Painting a rosy
looks bright for paint companies on the back of a boom in construction
and housing segment.
By the looks of it, the future is going to be painted in vibrant
colours for the paint industry. Primarily driven by the boom in
housing and construction segment, the sector fundamentals are looking
brighter than ever, say analysts.
What is more, growth in auto, coating and industrial paints segment is
also adding to the cheer. With the industry growth rate pegged at
12-14 per cent going forward, analysts are optimistic about future
price potential in stocks such as Asian Paints, Goodlass Nerolac,
Berger Paints etc.
Set to grow
Growing disposable incomes of people, improving lifestyles and the
retail sector boom have also come as a big boost to the paint
industry. Moreover, the per capita consumption of paints in India is
still very low at about 700 grams per annum, in comparison to 22 kg in
US, which leaves ample scope for future growth.
"The paint industry should see buoyant times ahead with the economy
expected to grow at seven per cent," says Goodlass Nerolac managing
director H M Bharuka.
"The demand for premium paints is on the rise due to aspirational
consumers who want better homes and lifestyles," says Ashwin Dani,
Asian Paints vice-chairman & managing director. <more>
Shalimar starts technical
collaboration with KCI
Limited (SPL), a paint company based in India, has signed a technical
collaboration agreement with Kunsul Chemical Industries Company
Limited (KCI), Korea, for pre-coated metal coatings. KCI is one of the
largest manufacturers of PCM coatings in Korea. Under the
collaboration agreement KCI will be giving the technical know-how to
SPL for various PCM products. SPL is planning to set up a PCM coating
plant in its Nasik factory based on the know-how to be provided by KCI
and will be manufacturing both architectural and appliance grade PCM
coatings. The market for coil coatings in India has grown considerably
in the last two years. Today, the installed capacity is 570,000 MT
which is expected to almost double in the next three years with the
additional lines coming up
Honda Motorcycle and
Scooter India approve Lesonal refinish
Honda Motorcycle and
Scooter India has approved Lesonal refinish paint for after market
painting jobs at their dealer network after just 6 months of
initiating the approval process. This is the first automotive approval
in the two-wheeler segment for Lesonal in India.
Mohammed Faisal Gourh, AAM manager India said, 'Bodyshops can increase
their profitability by using Lesonal, as the two-wheeler parts can now
be repaired instead of having to be replaced.' He added, 'Customers
will have their motorcycle or scooter back much faster.'
Honda Motorcycle and Scooter India were looking for renowned paint
companies to stabilise their after market paint jobs. They tested Akzo
Nobel's products on consumption/cost, colour matching abilities and a
strong dealer network across India. In addition to offering the first
class Lesonal assortment, Akzo Nobel will offer training to bodyshop
staff to help them reap the full benefit from the products.
Rohm and Haas will
set up a facility for specialty chemicals in South India
Rohm and Haas (India) Pvt Ltd, a specialty chemicals company, plans to
invest INR 1,000 million in setting up a greenfield facility in South
India and expanding capacities in its existing plant in Western India.
The company is setting up the facility in South India primarily to
address the growth in the two key businesses it is present ? architect
and functional coatings; and adhesives and sealants. A part of the
investment would also go into expansion of its manufacturing facility
at Taloja, near Mumbai. This plant manufactures water based emulsion
polymers for the decorative paints, textiles, construction, paper
coatings and leather industries, and flexible packaging adhesives.
With its capacity building plan, the company wants to grow its
turnover to INR 7,000 million over the next five years from INR 2,500
million in 2005.
2005 Top Companies
The ranking is
based on annual sales of paint, coatings, adhesives, sealants and
related products. For companies based outside the U.S., sales are
translated into U.S. dollars using the average currency exchange rate
for the company\'s fiscal year/reporting period <more>
Nobel (The Netherlands)
||ICI Group (UK)
Powder Coating Giant
Opens Plant in China's Hebei Province
BEIJING, Nov 24 Asia Pulse - Powder coating giant Akzo Nobel has
recently opened a powder coating plant in Langfang, located in north
China's Hebei province.
The Netherlands-based firm now has four plants in China.
Akzo Nobel CEO Hans Wijers said Akzo Nobel's strategy is to build
plants closest to its clients.
Akzo Nobel-Langfang Company will mainly engage in the research and
development (R&D), production and sale of powder coating. A new R&D
department has been set up and the technologies, raw materials,
equipment and processes used will be the same as those used by other
Akzo Nobel Companies around the world.
Sprinkler helps contain fire at Myco Display Manufacturing
ROCKFORD — A
malfunctioning piece of machinery Tuesday sparked a fire that caused
about $50,000 in damages to Myco Display Manufacturing, 1122 Milford
Firefighters were dispatched at 8:08 p.m. to the
400,000-plus-square-foot facility after receiving reports of a
commercial building fire.
Upon arrival, firefighters were met by company employees who said the
powder-coating machine malfunctioned and ignited powder coating
material. An attempt by employees to extinguish the fire with
portable fire extinguishers was un-successful, and the sprinkler head
activated and doused the flames.
About 45 employees safely exited the building before fire department
“This is a perfect example of how effective a sprinkler system is,”
said Rockford Fire Investigator Bill Hyde.
“One sprinkler head extinguished the fire. It confined the fire to the
area of origin. All the employees got out, and they were back in
Firefighters assisted employees with shutting down the water flow to
the sprinkler head, exhausting smoke, and cleaning up water.
Tikkurila To Become The Leading Paint Company In Russia
with the Group's strategy, Kemira strengthens its market position in
the Eastern European paints and coatings business through the
acquisition of OOO KRASKI TEKS paints company in Russia.
Through this acquisition Tikkurila, the company responsible for the
paints and coatings business of the Finland-based chemicals company
Kemira, will become the leading paints company in Russia. The net
sales of the company totalled USD 70 million in 2004. The company
employs 800 persons on a permanent basis. The agreement is subject to
final approval by the relevant authorities and other conditions set
out for finalising the transaction. The debt-free purchase price has
been set on USD 40 million.
Hexion Specialty Chemicals To Purchase Coatings & Adhesives Business
From The Rhodia Group, Acquisition Strengthens Hexion Waterborne
COLUMBUS, November 4, 2005 -- Hexion Specialty Chemicals, Inc., the
world's leading producer of thermoset resins for industrial uses,
announced today that it has signed a definitive agreement to purchase
the decorative coatings and adhesives business unit of The Rhodia
The Rhodia business had 2004 sales of approximately EUR 150 million,
with about two-thirds in Europe and the rest in other global regions.
The business produces emulsion and powder latexes, which are used in
decorative paints and construction mortars; pressure sensitive
adhesives and anti-foam agents, used in the converter labeling market
and other applications; and acrylic resins used in specialty roof tile
coatings and coating latexes in the Asian and Australian markets.
The business includes 8 production facilities and employs
approximately 440 people. It will become part of Hexion's Coatings &
Inks Division, a global leader in thermoset resins and materials
serving diverse markets including coatings, inks and composites. The
manufacturing facilities that will be acquired are located in
Ribecourt and Bolbec, France; Leuna, Germany; Asua, Spain; Paulinia,
Brazil; Clayton, The United Kingdom; Boxhill, Australia; and,
Samutsakorn, Thailand. <more>
Changes Designed to Stimulate Nordson's Overall Financial Growth
Oct. 28 /PRNewswire-FirstCall/ -- Nordson Corporation (Nasdaq: NDSN)
today announced a number of restructuring and other actions being
taken to improve performance and reduce costs in its Finishing and
Coating business segment. These actions, which include operational
consolidations and personnel reductions, commenced during the fourth
quarter of fiscal year 2005, and will be substantially completed
during the first half of the fiscal year 2006.
"These actions are being taken to align resource investments with
shifting patterns of global demand. By these actions, the Finishing
and Coating segment will operate with both lower costs and better
capability to serve customers in the faster growing emerging markets,"
said Edward P. Campbell, chairman and chief executive officer.
The restructuring of the Finishing and Coating business is expected to
produce annual cost savings of approximately $4 million by the end of
year 2006. Excluding the potentially positive effect of growth
initiatives, the shifting of direct sales to third party distribution
in select markets and
the discontinuation of certain product lines should reduce revenue on
an annual basis by approximately $4 million. The company anticipates
actions will result in restructuring charges totaling $3.3 million of
which approximately $1.0 million will be reflected in the fourth
quarter of fiscal
Taking into the effect the above noted restructuring charge as well as
the share repurchase action announced in September, it is estimated
that earnings per share for the fourth quarter will be at the high end
of the earnings guidance range provided in August of $.62 to $.68 per
As part of the restructuring of the Finishing and Coating business
segment, Nordson will:
- Close its Electrostatic Technology Inc. (ETI) operation located in
Branford, Connecticut. ETI manufactures fluidized bed powder coating
systems. Nordson will continue providing technical support for
previously sold engineered systems, supply spare parts, and honor
service agreements of current ETI customers. Support for existing ETI
customers will be transferred to Nordson's Amherst, Ohio facility -
global engineering and operations center for Finishing and Coating
- Expand its Finishing and Coating Center of Excellence (FCCE) at the
Nordson facility in Erkrath, Germany. This facility will give
the ability to work closely with engineers in an expanded
collaborative environment to test equipment, integrate powder
systems into their
respective projects, and receive highly responsive solutions-based
feedback and customer service.
- Move its Finishing and Coating manufacturing operations in Italy to
Erkrath, Germany to gain operational and overhead efficiencies. The
move will facilitate close coordination with the FCCE, and position
the business segment to meet customers' growing demands in Central
and growing emerging markets, including Eastern Europe and the Middle
- Integrate its U.S.-based sales teams for powder coating and liquid
finishing systems to form one high-performance Finishing Sales
organization. The sales team will operate under centralized management
in Amherst, Ohio, thereby taking advantage of increased selling
opportunities at common customers and optimizing sales efforts in both
Except for historical information and comparisons contained herein,
statements included in this release may constitute "forward-looking
statements," as defined by The Private Securities Litigation Reform
Act of 1995. These statements involve a number of risks, uncertainties
factors, as discussed in the company's filings with the Securities and
Exchange Commission that could cause actual results to differ
UTEK Completes Technology Transfer with Trio Industries Group, Inc.;
Transfer Includes License to a Wood-Fiber Particle Board Alternative
PLANT CITY, Fla. & DALLAS--(BUSINESS WIRE)--Nov. 18, 2005--UTEK
Corporation (AMEX:UTK)(LSE-AIM:UTKA), an innovative technology
transfer company, and Trio Industries Group, Inc. (Pink Sheets:TRIG),
a fully integrated manufacturer of finished household cabinet
components and contract furniture, announced today that Trio
Industries Group, Inc. has acquired Cornboard Technologies, Inc., a
subsidiary of UTEK Corporation, in a stock transaction.
Cornboard Technologies, Inc. holds the exclusive license to a patented
technology developed at the University of Illinois at Urbana-Champaign
that uses the fibrous husk and stalk waste products of the corn
processing industry to form a structural composite board that is
thought to be stronger and harder than wood-fiber composites. The use
of this otherwise discarded resource may provide significant cost
savings and reduce the utilization of wood forests. The corn-based
fiber is widely available, and the husks require no further processing
prior to their use in the composite.
"With cornhusks, no processing is required other than cleaning and
drying. The fiber is then layered into a mold that has been
pre-treated with a releasing agent for easy removal," said Inventor
Scott White, Professor of Aeronautical Engineering at Illinois.
Professor White added, "Once the composite has been compressed and
cooled, it is removed from the mold and can be cut or shaped as
needed. First forming thinner composites and then compressing them
together can prepare composites of any thickness."
"Trio Industries Group, Inc. is enthusiastic about this technology and
its potential for being a suitable and practical replacement to
wood-fiber particle board. We are looking forward to expanding upon
this technology," said Rob Gyemant, Chief Executive Officer of Trio
Industries Group, Inc. "The overproduction of agricultural products
like corn provides an abundant supply of renewable resources for
industrial products as well as the opportunity to reduce undesirable
effects on our natural resources."
"UTEK is pleased to consummate this technology transfer with Trio
Industries Group, Inc. and we look forward to continuing our efforts
to identify additional technology acquisition opportunities for their
consideration," said Joel Edelson, Vice President of Technology
Alliances for UTEK Corporation.
About the University of Illinois at Urbana-Champaign
The University of Illinois at Urbana-Champaign is a world leader in
research, teaching and public engagement, distinguished by the breadth
of its programs, broad academic excellence, and internationally
renowned faculty. Illinois alumni have earned Nobel and Pulitzer
Prizes and Olympic medals, have orbited the earth and lead
international corporations. The campus offers rich experiences beyond
the classroom, from the best performing arts to Big Ten sports. For
more information about the University of Illinois at Urbana-Champaign,
please visit its website at http://www.uiuc.edu.
About Trio Industries Group, Inc.
Trio Industries was formed in early 2000 to capitalize on disruptive
new coatings technologies developed by DuPont and Rohm and Haas
Company, two leading specialty chemical firms which patented powder
coating applications that provide an enhanced performance acrylic
coating finish to wood products. Such coated wood products are used in
a variety of industries, including leading starter homes and
multi-family housing developments, office furniture components and
ready-to-assemble products being sold by today's "big box" retailers.
For more information on Trio Industries, please visit its website at
About UTEK Corporation
UTEK(R) is a leading, market-driven technology transfer company that
enables companies to rapidly acquire innovative technologies from
universities and research laboratories worldwide. UTEK facilitates the
identification and then finances the acquisition of external
technologies for clients in exchange for their equity securities. This
unique process is called U2B(R). In addition to its U2B(R) service,
UTEK offers both large and small capitalization companies the tools to
search, analyze and manage university intellectual properties. UTEK
has operations in the United States, United Kingdom and Israel. For
more information about UTEK, please visit its website at http://www.utekcorp.com.
Huber Group Acquires
Majority in Micro Inks
Coatings Flash - November 07, 2005
The Huber Group, the world's 5th largest printing ink manufacturer has
agreed to form an alliance with the Bilakhia Family in Micro Inks Ltd.
Huber has agreed to acquire a majority stake between 50.5 % and up to
59.06 % in Micro Inks at a price of INR 675 per share resulting in a
total consideration of up to INR 9,915 million. Bilakhias would
continue to hold a minority interest in Micro Inks. Huber, through its
holding company MHM Holding GmbH will also launch the obligatory
tender offer to acquire up to 20 % of the shares of Micro Inks Ltd.
The transaction, which is subject to requisite Indian regulatory and
other approvals, is expected to be completed by early 2006. Both
parties have also agreed to cooperate globally and the Bilakhias will
acquire a 46 % stake in a European subsidiary of Huber - Stehlin &
from Maxton Fox
In response to a growing demand in the market for a workstation that
is more flexible but still be attractive, Maxton Fox has updated its
Kris Kros Over system to meet these requests.
The Kris Kros Over system installed at Ray White, Brisbane.
While still maintaining its core essence of being a
highly-configurable panel and desk system, the group says it has
improved on the finer details and improved it’s function and
This system was introduced as a large-scale installation for Ray White
(Brisbane) and proves to be a highly successful and effective
solution. Stemming from the success of this project, a number of other
clients have benefited from the freedom that this system provides.
The Trimatrx system is a product and process system developed between
Orica, Alpine Industries and Dulux Powder Coating whereby powder
coating can be applied to MDF board. A special resin is used in the
manufacture of the board to create MDFMR, allowing it to be coated
successfully using electrostatic spray guns during the powder coating
This was completed earlier this year after almost two years of
extensive testing carried out in the Dulux laboratories in conjunction
with Maxton Fox’s manufacturing facility in western Sydney. When
applied by a Dulux registered applicator such as Maxton Fox (one of
only two in NSW), the coating meets Din standards (68861) for
performance of the surface when exposed to extreme conditions such as
coffee and lipstick staining, cigarette burns, and boiling water
spills. If damaged in use, acrylic paints are available for on-site
Coupled with the design flexibility of the powder coated Trimatrx
worksurfaces, Kris Kros Over establishes itself as a popular addition
to the Maxton Fox range of workstation systems.