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Powder Coating MDF
FOCUS ON POWDER COATINGS A MONTHLY REPORT FROM KEVIN BILLER MAY 2015
POWDER COATING MDF
IN THIS ISSUE
INDUSTRY NEWS 2-4 Axalta Coating Systems Offers to Sell-off its Shares to Berkshire Hathaway RPM Sees $57M Loss in Q3 JCB Selects Interpon Align TECHNOLOGY 4-6 Powder Coated Mesh Helps University Ace Its Gold LEED Certification Powder Coatings - Back on the fast track Low-cure Powder Coat Suits MDF Substrates MARKETS 6-7 A Profile of the Chinese Paint Industry Report on Global Industrial Coatings Market Size and Forecast Powder Coatings Market in Poland to Grow EVENTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN POWDER COATINGS ISSN 1364–5439
8
Powder coating MDF (medium density fiberboard) is nothing new. The first application lines were installed in the late 1990s and used a combination of innovative materials technology and clever engineering. The main market targets at the time were doors for kitchen cabinets and microwave carts. A couple technical hurdles had to be overcome. Researchers needed to find ways to electrostatically coat a not-so-conductive ligneous substrate. In addition chemists were required to develop cure chemistry that would crosslink at temperatures low enough to maintain the integrity of the board. Both objectives were achieved and a few pioneers ventured into this novel coating process. Some are still operating powder MDF lines today. Electrostatically applying powder to an engineered board such as MDF required two things. The board needed an even and consistent level of moisture typically between 4 and 7%. In addition these high quality boards are preheated by infrared energy which brings the moisture to the outer surface of the board thus creating enough conductivity to deposit the powder. The powder is applied shortly thereafter and provides an even layer on flat and contoured surfaces alike. Two schools of thought emerged regarding the powder chemistry approach to this finishing process. Some formulators opted for low temperature cure thermoset technology including polyester, epoxy and epoxy-polyester based powder coatings. Others relied on radiation curable chemistry that utilizes ultraviolet light to drive the cure. The low cure thermoset powders required longer bake cycles but offered a broader spectrum of colours and avoided the added process of UV cure. On the other hand the UV cure process is carried out a lower temperature and a significantly shorter cure time.
Fast forward fifteen years and where is this market niche today? Interestingly a few more finishers have jumped on the bandwagon. The market for this unique application has expanding into point-ofpurchase displays, garage cabinetry, room partitions, medical carts, office furniture and picture frames. Finishers using this technique find a plethora of advantages versus alternate finishing processes. The prevailing processes include PVC based thermofoils, high pressure laminates such as FormicaTM and liquid paint. All of these have shortcomings easily overcome by using the powder coating process. Powder provides a tougher and more scratch resistant surface and requires no seams that can be susceptible to delamination. Furthermore powder coating provides excellent coverage of intricate routing and cut-outs. The materials producers have initiated a new effort to advance the technology as well. Thermosetting powder coatings have been developed that cure more quickly and provide smoother surfaces than the products introduced at the turn of the century. UV curable powders designed for MDF now boast even better scratch resistance and surface hardness in a much wider array of colours. The equipment manufacturers have not stood still either. Infrared heating engineers have developed highly controllable heating elements including electric, gas and gas-catalytic energy to create IR heat. These offer higher consistency; more controllable heating that gives excellent cure without damaging the heat sensitive substrate. Expect to see further growth in this niche market of powder coating technology as some companies are debuting new technology (see Technology section) and market analysts (see Markets section) are predicting expansion of this fascinating product.
POWDER COATINGS POWDER COATINGS POWDER COATINGS POWDER COATINGS
FOCUS
INDUSTRY NEWS Axalta coating systems offers to sell-off its shares to berkshire hathaway Axalta Coating Systems Ltd. announced that an affiliate of Berkshire Hathaway Inc. ("Berkshire Hathaway'') has entered into a definitive stock purchase agreement with certain affiliates of The Carlyle Group ("Carlyle'') for the purchase of a total of 20 million of Axalta's common shares for an aggregate purchase price of $560 million, or $28.00 per share. Axalta will not receive proceeds from the sale of the shares. In connection with the purchase, Berkshire Hathaway agreed that it would not dispose of the shares for 90 days following the consummation of the sale. Axalta has agreed to provide Berkshire Hathaway with certain registration rights following the expiration of that 90-day period. The shares are being offered and sold in a private placement pursuant to Section 4 of the Securities Act of 1933, as amended (the "Securities Act''). The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell, or a solicitation of an offer to purchase, the shares in any jurisdiction in which such offer or solicitation would be unlawful. "We are pleased to have Berkshire Hathaway Inc. take this share ownership position in Axalta,'' said Charlie Shaver, Chairman and CEO. "Berkshire is the type of quality investor that Axalta has been fortunate to attract since our IPO last year. We believe this investment shows Berkshire's support of our strategy to reshape ourselves into a growth and customer oriented, world class Coatings Company.''
ON
POWDER
manufacturing facilities and research and technology centers located throughout the world, Allnex is a global and innovative resin and additive supplier offering responsive, local support and is committed to helping our coating customers bring advanced solutions to the market. Visitors can speak to Allnex experts about our polyester resins and additives for powder coatings including flow and leveling agents. In addition, as part of the associated European Coatings Congress on Monday April 20th, an Allnex expert will be presenting a paper on recent technology innovations: "Powder coating systems with improved scratch resistance for indoor and outdoor applications'' by Dietmar Fink. Original Source: Allnex 2015. Found on SpecialChem Coatings, 2 Apr 2015, (Website: http://www.specialchem4coatings.com) © Allnex Belgium SA/NA 2015
RPM sees $57M loss in Q3
Allnex at ECS 2015: to exhibit its broad range of coating resins & additives
The parent company of Rust-Oleum, TCI Powder Coatings and other leading paint and coating brands has reported an eight-figure net loss for the third quarter, due to an $83.5 million one-time net charge. RPM International Inc. saw a net loss of $57.35 million for the quarter ended Feb. 28, compared to net income of $16.22 million in the prior-year period, according to a release issued April 8. Excluding the charge, as-adjusted net income for the quarter rose sharply—by 61.2 percent—to $26.2 million, or $0.20 per diluted share, according to the company. The drop in income overshadowed a climb in sales for the quarter. The Medina, OH-based company saw a 9.6 percent increase in net sales for the third quarter. Sales were $946.4 million, up from $863.4 million in the same quarter a year earlier. RPM said the $83.5 million charge was for a tax accrual related to "possible repatriation of overseas earnings to fund remaining obligations'' in its SPHC (Specialty Products Holding Corp.) settlement. SPHC and its Bondex subsidiary emerged from bankruptcy at the end of December 2014, following approval of a plan of reorganization by the U.S. Bankruptcy Court in Delaware and the U.S. District Court in Delaware, RPM explained. The May 31, 2010, bankruptcy filing allowed SPHC to develop a plan to permanently resolve hundreds of millions of dollars in asbestos claims related to Bondex.
Allnex will be exhibiting at the European Coatings Show (ECS) 2015 for the first time as an independent company. With
Original Source: RPM International Inc., 8 April 2015, (Website: http://www.rpminc.com/) © RPM International Inc. 2015
Original Source: Axalta Coating Systems, 2015. Found on SpecialChem Coatings, 9 Apr 2015, (Website: http://www.specialchem4coatings. com) © Axalta Coating Systems 2015
2
C OAT I N G S Asian paints to set up plant worth Rup 1700 crore Asian Paints has completed all the necessary regulatory requirements to proceed with the construction of its Rup 1700 crore production plant in Vishakhapatnam, Andhra Pradesh, India. The state government provided the land for the project. (1 crore = 10 pM, 1 lakh = 100,000). Original Source: Chemical Engineering World, Feb 2015, 50 (2), 6 (Website: http://www. cewindia.com/) © Jasubhai Group 2015
Asian Paints plans to expand in Indonesia Asian Paints has received clearance from the Indonesian government's investment coordinating board to construct a 24,550 tonnes/y production facility as part of its expansion in the country. The plant will allow the company to import finished goods such as decorative paints and coatings. Original Source: PPCJ, Polymers, Paint, Colour Journal, Mar 2015, 205 (4606), (Website: http://www.polymerspaintcolourjournal.com/) © dmg events (MEA) Ltd 2015
AkzoNobel to increase capacity of coatings AkzoNobel Performance Coatings is spending EUR 2.5 M in an expansion project at its plant in Cikarang, Indonesia. The project, which is set for completion in Apr 2015, will support the company's marine coatings and protective coatings businesses amid increasing demand. The expansion follows AkzoNobel's recent EUR 5 M investment to increase protective and marine coatings capacities in Australia and Singapore. Original Source: Chemical Engineering World, Feb 2015, 50 (2), 18 (Website: http://www. cewindia.com) © Jasubhai Group 2015
BASF increases earnings in 4Q and full year 2014: Functional Materials & Solutions In BASF's Functional Materials & Solutions segment, sales in 4Q 2014 rose by 8% to EUR 4.4 bn due to higher volumes and positive currency effects. EBIT before special items decreased by EUR 18 M to EUR 220 M. For the full year 2014, sales rose 3% to EUR 17.7 bn due to significantly higher sales volumes especially of products for the automotive industry. The increase was curbed by negative currency effects. Prices were stable overall. EBIT before special items
May 2015
POWDER COATING MDF
IN THIS ISSUE
INDUSTRY NEWS 2-4 Axalta Coating Systems Offers to Sell-off its Shares to Berkshire Hathaway RPM Sees $57M Loss in Q3 JCB Selects Interpon Align TECHNOLOGY 4-6 Powder Coated Mesh Helps University Ace Its Gold LEED Certification Powder Coatings - Back on the fast track Low-cure Powder Coat Suits MDF Substrates MARKETS 6-7 A Profile of the Chinese Paint Industry Report on Global Industrial Coatings Market Size and Forecast Powder Coatings Market in Poland to Grow EVENTS
AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL AND COMMERCIAL DEVELOPMENTS IN POWDER COATINGS ISSN 1364–5439
8
Powder coating MDF (medium density fiberboard) is nothing new. The first application lines were installed in the late 1990s and used a combination of innovative materials technology and clever engineering. The main market targets at the time were doors for kitchen cabinets and microwave carts. A couple technical hurdles had to be overcome. Researchers needed to find ways to electrostatically coat a not-so-conductive ligneous substrate. In addition chemists were required to develop cure chemistry that would crosslink at temperatures low enough to maintain the integrity of the board. Both objectives were achieved and a few pioneers ventured into this novel coating process. Some are still operating powder MDF lines today. Electrostatically applying powder to an engineered board such as MDF required two things. The board needed an even and consistent level of moisture typically between 4 and 7%. In addition these high quality boards are preheated by infrared energy which brings the moisture to the outer surface of the board thus creating enough conductivity to deposit the powder. The powder is applied shortly thereafter and provides an even layer on flat and contoured surfaces alike. Two schools of thought emerged regarding the powder chemistry approach to this finishing process. Some formulators opted for low temperature cure thermoset technology including polyester, epoxy and epoxy-polyester based powder coatings. Others relied on radiation curable chemistry that utilizes ultraviolet light to drive the cure. The low cure thermoset powders required longer bake cycles but offered a broader spectrum of colours and avoided the added process of UV cure. On the other hand the UV cure process is carried out a lower temperature and a significantly shorter cure time.
Fast forward fifteen years and where is this market niche today? Interestingly a few more finishers have jumped on the bandwagon. The market for this unique application has expanding into point-ofpurchase displays, garage cabinetry, room partitions, medical carts, office furniture and picture frames. Finishers using this technique find a plethora of advantages versus alternate finishing processes. The prevailing processes include PVC based thermofoils, high pressure laminates such as FormicaTM and liquid paint. All of these have shortcomings easily overcome by using the powder coating process. Powder provides a tougher and more scratch resistant surface and requires no seams that can be susceptible to delamination. Furthermore powder coating provides excellent coverage of intricate routing and cut-outs. The materials producers have initiated a new effort to advance the technology as well. Thermosetting powder coatings have been developed that cure more quickly and provide smoother surfaces than the products introduced at the turn of the century. UV curable powders designed for MDF now boast even better scratch resistance and surface hardness in a much wider array of colours. The equipment manufacturers have not stood still either. Infrared heating engineers have developed highly controllable heating elements including electric, gas and gas-catalytic energy to create IR heat. These offer higher consistency; more controllable heating that gives excellent cure without damaging the heat sensitive substrate. Expect to see further growth in this niche market of powder coating technology as some companies are debuting new technology (see Technology section) and market analysts (see Markets section) are predicting expansion of this fascinating product.
POWDER COATINGS POWDER COATINGS POWDER COATINGS POWDER COATINGS
FOCUS
INDUSTRY NEWS Axalta coating systems offers to sell-off its shares to berkshire hathaway Axalta Coating Systems Ltd. announced that an affiliate of Berkshire Hathaway Inc. ("Berkshire Hathaway'') has entered into a definitive stock purchase agreement with certain affiliates of The Carlyle Group ("Carlyle'') for the purchase of a total of 20 million of Axalta's common shares for an aggregate purchase price of $560 million, or $28.00 per share. Axalta will not receive proceeds from the sale of the shares. In connection with the purchase, Berkshire Hathaway agreed that it would not dispose of the shares for 90 days following the consummation of the sale. Axalta has agreed to provide Berkshire Hathaway with certain registration rights following the expiration of that 90-day period. The shares are being offered and sold in a private placement pursuant to Section 4 of the Securities Act of 1933, as amended (the "Securities Act''). The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell, or a solicitation of an offer to purchase, the shares in any jurisdiction in which such offer or solicitation would be unlawful. "We are pleased to have Berkshire Hathaway Inc. take this share ownership position in Axalta,'' said Charlie Shaver, Chairman and CEO. "Berkshire is the type of quality investor that Axalta has been fortunate to attract since our IPO last year. We believe this investment shows Berkshire's support of our strategy to reshape ourselves into a growth and customer oriented, world class Coatings Company.''
ON
POWDER
manufacturing facilities and research and technology centers located throughout the world, Allnex is a global and innovative resin and additive supplier offering responsive, local support and is committed to helping our coating customers bring advanced solutions to the market. Visitors can speak to Allnex experts about our polyester resins and additives for powder coatings including flow and leveling agents. In addition, as part of the associated European Coatings Congress on Monday April 20th, an Allnex expert will be presenting a paper on recent technology innovations: "Powder coating systems with improved scratch resistance for indoor and outdoor applications'' by Dietmar Fink. Original Source: Allnex 2015. Found on SpecialChem Coatings, 2 Apr 2015, (Website: http://www.specialchem4coatings.com) © Allnex Belgium SA/NA 2015
RPM sees $57M loss in Q3
Allnex at ECS 2015: to exhibit its broad range of coating resins & additives
The parent company of Rust-Oleum, TCI Powder Coatings and other leading paint and coating brands has reported an eight-figure net loss for the third quarter, due to an $83.5 million one-time net charge. RPM International Inc. saw a net loss of $57.35 million for the quarter ended Feb. 28, compared to net income of $16.22 million in the prior-year period, according to a release issued April 8. Excluding the charge, as-adjusted net income for the quarter rose sharply—by 61.2 percent—to $26.2 million, or $0.20 per diluted share, according to the company. The drop in income overshadowed a climb in sales for the quarter. The Medina, OH-based company saw a 9.6 percent increase in net sales for the third quarter. Sales were $946.4 million, up from $863.4 million in the same quarter a year earlier. RPM said the $83.5 million charge was for a tax accrual related to "possible repatriation of overseas earnings to fund remaining obligations'' in its SPHC (Specialty Products Holding Corp.) settlement. SPHC and its Bondex subsidiary emerged from bankruptcy at the end of December 2014, following approval of a plan of reorganization by the U.S. Bankruptcy Court in Delaware and the U.S. District Court in Delaware, RPM explained. The May 31, 2010, bankruptcy filing allowed SPHC to develop a plan to permanently resolve hundreds of millions of dollars in asbestos claims related to Bondex.
Allnex will be exhibiting at the European Coatings Show (ECS) 2015 for the first time as an independent company. With
Original Source: RPM International Inc., 8 April 2015, (Website: http://www.rpminc.com/) © RPM International Inc. 2015
Original Source: Axalta Coating Systems, 2015. Found on SpecialChem Coatings, 9 Apr 2015, (Website: http://www.specialchem4coatings. com) © Axalta Coating Systems 2015
2
C OAT I N G S Asian paints to set up plant worth Rup 1700 crore Asian Paints has completed all the necessary regulatory requirements to proceed with the construction of its Rup 1700 crore production plant in Vishakhapatnam, Andhra Pradesh, India. The state government provided the land for the project. (1 crore = 10 pM, 1 lakh = 100,000). Original Source: Chemical Engineering World, Feb 2015, 50 (2), 6 (Website: http://www. cewindia.com/) © Jasubhai Group 2015
Asian Paints plans to expand in Indonesia Asian Paints has received clearance from the Indonesian government's investment coordinating board to construct a 24,550 tonnes/y production facility as part of its expansion in the country. The plant will allow the company to import finished goods such as decorative paints and coatings. Original Source: PPCJ, Polymers, Paint, Colour Journal, Mar 2015, 205 (4606), (Website: http://www.polymerspaintcolourjournal.com/) © dmg events (MEA) Ltd 2015
AkzoNobel to increase capacity of coatings AkzoNobel Performance Coatings is spending EUR 2.5 M in an expansion project at its plant in Cikarang, Indonesia. The project, which is set for completion in Apr 2015, will support the company's marine coatings and protective coatings businesses amid increasing demand. The expansion follows AkzoNobel's recent EUR 5 M investment to increase protective and marine coatings capacities in Australia and Singapore. Original Source: Chemical Engineering World, Feb 2015, 50 (2), 18 (Website: http://www. cewindia.com) © Jasubhai Group 2015
BASF increases earnings in 4Q and full year 2014: Functional Materials & Solutions In BASF's Functional Materials & Solutions segment, sales in 4Q 2014 rose by 8% to EUR 4.4 bn due to higher volumes and positive currency effects. EBIT before special items decreased by EUR 18 M to EUR 220 M. For the full year 2014, sales rose 3% to EUR 17.7 bn due to significantly higher sales volumes especially of products for the automotive industry. The increase was curbed by negative currency effects. Prices were stable overall. EBIT before special items
May 2015