Coatings Word January 2015

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= Registered trademark of BASF Corporation.

We create chemistryso that performanceloves versatility.

Add vibrancy and depth to your industrial coatings with Irgazin Orange L 2985 HD. It is ideally suited to the high durability demands of construction equipment coatings and versatile enough to use in a wide variety of applications:

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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.

4 | Coatings World www.coatingsworld.com January 2015

Table of Contents

29 Interior Architectural Coatings 34 Additives Industry Update38 CHINACOAT2014 Review40 Pigment Market Update

January 2015 Vol. 20, No. 1

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

COLUMNSInternational Coatings Scene ..............................19

Latin America Sika Expands Latin America FootprintEurope How Do Low Oil Prices Affect Raw Material

Suppliers?Africa Africa Liquified Natural Gas Spurs Coatings

Growth Business Corner ...................................................24

Managing Your Potential, As A So-Called Middle Manager

DEPARTMENTSEditorial .................................................................6As We Go to Press .................................................8Market Reports ....................................................10Fresh Paint ...........................................................12New Products ......................................................26Industry News ......................................................43Suppliers Corner ..................................................45People..................................................................46Meetings ..............................................................47Final Coat .............................................................50

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Cover and above photo courtesy of Benjamin Moore.

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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 Catherine Diamond [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

Steve McDaniel

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) Ria Van den Bogaert, BVBA Vandenbo

Treft 27, 1853 Strombeek-bever, BelgiumTel.: +32 2 569 8905 Fax: +32 2 569 8906

Mobile: +32 497 05 0754 [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]

As I enter into another year as Editor of Coatings World, one thing is clear: although mature, the paint and coatings market is still a vibrant and innovative industry.I plan on attending a number of conferences and technical meetings in

the next few months.

Highlights for the first half of 2015 include: The Coatings Summit: January 21-23 I will be attending the Coatings

Summit in Miami, Florida where senior coatings executives will meet for one the most prestigious forums of the industry. Hosted by the International Paint and Printing Ink Council (IPPIC) and Vincentz Network, this strategy and networking event will once again convene the industry`s global leadership to explore major trends, challenges and solutions.

The Waterborne Symposium: The University of Southern Mississippis School of Polymers and High-Performance Materials 2015 Waterborne, High-Solids and Powder Coatings Symposium will be held February 8-13, 2015 in New Orleans, Louisiana. Now in its 42nd year, this an-nual symposium has been a long-standing fixture in the international conference landscape and is always one of the most highly regarded events in the U.S. The focus is on exploring new technologies to de-velop environmentally friendly coatings.

CoatingsTech Summit: I will be attending the CoatingsTech Summit, hosted by the American Coatings Association March 9-11 in Louisville, Kentucky. This key educational event, which is held on alternate years with the American Coatings Conference, explores the most innovative methodologies and applications shaping the coatings industry.

European Coatings Show: April 21-23 Coatings World will be in Nuremberg, Germany at the European Coatings Show. The European Coatings Show covers all the processes in paints, coatings and coat-ings production. Held biennially, this is one of the industrys most anticipated and well-attended events.

Be sure to check our website and magazine for the latest coverage on these and other events throughout the year.

Gearing Up for A Busy 2015

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H.B. Fuller Company to Acquire Continental Products Limited

H.B. Fuller Company has signed an agreement to purchase Continental Products Limited, a provider of in-dustrial adhesives in East and Central Africa. This business will generate ap-proximately $2.3 million in revenue for the 2014 fiscal year. Based in Nairobi, Kenya, Continental will be included in H.B. Fullers Europe, India, Middle East, Africa (EIMEA) operating segment.

With this acquisition, we will take a significant step forward in our plan to grow in Africa, said Steve Kenny, senior vice president, EIMEA, H.B. Fuller. H.B. Fuller has a strategic focus on growth in emerging markets, and the Continental business will enable us to deliver special-ty adhesive products to key customers in the East and Central African regions. The Continental team has developed exten-sive market knowledge and exceptionally strong customer relationships, and cou-pled with their local manufacturing capa-bilities, H.B. Fuller will be able to further enhance partnerships with its customers to develop and produce new and better products for their customers.

Continental has been H.B. Fullers agent in the region since 2003.

BASF Signs Supply Contract with ShellBASF and Shell have reached an agree-ment for BASF to sell its share in the 50-50 joint venture ELLBA Eastern, Jurong Island, Singapore to Shell. The joint ven-ture, which is operated by Shell, produces styrene monomer and propylene oxide.

BASF remains globally committed to propylene oxide and its respective value chains. Therefore, as part of the agree-ment, BASF and Shell have signed a sup-ply contract to provide BASF with the necessary volumes of propylene oxide.

ELLBA Eastern started production in 2002. The plant is fully integrated into the Shell site on Jurong Island, Singapore, and has an annual capacity of 250,000 metric tons of propylene oxide and

550,000 metric tons of styrene monomer. The ELLBA joint venture between Shell and BASF in Moerdijk, the Netherlands, is not affected by the transaction.

Eastman Chemical to Join Together for SustainabilityEastman Chemical Company has an-nounced it will join Together for Sustainability (TfS). Eastman and TfS have confirmed acceptance of Eastmans application to the consortium as the first U.S.-based company to join, with plans to finalize Eastmans membership in early 2015.

Together for Sustainability is a pro-curement-led initiative established by European-based multinational companies to drive improvements in sustainable pro-curement through standard processes, in-cluding shared audits and assessments. As a global specialty chemical company with

significant business in Europe, Eastman has been working closely with TfS to understand membership requirements to expand the organization to U.S.-based companies. Mike Berry, Eastmans chief procurement officer (CPO), will represent Eastman on the TfS General Assembly as well as in the CPO Meetings.

Eastman has a long history of sus-tainably-focused operations. For more than 25 years, Eastman has been a leader in Responsible Care. For the past three years, Eastman has been recognized by the U.S. Environmental Protection Agency as an ENERGY STAR Partner of the Year, winning the Sustained Excellence Award in 2014. Eastmans commitment to sustainability crosses all businesses and functions, notably its Integrated Global Supply Chain encom-passing procurement, logistics and sup-ply chain execution. CW

Index to Companies

This 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 ...................................................................................................... 11

Axalta ..................................................................................................11, 26, 50

Benjamin Moore ............................................................................................. 29

Berger Paints ................................................................................................... 22

Chemical Concepts .......................................................................................... 26

Dampney Company ........................................................................................ 26

H.B Fuller ......................................................................................................... 8

PPG ......................................................................................................11, 26, 29

Sherwin-Williams ...................................................................................... 26, 29

Sika ................................................................................................................. 19

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On a global scale, Southeast Asia repre-sents the fourth largest market for synthetic latex polymers, accounting for eight per-cent of the global consumption, accord-ing to the recently published Synthetic Latex Polymers: Southeast Asia Market Analysis and Opportunities report by global consulting and research firm Kline & Company. Although it is significantly smaller than the leading global markets, such as the U.S., Europe and China, it is still much larger than the developing markets of the Middle East, Brazil and India. Within Southeast Asia, countries such as Malaysia, Thailand and Indonesia ac-count for 82 percent of synthetic latex polymers consumption in the region. Acrylonitrile-butadiene (AB nitrile) is the leading product type, accounting for 44.6 percent of the total consumption in the region by volume, followed by sty-rene acrylics.

Product split varies from one country to another. Latex consumption in Malaysia and Thailand is dominated by AB nitrile due to the large importance of the glove dipping application in these two countries. The product mix in Indonesia is dominat-ed by styrene acrylics. Thailand dominates in consumption of pure acrylics, which is the third-largest type of synthetic latex polymers consumed in the region.

The product split in this region can-not be compared to any other region in the world, said Nikola Matic, industry man-ager of Klines Chemicals and Materials Practice. In other regions, paints and coatings or paper applications usually represent the largest consumers, while the product split in Southeast Asia is strongly affected by the importance of the glove dipping industry in the region.

The supplier landscape is also very specific in this region. Due to its frag-mentation the market is characterized by a high degree of rivalry among existing suppliers. Moreover, the top ten suppli-ers account for over 60 percent of the market with several production bases

available in the region. This competition creates various barriers for those look-ing to enter the market.

Suppliers consist of two tiers of compa-nies: multinational companies, with a di-verse regional base; such as Synthomer, Dow Chemical, BASF, Archroma and Dairen. Regional companies, such as Eternal, Dovechem, Bangkok Synthetics and Arindo Pacific, complete the competitive landscape.

Due to its strong position in glove dip-ping, Synthomer is the largest supplier of synthetic latex polymers, specifically AB ni-trile and high solids styrene-butadiene (HS-SB). BASF comes in second and is a leading supplier of styrene acrylics in the region, particularly in paints and coatings and con-struction industries. Kumho Petrochemical is the third largest supplier of synthetic la-tex polymers and second-largest supplier of AB nitrile and HS-SB in the region.

Due to a strong correlation to the positive GDP growth in these country markets, the Southeast Asian market for synthetic latex polymers is forecast to grow, increasing at a compound annual growth rate of 6.5 percent through 2018.

Micronized PTFE Market $868.29 Million by 2019According to a new report by Markets & Markets, Micronized PTFE Market by Application (Inks, Thermoplastics, Coatings, Grease & Lubricants, Elastomers), by Geography - Global Forecast to 2019, the market has a pro-jected value of $868.29 million by 2019, signifying firm annualized growth of 7.06 percent between 2014 and 2019. PTFE micro powder or micronized PTFE is made from virgin polytetrafluo-roethylene resin or recycled PTFE scrap.

The micronized PTFE market in Asia-Pacific is one of the fastest-growing con-sumers across the globe and is expected to continue the trend in the near future. Asia-Pacific is the biggest market for micron-ized PTFE, and accounted for a share of more than 38 percent of the total market

size in 2013 that was majorly contributed by China. It is estimated that India is the fastest-growing market of micronized PTFE in the region. The high growth in this region is mainly driven by growing population, vast economiesdeveloped as well as developing, favorable investment policies, and government initiatives to promote industrial growth.

Inks are the biggest application for the micronized PTFE market, followed by thermoplastic having a combined market share of around 66 percent of the total micronized PTFE used in 2013. Inks require different additives in order to achieve the right formulation for us-age in different end-user industries. The selection of additives for inks is highly critical because any deviation from the required properties may result in entire formulation being destroyed. PTFE micro powders in inks are sought out for their value-added properties such as small par-ticle size, abrasion/rub resistance, and blocking.

The U.S. and China are at theforefront of PTFE micro powder consumption, while Germany, Japan and the U.K. are other key markets for micronized PTFE consumption. China is the key market in Asia-Pacific, consuming more than half of the demand for PTFE micro powders, fol-lowed by Japan, South Korea and India where consumption is growing steadily. Increase in the consumption of PTFE micro powders for inks, coatings, and thermoplastics has been observed in Asia-Pacific due to continued industrialization and rise in the manufacturing sector of the region. Thermoplastic is projected to be the fastest-growing application segment followed by grease & lubricants between 2014 and 2019. Inks are expected to wit-ness a slow growth due to the growing digital media industry, which is substitut-ing the demand for printing ink products. PTFE micro powders in inks are sought out for their small particle size, abrasion/rub resistance and blocking. CW

Southeast Asia Fourth Largest Synthetic Latex Polymers Market Globally

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PPG Industries has released its annual automotive color popularity data, show-ing that white continues to be the most popular car color globally based on 2014 automotive build data.

According to PPGs global data, white ranked first (up 3 percent from last year to 28 percent), followed by black (18 per-cent), and silver and gray tied for third (13 percent each). Silvers popularity con-tinues to decrease across the globe, drop-ping seven percent over the last two years.

Car manufacturers across the world are continually seeking new ways to cre-ate a unique appearance for models and vehicle brands. As color selection takes place two or three years in advance of a model year, it is important for auto mak-ers to combine color popularity with global consumer trends, said Jane E. Harrington, PPG manager, color styling, automotive OEM (original equipment manufacturer) coatings. Today, auto-motive manufacturers can choose from a broad array of colors as well as a wide assortment of variations of conservative hues such as white, silver, black and gray, and distinct effects such as micas, glass flakes, fine bright aluminum and hue-shifting pigments.

Regional trend highlights from the 2014 data include:

In North America, white remains most popular (23 percent), followed by black (18 percent), gray (16 per-cent) and silver (15 percent).

In South America, silver and white lead in popularity (32 percent each), followed by black (13 percent), gray (11 percent), red (8 percent) and blue (2 percent).

In Europe, white remains most popu-lar (25 percent), followed by black (15 percent) and gray (14 percent), and natural shades such as golds, beiges, yellows, oranges and browns continue to grow in popularity (12 percent).

In Asia Pacific markets, white re-mains most popular (31 percent),

followed by black (20 percent) and silver (12 percent).

Across North American vehicle types manufactured in 2014, PPG found that:

Ten percent of automobiles were coated in natural hues such as golds, beiges, yellows, oranges and browns. Browns in particular are growing in popularity in midsize and sport util-ity vehicle (SUV) models.

Sports models continue to be the most likely to feature red, blue or green shades. All three colors over-took gray and silver as more popular colors for sports models.

Luxury vehicles, 24 percent of which were white in 2014, are most likely to feature effect finishes such as me-tallic or pearl tri-coat.

Looking to 2015 models, Harrington said PPG believes drivers will continue to see an increase in natural tones such as coppers, oranges and browns. New models also may be influenced by metal tones such as bronze, pewter and rose gold, which have had a significant influ-ence across fashion, jewelry, furniture and industrial design in recent years. In addition, consumers will have access to the same high-definition experience they now readily consume across entertain-ment platforms, with access to high-depth color a deeper, richer version of color especially in 2015 models that of-fer blues, reds and yellows.

In response to continued demand for color innovation in automotive coatings, PPG introduced 63 exterior shades to manu-facturers for consideration in styling 2017-2018 model year vehicles. Titled Elements, the collection includes four palettes:

Good Life captures the harmony be-tween man-made and natural elements, emphasizing a spirit of respect for nature and simplicity, and enabling drivers to dis-cover their best balance with life. The pal-ette includes earth tones, golden yellows, weathered browns and foliage greens.

Im Pulse reflects the movement of

consumers to take control of design through their connections via social me-dia and the growing popularity of the maker movement. The palette includes bold bright hues, opaque pastels and ur-ban neutrals.

Co-Leidescope reflects the growing global eclecticism that is inclusive of ethnicities and cultures. The palette in-cludes spicy-hot reds, gemstone greens, plum and indigo blues that create a bo-hemian flare.

Introsense represents a new direction in minimalistic styling that blends clean, pared-down designs with a quiet nature. The palette includes pale-washed blues, greens, corals and purples combined with light, nuanced neutrals.

PPG engages a network of more than 25 color experts with a focus on au-tomotive, architectural, aerospace and consumer-products markets. These spe-cialists analyze design trends, consumer preferences and priorities across regional, cultural and global markets to determine factors that will influence future color choices. The new colors and palettes in-troduced this year for automotive man-ufacturers reflect developments across these markets and influences.

U.S. Green Building Council Announces Extension of LEED 2009The U.S. Green Building Council (USGBC) will allow LEED users to regis-ter projects under the LEED 2009 rating system until Oct. 31, 2016. The original date for LEED 2009 registration to close was June 15, 2015. Extending to October 2016 gives LEED users and members of the green building industry additional time to prepare for LEED v4, the lat-est version of LEED, which features in-creased rigor and multiple updates.

When USGBC launched LEED v4 last year, we set out with one goal in mind to raise the bar in a way that challenges the building industry to reach higher than

PPG Data Shows White Continues to Dominate as Most Popular Global Vehicle Color

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ever before. This is our nature and USGBC and its members collective mission, said Rick Fedrizzi, CEO and founding

chair, USGBC. However, the market has requested additional time to prepare for LEED v4, so we are responding.

In a survey conducted at last weeks Greenbuild conference, 61 percent of respondents said they are not ready or unsure if they are ready to pursue LEED v4 and require additional time to prepare. Extending LEED 2009s avail-ability enables USGBC to work with the broader industry within a longer time frame to drive meaningful and compre-hensive change.

Our international LEED users, which account for some 50 percent of new LEED registrations, have also indi-cated they would like to have more time to move onto the new rating system, Fedrizzi noted. This extension will be especially helpful to them.

LEED v4 has been in the market for nearly one year and will remain available for those market leaders who are ready.

LEED v4 wasnt designed to be easy. It is the next generation of green build-ing, and we are confident the market will meet us there as they have in years past, added Fedrizzi. When USGBC first pi-lot tested LEED in 1998, there werent many buildings that could qualify for LEED certification at the Platinum level. Now, more than 1,000 buildings have achieved it. With LEED, we have a re-sponsibility to set a high bar and we know that many leaders are capable of reaching it, presently or in the very near future. We want to support our LEED users as they move the market forward with us, and allowing them to utilize the LEED 2009 rating system for a little lon-ger will help facilitate that.

USGBC continues to develop new resources that support the markets adop-tion of LEED, added Fedrizzi. The LEED Dynamic Plaque provides a vivid, real-time visualization of building per-formance data spanning water, energy, occupant satisfaction and more, giving building owners critical insight into how their building is performing. Every day, LEED is contributing to scores of new,

innovative building technologies in the design, manufacturing and construction process, and has brought new, healthier building materials to market.

LEED has facilitated spectacular ad-vances in building technologies, integrat-ed design and operating practices. LEED is also largely responsible for the explo-sive growth of the green building sector, which supports or creates 7.9 million jobs across all 50 states and contributes $554 billion to the U.S. economy annually.

PPG Launches Mobile Website for Masters Mark BrandPPG Industries architectural coatings business in China recently launched a mobile website on the WeChat public platform for the Masters Mark paint brand. The official brand account for the popular social media tool in China is the first mobile website PPG has launched on Chinese social media.

PPG Architectural Coatings in China is dedicated to developing the official account on WeChat for the Masters Mark brand into a service platform for home decoration and living informa-tion. The newly launched site consists of four sections Product Center, Paint Service, Paint Calculator and Masters Video.

In the Product Center section, con-sumers can find information about prod-ucts to meet their needs at any time and any place. Visitors can use the Paint Calculator function to find how much paint is needed for a project when they input the construction area of each room to be painted. The Paint Service section offers dialing assistance to help consum-ers call PPGs customer service at 400-998-4598. Finally, the Masters Video section includes various videos offering updates on Masters Mark paint products and services.

In addition, the new social site for the Masters Mark brand provides the latest information on color trends, home deco-ration inspiration, store locations and more in an interactive way. To access it, search for the WeChat ID mastersmark and then click Follow to get up-to-date news about Masters Mark paints.

PPG Foundation Supports Chemistry Outreach ProgramMore than 250 students at Bloom Elementary in Louisville, KY teamed up with chemistry adventurer Ion Jones on a global quest to explore rainforests, deserts, glaciers, ancient temples and pre-historic carbon deposits. While the jour-ney made possible by PPG Industries Foundation with support from the Community Foundation of Louisville and DDW The Color House is imaginary, the science involved is real.

Led by Ion Jones (a parody of the Indiana Jones movie hero), Ion Jones & the Lost Castle of Chemistry is a 45-minute, interactive traveling sci-ence show. Initially created by Carnegie Science Center of Pittsburgh with sup-port from PPG, the show teaches students how chemistry affects industry, technol-ogy and the environment. By the time students reach the Lost Castle, they have explored and observed chemistry in ac-tion courtesy of a fiery volcano, a cola geyser, an exploding hydrogen-filled bal-loon and other experiments.

This all-new chemistry-themed out-reach program - which includes a science show, hands-on activities and pre- and post-program materials about chemistry and chemical reactions - will be available to travel to schools and other locations throughout the region.

The need to inspire and embed a culture of science literacy in Kentucky is crucial to the future of the region. Our strategic plan, Unbridled Science, re-sponds to that need by challenging us to reach more students beyond the borders of our building. This dynamic new pro-gram does just that, explained Science Center executive director Joanna Haas. With support from PPG, a Fund for Louisville capacity-building grant from the Community Foundation of Louisville and D.D. Williamson, we are launching Ion Jones, a self-sustaining, on-the-road program that will introduce students across the region to the critical discipline of science and inspire them to become life-long learners.

This program will join the ranks of the Science Centers other successful traveling


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.

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outreach program, Captain Current vs. The Electricity Vampires, powered by LG&E and KU. After over two years of

traveling, Captain Current has reached more than 10,500 students around the region.

PPG is thrilled to help expand Ion Jones to the Kentucky Science Center. We are strongly committed to enhancing edu-cational initiatives that garner interest in science, technology, engineering and math (STEM) such as the Kentucky Science Center programs, said Sue Sloan, execu-tive director, PPG Industries Foundation. We are excited to bring this program to Bloom Elementary and other schools in the Louisville area, and we hope it helps students experience how fun and exciting science and technology can be.

Ion Jones & the Lost Castle of Chemistry includes up to 10 hands-on ac-tivity stations where students explore and learn chemical processes, reactions, and how to use chemicals safely. The program also incorporates curriculum connections relevant for grades K-8 and can be tai-lored to each audiences needs.

The program is offered at various pric-ing levels for experiences serving up to 500 students. For booking and addition-al information, visit KYScienceCenter.orgor call 502-561-6100, ext. 6111.

Axalta Releases New Color Accuracy Tool in ChinaAxalta Coating Systems has launched Acquire Plus EFX to the Chinese mar-ket, a high technology-based hand-held spectrophotometer that measures color with precision. The Acquire Plus EFX is already in use by some of the premium body shops across the world, particularly in the U.S., Europe and Japan.

The Acquire Plus EFX is a third gen-eration, German-engineered spectro-photometer specifically designed for waterborne refinish systems to improve the accuracy of the color match. It can measure the sparkle of flakes in coating in addition to the respective light or dark-ness and color of the paint.

The Acquire Plus EFX has been de-signed with body shop customers in mind, and is especially useful for those in the col-lision repair industry who need colors that

are ready to spray quickly. It is designed to enable the testing and adjustment of difficult colors to be performed faster and easier, it has a more user-friendly interface that comes complete with an update in ad-joining software that works with the tool for color testing and matching.

Cromax Bike Team Netherlands Cycles for Make-A-WishCromax, one of the three global refinish brands of Axalta Coating Systems, has started a new initiative in the Netherlands: the Cromax Bike Team. The teams aim is to offer Cromax customers in the Netherlands an accessible, easy and fun way to give back to the community. It offers busy bodyshop owners the opportunity to help fulfill their corporate social responsibility.

The newly formed Cromax Bike Team will take part in regional cycling tours ev-ery year. Then, once a year, a larger event for the cyclists will be organized: the Cromax Ultimate Challenge. This will see participants setting their own individual performance goals, racing to improve per-sonal bests. But the real winner of all the events will be Make-A-Wish Netherlands, for which the team will raise money through its corporate sponsorship, partici-pants sponsorship and other fundraising activities. Make-A-Wish is a non-profit organization that fulfills the wishes of chil-dren aged between 3 and 18 years old who suffer from life-threatening illnesses.

Tonio Amaddeo, sales manager for Cromax in the Netherlands, says, The original idea for the Cromax Bike Team was born out of two pieces of informa-tion. First, we know from our experience with our customers that we can create positivity if we join our efforts. And sec-ondly, many of our customers are avid cyclists. So the aim is to get all these en-thusiastic people together and organize activities to achieve meaningful goals, personally and for our community. From the start, our ambition was to donate any money we raised to a good cause.

Christel Bockting, Netherlands Regional Action Coordinator, Make-A-Wish, says, We are very grateful for ev-ery companys work. It is so important to us. The fact that businesses choose

Make-a-Wish is fantastic. The Cromax Bike Team initiative really has the poten-tial to grow into something beautiful. It looks like, thanks to the teams efforts, we can make many children happy. And we have witnessed so much enthusiasm from Cromax already, there is a clear feeling that we are working together to help the children.

The first Cromax Ultimate Challenge was held in Veluwe, a central location in the Netherlands, on Wednesday, October 29. At the event, Amaddeo presented a check for 10,560 for the charity, on be-half of Cromax, to former leukemia suf-ferer and ambassador for Make-A-Wish Netherlands, Juliette.

The following companies have sup-ported the initiative and are sponsors of the Cromax Bike Team: A.A.S., Gebr. Ferwerda, Geeraets Autolak, Heuvelland Autoschade, Inducar Protection Coating, Luijten-VVZ, N3Wstrategy, Roks Autoschade en Vanesch Verf.

Axalta Presents Advances in Powder Coatings for Corrosion Protection and Visual Appeal

Chemists Christopher Lopez and Reena Reddy from Axalta Coating Systems presented their work on powder coatings at FABTECH 2014 in Atlanta, Georgia. The metal forming, fabricating, welding, and finishing event is estimated to attract 27,000 attendees. Lopezs talk showcased the use of Axaltas fusion bonded epoxy (FBE) powder coatings that are designed to help protect metal pipelines for transporting oil, gas or water. Reddys presentation focused on Axaltas powder coatings that have me-tallic visual effects for exterior and inte-rior applications.

FBE powder coatings are widely used to help protect pipeline structures from corrosion, given that they are formulated to offer enhanced physical and chemical stability, resistance to soil stress, adhesion to metal, and resistance to abrasion and corrosion mitigation.

Properties of the FBE are affected by selection of epoxy resin and other com-ponents, such as curing agents, pigments and additives, described Lopez. When we develop our FBE coatings, we con-sider not only the coating properties that


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Results of U.S. Architectural Coatings Industry Research Report Which Compared Business Trends in 4Q14 vs. 4Q13

Each month, North Coast Research surveys a large sample of paint retailers throughout the U.S. 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 primarily 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 inquiries regarding this report please contact Kevin Hocevar at 216-468-6924 or [email protected].

Architectural Coatings Sales Volumes Up 1.6% in 4Q14 vs. 4Q13According to industry participants, average sales volumes in-creased 1.6% in 4Q14 compared to 4Q13. This compares to re-cord volume growth in our index of 2.6% in 2Q14 (which benefit-ted from the roll-out of Valspar brand paint at Ace Hardware) and 1.2% in 3Q14. Weather conditions improved across the country as the paint season entered its busy season in 2Q14 and the industry saw paint sales accelerate which tempered off slightly in 3Q14 but actually picked-up again slightly in 4Q14 or at least on a year-over-year basis. Paint volumes continue to progress in a positive direction dating all the way back to the inception of our coatings survey in early 2013. We are encouraged with the positive underlying trends that have persisted through 4Q14 as paint volumes continue to grow. Overall, 53% of respondents witnessed an increase in paint volumes vs. only 18% that saw paint volumes decline, which averaged out to 1.6% year-over-year volume growth with a net increase of 35%.

Price of Paint from Suppliers 4Q14 Paint Prices Largely Flat as Prior Increases Have Anniversaried 50% of contacts noted that the price of paint from suppliers was flat in 4Q14 vs. 4Q13 as our paint price index only rose 0.7% which compares to average increases of 1.5%-2.0% in 2013 and in-line with our paint price indexes of 0.8%, 1.0%, and 0.8% in 3Q14, 2Q14, and 1Q14, respectively. Bottom line, we believe that price increases from when coatings manufacturers were trying to recover rising raws have anniversaried so we believe price increases are more tactical and less pronounced with 2H14 marking the first time the majority of contacts reported flattish pricing. Overall, 42% of respondents witnessed an increase in pricing vs. only 9% that saw pricing decline, which averaged out

to a 0.7% increase in year-over-year price with a net increase of 33% as the majority of contacts (50%) reported flat year-over-year pricing in 4Q14.

Raw Materials TiO2 Remains Benign and Crude Oil Prices Showing Pressure on Oil-Based Raw MaterialsTitanium dioxide (TiO2) prices have been stable to slightly de-clining in recent months following sharp declines in early 2013. Also, propylene which is largely tied to fluctuations in crude oil pricing has dropped significantly this week. Based on con-versations with coatings raw material distributors, very few raws have seen declines thus far due to the decline in oil prices; how-ever, contacts believe raws will come down in 2015 (maybe as soon as 1Q15) which could lead to meaningful price/raw ben-efits for manufacturers as paint pricing tends to be sticky. We view the current price/raws relationship as a slight positive for paint manufacturers and believe the relationship has the poten-tial to become increasingly favorable in 2015 as oil-based raws see more meaningful declines in price.

3-Month Outlook Outlook Favorable Despite Arrival of Winter Months and Seasonally Slower DemandOur proprietary Coatings 3-Month Outlook Index reached 0.36 in 4Q14 which compares to a reading of 0.57 both year-over-year and sequentially. Due to the upcoming winter season, outlooks at this time of the year tend to come in lower as contacts gener-ally compare their current volume performance to the expected volume performance over the next 3 months which are consid-ered the slowest months of the year. Please note that the high-est possible reading is +2 (indicating all contacts have a very positive outlook) and the lowest possible reading is -2 (indicat-ing all contacts have a very negative outlook).



we desire, such as corrosion protection, exibility, impact resis-tance and chemical resistance, but also the application process that our customers use to apply the coatings. In addition, we also provide a variety of powder coating systems such as single layer systems and dual layer systems to help meet our custom-ers needs, Lopez emphasized.

The durability and stability of powder coatings can help to maintain the structural integrity of the underlying metal that they are designed to protect. However, when special effect metallic pig-ments, such as aluminum, gold, bronze or copper are used in pow-der coatings, the visual appeal is sometimes the customers key property. Reddy and her team identi ed factors that in uence the optical properties of the metallic pigments in powder coatings.

Solid color powder coating overspray can often be recov-ered and returned to the coating system to help allow customers to achieve nearly 100% use of powder coating materials. There is a process called bonding in metallic effect coatings where the pigments are fused to the powder particles to help allow for ex-cellent reclamation, explained Reddy. When proper effect pig-ments are selected, we can have a durable coating nish with an appealing anodized metallic visual appearance using only a sin-gle layer of powder coating. The layer is formulated to provide good protection and an aesthetic bene t that helps to reduce material use and coating costs for our customers, Reddy added.

Axalta powder coatings are offered to be used in many industrial applications for aesthetics and protection purposes, including architectural, pipeline and automotive, said Dr. Fred Allen, Axaltas Global Technology Director of Powder Coatings. We are committed to working closely with our customers to understand their needs and to continue to develop products and coating processes to help meet those needs, whether a customer needs a coating with exceptional corrosion or impact resistance, or a coating with visual pizzazz.

Additional Axalta powder coating experts were also sched-uled to present at FABTECH 2014. Presentation titles included: Building Blocks of a Powder Coating System, presented by Bill Owens; Troubleshooting Your Powder Coating Operation, pre-sented by Mike Wittenhagen; Basic Concepts of Powder Coating (Spanish) and Advanced Concepts of Powder Coating (Spanish), both presented by Mentor Leal; and Trends in Architectural Powder Coatings, presented by Michael Withers.

PPG Celebrates 45th Anniversary of Alabama Aircraft Products PlantThe 45th anniversary of PPG Industries Huntsville, AL, facil-ity was celebrated with an open house for employees and their families to tour the operations where aircraft windshields, win-dows and canopies are made. For nearly half a century, PPG and its employees have maintained leadership in the global aviation industry as well as in the Huntsville community.

It is a much different operation today, with greater ef ciency and the ability to make larger and more complex parts, accord-ing to plant manager Tom Meyer.

The biggest change since the plant opened is the ongoing transformation to a lean culture, which I would de ne as the

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Fres

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int

continuing mission to remove waste from the workplace, Meyer said. Our transforma-tion engages all employees to

constantly look for opportunities to im-prove our process.

Meyer cited several bright spots vis-ible in the factory. The most promi-nent is a work cell where we process parts for a commercial aircraft manu-facturer. Through the efforts of the people in the work cell, we have been able to reduce lead times for select high-volume programs.

A new window may require thousands of hours in design, development and qual-ification by PPG employees in Huntsville before it is certified for flight. On aver-age, aircraft windows PPG makes today are significantly larger and more complex than those made decades ago.

PPG has been able to maintain a leadership position in a highly com-petitive industry by continually secur-ing new customers and new programs, Meyer said.

He credited employees for their con-tributions to successes with lean and new program development. It is a testament to the talent and dedication of the people who have worked here through nearly half a century that PPG continues to grow and meet the needs of the aerospace transparency industry.

In addition to housing production op-erations, the PPG facility has employees involved in design, development, testing and certification of new windows as well as ongoing support of windows for air-craft operators.

Community involvement is important to PPG, the company says, and its sup-port includes U.S. Space & Rocket Center Aviation Challenge program scholar-ships, University of Alabama-Huntsville Girls Day on Campus scholarships and donations to local public schools through Public Education Leadership Community grants of the PPG Industries Foundation that totaled more than $65,000 in 2013. PPG also provides community support through employee volunteerism grants that exceeded $30,000 in 2013, and it annually sponsors a community scholar-ship for a local high school graduate. The

company and its employees rank among the largest financial supporters of the United Way of Madison County. PPGs memberships include the Huntsville/Madison County Chamber of Commerce, Business Council of Alabama and North Alabama International Trade Association.

PPG started construction of the Huntsville aircraft products plant in May 1968 on a 64-acre site and began production April 9, 1969, with about 100 employees. The first shipment was made May 27, 1969, of windshields for the Convair 340 commercial airliner, for which PPG still maintains tooling even though it has been years since it produced any of the windshields. Today, more than 1,000 different designs are made in any month from windshields for commercial airliners to helicopter windshields.

Axalta to Work with Sabanci University Axalta Coating Systems in Turkey has announced a new cooperation initiative with the Sabanci Universitys School of Management which will be an integral part of the three Masters programs the university offers. Through a variety of projects, students will be able to gain hands-on work experience with Axalta in Turkey during their MBA, Executive MBA or Master of Finance (MoF) cours-es. Sabanci University, an independent university, is located near Axaltas Turkish manufacturing center in Sekerpinar.

Axalta is a firm believer in the power of innovation and were passion-ate about nurturing young talent. We see collaboration between industry and academia as being absolutely vital, as it can ensure a continued source of inno-vation in the knowledge-based economy of the twenty-first century, said Heinz Stolz, Director of Axaltas refinish busi-nesses across Turkey, the Middle East and Africa. It is with this goal in mind that we are eager to mentor the leaders of tomorrow in order to build the exper-tise and graduate skills that will meet employer objectives.

The joint program will be coordinated with Sabancis School of Management and allows participating students to take on actual projects at Axalta that are

relevant to their studies and to the com-pany. With Axaltas growing footprint in Turkey, the company can offer students projects in manufacturing, management, sales or customer service, ensuring that students meet their course requirements, find the best match for their area of study and contribute to Axaltas operations at the same time.

The Axalta education program with Sabanci University forms part of a grow-ing range of global education programs that Axalta has set up together with aca-demic institutions around the world.

AkzoNobel and Plan Nederland Mark 20 Years of Supporting EducationAkzoNobel and the Plan organization in the Netherlands are celebrating the 20th anniversary of a partnership which has supported the education of thousands of young people around the world.

Initially set up to improve the qual-ity of education for children in develop-ing countries, the companys Education Fund has since evolved to also support the employability of young people and set them on a proper career path. Over the years, tens of thousands of young people have benefited from dozens of projects in countries such as Bolivia, China, Ecuador, India, the Philippines and Vietnam.

AkzoNobels Visualizer App Wins Technology PrizeThe Visualizer app launched by AkzoNobels Decorative Paints business e has won a prestigious honor at the 2014 UK IT Industry Awards.

A first in augmented reality technolo-gy, the free app enables users to see in real time what a room will look like in a wide range of different colors. The innovation beat seven other finalists in the Innovative Mobile App of the Year category. The core innovation behind the Visualizer is the Computer Vision technology which enables the user to apply realistic virtual paint to their walls, in real-time, without affecting picture frames and other furni-ture. Compatible with both Android and iOS devices, it is currently available in 44 countries and will continue to be rolled out over the coming months. CW



International Coatings Scene Latin America

Sika has added

another Latin

America

acquisition to

its regional

expansion

campaign. This

latest addition will

improve logisitics

for increasing

demand in the

construction

markets.

Sika Expands Latin America Footprint

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

Sika AG, of Baar, Switzerland, has added an-other Latin American aquisition to its re-gional expansion campaign, in Aparecida de Goinia, Gois State, Brazil.

The latest addition will improve logistics for increasing demand in the construction markets, mostly concrete admixtures, waterproofing systems and grouts, the company noted. The new plant in Aparecida de Goina, in addition to the acquisition of Lwart Qumica earlier this year, is a further step in our strategic expansion in Brazil initiated in 2012. Sika now operates seven factories in the country, said Sika CEO Jan Jenisch, at the November announcement of the purchase.

In April 2014, Sika bought Lwart Qumica Ltda., based in Lenis Paulista, Sao Paulo State, which reported annual sales of $33 million. The company specializes in water-proofing, and has two noted brands, Lwart Impermeabilizantes, a technical waterproofing, and Ciplak Impermeabilizantes, a retail prod-uct. At the time, Jenisch was quoted saying, We have plans for new production lines and factories in Brazil, Argentina, Chile, Uruguay, Colombia and Mexico...worth $1.5 billion.

In August 2013 Sika also purchased

AkzoNobels building adhesives segment for $318 million, including the latters premium segment brands Schnox, Cgcol, Casco, Synteko and EriKeeper.

The acquisition wave has produced bottom line results. Sikas 2013 annual report indi-cates that Latin America posted the strongest growth of all regions in 2013. Year-on-year, sales were 15.1 percent higher, with every coun-try and target market recording increases.

In 2012, Sika entered the Paraguay market with the acquisition of Inatec SRL, based in the capital of Asuncin and reporting annual sales of $7 million. Inatec, founded in 1982, is a lo-cal leader in refurbishment, waterproofing and concrete admixtures market.

In 2011, Sika purchased Colauto Adesivos e Massas (Colauto), based in So Paulo, which manufactures adhesives and sealants, along with acoustic damping and structural reinforce-ment elements for the automotive and transpor-tation industry. Colauto reported sales of $50 million in 2010. Among other Brazilian opera-tions are plants in: Jaboato dos Guararapes, in Pernambuco State; Cachoeirinha, in Rio Grande State; and Osasco, Sao Paulo State.

In the Latin America region as a whole, Sika lists 43 countries in which it maintains a pres-ence. Sikas global distribution centers also in-clude one in Panama.

Among major construction projects in Latin America utilizing Sikas waterproofing prod-ucts is Mexico Citys $20 billion Tunel Emissor Oriente, a 40-mile long drainage line beneath the city that was expected to be completed by the end of 2014, helping to control flooding in the area.

In early December 2014, Saint-Gobain, based in Courbevoie, France, announced that it planned to acquire the majority shares of Sika held by the Burkard family for $2.8 billion. The purchase would give Saint-Gobain control of 52.4 percent of all voting rights and 16.1 per-cent of Sikas share capital.

Sikas product lines encompass below-ground and mortar waterproofing, flexible membrane systems, liquid applied membranes, joint sealants, waterproof ready-to-use mortars, injection grouts and coatings. CW

19 Latin America 0115.indd 19 1/5/15 11:46 AM


International Coatings Scene Europe

by Sean Milmo European Correspondent [email protected]

For coatings producers one of the big ben-efits of the sharp fall in oil prices in the second half of last year (2014) should be a drop in raw material costs.

Some commentators are also predicting a rise in demand due to the effect of lower oil prices cutting the production and distribu-tion costs of a wide range of industrial and

consumer products.However, neither is likely to happen on a

significant scale in the short-term in Europe. While oil prices have been plummeting suppli-ers of some coating raw materials have in fact been announcing price increases.

At the same time, rather than boosting de-mand, the oil price drop has had the opposite effect in Russia, which has been one of Europe fastest growing coatings markets. Instead the country which relies heavily on revenues from oil and gas exports is expected to be stuck in a recession this year (2015).

Nonetheless if oil prices stay at the current

How Do Low Oil Prices Affect Raw Material Suppliers?

One of the

benefits of the

sharp fall in oil

prices in the

second half of

2014 should be

a drop in raw

material costs.

20-21 Europe 0115.indd 20 1/5/15 11:47 AM


International Coatings Scene Europe

low level or fall further, analysts are fore-casting that in the longer term they could start bringing down raw materials costs in many sectors.

Continued low prices will create a glut in oil and its derivatives following a flow of investment funds into the sec-tor in recent years and an expectation of continued high growth in China, explained Paul Hodges, chairman of International e-Chem, a London-based chemicals consultancy.

Raw materials suppliers will have to cut their prices because otherwise they will not have any customers, he added.

This will first require the removal of a number of obstacles in the supply chain which have curbed the availability of some coatings raw materials.

Since the 2008 financial crisis in Europe, producers of raw materials like basic chemicals have tended to keep low stocks, said Amit Sharda, chemicals analyst at Oxford Economics, Oxford, England. This has resulted in a lack of sufficient flexibility in the system for downstream users to stock up their own raw materials in order to take advantage of upstream price decreases.

The result has been that even at times of economic crisis or supply/demand im-balances prices have gone up, sometimes steeply.

As coatings manufacturers, we would of course, expect to see a knock on ef-fect from the falling price of oil onto raw materials in the wider market, said Tom Bowtell, chief executive of the British Coatings Federation (BCF)

(But) raw material prices for the coatings and inks sector have been rising almost continuously since 2002 and in-creased by well into double figures in the two peak years of 2008 and 2011 while other years also showed steady increas-es, he continued. Many solvents were typically 30 percent to 40 percent higher in price (in 2012 compared with 2012).It is only in the last 18 months that we have seen any real softening of purchase prices and even this means only a 3% fall in overall raw material prices in the last year - a drop in the ocean compared with what has gone before.

Raw material suppliers which are

currently attempting to push up their own sales prices are blaming other fac-tors outside the oil value chain.

Clariant, the Swiss-based coatings materials supplier, for example, said that increases in operating costs was the main reason behind the announce-ment in late 2014 of a 10 percent rise in prices of additives for coatings and other products made by its Plastics and Coatings segment.

Most of our raw materials in Plastics & Coatings are at least 3 4 steps down-ward in the value chain (from oil), said Ernesto Dongiovanni, Clariants head of marketing, polymer additives. Therefore the impact of a lower oil price is substan-tially less pronounced as other factors--inflation in labor costs etc.-- outweigh this effect.

Prices in the coating raw materials supply chain have also been deeply in-fluenced in recent years by cutbacks in capacity following the 2008 recession and a lack of investment in new plants or expansions.

This is reflected in variations in price trends between segments. Figures from the European Chemical Industry Council (Cefic), Brussels, which include down-stream sectors like coatings, show that in the first three quarters of last year (2014) chemical producer prices dropped 1.7 per-cent, but petrochemical prices declined by over double that level while those for

polymers dipped by only 0.3 percent.Europes ageing chemical plants are

vulnerable to supply interruptions which has prevented some prices decreasing by as much as would be normally expected after a drop in oil prices. There have been a relatively high number of break-downs, and outages in basic chemical plants over the last few months, says one chemicals analyst.

Some commentators are predicting that due to the lower margins stemming from lower oil prices, there will now be more plant closures. The rating agency Moodys reckons that as much as 6 per-cent of European capacity for ethylene, the building block for organic chemicals, could be closed down.

Cefic was predicting in December that total output of chemicals including downstream products like coatings will rise only 1 percent in 2015around the same level as in the previous year (2014). Monthly data point to continued anae-mic growth, with energy-intensive pet-rochemicals output falling, said Hubert Mandery, Cefics director general.

Nonetheless there has been some evidence of a sudden rise in business confidence. In October the EU chemi-cal industry confidence indicator (CCI) soared to its highest level since July 2011.

Stronger European demand for coat-ings later this year will be offset by de-pressed sales in countries like Russia. Tikkurila, the Finnish coatings producers which has a big presence in Russia, has is-sued a profits warning because of reduced demand in the country and a sharp depre-ciation of the Russian rouble.

There could also be decreased coatings exports to oil producing areas outside Europe like the Middle East, where the construction sector has been booming.

The tight supply/demand balance in chemicals in Europe is likely to trigger a rise in some raw material prices in the event of any surge in coatings sales in the region. This could happen before low oil prices start to have a major influence on raw material costs.

Even if there would be an impact on raw materials prices from lower oil pric-es, its effects could be delayed by several quarters, said Dongiovanni. CW

If oil prices stay at the current level or fall further, analysts forecast that in the long term they could start bringing down raw material costs in many sectors.

20-21 Europe 0115.indd 21 1/5/15 11:47 AM


International Coatings Scene Africa

Africa LNG Spurs Coatings Growth

by Shem Oirere Africa Correspondent

The discovery and ongoing monetization of new natural gas reserves in Africa has created demand for liquefied natu-ral gas (LNG) infrastructure, which require specialized protection coatings to cushion them against corrosion, unfavorable temperatures and changing environmental conditions.

Mozambique and Tanzania have become the latest entrants in an LNG production league hith-erto dominated by Nigeria, Angola, Ghana and Algeria where contracts worth billions of dollars have been awarded or are in the pipeline for new liquefaction plants, gas pipelines, LNG terminals and floating liquefied natural gas vessels. These projects are some of the drivers of growth of Africas coatings market in coming months.

Some international coatings companies have already secured contracts for the supply of vari-ous coating solutions to protect the anticipated or existing LNG infrastructure.

Tanzania and Mozambique, with a combined natural gas reserve of more than 140 trillion cubic feet (tcf), are in the race competing for a share of the global LNG export market against the U.S., which targets to export an estimated 70tcf to Asia by 2020 and also Russia currently in the pro-cess of shifting from piped gas to LNG. The East African countries are hoping to join the LNG ex-port market when liquefaction plants under con-struction are completed between 2019 and 2021.

International oil and gas companies among them UKs BG Group, Ophir Energy, ExxonMobil, Statoil, Anadarko and Eni have found huge natu-ral gas reserves in East Africa and have proposed huge projects to commercialize the gas findings. The infrastructure is expected to consume a sub-stantial amount of protective coating around the huge amount of steel to be used in the develop-ment of the facilities and also on the LNG vessels so as to delay and limit the effects of fire attacks and corrosion from both the sea water and soil in case of gas pipeline.

New natural gas discoveries in East Africa have spurred liquefaction plant proposals

though considerable risks abound in this untest-ed region, said the report by IGU. Prolific re-source discoveries in Mozambique and Tanzania have led to the proposal of seven trains totalling 35 million metric tons/annum (MTPA) though potential exists for major expansions.

After the discovery of 100tcf of natural gas in Mozambiques Rovuma Basin, U.S. firm Anadarko and Italys Eni have announced prog-ress in the construction of four LNG trains with a capacity of 20 million metric tons per a year, making it the largest LNG export plant after Qatars Ras Laffan according to IGU.

Anadarko and Eni have awarded front end en-gineering and design contract to a consortium of CB&I and Chiyoda Corporation for the liquefac-tion plant. The LNG plant will get supplies of natu-ral gas from Anadarkos offshore Area 1 gas fields including Prosperidade and Golfinho. Additional natural gas will come from Enis offshore Area 4 gas fields including Mamba gas fields.

The liquefaction plant will come with infra-structure requiring special coatings to protect them from high temperatures, corrosion, fire and aggressive chemical compounds. Some of the LNG plant facilities that would require substantial coatings supplies include storage tanks, open gas turbines at power generation, BoG handling, open rack vaporizer, jetty MEG (Mono Ethylene Glycol)/ water mixture regen-eration and storage, slug catcher, gas pre-treat-ment facility, refrigerant and storage facilities, flare tower, liquefaction and fractionation in-stallations and condensate stabilizers.

To protect these LNG facilities would re-quire deployment of various coating process-es depending on the facility and its use. Such processes could include cathodic protection, thermally sprayed aluminium and watertight insulation and cladding.

LNG tanks require exterior coatings to protect them from the coastal environment and also inter-nal tank coatings to protect the ships to be used in transporting the LNG to the international market. Concrete coatings and insulation and also concrete refurbishment provide additional opportunities for coating companies in the protective market.

A similar LNG plant was completed in 2012 in neighboring Angola under a contract by U.S.

The discovery

of new natural

gas reserves

in Africa has

created demand

for liquified

natural gas (LNG)

infrasctrucuture,

which require

specialized

protection

coatings to

cushion them

against corrosion,

unfavorable

temperatures

and changing

environmental

conditions.

22-23 Africa 0115.indd 22 1/5/15 11:48 AM


International Coatings Scene Africa

firm Bechtel. The plant, Angola LNG, lo-cated in Soyo and which was developed by a consortium of Sonangol, Chevron, BP, Total, and ENI, provided yet another opportunity for coatings contractors.

For example, German firm EUROPIPE worked on a contract awarded French en-ergy major Total for the laying of pipes for a pipeline project starting from Block 17, op-erated by the oil explorer and producer with a 40 percent interest, as part of a network supplying gas to the Angolan LNG plant.

EUROPIPE, which says it specializes in large-diameter welded steel pipes for extreme applications, has supplied near-ly 20,000 tons of pipe for the $9 billion LNG project, from its manufacturing line at Mlheim mill. Mulheim Pipecoatings provided the inside and protective out-side coatings for the pipes linking natural gas fields to the Angolan LNG plant.

And in Mozambique, Italian natural gas producer Enis affiliate, Eni East Africa SpA, announced in October it has award-ed the KD Consortium, consisting of KBR and Daewoo Shipbuilding & Marine Engineering Company, Ltd, a front end engineering design (FEED) contract for the countrys first floating liquefied natu-ral gas (FLNG) facility for the Coral South Development Project in the country.

The company said with the award, the KD consortium will be one of three consortia competing for the engineering, procurement, construction, installation and commissioning (EPCIC) contract to build the new floating LNG facility for Eni East Africa and its partners to de-velop the hydrocarbon discovery in the Rovuma Basin in Mozambique.

Developing a cost-effective solution for the first FLNG vessel in Mozambique was the rationale for developing the KD consortium, said Stuart Bradie, KBR presi-dent and CEO. The consortium allows us to leverage the strength of both companies to provide the client the best choice for the EPCIC portion of the project.

The KD Consortium will provide the FEED for the Topsides, Hull and Subsea for the Floating LNG facility. The Topsides and Turret are being designed in KBRs Leatherhead office while the hull and marine system are being engineered in DSMEs facility in Seoul, South Korea,

KBR said in a statement.The FLNG facility will be a turret

moored double-hull floating vessel, on which gas receiving, processing, liquefaction, and offloading facilities will be mounted to-gether with LNG and condensate storage.

Although it has not been confirmed which company will be contracted to pro-vide protective coatings for the new FLNG, the development of the vessel adds to a new a growing segment in Africas gas sub sector.

A few international coating compa-nies have benefitted from Africas grow-ing natural gas sub sector and have been involved in major coating contracts.

For example, UKs Promat was contract-ed by heavy equipment manufacturer IHI Group, which won a contract to develop a new LNG train by Algerias Sonatrach, to supply its Cafco FENDOLITE MII system as a primary part of the scheme to protect the LNG facility near Arzew city.

The capacity of the Arzew GL2-Z, which has a design capacity of 370.8 bil-lion cubic feet/year, is being expanded to meet the increasing world demand for natural gas supplies.

According to Promat, Cafco FENDOLITE MII is the industry-leading, passive fire protection system and has been used to protect steel structures and vessel skirts from fire attack at Arzew.

The more than 1,500 tons of Cafco FENDOLITE MII was used on the project and applied by the Franco-Algerian fire protection specialists Travomed Prezioso JV according to a statement by Promat.

Promat was selected to supply Cafco FENDOLITE MII for this project because they provide unequalled service, quality, fitness for purpose, whole life value and availability that has been demonstrated in service worldwide over 30 years, the company said in a statement.

In Nigeria, leading manufacturer, de-veloper and distributor of paints and coat-ings, Berger Paints Nigeria Plc, has been awarded a contract to supply coatings for two new Nigeria Liquefied Natural Gas (NLNG) carriers to be built by Hyundai Heavy Industries in Korea. The Berger Paints contract is for the supply of 83,000 litres of paint valued at $1 million.

Berger Paints products are in compli-ance with global standards and are at par

with those produced by KCC in Korea, which will be used by Hyundai Heavy Industries in the coating of two new NLNG vessels, said Henry Agbodjan, head of shipping at NLNG in early December. KCC Corporation is a partner of Berger Paints Nigeria Plc.

More Nigerian paints firms have also got a share of the slice of the project to supply six LNG vessels to NLNG.

Bonny Gas Transport (BGT) Limited, a subsidiary of NLNG awarded a con-tract for the building of the new vessels to South Korean shipbuilders, Samsung Heavy Industries, and Hyundai Heavy Industries. The contract provided a local content clause for Nigerian companies to participate in exporting materials includ-ing protective coatings for the project.

NLNG had earlier confirmed that Paints and Coatings Manufacturers Nigeria (PCMN) Limited had also been picked to supply up to 388,000 liters of paint to Samsung Heavy Industries ship-yard in South Korea.

Other material suppliers for the LNG vessels include Metec West Africa, which has exported 210 tonnes of anodes, valued at $2.5 million and Nexans Kabelmetal Limited, which shipped 180,000 meters of cables valued at more than $1 million to the South Korean shipyards.

By the end of this project, NLNG would have helped the concerned local companies acquire the necessary capacity and know how to successfully compete with peers from all around the developed world, said NLNG.

In the past, Berger Paints only export-ed paints to Ghana. This recent export of our products to South Korea is a major milestone for our company, and we are very excited for this remarkable opportu-nity, said Berger Paints managing direc-tor and chief executive officer, Tor Nygard.

The International Gas Union says LNG floating systems are proposed to be used in many more countries, includ-ing several in Sub-Saharan Africa.

Although many challenges face the development of LNG infrastructure, the speed and relatively lower cost of bring-ing a floating import terminal online may improve the outlook for these regions, said IGU in its 2014 LNG report. CW

22-23 Africa 0115.indd 23 1/5/15 11:48 AM


Business Corner Strategies & Analysis

The first element

to recognize

in seeking

your desired

happiness/

satisfaction ratio

is to stop using

the success of

others as your

guideposts.

by Phil Phillips, PhD Contributing Editor [email protected]

You may have moved product into the marketplace well above plan; you may have scored heavily by identifying un-met needs and bringing new innovative prod-ucts to commercialization at record rates; and you may have even been awarded exceptional performance bonuses BUT . . . . . . you are dis-couraged with not only your job and career advancement, but your happiness and satisfac-tion. If this is YOU, we see several straight for-ward considerations for you.

The first element to recognize in seeking your desired job happiness/satisfaction ra-tio is to stop using the successes of others as YOUR guideposts. Much like fingerprints, they have their own set of individual suc-cess needs. Like fingerprints, each of us has our own set of built-in success quotients and our individual objective is to uncover those uniquenesss.

As you might expect one to say but I will say it anyway . . . managing your career is your responsibility and no one else. With this totally in mind, the following steps, taken very objec-tively, will help:

Know thyself: Record the three to four greatest . . . . strengths, adequacies and weak-nesses YOU honestly feel are accurate descrip-tions of YOU. Then identify a couple of people you feel know you well and will be harshly critical and share your self-appraisal with them. Be receptive to this input.

Then write down what you truly enjoy doing. Fit that honest enjoy doing picture into another picture . . . . that is, what does my dream job look like? Once you have se-lected your model job, you will have to be-gin from scratch. We are not saying this is easy, because its not easy but once youve made the ideal picture of your success pattern you will have emotional strengths built-in, that will assist you in making lob cross-over decisions.

Stand-out at important activities: First, identify the 4-5 critical activities vital for suc-cess in your preferred or current position. Then develop a plan for excelling in these activities.

Display Temperament and Control: Temperament (character) and Control differ-entiates between good and great performance.

There are several methods to be used to ex-hibit control:

Placing interests where they belong: Place your interests subordinate to both your company and your colleagues . . . . exhibit by doing things for others dem-onstrating your willingness to sacrifice for the company.

Assume an owners frame of mind: Always asking yourself, if I were the ultimate de-cision-maker, how would I act and what would my expectations be?

Willing to make tough recommendations: Always make recommendations that will benefit the companys overall performance. Sometimes, these recommendations may be to your disadvantage but you must take the long view in these cases.

LEADERSHIP: Speak up despite taking an unpopular view. Your Management very much wants unorthodox opinions so they can make better choices. If you constantly play it safe instead of asserting your sincere opinions, you may hit a plateau in your career. CW

Dr. Phil Phillips is owner and managing director of Chemmark Consulting Group, a global management consulting firm with 41 highly dedicated people specializing in coat-ings, paints, adhesives, sealants and specialty chemicals industries. Phillips specializes in strategic planning and implementation; M&A methodologies; value chain development and management best practices. Through Chemark, Phillips has assisted chemical companies along the value chain to successful strategic accom-plishments over his 20 years as a consultant.

For additional information contact Chemark Consulting Group at www.chemarkconsulting.net.

Managing Your Potential, As A So-Called Middle Manager

24 Biz Corner 0115.indd 24 1/5/15 11:49 AM

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SeahorseBlueBleedUSA-PCI.indd 1 1/7/13 11:35 AMUntitled-2 1 1/7/13 4:35 PM


New

Pro

duct

s

Sico Paint has launched a new product in response to the growing trend of vibrant home decor.

The Sico MUSE paint-and-primer-in-one product features a TOUCH RESIST TECHNOLOGY paint innovation that gives color surfaces richness and depth while providing maximum resistance to scratches, marks and stains.

If youre going to paint with color, this is the product to use, said Mylne Gvry, marketing manager for Sico paint, a brand of PPG Architectural Coatings. She explained that Muse paint is Sico paints highest quality, best performing and most sophisticated product to date. Because the product is ultra-smooth and deep in hue, it will add a wow factor and an unbelievably luxurious, fashionable and artistic feel to any room.

With the tagline Inspired by the grandeur of your ideas, the product was introduced to meet increasing consumer demand for high-quality, long-lasting color-infused paint, Gvry explained. Bolder colors are more in vogue than ever in home decor even neutrals are more colorful than in the past, she said. This is a clear indication that people are becoming comfortable expressing themselves with color in their homes, and weve delivered a product that enables their creativity to come alive in the most beautiful way.

Gvry pointed to technology, such as animated computer screens and digital art-infused consumer goods lining store shelves, as the reason people are gravitat-ing toward color. As well, from photo-rich social networks to trendy pastimes like digital scrapbooking, consumers are getting used to letting their personalities shine through and its spilling over into home decor choices, she said.

With the launch of Sico Muse paint, Gvry explained that room makeovers are easier and the results far more strik-ing when you start with a rich-colored canvas in place of a blank one. She offered

this advice on decorating with color:Red: Known to energize and increase

appetite, red is a good choice for kitch-ens and dining areas particularly warm, brown-toned red, which breathes new life into tired wood or white cupboards. In smaller spaces red works best painted on one or two walls for effect, while in large areas the color can be featured through-out the room. Coupled with a glitzy glass backsplash, it gives kitchens a modern look, yet appears more traditional paired with faux stone. In a dining room, a red wall paired with creamy yellow-white wainscoting creates an ideal backdrop for a trendy harvest table.

Yellow: With the growing popularity of all things bohemian, bold yellow is making a comeback. Bright, warm yel-low makes a strong starting point for a cheerful and welcoming space. For a dra-matic effect, dress up a room with yellow walls by introducing hot pink, teal blue, deep purple and lime green accents such as fringed throw cushions, floral drapery, soft shag area rugs or chintz china pieces. For furnishings, consider rustic antiques, padded headboards, tufted foot stools and painted wood the busier the pat-tern, the better.

Grey: At one time, grey was consid-ered dreary, but times have changed. This years it color, grey especially when used in different levels of intensity within a room creates a chic, sophisti-cated look. Ideal for a bedroom or living room, charcoal walls provide a dramatic feel that can be complemented easily with paler grey furnishings and accessories. Extremely versatile, grey goes just as well with metallic finishes as it does wood, stone and ceramics, and it is livened up with shades of yellow, blue and coral.

Blue: Deep, saturated turquoise blue is on trend this year and provides a dramat-ic yet calming background to any room, particularly living areas and bathrooms. Paired with grey and yellow accents, blue walls make a family room warm and

inviting. In the bathroom, blue goes well with brown, yellow and green to create a breezy, light and airy spa sensation. To bring out the best of this years popular blue, consider light grey carpet, hardwood or wood laminate for the rooms flooring.

Available in soft matte and soft gloss finishes, Sico Muse paint a 100 percent acrylic, low-odor interior latex paint is mildew-resistant, highly washable and durable with excellent hiding power and stain resistance, even on bold colors. Available in all colors of Sico paint, the new product can be found at more than 1,200 retailers across Canada.

Lowes to Jointly Introduce HGTV HOME by Sherwin-WilliamsLowes Companies, Inc. and The Sherwin-Williams Company have joint-ly announced that HGTV HOME by Sherwin-Williams brand paints will be available at Lowes stores and on Lowes.com beginning March 2015.

The HGTV HOME by Sherwin-Williams product line will feature a new and improved interior and exterior paint program available at both Sherwin-Williams company stores and Lowes stores nationwide, as well as exclusive line extensions available at Lowes. Each product line will uniquely highlight Sherwin-Williams legendary heritage of quality and exceptional application char-acteristics, the companies stated.

Additionally, the HGTV HOME by Sherwin-Williams color palette will of-fer 16 designer-inspired color collec-tions, eight of which will be exclusive to Lowes. Each collection will include 20 coordinating colors along with design tips for homeowners. These stylized col-lections provide a simple way to create a cohesive look in any one room, or from room to room throughout the home. The HGTV HOME by Sherwin-Williams brand brings together the design expertise HGTV is famous for and the legendary

Sico Paint Launches MUSE Paint-and-Primer-In One Product

26-28 New Products 0115.indd 26 1/5/15 11:53 AM

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

Untitled-2 1 3/25/14 12:54 PM


New

Pro

duct

s

quality of Sherwin-Williams paints, enabling homeowners to achieve the look of a profes-sional designer.

Lowes is a recognized leader in home improvement and a preferred proj-ect destination for homeowners and pros, alike, said Chris Connor, chairman and chief executive officer of The Sherwin-Williams Company. Offering the HGTV HOME by Sherwin-Williams brand at Lowes is a perfect complement to the high quality product assortment and shopping environment Lowes shoppers have come to expect.

In total, consumers will be able to select from 1,100 shades within the full HGTV HOME by Sherwin-Williams color offering, including the designer-in-spired collections plus other classic colors selected by the color experts at HGTV and Sherwin-Williams.

Sherwin-Williams is the most rec-ognized and trusted brand in paint for both homeowners and pros, said Mike Jones, Lowes chief customer officer. We are proud to bring the quality and long-standing reputation of Sherwin-Williams combined with the design expertise of HGTV to our customers. With the addition of HGTV HOME by Sherwin-Williams, Lowes offers con-sumers the top brand they trust for their next paint projects.

Additionally, Sherwin-Williams will provide Lowes with two independent brands of paint that will serve professional painters an

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