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Powder coatings market report
F O C US for 14% of the market and are flat. Powder coatings make up 6.5-7% of the market and are growing at just 1-2%. Solventless liquid coatings and electrodeposition coatings both represent 2-3% of the market, and low-solids solvent-based coatings have 32% of the market. Large coatings manufacturers are posting mixed results. Akzo Nobel posted a 5% fall in its coatings sales during 3Q 2003 to €1.3 bn on sales growth up 2%. ICI’s paints business grew 1% percent worldwide in 1H, although sales in N America were down 4% on 1H 2002. Sherwin-Williams Company’s automotive finishes business sales down 2% in JanSep at $342.9 M. Net sales generated by the company’s international coatings business rose 5% to $194.9 M for Jan-Sep 2003. Net sales to paint stores were up 5% to $989 M in 3Q and up 4% at $2.64 bn for JanSep. Chemical Market Reporter, 3 Nov 2003 (Website: http://www.chemicalmarketreporter.com)
Powder coatings market report An interesting survey by an editor of Coatings World assesses the current position in the world market for powder coatings. In common with most other coatings technologies, the powder coatings market was not immune to the economic trends of recent years. In North America, after the record sales recorded in 2000, there was a decline of 11.5% in 2001, while 2002 showed a slight growth. The year 2003 is expected to show growth in the range of 2.5%, according to the Powder Coating Institute. Powder coatings represent some 7% of the worldwide coatings market, and this $3.6 billion industry has been quite successful in replacing liquid in a number of key markets, including appliances, wood and metal coatings, and it is predicted that there is still room for growth. In NOVEMBER 2003
O N
POWDER
Europe, powder coatings dominate the architectural metal finishing industry where they account for about 80% of all finishes and a similar trend is developing in Asia, particularly in China where it is the preferred finish for architectural aluminium. However, the US market is mainly centred on wet paint but the need to replace aging plant and the pressures on VOCs will drive the industry to much greater use of powder coatings, according to Akzo Nobel. DuPont cautions that conversions from liquid to powder have now levelled off due to the economic situation and the lack of capital for conversion. Optimism is still high in the domestic appliance market. In North America it absorbs 14% of total powder produced in the areas of refrigeration, washers, dryers, cookers, microwaves, heating and air conditioning. All regions of the Americas, Europe, and Asia Pacific have adopted widely the use of powder coatings in domestic appliances, although coil and more recently plastics, also have a significant share. Metal furniture is another market that is dominated by powder coatings. While it is widely used by metal furniture producers in Europe and the States, Asia Pacific is a vast exporter of metal furniture and almost all is powder coated. Powder coatings are now being widely used in the IT industry with most computer server cabinets now powder coated in preference to wet paint. The majority of IT OEMs now specify powders as decorative finishes on their larger metal components. In the automotive industry, powder coating is dominant in the coating of components, although it still has to compete with wet paint and electropaint, and has yet to make any significant mark on the automotive clearcoat market. The potential for increased use of powder coatings is huge but improvements in powder coating performance are
C OAT I N G S still required before this can be realized. While industry continues to support reduction of VOCs the trends are in energy reduction and improved transfer efficiency. The cost of conversion from liquid to powder is much lower than in previous years and transfer efficiency can increase from 30% for liquid to 90% or more for powder coatings. New low temperature curing powder coatings, both thermal and UV curable, have lowered the temperature thresholds and new radiation curing methods are reducing the curing cycles from minutes to seconds. Another significant factor in furthering the conversion to powder is the development of thinner films. A most important influence on future growth is the consolidation of the industry by major powder producers. The 2002 acquisition of Ferro’s European powder division by Rohm and Haas, and its Americas and Asia Pacific divisions by Akzo Nobel considerably strengthened both of these major powder producers. Rohm and Haas now has a total of seven powder production sites and are currently building an additional site in China which should be completed in 2004. Akzo Nobel have strengthened their presence in North America, established a presence in Korea and additional sites in China. They have followed this purchase with a joint venture in Mexico and have also set up new facilities in Turkey and Vietnam. These consolidations are considered to be essential if powder market growth is to be sustained, for the high costs of research and development can only be met by no more than half a dozen key players in this market. Unless new technology becomes available through the efforts of raw material and equipment suppliers the market opportunities for the medium to small powder producer will diminish below the levels of profitability and drastically reduce the competition. Without some 7
FOCUS
ON
measure of co-operation the smaller producers will not share in the market growth that is predicted in the latest report from Freedonia. According to a report from the Freedonia Group, powder coating demand in the US will rise from 345 M lbs in 2000 to 505 M lbs in 2005 and reach 735 M lbs in 2010. The latter total comprises 685 M lbs for thermosets and 50 M lbs for thermoplastics. The annual growth from 2000 to 2005 is 8.0% for thermosets and 7.0% for thermoplastics. An average cost of $2.94 per pound in 2000 will rise to $3.44 by 2010, which is considerably down on the cost
EVENTS
27-28 January 2004
POWDER
gains of the past decade. Growth in specific markets between 2000 and 2005 is predicted to be: automotive 8.0%; furniture 7.9%; appliance and house-wares 5.8%; industrial machinery and materials 8.7%; while other markets will experience a growth of 8.8%. The report concludes that powders will continue to find their main outlets in durable goods markets, including motor vehicles, appliances and house-wares, furniture, industrial machinery, and lawn and garden furniture. The automotive industry continues to offer excellent long term prospects for powders, particularly in new applications for exterior
C OAT I N G S primer and clearcoats. Appliance and house-ware is more mature but powder demand will continue to grow as manufacturers convert lines from liquid to powder. The furniture industry is also relatively mature, but powder is experiencing new opportunities for low temperature and UV cured products on wood substrates. Continued improvements in powder products will further expand applications to plastics, a move that could benefit furniture, the lawn and garden equipment and sporting goods markets. Coatings World, Sep 2003, Website: http://www.coatingsworld.com
Flame Retardants 2004 Queen Elizabeth II Conference Centre, Westminster, London Ms Sarah Kelly, British Plastics Federation, 6 Bath Place, Rivington St, London EC2A 3JE, UK Tel: +44 (0)20 7457 5025 Fax: +44 (0)20 7457 5045 E-mail: [email protected]
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 Journals Customer Service, 6277 Sea Harbor Drive, Orlando, FL 32887-4800, USA. US Customers Tel: +1 (877) 839 7126. Fax: +1 (407) 363 1354. Customers outside US Tel: +1 (407) 345 4020. Fax: +1 (407) 363 1354 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.
Permissions may be sought directly from Elsevier Science Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK. Tel: +44 (0) 1865 843830. Fax: +44 (0) 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)
Powder coatings market report An interesting survey by an editor of Coatings World assesses the current position in the world market for powder coatings. In common with most other coatings technologies, the powder coatings market was not immune to the economic trends of recent years. In North America, after the record sales recorded in 2000, there was a decline of 11.5% in 2001, while 2002 showed a slight growth. The year 2003 is expected to show growth in the range of 2.5%, according to the Powder Coating Institute. Powder coatings represent some 7% of the worldwide coatings market, and this $3.6 billion industry has been quite successful in replacing liquid in a number of key markets, including appliances, wood and metal coatings, and it is predicted that there is still room for growth. In NOVEMBER 2003
O N
POWDER
Europe, powder coatings dominate the architectural metal finishing industry where they account for about 80% of all finishes and a similar trend is developing in Asia, particularly in China where it is the preferred finish for architectural aluminium. However, the US market is mainly centred on wet paint but the need to replace aging plant and the pressures on VOCs will drive the industry to much greater use of powder coatings, according to Akzo Nobel. DuPont cautions that conversions from liquid to powder have now levelled off due to the economic situation and the lack of capital for conversion. Optimism is still high in the domestic appliance market. In North America it absorbs 14% of total powder produced in the areas of refrigeration, washers, dryers, cookers, microwaves, heating and air conditioning. All regions of the Americas, Europe, and Asia Pacific have adopted widely the use of powder coatings in domestic appliances, although coil and more recently plastics, also have a significant share. Metal furniture is another market that is dominated by powder coatings. While it is widely used by metal furniture producers in Europe and the States, Asia Pacific is a vast exporter of metal furniture and almost all is powder coated. Powder coatings are now being widely used in the IT industry with most computer server cabinets now powder coated in preference to wet paint. The majority of IT OEMs now specify powders as decorative finishes on their larger metal components. In the automotive industry, powder coating is dominant in the coating of components, although it still has to compete with wet paint and electropaint, and has yet to make any significant mark on the automotive clearcoat market. The potential for increased use of powder coatings is huge but improvements in powder coating performance are
C OAT I N G S still required before this can be realized. While industry continues to support reduction of VOCs the trends are in energy reduction and improved transfer efficiency. The cost of conversion from liquid to powder is much lower than in previous years and transfer efficiency can increase from 30% for liquid to 90% or more for powder coatings. New low temperature curing powder coatings, both thermal and UV curable, have lowered the temperature thresholds and new radiation curing methods are reducing the curing cycles from minutes to seconds. Another significant factor in furthering the conversion to powder is the development of thinner films. A most important influence on future growth is the consolidation of the industry by major powder producers. The 2002 acquisition of Ferro’s European powder division by Rohm and Haas, and its Americas and Asia Pacific divisions by Akzo Nobel considerably strengthened both of these major powder producers. Rohm and Haas now has a total of seven powder production sites and are currently building an additional site in China which should be completed in 2004. Akzo Nobel have strengthened their presence in North America, established a presence in Korea and additional sites in China. They have followed this purchase with a joint venture in Mexico and have also set up new facilities in Turkey and Vietnam. These consolidations are considered to be essential if powder market growth is to be sustained, for the high costs of research and development can only be met by no more than half a dozen key players in this market. Unless new technology becomes available through the efforts of raw material and equipment suppliers the market opportunities for the medium to small powder producer will diminish below the levels of profitability and drastically reduce the competition. Without some 7
FOCUS
ON
measure of co-operation the smaller producers will not share in the market growth that is predicted in the latest report from Freedonia. According to a report from the Freedonia Group, powder coating demand in the US will rise from 345 M lbs in 2000 to 505 M lbs in 2005 and reach 735 M lbs in 2010. The latter total comprises 685 M lbs for thermosets and 50 M lbs for thermoplastics. The annual growth from 2000 to 2005 is 8.0% for thermosets and 7.0% for thermoplastics. An average cost of $2.94 per pound in 2000 will rise to $3.44 by 2010, which is considerably down on the cost
EVENTS
27-28 January 2004
POWDER
gains of the past decade. Growth in specific markets between 2000 and 2005 is predicted to be: automotive 8.0%; furniture 7.9%; appliance and house-wares 5.8%; industrial machinery and materials 8.7%; while other markets will experience a growth of 8.8%. The report concludes that powders will continue to find their main outlets in durable goods markets, including motor vehicles, appliances and house-wares, furniture, industrial machinery, and lawn and garden furniture. The automotive industry continues to offer excellent long term prospects for powders, particularly in new applications for exterior
C OAT I N G S primer and clearcoats. Appliance and house-ware is more mature but powder demand will continue to grow as manufacturers convert lines from liquid to powder. The furniture industry is also relatively mature, but powder is experiencing new opportunities for low temperature and UV cured products on wood substrates. Continued improvements in powder products will further expand applications to plastics, a move that could benefit furniture, the lawn and garden equipment and sporting goods markets. Coatings World, Sep 2003, Website: http://www.coatingsworld.com
Flame Retardants 2004 Queen Elizabeth II Conference Centre, Westminster, London Ms Sarah Kelly, British Plastics Federation, 6 Bath Place, Rivington St, London EC2A 3JE, UK Tel: +44 (0)20 7457 5025 Fax: +44 (0)20 7457 5045 E-mail: [email protected]
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 Journals Customer Service, 6277 Sea Harbor Drive, Orlando, FL 32887-4800, USA. US Customers Tel: +1 (877) 839 7126. Fax: +1 (407) 363 1354. Customers outside US Tel: +1 (407) 345 4020. Fax: +1 (407) 363 1354 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.
Permissions may be sought directly from Elsevier Science Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK. Tel: +44 (0) 1865 843830. Fax: +44 (0) 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)