. However,

    this is going to change in the long-term.

    Visitwww.ceresana.com/en.

    Research and Markets releasesreport, Global Paints &

    Coatings Market 2012The report provides an analysis of the

    global paint and coatings market. It also

    discusses major trends, growth drivers

    and potential markets for paint and

    coatings market. The report presents the

    competitive structure of the industry

    and profiles major players in the market

    with a discussion of their key business

    strategies.

    The industrial coatings market is be-

    ginning to recover from the recent eco-

    nomic downturn. The strengtheningglobal economy has led to an increase in

    new buildings and maintenance in both

    the private and public sector. The global

    paint and coatings market has reached the

    pre-recession level in 2010.

    The paint and coatings industry is

    dominated by the architectural coatings

    segment; the industrial coatings seg-

    ment also has significant share in the

    market. The global coating industry has

    shifted to the Asia Pacific region where

    China is the largest consumer of coat-ing additives. The country accounted

    for more than half of the Asias market

    share in 2010.

    The paints and coatings industry de-

    pends heavily on its end-use markets.

    The key industrial sectors catered are

    construction, steel, marine, automotive

    and wooden furniture. Emerging mar-

    kets are showing immense potential for

    the growth of both architectural coat-

    ings and industrial coatings. The grow-

    ing demand for green-based chemicals,such as zero volatile organic component

    (VOC) coatings, is driving the replace-

    ment of solvent-based products with

    water-based products.

    Paint makers are focusing on cutting

    edge technological innovation to satisfy

    both consumers and regulatory de-

    mands. The industry is dealing with sev-

    eral issues, a major one of them is the

    unprecedented escalation in the price of

    oil, natural gas and raw materials, which

    is having a significant impact on the ma-rine coating industry. CW

    24 | Coatings World www.coatingsworld.com May 2012

    Ceresana updates report onthe global solventmarket

    MarketReports

    http://www.ceresana.com/enhttp://www.coatingsworld.com/http://www.coatingsworld.com/http://www.ceresana.com/en
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    Rust-Oleum has introduced LeakSeal

    Flexible Rubber Coating, a rubberized

    utility coating designed to stop and seal

    leaks instantly. The spray lls and seals

    leaks and cracks, providing a exible wa-

    tertight seal that prevents moisture pene-

    tration, rust and corrosion. It has a

    high-build formula specically developed

    to ll cracks, gaps and holes while main-

    taining superior exibility even with tem-

    perature changes and UV radiation the

    company said. LeakSeal can be used toseal leaks and cracks on metal, vinyl, plas-

    tic, PVC, concrete and other surfaces year

    round. It can be used to seal skylights,

    roofs, ductwork, vinyl, plastic, metal roofs

    and vents. Ideal for both homeowners and

    maintenance professionals, it is also de-

    signed for use on gutters, downspouts,

    pipes, air conditioner drip pans and units,

    PVC, metal buildings and sheds, ashing,

    shingles, concrete foundations and more.

    LeakSeal dries to a semi-smooth, rm

    black nish that will not sag or drip andcan be top-coated with any latex- or

    alkyd-based paint.

    Jotun Powder Coatingslaunches Reveal Smooth

    Jotun Powder Coatings has globally

    launched Reveal Smooth, the companys

    latest eco-friendly premium MDF powder

    coating solution. Reveal Smooth has been

    developed to ensure an aesthetic appear-

    ance, regardless of shape, particularly

    across hard-to-coat rounded corners andcontoured edges, leaving users with unlim-

    ited design opportunities the company said.

    With MDF powder coatings being identi-

    ed as a sustainable and cost effective al-

    ternative solution to current technologies in

    the market, Jotun Powder Coatings has de-

    veloped Reveal Smooth, to deliver a high-

    end semi-matte nish, which also protects

    furniture from scratches and unwanted

    marks left by warm objects like coffee cups.

    Reveal Smooth is being offered in dynamic

    and custom-made colors that can be usedto coat home and ofce furniture,retail dis-

    plays, shelving and cabinets for the bath-

    room and kitchen.

    Sansin unveils Eco2The Sansin Corporation has introduced new

    zero-waste solid color exterior and clear in-

    terior wood stains called Sansin Eco2. Of-

    fered as a limited edition stain while

    quantities last, Eco2 is available in lava, fes-

    cue, adobe and charcoal colors for the exte-

    rior and clears for the interior, costing less

    than half of Sansin Enviro stains. Tradition-ally, coating manufacturers need to pay for

    the removal or disposal of leftover stain,

    which can end up as waste. Sansin decided

    to create a production process that would

    move the company towards a zero-waste fa-

    cility. Sansin designed a manufacturing

    process that recoups leftover stain without

    sacricing the quality of the end product.

    Eco2 is a product for someone who wants

    quality stain at a lower price,with the added

    benet of knowing that it is recycled and

    wont end up harming the environment. Ad-ditionally, all four exterior colors are popu-

    lar shades. The charcoal (black) solid color

    stain, for example, is popular on woods such

    as mahogany, for European style homes, and

    for those seeking a sleek, bold statement on

    their exteriors the company said.

    Citadel introduces water-basedUltra-Hydro Stop H2OCitadel Polyurea Coatings introduced its

    new Ultra-Hydro Stop H2O Primer. A

    water-based version of the Ultra-Hydro StopPrimer, UHS H2O includes innovations to

    save installers both time and money the

    company said. UHS H2O is a two-compo-

    nent, 50 percent solids, water-based epoxy

    primer. It cures in six hours, half the time of

    its predecessor, and doesnt need scuff sand-

    ing prior to re-coating.As a water-based for-

    mula, it can be safely applied to diamond

    ground concrete, eliminating the need for

    shot-blasting to prole. Ready to be applied

    with a roller or squeegee only 48 hours after

    concrete placement, UHS H2O saves timeand labor both before and after use. CW

    May 2012 www.coatingsworld.com Coatings World | 25

    Rust-Oleum introduces LeakSealFlexibleRubberCoating

    New

    Products

    Rust-Oleums LeakSealFlexibleRubber Coating

    http://www.coatingsworld.com/http://www.coatingsworld.com/
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    CentralizingDecoPaintOperationsToMaximizeEfficiencies

    International Coatings Scene Europe

    by Sean Milmo

    Europe Correspondent

    [email protected]

    Jotun opened in March at Sandefjord, Nor-

    way, a decorative paints plant costing NOK

    500 million ($87 million), which the com-

    pany claims is one of the most modern in the

    world. It replaces two other decorative paints

    units in the country.Meanwhile AkzoNobel received a planning

    permit in February to build a 100 million ($161

    million) high-tech decorative paints plant across

    the North Sea at Prudhoe in northeast England,

    which will also replace two other facilities.

    The projects are part of a general trend in the

    decorative paints sector in Europeand to a

    lesser extent in its industrial coatings segment

    to centralize production of paints to raise ef-

    ciencies, increase sustainability and cut costs.

    Shareholders view these projects as favorable

    because at a time of low demand for decorativepaints in slow-growth Europe, they will help to

    maintain or even raise margins.

    The plants also being welcomed by the

    growing number of home improvement retail

    chains in the region who are aiming to cen-

    tralize as much as possible their own supply

    sources. The concentration of manufacturing

    by paint companies is helping these retailers

    increase the amounts of decorative paints pur-

    chased directly from producers with the aim

    also of reducing costs.

    However ironically at the same time the re-

    tailers are also seeking to expand into areas in

    which they will be competing with their suppli-

    ers, especially by pushing up sales of their own

    brands. The reorganization of paints production

    is freeing up capacity for the making of own-

    brand products.

    Jotuns plant at Sandefjord, which has been

    built as an addition to its existing plants at its

    Vindal site in the city, will supply the whole of

    Scandinavia, which is the companys main deco-

    rative paints market in Europe. A facility for the

    production of llers has also been added while a

    unit for making tinters has been expanded.

    As part of the reorganization, all production

    of marine and industrial coatings has been

    moved to Jotuns site at Flixborough, England.

    The company says that its production fa-cilities in Norway were old and inefficient,

    production and logistics costs were too high

    and significant structural improvements

    were needed to make the companys opera-

    tions cost effective.

    Constructing this plant in Sandefjord made

    the most sense for nancial and market prox-

    imity reasons, said Jan Helge Eriksen, produc-

    tion and logistics director in Jotuns decorative

    business. We believe we will gain a stronger

    market position by producing in the very market

    we sell in.

    With increased use of new systems and au-

    tomation we can be more responsive to the mar-

    ket and produce according to demand, Eriksen

    said.This again will lead to a lower build-up of

    stock and allows us to supply the market more

    quickly and efciently.

    The plant, with an annual capacity of 80

    million liters, will enable a reduction in the use

    of solvents and the use of less hazardous chem-

    icals. CO2 emissions from internal trans-

    portation are projected to be cut by 80

    percent. Energy consumption will be decreased

    by half.

    Recently

    announced

    plant projects

    for Jotun and

    AkzoNobel

    highlight trend

    among paint

    makers to

    centralize

    production.

    Kingfisher of the UK, one of the biggest home im-

    provement retail groups in Europe, which runs the

    B&Q stores in its home market, is aiming to increase

    direct sourcing to 35 percent in the medium-term.

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    AkzoNobels new plant at Prudhoe,

    Northumberland, on which construction

    work will start later this year for a sched-

    uled opening in 2014, will replace an ex-

    isting plant at the site and another at

    Slough, west of London. Both supply the

    UK decorative market, one of AkzoNo-

    bels biggest in Europe.

    The objective is to raise supply chain

    effectiveness, reduce working capital and

    accelerate responses to changes in the

    market the company said. The investment

    represents a step change in the way we

    do business, said Guy Williams, Ak-

    zoNobels UK country director.

    The facility will consume 60 percent

    less energy compared with the existing

    plants performance, while its range of

    technologies will include recycling and

    reuse of waste and water. It will cut in half

    the environmental footprint of the UK

    decorative business of the company.

    AkzoNobel hopes that the efciency of

    the new facility will contribute to reach-

    ing its medium terms target of an EBITDA

    margin of 13-15 percent in the medium-

    term, despite expected sluggish demand in

    Europe. In the rst quarter European dec-

    orative sales rose only by two percent

    while dropping in volume terms. The dec-

    orative paints business returned an

    EBITDA margin of only 6.1 percent, half

    that recorded by performance coatings, its

    other paints business.

    Meanwhile Europes retail chains are

    also endeavouring to push up their own

    margins by gaining more control over their

    supply chains, particularly by doing more

    business directly with paint and other man-

    ufacturers rather than through wholesalers.

    Concentration of production by paint

    and other suppliers in single plants makes

    direct sourcing easier. New centralized

    plants in Europe are often distributing

    their products across national borders

    which gives more scope for international

    retailers to buy directly from producers.

    Greater efciency in supplies can also

    be achieved by retailers through exploit-

    ing opportunities given by own brands.

    At the same time retailers are also try-

    ing to create closer ties with their own

    customers by offering more advice and

    training to consumers and professionals.

    These initiatives can often clash with ef-

    forts by decorative paint companies to es-

    tablish links with their customers.

    Kingsher of the UK, one of the biggest

    home improvement retail groups in Europe

    which runs the B&Q stores in its home

    market and the Castorama and Brico

    Depot chains in France, is currently a lead-

    ing pacesetter in pursuing this strategy. In

    addition to having market leadership in the

    UK and France it has been building up

    strong positions in Eastern Europe.

    It is aiming to increase direct sourcing

    to 35 percent in the medium-term, com-

    pared with a level of 15 percent at the be-

    ginning to this year and nine percent four

    years ago.

    With common sourcing, which the

    company denes as products or ranges of

    products made by the same manufacturer,

    its target is a share of 50 percent against

    only two percent at present and less than

    one percent in 2008.

    The achievement of these objectives

    will be helped by a rationalization and

    considerable international expansion of

    its own brands.

    Our aim with the current total of 150

    brands around the world is that they will be

    reduced to about 11 in number, each with a

    high level of individual sales on an interna-

    tional level, said a Kingsher ofcial.Our

    Colours brand which includes not just coat-

    ings but related products like wallpaper will

    play a major part in this project.

    The drive behind its own brands is

    being supported in the UK by the roll-out

    of DIY training classes and the launch of

    a B&Q You Tube channel with how to

    video instructions.

    Coatings companies with centralized

    plants have the advantage of being able to

    meet retailers needs for direct sourcing.

    But at the same time retailers are putting

    greater competitive pressures on them by

    strengthening own brands and setting up

    similar communications channels coatings

    manufacturers have themselves estab-

    lished with their customers. CW

    Europe International Coatings Scene

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    US-basedMultinationalsContinue toHireOffshore

    Business Corner Strategies & Analysis

    by Phil Phillips, PhD

    Contributing Editor

    [email protected]

    According to the US Commerce Depart-

    ment, and considering US-based compa-

    nies that have a multinational presence,

    it is a fact that they increased their labor force

    by a mere 0.1 percent while expanding offshore

    employment by 1.5 percent.While this doesnt seem like much of an issue

    on the surface, it does, in fact have one large im-

    pact on our US economy and job loss. This mod-

    est expansion of US multinational rms in the

    US in 2010 arrived in a year when the private

    sector eliminated 0.6 percent of its US workers.

    FACTS: US-Based Multinationals

    Account for one-fth of private employment

    23 million US workers

    11 million afliates offshore

    Since 1999 cut US employment by 1 million =4% decrease

    Since 1999 added 3.1 million workers off-

    shore = 39% increase

    68% of company employees were in the US,

    down from 75% in 1999

    Over 2009, capital spending in US rose 3.3%;

    offshore rose 8.6%

    Because the government data is lagging, we

    do not have 2011 data. We can only speculate

    from all the announcements by these same com-

    panies we read, that the trend will continue. Therecent appreciation of the Yuan in China should

    help slow down the trend on a modest basis

    going forward, however, the momentum of new

    plant plans in combination with startups in

    China alone we feel, will forgo any major

    change in these trends on the short- and

    medium-terms.

    In parallel with our multinational dynamics,

    offshore companies cut their work force in the

    US by one percent and reduced capital spending

    in the US by 1.7 percent in 2010.

    From a macro-prospective, these large multi-

    nationals will continue to do well and labor in

    this country will grow very slowly while off-

    shore with their domestic growth will triple that

    of the US.The concern in our industriespaints, coat-

    ings, adhesives, sealants and specialty chemi-

    calsis for the growth and stability at the other

    end of the size barbell illustrated below.

    The small- and medium-sized companies

    with relatively limited resources to expend in

    globalizing their position, will suffer as US man-

    ufacturing remains stagnate and offshore sourc-

    ing continues to penetrate the US borders.

    The question many of the small- and

    medium-sized companies in our industries have

    is: How do I compete (survive) in this busi-ness environment?

    The answer is certainly NOT easy to con-

    sider. One answer would be to tell them they

    wont be able to compete based on business as

    usual. However, there are some alternatives:

    Combining with other similar or adjacent

    manufacturers;

    Joint ventures with competitors;

    Licensing unique technologies to offshore

    suppliers; and

    Establish offshore distribution.

    These arrangements have their respective ad-

    vantages and disadvantages of course, but they

    may be a better choice than the other obvious

    choice of going out of business. CW

    US workforce

    continues to hurt

    under offshore

    growth trends.

    Large Multinationals vs. Small- and Medium-sized Companies

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    TheTradeSecretDance:Lessons FromTheLitigationTrenches

    IPaint Protecting the P&C Industrys Intellectual Assets

    By Steve McDaniel, JD PhD,

    Technology Litigators &

    Paul Stanfield, JD,

    Stanfield Hiserodt, PLLC

    Queens Counsel:

    You have testied to this Court that you

    personally handed any bloke who walked

    into my clients front ofce the computercode that contains its trade secrets, no ques-

    tions asked. Is that right, Mr. Smythe?

    Witness:

    Whenever anyone came into the Australian

    ofce and asked for it, I would hand them

    the code.

    Queens Counsel:

    You yourself handed them the code?

    Witness:

    Yes, no questions asked.

    Queens Counsel:

    What does computer code look like, Mr.Smythe?

    Witness:

    Well, its computer stuff, you know, I dont

    know.

    Queens Counsel:

    What about source code?

    Witness:

    I dont know. I was just the receptionist.

    Queens Counsel:

    What is machine code, Mr. Smythe?

    Witness:

    I dont know.Queens Counsel:

    Binary code? Any clue, what binary code is?

    Witness:

    Binarywhat?

    Queens Counsel:

    Isnt it true, Mr. Smythe, that you would

    not know computer code of any kind even

    if it were to jump up and bite you on the

    arse?

    Mr. Smythe:

    Uhhhmmm, yes, yes sir, thats true.

    Queens Counsel:No further questions. I pass the witness.

    While not an exact transcript of

    the actual cross-examination,

    its close. It was one of the most

    amazing feats of lawyering your authors

    ever witnessed in trade secret litigation.

    And it highlights the thrust of what we

    want to discussthe trade secret litigation

    dancesince despite your best efforts to

    protect them, you may have occasion to

    aggressively catch a thief. This comes

    from our personal experiences in the

    trenches advising people about the steps

    needed to have an effective trade secret

    program, assisting them to routinely audit

    these assets and representing them when

    their secrets have been stolen.

    The very rst scoundrels defense that

    will come without fail from the accused

    trade secret thief is, Unh-uh! It aint a

    trade secret. That is precisely what was

    going on in the cross-examination of the

    chief witness of the thieves shown

    aboveone Mr. Smythe, the former re-

    ceptionist of the Australian branch of our

    client, a large software developer.

    Like clockwork, the departing employ-

    ees that stole the code of our client as-

    serted that the code was not a trade secret.

    And, chiey upon the testimony of recep-

    tionist Smythe, they aimed to show that it

    was routinely passed out like candy to

    anyone who walked in the front door of

    its Sydney ofces.

    Anecdotally, what made this cross ex-

    amination so amazing was that our Aus-

    tralian colleague, a Queens Counsel in

    Australia, arrived severely jet-lagged the

    morning of the testimony of Mr. Smythe,

    deposed the receptionist for less than half

    an hour before the judge gaveled the pro-

    ceedings open, and immediately proceeded

    to summarily slice his countryman into lit-

    tle chunks in cross examination lasting at

    most a minute-and-a-half, then promptly

    left the trial to catch a plane back Down

    Under. All this, as the opposing counsel hid

    behind their hands from his Honors steely,

    disapproving glare! Sweet. One of those

    trial moments we lawyers dream about.

    So, be as ready as you can to immedi-

    ately dispatch this automatic defense.Before

    you can protect something as slippery as a

    trade secret though, you do have to know

    what it is.Generally, a trade secret is dened

    as some bit of information that is important

    to your business, gives you a competitive ad-

    vantage and that is generally not known in

    your industry. But, the thief will claim it is

    not. Lets examine each of these elements

    with the thiefs voice echoing in the back-

    ground that they are not trade secrets. (To

    catch a thief, ya gotta think like a thief,

    boys! Sergeant Friday, Dragnet).

    Unl