1998-01

4.15 US highway/traffic paints.

Chemical Market Reporter: December 1997

Waterborne formulations are expanding their share of the market for highway and traffic paints, while solvent-based formulations continue to decline because of worries over volatile organic compound emissions and legislation aimed at reducing the acceptable solvent levels in highway coats. Alternative technologies, such as striping tape, thermal plastics and high solids are increasing. The total US market for highway and traffic paints is about $175 M and growing at about 2%/y. Waterborne coatings represent about 60% of the total dollar value, with solvent-based formulations holding about 30%. The remaining 10% is split between numerous 100% high-solid coatings, unsaturated polyester coats, epoxies, and methylmethacrylates. Waterbornes are recording 9%/y growth at the expense of solvent-based products which continue to decline. In addition to the benefit that waterbornes do not contain volatile organic compounds, they also offer improved performance. Alternative technologies that impact the coatings market are pressure-sensitive reflective road striping tape and thermal plastic hot melt adhesives. The latter are solid blocks of material that intermix pigment, resins, binders, and glass beads at application, which catalyze when in contact with the road surface and convert to solid material. Current US thermal plastic volume is about 80,000 tonnes, or $160 M, and is forecast to record growth of about 3%/y during 1997-2002. Producers are also increasingly adopting organic yellow pigments without lead and shifting away from lead chromate pigments.

4.14 STAKES ALTERED AT SHALIMAR, JINDAL TAKE BIGGER PIE4.

Business Standard, November 1997

Delta Nominees of Hong Kong has reduced its stake from 40 percent to 19.94 percent in Shalimar Paints. Promoter Jindal's stake has increased to 39.21 percent from 20 percent. Jindals' 39.21 percent holding is through 18.49 percent stake of Jindal Strips, 7.93 percent of Saw Pipes, 6.31 percent of Nalwa Investments and 6.48 percent of Colorado Trading Company. Shalimar Paints is the market leader in marine paints. The company has a loan burden of Rs41.10 crore in 1995-96. (A crore equals Rs10 mil.). In the first half of 1996-97, the company has posted a turnover of Rs 56.70 crore against Rs56.18 crore in the first half of 1995-96

4.13 ICI’s strategic plans

Chemical Week, December 1997

ICI is concentrating on growing its core activities, especially paints, where sales are projected to rise from £ 2.5 billion in 1997 to £ 4 billion by 2000 and $ 6 billion in 2005. Miller Smith says ICI wants to take advantage of restructuring in the industry. Although strong in the U. K., ICI’s paints position in continental Europe is weak. The company has reportedly made offers in the past few years to buy Sigma ( Manage, Belgium ), Petrofina’s coatings business, but the offer was low, industry sources say. Miller Smith declines to comment on ICI’s interest in Sigma, which is expected to be sold or partly floated.

4.12 Wilckens Farben has spent DM25 mil to expand capacity

Farbe & Lack: November 1997

Wilckens Farben, a ship paint, industrial coatings and building paint maker, has invested DM25 mil in an expansion of its plant in Glueckstadt an der Unterelbe, Germany. Production capacity at the plant is expected to rise to 20k t/y by 2000, vs 12k t/y at present.

4.11 World coatings markets show good regional demand

Chemical Market Reporter: December 1997

According to the US consultancy DPNA International, the world coatings market is in the process of a major restructuring. Four distinct regional markets are emerging, covering Europe, the Americas, Asia-Pacific and Rest of the World. Total world demand for paint in 1997 is estimated at 4.58 M gallons, with Europe accounting for 29%, the Americas 37%, Asia-Pacific 24% and the rest of the world 10%. By the year 2000, demand is expected to rise by 130 M gallons in the Americas, 150 M gallons in Asia and 70 M gallons in Europe. Only a few major companies, such as Sherwin Williams, PPG and ICI have the resources to compete in all markets. The others are being forced to focus on specific sectors or regions.