IPC Thailand

BASF Opens an Application Center in Germany to Strengthen its Global Industrial Coatings Business

OLDENBURG — BASF’s Coatings Division has invested one million euros in the construction of a new Application Center in Oldenburg, Germany. The company has now officially opened the center as part of a customer event. The center is therefore not only strengthening the Oldenburg site, but also BASF’s global business in industrial coatings. The new center, which includes a spraybooth for large objects, several work rooms and a training and presentation room, will be used for applications in the wind energy sector, as well as for marine and aircraft coatings and a whole array of applications in diverse industrial segments.

“We are increasingly gearing our business in coatings for wind energy to a global market. At the new Application Center, we are able to simulate the various painting conditions of our customers worldwide and optimize our products accordingly,” explained Dr. Achim Gast, Head of Post-Coatings at BASF. A wide range of climate conditions can be simulated. As a result of the application tests in Oldenburg, application technologies and processes are already being ideally adapted during development in order to allow smooth and efficient use at the customer’s premises. These in-depth tests carried out in advance save money and time for both the Coatings Division and its customers. “We also shorten the coordination process when there are product modifications,” stated Lübbo Röttgers, coordinator of the Application Center. “This allows us to continuously improve our product quality.”

An additional plus: BASF’s paint experts will train their customers at the new center. In the future, in Oldenburg, they will practice how to apply BASF products efficiently and in a high-quality manner. The Application Center offers ideal conditions for conducting special training courses, such as the course on using the RELEST® Wind RepKit , a refinishing system specially developed by BASF for repairing rotor blades.

BASF for Wind Energy

BASF supports the development of wind power as a climate-friendly source of energy in the energy mix. BASF’s portfolio for wind power applications comprises epoxy and coating systems, foams, special grouting mortars and concrete additives as well as lubricants and hydraulic systems. The innovative solutions from BASF facilitate more efficient manufacturing, coating and maintenance of rotor blades, foundations, towers and gearboxes of wind turbines. In this way BASF helps to make wind turbines more profitable and more durable. BASF continually develops and improves its wind power portfolio in close cooperation with its customers.

About BASF Coatings

The Coatings Division of the BASF Group develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as decorative paints. Coatings and paints from BASF protect surfaces and give them color and luster. Their aim is to meet the highest technical and qualitative demands in an aesthetic and environmentally friendly manner. They combine extraordinary design with functionality.

Source: BASF Coatings

Jotun Philippines Re-treats the Historic Ambuklao Hydroelectric Plant Dam with its Protective Coatings

Jotun has made important contributions to the rehabilitation works of the historic Ambuklao Hydroelectric Plant dam. The project was completed with the inauguration of the Ambuklao dam in late October 2011 and marks an important milestone in the Philippine hydropower industry.

“This is indeed a historic moment for Jotun Philippines and an important step as we strive to become the leading paints and coatings supplier in the country,” George Lim, General Manager Jotun Philippines says.

Historic rebuild of a national monument

During the 1950s, Ambuklao was Southeast Asia’s highest and largest dam. It is located in the mountains of Bokod in the Philippine province of Benguet, close to 300 kilometers north of Manila. As a result of persisting technical problems following the 1990 earthquake, the dam was closed for rehabilitation in 1999.

The project for renewal was finally launched in 2008. After three years of rehabilitation works, the dam’s power production capacity has been increased from 75 MW to 105 MW.

Coating characteristics match challenging surfaces

Jotun Philippines has supplied a variety of coating to the project. Jotun’s Jotamastic 87 GF coating was used for the challenging job of re-treating fifty year old submerged steel surfaces of the new internal penstocks of the dam.

Jotafloor SL Universal served to coat the floors of the power plant. The coating combines a wide range of application uses ranging from light industrial areas to floors requiring long lasting protection from abrasion and heavy loads. It is a high performance, self smoothing, solvent free, three-component, seamless epoxy coating, that is capable of being applied at varying thicknesses to suit the final use of the floor.

The freshly coated floors earned a great deal of applause from visiting officials during the opening ceremony of the power plant.
About Jotun

The Jotun Group is one of the world’s leading manufacturers of paints, coatings and powder coatings. The group has 70 companies and 38 production facilities on all continents. Including the total network of legal companies, agents, branch offices and distributors Jotun is represented in more than 80 countries. Jotun’s operations cover development, production, marketing and sales of various paint systems and products to protect and decorate surfaces in the residential, shipping and industrial markets. In 2010 the Jotun Group had a total sales income of NOK 13 452 million, and has today 7 800 employees. Headoffice is located in Sandefjord, Norway.

Source: Jotun

Industrial coatings market to grow by 2020

Solventborne coatings are still the most common technology, although they are losing share and are expected to lose share to other coatings types in many markets.
Construction and infrastructure markets accounted for over 37 % of the world market for industrial coatings in volume terms. Source: sxc/Simon Cataudo

Construction and infrastructure markets accounted for over 37 % of the world market for industrial coatings in volume terms.

Source: sxc/Simon Cataudo

According to a new study by PRA, entitled “Global Industrial Coatings Markets 2010–2020”, the global industrial coatings market was estimated to be worth over EUR 40 billion in 2009. The most important region of industrial coatings demand is the Asia Pacific, which accounted for around 48.5 % of global coatings consumption. The region is also expected to be the main driver of future coatings demand to 2020, with a CAGR of between 8 % and 9.5 % expected for the period 2010 to 2015. Within this region, China and India are expected to be the largest contributors to future coatings demand. Solventborne coatings are still the most common technology, although they are losing share and are expected to lose share to other coatings types in many markets. Waterborne is expected to be the fastest-growing coatings technology. Construction and infrastructure markets accounted for over 37 % of the world market for industrial coatings in volume terms. These two segments combined for approximately EUR 13.3 billion, representing around 32 % of global market value.

Momentive Expands in India to Focus on Growing Demand for Specialty Silicones in Asia

ALBANY, N.Y. — Momentive Performance Materials Inc., a leading global provider of silicones and advanced materials, announced the expansion of its manufacturing facility and application development center in Chennai, India. Spanning more than 15 acres, the state-of-the-art facility, which opened in 2009, focuses on manufacturing high-end specialty silicones to serve the growing needs of customers in India, the Middle East and South Asia.

“This investment represents a major step forward in our ability to grow the silicones business in India,” said Craig O. Morrison, Chief Executive Officer, Momentive. “India is one of the world’s fastest growing regions for automotive, construction, telecom and energy. Chennai, in particular, is developing into a significant center for multiple industries.”

“Over the years we have stayed on course in realizing our vision of building Momentive into a best-in-class specialty chemicals and materials company in the region by combining global technology, application development, manufacturing and service capabilities with outstanding products and services,” said V.P. Nalian, Managing Director, Momentive Performance Materials India. “This expansion will bring some of the most sophisticated technology and manufacturing processes that Momentive has developed worldwide to the Chennai facility and considerably enhance our ability to serve customers across the region.”

“We look forward to delivering innovation and finding new opportunities to expand our technology platforms into this region,” said Dr. Eric Thaler, Chief Technology Officer, Momentive Performance Materials. “This expansion will allow for the commercialization of a number of specialty silicone branded products, such as Magnasoft* and Silsoft* additives for personal care and textile applications, Silwet* products for agricultural use, Niax*additives for polyurethane foam, and SilFORT* hardcoats for automotive lighting and glazing.”

The expansion of the Chennai facility, along with the opening of a regional headquarters and global research and development center in Bangalore later this year, is part of Momentive’s long-standing commitment to India and the surrounding regions. Additionally, the Chennai facility has been designated to become a zero-discharge plant, underscoring Momentive’s commitment to sustainability. Local Momentive employees will participate in training programs on running the plant efficiently and in compliance with the highest safety standards.
About Momentive Performance Materials Inc.

Momentive Performance Materials Inc. is a global leader in silicones and advanced materials, with a 70+ year heritage of being first to market with performance applications for major industries that support and improve everyday life. The company delivers science-based solutions, by linking custom technology platforms to opportunities for customers. Momentive Performance Materials Inc. is an indirect wholly-owned subsidiary of Momentive Performance Materials Holdings LLC.
About Momentive

Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (collectively, “Momentive”). Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. Momentive was formed in October 2010 through the combination of entities that indirectly owned Momentive Performance Materials Inc. and Hexion Specialty Chemicals Inc. The capital structures and legal entity structures of both Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. (formerly known as Hexion Specialty Chemicals, Inc.), and their respective subsidiaries and direct parent companies, remain separate. Momentive Performance Materials Inc. and Momentive Specialty Chemicals Inc. file separate financial and other reports with the Securities and Exchange Commission. Momentive is controlled by investment funds affiliated with Apollo Global Management, LLC.

Source: Momentive

Dale MacDonald as a new member on the American Coatings Association board of directors

Dale MacDonald of Ashland will serve a three-year term through April 2015 on the American Coatings Association board of directors.

Dale MacDonald, group vice president, Coatings Specialties, Ashland Specialty Ingredients, has been nominated to the American Coatings Association’s (ACA) board of directors. MacDonald, will serve a three-year term through April 2015. MacDonald’s career with Ashland began in 1990 and has included a variety of assignments with increasing management responsibility. Prior to joining Ashland, MacDonald worked for Dow Chemical Canada gaining experience in sales and product management.
Dale MacDonald, group vice president, Coatings Specialties, Ashland Specialty Ingredients, has been nominated to the American Coatings Association’s (ACA) board of directors. Source: Ashland Specialty Ingredients

Dale MacDonald, group vice president, Coatings Specialties, Ashland Specialty Ingredients, has been nominated to the American Coatings Association’s (ACA) board of directors.

Source: Ashland Specialty Ingredients

LANXESS Invests in BioAmber to Strengthen its Commitment to Renewable Raw Materials

LEVERKUSEN — LANXESS is strengthening its commitment to renewable raw materials by investing USD 10 million in U.S. company BioAmber, Inc., based in Minneapolis, Minnesota, U.S., as part of a private placement.

BioAmber is a global leader in succinic acid produced from renewable resources such as corn. Together, the two companies have developed plasticizers, whose cost-effectiveness and safety profile make them sustainable alternatives to phthalate-containing formulations. Market entry is expected later this year. In addition, both companies are in talks to extend their partnership into further product areas in the future.

As part of the investment, LANXESS has received a minority shareholding in BioAmber and a seat on the Board of Directors, which will be filled by Jorge Nogueira, Head of LANXESS’ Functional Chemicals business unit that manufactures phthalate-free plasticizers. BioAmber was founded in October 2008 and has 40 full-time employees.

BioAmber produces succinic acid through the fermentation of renewable raw materials. The process developed by BioAmber consumes considerably less energy than the production of succinic acid using fossil fuels, is significantly more cost-effective and has a better carbon footprint. In the future, the company plans to use waste from the agriculture industry and sugarcane processing as starting materials.

“Our investment in BioAmber shows our commitment to launching a new generation of plasticizers that meet regulatory requirements and can also score in terms of sustainability,” said LANXESS’ Nogueira.

“We are pleased to have LANXESS as a strategic investor alongside Naxos, Sofinnova, Mitsui & Co. Ltd. and Cliffton,” said Jean-Francois Huc, BioAmber’s CEO. “BioAmber is fortunate to have a strong, committed group of investors and we welcome Jorge Nogueira, a dynamic and experienced chemical industry executive, to our board.”
Phthalate-free Plasticizers Gaining Importance

As a global leader in the field of phthalate-free plasticizers, LANXESS has large production capacities, expertise in production and a global distribution network. Its key products include Mesamoll, Adimoll, Ultramoll, Unimoll and Uniplex. Through the acquisition of the UNITEX Chemical Corporation based in Greensboro, North Carolina, LANXESS also now has access to an additional capacity of 50,000 metric tons per year, plus an extensive portfolio of phthalate-free plasticizers such as benzoates, citrates and sulfonamides.

BioAmber manufactures bio-based succinic acid in Pomacle, France, at a plant with 3,000 metric tons of capacity per year. BioAmber plans to add a further 17,000 metric tons of capacity from 2013 with a new world-scale manufacturing facility to be built in Sarnia, Ontario, Canada, at LANXESS’ site there. Both companies are preparing agreements for LANXESS to provide BioAmber with the land as well as the utilities and services needed to operate the facility.

The global market for phthalate-free plasticizers is currently estimated at EUR 1.3 billion – with annual growth rates of around seven percent. As a result of regulatory developments, demand for phthalate-free plasticizers is growing in markets such as North America, Western Europe and Japan. An increase in demand is also being observed in global growth markets such as Latin America. Authorities are increasingly restricting the use of phthalate-containing plasticizers for consumer goods such as toys, food packaging and cables.
Bio-sourcing Initiatives

LANXESS is strongly committed to using renewable raw materials to produce premium synthetic rubbers. At the end of 2011, LANXESS produced the world’s first bio-based EPDM rubber in Brazil. The Brazilian company Braskem supplies the raw material ethylene derived from sugarcane. The rubber is marketed under the name Keltan Eco.

In addition, LANXESS has invested in U.S. biofuel and biochemical manufacturer Gevo, Inc., which produces isobutanol from renewable resources such as corn. LANXESS plans to convert the isobutanol to isobutene, a key raw material for the manufacture of butyl rubber.
About LANXESS

LANXESS is a leading specialty chemicals company with sales of EUR 7.1 billion in 2010 and currently around 16,100 employees in 30 countries. The company is at present represented at 47 production sites worldwide. The core business of LANXESS is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals. LANXESS is a member of the leading sustainable indices Dow Jones Sustainability Index (DJSI) World and FTSE4Good.
About BioAmber

BioAmber is a next generation chemicals company. Its proprietary technology platform combines industrial biotechnology, an innovative purification process and chemical catalysis to convert renewable feedstocks into chemicals for use in a wide variety of everyday products including plastics, food additives and personal care products. BioAmber produces bio-succinic acid in what it believes to be one of the world’s largest bio-based chemical manufacturing facilities.

Source: LANXESS

Jotun Announces 9% Rise in Revenue in 2011 Owing to Better Market Conditions in Asia & Middle East

Jotun’s long-term growth trend continued in 2011 with improved sales in most segments and divisions, due to improved markets in Asia and parts of the Middle East.

The company reported operating revenues of NOK 10.7 billion in 2011, up from NOK 9.8 billion the previous year. Meanwhile operating profit was NOK 956 million in 2011, compared with NOK 1,240 million in 2010, due mainly to higher raw materials prices.
Key Operational Highlights

Jotun sold more paint in volume and value terms in 2011 than in 2010
Jotun’s margins and profits were affected by high costs of major raw materials such as epoxies, titanium dioxide, acrylics and metals
Jotun’s strategy of operating across a range of segments and geographies continues to yield results. Higher sales in parts of Asia and the Middle East offset slower sales in Europe
Operations in the Middle East were affected by the Arab Spring

Commenting on the results Morten Fon, Jotun’s President and CEO, said: “Jotun’s business model has proven to be remarkably resilient and the group has had a satisfactory performance in an otherwise challenging year. Indeed, we managed to grow our sales in a number of important markets, despite a number of unexpected events in the global economy. For our results, high raw materials prices remain a challenge for us and the industry as a whole.”
Long-term Perspective and Investments

Jotun made considerable investments in 2011, and major projects during the year included:

New production structure and construction of a new factory in Sandefjord
New factory in Malaysia
Ongoing construction of new factories and buildings in China and USA
Factory expansion in UK
Purchase of land in Russia and Indonesia
World-wide implementation of new business support information technology

Solid Financial Position

Jotun’s equity ratio was 55 per cent at the end of the year. The company had sufficient liquidity and low interest bearing debt. The company’s cash and cash equivalents stood at NOK 618 million at year-end, and the company had undrawn credit facilities totalling NOK 1.425 billion.
Outlook

“Jotun is in a good position to continue its long term growth trend, in spite of challenges in the global economy. The group has a solid business model with a differentiated regional and segment approach, and sound financial foundation which enables further investment in line with its proven organic growth strategy,” said Morten Fon, Jotun’s President & CEO.
Transition to IFRS

With effect from the 2011 accounts including comparable figures from 2010, Jotun has transitioned to International Financial Reporting Standards (IFRS) from Norwegian Accounting Standards (NGAAP).

The purpose of the transition is to make financial information from Jotun more understandable for a wider international group of readers.

The transition has some effects on the accounts, including less room to include Jotun’s share of revenues from companies which the group owns together with other partners. Jotun has several such partnerships in the Middle East and Asia.

Thus, operating revenues are lower than what has been previously reported. For the results, however, the transition to IFRS is nearly neutral.
About Jotun

The Jotun Group is one of the world’s leading manufacturers of paints, coatings and powder coatings. The group has 70 companies and 38 production facilities on all continents. Including the total network of legal companies, agents, branch offices and distributors Jotun is represented in more than 80 countries. Jotun’s operations cover development, production, marketing and sales of various paint systems and products to protect and decorate surfaces in the residential, shipping and industrial markets. In 2010 the Jotun Group had a total sales income of NOK 13 452 million, and has today 7 800 employees. Headoffice is located in Sandefjord, Norway.

AkzoNobel Declares its Q4 & Full-year Results for 2011; Reports Growth Across All Business Areas

Akzo Nobel N.V. (AkzoNobel) published Q4 and full-year results for 2011. The company reported revenue growth across all Business Areas, led by price/mix developments of 5 percent and a 2 percent volume increase.
Full Year & Q4 2011

CEO Hans Wijers: “2011 was a challenging year against the background of weaker global economic conditions and unprecedented raw material price inflation. The absolute impact of increased raw material prices for the year was approximately €1 billion. Despite this significant headwind, our reported pricing actions have now offset most of this, and for the year ahead we expect to see the full-year benefit of these increases. In addition, to further reduce our cost base and improve our competitiveness, we recently launched a performance improvement program, which is on track. Our strong fundamentals, geographical spread and commitment to deliver – in combination with the improvement program – give us confidence in the future.”
Performance Improvement Program

AkzoNobel’s performance improvement program, launched in October 2011, will strengthen competitiveness, enhance the company’s ability to grow, simplify support structures and significantly reduce the cost base. This implies a significant change in the operating model and business culture. The comprehensive three-year plan – designed to improve performance and deliver €500 million EBITDA in 2014 – is already expected to deliver €200 million EBITDA in 2012. This implies higher restructuring costs for the coming year. Restructuring activities continue in Decorative Paints in Europe and the US.

The program is on track and the first update on progress and financial impact is due in the company’s 2012 half-yearly report.
Business area highlights
Sustainability Highlights

AkzoNobel has made significant progress on its strategic sustainability agenda. Once again, a number two position was achieved in the SAM benchmark in 2011. Other key ratios also improved:
Sustainability highlights
Outlook for 2012 and Medium-term Ambitions

AkzoNobel aspires to be the world’s leading coatings and specialty chemicals company. The medium-term ambitions are to grow to €20 billion in revenue, increase EBITDA each year while maintaining a 13 to 15 percent margin, reduce OWC percent of revenue year-on-year by 0.5 percent towards a 12 percent level, and pay a stable to rising dividend.

The sustainability ambitions are to remain a top three leader in our industry, to be top quartile in our peer group in terms of safety performance, diversity, employee engagement and development, and eco-efficiency improvement rates.

During 2011 the business faced many challenges, most notably the rapid price increases that affected most of our raw materials and the continuing economic headwinds in many of our major markets.

For the year ahead, the company expects to see the full-year benefit of the price rises that have been achieved so far, and which have now offset most of the raw material price increases. Currently, AkzoNobel is experiencing greater price stability in most raw materials, with the exception of TiO2, which is to continue to rise in price, and for which plans are in place to pass through further price rises in the future. In addition, the company is implementing its performance improvement program, which should bring significant benefits in 2012 and beyond, underpinning margins. As a result, close to 800 employees have been made redundant.

The major uncertainty remains the economic environment. The concerns are focused on the risk of recession in Europe, delayed recovery of the US property market and the potential for a slowdown in China. Each of these can have a significant impact on customers in these regions that would in turn impact AkzoNobel’s sales volumes. These, together with certain raw materials, remain the key sensitivities in 2012.

AkzoNobel has a strong portfolio of complementary businesses, with many leading market positions and exposure to high growth markets. This, combined with ongoing management actions, means that the company is confident of delivering medium-term growth in line with its strategic ambitions.
About AkzoNobel

AkzoNobel is the largest global paints and coatings company and a major producer of specialty chemicals. They supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for their customers. Their portfolio includes well known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, they are a Global Fortune 500 company and are consistently ranked as one of the leaders on the Dow Jones Sustainability Indexes . With operations in more than 80 countries, their 55,000 people around the world are committed to excellence and delivering Tomorrow’s Answers Today™

Source: AkzoNobel

alspar Reports 5.1% Growth in Sales & 67% Growth in Net Income for Q1, 2012

MINNEAPOLIS, Minn — The Valspar Corporation reported its results for the first-quarter ended January 27, 2012. First-quarter sales totaled $885.6 million, a 5.1 percent increase from the first quarter of 2011. First-quarter adjusted net income per share increased to $0.62 in 2012, a 59 percent increase from $0.39 in 2011. First-quarter adjusted net income per share in 2012 excludes a $0.04 per share restructuring charge. First-quarter adjusted net income per share in 2011 excludes $0.05 per share in acquisition-related charges. Net income for the first quarter of 2012 was $55.8 million and reported earnings per share were $0.58. Net income for the first quarter of 2011 was $33.4 million and reported earnings per share were $0.34.

“We are pleased to report strong earnings for the quarter, which were the result of excellent execution and generally in line with our expectations. We continue to make progress in restoring our operating margins through pricing, productivity and cost management,” said Gary E. Hendrickson, President and Chief Executive Officer. “In the quarter, we strengthened our balance sheet by issuing a $400 million bond at attractive rates. Despite higher interest expense and challenging global markets, we are raising our full year earnings guidance to $2.92-$3.12.”
About Valspar

The Valspar Corporation is a global leader in the paint and coatings industry. Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality and the best customer service in the coatings industry.

12 German Companies Collaborate to Secure Industrial Raw Materials Supply for the German Industry

The Federation of German Industry, BDI, recently announced that twelve German companies: Aurubis, BASF, Bayer, BMW, Chemetall, Daimler, Evonik Industries, Georgsmarienhütte Holding, Bosch, steel holding Saar, Thyssen Krupp and Wacker Chemie have formed a collaboration to establish an alliance in order to secure the supply of industrial raw materials for German industry.

“We are working together to build a powerful organization, which aims to improve the security of Germany sustained commodity,” said BDI Vice President Ulrich Grillo on Monday in Berlin on the sidelines of the first meeting of the corporate supporters that accompany the start-up phase. The foundation phase is supported free of charge from the Boston Consulting Group, Egon Zehnder, Lovells and PricewaterhouseCoopers.

The Alliance aims to invest in resource projects in order to improve the long-term supply of industrial raw materials in German industry. It is open to other companies as well. Priorities of the alliance’s foundation phase are raw material clarifying, organizational and legal issues and the establishment of corporate structures BDI is not directly involved in the financing and operational work.

The Managing Director of the alliance is Dierk Paskert, Member of the Board of Management of E.ON Energie AG, Munich, Germany. The BDI is developed under the direction of Grillo, the concept for the Alliance. “The company’s focus will be on raw materials for which there are strong supply risks for German industry,” said Grillo, BDI Vice President.

“The alliance will address raw materials at an early stage of the project and will explore opportunities to create purchase and participation options for German companies,” underlined Grillo. In specific cases the raw material alliance will also be active with the extraction and processing of raw materials.
About BDI

The Federation of German Industries (BDI) is an association of associations. As stipulated in the BDI’s statutes, membership is confined to “industrial sector associations and working groups acting as umbrella organizations to represent entire industrial groups within the territory of the Federal Republic of Germany”. Currently, the BDI has 37 Member federations, of which 2 are working groups, and represents the interests of 100,000 businesses with 8 million employees.