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Dow commercializes speciality polymers line
POW503 21/5/03 11:33 am Page 6
(Black plate) Production3 Macintosh HD:Focus 2003:Powder Coatings:
F O C US pill and an anti-depressant. In addition, the sales strength in the most important pharmaceuticals market, America, was inadequate. Akzo Nobel’s paints division struggled with the low economic growth and negative currency development but has an excellent spread in its portfolio, both in terms of geography and products. The chemicals division is generating a healthy cash flow and is managing to maintain good profitability despite the cyclical nature of the market. Het Financieele Dagblad, 11 Apr 2003, (Website: http://www.fd.nl/) (in Dutch)
Dow commercializes speciality polymers line A new range of functionalized polymers has been launched by Dow Chemical from its speciality polymers unit that was created during 2002 to expand sales into high-margin applications. The new range includes maleic anhydridegrafted polymers, ethylene vinyl acetate copolymers and ethylene ethyl acrylate copolymers. Target applications include thermoplastic powder coatings, compounding, tie layers and adhesives. Dow intends to add 6 more new products to the line in the near future. Dow hopes to double its 5-10% market share in the new targeted segment within 3-5 years. Speciality polymers account for around 5% of Dow’s total PO&E sales volumes. Chemical Week, 23 Apr 2003, 165 (15), 24
Industrias Titan acquired Tintas Leme Spanish paint manufacturer Industrias Titan has acquired a 90 % stake in Portuguese counterpart Tintas Leme, specializing in industrial paints, for €12M. The move is intended to strengthen the Spanish company’s operations in this segment and to increase its presence in Portugal, competing 6
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with Corporacao Industrial do Norte (CIN), the largest shareholder of Barnices Valentine, Titan’s principal competitor in Spain. At this moment Industrias Titan is in first place in the ranking of manufacturers of decorative paints in Spain. European Coatings Flash, 5 May 2003, (Website: http://www.coatings.de/index.cfm)
Benda-Lutz International Holding Benda-Lutz, an international metal pigments manufacturer, started production of Blitz Powder Coating Bonding Service in Taiwan in Mar 2003. Benda-Lutz also operates production facilities in Austria and the US. Farbe und Lack, May 2003, 109 (5), 80 (in German)
New Dow epoxy plant in China The Dow Chemical Co announced the start-up of production at the company’s 41,000 tonnes/y epoxy resin plant at the Zhangjiagang site in China. The facility will produce solid epoxy resin used primarily in powder coatings, solid solution epoxy resins for marine and protective liquid coatings, and brominated epoxy resins for the production of electrical laminates. Markets for those end uses have experienced double-digit growth rates in China, according to Phil Cook, Dow’s business vice president for Epoxy Products and Intermediates. The new plant will supply resins to China, other Asian countries and Australia. European News Flash. 19 May 2003, (Website: http://www.coatings.de/index.cfm)
MARKETS New applications and technologies to foster growth of powder coating markets, says Frost & Sullivan Evolving applications for nonmetallic substrates are likely to
C OAT I N G S boost the growth of powder coating markets in the US. Some of these non-metallic substrates include wood and medium density fibreboard, and powder clear coats for automotive bodies. Customer preference for powder coating is increasing, as these formulations do not figure in the hazardous air pollutants list of the Environmental Protection Agency (EPA). New analysis from Frost & Sullivan, US Powder Coating Market, reveals that this market generated revenues worth $727 M in 2002 and is likely to reach $1.1 bn in 2009. Frost & Sullivan said that although the overall market will witness high growth, consumption rates in certain applications are waning due to the shift in manufacturing base of appliances to low-cost AsiaPacific region and intense rivalry from Chinese powder manufacturers. The resultant excess capacity and decline in profits is leading to severe price competition and limiting investments in research and development. Lack of product differentiation and increasing competition from alternate technologies that adhere to EPA regulations are posing stiff challenges to manufacturers. It further said that the focus on market requirements and development of new applications such as low-temperature cure powder for wood and plastics, along with improvement in powder processing technologies would significantly reduce customer churn. The move towards a commodity-type market is triggering industry-wide consolidations. Therefore, smaller firms are focusing on applicationspecific products and regional markets to avoid mergers with larger firms. Superior performance features such as cross-linking with substrates, durability, and weatherability, favour the use of powder coatings. Automotive and appliance segments will benefit from technological developments such as ‘mar and scratch’ resistant powder and reduction of MAY 2003
(Black plate) Production3 Macintosh HD:Focus 2003:Powder Coatings:
F O C US pill and an anti-depressant. In addition, the sales strength in the most important pharmaceuticals market, America, was inadequate. Akzo Nobel’s paints division struggled with the low economic growth and negative currency development but has an excellent spread in its portfolio, both in terms of geography and products. The chemicals division is generating a healthy cash flow and is managing to maintain good profitability despite the cyclical nature of the market. Het Financieele Dagblad, 11 Apr 2003, (Website: http://www.fd.nl/) (in Dutch)
Dow commercializes speciality polymers line A new range of functionalized polymers has been launched by Dow Chemical from its speciality polymers unit that was created during 2002 to expand sales into high-margin applications. The new range includes maleic anhydridegrafted polymers, ethylene vinyl acetate copolymers and ethylene ethyl acrylate copolymers. Target applications include thermoplastic powder coatings, compounding, tie layers and adhesives. Dow intends to add 6 more new products to the line in the near future. Dow hopes to double its 5-10% market share in the new targeted segment within 3-5 years. Speciality polymers account for around 5% of Dow’s total PO&E sales volumes. Chemical Week, 23 Apr 2003, 165 (15), 24
Industrias Titan acquired Tintas Leme Spanish paint manufacturer Industrias Titan has acquired a 90 % stake in Portuguese counterpart Tintas Leme, specializing in industrial paints, for €12M. The move is intended to strengthen the Spanish company’s operations in this segment and to increase its presence in Portugal, competing 6
O N
POWDER
with Corporacao Industrial do Norte (CIN), the largest shareholder of Barnices Valentine, Titan’s principal competitor in Spain. At this moment Industrias Titan is in first place in the ranking of manufacturers of decorative paints in Spain. European Coatings Flash, 5 May 2003, (Website: http://www.coatings.de/index.cfm)
Benda-Lutz International Holding Benda-Lutz, an international metal pigments manufacturer, started production of Blitz Powder Coating Bonding Service in Taiwan in Mar 2003. Benda-Lutz also operates production facilities in Austria and the US. Farbe und Lack, May 2003, 109 (5), 80 (in German)
New Dow epoxy plant in China The Dow Chemical Co announced the start-up of production at the company’s 41,000 tonnes/y epoxy resin plant at the Zhangjiagang site in China. The facility will produce solid epoxy resin used primarily in powder coatings, solid solution epoxy resins for marine and protective liquid coatings, and brominated epoxy resins for the production of electrical laminates. Markets for those end uses have experienced double-digit growth rates in China, according to Phil Cook, Dow’s business vice president for Epoxy Products and Intermediates. The new plant will supply resins to China, other Asian countries and Australia. European News Flash. 19 May 2003, (Website: http://www.coatings.de/index.cfm)
MARKETS New applications and technologies to foster growth of powder coating markets, says Frost & Sullivan Evolving applications for nonmetallic substrates are likely to
C OAT I N G S boost the growth of powder coating markets in the US. Some of these non-metallic substrates include wood and medium density fibreboard, and powder clear coats for automotive bodies. Customer preference for powder coating is increasing, as these formulations do not figure in the hazardous air pollutants list of the Environmental Protection Agency (EPA). New analysis from Frost & Sullivan, US Powder Coating Market, reveals that this market generated revenues worth $727 M in 2002 and is likely to reach $1.1 bn in 2009. Frost & Sullivan said that although the overall market will witness high growth, consumption rates in certain applications are waning due to the shift in manufacturing base of appliances to low-cost AsiaPacific region and intense rivalry from Chinese powder manufacturers. The resultant excess capacity and decline in profits is leading to severe price competition and limiting investments in research and development. Lack of product differentiation and increasing competition from alternate technologies that adhere to EPA regulations are posing stiff challenges to manufacturers. It further said that the focus on market requirements and development of new applications such as low-temperature cure powder for wood and plastics, along with improvement in powder processing technologies would significantly reduce customer churn. The move towards a commodity-type market is triggering industry-wide consolidations. Therefore, smaller firms are focusing on applicationspecific products and regional markets to avoid mergers with larger firms. Superior performance features such as cross-linking with substrates, durability, and weatherability, favour the use of powder coatings. Automotive and appliance segments will benefit from technological developments such as ‘mar and scratch’ resistant powder and reduction of MAY 2003