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New Sherwin Williams facility
F O C U S after the implementation of the Asean free trade area (Afta). The implementation of Afta would reduce the tariffs on imported aluminium extrusion products from 15% to 5% within Asean region in Jan 2003. Currently, the company’s Beranang plant has six extrusion presses, a fluorocarbon painting line, a powder coating line and two anodizing lines, including the largest vertical anodizing line in South-East Asia commissioned in last Apr 2002, which increased anodizing capacity to 1350 tonnes/month. A new extrusion line, likely to be commissioned from Nov 2002, is projected to increase the total capacity by 15% to 16%/month. The new line is likely to generate sales revenues between Ringgit 2 M and Ringgit 3 M/month or Ringgit 30 M/y at current raw material prices. For 2003-2004, the company has projected a twoyear average annual earnings growth of 15.4%. During year ended Apr 2002, the company posted a net profit of Ringgit 18.7 M on revenues of Ringgit 156.3 M. An included table provides the financial highlights of LB Aluminium for the years ended Apr 1998 through Apr 2002. The Star, 13 Nov 2002 (Website: http://www.thestar.com.my)
Expansion at Asian Paints Mr Ashwin Dani, Vice-Chairman and MD of Asian Paints expects the company to be among the top 5 in the world in the decorative paints segment, which is growing at 8-10% in India. When the proposed acquisition of Berger International Ltd by Asian Paints is complete, the company will join the top ten group in the decorative segment. Asian Paints, which derives about 90% of its revenues from the decorative paints segment, plans to consolidate its position by exploring the new emerging segments of exterior finishes and wood 6
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finishes. In the industrial paints segment, the company has a joint venture called Asian PPG Industries to cater to the automotive refinish and auto original equipment segments. Asian Paints has identified powder coatings as a potential segment for growth and has acquired the powder coating business of Hawcoplast Chemicals. The company has 22 joint ventures in overseas markets and has 27 manufacturing facilities across the globe. The company has set a 10-12% growth in sales for 2002-2003. The MD has stated that the reasons for the continuous growth are the introduction of 15 new products, reduction of costs through improved sourcing and effective use of information technology. The initiatives such as dealer tinting systems called ‘Colour World’ and the setting up of a toll-free Asian Paints Helpline also have contributed to increased sales. Business Line, 15 Nov 2002, 9 (315), 2
Raw materials suppliers target the powder coatings market Demand for powder coatings is currently rising by 7%/y. Sales have declined recently but are still greater than other coatings areas. The increasing use of powder for new substrates is detailed, with the focus on environmental and durability advantages. New products include a modified solid epoxy resin from Dow Chemical for use in UVcurable powder coatings and, according to Troy, biocides should also get a boost from the expanded use of powder coatings on plastics as well as wood. Lubrizol report that powder coating makers want additives to maximize their environmental and durability advantages in seeking to take market share from solvent-borne, low solid and medium solid systems. Chemical Week, 6 Nov 2002, 164 (44), 37
C O AT I N G S S&P cuts R&H ratings following acquisition spree Standard & Poor’s has cut Rohm and Haas’ long-term corporate credit and senior unsecured debt ratings from single A minus to triple-B plus because of slowerthan-expected progress in improvement of the company’s financial profile and recent acquisition activity. R&H recently agreed to acquire Ferro’s European powder coatings operations for $60 M, and said last week it would acquire Kureha Chemical’s global plastics additives business for $65.5 M. There will be no more major acquisitions until after 2003. Anticipated cash flow will mostly be directed towards debt repayment, with the aim of cutting debt to below $2.4 bn by the end of 2003. A recent $43 M environmental insurance settlement will also be used for debt reduction. The company has around $3 bn in outstanding debt. Chemical Week, 13 Nov 2002, 164 (45), 13
New Sherwin Williams facility Sherwin-Williams (Cleveland) has added a new 14,000 sq ft powder coatings research and development facility in Arlington, TX. The facility is dedicated to the research and development of new powder coating technologies. The coatings will be used for metal office products, agricultural, construction, and industrial equipment. It is Sherwin-Williams’ first facility dedicated specifically to powder coatings. Industrial Paint & Powder, Nov 2002, 12-13
Cyclics to open plant in Germany Cyclic thermoplastic resin producer Cyclics Corp of Schenectady, NY, is expected to start the production of cyclic butylene terephthalate (CBT) grades in early 2004 at a new facility being set up at BASF’s JANUARY 2003
Expansion at Asian Paints Mr Ashwin Dani, Vice-Chairman and MD of Asian Paints expects the company to be among the top 5 in the world in the decorative paints segment, which is growing at 8-10% in India. When the proposed acquisition of Berger International Ltd by Asian Paints is complete, the company will join the top ten group in the decorative segment. Asian Paints, which derives about 90% of its revenues from the decorative paints segment, plans to consolidate its position by exploring the new emerging segments of exterior finishes and wood 6
O N
POWDER
finishes. In the industrial paints segment, the company has a joint venture called Asian PPG Industries to cater to the automotive refinish and auto original equipment segments. Asian Paints has identified powder coatings as a potential segment for growth and has acquired the powder coating business of Hawcoplast Chemicals. The company has 22 joint ventures in overseas markets and has 27 manufacturing facilities across the globe. The company has set a 10-12% growth in sales for 2002-2003. The MD has stated that the reasons for the continuous growth are the introduction of 15 new products, reduction of costs through improved sourcing and effective use of information technology. The initiatives such as dealer tinting systems called ‘Colour World’ and the setting up of a toll-free Asian Paints Helpline also have contributed to increased sales. Business Line, 15 Nov 2002, 9 (315), 2
Raw materials suppliers target the powder coatings market Demand for powder coatings is currently rising by 7%/y. Sales have declined recently but are still greater than other coatings areas. The increasing use of powder for new substrates is detailed, with the focus on environmental and durability advantages. New products include a modified solid epoxy resin from Dow Chemical for use in UVcurable powder coatings and, according to Troy, biocides should also get a boost from the expanded use of powder coatings on plastics as well as wood. Lubrizol report that powder coating makers want additives to maximize their environmental and durability advantages in seeking to take market share from solvent-borne, low solid and medium solid systems. Chemical Week, 6 Nov 2002, 164 (44), 37
C O AT I N G S S&P cuts R&H ratings following acquisition spree Standard & Poor’s has cut Rohm and Haas’ long-term corporate credit and senior unsecured debt ratings from single A minus to triple-B plus because of slowerthan-expected progress in improvement of the company’s financial profile and recent acquisition activity. R&H recently agreed to acquire Ferro’s European powder coatings operations for $60 M, and said last week it would acquire Kureha Chemical’s global plastics additives business for $65.5 M. There will be no more major acquisitions until after 2003. Anticipated cash flow will mostly be directed towards debt repayment, with the aim of cutting debt to below $2.4 bn by the end of 2003. A recent $43 M environmental insurance settlement will also be used for debt reduction. The company has around $3 bn in outstanding debt. Chemical Week, 13 Nov 2002, 164 (45), 13
New Sherwin Williams facility Sherwin-Williams (Cleveland) has added a new 14,000 sq ft powder coatings research and development facility in Arlington, TX. The facility is dedicated to the research and development of new powder coating technologies. The coatings will be used for metal office products, agricultural, construction, and industrial equipment. It is Sherwin-Williams’ first facility dedicated specifically to powder coatings. Industrial Paint & Powder, Nov 2002, 12-13
Cyclics to open plant in Germany Cyclic thermoplastic resin producer Cyclics Corp of Schenectady, NY, is expected to start the production of cyclic butylene terephthalate (CBT) grades in early 2004 at a new facility being set up at BASF’s JANUARY 2003