Coatings Word April 2014

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Table of Contents

April 2014 www.coatingsworld.com Coatings World | 5

April 2014 Vol. 19, No. 4

Coatings World (ISSN 152-711-29) is published monthly by Rodman Media Corp., 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: (201) 825-2552; Fax (201) 825-0553. Periodical postage paid at Ramsey, NJ 07446 USA and additional mailing offices. Publications Mail Agreement No: 40028970. Return Undeliverable Canadian Addresses to Circulation Dept. PO Box 1051, Fort Erie, On L2A 6C7, [email protected]. POSTMASTER: Send address changes to: Coatings World, 70 Hilltop Rd., Ramsey, NJ 07446. Free subscriptions to Coatings World are available to qualified individuals. Others are as follows: U.S. one year $75; two years $120. Outside U.S. and overseas: one year $95 (U.S.), two years $160 (U.S.), foreign airmail: one year $195 (U.S.). 5% GST required on Canadian orders. GST #131559148. The publisher reserves the right to determine qualification of free subscriptions. Printed in the USA. Coatings World is used under license from Whitford Worldwide. Coatings Worlds circulation is audited by BPA International.

ADVERTISING SECTIONSClassified Ads.......................................................48 Advertising Index .................................................49

COLUMNSInternational Coatings Scene ...............................17

Latin America Mexican Distribution: S-Ws Stumbling Block

Europe Recovery in Europe Could be Stalled by Ukranian Crisis

Business Corner ...................................................20Value-Based Management Its Still Around and Evolving Into a Best Practice 3-Dimensional Operation Tool

DEPARTMENTSEditorial .................................................................6As We Go to Press .................................................8Fresh Paint ...........................................................10Market Reports ....................................................14Patents .................................................................15New Products ......................................................16Industry News ......................................................43Suppliers Corner ..................................................45People..................................................................46Meetings ..............................................................47Final Coat .............................................................50

21 Resins Update 24 RadTech Preview

33 Incorporation of Fluro-Silicones in Coatings Films and the Resulting Properties

28 Low- and Zero-VOC Technology

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6 | Coatings World www.coatingsworld.com April 2014

A Rodman Media Publication 70 Hilltop Road Ramsey, NJ 07446 USA

(201) 825-2552 Fax: (201) 825-0553Web site: www.coatingsworld.com

EDITOR Kerry Pianoforte [email protected]

VICE PRESIDENT/EDITORIAL DIRECTORTom Branna [email protected]

ASSOCIATE EDITOR Bridget Klebaur [email protected]

ART DEPARTMENT Michael Del Purgatorio

[email protected] Sara Downing, [email protected]

INTERNATIONAL CORRESPONDENTSSean Milmo (Europe)

Charles W. Thurston (Latin America/Americas)

CONTRIBUTING EDITORS Phil Phillips

EDITORIAL ADVISORY BOARDJim Berry (Berry Environmental)

Joseph Cristiano (consultant) Thomas Frauman (consultant)

Joseph Prane (consultant)Isadore Rubin (consultant)

Richard M. Tepper (PPG Industries)Shelby F. Thames (University of So. Mississippi)

PRESIDENT Rodman J. Zilenziger, Jr.

[email protected]

EXECUTIVE VICE PRESIDENT Matthew J. Montgomery

[email protected]

GROUP PUBLISHER / ADVERTISING SALESDale Pritchett [email protected]

ADVERTISING SALES (U.S.)Kim Clement Rafferty [email protected]

ADVERTISING SALES (Europe) Baudry Boisseau Associates

27 Rue J. Lebeau- B-1000, Brussels, BelgiumTel.: 32-(0)2-513-06-47 Fax: 32-(0)2-514-17-38

[email protected]

ADVERTISING SALES (Hong Kong, Taiwan & China)Ringier Trade Publishing Ltd

401-405 4/F New Victory House93-103 Wing Lok Street, Sheung Wan, Hong Kong

(852) 2369 8788 Fax: (852) 2869 5919 [email protected]

CLASSIFIED ADVERTISING SALESPatty Ivanov 631-642-2048; Fax 631-473-5694

[email protected]

PRODUCTION MANAGER Patricia Hilla [email protected]

AUDIENCE DEVELOPMENT MANAGERJoe DiMaulo [email protected]

CIRCULATION MANAGERRichard DeVoto [email protected]

ONLINE DIRECTORPaul Simansky [email protected]

Coatings Worlds circulation is audited by BPA Worldwide.

[email protected]

The April issue is chock full of articles related to delivering more environmentally-friendly paints and coatings to market. Low- and Zero-VOC Coatings Technologies (page 28) takes a look at the latest offerings from major paint manufacturers. Coatings manufacturers are increasingly looking at low- and zero-VOC products to drive their business. In 2013, our revenue from eco-premium solutions including low- and zero-VOC products was al-most $5 billion, or 24 percent of our total revenue, said Andr Veneman, corporate director for sustainability & HSE at AkzoNobel. Eco-premium solutions are a fundamental driver of our strategy for creating more value from fewer resources and we continue to measure the proportion of reve-nue that they generate. Our 2015 target is to achieve 30 percent of revenue from eco-premium solutions.

Incorporation of Fluoro-Silicones in Coatings Films and the Resulting Properties (page 33) was originally presented at this years Waterborne Symposium. The technical paper evaluates multiple fluoroalkyl silicones in five coating systems; a two part solventborne heat cured urethane system, a UV cured urethane acrylate system, a UV cured epoxy acrylate, a cationic epoxy UV formula and a commercial paint to examine the effects of these products in broad strokes. Regulatory and safety concerns over perfluo-rooctyls persistence in the environment have put pressure in recent years on these systems. In general, chemical manufacturers have responded with shorter chains to obtain the unique properties of fluoroalkyls while elimi-nating this environmental concern.

The environmental benefits of UV/EB curing have been well document-ed. Rather than using traditional methods, which typically use more en-ergy and create harmful emissions, UV/EB curing is typically quicker and uses less energy. RadTech 2014 - The Global Conference and Expo for UV and EB Curing Technology will be held May 12-14 in Rosemont, Illinois. RadTech 2014 Preview (page 24) takes a look at the courses being held at this biennial event.

Environmental Issues Drive Innovation in Coatings

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As the environment changes, Reichhold remains committed to developing resins that yield maximum performance yet clean up with soap and water. BECKOSOL AQ is a platform of low VOC alkyd latex resinsmade from renewable resources. From wood stains to metal primers, BECKOSOL AQ is the natural selection.

AQ 521Porous Concrete

Sealer

AQ 510Wood Multi-purpose& Blacktop Sealer

AQ 400Non-highway

Pavement Markings

AQ 522Porous Concrete& Stone Sealer

AQ 205General Purpose

Wood Primer

AQ 102Wood Wiping

Stain

AQ 101Exterior Wood

Stain

AQ 206Wood Trim

Enamel

AQ 210Industrial Metal

Primer

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PPG to Invest $27 Millionin San Juan Del Rio Facility

PPG Industries bas announced plans to invest more than $27 million in its San Juan del Rio, Queretaro, Mexico, coatings manufacturing facility. The expansion project will add four new buildings to the current complex, representing approximately 100,000 square feet of additional production and laboratory space. The company of-ficially initiated the expansion with a groundbreaking event and anticipates completion in 2015. The expanded fa-cility is expected to employ more than 115 people, a 30 percent increase over its current workforce.

The additional capacity will en-able PPG to meet increasing demand for its coatings by automotive OEM, protective and marine, packaging and industrial customers in Mexico. The expansion project will incorporate eco-friendly building designs, provide natural light in employee areas, use in-telligent lighting systems to maximize energy efficiency and incorporate water recycling capabilities.

This growth project is another im-portant step for PPGs future in Mexico. It will enhance PPGs capability to serve the countrys fast-growing automotive manufacturing market with the latest waterborne and compact process tech-nologies that todays global automotive OEMs are demanding, said Adriana Macouzet, PPG general manager, Latin America North. The expansion enables us to meet the additional demand stem-ming from rapid growth in recent years by our Mexico-based customers and provide PPG coatings to other local end-use markets.

EU-Funded Study Finds High Levels of Lead in Paint in Seven Asian Countries The majority of household paints ana-lyzed in seven Asian countries contain unsafe levels of lead; would not meet regulatory standards established in

most highly industrialized countries; and, in a number of cases, have aston-ishingly high lead content, according to a new report. The Asian Regional Paint Report that will be released on March 23, 2014 by IPEN at the 4th Asian-Pacific Regional meeting of the Strategic Approach to International Chemicals Management (SAICM) convened by the United Nations Environment Programme (UNEP). For a copy of the report and news release, please go to www.ipen.org. (First item.)

Key findings: More than three-quarters of the

paints analyzed contained lead lev-els above 90 parts per million (ppm) and would not be permitted for sale in most industrialized countries.

At least a quarter of all paints from

all countries contained extremely dangerous levels of lead above 10,000 ppm.

Overall, brightly colored paints (red, yellow) contained the highest lead levels.

Major paint brands that contained high levels of lead in previously conducted studies in these same countries now have levels below 90 ppm.

Paints with low levels of lead were available in all markets at prices comparable to the leaded products, suggesting that the technology ex-ists to produce cost effective, lead-safe products.

None of the paint cans contain-ing lead stated this on the label or explained the hazards associated with lead. CW

Index to CompaniesThis index gives the starting page for a department or feature with a sig-

nificant reference to a manufacturer of paint, coatings, adhesives and sealants Subsidiaries are indexed under their own names.

AkzoNobel ................................................................................................ 10, 28

Benjamin Moore ............................................................................................. 28

Hardide ........................................................................................................... 10

Henkel ............................................................................................................ 16

Kelly-Moore .................................................................................................... 10

Minwax .......................................................................................................... 16

Nanovere ........................................................................................................ 16

PPG ......................................................................................................10, 28, 50

Sherwin-Williams ...................................................................................... 16, 17

Valspar ............................................................................................................ 10

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The Valspar Corporation, a global leader in the paint and coatings industry and sponsor of the Valspar Championship through 2017, is committed to bring-ing the transformative power of color to the tournament, both on and off the course. To kick-off the inaugural Valspar Championship, Valspar and longstand-ing partner Habitat for Humanity, PGA TOUR Wives Association, PGA TOUR players and Habitat families, will join to-gether for a Habitat community build in the Tampa Bay area.

At Valspar, we believe that color has the power to change lives. We are proud to join forces with Habitat for Humanity to bring a little more color into the homes of the Tampa Bay community, said Gary Hendrickson, chairman and CEO, Valspar Corporation. As Habitat for Humanitys national paint partner, we are committed to helping transform every house into a home by providing

paint for all Habitat homes built in the United States.

The Habitat for Humanity build will take place in a unique community comprised exclusively of Habitat for Humanity of Pinellas County homes con-sisting of neighbors who invest sweat equity, helping each other construct their homes and instilling pride and owner-ship into the neighborhood. Valspar and Habitat are bringing together these com-munity members, PGA TOUR players and the PGA TOUR Wives Association, a non-profit organization committed to charitable community efforts, to create decent, safe and affordable shelter.

We are grateful to Valspar for bringing together Habitat for Humanity, the PGA TOUR players and PGA TOUR Wives Association at the Valspar Championship to donate time and resources to this community and build alongside Habitat families, said Jonathan Reckford, CEO,

Habitat for Humanity International. Valspar is a valued partner of Habitat and we extend our sincerest thanks for their support of Habitats mission here and across the United States.

Valspar will further demonstrate their commitment to Habitat for Humanity at the Valspar Championship Expo Tent, an interactive area within the tournament where guests are invited to learn more about Valspar and Habitat. Valspar Championship attendees will have the opportunity to support Habitat for Humanity by participating in the Valspar Putt for Habitat Challenge, in which Valspar will donate $5 to Habitat for every putt made, up to $15,000.

The Expo Tent will also be home to a series of interactive experiences, part of the colorful course makeover Valspar will bring to the tournament. The Valspar Championship will feature vibrant Valspar hues on nearly everything

Valspar Commences Valspar Championship with Habitat for Humanity Community Build

Kenneth N. Edwards Western Coatings Technology Center Honors Industry Partners

California Polytechnic State Universitys Polymers and Coatings Program invited industry partners to campus in appreciation of a quarter century of industry support, especially the many con-tributions to the new Kenneth N. Edwards Western Coatings Technology Center (WCTC). Attendees toured the new facilities and learned about student research.

The WCTC was funded by $2.5 million in private donations from Dunn-Edwards Corporation, Behr Process Corporation, BYK, Ellis Paint, LASCT, Rohm and Haas, Sherwin Williams, and other industry supporters. The center includes the following leading-edge facilities:

Dunn-Edwards Coatings Formulation Facilities Behr Process Polymer Synthesis Laboratory Instrumental Analysis Laboratory Kenneth N. Edwards Conference Room The laboratories in the WCTC will enhance the programs

ability to educate future polymers and coatings professionals as well as provide unique opportunities for industry-sponsored re-search. Cal Poly offers the only polymers and coatings program in the West and is one of the nations most selective public uni-

versities. With twice as much space as the previous facility and more advanced instrumentation, the WCTC will allow the mas-ters program to expand to 10-12 graduates per year.

Its a wonderful time to be a part of the polymers and coat-ings program at Cal Poly, said Ray Fernando, Arthur C. Edwards Endowed Chair in Polymers and Coatings. The generosity of our industry partners is exceptional and will benefit our students, the university, and the coatings industry at large. These expand-ed facilities will allow us to capitalize on so many more opportu-nities for enhanced education and research.

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from tee markers and tee monuments, to tent gables and caddy bibs truly making the tournament the most colorful PGA TOUR tournament in the world.

Additionally, Valspar Championship events include the Executive Womens Day, Valspar Championship Evening Concert, Valspar Championship Awards Ceremony and more.

The Valspar Championship will be featured on the Valspar Paint Facebook page, where fans will have exclusive access to information about tournament events and experiences, as well as a chance to win prizes. Valspar will host a sweepstakes offering one grand prize winner two tickets and accommodation for the 2015 Valspar Championship and one runner-up will receive a five day, four night accommo-dation package at a Salamander Resort in Florida. Additionally, Valspar will offer a series of instant win prizes, including gallons of Valspar Paint, through the Facebook page.

Hardide Signs Agreement with General Electric to Supply CoatingsHardide plc has entered into a strate-gic supply agreement with the General Electric Company Inc. The agreement is for the supply of coating to a single com-ponent currently used by GE resulting in guaranteed turnover volume to the com-pany of $1.3million over the two years to February 2016. The Agreement is extend-able up to five years.

Development and testing work is also well-advanced on additional components which, if successful will be included to the agreement and which would result in further minimum annual volumes. If suc-cessful, the Board would expect the sup-ply of these additional components to GE to significantly increase the overall value of the Agreement.

This is an exciting development that firmly embeds the Hardide coating tech-nology in one of the worlds most respect-ed advanced engineering companies,

said Philip Kirkham, CEO of Hardide plc. An excellent work-ing relationship has built up with GE over the last 18 months and we continue to work closely together on other projects including opportunities for the Hardide technology in various other divisions of GE which the company hopes to capitalize on.

Kelly-Moore Paints Expands Product OfferingsKelly-Moore Paints, a leading premium paint manufacturer and retailer in the western United States, announced its agreement with four manufacturers to offer a targeted assortment of special-ized coatings through its retail stores. From Devoe High Performance Coatings preferred by commercial painting con-tractors, to Modern Masters Specialty Finishes Metallics with ease of applica-tion for homeowners, Kelly-Moore Paints is expanding its retail offerings to meet the diverse needs of its customers.



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Kelly-Moore Paints prior-ity is providing our customers with the products and services they need for a successful paint-

ing project, said Dan Claybaugh vice president of marketing at Kelly-Moore. Through our 145 stores across seven western states, we make it our busi-ness to know what our customers want. These four new product categories Devoe High Performance Coatings, Storm System Exterior Finishes, Old Masters Interior Stains and Finishes and Modern Master Specialty Finishes Metallics have a proven track record of great performance.

AkzoNobel Architecture Prize Presented in BrazilThree winners of the inaugural AkzoNobel Architecture Prize were an-nounced at a ceremony held in Brazil recently. Developed in partnership with the Tomie Ohtake Institute, the award was specifically set up to help develop

the careers of young architects. A total of 95 entries were received, with 12 fi-nalists having their projects exhibited at the Institute in So Paulo, where the awards ceremony was held. The win-ners are: First - Fernando Forte, from FGMF Architects, for Casa Grelha (Grelha House), So Jos dos Campos city, So Paulo. Second - Juan Pablo Rosenberg, from AR Architects, for Casa dos Ptios (Courtyard House), So Paulo city, So Paulo (pictured). Third - Alexandro Prisco, from AP Architecture and Urbanism, for Commons Studio Bar, Salvador city, Bahia state. Under the rules of the contest, their entries had to include the use of renewable materi-als, reflecting AkzoNobels strong focus on supplying sustainable products and solutions to the construction industry which represents around 50 percent of the companys revenues in Brazil. As part of their prize, the winners will embark on architectural research trips to China, Russia and Mexico, as well

as visiting AkzoNobels head office in Amsterdam. The jury was made up of several influential Brazilian architects selected by Ricardo Ohtake, presi-dent of the Tomie Ohtake Institute. Established in 2001, the Institute is a non-profit organization dedicated to the research and distribution of visual arts, design and architecture.

PPG Announces Distributor Training Schedule PPG Automotive Refinish has unveiled its 2014 distributor training schedule. Consisting of more than 30 classes across 12 critical business areas, the training is designed for owners, managers, sales staff and other key personnel involved in the operation of a PPG distributor business. The courses make up a comprehensive curriculum PPG has created to support all its distributors by providing the prac-tical and professional skills required to successfully run a productive and profit-able enterprise.



Distributor success is something PPG cares about and is absolutely committed to, and that means providing great products and great training, said Bob Wenzinger, PPG dis-tributor programs director. We continue to place a significant emphasis on making sure all PPG distributors have everything they need to build and operate an efficient and ef-fective business. According to Wenzinger, the

distributor training PPG offers can have a sig-nificant and positive impact on every aspect of a distributors operations. Classes cover general operations, finance, business develop-ment and management, conflict resolution, selling skills, commercial business develop-ment and more. Were always enhancing our distributor training offerings, making sure theyre relevant and rewarding, added

Wenzinger. We see PPG distribu-tors at all levels learning and im-proving from our courses.

Training will be held through-out the year in PPG Business Development Centers and conference facilities in the U.S and Canada. Courses are led by PPG leadership as well as by consultants in the automotive refinish industry. CW

Results of U.S. Architectural Coatings Industry Research Report Which Compared Business Trends in 1Q14 vs. 1Q13

Each month, Northcoast Research surveys a large sample of paint retailers through-out the United States to get a sense for current business trends. Please note that of the three primary architectural coatings channels (paint stores, home centers, and retail distributors), this survey is primar-ily reflective of the distributor channel which tends to see volume growth less than the industry; therefore, we view the results as a directional indicator more so than absolute industry volumes. For in-quiries regarding this report please con-tact Kevin Hocevar at 216-468-6924 or [email protected].

Architectural Coatings Sales Volumes Up 1.8% in 1Q14 vs. 1Q13According to industry participants, aver-age sales volumes in October remained steady at 1.8% year-over-year following similar growth of 1.9% in 4Q13 and indi-cating continued momentum after seeing slightly lower growth in September. Harsh winter weather likely tempered growth however as exterior paints significantly underperformed interior, but expectations are that this demand is being pushed into later periods and demand will accelerate once spring weather begins. Overall, 53% of respondents witnessed an increase in volumes vs. only 16% that saw volumes de-cline, which averaged out to 1.8% volume growth and a net increase of 37%.

Price of Paint from Suppliers 1Q14 Paint Prices Up Slightly vs. 1Q13 57% of contacts noted a year-over-year increase in the cost of a gallon of paint

from suppliers in 1Q14 as our paint price index increased 0.8%. This compares to a year-over-year increase of between 1.5%-2.0% throughout 2013. We ultimately believe that the slight increase is due to continued anniversarying of recovering raw material cost inflation from when raw materials were surging coupled with price increases from manufacturers with paint stores spilling into the retail distributor channel. We believe that pricing could potentially begin to increase in the up-coming months as 28% of respondents indicated that they have been notified of a price increase in the range of 1%-6%, which is meaningfully higher than has been seen in our previous reports.

Raw Materials TiO2 Remains Stable but Still Seeing Some DeclinesTitanium dioxide (TiO2) prices have been stabilizing in recent months after witness-ing sharp declines in early 2013, although we have seen modest declines recently. Additionally, propylene has been stable thus far in 2014 although pricing still re-mains at higher levels. Overall, our data and recent conversations with industry contacts suggest that price increases at-

tempted by TiO2 producers in January 2014 have been unsuccessful with no evi-dent traction for price increases to stick until at least 2H14. As a result, we believe that the price/raw relationship from paint manufacturers will remain favorable dur-ing the near term.

3 Month Outlook Outlook Positive Due to Strong Paint Season Expecta-tionsOur proprietary Architectural Coatings Outlook Index reached 0.92 during 1Q14 which marks the highest index reading since the inception of our survey. Please note that the highest possible reading is +2 (indicating all contacts have a very positive outlook) and the lowest pos-sible reading is -2 (indicating all contacts have a very negative outlook. A read-ing of 0.92 represents a strong outlook as the busy season approaches and con-tacts anticipate business to accelerate as weather returns to normal patterns. The vast majority (75%) of contacts share a positive (57%) or very positive (18%) 3-month outlook, and the remaining 25% believe that current trends will re-main the same.

Northeast Research Time Series

Index 1Q13 2Q13 3Q13 4Q13 1Q14

Volume (vs. prior year) 1.3% 2.0% 1.5% 1.9% 1.8%

Price (vs. prior year) 1.5% 1.9% 1.3% 1.4% 0.8%

% of Contracts Expecting a Price Increase

28% 17% 16% 14% 28%

Outlook 0.85 0.60 0.41 0.57 0.92

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According to a new report from Frost and Sullivan, the frenzied pace of in-frastructural developments in South Africa and Kenya is growing the market for thermoset resins in both countries. Significant government investment, es-pecially in low-cost housing, road and other non-domestic structures, has given a boost to the paints and coatings, con-struction chemicals and composites mar-kets. These markets, in turn, have raised the demand for thermoset resins. New analysis from Frost & Sullivan, Analysis of the Thermoset Resins Market in South Africa and Kenya, finds that the market earned combined revenues of $280.8 mil-lion in 2013 and estimates this to reach $339.4 million in 2017. South Africa ac-counted for 97.5 percent of the total sales and Kenya, the remaining 2.5 percent.

Although South Africas economic growth has slowed, a $360 billion gov-ernment infrastructural development plan is likely to keep its thermoset resins market afloat till 2030, said Frost & Sullivan Chemicals, Materials & Food Industry Analyst Dilshaad Booley. The growth rate in Kenya is expected to be much higher, as the country is sorely lacking in modern infrastructure and is aggressively pursuing its development goals in line with its vision of becoming a middle-income nation by 2030.

South Africa has adequate resources to supply almost 90 percent of its ther-moset resins demand domestically. Its local refineries are the most efficient in Africa, with an average utilization capac-ity of 85 percent. Although this insulates the market from import price fluctua-tions, the countrys escalating produc-tion costs are exposing it to competition from cheap imports. The government can attempt to stave off this challenge by imposing higher import tariffs and companies can utilise energy more ef-ficiently during the manufacturing pro-cess. Kenya, on the other hand, imports almost all of its thermoset resins and is

vulnerable to constant currency volatility and high transport costs due to poor rail and road conditions. However, this is be-ing remedied by the governments invest-ment into the sector. Rail transport is performing at 10 percent of its capacity due to the deterioration of infrastructure and operational inefficiency in Kenya, re-sulting in higher thermoset resins prices, said Booley. South Africa, meanwhile, is threatened by imports from China, which is able to manufacture and trade products at lower costs due to economies of scale, lower labor costs and preferen-tial trade tariffs.

Kenya can lower the prices of ther-moset resins and increase local manu-facturing through proper maintenance and better infrastructure, with longer rail networks from the ports. In South Africa, overcoming soaring energy costs is key to making locally produced products price competitive with imports. Local content policies in both countries will also aid the usage of thermoset resins in their respec-tive domestic markets.

TechNavio Predicts Global Marine Coatings Market to GrowTechNavios analysts forecast the global marine coatings market to grow at a CAGR of 11.29 percent over the period 2013-2018. One of the key factors con-tributing to this market growth is the expansion of the oil and gas market. The global marine coatings market has also been witnessing the growing con-sumer preference for eco-friendly prod-ucts; however, the strict environmental regulations could pose a challenge to the growth of this market. TechNavios re-port, the Global Marine Coatings Market 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. The report cov-ers the APAC and EMEA regions, and the Americas; it also covers the Global Marine Coatings market landscape and

its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.

Grand View Research Reports on Global Biocides Market The global market for biocides is expect-ed to reach $10.745.7 million by 2020, according to a new study by Grand View Research, Inc. Growing population cou-pled with growing concerns for industrial waste water treatment is expected to drive biocide demand over the next six years. In addition, positive outlook on key applica-tion markets such as textiles, paints and coatings, primarily in Asia Pacific, Latin America and Eastern Europe, is also ex-pected to boost the demand for biocides over the forecast period.

Halogen compounds dominated the biocide product space, accounting for over 27 percent of global market revenue in 2013. However, environmental con-cerns, regarding the disposal and impact of halogen-based compounds are expect-ed to reduce market penetration for these products by 2020. Phenolic biocides are expected to be the fastest growing prod-uct segment, at an estimated CAGR of 6.9 percent from 2014 to 2020. The global market for biocides was es-timated to be $7.308.0 million in 2012, and is expected to grow at a CAGR of 5 percent from 2014 to 2020.

North America is expected to continue its dominance in the global market and is expected to account for over 40 percent of the total market by the end of 2020. Asia Pacific is expected to be the fastest growing regional market, with market revenue expected to reach USD 3,454.7 million by 2020, at a CAGR of 6.2 per-cent from 2014 to 2020.The global mar-ket for biocides is concentrated with top participants, including Arch Chemical, ISP, Dow Microbial Control and Troy Corporation, accounting for over 55 per-cent of the total demand in 2013. CW

Govt. Development Plan Boosts Demand for Thermoset Resins in South Africa

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BASF Patents Superhydrophilic Coatings

U.S. 8,568,834 B2BASF has been awarded a patent for a method for preparing a superhydrophilic layer comprised of one or more metal oxides on a substrate which method is comprised of (a) first coating the sub-strate with a cationic polymer, followed by (b) applying to the substrate coated by the cationic polymer a suspension, in a solvent, of amorphous particles of one or more metal oxides selected from the group consisting of oxides of silicon, zinc and titanium, wherein the particles have a particle diameter of from approximately 20 nm to 80 nm, to form a single layer film; (c) cross linking the thus obtained single layer film by applying a cross link-ing agent followed by drying to obtain a precursor film; and then (d) calcining the precursor film at temperatures ranging from 400 C to 600 C for 1 to 8 hours.

Multi-Layered Coatings U.S. 8,568,833 B2Kansai Paint has been granted a patent for a process for formation of a multi-layered coating film, which sequentially is com-prised of the following steps (1)-(4): (1) a step of coating an organic solvent-based first colored coating composition (A) on an object to be coated to form an uncured first colored coating film, (2) a step of coating an organic solvent-based second colored coating composition (B) on the uncured first colored coating film formed in the step (1) to form an uncured second colored coating film, (3) a step of coating a clear coating composition (C) on the un-cured second colored coating film formed in the step (2) to form a clear coating film, and (4) a step of heating the uncured first colored coating film, the uncured second colored coating film and the uncured clear coating film formed in the steps (1)-(3) to cure these three films simultane-ously; wherein the organic solvent-based first colored coating composition (A) is a coating composition containing (a1) a polyester resin containing a hydroxyl

group, which contains a straight-chain alkylene group having a carbon number of 4 or more in the molecule in a con-tent of 1.0-8.0 mol per 1 kg of a solid content of the polyester resin (a1), has a hydroxyl group value in a range of 30-160 mgKOH/g and has a number-average molecular weight in a range of 1,000-6,000, and (a2) a melamine resin; and the organic solvent-based second colored coating composition (B) is a coating com-position containing (b1) an acrylic resin containing a hydroxyl group, which has a hydroxyl group value in a range of 40-200 mgKOH/g and has a weight-average molecular weight in a range of 3,000-15,000, (b2) a melamine resin having a content rate of a mononuclear melamine of 40 mass % and (b3) an acid catalyst.

Nanovere Patents Dendritic Polyurethane CoatingU.S. 8,568,888 B2Nanovere has obtained a patent for a surface-protective coating composition comprised of a first component com-prised of a globular dendritic polymer having a peripheral cross-linkable hy-droxyl functionality of approximately 32 to 64; optionally, an acrylic compound having a peripheral cross-linkable hy-droxyl functionality of 2 to 6; optionally, a plurality of metal oxide nanoparticles optionally encapsulated in a cross-link-able hydroxyl functional polymer and/or a cross-linkable hydroxyl functional fluorosurfactant; optionally, a sterically

hindered amine light stabilizer; option-ally, a UV absorber; a cross-linking cata-lyst; and a first substantially anhydrous solvent in which the above materials are dissolved or, in the case of the nanopar-ticles, are dispersed; and (2) a second component comprised of a cross-linking agent capable of reacting with hydroxyl groups; and a second substantially anhy-drous solvent which may be the same as or different from the first substantially anhydrous solvent, wherein the compo-nents are mixed to form the coating.

AkzoNobel Patents Chip Resistant Powder Topcoats U.S. 8,574,708 B2Akzo Nobel Coatings International has been granted a patent for a chip-resistant powder topcoat on a steel substrate hav-ing a corrosion resistant powder coating basecoat thereon. The topcoat is comprised of the cured or fused product of a coating powder of one or more resin component of one or more toughened epoxy resin, from 0.1 to 5 parts per hundred parts resin (phr) of one or more wax and from 75 phr to 200 phr of one or more extenders wherein the one or more extenders is selected from the group consisting of barium sulfate, titanium dioxide, iron oxides, crystalline silica (quartz), calcium metasilicate, soda lime glass spheres, magnesium silicate, nepheline syenite, muscovite mica, diato-maceous earth, kaolin clay and calcium carbonate. CW

Reactive Surfaces Extends its Patent Protection in U.S. and Middle East for Antimicrobial Coatings

Reactive Surfaces has been granted an additional U.S. patent covering its non-toxic peptidic antimicrobial coatings. The claimed coatings comprise short polymers of naturally-occurring amino acids. The patented compositions expand the peptide ac-tives protected in antimicrobial ProteCoat coating compositions, alone and in cock-tails of such peptides or traditional biocides. Toxicity studies of these actives suggest that no EPA-mandated cautionary statements will be required.

15 Patents 0414.indd 15 3/31/14 3:22 PM


New

Pro

duct

s

Sherwin-Williams recently launched new Log Home Stain and improved Deckscapes Waterborne Semi-Transparent Stain. The innovative exterior products were un-veiled at the International Builders Show 2014 and provide ultraviolet (UV) pro-tection and a long-lasting, high-quality look in less time. Designed for log home exteriors, Log Home Stain is a water-based formula that delivers a high-quality satin sheen and varnish-like finish for an appealing look and enhanced weather-ing characteristics. Requiring two coats to achieve maximum performance, it of-fers the easy application and cleanup of a traditional water-based stain, according to the company. Enhanced Deckscapes Waterborne Semi-Transparent Stain pro-vides durable protection for all exterior horizontal wood surfaces. With improved weathering similar to an oil-based stain, Deckscapes will wear away, rather than peel and blister, at the end of its life cycle. It can be applied on damp wood, so most jobs can be finished in a single day. Whether applying to new or weath-ered wood, Deckscapes penetrates deeply, giving properly prepared decks excellent protection from sun, mildew and prema-ture weathering.

Minwax Launches Ultimate Floor Finish Minwax wood care company has intro-duced Minwax Ultimate Floor Finish, bringing professional floor technology directly to the do-it-yourselfer. Minwax Ultimate Floor Finish is an advanced top-coat for floors that provides a clear fin-ish with superior durability, the company reports. The self-crosslinking technology ensures a tough floor finish, like that of traditional polyurethane, without amber-ing or the need to sand between coats. The product dries quickly, so floors can be recoated in only two hours.

The new product works well over Minwax Wood Finish Stain, bare wood or existing polyurethane finishes. Lower

in odor than traditional solvent-based polyurethanes, it cleans up easily with soap and water.

Henkel Launches Bonderite M-PP 930C Autodeposition Coating for Metals Henkel Corporation has introduced a new, water-based reactive autodeposition coating, Bonderite M-PP 930C, for-mulated specifically to deliver a uniform, defect-free surface coating on raw cast components and ferrous metals. This in-novative epoxy-acrylic urethane coating easily coats both the inside and outside of complex components, and delivers en-hanced corrosion and abrasion resistance, excellent thermal stability, and superior edge protection, abrasion resistance and flexibility. Depending on the type of sub-strate and cleanliness of the metal, appli-cation of Bonderite M-PP 930C can be as simple as a seven-step, room tempera-ture deposition process that requires no electrical contacts and involves a chemi-cal reaction between the water-based or-ganic emulsion and the metallic surface. The low-energy process uniformly coats large volumes of fully assembled, densely racked or complex-shaped metal parts and involves some combination of the following steps: cleaning, rinsing, coat-ing, sealing and curing. From beginning to end, preparation and application usu-ally takes significantly less time than com-peting processes. Bonderite M-PP 930C will coat any surface it wets during im-mersion of the parts with no limitation as to part size, shape, complexity or den-sity. The coating covers the entire inner diameter of cylindrical parts, controlling warranty exposure. The non-flammable, non-explosive, RoHS-compliant coating contains no toxic heavy metals, very low VOCs, and no APEs or HAPs. The tech-nology is an excellent coating for general industrial, heavy equipment, agricultural and construction equipment, trucks, trail-ers and automotive application.

Nanovere Launches Nano-Clear Industrial Coating for Improved Corrosion Resistance Nanovere Technologies has introduced Nano-Clear for industrial applications, designed to improve corrosion resistance, abrasion resistance and prevent the un-derlying paint from UV degradation. Nano-Clear is the only industrial coating in the marketplace to restore, enhance and preserve newly painted or highly oxidized paint surfaces by 10 years, the company stated. Conventional one and two-component paint systems includ-ing epoxies provide good initial corro-sion and abrasion resistance, but can fall short in long-term UV resistance and weathering. Conventional paints begin to degrade over time due to sun dam-age, abrasion or chemical attack. UV rays break-down the molecular bonds of the paints polymer network, causing surface chalking, decreased abrasion resistance and discoloration leading to corrosion. Nano-Clear penetrates deep into the-pores of paint, enhancing the underlying color, improving gloss, increasing surface hardness, and dramatically extending UV resistance. Nano-Clear protects the un-derlying paint from scratching, corrosion, chemicals and UV degradation, while re-ducing surface cleaning by 50%. Nano-Clear is manufactured using proprietary 3D nanostructured polymers, which pro-vide dramatically higher crosslink den-sity over any conventional coating system today. Crosslink density is defined as the concentration of chemical bonds within a polymer. Higher concentrations of chemi-cal bonds within a polymer improve physical properties. Conversely, lower concentrations of chemical bonds within a polymer decrease physical properties. Nano-Clears molecular bonds are diffi-cult to break-down from chemical attack, abrasion and UV rays. Nano-Clear is a one-component highly cross-linked poly-urethane hybrid nanocoating system. CW

Sherwin-Williams New Log Home Stain & Enhanced Deckscapes WB Stain for Wood Finishing

16 New Products.indd 16 3/31/14 3:22 PM


International Coatings Scene Latin America

by Charles W. Thurston Latin America Correspondent [email protected]

Business columns in Mexicos press were quick to report in early March, following a visit by Sherwin-Williams officials, that the company was prepared to meet the terms of anti-trust regulators there to consummate its purchase of paint and coatings market leader Grupo Comex. Those terms primarily revolved around S-Ws sale of its architectural unit in Mexico to a third party, sources suggested, leaving the question of To Whom?

Among the competitors in the Mexican architectural segment, a host were named in the 331-page decision against the purchase in October 2013 by the Comisin Federal de Competencia Econmica (CFCE)s, now headed by Alejandra Palacios. Among the Mexican competitors mentioned were: Berel; Sayer Lack; Osel; Prisa; Acuario, Optimus, Mapla and Casther. Favorites among these, according to news analysts at El Imparcial and other publications, include Berel, Sayer Lack and Osel. Multinational Axalta was also mentioned as a forerunner in the up-coming S-W sell off.

S-W Mexico, under the leadership of pres-ident Pablo Garca Casas, added 39 stores to its network last year, contributing to the companys 587 dealer stores across the Latin American region. In comparison, the Comex Group touts a dealer distribution network of 3,300 stores plus 775 concessions in Mexico. Berel, which according to the CFCE detains the next largest paint and coatings distribu-tion system in the country, has a network of about 1,000 stores.

Pinturas Berel, which operates a production facility at Santa Catarina, near Monterrey, in Nuevo Leon state, markets its Berelex Green acrylic interior paint as a VOC-free product. The company also markets enamels under the BioMetal brand, waterproofing coatings under the Kover brand, and Summa varnishes, among other products.

This disparity in market distribution was a key objection by the CFCE, which at one point noted, The market entrance of Behr (exclusively through Home Depot distribu-tion) is indicative that the genie in the bottle is clearly the network of distribution, which could be turned into a barrier. Behr reported-ly exports 70,000 gallons of paint per month from the United States to Mexico for Home Depot sale. While the CFCE accepts domes-tic census data suggesting that there are just over 12,000 paint stores in Mexico, it points out that there are potentially 60,000 points of sale, should a powerful contender seek to build out a network.

The CFCE also made a particular point of Grupo Comexs idle capacity as a market ad-vantage for S-W, should it consummate the purchase. Comex is market leader in the auto-motive, maritime and industrial segments, in addition to the architectural segment. While there is a total of some 377 paint and coat-ings manufacturers in the country, according to the CFCE document, a well-funded buy-er of the Grupo Comex production system could rapidly displace many of the existing competitors in the market.

In September 2013, a stock purchase agreement between S-W and Comex was amended to extend the date, by which the agreement could be terminated by either party, to March 31, 2014. At the same time, the offer was amended to a purchase price of approximately $2.25 billion, S-W docu-ments indicate. CW

Sherwin-Willliams

Mexico added

39 stores to its

network last year,

contributing to

the companys

587 dealers

across the Latin

America region...

in comparison the

Comex Group

touts a dealer

distribution

network of 2,300

stores.

Mexican Distribution: S-Ws Stumbling Block

17 latin america 0414.indd 17 3/31/14 3:23 PM


International Coatings Scene Europe

Optimism is being

undermined by

worries about the

economic impact

of the Ukranian

crisis, particularly

on coatings

demand in

Russia and other

Eastern European

countries.

by Sean Milmo European Correspondent [email protected]

European coatings companies have been hoping that this year would bring a re-vival in their domestic markets as the European Union economies, particularly those in the eurozone, started to show signs of recov-ery around mid-2013.

But the optimism is being undermined by worries about the economic impact of the Ukrainian crisis, particularly on coatings de-mand in Russia and other Eastern European countries where coatings have been growing strongly over the last few years.

Many Western European coatings producers have been relying on exports to these emerging markets on their door steps to offset static or even declining domestic sales.

They have also been slightly concerned about the short-term prospects in China and elsewhere in Asia which have become an-other expanding destination for European coatings exports.

However, in Western Europe itself the out-look has brightened considerablyat least before the recent events in Ukraine. After two years of decline, the GDP of the 18-na-tional eurozone was expected by the European Commission, the EUs Brussels-based executive, to grow by 1.2 percent this year.

Within the whole Union of 28 countries GDP was being forecast to expand by 1.5 per-cent which in 2015 would rise to 2 percent with some countries then possibly showing growth rates of over 3 percent.

Chemicals output, including that of coat-ings, will go up by an average 1.5 percent this year after being flat in 2013, according to the European Chemical Industry Council

Recovery in Europe Could Be Stalled by Ukrainian Crisis

18-19 Europe 0414.indd 18 4/1/14 8:42 AM


International Coatings Scene Europe

(Cefic), representing chemicals producers. Speciality chemicals production, which also comprises coatings and its raw mate-rials, went up by 0.7 percent last year af-ter slumping by almost 4 percent in 2012.

Europe is (now) expected to re-turn to the growth zone, said Matthias Wolfgruber, chief executive of Altana AG, a German-based vertically integrat-ed coatings, sealants, pigments and addi-tives company.

With approxmately 42 percent of last years sales of 1.8 billion ($ 2.45 billion) in Europe, the company is hop-ing to double its revenue by 2020 while maintaining earnings before interest, tax, depreciation and amortisation (EBITDA) at a sales ratio of 18-20 percent.

After suffering sometimes sharp declines in European sales and prof-its following the post-2008 economic downturn, most European coatings companies have been restructuring their domestic businesses to raise efficiencies and reduce costs.

They are now hoping that they can use their leaner European operations as a platform for achieving steadily rising and much more profitable sales in Europe, especially in the economically more dy-namic Western European countries.

Tikkurila of Finland, a decorative and industrial coatings producer supplying the markets in Scandinavia, Central and Eastern Europe and Russia and its neigh-bours on the eastern European periph-ery, recorded a revenue decrease of 2.6 percent last year. Yet its operating profit went up 7.7 percent to 71.5 million with a margin on sales of close to 11 percent.

In its home market of Finland sales dropped by 3.6 percent to 108 million but its operating profit jumped by 38 per-cent with a margin of 14 percent. In its Central and Eastern European business operating profit soared by 93 percent on flat sales of 125 million.

We have been modifying and simpli-fying our structures in recent years, said Erkki Jaervinen, Tikkurilas president and chief executive. These measures have sup-ported good profitability in our operations in the challenging economic situation.

BASF Coatings, which has approxi-mately 40 percent of its sales in Europe,

recorded a considerable earnings in-crease last year despite flat sales. This was partly helped by restructuring in Europe where it completed the divestment of its European decorative paints operation.

Our coatings business has been developing very nicely last year, espe-cially in emerging markets, Kurt Bock, BASFs chairman told the companys re-cent annual results press conference in Ludwigshafen, Germany.

AkzoNobels European sales of decorative paints, in which it is mar-ket leader in the region, fell 5 percent in 2013 to 2.5 billion, still around 60 percent of its global decorative sales. Yet its operating income in European decorative paints was higher than in 2012 due to a lower cost base created by efficiency improvements, according to the company which does not give a breakdown of profits figures by region or segment.

Among the restructuring initiatives in its European decorative business was the divestment of its European building adhe-sives activity to Sika AG of Switzerland. It also sold a network of stores for pro-fessional painters in Germany, while it has also been improving the effectiveness of its stores network in France.

We are taking decisive action to streamline our product range, re-duce complexity and become more

competitive, said Roud Joosten, member of AkzoNobels executive committee re-sponsible for decorative paints.

The company is implementing a new business model for European decorative products which exploits the benefits of a simplified management structure with a greater emphasis on sustainability and eco-premium paints with a high environ-mental profile.

Next year it is due to commission a 100 million green-field decorative paints plant in northeast England with an annual capacity of 100 million litres, which will replace two other UK plants and supply both the UK and continental European markets. It will use r harvest-ed rain water and consume 60 percent less energy per litre of paint output.

The companys Fix Europe agen-da which embraces both its decorative and performance coatings businesses not only covers manufacturing and distribution but also marketing, sales and administration. The objective is to have a slimmer and more cost com-

petitive structure to take full advan-tage of the expected renewed growth in Europe.

However the reorganisations being undertaken by AkzoNobel and many other European coating companies may first have to cope with the eco-nomic reverberations of the confron-tation between the West and Russia over Ukraine.

The Russian economy was already showing signs of softening before the Ukrainian uprising. In Russia consum-er confidence weakened during the last months of the year, said Jaervinen,

Companies like Tikkurila and other Western European coatings producers which have been investing heavily in pro-duction capacity, distribution networks and services support in Russia are hoping that the crisis will blow over before the time of peak demand for coatings in the country in the summer.

Otherwise not only themselves but most other European coating compa-nies will have to be much more cautious about the prospects for sales and profits not only this year but probably in 2015 as well. CW

Many Western European countries have been relying on exports to those emerging markets on their doorsteps to offset static or even declining domestic sales.

18-19 Europe 0414.indd 19 4/1/14 8:42 AM


Business Corner Strategies & Analysis

The basic

essential to the

success of VBM

is the obvious,

the C-suite must

totally understand

and support it.

by Phil Phillips, PhD Contributing Editor [email protected]

Before Value-Based Management (VBM) be-came a viable tool, organizational perfor-mance targets where imprecise or not aligned with the ultimate goals of many organizations.

The basic thesis behind VBM is that, prop-erly understood and implemented, it provides precise and plain metric value upon which the entire organization can be built.

The basic principles behind VBM is uncom-plicated: The value of a company is determined by its discounted future cash flows since value is created only when a company invests capital at returns that exceed the cost of capital.

Simple... yes but easy, no! VBM disciplines can become side tracked and sometimes hurdled or worse yet pigeon-holed in staff functions. The basic essential to the success of VBM is the obvious, the C-suite must totally understand and support it.

Given the C-Suite buy-in, there are two fun-damental sub-functions that are musts if VBM is to succeed in any organization:

Focus Alignment

FOCUS: There must be a total focus on how a company uses capital to make everyday deci-sions and...ALIGNMENT: Alignment of the companys aspi-rations, diagnostic techniques, and management processes to focus on decision-making on key

drivers of value at all levels of the organization.VBM provides decision-makers at all levels,

with the correct information plus incentives to make value-creating decisions. Incentives are set by Senior management through specific fi-nancial targets via strategic review interplay between managers and superiors.

VBM is considered working when an orga-nizations management processes provide decision-makers at all levels with accurate information and incentives to make value-creating decisions. Additionally, the managers own assessment would be based on long-term as well as short-term targets that measure progress toward the overall value cre-ation set of goals and objectives.

The topic of VBM cannot be comprehen-sively examined within the confines of a col-umn, however, we can list highlights of essential elements that should be examined further:

Remember, VBM is implementation of val-ue maximization as the final financial ob-jective for your company. Financial goals are . . . set in terms of discounted cash flow value and translated to short-term finan-cial performance objectives.

Nonfinancial goals: customer satisfaction, innovation, employee satisfaction

Objectives must be customized to different levels within your organization. Functional managers and Production managers ob-jectives will be different.

Find the value-drivers at all levels of your organization and translate them up and into the whole company. CW

Value-Based Management Its Still Around and Evolving Into A Best Practice 3-Dimensional Operational Tool

Old planning systems vs. VBM

20 Biz Corner 0414.indd 20 4/1/14 8:45 AM


FEATURE

Resins Market UpdateBridget Klebaur, Associate Editor

The resins market for 2014 has continued to show signs of recovery from the economic downturn, and business is continuing to hold steady. Sylvia Insogna, North American marketing director, Dow

Coating Materials, said that Dow is optimistic for the 2014 res-ins market. As a whole, we are optimistic that the 2014 resins market will continue to show recovery, especially as the global architectural coatings market enters the growth mode, led by the rebounding U.S. housing market and continued growth in paint purchasing in emerging economies, Insogna said.

John Hiel, North America marketing manager, Arkema Resins explained that the market is still in recovery from the past few years of economic turmoil. The industrial resins mar-ket is slowly recovering from the economic downturn, but the results are mixed. Some segments, such as automotive and coil coatings are recovering more rapidly than others, Hiel said. The architectural coatings market showed mid- to high single-digit growth in 2013 as both the DIY and PRO sectors ben-efited from a rebound in the existing homes sales. Unit turnover and property upkeep demands as a result of increased mobility of renters and homeowners were the drivers of gallon growth. Construction activity was strong too.

Yasmin Sayed-Sweet, vice president of sales and marketing, Alberdingk Boley Inc. explained that they have seen improve-ments in the market over the past two years, although the growth is regional and is strongly dependent on the end use market.

Julie A. Fuell, sales director, Reichhold, said that they saw slight improvements this year.

While we saw slight improvements in 2013 from the eco-nomic downturn, 2014 projections are more promising due to improved housing starts and overall GDP growth projections for the coatings sector. Fuell said.

Steve Reiser, vice president of sales and marketing, Specialty Polymers Inc., explained that in 2013 the polymer business con-tinued to recover from the economic downturn.

BASF noted that the coatings market is continuing to show slow growth that follows the GDP growth for 2014.

The Georgia-Pacific Chemicals coatings business held steady during the recent economic downturn.

The feeling from our customers is that, in general, it has been a solid year, said Rod L. Smith, senior account manager coatings, Georgia-Pacific Chemicals LLC. There is an increased focus on looking forward and on growth, rather than focusing on the impact of the downturn. At Georgia-Pacific Chemicals

we are concentrating on meeting future customer needs. Emerald said that specialty resins segment has recovered to

pre-recession levels, and is continuing to grow. We have seen strong demand for our performance epoxy

resins and reactive liquid polymers, said Charles Zarnitz, direc-tor of sales and marketing for Emeralds CVC thermoset spe-cialties business group. These materials are typically used in demanding applications such as industrial maintenance, primers in automotive and aerospace and concrete coatings.

Celanese also found that there has been modest recovery in 2013. New construction and existing home sales were both up con-

siderably and helped to fuel some growth in 2013, said Brad Moncla, marketing manager, Celanese. One challenge observed though is the disconnect between the growth in existing home sales and paint sales. Over the past few decades, there has been a very close relationship between existing home sales and paint demand. In 2013, existing home sales grew by about 10% over 2012. Paint sales grew by only half of that figure. In 2014 and beyond, it will be instructive to see if this was an aberration and if there are changing dynamics in what drives consumers to paint.

Dow found that customers were working to enhance their formulations to meet consumer demand for high-performing, highly functional and sustainable paint.

Our customers are working to enhance their formulations to meet consumer demand for high-performing, highly functional, more sustainable paint, Insogna said. Among these demands are resins that help formulators develop paint using fewer raw materials like titanium dioxide while increasing hiding and life cycle to help boost a paints sustainability. Formulators are also looking to develop high performance paint that is easy to use, dries quickly, looks perfect and lasts long while looking fresh and new every day. New resin technology can enhance resis-tance to household stains and dirt pickup while blocking tannin stains and resisting corrosion along with providing high hiding properties. When it comes to functionality, consumers expect their paint to have staying power, but also want easy applica-tion, including formulations that combine primer and paint. They are also expecting paint with less odor.

Hiel said that end-use customers continually focus on reduc-ing film weights and numbers of layers in multiple coat systems. These higher performance expectations demand higher perfor-mance resins, especially in the areas of corrosion resistance, he said.

Fuell said that Reichhold sees many demands from customers

21-23 Resins FEATURE 0414.indd 21 4/1/14 2:25 PM

FEATURE Resins Market Report


in the resin market.Demands that customers are making on the resin suppliers include: higher performance, environmentally friendly and cost-effective products, she said. Environmental regulations and company sustainability goals are driving the trends that the market expects to see.

Thomas Hall III, market segment manager, industrial mainte-nance, transportation and industrial coatings & plastics, disper-sions & pigments division, North America, BASF Corporation said that the demands of customers continue to be aligned with the major trends in the market. The major trends in the market continue to be: increase the life of coatings systems and reduce the labor cost associated with the preparation and application of coating systems, Hall said. Also to focus on minimizing the impact on the environment by reducing VOC content and im-proving the performance of WB technologies.

Sayed-Sweet explained that increased performance continues to be a demand. Increased performance is always a customer demand however with the soft architectural and industrial mar-ket we are under price pressure from regional and global cus-tomers, Sayed-Sweet said.

Customers continue to rely more heavily on their polymer supplier for technical support, higher performing products and personal attention.

Specialty Polymers customers, and potential customers, are looking for products that give them an edge in the market, Reiser said. To gain that edge, we are seeing an increased need for higher performing products, customized for their applica-tion. They also look for increased technical support throughout the evaluation process, to help maximize the products effective-ness in their specific application.

Lower cost and lower volatile Organic Compounds (VOCs) are constant requests from customers, but customers insist that these demands not have a negative effect on performance.

Performance is always the primary driver, Smith said. At Georgia-Pacific Chemicals, we work closely with our customers to understand their performance objectives so that our formulation solutions are balanced appropriately. This collaborative relationship means that we can develop resins, including products with optimized solid levels, in the context of the customers total formulation to ad-dress cost and performance characteristics of the customers end products. Of course, new performance requirements arise. For ex-ample, we have a new coatings resin developed to tackle the need for chemical resistance in high temperature applications.

For specialty epoxy systems, customers seek improved ele-vated-temperature performance, flexibility, toughness, solvent-re-sistance, adhesion, longer recoat time, blush resistance and lower VOCs,said Zarnitz. Some customers are also seeking environ-mentally friendly options beyond just lower VOCs, such as BPA replacements and materials based on renewable resources.

For Celanese, balancing performance and cost is a uni-versal requirement. Achieving that balance though depends on the specific product the customer is selling, Moncla said. For highly price sensitive applications, customers are asking for some specific improvements in performance while keeping cost increases minimal. For more specialized applications where

paint performance can provide higher margins to the customer or greater market share, the balance tips toward performance driving with cost being less critical. Dow manages to balance customer demands and the rising costs associated with manufacturing resins by striving to of-fer performance and cost benefits to customers. Dow strives to offer performance and cost benefits to our customers with multifunctional products that enhance formulations, such as EVOQUE Pre-Composite Polymer Technology, Insogna said. In a typical paint formulation, titanium dioxide is not uni-formly distributed, decreasing hiding efficiency. Instead of add-ing more TiO2 to compensate for low hiding efficiency, paint formulators can maintain hiding performance while using up to 20 percent less TiO2.

Arkema focused on providing the resins that create the most customer performance value and consolidating choices when there are opportunities to do so. In many cases, customers have found ways to formulate with fewer raw materials, thereby sim-plifying their product mix and inventory costs, Hiel said.

Reichhold strives to provide products that meet customer de-mands, but it is challenging to provide high performance, environ-mentally friendly and cost-effective products all at the same time. Reichhold partners with our suppliers to jointly find new and inventive ways to meet these demands while at the same time maintaining an affordable resin, Huell said. BECKOSOL AQ is our system of choice to meet all three of these demands.

One of Alberdingk Boleys company initiatives is constant evaluation and continuous improvement of our performance at all levels whether it is in manufacturing of dispersions, customer service or technology innovation, Sayed-Sweet said. Also, we are always looking for the best sourcing of raw materials globally.

BASF keeps an open dialogue to ensure that customers needs are being met. BASF spends a lot of time listening to our cus-tomers to understand the market demands for their respective business, Hall said. Through this dialogue, BASF is able to develop products that meet or exceed the expected performance requirements with an attractive value proposition.

As customers demands increase, Specialty Polymers found that the closer they worked with customers the better they were able to support their product development process.

To respond to our customers need for increasing techni-cal support weve expanded our lab, added equipment, and increased both our technical and sales staff, Reiser explained. This enables Specialty Polymers to work closer than ever with customers, ensuring we clearly understand their application and performance requirements. Weve seen an increase in customer requests for special products, packaging, labeling, and short lead times. To provide the flexibility and responsiveness needed to meet these customer demands, Specialty Polymers has made significant investments in our production plants and staffing.

Celanese focuses on managing customer demands versus cost through proper contracting of key raw materials as well as backwards integration into main monomers. These programs help insulate Celanese from some of the volatility present in many of the building block commodities, Moncla said.


FEATUREResins Market Report


A key to the success of Georgia-Pacific Chemicals is endeav-oring to understand exactly what the customers need and sup-plying products in such a way that customers are paying for what they value.

New Products Georgia-Pacific Chemicals recently developed a coatings resin for industrial drum and pail applications that provides chemical resistance similar to the performance of Bisphenol A-containing resins. In addition, we have active projects featuring high temperature resistant phenolic resins for primers, Smith said. These products are for nonflexible tubular applications such as tankers and piping. Our approach to customization involves product development determined by the customers specific ap-plication.

Arkema has developed SYNAQUA 4804 and SNAP 728.SYNAQUA 4804 is an alkyd emulsion that delivers outstand-ing hardness, fast dry time,high gloss potential, plus excellent gloss retention. This versatile APEO-free binder is a good choice for many applications, including: high gloss trim paints, wall and ceiling paints in sheens from flat to high gloss, primers for interior or exterior wood or metal substrates, direct-to-Metal coatings with anti-corrosive properties, transparent and semi-transparent stains.

SNAP 728 latex is ENVIA certified and employs a novel binder technology designed to be used in satin to high gloss fin-ishes in both interior and exterior applications. SNAP 728 latex provides formulators with the following performance benefits: Superior block resistance at both room temperature and high temperature in no or low VOC formulations, excellent enamel-like film hardness compared to standard acrylic binders.

Two new resins developed by Reichhold include BECKOSOL AQ 400 and UROTUF F600-W-40. BECKOSOL AQ 400 is de-signed for traffic stripe coatings for non-highway applications such as parking lots. Coatings made with this product exhibit superior appearance and durability over asphalt and concrete surfaces and are a biobased alternative to acrylic systems.

UROTUF F600-W-40 is a self crosslinking waterborne ur-alkyd designed for garage floor coatings. Performance of these 100 g/L VOC coatings rival higher VOC systems in terms of dry time, hardness, chemical resistance, adhesion and hot tire pick-up resistance.

Dow Coatings new FORMASHIELD 12 100% Acrylic Binder was developed for premium interior paints in response to growing concerns about Indoor Air Quality and the health effects associated with exposure to formaldehyde. FORMASHIELD 12 Binder offers irreversible formaldehyde removal from ambient air in homes and commercial buildings. Other features and ben-efits include solvent-free formulating capability, good washabil-ity, excellent adhesion, ultra-low VOC capable and low odor/APEO-free.

Dow also developed MAINCOTE IC Acrylic Resins which offer a cool solution to unintended heat loss and corrosion under insulation in industrial infrastructure. Designed for use with low thermal conductivity fillers such as hollow glass microspheres

or aerogel, these esins create a new category of liquid insulation coating that offers low thermal conductivity in an easy spray application.

Alberdingk Boley has developed U 9900, a solvent free, self-crosslinking polyester based polyurethane dispersion that offers high quality performance for wood applications. It has high surface hardness and very good chemical resistance, also for pigmented formulations. It is also recommended for two pack wood floor coatings with excellent performance that meets MFMA specifications. They also developed LUX 220, a versatile solvent-free, UV curable polyurethane dispersion recommended for high quality wood and PVC coatings, clears and pigmented. It has outstanding chemical and scratch resistance and a very high film hardness prior to UV cure. Its excellent cure response produces films with high crosslinking dens.

Celanese introduced Avicor 385 and EcoVAE 450. Avicor 385 is a new vinyl acrylic that is APE-free and is designed to give superior performance in interior and exterior paints. The com-bination of high molecular weight, excellent film formation, and water resistance within the product yields excellent stain and scrub resistance while exhibiting great toughness and durability. The product is also designed to provide broad latitude in for-mulation paint across a range of sheen from flat to semi-gloss.

EcoVAE 450, an APE-free vinyl acetate/ethylene (VAE) emul-sion designed for low odor primer applications. This product has excellent wet/dry adhesion to a variety of substrates includ-ing alkyds, ceramics and aluminum.

Emeralds CVC Thermoset Specialties business group launched new Hypro VTBNX methacrylate terminated reactive liquid polymers, in addition to the new line of hydroxyl termi-nated butadiene (HTB) reactive liquid polymers (RLP) previ-ously launched. According to Jeffrey Tyrrell, reactive liquid polymers product manager for Emeralds CVC group, this re-cent breakthrough in technology enables Hypro VTBNX RLPs to be used in an expanded range of applications in coatings, adhesives, sealants and composites where color is important. Hypro VTBNX RLPs also improve strength and impact resis-tance and improves mechanical performance and low tempera-ture flexibility. In addition, the recently launched HTB polyols are ideal for waterproof coatings and membranes, window seal-ants, encapsulants and adhesives.

Specialty Polymers introduced RayPlus 1097 and RayPlus 1098, unique core shell polymers that exhibited excellent per-formance for a number of different applications by providing excellent chemical resistance, excellent mar and scratch resis-tance and clarity for clear coats.

Joncryl PRO 1524 is BASFs latest addition for Direct to Metal and topcoat applications for low VOC (< 100 g/l) 1K WB dispersions. Joncryl PRO 1524 delivers a high gloss fin-ish with excellent adhesion, chemical and corrosion resistance designed for exterior applications. Sovermol 750 is now avail-able from BASFs NA manufacturing facility with an improved lower APHA color. At 100% solids, Sovermol 750 can help to achieve lower solvent demand for 2K urethane clear and pig-mented coatings. CW



FEATURE

RadTechs Technology Expo and Conference will be held May 12-14 at the Hyatt Regency OHare in Rosemont, Illinois. This biennial event is dedicated to the educational, technical and scientific advancement of ultraviolet (UV) and electron beam (EB) technologies. RadTech 2014 will feature a number technical sessions. The conference will commence with Introduction to the Basics of UV/

EB Curing, which will be presented by Mike J. Idacavage of PL Industries, a division of Esstech Inc. The energy curing industry has grown tremendously since its beginnings in the early 1970s. The technology used has some simi-

larities but also quite a few differences from other well known curing technologies such as thermal curing. The use of light or low energy electrons as the energy source for curing coatings does require different chemistry and equipment. His presentation will give an introduction to the basics of UV and EB (electronbeam) curing. In addition to the basic chemistry, an overview of the equipment used for UV or EB coatings will be covered. For more information go to www.radtech2014.com.

This biennial event will feature technical talks, poster sessions and an exhibition.

RadTech 2014The Global Conference & Expo

for UV and EB Curing Technology

Photoinitiator- 8AM - 10AM Photopolymerization Using

Photolatent Amine Catalysts Allonas, University of Haute Alsace

Photoinitiating Covalently Bound Organically-Modified Clay Additives T. Brian Cavitt, Abilene Christian

University

Novel Phosphine Oxide Photoinitiators Dr Petr Sehnal, Lambson Limited

New Photoinitiators for Cationic Photopolymerization Process of Monomers Joanna Ortyl, Cracow University of

Technology

Electron Beam Polymerization- 10AM - NOONDepth/Dose Characterization of

Electron-beam Polymerization Julie Jessop, University of Iowa

Modification of Polymer Surfaces using Electron Beam Induced Graft Copolymerization Stephen C. Lapin, PCT Engineered System

Electron Beam Treatment of Wood Thermoplastic Composites Andrew Palm, SUNY ESF

Radiation Initiated Polymerization of Wood Impregnants L.Scott Larsen, NYSERDA

Metal- 1 PM - 3 PM UV Technology for Protection of

Surfaces Ben Curatolo, Light Curable Coatings

Achieving Adhesion to Difficult Metal and Plastic Substrates Dr. Mike J. Idacavage, PL Industries

New Amine Modified Polyether Acrylates with High Reactivity Paul Share, BASF Corporation

Electronics- 3PM - 5PM Graphene Based UV-Curable

Materials Marco Sangermano, Politecnico di Torino

Develop a Hybrid Conductive Film With Primer Nizamidin Jappar, Kimoto Tech Inc.

Production of Stratified Films Utilizing Photopolymerization and Monomer Reactivity C. Allan Guymon, University of Iowa

Adhesives- 8AM - 10AM High Performance Materials for

Laminating Adhesives Jin Lu, Sartomer USA LLC

A Formulators Guide to Energy Curable Laminating Adhesives Eileen Jaranilla-Tran, RAHN USA

Corporation

UV-triggered Thermosetting Film Adhesives Don Herr, Adhesives Research, Inc.

Light Curable Adhesives for Automotive and Electronic Applications and the Benefits of Surface Treatment Jeff Leighty, Plasmatreat USA and Brian

Betty, DELO Industrial Adhesives

TECHNICAL CONFERENCE TRACK A

24-26 RadTech 0414.indd 24 4/1/14 4:31 PM

Introducing our newest addition to the Laromer oligomer line of UV curable, water-based polyurethane acrylate dispersions, Laromer UA 9064 and Laromer UA 9095. For excellent warmth of wood, excellent adhesion to wood and PVC, combined with low yellowing and quick drying properties, your furniture, ooring, and cabinet coating applications will be loving their enhanced appearance. At BASF, we create chemistry.

basf.us/dpsolutions

We create chemistrythat makes wood love fast drying.

Visit us at BOOTH 1505

at ACS 2014

or

BOOTH 707at RadTech 2014

= registered trademark of BASF Group

Untitled-3 1 3/26/14 1:07 PM

FEATURE RadTech 2014


LED Formulation- 10AM - NOON New LED Photo-initiators: A

Successful Story on LED Curing of Water-borne UV Furniture Coatings

David Zhigang Wang, Shenzhen UV-ChemTech

Pushing the Limits of LED Curing and Looking Forward to a Bright Future Rodney P. Balmer or Dr.Grant T.

Shouldice (TBD), Flint Group

A 100% Solids UV LED Curable Coating Elena Komarova, Kegel LLC

UV-LED Photoinitiators The Right Tool for the Job Dr. Mike J. Idacavage, PL Industries, a division of Esstech Inc.

Formulating for Printing & Packaging- 1PM - 3PM Developing Formable Properties in

Energy Curable Flexo Inks Robert Kensicki, Sartomer

Self-Curing Acrylate Resin for UV Consumer Product Printing and Coating Applications Marc Heylen, Allnex USA, Inc

Mitigating Chemicals of Concern Through the Usage of Novel Energy Curable Acrylate Technology Anthony Carignano, Allnex USA, Inc. (Formerly Cytec Coating Resins)

Novel Dual Function Photoinitiators for Low Migration and Low Odor Packaging Applications Eugene V. Sitzmann, BASF Corporation

Formulation- 3 PM - 5 PM A Study for Enhancing Through

Cure Kenton Renkema, Red Spot

Formulation and Performance Advances in (Meth)Acrylate Based Sealants :A Dual Cure Feasibility Study Michael Bailey, Sartomer USA, LLC

Shrinkage of UV Oligomers and Monomers Andreas Moeck, RadLab AG

Dual UV Curing System Using a Dimethacrylate Containing a Chalcone Moiety Haruyuki Okamura, Osaka Prefecture

University

New Product Debut- 10AM NOON (FREE TO ALL ATTENDEES) Presentation by Allnex USA Inc.

Allnex USA Inc.

Custom Formulations for UV/Vis Curing with Low/No Oxygen Inhibition Neil Cramer, Colorado Photopolymer

Solution

DKSH offers Global Products and Services to the UV/EB Curing Industry

Bob Pastore, DKSH North America, Inc.

Presentation by Dymax Corporation Dymax Corporation

Presentation by Energy Sciences, Inc. Energy Sciences Inc.

Excimer lamps for photochemical surface modification and cleaning Blythe Occhipinti, Hamamatsu

Corporation

Introduction of UV/EB curable speciality monomers and oligomers for various applications Woogeun Kim, Miwon Specialty Chemical

Co., Ltd.

Presentation by Netzsch Instruments North America Dr. Robert Pieper, Netzsch Instruments

North America, LLC

Multi-Functional EB Equipment Design Karl Swanson, PCT Engineered Systems

Presentation By Qualipoly Chemical Corp Dr. Chih-Hsiang Tsai, Qualipoly

Chemical Corp.

New UV curable diluents and monomers Mark Smith, San Esters

New UV/EB Solutions for 2014 Sartomer Americas

Novel visible light cationic photoinitiators and their uses in microlithography and related applications Spectra Group Limited, Inc.

Presentation by Philips Lumileds Lighting Company Philips Lumileds Lighting Company

Presentation by Carestream Carestream

UV Industrial Inkjet / Digital Printing- 2PM 4PM Who, What and How of Digital

Printing Roy Pagan, Durst

UV Inkjet, an Emerging Industrial Market Rich Baker, Integrity Industrial Ink Jet

Integration, LLC

New Applications for UV Inkjet Inks on Existing Flexo Presses Muslim Contractor, Collins Inkjet. Kenji

Suzuki

3D Printing with UV: Prototypes and Production Dene Taylor, SPF-Inc.

UV LED Measurement- 7PM 9PM Presentation & Working Discussion

with NIST

Design Enabled by UV + EB Technology- 2 PM 4 PM The Decorative and Functional

Finishing Possibilities with UV-Cured Powder Coating Michael Knoblauch, Keyland Polymer

Opportunities for Functional Design Using Physical Vapor Deposition and UV Curable Coatings Jason Eich, Red Spot

Empowering Design & Product Development with Additive Manufacturing Zehavit Reisin, Stratasys CW

TECHNICAL CONFERENCE TRACK B

SPECIAL SESSIONSTRACK C

SPECIAL SESSIONSTRACK D

Exhibit HoursMonday, May 12: 10AM - 6PMTuesday, May 13: 10AM -6PM

Wednesday, May 14: 10AM - 2PM

24-26 RadTech 0414.indd 26 4/1/14 4:31 PM

Untitled-1 1 1/23/13 9:27 AM


FEATURE

Kerry Pianoforte, Editor

Over the past several years, both commercial

Coatings Word April 2014

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