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Akzo Nobel seeks approval for company split
FOCUS of the majority of its automotive coatings business, at a cost of $230 M (cash). The transaction includes R&H’s automotive coatings operations in North America, encompassing facilities at Lansing, IL; and the company’s stakes in two jvs with NPC, Morton Nippon Coatings (Lansing) in North America, and Nippon Bee Chemical, which operates in Asia. The automotive coatings business of R&H generates sales of $109 M. The business offers decorative and functional coatings for plastic automotive components. R&H’s European automotive coatings business, which comprises production in Strullendorf, Germany, will be divested in a separate deal. Possible buyers reportedly include DuPont and PPG. R&H will retain its architectural and functional coatings business, which engages in the production of coatings for applications in the nonwovens, paper, textile and other industries. Chemical Week, 16 Aug 2006, (Website: http://www.chemweek.com)
Akzo Nobel seeks approval for company split On 7 Sep 2006 approval will be sought at an extraordinary shareholders meeting for the splitting of Akzo Nobel into two independent companies: Akzo Nobel (coatings and chemicals) and Organon Biosciences (human and veterinary pharmaceuticals). This will preferably be carried out by selling a minority shareholding in Organon Biosciences before carrying through a complete separation of the companies within 2-3 years. Het Financieele Dagblad, 15 Aug 2006, (Website: http://www.fd.nl/) (in Dutch)
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highlights the strong growth prospects of the global market for paints and coatings, mainly due to strong demand in Asia and eastern Europe. The report said the average US household, compared with only $19 in China, spends an estimated $169 on coatings. However, China’s coatings consumption continues to increase. The country is the world’s second leading market for paints and coatings, with sales value nearly doubling between 2001 and 2005. The coatings sector in China is expected to grow 63% by 2010. The report estimated the value of the global coatings market in 2005 at $85.7 bn, equal to approximately 27 bn litres of paint. Decorative coatings represented $38.6 bn, or nearly half of sales, with projections placing the sector’s growth at roughly 5.5%/y to 2010. The industrial coatings sector represented roughly 36% of total sales in 2005 and is projected to climb 5.9%/y to 2010. Powder coatings, the industrial coatings segment which grew an average of 10.3%/y between 2001 and 2005, are forecast to grow at an average 11.5%/y to 2010. The third main sector of the coatings industry, special-purpose coatings, generated sales of $18 bn in 2005 or just below 20% of total market. The overall market is projected to grow an average 5.4%/y to 2010. Pacific Asia and Eastern Europe emerged as the fastest-growing markets between 2001 and 2005 with average growth of 6.5%/y and 10.7%/y, respectively. China’s average growth rate was pegged at 23%/y during the same period. A bar graph describes global sales of coatings in 2001-2010. A pie chart shows value sales of coatings by region in 2005. ICIS Chemical Business, 26 Jun 2006, (Website: http://icischemicalbusiness.com)
MARKETS Architectural powder coatings Painting the future A report compiled by Euromonitor International for Akzo Nobel AUGUST 2006
The global powder coatings market is currently valued at more than $3 bn and has
C O AT I N G S registered significant growth over the past 25 years through 2006. Such growth is now moderating in step with general economic circumstances in more mature markets, such as Europe. Double-digit growth continues to be seen in other markets. Powder producers are faced with the challenge to develop newer technologies to enter into new markets where powder has no current applications, such as in wood coatings. With new technological achievements, prospects also exist for powders in geographic markets such as in the Middle East, where environmental conditions require higher performance properties, like powders with considerably enhanced exterior durability that can substitute liquid paints. Akzo Nobel’s European marketing manager at the recent Middle East Coatings Show 2006 presented a paper on these opportunities. A pie chart illustrates the global market for powder coatings by region in 2004. Another pie chart shows current share of alternative architectural finishes, expressed in potential powder volume tonnes. PPCJ, Polymers, Paint, Colour Journal, Jun 2006, 196 (4501), 20,22-23
Powder focus at CEPE AGM The powder coatings market is growing although Asia is ahead of Europe. According to Matthew Osmond of Akzo Nobel, this market was continuing to grow at 7%, while North America was stagnating, Eastern Europe was surging ahead of its Western counterparts (18% versus 2%) and Asia, as expected, was growing explosively at 14%. Asia now accounts for roughly 37% of the world market, followed by Europe with 36%. Within Europe, the UK was losing ground, Germany was constant, and Turkey was booming. The EU Powder Coating Sector Group is composed of 15 companies. Monitoring of the Solvent 7
Akzo Nobel seeks approval for company split On 7 Sep 2006 approval will be sought at an extraordinary shareholders meeting for the splitting of Akzo Nobel into two independent companies: Akzo Nobel (coatings and chemicals) and Organon Biosciences (human and veterinary pharmaceuticals). This will preferably be carried out by selling a minority shareholding in Organon Biosciences before carrying through a complete separation of the companies within 2-3 years. Het Financieele Dagblad, 15 Aug 2006, (Website: http://www.fd.nl/) (in Dutch)
ON
POWDER
highlights the strong growth prospects of the global market for paints and coatings, mainly due to strong demand in Asia and eastern Europe. The report said the average US household, compared with only $19 in China, spends an estimated $169 on coatings. However, China’s coatings consumption continues to increase. The country is the world’s second leading market for paints and coatings, with sales value nearly doubling between 2001 and 2005. The coatings sector in China is expected to grow 63% by 2010. The report estimated the value of the global coatings market in 2005 at $85.7 bn, equal to approximately 27 bn litres of paint. Decorative coatings represented $38.6 bn, or nearly half of sales, with projections placing the sector’s growth at roughly 5.5%/y to 2010. The industrial coatings sector represented roughly 36% of total sales in 2005 and is projected to climb 5.9%/y to 2010. Powder coatings, the industrial coatings segment which grew an average of 10.3%/y between 2001 and 2005, are forecast to grow at an average 11.5%/y to 2010. The third main sector of the coatings industry, special-purpose coatings, generated sales of $18 bn in 2005 or just below 20% of total market. The overall market is projected to grow an average 5.4%/y to 2010. Pacific Asia and Eastern Europe emerged as the fastest-growing markets between 2001 and 2005 with average growth of 6.5%/y and 10.7%/y, respectively. China’s average growth rate was pegged at 23%/y during the same period. A bar graph describes global sales of coatings in 2001-2010. A pie chart shows value sales of coatings by region in 2005. ICIS Chemical Business, 26 Jun 2006, (Website: http://icischemicalbusiness.com)
MARKETS Architectural powder coatings Painting the future A report compiled by Euromonitor International for Akzo Nobel AUGUST 2006
The global powder coatings market is currently valued at more than $3 bn and has
C O AT I N G S registered significant growth over the past 25 years through 2006. Such growth is now moderating in step with general economic circumstances in more mature markets, such as Europe. Double-digit growth continues to be seen in other markets. Powder producers are faced with the challenge to develop newer technologies to enter into new markets where powder has no current applications, such as in wood coatings. With new technological achievements, prospects also exist for powders in geographic markets such as in the Middle East, where environmental conditions require higher performance properties, like powders with considerably enhanced exterior durability that can substitute liquid paints. Akzo Nobel’s European marketing manager at the recent Middle East Coatings Show 2006 presented a paper on these opportunities. A pie chart illustrates the global market for powder coatings by region in 2004. Another pie chart shows current share of alternative architectural finishes, expressed in potential powder volume tonnes. PPCJ, Polymers, Paint, Colour Journal, Jun 2006, 196 (4501), 20,22-23
Powder focus at CEPE AGM The powder coatings market is growing although Asia is ahead of Europe. According to Matthew Osmond of Akzo Nobel, this market was continuing to grow at 7%, while North America was stagnating, Eastern Europe was surging ahead of its Western counterparts (18% versus 2%) and Asia, as expected, was growing explosively at 14%. Asia now accounts for roughly 37% of the world market, followed by Europe with 36%. Within Europe, the UK was losing ground, Germany was constant, and Turkey was booming. The EU Powder Coating Sector Group is composed of 15 companies. Monitoring of the Solvent 7