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PRICE RISE (IPC Exclusive)
Subscribers
will recall the opinion poll which we launched in the September issue.
It seems a large number of people believe that the recent price rises
in the powder paints will lead to reshuffling of the customer and
suppliers. This view is also seconded by Bijoy Mukherjee of
Berger Paints India Limited, Kolkata, India and Ma Kafeing(
Yinzhou
Gold-Lion Resin Powder Coatings Co., Ltd Ningbo China). The
sharp rise in the raw material certainly can not be absorbed at any
level.
In his email Mr Amrit Rekhi, General Manager Sales, Polycoat Powders
Ltd.expressed his concerns over the recent developments. He said,
"The current spurt in the price of Crude Oil has resulted in sharp
increase in the prices of major raw materials like epoxy resins for
powder coatings. The rapid rise in prices is compounded by the
supply-demand gap for petrochemical derivates in Asia. Industry
analysts have reported that the rise in petrochemical derivative
prices will be driven by the supply demand gap rather than crude oil
prices, which may drop in the future. Shortage of epoxy resins in
particular is likely to continue in the Asian region, due to the high
increase in consumption of epoxy resins for printed circuit board
manufacture in China. Worldwide powder coating manufacturers have
increased the prices of their products and Powder manufacturers in
India too would have to aggressively go for increase in prices sooner
than later. We being the leaders in this business have already
increased the prices for the Job coating segment/Dealers segment and
are in advanced stage of negotiations with all our major OEM clients
for a price increase."
Results of the opinion poll
1. The Customer
will try to find new powder suppliers and there would be a lot of
reshuffling of the customers and manufacturers.
2.
The powder prices are on
the rise.
The powder demand will
increase :
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58% |
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The powder demand will
decrease: |
13% |
No Change: |
29% |
Telephonic interview with Mr. Bijoy Mukherjee of Berger Paints India
Limited, Kolkata, India
IPC: During
the last three months the raw material prices are said to have been on
the rise. Also the availability of the material is uncertain. Has Berger made any changes in its price structure and by what
percent?
Bijoy:
Yes we have done. We have raised the prices by 10 to 15 percent depending on the
customers.
IPC: What will be the effect of these changes on your sales, and in general, on the powder market?
Bijoy:
Initially there will be a sale loss,
because there is no unity in powder manufacturers. Some have increased
the prices, while others have not. They may get business by not increasing the
price. This unclear and un-uniform business strategy will kill the
entire market and everybody will be at a loss.
IPC: Most of the powder manufacturers have increased the prices? isn't
it?
Bijoy:
No that is not true. We have visited all the OEMS like LG
Whirlpool, Godrej, Elecrolux, Havels, Crompton, everywhere its the
same. Certain manufacturers continue to offer prices
which are less than our earlier prices. They has spoken about the
price rise but have not stopped the supplies yet. They have not
implemented the price rise.
IPC: This will certainly bring a big reshuffle of the customers and
suppliers.
Bijoy:
Yes, Certainly.
IPC: Thanks Bijoy for the talking to us.
Bijoy
Thanks.
Chat Interview with Ma kaifeng of
Yinzhou Gold Lion Resin Coatings Co China.
 While online, we had an chat interview with Ma kaifeng from
Yinzhou
Gold-Lion Resin Powder Coatings Co., Ltd Ningbo city China. Ma
kaifeng is concerned with recent price rises in this market. Gold-Lion
Resin Powder Coatings Co., Ltd has a production of 2500 Tons per year.
A medium size company by Chinese standards.
IPC: you must be aware of the recent price rises in the powder
paint market. What is the situation over there in China?
Ma Kaifeng:
It's really very very bad, many of the
manufacturers have shut down and the remaining have increased their price
by about
20-30%. From the beginning of this year and up to now the price of
epoxy resin increased 120% ....
IPC : What measures has your company taken to tackle this
situation? Have you passed on the rise to your customers, or have you
absorbed it?
Ma Kaifeng:
:-) We have no choice! just to increase the
price ..
IPC: Have you tried to search for newer suppliers who could
supply the material at the old prices?
Ma Kaifeng::
The old price ? it's impossible ..
IPC: And what is the general attitude of the customers and the
powder users?
Ma Kaifeng: It's very obviously that the customer are not happy
to accept a higher price, but you know, no one will do the business of
losing money in this situation.
IPC: Thats true, Besides price rise, is there a problem of
availability of the raw material?
Ma Kaifeng:
Basically there is no problem for us. The problem
is that the price of raw materials. It increased day by day.
IPC: So do you think there will be reshuffle in the total
market?
Ma Kaifeng: I think so .
IPC: Thanks for talking to us..
Ma Kaifeng:Thank you very much. C U later and bye.
IPC: Bye
Paint cos plan to hike prices
again as input costs soar
TIMES NEWS NETWORK
NEW DELHI: Domestic paint companies are in a fix. The 2% price hike a
month back in the wake of cost-push inflation has not been enough and
the movement in raw material prices has started eating into their
margins significantly. Industry sources inform that all the companies
have internally decided to go ahead with another price hike, likely to
be in the 3-5% range.
The question for the paint companies is when to effect the price rise,
as Diwali, which is the peak season for the industry, is around the
corner. A senior executive in one of the mainline paint brands in the
country, said, “Since Diwali is the main season, nobody wants to
disturb it with a mid-season price increase.” <more>
Surface Specialties UCB Announces Price Increases for Powder Coating
Polyester Resins
Brussels -- Effective October 1st, 2004, Surface Specialties UCB will
raise prices of its Crylcoat, Additol and Uvecoat polyester powder
coating resins.
The increases will be in the region of €0.20/Kg and will apply to
Europe, the Middle East, and Africa.
This is the third increase this year and is necessary to offset the
continued significant price increase of primary raw materials, namely
NPG, PTA, IPA and Adipic Acid, as well as the cost of energy and
freight. The prices of these raw materials are moving up dramatically
due to significant increases of the petrochemical feedstocks.
Another reason for these price rises is the change of the global
supply/demand balance for some of the raw materials. As a consequence
there may be risks of scarcity of some raw materials during the fourth
quarter and Surface Specialties UCB may be forced to put specific
products on allocation.
Surface Specialties UCB, as global leading supplier to the powder
coating industry remains strongly committed to further develop this
technology and to expand its field of application.
Surface Specialties UCB is a world leader in the development and
manufacture of technically innovative products and solutions for
surface applications. These specialties include resins, additives, and
adhesives, and are sold into many markets, such as automotive,
industrial, graphics, architecture, wood, textiles, tire, paper,
marine, labels, packaging, tapes and medical.
UCB, headquartered in Brussels, Belgium, is a global pharmaceutical
and specialty chemical company with 12,000 employees around the world.
Jotun Powder Coatings Increases Prices
Jotun
Powder Coatings is increasing prices on Polyester, Epoxy, and
Hybrid-based products sold to the decorative and functional market
segments in all markets.
The company cites the recent substantial escalation in raw materials'
prices, owing to a rise in feedstock prices, and oil, energy, and
transportation cost.
In the Middle East and South East Asia markets, the increase will be:
- 9 per cent for Polyester-based products
- 10 per cent for Epoxy-Polyester Hybrid-based products
- 17 per cent for Epoxy-based products
In Europe, the increase will be:
- 4 per cent for Polyester-based products
- 7 per cent for Epoxy-Polyester Hybrid-based products
- 12 per cent for Epoxy-based products
The price increase will apply to all deliveries as per October 1,
2004.
Jotun Powder Coatings has previously announced a price increase on
Polyester and Hybrid-based products in April 2004.
Source: SpecialChem
UCB: New China headquarter for Surface Specialties
Surface
Specialties UCB has announced plans to establish a new Asia regional
in Shanghai. The move reflects the growing importance of the Chinese
market both for Surface Specialties UCB itself and its customers in
the coatings industry. Said Business Director for Asia, Frank Coenen:
"As part of our strategy to expand in Asia, we are relocating our
headquarters to Shanghai to better serve our customers' needs and the
needs of the industry."
The Shanghai offices will house regional business unit managers,
financial, purchasing and supply chain personnel. The headquarters
will be operational from January 1, 2005. The Surface Specialties UCB
offices in Kuala Lumpur, Malaysia will remain as the central sales and
customer service office for South East Asia.
GM may invest Rs 300 cr on Daewoo plant
BANGALORE: Apart from buying the erstwhile Daewoo car plant in
Surajpur (UP), General Motors (GM) may have to invest Rs 200-300 crore
in putting up a paint shop. Officials said the paint shop will take
about 10 months to become operational and work on it will be kicked
off once the Debt Recovery Tribunal (DRT) dealing with the Daewoo
matter approves its acquisition.
The Daewoo plant is saddled with nearly Rs 3,000 crore of outstanding.
As the due-diligence of the plant is complete, GM is likely to
approach the DRT in a few days now with a acquisition proposal. <more>
It's just a change of colour
HM Bharuka;MD, Goodlass Nerolac
For those who may not know us, Goodlass Nerolac Paints is a subsidiary
of Kansai Paints, Japan and has a group turnover of over Rs 1,000
crore.
We have an overall market share of 20% and a market share of 45% in
the industrial segment of the paint market.
Being foreign-held for most of our history, resulting in capacity
restrictions, we focused on the high-value industrial segment in the
past.
The onset of liberalisation, however, threw up numerous challenges as
well as opportunities in the form of the huge decorative paints
segment. We reacted like all Indian companies at that time, by
stretching past paradigms. <More>
Dow: Announces Price Increases of its Epoxy Products in Europe
(Western and Eastern Europe, including Turkey)
HORGEN, Switzerland > -> (6 October 2004) > -> Effective 1 November 2004,
or as contract terms allow, Dow Epoxy Products and Intermediates
(EP&I) will increase prices for its epoxy resins in Europe.
In Europe, including Western Europe, Eastern Europe and Turkey, Dow will
increase prices by 230 Euro/MT for its liquid, solid, solid solution
and standard brominated epoxy resins. The increase for specialty
resins varies by product.
This increase is in addition to the previous increases, effective 1
October, of 220 Euro/MT for liquid, solid, solid solution and standard
brominated epoxy resins.
Customers interested in learning more about the price increase should
contact their local Dow sales representative.
Dow is a leading science and technology company that provides
innovative chemical, plastic and agricultural products and services to
many essential consumer markets. With annual sales of $33 billion, Dow
serves customers in more than 180 countries and a wide range of
markets that are vital to human progress, including food,
transportation, health and medicine, personal and home care, and
building and construction, among others. Committed to the principles
of Sustainable Development, Dow and its approximately 46,000 employees
seek to balance economic, environmental and social responsibilities.
For further information, visit www.e-epoxy.com or Dow' s website at
www.dowepoxy.com
Protech Chemicals
acquires powder pioneer Oxyplast
Coatings
Magazine, Splatter E-news,
Protech Chemicals, St. Laurent, QC, has acquired Oxyplast NV, Ghent,
Belgium for an undisclosed sum.
Oxyplast is one of the original powder coating manufacturers which
began making powders in the 1960s. It was also the first company to
bring powders to the Canadian market. Protech Chemicals is a Canadian
powder manufacturer founded by another powder pioneer, Henry Ades. His
son, David Ades, a managing partner, says Protech is excited about the
Oxyplast acquisition.
"Protech has a long friendship with Oxyplast and its founders. The two
companies have complementary capabilities in technology, manufacturing
and marketing."
Feedback from IPC subscribers
Commenting on the aquisition, Jehanzeb from Oxyplast Pakistan said,
"In this way, both
companies will be able to share their technologies with each other in
order to achieve a good result in production. This merging will also
aid both Oxyplast and Protech Chemicals to achieve leading position in
the market of the world."
Kuldeep Verma
of Sharp Coating expressed surprise. He said in his email,
"I am very
much surprised to read this news. definitely this is good to survive
the market, this type of activity is required in India also."
Manmohan Samantra of Titan Paints said,
"This take over of
Oxyplast by protech is an industry consolidation to get market
leadership. In fact, in India also, consolidation is taking place in
powder coating industries as the market expands."
M.E.I.S - Steelfab 2004 to witness region's largest display of Steel
Working Machinery
The three-day
Middle East Industrial Show (M.E.I.S) - Steelfab 2004, to be held at
Expo Centre Sharjah from October 10, will witness the region's largest
display of Steel Working Machinery.
Some of the world's most well established brands in the industry as
well as their regional distributors and agents will showcase the
latest in cutting, bending, shearing and related machinery at the
exhibition.
A major highlight of the M.E.I.S - Steelfab 2004, the Middle East's
first exclusive trade show to fully cater to the needs of Steel
Working Industry, will be the powder coating system, manufactured by SAMES of France and represented in the region by Egypt-based MIA
Company. <more>
Rendell Administration
Presents 6 Companies Win 2004 Governor's Award For Safety Excellence
HARRISBURG, Pa., Oct. 18 /PRNewswire/ -- On behalf of Governor Edward
G. Rendell, Labor & Industry Secretary Stephen M. Schmerin today
presented six companies with the Governor's Award for Safety
Excellence.
"A safe work
environment provides a strong foundation for the health and well-being
of employees to contribute to the success of the company," Schmerin
said during the 2004 Governor's Occupational Safety and Health
Conference in Hershey, Dauphin County. "The six companies honored
today have demonstrated their commitment to their employees by
emphasizing safety as a priority." The award is presented annually to
workers and companies that incorporate outstanding workplace safety
initiatives and programs, and honors companies for their commitment to
creating safe work environments.
The 2004 Governor's Award for Safety Excellence recipients are:
-- Rohm & Haas Powder Coating, Reading, Berks County - Rohm & Haas
employees do physical research to develop new materials, formulas and
end uses for powder coatings. The company was designated a Voluntary
Protection Program Star worksite by OSHA in January 2004. The
company's 45 employees completed 13 years without a workplace injury
or illness.
The others are:
-- Robert Packer Hospital, Sayre, Bradford County
-- U.S. Postal Service Processing and Distribution Facility,
-- Bruce and Merrilees Electric Co
-- Pride Mobility Products, Exeter, Luzerne County
-- High Steel Structures Inc., Williamsport, Lycoming County
The two-day health and safety conference draws about 900 safety and
health-care professionals, business leaders, workers, educators and
government leaders from across Pennsylvania. The conference provides a
forum for leaders in the health and safety field to discuss the
importance of workplace safety and exchange knowledge of safe working
practices for Pennsylvania employers and employees.
Winnipeg firm supplies blast-proof paint used on Pentagon
A Winnipeg, MB, company is now supplying a blast-proof coating that
has been applied to the walls of the rebuilt Pentagon in Washington,
DC.
Line-X Coatings Winnipeg is a franchisee of Line-X Corp., which
manufactures the coating at its Santa Ana, CA, plant.
The Paxcon anti-terrorism paint minimizes the destructive
after-effects of blasts. The polyurea-based proprietary coating is
applied with high pressure plural component spray guns. The coating is
untinted and users add their own pigments. It's applied on the inside
of exterior walls and can withstand bomb attacks, chemical attacks and
fires, says Rick Bueckert, owner of the Winnipeg Line-X franchise.
He's invested $30,000 in a mobile paint trailer to deliver the product
across Manitoba and northwestern Ontario. Bueckert has applied the
blast-proof coating to a propane plant in Winnipeg and the interior
panels of New Flyer buses.
Bueckert says the coating can be used in electrical, manufacturing and
construction environments because the coating stands up to sulphuric
acid, battery acid and fires, and it gets stronger in cold weather.
Henkel to acquire Sovereign Specialty Chemicals
Henkel Corporation, a US affiliate of Henkel KGaA, Düsseldorf/Germany,
has agreed to acquire Sovereign Specialty Chemicals, Inc., USA. The
two companies executed a definitive agreement to this effect on
October 6, 2004. Sovereign Specialty Chemicals is a leading American
supplier of specialty adhesives, sealants and assembly adhesives with
sales for the twelve months period ended June 30, 2004 of 391 million
US dollars.
Sovereign Specialty Chemicals has a worldwide workforce of
approximately 900 employees and had sales for the twelve months period
ended June 30, 2004 of 391 million US dollars. Its product range
encompasses technologically sophisticated adhesives, sealants and
coating materials designed for various industrial applications as well
as for the craftsmen and DIY market segment. With nearly 90 percent of
its sales in the US the company is a leading supplier in the American
market. Two thirds of sales generated by Sovereign Specialty Chemicals
relate to its industrial customers.
Sto
is launching first photocatalytic facade paint
The new,
surface-active cleaning process which already keeps bricks and glass
clean by means of photocatalytic reactions is now available for the
first time in the area of facades, too. Following a three-year
development phase, the Germany-based Sto AG, is now launching a
product by the name of "StoPhotosan Color" which incorporates both
nanotechnology and a pronounced photocatalytic effect.
The significant difference between a conventional and a photocatalytic
paint lies in the electrical, chemical and physical reactions which
combine in an active process. Photocatalysis is already established as
a method of keeping surfaces clean in everyday life: A catalyst
initiates a reaction without itself changing in the process. The
best-known example is the catalytic converter in cars, which breaks
down toxic exhaust gases into harmless end products. This is a
wear-free process - the catalytic converter is "regenerated" in the
course of the reaction, providing for a very long service life. In the
new, surface-active facade paint StoPhotosan Color, this catalytic
function is performed by light-active nano-particles. These are
particularly effective in breaking down organic compounds such as
combustion residues from fuels. This makes StoPhotosan Color an ideal
paint for buildings on busy, heavily polluted roads.
eChem
opens factory in Texas
eChem, a UK, privately owned speciality chemical company based in
Leeds, has opened its new factory in Lufkin, Texas, USA. The new
facility will allow international accounts to be served more
effectively and provide a strong base for expansion in the region.
eChem was formed four years ago following a management buy-out from a
major German chemical group and is specialised in additive chemicals
for the plastics, coatings and general chemical industries.
In the coatings sector, eChem has an extensive range of defoamers,
plasticisers and pigment dispersing agents as well as a new range of
coalescing agents for low VOC water-based coatings. It also offers a
full range of PEG ester emulsifiers and a variety of wetting agents.
Making Industrial Vacuum
Cleaners Safer and Vacuum Conveying Technology Safer and More
Productive for 50 Years
VAC-U-MAX (www.vac-u-max.com), the world leader of industrial vacuum
and vacuum conveying technology is celebrating its 50th anniversary.
The Belleville New Jersey-based company continues its tradition of
innovation to solve vacuum-related challenges in a wide range of
manufacturing and industrial settings from powder coating and
metalworking to chemical and pharmaceutical.
Frank Pendleton knew the dust and lint surrounding oiled textile
machinery was a time bomb ready to go off. First hand experience
taught him the fire hazard had to be safely and efficiently removed.
Existing electrical vacuums, however, were not only underpowered but
also posed a real ignition risk due to sparking on start up. And
traditional compressed air hoses simply blew unwanted debris around.
So Pendleton teamed up with an inventor, and in 1954 introduced the
first air-operated vacuum cleaner, or air vac, which was three times
as strong as its electrical counterpart and posed no sparking hazard.
From his dedication to meeting industry’s needs, Pendleton founded VAC-U-MAX,
the world leader of industrial vacuum and vacuum conveying technology.
Now, celebrating its 50th anniversary, the Belleville New Jersey-based
company continues its tradition of innovation to solve vacuum-related
challenges in a wide range of manufacturing and industrial settings
from powder coating and metalworking to chemical and pharmaceutical.
Like a free safety on the football field defending against disaster,
the venerable air vac remains one of US industry’s most mobile and
versatile pieces of equipment. Sam Miller, for example, faced a
labor-intensive, potentially dangerous problem in need of a solution,
as many in the powder coating industry do.
“Static electric shock to our workers while vacuuming excess powder
coating was a concern,” says Miller, Vice President of Miller Welding
and Iron Works, a custom job shop fabricator based in Washington,
Illinois. “We couldn’t adequately sweep the fine powder residue from
the floor, lights, booth walls, and components, and there were
potential flammability issues with the powder and the electric shop
vacuums we were using. With the shop vacuums, our productivity
suffered too since we not only had to vacuum but also clean by hand
using wet rags to prepare booths for the next powder coating job.”
Miller sought out www.VAC-U-MAX.com, which offers the industry’s only
written static control guarantee. To eliminate any shock, fire, or
explosion hazard associated with electric or engine driven units, a
Venturi compressed air-powered vacuum was installed with anti-sparking
vacuum inlets and grounding lugs, static conductivity from end to end,
including a static conductive hose with internal ground wire and
grounded end cuffs that prevent static build up.
“The air operated vacuums were designed for powder applications like
ours,” says Miller. “They eliminated both our static electricity
problem and the spark concern we had with our previous electric shop
vacuums. Not only that, but they’re also 30 percent faster than the
old shop vac equipment, cover more area, and pick up finer material.
Smaller particles are trapped in the filter, which is safer for our
staff.”
Clean filters thus translate into higher productivity, less operator
exposure to contaminants, and higher accountability for controlled
substances. This can be vitally important for industries like
pharmaceutical, which not only tracks every ounce of product for the
FDA, but also needs to recover ingredients that may be worth hundreds
of dollars per ounce, and safeguard operators from ingredients blowing
around in the air that may affect them. For applications like this,
the company offers automatic off-line filter cleaning capability on
its continuous vacuum systems as well.
For safety, productivity, ergonomics, and other goals,
www.VAC-U-MAX.com offers pre-engineered solutions and can manufacture
industrial vacuum equipment to customers’ specific applications.
Akzo Nobel Car Refinishes and
Origin Electric Co. Ltd. sign cross-licensing agreement
Arnhem, the Netherlands, October 27, 2004 – Akzo Nobel Car Refinishes
has signed a technology cross-licensing agreement for automotive
plastic coatings with Origin Electric Co. Ltd. based in Tokyo. This
agreement enhances
Akzo Nobel’s access to the Japanese vehicle manufacturing market for
the supply of coatings used on plastic car parts, such as dashboards,
bumpers and wing mirrors. In return, Origin Electric will benefit from
better access to the European market, as well as Akzo Nobel’s
state-of-the-art waterborne technologies.
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Welcome
to the November 2004 edition of the IPC e-newsletter. The IPC e newsletter
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