- Email: [email protected]
Strengthening EU Economies should Benefit Coatings Sector
FOCUS industry along with the introduction of new coating products and technologies is expected to stimulate industry growth. Asia Pacific is expected to witness significant growth at a CAGR of 10.9% from 2015 to 2022 owing to demand for fluoropolymer in a wide range of applications including coatings and electronics. Technological advancement in the field of electronics, particularly in China, Taiwan and South Korea, has led to an increasing utilization of these materials in providing high thermal stability and superior tensile strength. Chemours, Daikin, 3 M, Solvay and Dongyue Group jointly accounted for over 70% of the global fluoropolymer market share in 2014. Original Source: Grand View Research Inc., 8 Sep 2015, Found on website: http://www. marketwired.com. © Marketwired L.P. 2015
Epoxidized Soybean Oil Market to Reach $0.3 bn by 2020 The global epoxidized soybean oil (ESBO) market is expected to hit $0.3 bn by 2020, according to a report published by MarketsandMarkets. The ESBO market in Europe is projected to register the fastest growth rates in the world. Europe is the third largest market, in terms of value, for ESBO with a share of more than 20% of the global ESBO market in 2014. Germany is the main contributor to the ESBO market in Europe. The UV cure application segment is the fastest-growing segment of ESBO market. This application segment is projected to grow at the fastest growth rate of around 11%, in terms of value, between 2015 and 2020. In North America, the UV Care application segment is the biggest consumer for ESBO, owing to the presence of large number of coatings, sealants and other end-user manufacturing industries. The food and beverage industry is the largest end-user industry for ESBO, in terms of value and volume, and this trend is projected to continue in the near future. In North America, the food & beverage industry is the largest consumer of ESBO. The food and beverages end-use segment is projected to be the largest consumer of ESBO, followed by healthcare and pharmaceuticals, between 2015 and 2020. Major players include DOW Chemical Company and Galata Chemicals. Original Source: MarketsandMarkets, 2015. SpecialChem Plastics and Elastomers Formulation, 11 Sep 2015, (website: http:// www.specialchem4polymers.com) Copyright marketsandmarkets 2015
November 2015
ON
POWDER
Special Report: North America: Dow Chemical rises to lead North America rankings US-based Dow Chemical was the leading chemical company in North America in 2014. Its sales increased 1.9% to $58.2 bn, exceeding that of ExxonMobil Chemical which declined by 4.9% to $56.4 bn. On the other hand, Dow's operating earnings dropped 22.6% to $5.3 bn, while those of ExxonMobil Chemical hiked 10.1% to $5.7 bn. In 2014, the top 10 chemical companies headquartered in North America had good overall performance, recording most increases in booking sales and earnings. Ranked 5, coatings producer PPG Industries recorded a 7.7% increase in sales to $15.4 bn and a 15.5% gain in operating profits to $1.42 bn. Sherwin-Williams, which took the number 10 spot, reported an 9.3% sales rise to $11.1 bn and a 15.8% operating earnings surge to $1.26 bn. Both companies achieved those growths through mergers and acquisitions (M&A). Chevron Phillips Chemical, Dow and ExxonMobil, which are also included in the top 10 and are involved in constructing global-scale ethane crackers and derivatives units, are each building 1.5 M tonnes/y of new ethylene capacity. The additional capacities are set to be launched in 2017. Most of the companies included in the 2014 list were boosted by acquisitions. Rankings in 2015 are expected to be affected by two major developments. Among those is Dow's merging of chlorine and derivatives business with Olin under a $5-bn tax-advantaged Reverse Morris Trust (RMT) deal, which is about to close by end-2015. This project will significantly reduce Dow's overall sales. The chlorine business involved in the merger represent approximately $640 M of Dow's earnings before interest, tax, depreciation and amortization (EBITDA). The second project that will affect 2015 rankings is DuPont's separation of titanium dioxide (TiO2), sulfuric acid and fluoro chemicals businesses through a spin-off of Chemours. This move is likely to lessen DuPont's sales in 2014 by approximately $6.4 bn and adjusted EBITDA by $895 M. Despite all those things, the company is still expected to retain its position in terms of sales at number 3, to be followed by Agrium. By 2015, Huntsman should achieve an increase in sales through its $1.1 bn acquisition of Rockwood Holdings' TiO2 and performance additives business. During the year, crude oil price is likely
C OAT I N G S to fall, to affect commodity chemicals and materials' performance. Sales for the North American chemical leaders will be lower. Strong US dollar will also have an effect on 2015 growth. A table presents the sales, operating profit and net profit of the top 10 chemical companies in North America for 2014. Original Source: ICIS Chemical Business, 14-20 Sep 2015, 288 (8), 27 (Website: http:// www.icis.com), © Reed Business Information Limited 2015
Strengthening EU Economies should Benefit Coatings Sector A steady strengthening of the economies of the European Union, specifically in Western Europe, will drive the growth of the European coatings sector in 2H 2015. However, growth will be hindered by worries about the effect on Europe of Chinese economic delay and problems in some key emerging markets, specifically in Russia and neighboring states on the EU border. The new economic estimate of the European Commission revealed that GDP in the EU's 28 member states will increase by 1.8% in 2015. GDP in Germany is projected to rise by 1.9% in 2015 and 2% in 2016. In 2015, GDP in the UK and Spain is anticipated to increase by 2.6% and 2.8%, respectively. The European Chemical Industry Council (Cefic) revealed that production of chemicals, including coatings and other specialty chemicals, increased by just 0.2% in 1H 2015. Cefic is still optimistic that a 1.5% growth will be reached in FY 2015. Output of varnishes, paints, inks and coatings decreased by 1.5% in 1Q 2015 but it recovered in 2Q 2015. In Jun 2015, speciality chemicals production grew by 4.7%. Euroconstruct revealed that the European construction output will expand by 1.9% in 2015 and about 2.5%/ y through 2017. During the forecast period, residential construction will improve by 2%/y across Europe, while it will increase by 4% in Eastern Europe, outside Russia and its neighbors. In Germany, revenues from residential construction are projected to rise by 3% in 2015. Automobile sales in 1H 2015 grew by 8.2%. Revenue in Germany rose by nearly 50% in 1H 2015 compared to the 2010 figure. In 1H 2015, sales of BASF Coatings improved by 9%. Finland's Tikkurila is struggling with quick decline in consumer sales in recession-hit Russia. In 1H 2015, sales of AkzoNobel decreased by 1% in its main decorative paints market of Europe, Middle East and Africa (EMEA). Original Source: Coatings World, Sep 2015, 20 (9), 38-39 (Website: http://www.coatingsworld. com) © Rodman Media 2015
7
Epoxidized Soybean Oil Market to Reach $0.3 bn by 2020 The global epoxidized soybean oil (ESBO) market is expected to hit $0.3 bn by 2020, according to a report published by MarketsandMarkets. The ESBO market in Europe is projected to register the fastest growth rates in the world. Europe is the third largest market, in terms of value, for ESBO with a share of more than 20% of the global ESBO market in 2014. Germany is the main contributor to the ESBO market in Europe. The UV cure application segment is the fastest-growing segment of ESBO market. This application segment is projected to grow at the fastest growth rate of around 11%, in terms of value, between 2015 and 2020. In North America, the UV Care application segment is the biggest consumer for ESBO, owing to the presence of large number of coatings, sealants and other end-user manufacturing industries. The food and beverage industry is the largest end-user industry for ESBO, in terms of value and volume, and this trend is projected to continue in the near future. In North America, the food & beverage industry is the largest consumer of ESBO. The food and beverages end-use segment is projected to be the largest consumer of ESBO, followed by healthcare and pharmaceuticals, between 2015 and 2020. Major players include DOW Chemical Company and Galata Chemicals. Original Source: MarketsandMarkets, 2015. SpecialChem Plastics and Elastomers Formulation, 11 Sep 2015, (website: http:// www.specialchem4polymers.com) Copyright marketsandmarkets 2015
November 2015
ON
POWDER
Special Report: North America: Dow Chemical rises to lead North America rankings US-based Dow Chemical was the leading chemical company in North America in 2014. Its sales increased 1.9% to $58.2 bn, exceeding that of ExxonMobil Chemical which declined by 4.9% to $56.4 bn. On the other hand, Dow's operating earnings dropped 22.6% to $5.3 bn, while those of ExxonMobil Chemical hiked 10.1% to $5.7 bn. In 2014, the top 10 chemical companies headquartered in North America had good overall performance, recording most increases in booking sales and earnings. Ranked 5, coatings producer PPG Industries recorded a 7.7% increase in sales to $15.4 bn and a 15.5% gain in operating profits to $1.42 bn. Sherwin-Williams, which took the number 10 spot, reported an 9.3% sales rise to $11.1 bn and a 15.8% operating earnings surge to $1.26 bn. Both companies achieved those growths through mergers and acquisitions (M&A). Chevron Phillips Chemical, Dow and ExxonMobil, which are also included in the top 10 and are involved in constructing global-scale ethane crackers and derivatives units, are each building 1.5 M tonnes/y of new ethylene capacity. The additional capacities are set to be launched in 2017. Most of the companies included in the 2014 list were boosted by acquisitions. Rankings in 2015 are expected to be affected by two major developments. Among those is Dow's merging of chlorine and derivatives business with Olin under a $5-bn tax-advantaged Reverse Morris Trust (RMT) deal, which is about to close by end-2015. This project will significantly reduce Dow's overall sales. The chlorine business involved in the merger represent approximately $640 M of Dow's earnings before interest, tax, depreciation and amortization (EBITDA). The second project that will affect 2015 rankings is DuPont's separation of titanium dioxide (TiO2), sulfuric acid and fluoro chemicals businesses through a spin-off of Chemours. This move is likely to lessen DuPont's sales in 2014 by approximately $6.4 bn and adjusted EBITDA by $895 M. Despite all those things, the company is still expected to retain its position in terms of sales at number 3, to be followed by Agrium. By 2015, Huntsman should achieve an increase in sales through its $1.1 bn acquisition of Rockwood Holdings' TiO2 and performance additives business. During the year, crude oil price is likely
C OAT I N G S to fall, to affect commodity chemicals and materials' performance. Sales for the North American chemical leaders will be lower. Strong US dollar will also have an effect on 2015 growth. A table presents the sales, operating profit and net profit of the top 10 chemical companies in North America for 2014. Original Source: ICIS Chemical Business, 14-20 Sep 2015, 288 (8), 27 (Website: http:// www.icis.com), © Reed Business Information Limited 2015
Strengthening EU Economies should Benefit Coatings Sector A steady strengthening of the economies of the European Union, specifically in Western Europe, will drive the growth of the European coatings sector in 2H 2015. However, growth will be hindered by worries about the effect on Europe of Chinese economic delay and problems in some key emerging markets, specifically in Russia and neighboring states on the EU border. The new economic estimate of the European Commission revealed that GDP in the EU's 28 member states will increase by 1.8% in 2015. GDP in Germany is projected to rise by 1.9% in 2015 and 2% in 2016. In 2015, GDP in the UK and Spain is anticipated to increase by 2.6% and 2.8%, respectively. The European Chemical Industry Council (Cefic) revealed that production of chemicals, including coatings and other specialty chemicals, increased by just 0.2% in 1H 2015. Cefic is still optimistic that a 1.5% growth will be reached in FY 2015. Output of varnishes, paints, inks and coatings decreased by 1.5% in 1Q 2015 but it recovered in 2Q 2015. In Jun 2015, speciality chemicals production grew by 4.7%. Euroconstruct revealed that the European construction output will expand by 1.9% in 2015 and about 2.5%/ y through 2017. During the forecast period, residential construction will improve by 2%/y across Europe, while it will increase by 4% in Eastern Europe, outside Russia and its neighbors. In Germany, revenues from residential construction are projected to rise by 3% in 2015. Automobile sales in 1H 2015 grew by 8.2%. Revenue in Germany rose by nearly 50% in 1H 2015 compared to the 2010 figure. In 1H 2015, sales of BASF Coatings improved by 9%. Finland's Tikkurila is struggling with quick decline in consumer sales in recession-hit Russia. In 1H 2015, sales of AkzoNobel decreased by 1% in its main decorative paints market of Europe, Middle East and Africa (EMEA). Original Source: Coatings World, Sep 2015, 20 (9), 38-39 (Website: http://www.coatingsworld. com) © Rodman Media 2015
7