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Integration of Ciba: BASF specifies restructuring plans
F O C U S sector, which supplies and exports products to Europe. The legislation requires companies to provide detailed data on product composition and application of preparations. Reacting to this requirement, a major Indian producer deems that REACH increases chances for unfair competition and production of counterfeit products since this makes company trade secrets available to direct competitors. Paint makers, particularly SMEs, may become disinclined to invest in research and development with the goal of coming up with higher quality products. Another key producer noted that the legislation would make exporting to EU customers more expensive as the complying process will incur additional costs. On the positive side, REACH would help prompt Indian paints and coating manufacturers to shift towards an eco-friendly, ‘green’ orientation with such products as powder coatings, water-based coatings and thermal insulation coatings, in keeping with global developments. (1 crore =10 M, 1 lakh =100,000). APCJ, Asia Pacific Coatings Journal, Jun 2009, 22 (3), 25-26
Top 25 paint manufacturers in Asia Pacific: Berger Indian firm Berger Paints India Ltd reported sales growth of 15.1% to Rup 15,217 M in 2007 compared with Rup 13,222 M in 2006. Paint sales accounted for 100% of group sales. Of the total sales figure, 73% came from the decorative professional segment, 10% from automotive, 3% from industrial, 3% from powder, and 11% from protective segment. Coatings volume totalled 211 M litres. Berger employs 2179 workers. In 2008, the firm purchased Polish firm Bolix SA, which has masonry finish sales of $45.5 M. APCJ, Asia Pacific Coatings Journal, Jun 2009, 22 (3), 35
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DuPont to axe 2000 jobs DuPont will dissolve 2000 positions, or around 3% of its headcount, as part of a restructuring initiative intended to generate savings of $225 M/y by 2010. Affected segments include coatings and colour technologies, and electronics and communications technologies. PPCJ, Polymers, Paint, Colour Journal, Jun 2009, 199 (4537), 7
Protech to buy Govesan Canada’s Protech/Oxyplast Group has agreed to acquire the North American powder coatings operations of Govesan Manufacturing. PPCJ, Polymers, Paint, Colour Journal, Jun 2009, 199 (4537), 8
Investing for the future: report on DSM Powder Coating Resins’ expertise and vision within the powder coatings resins industry DSM Powder Coating Resins has preserved the consistency of its services and products by continuously investing in its global production structure as well as concentrating on powder coating resin technology innovations to promote industry growth. DSM will take advantage of its technological advantage to create products that will serve as alternatives to liquid coating systems, either in metal, plastic or wood applications. The company recently rolled out a number of resin technologies from its innovation pipeline. Uralac EasyCure polyester resin for outdoor applications delivers a combination of fast-cure and good flow qualities with no blooming problems. Uralac Corres offers outstanding corrosion protection up to C4 level, plus the possibility of removing the pre-treatment process. Uralac HiTone is a new resin family that enables the preparation of powder coatings
C OAT I N G S with good aesthetic qualities for thin-layer applications. PPCJ, Polymers, Paint, Colour Journal, Jun 2009, 199 (4537), 16-17
Tikkurila acquires 2 Russian coatings manufacturers Finnish company Tikkurila (responsible for the paints and coatings business of Kemira) acquired the remaining 30% stakes in 2 coatings manufacturers in St Petersburg in Russia. OOO Gamma Industrial Coatings manufactures coatings for the metal industry, and OOO Tikkurila Powder Coatings manufactures powder coatings. After the transaction Tikkurila will own a 100% stake in both companies. Tikkurila currently operates 5 coatings plants in Russia. Farbe und Lack, Jul 2009, 115 (7), 8 (in German)
Expansion. EMS-Griltech invests in Switzerland EMS Griltech plans to invest in its production facility for powder coating cross-linking agents. The company will expand the production capacities at the site in Domat/Ems in Switzerland to supply and production bottlenecks. The expansion is scheduled for completion in Oct 2009. EMS Griltech expects that demand for powder coating crosslinking agents will improve by autumn 2009. Farbe und Lack, Jul 2009, 115 (7), 15 (in German)
Integration of Ciba: BASF specifies restructuring plans BASF has finalized its plans for the integration of Ciba Holding AG, which it acquired in Apr 2009. Former Ciba businesses are to be integrated into the operating divisions in BASF’s Performance Products segment AUGUST 2009
F O C U S where their potential can best be realized and developed. The integration will involve extensive restructuring measures that BASF expects to generate synergies of at least €400 M per year from 2012. By end 2010, savings of approximately €300 M are to be achieved. At the same time, the integration process is expected to entail cash costs totalling approximately €550 M, about €150 M thereof in 2009. BASF will report details of non-cash integration costs as part of its 2Q 2009 interim reporting on 30 Jul 2009. The restructuring plans include a reduction of approximately 3700 positions by 2013, the majority of which will be eliminated by end 2010. BASF is reviewing strategic options (including restructuring, sale or closure) for 23 of the 55 former Ciba production sites worldwide. Decisions will be made about these sites by end 1Q 2010. The remaining 32 production sites are to be optimized as part of BASF’s global production network or restructured. By end 2010, BASF also aims to consolidate 36 of the former Ciba’s 70 sales and administrative offices and research sites with existing BASF activities. The company will retain a strong presence in the Basel region. BASF’s new Paper Chemicals division, formed in Apr 2009, and the 2 associated business units (Coatings and Starch Europe and Wet End Chemicals) have been based in Basel since 1 Jul 2009. In addition, the European business unit for plastic additives and the global units for technology management and the restructuring of the pigments business have been relocated to the former headquarters of Ciba Holding AG in Basel. BASF is also establishing a new Business Centre Switzerland in Basel that will function as a service platform for sales, finance, human resources and other activities. A BASF research centre will be based in Basel as well. AUGUST 2009
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Ciba’s and BASF’s paper businesses will be bundled and restructured within the newly formed Paper Chemicals division. BASF will become a world leader with a comprehensive portfolio in a market that is currently undergoing major structural transformation. All Ciba’s coatings effects activities are to be integrated into BASF’s Dispersions and Pigments division, which is organized in regional business units. BASF will become the world’s secondlargest provider of raw materials for the coatings and paints industry. Ciba’s plastic additives business will be integrated into the Performance Chemicals division. This will extend BASF’s portfolio to cover important product segments such as UV stabilizers and antioxidants, making BASF the world leader in plastic additives. The majority of Ciba’s water treatment business will be integrated into the Performance Chemicals division. A strategy for the water treatment business will be developed by 2010. Ciba’s Home and Personal Care business will be integrated into the existing structure of the Care Chemicals division. Press release from: BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com (6 Jul 2009)
AkzoNobel opens powder coatings technology centre in China On 8 Jun 2008, AkzoNobel opened a new technology centre for powder coatings at Ningbo in Zhejiang province, China, adjacent to an existing production facility. The centre features a state-of-the-art laboratory and will be staffed by 20 scientists and technicians organized into centres of expertise for the automotive, architectural, furniture, domestic appliance, IT, and industrial end markets. Marketing teams at the same location will enable R&D to be coordinated with customer requirements. The new centre will help to consolidate AkzoNobel’s
C OAT I N G S position as the leading producer of powder coatings in addition to highlighting the importance of China in its global strategy. China Chemical Reporter, 26 Jun 2009, 20 (18), 12
DuPont realigns industrial coatings business in Americas DuPont has restructured its Industrial Coating Solutions unit in the Americas as part of efforts to improve quality of service to customers. The company aims to create a lean and responsive organization responsible for its liquid, powder and e-coat products and services. The Industrial Coating Solutions division is under DuPont Performance Coatings, which also includes the OEM Automotive and Refinish units. Coatings World, Jun 2009, 14 (6), 10-11
Rohm and Haas Powder Coatings announce changes in Spain Rohm and Haas has announced plans to exit its current powder coating production site at Castellon, Spain, and build a new and smaller facility in the same area. This transition will occur throughout the rest of 2009 and into 2010. It reflects the company’s continued drive for customer excellence in terms of rapid product development and turnaround of made to order products, in addition to its already extensive made to stock Claymore range of 800 products, introduced in 2008 across all of Europe. Xavier Susterac, General Manager Europe for Powder Coatings states, “Despite the challenges of the current economic climate, through the introduction of our pan-European Fast-Track development model and the re-engineering of our manufacturing footprint, we are demonstrating our commitment to the very important Spanish powder coatings market. This new set up will be less extensive 5
Top 25 paint manufacturers in Asia Pacific: Berger Indian firm Berger Paints India Ltd reported sales growth of 15.1% to Rup 15,217 M in 2007 compared with Rup 13,222 M in 2006. Paint sales accounted for 100% of group sales. Of the total sales figure, 73% came from the decorative professional segment, 10% from automotive, 3% from industrial, 3% from powder, and 11% from protective segment. Coatings volume totalled 211 M litres. Berger employs 2179 workers. In 2008, the firm purchased Polish firm Bolix SA, which has masonry finish sales of $45.5 M. APCJ, Asia Pacific Coatings Journal, Jun 2009, 22 (3), 35
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DuPont to axe 2000 jobs DuPont will dissolve 2000 positions, or around 3% of its headcount, as part of a restructuring initiative intended to generate savings of $225 M/y by 2010. Affected segments include coatings and colour technologies, and electronics and communications technologies. PPCJ, Polymers, Paint, Colour Journal, Jun 2009, 199 (4537), 7
Protech to buy Govesan Canada’s Protech/Oxyplast Group has agreed to acquire the North American powder coatings operations of Govesan Manufacturing. PPCJ, Polymers, Paint, Colour Journal, Jun 2009, 199 (4537), 8
Investing for the future: report on DSM Powder Coating Resins’ expertise and vision within the powder coatings resins industry DSM Powder Coating Resins has preserved the consistency of its services and products by continuously investing in its global production structure as well as concentrating on powder coating resin technology innovations to promote industry growth. DSM will take advantage of its technological advantage to create products that will serve as alternatives to liquid coating systems, either in metal, plastic or wood applications. The company recently rolled out a number of resin technologies from its innovation pipeline. Uralac EasyCure polyester resin for outdoor applications delivers a combination of fast-cure and good flow qualities with no blooming problems. Uralac Corres offers outstanding corrosion protection up to C4 level, plus the possibility of removing the pre-treatment process. Uralac HiTone is a new resin family that enables the preparation of powder coatings
C OAT I N G S with good aesthetic qualities for thin-layer applications. PPCJ, Polymers, Paint, Colour Journal, Jun 2009, 199 (4537), 16-17
Tikkurila acquires 2 Russian coatings manufacturers Finnish company Tikkurila (responsible for the paints and coatings business of Kemira) acquired the remaining 30% stakes in 2 coatings manufacturers in St Petersburg in Russia. OOO Gamma Industrial Coatings manufactures coatings for the metal industry, and OOO Tikkurila Powder Coatings manufactures powder coatings. After the transaction Tikkurila will own a 100% stake in both companies. Tikkurila currently operates 5 coatings plants in Russia. Farbe und Lack, Jul 2009, 115 (7), 8 (in German)
Expansion. EMS-Griltech invests in Switzerland EMS Griltech plans to invest in its production facility for powder coating cross-linking agents. The company will expand the production capacities at the site in Domat/Ems in Switzerland to supply and production bottlenecks. The expansion is scheduled for completion in Oct 2009. EMS Griltech expects that demand for powder coating crosslinking agents will improve by autumn 2009. Farbe und Lack, Jul 2009, 115 (7), 15 (in German)
Integration of Ciba: BASF specifies restructuring plans BASF has finalized its plans for the integration of Ciba Holding AG, which it acquired in Apr 2009. Former Ciba businesses are to be integrated into the operating divisions in BASF’s Performance Products segment AUGUST 2009
F O C U S where their potential can best be realized and developed. The integration will involve extensive restructuring measures that BASF expects to generate synergies of at least €400 M per year from 2012. By end 2010, savings of approximately €300 M are to be achieved. At the same time, the integration process is expected to entail cash costs totalling approximately €550 M, about €150 M thereof in 2009. BASF will report details of non-cash integration costs as part of its 2Q 2009 interim reporting on 30 Jul 2009. The restructuring plans include a reduction of approximately 3700 positions by 2013, the majority of which will be eliminated by end 2010. BASF is reviewing strategic options (including restructuring, sale or closure) for 23 of the 55 former Ciba production sites worldwide. Decisions will be made about these sites by end 1Q 2010. The remaining 32 production sites are to be optimized as part of BASF’s global production network or restructured. By end 2010, BASF also aims to consolidate 36 of the former Ciba’s 70 sales and administrative offices and research sites with existing BASF activities. The company will retain a strong presence in the Basel region. BASF’s new Paper Chemicals division, formed in Apr 2009, and the 2 associated business units (Coatings and Starch Europe and Wet End Chemicals) have been based in Basel since 1 Jul 2009. In addition, the European business unit for plastic additives and the global units for technology management and the restructuring of the pigments business have been relocated to the former headquarters of Ciba Holding AG in Basel. BASF is also establishing a new Business Centre Switzerland in Basel that will function as a service platform for sales, finance, human resources and other activities. A BASF research centre will be based in Basel as well. AUGUST 2009
O N
POWDER
Ciba’s and BASF’s paper businesses will be bundled and restructured within the newly formed Paper Chemicals division. BASF will become a world leader with a comprehensive portfolio in a market that is currently undergoing major structural transformation. All Ciba’s coatings effects activities are to be integrated into BASF’s Dispersions and Pigments division, which is organized in regional business units. BASF will become the world’s secondlargest provider of raw materials for the coatings and paints industry. Ciba’s plastic additives business will be integrated into the Performance Chemicals division. This will extend BASF’s portfolio to cover important product segments such as UV stabilizers and antioxidants, making BASF the world leader in plastic additives. The majority of Ciba’s water treatment business will be integrated into the Performance Chemicals division. A strategy for the water treatment business will be developed by 2010. Ciba’s Home and Personal Care business will be integrated into the existing structure of the Care Chemicals division. Press release from: BASF SE, D-67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com (6 Jul 2009)
AkzoNobel opens powder coatings technology centre in China On 8 Jun 2008, AkzoNobel opened a new technology centre for powder coatings at Ningbo in Zhejiang province, China, adjacent to an existing production facility. The centre features a state-of-the-art laboratory and will be staffed by 20 scientists and technicians organized into centres of expertise for the automotive, architectural, furniture, domestic appliance, IT, and industrial end markets. Marketing teams at the same location will enable R&D to be coordinated with customer requirements. The new centre will help to consolidate AkzoNobel’s
C OAT I N G S position as the leading producer of powder coatings in addition to highlighting the importance of China in its global strategy. China Chemical Reporter, 26 Jun 2009, 20 (18), 12
DuPont realigns industrial coatings business in Americas DuPont has restructured its Industrial Coating Solutions unit in the Americas as part of efforts to improve quality of service to customers. The company aims to create a lean and responsive organization responsible for its liquid, powder and e-coat products and services. The Industrial Coating Solutions division is under DuPont Performance Coatings, which also includes the OEM Automotive and Refinish units. Coatings World, Jun 2009, 14 (6), 10-11
Rohm and Haas Powder Coatings announce changes in Spain Rohm and Haas has announced plans to exit its current powder coating production site at Castellon, Spain, and build a new and smaller facility in the same area. This transition will occur throughout the rest of 2009 and into 2010. It reflects the company’s continued drive for customer excellence in terms of rapid product development and turnaround of made to order products, in addition to its already extensive made to stock Claymore range of 800 products, introduced in 2008 across all of Europe. Xavier Susterac, General Manager Europe for Powder Coatings states, “Despite the challenges of the current economic climate, through the introduction of our pan-European Fast-Track development model and the re-engineering of our manufacturing footprint, we are demonstrating our commitment to the very important Spanish powder coatings market. This new set up will be less extensive 5