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Japanese paint production heading for another fall
F O C US tonnes in terms of volume and by 4.6% to $80 bn in terms of value by 2003. Continued expansion in North America, favourable demand in Canada and Mexico, and anticipated recovery in Asian markets of China, Thailand, and South Korea is likely to add on to the industry world-wide. Also, shift to emulsion-based latex paints from solvent-based oil paints in the decorative paints segment. Reformulation strategies in the industrial paints segment, better growth in agricultural and industrial sectors, improvement in overall economic growth, good performance from industries like construction and automobiles etc, and improvement in consumer income and buying capacity could result as crucial demand drivers of the industry. Indian paints industry, with a very low base per capita consumption of 450-500 gms, still holds a promise with increasing population and growing housing sector. Chemical Engineering World, Dec 2002, 37 (12), 84
Bleak outlook for German paint and coatings manufacturers The article reviews the situation in the German paints and coatings market in 2002 based on company surveys. According to the German Chemical Industry Association, domestic production of paints, printing inks and putty decreased by 2.5% in 3Q 2002. Figure 1 illustrates the production of paints and coatings in Germany in 1H 2002. Production of emulsion paint increased by 0.5% to 771,981 tonnes, production of solvent-based paints and coatings decreased by 5.7% to 270,955 tonnes, and production powder coatings dropped 6.5% to 30,961 tonnes. Figure 2 illustrates German production of printing inks in 1H 2001 and 1H 2002. Production increased by 1.4% to 223,968 tonnes in 2002. Figure 3 illustrates the situation in the raw materials market. Table 1 lists MARCH 2003
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important take-overs and acquisitions in the German paints and coatings market in 2002. Table 2 lists significant changes in the coatings industry for 2002. And table 3 lists capacity reductions and closures in this segment. Farbe und Lack, Jan 2003, 109 (1), 18-21 (in German)
Japanese paint production heading for another fall Japan’s paint production fell by 4.4% from 1.29 M tonnes in calendar year 2000 to 1.24 M tonnes 2001. The value of total shipments fell below the Yen 700 bn level for the first time since the 1980s and, judging from the latest data, it looks as though the situation is getting worse. Production in Jan-Aug 2002 was only 786,000 tonnes, compared against 823,200 tonnes for the equivalent period of 2001 and 845,100 tonnes for the equivalent period of 2000. The split between the architectural and industrial sectors of the paint market is around 30:70 in Japan, in contrast to the 50:50 split that is typical of most other industrialized countries. Combined sales for the top ten Japanese paintmakers are forecast to rise by 1.2% from Yen 624.5 bn in the year ending Mar 2002 to Yen 632.2 bn in the current fiscal year. However, this would still be over 3% lower than the Yen 654.4 bn achieved in fiscal year 2000/01. Combined operating profits are forecast to rebound to Yen 29 bn this year, compared against Yen 23 bn last year and nearly Yen 31 bn in the previous year. Nippon Paint and Kansai Paint, the country’s two leading paintmakers, are both major competitors in world markets for automotive paints, with paint manufacturing facilities in a number of markets in Asia and elsewhere. Both companies report strong demand for automotive paints in world markets in 2002. Nippon Paint has recently started-up production
C OAT I N G S at two new industrial and automotive paint plants in China (at Shanghai and Robou) and plans to commission a third plant in Guangdong province in early 2003. Kansai Paint is also investing in China, notably in automotive paint production, in collaboration with DuPont, building on existing technology links with DuPont in Europe and the US. Nihon Tokushu is a prominent supplier of anticorrosion paints for various industrial applications; it is now expanding into the home decorating and home maintenance sector. Nihon Tokushu has also emerged as a leading specialist in the manufacture of soundproofing materials and it recently set up a large US plant in collaboration with a local joint venture partner, Global Industries Inc. Rock Paint is the country’s largest supplier of vehicle refinishing and repair paints, but to cope with stagnant demand, it has closed its manufacturing facilities in Osaka and Tokyo, converting them to distribution centres. The company is also building up its business in industrial powder coatings and to that end it recently expanded capacity by 50% at its Inuyama plant. Isamu Paint is also prominent in the vehicle refinishing sector, but it sees its main opportunities for growth as coming from developing its reputation for custom-made industrial paint formulations. All the leading Japanese paintmakers have significant research programmes, aimed at supporting future growth. Dai Nippon Toryo and Nippon Paint are actively developing new types of paint for plastic surfaces. Shinto Paint (part of the Sumitomo group) is keen to develop markets for its specialist mixed in release paints, water-based industrial paints and powder coatings. Tohpe (part of the Furukawa group) is also concentrating on niche sectors, notably paints for road traffic signs and for coating leather surfaces. For 2002 at least, 7
F O C U S pigment suppliers are going to find it difficult to increase sales to the Japanese paint industry and the generally weak levels of profitability within the industry will exacerbate the problems of trying to raise pigment prices. Focus on Pigments, Sep 2002, 1-2
EVENTS Institute of Corrosion – One Day Seminar A one day seminar devoted to powder coatings will take place on Wed 4 Jun 2003. The seminar “Advances in Powder Coatings; Growth Opportunities and Market Penetration” will be held at The Brearley Centre, AvestaPolarit, Sheffield, UK.
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Programme 09.45-10.00 – Welcome by Roger Hudson, Chairman, Yorkshire Branch.
10.00-10.30 – Keynote Address: “Growth of Corrosion Resistant Powder Coatings” – Sid Harris, Consultant. 10.30-11.00 – “Powder Coatings; New Challenges, New Substrates” – Allen Walker, Technical Manager, Jotun Powder Coatings Ltd. 11.15-11.45 – ”New Advances in High Speed Curing for Powder Coatings” – Martin Holliday, Technical Director, DuPont Powder Coatings, UK. 11.45-12.15 – “Powder Coating Technology Continues to Expand the Array of Substrates Available to Finish” – Mark Patterson, Akzo
Focus on Powder Coatings (ISSN 1364-5439) is published monthly by Elsevier Advanced Technology, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK. 2003 annual subscription rate: US$798/€713/¥94,700, additional copies to the same address US$266/€238/¥31,600. Orders and enquiries International Sales Department, Elsevier Advanced Technology, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK. Tel: +44 (0) 1865 843687. Fax: +44 (0) 1865 843971. E-mail: [email protected] For US orders Elsevier Science Customer Support Department, PO Box 945, New York NY 10010, USA. Tel: (+1) 212 633 3730. Fax: (+1) 212 633 3680. E-mail: [email protected] Other Locations Elsevier Science Customer Support Department, PO Box 211, 1000 AE Amsterdam, The Netherlands. Tel: (+31) 20 3853757. Fax: (+31) 20 4853432. E-mail: [email protected] © 2003 Elsevier Science Ltd. All rights reserved.
C OAT I N G S Nobel Powder Coatings Ltd.
12.15-12.25 – Questions and Discussion. 14.15-14.45 – “Powder Booths with Quick Colour Change Facilities” – Mike Whetton, Sames UK. 14.45-15.15 – “Visions of Powder Coating Formulations” – Philip Green, BASF Coatings Ltd. 15.30-16.00 – “Long Life, Low Maintenance Finishes on Architectural Metalwork” Phil Roberts, Sales Director, Medway Galvanizing Co Ltd. 16.00-16.30 – Open Discussion and Final Questions. Registration forms are available from The Institute of Corrosion, Vimy Court, Leighton Buzzard, LU7 1FG, UK. Tel: (0)1525 851771. Fax: 01525 376690. E-mail: [email protected]
Permissions may be sought directly from Elsevier Science Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK. Tel: (+44) 1865 843830. Fax: (+44) 1865 853333. E-mail: [email protected]. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then ‘Permissions Query Form’. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Typeset by Land & Unwin, Bugbrooke Printed by Mayfield Press (Oxford)
Bleak outlook for German paint and coatings manufacturers The article reviews the situation in the German paints and coatings market in 2002 based on company surveys. According to the German Chemical Industry Association, domestic production of paints, printing inks and putty decreased by 2.5% in 3Q 2002. Figure 1 illustrates the production of paints and coatings in Germany in 1H 2002. Production of emulsion paint increased by 0.5% to 771,981 tonnes, production of solvent-based paints and coatings decreased by 5.7% to 270,955 tonnes, and production powder coatings dropped 6.5% to 30,961 tonnes. Figure 2 illustrates German production of printing inks in 1H 2001 and 1H 2002. Production increased by 1.4% to 223,968 tonnes in 2002. Figure 3 illustrates the situation in the raw materials market. Table 1 lists MARCH 2003
O N
POWDER
important take-overs and acquisitions in the German paints and coatings market in 2002. Table 2 lists significant changes in the coatings industry for 2002. And table 3 lists capacity reductions and closures in this segment. Farbe und Lack, Jan 2003, 109 (1), 18-21 (in German)
Japanese paint production heading for another fall Japan’s paint production fell by 4.4% from 1.29 M tonnes in calendar year 2000 to 1.24 M tonnes 2001. The value of total shipments fell below the Yen 700 bn level for the first time since the 1980s and, judging from the latest data, it looks as though the situation is getting worse. Production in Jan-Aug 2002 was only 786,000 tonnes, compared against 823,200 tonnes for the equivalent period of 2001 and 845,100 tonnes for the equivalent period of 2000. The split between the architectural and industrial sectors of the paint market is around 30:70 in Japan, in contrast to the 50:50 split that is typical of most other industrialized countries. Combined sales for the top ten Japanese paintmakers are forecast to rise by 1.2% from Yen 624.5 bn in the year ending Mar 2002 to Yen 632.2 bn in the current fiscal year. However, this would still be over 3% lower than the Yen 654.4 bn achieved in fiscal year 2000/01. Combined operating profits are forecast to rebound to Yen 29 bn this year, compared against Yen 23 bn last year and nearly Yen 31 bn in the previous year. Nippon Paint and Kansai Paint, the country’s two leading paintmakers, are both major competitors in world markets for automotive paints, with paint manufacturing facilities in a number of markets in Asia and elsewhere. Both companies report strong demand for automotive paints in world markets in 2002. Nippon Paint has recently started-up production
C OAT I N G S at two new industrial and automotive paint plants in China (at Shanghai and Robou) and plans to commission a third plant in Guangdong province in early 2003. Kansai Paint is also investing in China, notably in automotive paint production, in collaboration with DuPont, building on existing technology links with DuPont in Europe and the US. Nihon Tokushu is a prominent supplier of anticorrosion paints for various industrial applications; it is now expanding into the home decorating and home maintenance sector. Nihon Tokushu has also emerged as a leading specialist in the manufacture of soundproofing materials and it recently set up a large US plant in collaboration with a local joint venture partner, Global Industries Inc. Rock Paint is the country’s largest supplier of vehicle refinishing and repair paints, but to cope with stagnant demand, it has closed its manufacturing facilities in Osaka and Tokyo, converting them to distribution centres. The company is also building up its business in industrial powder coatings and to that end it recently expanded capacity by 50% at its Inuyama plant. Isamu Paint is also prominent in the vehicle refinishing sector, but it sees its main opportunities for growth as coming from developing its reputation for custom-made industrial paint formulations. All the leading Japanese paintmakers have significant research programmes, aimed at supporting future growth. Dai Nippon Toryo and Nippon Paint are actively developing new types of paint for plastic surfaces. Shinto Paint (part of the Sumitomo group) is keen to develop markets for its specialist mixed in release paints, water-based industrial paints and powder coatings. Tohpe (part of the Furukawa group) is also concentrating on niche sectors, notably paints for road traffic signs and for coating leather surfaces. For 2002 at least, 7
F O C U S pigment suppliers are going to find it difficult to increase sales to the Japanese paint industry and the generally weak levels of profitability within the industry will exacerbate the problems of trying to raise pigment prices. Focus on Pigments, Sep 2002, 1-2
EVENTS Institute of Corrosion – One Day Seminar A one day seminar devoted to powder coatings will take place on Wed 4 Jun 2003. The seminar “Advances in Powder Coatings; Growth Opportunities and Market Penetration” will be held at The Brearley Centre, AvestaPolarit, Sheffield, UK.
O N
POWDER
Programme 09.45-10.00 – Welcome by Roger Hudson, Chairman, Yorkshire Branch.
10.00-10.30 – Keynote Address: “Growth of Corrosion Resistant Powder Coatings” – Sid Harris, Consultant. 10.30-11.00 – “Powder Coatings; New Challenges, New Substrates” – Allen Walker, Technical Manager, Jotun Powder Coatings Ltd. 11.15-11.45 – ”New Advances in High Speed Curing for Powder Coatings” – Martin Holliday, Technical Director, DuPont Powder Coatings, UK. 11.45-12.15 – “Powder Coating Technology Continues to Expand the Array of Substrates Available to Finish” – Mark Patterson, Akzo
Focus on Powder Coatings (ISSN 1364-5439) is published monthly by Elsevier Advanced Technology, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK. 2003 annual subscription rate: US$798/€713/¥94,700, additional copies to the same address US$266/€238/¥31,600. Orders and enquiries International Sales Department, Elsevier Advanced Technology, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK. Tel: +44 (0) 1865 843687. Fax: +44 (0) 1865 843971. E-mail: [email protected] For US orders Elsevier Science Customer Support Department, PO Box 945, New York NY 10010, USA. Tel: (+1) 212 633 3730. Fax: (+1) 212 633 3680. E-mail: [email protected] Other Locations Elsevier Science Customer Support Department, PO Box 211, 1000 AE Amsterdam, The Netherlands. Tel: (+31) 20 3853757. Fax: (+31) 20 4853432. E-mail: [email protected] © 2003 Elsevier Science Ltd. All rights reserved.
C OAT I N G S Nobel Powder Coatings Ltd.
12.15-12.25 – Questions and Discussion. 14.15-14.45 – “Powder Booths with Quick Colour Change Facilities” – Mike Whetton, Sames UK. 14.45-15.15 – “Visions of Powder Coating Formulations” – Philip Green, BASF Coatings Ltd. 15.30-16.00 – “Long Life, Low Maintenance Finishes on Architectural Metalwork” Phil Roberts, Sales Director, Medway Galvanizing Co Ltd. 16.00-16.30 – Open Discussion and Final Questions. Registration forms are available from The Institute of Corrosion, Vimy Court, Leighton Buzzard, LU7 1FG, UK. Tel: (0)1525 851771. Fax: 01525 376690. E-mail: [email protected]
Permissions may be sought directly from Elsevier Science Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK. Tel: (+44) 1865 843830. Fax: (+44) 1865 853333. E-mail: [email protected]. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then ‘Permissions Query Form’. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Typeset by Land & Unwin, Bugbrooke Printed by Mayfield Press (Oxford)