Rising crude prices to hit margins ahead: Kansai Nerolac
Paint maker Kansai Nerolac has divested the 49% stake it had in Nipa Chemicals for Rs 25.72 crore. Japan’s Nihon Parkerizing, already a major stakeholder in the company has bought the stake. Nerolac has exited the non-core area of Nipa Chemicals, a company producing pre-treatment chemicals.
In an interview with CNBC-TV18, HM Bharuka, MD, Kansai Nerolac outlined the reasons for the company's exit from Nipa Chemicals, what they plan to do with the money, and gave an outlook on business going forward.

Excerpts from Midcap Radar on CNBC-TV18
Q: If you can take us through this divestment of 49% stake in Nipa chemicals, what is the purpose of this divestment and what do you plan to do with the money?
A: Actually this was one of our associate companies we collaborated with in 1984, and it is actually a pre-treatment chemical business. So it is not our core business. So when Suzuki came into India, I think they wanted a pre-treatment chemical.
So we entered into collaboration with a Japanese company. I think over a period, we decided it is not our core business. So we decided to divest. So this stake has been purchased by the collaborators themselves. So, earlier we were 75% owner, then 49% and now completely out of this business.
Q: If you can take us through how revenues will pan out in the second half and especially margins considering the kind of fuel cost increases that you see?
A: The topline is not an issue. I think the topline would continue to grow. The paint industry has been growing at double digit for the last two decades. So we are not seeing any headwinds as far as toplines are concerned. But certainly margins are under pressure. The margins were lower in the second quarter, and we are expecting further pressure on the margins because commodities, especially crude oil is rising. So, we need to still wait and watch what would be the scenario there, how much would we be able to pass on.
So we have two sets of businesses - one is decorative, where we were able to pass on and in industrial we were not. So I think margins would be under pressure.
Q: Your margins had fallen by about 300 bps in Q2. Where do you see them stabilizing over the medium term? Do you think this is sustainable or there could be a further draw?
A: I think it all depends on the raw material cost and right now they are rising. Only if there is a slowdown worldwide, I would say the prices would go down. So as of now we are saying it is rising, we are only waiting and watching and certainly we would pass on this to our customers. <more>

Asian Paints Q3 Stand-Alone Net Profit Up
(RTTNews) - Asian Paints Ltd. reported third-quarter net profit of Rs.206.60 crore, up from the Rs.178.69 crore for the quarter ended December 31 last year. Total revenue rose to Rs.1,774.95 crore from the Rs.1,299.78 crore in the year-ago quarter.
On a consolidated basis, its net profit for the third-quarter was Rs.220.33 crore, compared with Rs.198.58 crore in the corresponding period of the preceding year. Total revenue grew to Rs.2,118.97 crore from the Rs.1,636.69 crore for the same period last year.
At the BSE, Asian Paints shares are now trading at Rs.2,616.50, down by 1.67 percent from the previous close.<more>

PPG Industries announced the appointment of Anup Jain as vice president, strategic planning and corporate development, effective Jan. 1, 2011.
Jain will join the company's operating committee and report directly to Chairman and CEO Charles E. Bunch at PPG's global headquarters in downtown Pittsburgh.
"Anup brings a broad range of experience to this important strategic role, which will be instrumental to PPG as we continue to grow and expand our businesses globally," Bunch said. "It's my pleasure to welcome Anup to PPG and my leadership team." <more>

Asian Paints to form second JV with PPG Ind
Asian Paints today said it will form a second new joint venture with US-based PPG Industries, besides expanding their existing JV in order to accelerate growth of non-decorative coatings business in India.

As per the plan, Asian paints Limited (APL) and PPG will establish a second 50:50 JV, Asian Paints said in a filing to Bombay Stock Exchange (BSE).

This will be over an above expanding their current 50:50 joint venture -- Asian PPG Industries Ltd (APPG), it added.
APL and PPG have agreed that APL will take lead in the second venture and PPG will take lead in APPG in order to utilise their respective strengths, it said.

"The modalities are being worked on. The arrangement is subject to regulatory approvals and is expected to be completed during 2011," Asian Paints said.

The second joint venture will service the protective, industrial powder, industrial containers and light industrial coatings markets, it added. <more>

PPG expands PaintManager compatibility
Mississauga, Ontario--January 27, 2011--PPG Industries has given its PaintManager software and Paint Shop Interface Program, also known as Repair Order Costing (ROCO), greater capability by integrating with more facility management systems.
Most collision centres will now be able to integrate the system they already have in place with PPG’s PaintManager software to aid efficiency, productivity and profitability.
When PPG looked at how to help collision facilities track paint costs more easily, it decided to build an open interface that would work with any system. This approach allows facilities to use the management system they prefer, while still getting the advantages of integrating repair order data from the system into PPG PaintManager and actual mix costs from PaintManager to the management system. <more>


Nordson Trilogy™ Electrostatic Spray Gun Provides the Highest Kilovolts (kV) Available for Liquid Painting Application; Maximizes Transfer Efficiency and Control

Provides the highest kV in the industry for better part coverage and efficiency
Versatile and easy-to-use; changes from airspray to high-volume, low-pressure (HVLP) with just the switch of a nozzle
The only gun with automatic current limiting, providing better control of gun charge and part coverage
AMHERST, OH, January 11, 2011 – The Trilogy™ Electrostatic Spray Gun System from Nordson Corporation (NASDAQ-NDSN) delivers the highest kV in the industry – 93 kV – increasing transfer efficiency, reducing material costs and improving part finish.
At 93 kV, Trilogy systems provide superior transfer efficiency and paint wrap. With the strongest electrostatic load lines, voltage remains consistently high – even as gun-to-part distances change – ensuring high efficiency coverage. Equipped with Nordson air caps, Trilogy guns produce fine particle atomization at lower pressures for improved paint-to-part transfer with minimal overspray. With a Trilogy system, extreme fan pattern control from four to 20 inches is also achieved through fast, easy air adjustments that can accommodate varying part configurations. The increased transfer efficiency and fan pattern control saves money on coatings and rejects.
Trilogy spray systems are designed with coating versatility in mind. Featuring two atomization technologies – air spray and high volume, low pressure (HVLP) – Trilogy systems deliver superior application performance with a variety of substrates, coatings and part profiles. In addition, switching from air spray to HVLP and back is simple, requiring only the change of a nozzle. Trilogy systems are also available in manual or automatic gun models that incorporate the latest in engineering and design materials.<more>

AkzoNobel Expands Mexico Operations
AkzoNobel invested in a new powder coating manufacturing plant in Apodaca, Mexico, a suburb of Monterrey, Mexico. Located five miles from the Monterrey airport, the new 85,000 square foot facility will include manufacturing, warehousing, research and development labs, administrative offices and a quality control laboratory. The project was approved by Akzo's board in mid-September, and construction began early December with completion expected to take up to eight months. The site will allow the company to more than double its powder coatings business in Mexico and Central America over the next several years. “Based on the sustainable success of our powder coating business in Mexico, as well as the growth of the market in Latin America, AkzoNobel has shown great confidence by allowing us the investment in a new state-of-the-art manufacturing plant,” said Michael Cash, managing director, AkzoNobel Powder Coatings, the Americas Region. “The production capability of the new manufacturing plant will also enable us to continue our track record of introducing new and innovative powder coatings technologies into the Mexican and Central American markets.” The new facility was deemed necessary, as AkzoNobel rapidly approaches the capacity limits of the current manufacturing facility in Monterrey. The company will continue to produce its products in the existing manufacturing facility during the construction phase of the new manufacturing plant, which is expected to be fully operational in the third quarter of 2011.<more>

DuPont
DuPont recently opened a new research and development facility dedicated to coatings science at the Experimental Station in Wilmington, Del. (U.S.). The new Coatings Technology Center (CTC), established by DuPont Performance Coatings (DPC), will focus on DuPont Refinish Systems products that support the automotive collision industry and DuPont Industrial Coating Solutions, which markets a wide range of liquid and powder industrial finishes.
“Innovation is essential to the continued growth of our coatings businesses,” said John McCool, President, DPC. “This investment in research and development clearly demonstrates our commitment to growing our global coatings businesses.”
“Locating this new facility at the Experimental Station allows us to leverage its unique and powerful base of scientific expertise and advanced research and development facilities,” said Lewis Manring, Vice President, Global Technology, DPC. “This facility will operate unlike any previous DuPont coatings laboratory, with a strong focus on inclusive innovation.
“The result will be a collaborative and efficient team focused on providing our customers with the finest coatings in the world and the technical support they need to use those products productively and profitably,” Lewis said.

Free paint samples from Valspar
Color your world, or at least a tiny part of it, with a free paint starter kit from Valspar. They're giving away 1,000 kits a day for 100 days. (They started on Monday of this week, so you still have time.)
The kits include an 8-ounce paint sample, mini roller, tray and coordinating paint chips. That should be enough to give you a good preview of the color. They'll also throw in a $5 Valspar coupon, good at Lowe's, in case you decide to go big. <more>

Jotun expects rise in solar-reflective paint use
Use of solar-reflective paint is expected to increase significantly in the Middle East over the next five years according to paints and coatings supplier Jotun.
Executives from the firm, which currently has the largest share of the paints and coatings market, say they expect a rise in the use of the paint as the region increases its efforts to be green.
In an interview with Construction Week, marketing manager Ashish Vasudev said: “Over the next five years we are going to see a lot more energy saving and green initiatives.<more>

Another price cartel exposed on paint and varnish market
The Office of Competition and Consumer Protection (UOKiK) announced that it has uncovered another price-fixing agreement in the varnish and paint branch.
The company accused of such illegal practices is Akzo Nobel, which, together with four DIY chains, i.e. Castorama, Obi, Leroy Merlin and Praktiker, set, according to UOKiK, minimum sales prices for certain paints and varnishes. The arrangement was in force from 2003 in the case of Castorama, and from 2004 in the case of the other chains, and lasted until the end of 2006. The price fixing came to light thanks to information provided by two of the participants.<more>

Oxea Increases Capacity for Neopentyl Glycol
OBERHAUSEN, Germany--(BUSINESS WIRE)--The global chemical company Oxea will further strengthen its Oxo-Derivatives portfolio by raising its Neopentyl Glycol (NPG) capacity at its production site in Oberhausen, Germany. The project is scheduled for completion by mid-2011 and will raise Oxea’s European capacity to 45,000 metric tons.
“In Asia, growth has remained strong even during the 2009 global crisis with the Chinese market already set to outpace Europe”
“In 2011 we will have completed the stepwise increase of our Neopentyl Glycol capacity in Europe which started in 2008. Global demand of this important building block for eco-efficient powder coating resins and lubricants continues to grow above GDP,” said Miguel Mantas, Executive Board member for marketing and sales. “In Asia, growth has remained strong even during the 2009 global crisis with the Chinese market already set to outpace Europe,” Mantas continued.
Oxea is a global manufacturer of Oxo intermediates and Oxo derivatives such as alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used for the production of high-quality coatings, lubricants, cosmetic and pharmaceutical products, flavorings and fragrances, printing inks and plastics. In the 12 months ending September 2010, Oxea generated revenue of about EUR 1.3 billion with approximately 1,330 employees in Europe, the Americas and Asia.<more>

Labour woes force lockout at two TNPL units
Tamil Nadu Petroproducts (TNPL), promoted by Southern Petrochemicals Industries Corporation (Spic) and Tamilnadu Industrial Development Corporation (Tidco), today declared a lockout at two of the companys units. The move follows labour problems at these.
While management representatives were not available for comments, a company statement said workers at the Linear Alkyl Benzene (LAB) and Epichlorohydrin (ECH) units in the Manali industrial belt on the outskirts of Chennai, had unfairly prevented officers from leaving the factory after working hours on Wednesday. The workers were demanding implementation of an Industrial Tribunal Award on wage settlements. The management added its talks with workers to end the deadlock yielded no results.<more>
Follow up
Tamilnadu Petroproducts lifts Lock out
Tamilnadu PetroproductsLtd has now announced that the Management has lifted the Lock out, applicable to all workmen in Linear Alkyl Benzene (LAB) and Epichlorohydrin (ECH) units from 3:30 p.m. on January 22, 2011, in view of the understanding reached between the Management and the Union before the Asst. Commissioner of Labour, Chennai. <more>

Spit eats into base of bridge
Spit-o-cracy is threatening the safety of Howrah bridge with the daily onslaught of gutkha spat out by pedestrians corroding the protective hoods at the base of its pillars.
Officials of Calcutta Port Trust, the custodian of the 67-year-old bridge that bears the weight of over a lakh vehicles every day, said the commuters’ collective spit power had reduced the thickness of the steel hoods protecting the pillars from six to three millimetre since 2007.
“Gutkha contains highly corrosive elements that erode even steel. A safety audit is now being planned to find out the effect of constant spitting and several other factors on the stability of the hangers that transfer the load of traffic uniformly across the structure,” a senior port trust official told Metro on Sunday.
Forensic sciences expert Biswanath Kahali confirmed that accumulation of gutkha-laced spit on steel would have the same effect that acid has.
“Slaked lime combined with catechu and tannin, which are all components of gutkha, form an organic compound that acts as a corrosive agent on a steel surface. In combination, these substances can gradually corrode a steel structure,” added Kahali.
A port trust official said the base of all 78 hangers had suffered extensive damage over the years with pedestrians passing by treating the bridge as a spittoon. “These hangers help transfer the load of the bridge from the deck to the girders. So any damage to the hangers constitutes a threat to the safety of the bridge,” an official said.
The cantilever structure has been designed in such a way that the load first gets transferred to the girders under the belly of the deck, from where the hangers shift the weight to the overhead structure.
The hangers, positioned across the 1,500-foot bridge, have hoods at the base to prevent water seeping into the junction of the cross-girders and hangers.
The port trust had replaced all the hanger-base covers in 2007 after they were found to have been damaged. “We spent several lakhs on replacing these but 50 per cent of the hoods have been eroded within three years. The 6mm bases are now around 3mm each. If corrosion continues at such a rate, we would need to decommission the bridge for repairs,” warned a port trust official.
An estimated five lakh pedestrians use the bridge every day to cross the river. The most damaged parts of the bases are along the pedestrian walkways of the landmark bridge. “Those on the side of the thoroughfare are not damaged. This proves that pedestrians chewing gutkha and spitting are the culprits,” said an official.
Officers of North Port police station claimed they were routinely imposing fines on pedestrians caught spitting. “However, it is not possible to deploy personnel to prevent spitting on the pillars given our manpower shortage,” said an officer at the police station.
The report of a survey by Rites in 1983 had mentioned how corrosion was the main cause of damage, though gutkha was specifically not mentioned as a threat. According to that report, corrosion was being caused by adverse atmospheric conditions and aggravated by human and vegetable waste.<more>

Huge fire engulfs paint factory in Australia
Residents on the outskirts of Sydney were evacuated after a paint factory burst into flames creating a huge plume of black smoke.<more>


Premier Powder Coating building has limited damage from Sunday fire
Fire damaged the metal-sided Premier Powder Coating building last Sunday located just south of Princeton city limits inside Baldwin Township.
The Baldwin Fire and Rescue Department was dispatched shortly before 9 a.m. to the Premier Powder Coating property located at 31521 125 1/2th St. about a block southwest of Marv’s True Value. The Zimmerman-Livonia Fire District and the Princeton Fire and Rescue Department were dispatched as mutual aid. Baldwin Captain Robin Fischer was the officer in charge at the scene. He said on Monday that he had sent the Zimmerman-Livonia crew home on Sunday when it was realized that crew wouldn’t be needed.<more>

Milford roof collapses from snow and ice
Milford, Conn (WTNH) - For decades, the old Atlantic Powder Coating building stood up to the elements, but this winter was apparently just too much.
Even before City inspectors ruled that the roof collapsed under the weight of the snow Tuesday night, the folks next door at Premier Kitchens were up on their roof, shoveling like mad.
Luckily, no one was hurt.<more>

Fire damages local man’s business
A Baldwin Township powder coating business caught fire last weekend, but was back up and running this week thanks to the quick response of firefighters and a team effort to seal off and clean the damaged section of the building.
The Baldwin Township Fire Department was called to Premier Powder Coating, 31521 125 1/2 St. in Princeton, about 9 a.m. Sunday on a report of smoke coming from the roof of the business. <more>