This edition of the newsletter contains:

News features.
The Powder Coating Manual (Part 12)
Exhibitions and Conferences in and February and March 2003


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e-Commerce Highlights And Asian Adoption
(John Everett Product Marketing www.e-epoxy.com)
Given the immense geography of the coatings industry across the Asia Pacific region it is not surprising that tool to enhance communication and commerce are watched closely. Indeed, new web sites allow consumers to get anything and everything delivered right to their front door; groceries, medicine, and even — epoxies! Many people, however, still harbor under the common misapprehension that all Web sites are floundering economically and nearing extinction, when that is far from the whole truth. While many Web sites have failed, there are still those that are not only surviving, but thriving. ChemConnect.com is a well know example of a site that attracts a lot of attention from Asian sellers and buyers looking to trade chemicals. Extranets, such as Dow Chemical's MyAccount@Dow are providing a host of sophisticated functions on a 24 / 7 basis, regardless of time zone constraints.

What separates the successful dot-coms from all the dot bombs? The key to success in the virtual market place is not by erasing the traditional procurement methods, but rather by supplementing those existing procurement channels and adding alternative levels of service, something beyond the traditional venues. Chief Executives, Chief Information Officers and e-business leaders are learning from past failures, and realizing that a winning website may just be the edge their company needs to succeed in the flailing global economy of today. These new e-commerce initiatives, however, must compliment, and not compete, with a company’s existing business. e-epoxy.com, the first-ever Web site designed exclusively for the sale of epoxy resins and related products, is a Web site that is not trying to take business away from other procurement venues, but rather seeking to add an easier way to generate more business.

e-epoxy.com, is, unlike many new business initiatives, and in particular e-businesses begun in the past two years, a success. e-epoxy.com has, since its launch in late January 2001, surpassed sales goals and reached profitability within the first year after its launch. The straightforward business rules of e-epoxy.com establish the site as a channel for formulators of epoxy coatings to easily and quickly purchase epoxies and related products without developing a long-term relationship with the supplier. Customers looking for a set amount of product in a convenient, one-stop shop can use e-epoxy.com while customers seeking a wide range of services and purchasing options can benefit more from a traditional sales force. All business units succeed. A similar approach has been followed with the launch of Xiameter.com from the Dow Corning Corporation. Customers wishing to receive the full and world class service of Dow Corning are encouraged to continue to purchase via the associated representative. Those seeking the lowest price on standard silicone products and no service are directed to the Xiameter.com web business.

e-epoxy.com is designed for those that can work with straightforward business rules, such as ordering in full and half load quantities, a fixed payment term and penalties for order changes and cancellations. The site not only accepts orders for delivery in North America and Europe but also the Middle East, Japan, Korea, Taiwan and Southeast Asia. Prices are listed in U.S. dollars, Euro and Yen. John Everett, Global Site Leader for e-epoxy.com says "we are delighted with the response we have received from the Asia Pacific market to our e-commerce site. On a daily basis customer are placing orders with us, contacting us on order status and pricing opportunities as well as challenging us to expand and provide a broader range of complimentary products." Since the e-epoxy.com approach levers-off Dow Chemical's establish product and logistics position in Asia, customers are assured of getting the quality product they want in a reliable time frame. "We are often asked who buys from e-epoxy.com?" says Everett. "Basically our accounts span the classical users of epoxies resins, i.e. coatings, composites, electrical, adhesives, etc, but more principally from those accounts wishing to explore this new purchasing approach and efficiently obtain standard raw materials. So far, all of our customers in Asia have been new business for Dow's epoxy division." For more information, visit the site at www.e-epoxy.com , sign-on for the free monthly newsletter, register on-line for a free purchasing account and take the quick site tour whilst your there.

A better way to buy

Advertisement feature Masking and Hanging solution from EPSI EPSI specializes in the manufacturing and world wide distribution of high temperature masking and hanging products for powder coating, e-coating, plating and various other types of industrial coatings. With offerings of more than 3000 different types of elastomer (silicone, EPDM, viton) caps,plugs and pull plugs EPSI offers numerous stock solutions for masking projects.  In addition to the wide offerings of standard products, epsi has extensive capabilities in the area of custom molding and extruding to solve the most challenging projects. EPSI also carriers and manufactures a variety of disposable spring steel and cold rolled steel hooks for hanging products on your conveyorized coating line. These hooks increase line conductivity thus increasing powder transfer efficiency and result in superior product quality.   For furher details please contact N90 W14700 Commerce Drive Menomonee Falls, Wisconsin 53051 USA Tel  1 262-253- 3774 Fax 1 262-253 3775  Toll Free numbers (866) ASK EPSI                                   (866) FAX EPSI E-MAIL : sales@epsi.com website : www.epsi.com

Asian Paints to set up unit in Pondicherry
Business Standard, January 30, 2003
(http://www.business-standard.com/archives/2003/jan/50300103.015.asp)

Asian Paints India has informed the Bombay Stock Exchange that it has decided to set up a plant at Pondicherry, subject to necessary approvals and licences.

The proposed greenfield unit is to have a capacity of one lakh tonne per annum, and would be its largest.

The board has also approved the merger of Pentasia Investments, a wholly owned subsidiary, with itself. The proposed merger is subject to the approval of the shareholders of the company and requisite approvals.

Ashwin Dani, vice chairman & managing director, Asian Paints (India) said in a press release, “The proposed plant became imperative owing to the good growth rates witnessed by the company in the last couple of years. The last manufacturing facility set up by the company was in 1989 and the company has done an excellent job in last couple of years to further sweat the assets as well as increase productivity and capacity at existing plants.”

“Also all water based products especially emulsions have witnessed very good growth rates, which has further strained capacity at the existing facilities for these products,” he added.

The plant at Pondicherry will be scaled to its full capacity over a period of time and the investment in the mentioned project will also be made in a phased manner, the company said.

At present the company has four manufacturing units: at Bhandup in Mumbai, at Kasna and Patancheru both in UP and at Ankaleshwar in Gujarat. Asian Paints’ present combined capacity of the existing four plants in India is 230,900 tones per annum.

The company has recently picked up 50.1 per cent stake in the Singapore based Berger International for a consideration of Rs 57.6 crores. This was followed by its takeover of management control of the Egiptian Paint major SCIB Chemicals for around Rs 24.5 crores.

In November 2001, the paint major acquired the powder coating business of Howcoplast Chemicals for Rs 16 crores.

Net loss for PPG Industries
(European Coatings Flash - January 27, 2003)

For all of 2002, PPG Industries recorded a net loss of USD 69 million, including one-time aftertax charges. Excluding these items, net income was USD 476 million. Sales were USD 8.1 billion. Net income for 2001 was USD 387 million, including a USD 71 million aftertax restructuring charge. Excluding the charge, income was USD 458 million. Sales were USD 8.2 billion. "We expect the global economic environment to be challenging once again in 2003," said Raymond W. LeBoeuf, PPG chairman and chief executive officer. "Nevertheless, we remain committed to further improvements in our cost structure and cash flow. Last year we lowered manufacturing and overhead costs by about USD 140 million, reduced debt by more than USD 400 million and increased our dividend payments for the 31st consecutive year. We expect another year of strong cash flow in 2003, which will allow us to reduce debt and increase our financial flexibility."
For all of 2002, coatings-segment operating income was USD 605 million, up 22 % from 2001. Coatings-segment sales for the year rose 1.6%, to USD 4.482 billion.

Inauguration of Degussa (China) Holding in Beijing  
(European Coatings Flash - January 27, 2003)

The Degussa (China) Holding in Beijing was inaugurated on Monday, the 20th of January 2003. In future, all Degussa companies in China are to become subsidiaries of Degussa (China) Holding, whereby it is planned to transfer all the stakes currently held by Degussa AG or other Group companies in China-based companies to the holding within the near future. Moreover, the holding is to undertake all of Degussa's new Chinese-related investments. Degussa aims to significantly increase its involvement in China over the next few years. A few weeks ago, basic planning was started on a Degussa "multi-user production location", in which infrastructure is to be shared by several business units to achieve a better cost and utilities situation. In the view of Prof. Utz-Hellmuth Felcht, Management Board Chairman of Degussa AG, Dusseldorf, Germany, the Chinese specialty chemicals sector will take second place behind the European Union in global rankings by 2008. Also work began on constructing a Degussa R&D center in Shanghai this January. The investment volume for the R&D center, which is scheduled to take up operation at the end of 2003, amounts to some ? 10 million.


NZ company develops new powder-coating process for wood, achieves first export contract
New Zealand City Ltd,20 January 2003 ( http://home.nzcity.co.nz/news/default.asp?id=28082&cat=976 )

A New Zealand company has sealed its first export contract for its revolutionary method of colour-coating wood products.Climate Coating Ltd now has a million-dollar Australian export trial for the new product, a powder-coating process for wood products used in the building, commercial and residential furniture, cabinetry and joinery industries, and outdoor products.

The new finishing solution involves applying a fine dry powder onto engineered wood products such as medium density fibreboard and plywood.The product has the functionality and durability of a laminate, making it an ideal finish on wood.

Until now, the difficulty in coating non-conductive base materials has been a barrier to extending the process which is already in common usage with metals. . The Climate Coating company is a graduate of the Carter Holt Harvey Ideas to Business programme.

It has also been nurtured and supported through almost three years of research and development, assisted with a $100,000 investment from Technology New Zealand. The Australian export deal comes after a 10-month period of testing and marketing trials, tweaking and correcting the product.

The company is now also eyeing the Asian and US markets.

Jotun Paints acquires Omnifire
(European Coatings Flash - January 20, 2003)
Jotun Paints (Europe) Ltd has purchased Omnifire (UK) Ltd along with all its technology on thin film intumescent coatings for steel, manufacturing and worldwide distribution rights (with the exclusion of North America) in December 2002. Since 1999, Jotun Paints - then Jotun-Henry Clark Ltd - has been manufacturing "Steelmaster" products at its Flixborough factory. This followed a business alliance between the two companies which also resulted in Jotun's marketing of Omnifire's intumescent coatings, its complementary topcoats, and its fire-engineering expertise. Steelmaster products have used on projects like the airport of Hong Kong. The Jotun purchase of the Omnifire technology is effective as from 1st November 2002, after which time Omnifire ceases to exist.


SUPER GLUE LAUNCHES ANCHOR-TITE WATERPROOF EPOXY ADHESIVE
http://www.pra.org.uk/publications/newsofthemonth/nom-index.htm
Pacer Technology's Super Glue subsidiary has launched a line of epoxy adhesives aimed at the automotive, marine, plumbing, pool and spa, and sports markets. Anchor-Tite is a two-part industrial strength adhesive for use on metal, plastic and rubber with a new feature for consumer epoxy adhesives of having the ability of working in contact with water. (Chem Week, 13 Nov 2002, 164 (45), 31)

SILICON COATINGS LAUNCHES NIPPOFLEX WATERPROOFING PRODUCT
http://www.pra.org.uk/publications/newsofthemonth/nom-index.htm
Sri-Lanka-based Silicon Coatings, known for its Nippolac paint range, has developed a new waterproofing product under the Nippoflex tradename. The new cement-based product claims to provide long-term protection for roofs, be they made from concrete, tiles or metal. (Asia Pacific Coatings J, Oct 2002, 15 (5), 7)

EASTMAN LAUNCHES ADHESION PROMOTERS
http://www.pra.org.uk/publications/newsofthemonth/nom-index.htm
Eastman has launched two new adhesion promoters for the automotive paint-on- plastic market. Both the chlorinated and non chlorinated versions are designed to be the active component in adhesion promoter primers for colour coats and topcoats with polypropylene and thermoplastic olefin substrates. (Chem Week, 13 Nov 2002, 164 (45), 32)

POWDER ON MDF RESEARCH PROJECT: PARTNERS SOUGHT YKI,
the Swedish Institute for Surface Chemistry, is planning a two-year project with the aim of improving the application of powder coatings to MDF. A particular problem exists with edge coverage. The reasons for this are not fully understood, but Dr Larsson of YKI believes that the surface properties and conductivity of the MDF are implicated. The project is obviously relevant to both thermal and UV-cured powders. YKI is looking for companies to join the research consortium running and financing this project. (Contact: Dr A Larsson, YKI; Tel: + 46 8 790 97 231. YKI Projects in the Pipeline, Nov 2002).

Tikkurila Completes Purchase of Akzo Nobel's Nordic Coatings Business
([Insider News] January 6, 2003 Issue)

Tikkurila Coatings Oy has completed the acquisition of Akzo Nobel's Nordic general industrial liquid coatings business, a transaction that Tikkurila said will significantly expand its industrial-coatings market position in the Nordic countries and Baltic Sea region. The acquired business's sales were 17 million euros in 2001, in a market area that includes Finland, Sweden, Norway, Denmark, and Poland.

Tikkurila Coatings, based in Finland, is a major coatings manufacturer in northern and eastern Europe, with a product portfolio that includes architectural paints, industrial wood finishes, metal product finishes, protective coatings, and coil coatings.


Black hot colour trend in designer furniture
Splatter! Coatings' eNewsletter - January 8, 2003
Black is the latest colour trend for furniture and is showing up on designer furniture from Ralph Lauren and Martha Stewart, on products in retail stores such as Pottery Barn, and in furniture featured in lifestyle magazines such as Wallpaper, according to an October 4 report in the St. Louis Post-Dispatch newspaper.
Most of the painted furniture has a satin or dull finish and much of it is rubbed on the edges to give it an aged look. According to Stephanie Voss of Arhaus Furniture, black has gone beyond occasional and dining room chairs to tables, bedroom sets, desks and armoires


News In Brief

LISA WICHMANN has been appointed managing editor for Coatings Magazine. Formerly associate editor with Plant Newspaper, she has eight years of experience in journalism. She will be filling in for Coatings' editor MARY SCIANNA, who is on maternity leave for one year.(Splatter! Coatings' eNewsletter - January 8, 2003)

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