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LEADING JOURNAL FOR THE COATINGS INDUSTRY IN EUROPE AND THE MIDDLE EAST

                                                          VOL 212 – NO 4673   FEBRUARY 2022

Inside: Mergers & Acquisitions
Inside: Colour Forecasting

Protective perspective
Latest research and news from the world of protective coatings

SOUTH AFRICA • POWDER COATINGS • CFA PREVIEW • H&S • ARCHITECTURAL & DECORATIVE
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                                                            CONTENTS

                                                     VOL 212 No 4673 February 2022

US Viewpoint                                                               37 Coatings For Africa Preview
                                                                           A taste of what to expect at this year’s Coatings For Africa
10 Paints & Coatings 2022: Where to from here?
Michael Rezai, ChemQuest Group, reports on the current state               Protective Coatings
of the chemical industry in the US and his predictions for the
paint and coatings sector for the coming year                              39 Improving corrosion protection
                                                                           Results of research into improving corrosion protection of
Mergers & Acquisitions                                                     acrylic waterborne coatings by doping with microencapsulated
                                                                           corrosion inhibitors
16 A year of surprises and major rearrangements
Terry Knowles reviews company changes during the past year                 45 Measuring self-healing performance
                                                                           Researchers from Yonsei University in Korea investigate the self-
Architectural & Decorative Coatings                                        healing performance of a microcapsule type protective coating
                                                                           on cement mortar
20 Architectural coatings news
Axalta opens a new Colour Experience Room in Milan and                     50 Protective coatings news
Interpon launches three new colour palettes                                An ecological, cellulose protective coating for bananas and
                                                                           AGM’s graphene-enhanced anti-corrosion product range
21 Assessing pigments in waterborne latex paints
Artur Palasz, Spektrochem, discusses methods of assessing                  Health & Safety and Regulations
orange pigments in water-based architectural paints
                                                                           51 Support for CEFIC’s green transition path
Company Profile                                                            FIPEC backs the European Chemical Industry Council’s detailed
                                                                           study on the economic effects of the European Commission’s
27 How, what, where and why                                                sustainable chemistry strategy
Oussama Ghandour, MD, at Tawazon talks to PPCJ about the
company, the challenges and trends it faces and doing business             52 RSC reveals UK’s paint stash!
today in the Middle East region                                            UK’s unused paint totals more than 50M litres, posing
                                                                           environmental issues says the Royal Society of Chemistry
Colour Forecasting
                                                                           Colour Technology
30 Why it’s ‘Sunny side up’ for Europe
Montaha Hidefi discusses how the annual World Color Forecast               54 What to expect in 2022
is produced and reveals the path colours will take this year               Jason Loehr, Datacolor, discusses the latest trends from digital
                                                                           colour management systems to waste recycling software
Powder Coatings
32 Enhancing powder coating performance
Kevin Biller discusses the use of hard minerals to enhance                    Regular Features
powder coating performance                                                    03     From the Editor
                                                                              04     News
South Africa Focus                                                            13     Business Matters
                                                                              15     Powder Matters
35 Market report                                                              56     Products
Paint sector looks to innovation as it fights off impact of COVID

  COVER IMAGE CREDIT: www.akzonobel.com

                                                          1 PPCJ • February 2022
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                                                                      EDITORIAL REPORT

                                                                Looking backwards and forwards...
                                                               H
                                                                        ello and welcome to issue number                            We also welcome Montaha Hidefi
                                                                        4673 of PPCJ and the first one                          back to PPCJ with an article on the Color
                                                                        of 2022! As always at this time of                      Marketing Groups’ annual World Color
                                                                year, we look back at what happened in                          Forecast, describing how it is produced
                                                                the industry over the past 12 months and                        and reveals the different colours paths
                                                                speculate, forecast and plan what the next                      different parts of the world will be taking.
                                                                12 may bring.
                                                                   Apparently, it was the Greek                                 n     All eyes on South Africa
                                                                philosopher, Heraclitus of Ephesus
                                                                who said: “The only constant in life is                         Moving south eastwards from North
                                                                change”, which realistically to me, has                         America, our next point of focus in this
                                                                always seemed at the same time both                             issue is South Africa with a market report
                                                                a ‘blindingly obvious’ statement and                            and a preview of Coatings For Africa, which
                                                                somewhat reassuring.                                            is due to take place in Johannesburg from
                                                                                                                                May 4-6.
                                                                n    M&A review                                                     Following the civil unrest which
                                                                                                                                occurred in the country’s KwaZulu-Natal
                                                                Our annual review of Mergers &                                  and Gauteng provinces from July 9 to 18,
Chris Malthouse                                                 Acquisitions describes 2021, to quote                           sparked by the imprisonment of former
Senior Editor, Coatings Group                                   author, Terry Knowles, as: “A year of                           President Jacob Zuma for contempt of
christinemalthouse@dmgevents.com                                surprises and major rearrangements,”                            court, combined with the effects of the
                                                                suffice to say that the tables are certainly                    pandemic, the paint sector has had a
                                                                bigger than those of last February and                          difficult 12 months. However, according
                                                                include more than 60 transactions but are                       to a report by IndustryARC, rising
                                                                only approximately 50% of the number that                       construction is boosting demand and the
                                                                took place in 2017. Key takeaways from the                      sector is meeting the growing demand for
                                                                report include the fact “that private equity                    innovative and sustainable formulations.
                                                                participation seems to have gone through                        Nonetheless, SAPMA Chairman Sanjeev
                                                                the roof” and perhaps, unsurprisingly,                          Bhatt believes the country’s coatings sector
                                                                that most of the action in the distribution                     will not experience “significant business
                                                                sector has taken place in the USA and                           recovery” before Q2, 2022, as it continues
                                                                Asia Pacific.                                                   to battle the ongoing supply chain issues.
                                                                                                                                    For more information about Coatings For
                                                                n    View from across the pond                                  Africa, visit www.coatingsforafrica.com
                                                                                                                                    Meanwhile in April, all eyes in the world
                                                                Also looking backwards and forwards                             of coatings will be focused on Indianapolis
                                                                in this issue is Michael Resai, a Senior                        for the American Coatings Show and
                                                                Consultant at the ChemQuest Group in the                        Conference: a taste of what is to come
                                                                first of our US Viewpoint reports of the year.                  can be found on page 12 and a review by
                                                                Michael looks at the main factors affecting                     yours truly, is scheduled for the June issue
                                                                the chemical industry in general over the                       of PPCJ.
                                                                last year before moving on to the coatings                          All being well, it’s going to be a busy few
                                                                industry in more detail.                                        months; now where did I put my passport...

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                                                                           3 PPCJ • February 2022
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                                                           NEWS

NEWS IN BRIEF                    PPG invests US$10M in automotive
Sipchem shares up 142%           OEM coatings production in Germany
in 2021 as profits rose
Last year was a banner year      PPG has announced that it                                                technology to drive down-
for Saudi Arabia’s Sahara        will invest more than US$10M                                             stream sustainability, helping
International Petrochemical      (€9M) to expand production of                                            our customers meet their
Co, (Sipchem). Sipchem,          automotive original equipment                                            sustainability goals,” said
which is one of the leading      manufacturer (OEM) coatings at                                           Roald Johannsen, PPG Vice
companies in the Saudi           its site in Weingarten, Germany.                                         President, Automotive OEM
petrochemical sector, saw        Expected to be complete in Q2,                                           Coatings, Europe, Middle East
nearly a 142% leap in its        2022, PPG is constructing a                                              and Africa. “Weingarten is a
share price. A record high       10,000ft2 addition to its existing                                       particularly strategic site due
of SR47.4 (US$12.6) was          facility with a capacity to          basecoat production at its site     to its proximity to several of our
achieved in late October.        produce more than 5000t/yr of        in Valladolid, Spain, and the       key German OEM customers.
Heading into 2022, the           waterborne basecoats.                recently announced expansion        “PPG has a long history of
petrochemical producer               Waterborne technology            of its clearcoat production in      providing paints and coatings to
seems to be off to a good        replaces the solvents found          Erlenbach, Germany. These           help automotive manufacturers
start as it gained 7.5% year     in traditional basecoats with        investments will help PPG lower     protect and beautify vehicles,”
to date, to reach SR45.2 as      distilled water, providing less      its operational carbon footprint    Johannsen said. “These
of January 17.                   odour and improved air quality       in total by more than 1000t/yr of   investments in capabilities to
                                 in the work environment for          CO2 equivalent.                     produce more sustainable
Inkmaker Shanghai                both PPG and its customers.              “This is an important           products, together with our
partners with FFM Asia               This project is part of a        investment to strengthen            focus on coatings for the next
Inkmaker Shanghai, the           series of investments PPG            our production capabilities         generation of electric vehicles,
manufacturer of integrated       is making in its automotive          in Europe and to ensure             will ensure that we continue to
dispensing systems in            OEM coatings production in           that we are leveraging our          create value for our automotive
China for IM Group, has          Europe, including expanding          industry-leading waterborne         customers in the future.”
partnered with Fast & Fluid
Management Asia (FFM
Asia), becoming its new          Solvay to supply Avio with advanced composite
certified channel partner
for China, in an auspicious      and adhesive materials for space exploration
start to 2022. The union—        Solvay and Avio SpA have signed a long-term
that will see FFM Asia’s         agreement for the supply of composite and
renowned POS (Point of           adhesive materials to be used across a range
Sales) tinting solutions         of programmes including the Vega space
business collaborate with        programmes, the European Space Agency’s
Inkmaker’s leading expertise     satellite launch vehicles designed to send
in the coating, paint and ink    payloads into low Earth orbit (LEO).
industries – will be of mutual      Solvay will supply Avio with ablative material,
benefit to both parties as       RTM resins and adhesives. Solvay has a strong
                                                                                        L-R: Luigi Pellegrini & Sergio Colabucci (Avio),
they strengthen their foothold   legacy in the space market and has long
                                                                                        Gerald Perrin, Giuliano Russo & Salvatore
in the Greater China market.     been a leader in ablative materials for space          De Nicola (Solvay)
                                 applications, such as nozzles and exit cones.
IGM appoints Solindis as         Solvay’s products have been used across many              Avio has more than 50 years of history
distribution partner             space launch programmes over the years,                designing, developing, producing and integrating
IGM Resins has announced         thanks to their ability to withstand the extremely     space launchers for placing institutional,
the creation of Solindis, a      high temperatures produced by the rocket               governmental and commercial payloads in earth
new company which will           motor exhaust.                                         orbit through its Vega rocket family.
act as exclusive distributor
for IGM for a large group
of EMEA customers in the
                                 Imerys expands distribution partnership with
energy curing market. Due
to the continuous growth of
                                 WhitChem throughout the UK and Ireland
IGM’s business, under the        Imerys, a world leader in mineral-based speciality        The Imerys portfolio includes a wide range
umbrella of its ‘Go Grow         solutions for industry, and WhitChem, an               of minerals including talc, kaolin, ball clay,
Green’ strategy, it was time     experienced distributor of specialist chemicals,       ground calcium carbonate, precipitated calcium
for IGM to develop a strong      minerals and polymers, have expanded their             carbonate, diatomaceous earth, perlite, mica,
distribution model in EMEA       distribution agreement. WhitChem will represent        leucophyllite and wollastonite.
and Solindis, led by Ruud        all of the Imerys Performance Minerals portfolio,         “We very much look forward to further
Kuijsters and Frans de Wind,     as Imerys’ preferred distributor across the UK         developing our already successful partnership
will be the ideal partner to     and Ireland for the coatings, adhesives, rubber        with Imerys,” said Richard Longley, Sales
drive growth.                    and plastic markets.                                   Director, WhitChem.

                                                       4 PPCJ • February 2022
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                                                               NEWS

BASF to expand European production for                                                                          NEWS IN BRIEF
Hexamethylenediamine and Polyamide 6.6                                                                          New defence coatings
                                                                                                                specification service
BASF has decided to build a new                                                                                 HMG Paints, a leading
hexamethylenediamine (HMD) plant in Chalampé,                                                                   independent UK paint
France. The new plant is set to increase BASF’s                                                                 manufacturer, has
annual HMD production capacity to 260,000t.                                                                     announced a new coating
Production is expected to start in 2024.                                                                        specification service for
Furthermore, BASF will expand its polyamide 6.6                                                                 the defence industry, that
production in Freiburg, Germany starting 2022.                                                                  will allow engineers and
   The investment was announced by                                                                              specifiers to identify and
CEO Martin Brudermüller during a visit by                                                                       select the perfect coating for
French President, Emmanuel Macron to the                                                                        their requirements. Benefits
Chalampé site.                                                                                                  include assistance to quickly
   The planned investments will further expand          in the market,” said Dr Ramkumar Dhruva,                identify Def Stan and NSN
the polyamide 6.6 business that BASF acquired           President of BASF’s Monomers division.                  codes against coatings
from Solvay in 2020. “With this new HMD                     HMD is a precursor used in the production           requirements; service to
plant in Chalampé and the expansion of the              of high-quality polyamide 6.6 plastics and              develop a bespoke solution if
polymerisation in Freiburg, BASF ensures that           coating raw materials. Among other things, these        no Def Stan or NSN number
customers can be reliably supplied with HMD and         products are used in the automotive industry as         is relevant; codification
PA6.6, while also addressing increasing demand          well as in the production of special fibres.            of new NSN numbers;
                                                                                                                and access to coatings

Greek adhesives and sealants                                                                                    manufactured in Britain
                                                                                                                supported with market

producers form industry association                                                                             leading technical support.

On December 8, 2021, representatives of the             Sika Hellas, Kerakoll Hellas, Alchimica Building        Brenntag expands deal
Greek adhesive and sealant industry came                Chemicals, Ravago Hellas S A, Isomat S A                with SI Group for EMEA
together to found the Hellenic Adhesives and            Building Chemicals and Mortars, A Elliniadis S A,       Brenntag, a market leader in
Sealant Cluster (HASC), under the umbrella of the       Vertico, Elastotet S A and Bostik Hellas S A.           chemicals and ingredients
Hellenic Association of Chemical Industries (HACI).         Kristel Ons added: “On behalf of the FEICA          distribution, has announced
   The inaugural meeting focused on the legal           Executive Board, I welcome the Greek members            the renewal and expansion
formalities of the founding of the Association          to our European adhesive and sealant forum              of a distribution agreement
and the election of the first Administrative            of National Associations. I’m looking forward           with performance additives
Committee. Panos Scarlatos, General Director            to a fruitful co-operation and strengthening a          leader SI Group. Brenntag
of HACI, and Kristel Ons, Secretary General of          sustainable future for our industry.”                   has already successfully
FEICA, congratulated the members on their new               Panos Scarlatos on behalf of the Board of           been distributing SI Group’s
association and offered continuing support to           Directors of HACI expressed his thanks to FEICA         plastics solutions products
the Cluster.                                            for the support and added: “It is the right time for    in Europe and Africa.
   HASC currently has 12 members: H B Fuller            adhesives and sealants producers to join FEICA          Now, the contract is being
Greece SAIC, Henkel Hellas SA, Mapei Hellas,            towards the Green Deal ambitious targets.”              expanded to include the
                                                                                                                chemical intermediates

Perstorp acquires GEO’s DMPA business                                                                           and coatings resins of the
                                                                                                                US-based company for the
Perstorp has acquired GEO’s              “Our strategy is to be            offering over the past 20-plus       full Europe, Middle East and
Di-Methylolpropionic Acid            the sustainable solutions             years. The product enables a         Africa region.
[DMPA®] business, further            provider within our focus             technology shift from solvent to
emphasising its commitment           segments, of which resins and         waterborne formulations within       Wacker opens additional
as the sustainable speciality        coatings is one. Additives for        markets such as polyurethane         laboratory in Moscow
solution provider within the         waterborne resins and coatings        dispersions, PUDs and                Wacker has expanded
resins and coatings segment.         technologies are a key area           waterborne alkyds.                   its technical support for
    This acquisition further         for future growth, and we see             GEO will continue to produce     the construction industry
accentuates the company’s            great potential in the market         DMPA exclusively for Perstorp in     with the opening of an
strategic presence in polyurethane   for Bis-MPA™ together with            Allentown, Pennsylvania.             additional laboratory in
and alkyds dispersions – a vital     the acquired DMPA®. This                  CPS Performance Materials,       Moscow. It will focus on
step to becoming a speciality        acquisition will both allow further   the parent company of GEO,           water-repellent silicone
leader in various waterborne         development of our offering and       is a diverse speciality chemical     additives for cement and
coating markets. The acquisition     enable long term investments          company with businesses              concrete, which, when
significantly bolsters Perstorp’s    to safeguard future availability,”    serving multiple end markets         added to cementitious
position within the DMPA             said Jan Secher, President and        including pharmaceuticals,           materials, provide improved
platform, allowing further           CEO of Perstorp Group.                nutrition, speciality coatings and   protection against moisture,
investments into innovation and          Bis-MPA has represented a         dispersants used in a broad          salts and unwanted
additional capacities over time.     key building block in Perstorp’s      range of applications.               chemical reactions.

                                                           5 PPCJ • February 2022
                                                             www.coatings-group.com
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                                                            NEWS
                                                               REPORT

NEWS IN BRIEF                      Archroma underpins presence in
Flint Group secures                Switzerland with new HQ and ‘tech hub’
EcoVadis Silver rating
Flint Group, including             Archroma has announced the                                                   “With our new HWD
all business units within          relocation of its headquarters to                                         corporate headquarters we
its Packaging and its              Pratteln, just outside Basel and                                          are joining a dynamic business
Commercial Publication &           a customised R&D role for its                                             hub,” commented Heike van
Web divisions, has achieved        existing Reinach site.                                                    de Kerkhof, CEO at Archroma.
a Silver status from EcoVadis,         Archroma’s new Haus der                                               “We are excited to refocus our
the world’s largest provider of    Wirtschaft (HWD) headquarters                                             Reinach site as a true ‘tech hub’
business sustainability ratings.   is located in a business hub that   number of corporate services          to provide innovative, sustainable
The company was considered         hosts the Economic Chamber          and teams. With the opening of        solutions and services to our
to be in the top 21% of            Baselland with other companies,     the new HWD headquarters, the         customers to help them increase
companies manufacturing            as well as a fully serviced         Reinach TechCenter, designed          the value of their products.
paints, varnishes and similar      conference and event centre.        to accommodate laboratories           Our science and technology
coatings, including printing       The new offices have been           and technical expert teams, will      expertise, coupled with in depth
inks. It was rated in the          designed to support a smooth        return to its roots with a focus on   market, customer and regulatory
top 9% in the Sustainable          and efficient collaborative work    the global R&D and application        understanding, provide the
Procurement category,              and visitor experience.             development, supporting those         platforms for the creation of safer,
as well as in the top 7%               The move comes after a          of the Archroma Competence            more sustainable chemicals
for Ethics.                        decade of growth at Archroma’s      Centers (CC) which are located        and practices in the industries
                                   TechCenter building in Reinach,     in Switzerland: CC Textile            we serve. With this latest
Longstanding award for             also near Basel, which evolved      Finishing; CC Textile Repellents;     development we are strongly
Indestructible Paint               from being a dedicated technical    CC Paper Coloration; and CC           reaffirming our deep commitment
The UK’s Indestructible            centre to hosting a growing         Paper Whiteness.                      to our Swiss roots and presence.”
Paint Ltd is delighted to
have been recognised by
the Birmingham Chamber             Sun Chemical acquires SAPICI                                              AkzoNobel named
of Commerce as the                 Sun Chemical has acquired           adhesives to better serve this
winner of its prestigious          SAPICI, a global leading            base,” said Mehran Yazdani,           Top Employer
Longstanding Member                company in high-performance         President, Global Packaging           AkzoNobel has been rated as
Award. The presentation            polyurethanes for coatings,         and Advanced Materials,               a European Top Employer by
was made by Steve Allen,           flexible packaging, industrial      Sun Chemical. “SAPICI’s               the Top Employers Institute
Chair of the Birmingham            adhesives and more.                 core competencies in the              following the latest benchmark
Chamber to Indestructible              With SAPICI, Sun Chemical       manufacturing of ultra-low            review. The company was
Paint’s Managing Director,         reinforces its integrated supply    monomer isocyanates-                  recognised in a total of eight
Brian Norton.                      strategy in the packaging           based solutions will allow            countries, with five repeat
                                   market by adding capabilities       Sun Chemical to further               certifications (Brazil, China,
Arkema to double Asian             to develop and produce              address both current and              the Netherlands, the UK and
photocure resins capacity          unique polymers for the entire      future trends in sustainability,      the US) and three new titles
Arkema is to double its UV         portfolio of inks, coatings and     compliance, food contact,             (France, Germany and Sweden).
curable resins production          lamination adhesives.               health and safety – reinforcing       It means AkzoNobel is now
capacity at its Nansha plant           The combined resources          our commitment to                     classed as a European Top
in China. This expansion will      and technologies of DIC/            responsible care.”                    Employer because five of the
support the fast-growing           Sun Chemical and SAPICI                 “By joining forces with           certified countries are in Europe.
demand in Asia for cutting-        will provide a comprehensive        industry leader Sun Chemical,             “I’m very proud that
edge solutions in electronics,     and unique polymer portfolio        our team can utilise their vast       our focus on employee
driven by 5G technology,           for areas such as industrial        resources for the next wave           development, engagement
and in renewable energies.         coatings, elastomers, industrial    of innovation in coatings,            and well-being is continuing
This investment, scheduled         adhesives and sealants.             adhesives, elastomers and             to help our employees bring
to come on stream in the               The acquisition of SAPICI       sealants applications, ultimately     their best selves to work every
second half of 2023, is fully      will transform Sun Chemical         improving the products our            day – despite all the ongoing
aligned with the Group’s           into an integrated player in        customers rely upon daily,” said      challenges,” said Joëlle Boxus,
strategy to develop its            the lamination adhesives            Cristian Furiosi, CEO, SAPICI.        AkzoNobel’s Chief Human
Coating Solutions segment          market, directly owning assets,     “The extensive experience             Resources Officer. “We’re
with high value-added              technologies and resources to       and product portfolio our             making every effort to further
solutions and reinforce            improve the product portfolio.      organisation has in this market,      improve our organisational
its downstream acrylics                “Providing our customers        combined with Sun Chemical            health and ensure that
activities in Asia. It will        with the most effective             and DIC Corporation’s                 everyone feels included and
enable Arkema to grow              solutions on the market is          expertise and complementary           listened to. Receiving eight
its high-performance and           priority number one, and the        products, provide an all-             certifications – three of them for
solvent-free solutions             acquisition of SAPICI enables       encompassing solution to              the first time – suggests we’re
portfolio for UV curing.           innovation in lamination            excite our customers.”                definitely on the right track.”

                                                        6 PPCJ • February 2022
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                                                            NEWS

Heubach and SK Capital close                                                                                NEWS IN BRIEF
acquisition of Clariant Pigments                                                                            Perstorp increases TMP
                                                                                                            production capacity
The Heubach Group, a leading                                          For us, product excellence            Perstorp, the world leader
global producer of pigments and                                       and sustainability are core.          in the production of
SK Capital Partners, a private                                        We are well-positioned to             Trimethylolpropane (TMP),
investment firm focused on the                                        create significant value for          has ramped up the capacity
speciality materials, chemicals                                       our customers and business            to meet growing demand
and pharmaceuticals sectors,                                          partners across the many              from the European market.
have completed the acquisition                                        industries we serve.”                 Common TMP applications
of Clariant’s Global Colorants                                           The Heubach Group                  include the use in saturated
Business. The combined             Stefan Doboczky, the new CEO       appointed Stefan Doboczky             polyesters for coil coatings,
business will operate under        of the Heubach Group               as CEO, effective January 10,         polyurethanes for coatings
the Heubach brand, creating a                                         2022. He joins the company            and elastomers, acrylic
global pigment technology and      manufacturing facilities across    having most recently served           acid esters for radiation
industry leader.                   Europe, the Americas, Asia and     as CEO of Lenzing AG, a               curing, esters for synthetic
   The newly combined              Africa, employing approximately    global leader of cellulosic fibres    lubricants, and for the
Heubach Group is a global          3000 people. The headquarters      and biochemicals. Prior to            surface treatment of
provider of comprehensive          of the Heubach Group will be       Lenzing, he was a member of           pigments. The expansion
colour solutions, supplying        established in Vienna, Austria.    the Managing Board of Royal           development takes place
a broad portfolio of organic,          Johann Heubach of the          DSM, the Dutch Life Science           in Vercelli, Italy. Perstorp’s
inorganic and anti-corrosive       Heubach Group, stated: “The        and Material Science Group,           own TMP production
pigments, pigment preparations,    new Heubach is a world-            where he spent almost two             sites are located in
dyes, colourants and speciality    class organisation with great      decades in various general            China, Sweden and the
materials. It operates from 19     talent, technology and assets.     management roles.                     United States.

Sika expands A&S production in India                                                                        Nouryon produces organic
                                                                                                            peroxide at Tianjin site
Sika has announced it is           On its three new production        Vehicle manufacturers and             Nouryon has started
opening a new technology           lines, Sika mainly manufactures    automotive suppliers in               full-scale production
centre and manufacturing plant     products for the transportation,   particular have settled in Pune       at its world-class and
for high-quality adhesives and     construction and renewable         and nearby in the state of            innovative organic peroxide
sealants in Pune, a city in the    energy sectors.                    Maharashtra. The new Sika             greenfield site in Tianjin,
federal state of Maharashtra.          Situated 100km south           site at one of the region’s key       China to support the
Developments at the new R&D        east of the port of Mumbai,        logistics hubs is ideally located     increasing demand from
laboratories and the production    Pune is one of India’s main        in terms of transportation            packaging, paints and
in the new plant are aimed at      industrial centres. The city and   infrastructure, ensuring              coatings, and construction
meeting the rapidly growing        its agglomeration represent        rapid and reliable deliveries         customers in the region.
demand in the Indian market.       more than eight million people.    to customers.                         The site consists of three
                                                                                                            manufacturing facilities

Hempel announces new Executive Group                                                                        and is equipped with the
                                                                                                            latest technology for safety,
Management to lead new way of working                                                                       energy efficiency and
                                                                                                            environmental protection.
Hempel has announced a new                                            and Chief People & Culture            Nouryon product brands
                                                  Lars Petersson
Executive Group Management                                            Officer and EVP, Pernille Fritz       produced at the site include
to lead its growth journey to                                         Vilhelmsen is at the helm of          Trigonox and Perkadox
double Hempel by 2025. In a                                           People & Culture. Strategy &          organic peroxides as well
new company structure, the                                            Transformation is also joining        as Butanox methyl ethyl
organisation will be able to get                                      the EGM, headed up by VP,             ketone peroxide.
even closer to its customers.                                         René Overgaard Jensen.
    “My new leadership team                                               The new Executive Group           Zeppelin Systems GmbH
will lead a new way of working     into key segments: Marine, led     Management replaces the               appoints new MD
at Hempel – we have organised      by EVP, Alexander Enström;         former matrix structure with a        The Zeppelin Group has
our business in an even more       Energy & Infrastructure, led       two-tier leadership, including an     appointed Dr Markus Vöge
customer-focused structure,        by EVP, Michael Hansen;            Executive Management Board            as Managing Director of
which will unleash potential and   and Decorative, led by EVP,        and an Operational Management         Zeppelin Systems GmbH
energy from the organisation to    Joe Devitt.                        Board. The new way of working         with effect from February
deliver on our Double Impact          COO and EVP, Katarina           gives Hempel a simpler                1, 2022. With a PhD in
strategy,” said Lars Petersson,    Lindström, now heads up            organisational structure, with        engineering, he will also
Group President & CEO.             Technology & Operations;           clearer roles and responsibilities,   take over the management
    Hempel’s commercial            CFO and EVP, Lars Dollerup         enabling future growth and            of the Plant Engineering
activities are now organised       oversees Finance & Digital;        closer alignment with customers.      strategic business unit.

                                                       7 PPCJ • February 2022
                                                         www.coatings-group.com
DIARY | REPORT
                                                       SECTION   NEWS

DIARY                             EU round-up: EFSA
March 17-19, 2022
                                  cracks down on BPA
Paintistanbul & Turkcoat          The European Food Safety Authority (EFSA) has           • ECHA has updated its toxicity testing guidance for
Istanbul Expo Center, Turkey      declared it will impose an effective European Union     chemical manufacturers, including those within the
www.turkcoat-paintistanbul.com    (EU) ban on using bisphenol A (BPA) to make food        paint and coating industry. The new advice helps
                                  contact materials coatings. It is consulting on plans   companies ensure reliable results while avoiding
March 29-31, 2022                 to reduce a tolerable daily intake by consumers of      repeated animal tests. “Toxicity tests should be
Eurocoat 2022                     BPA to almost zero – 0.04 nanograms per kilogram        done at an appropriately high dose level, in line with
Paris Expo, France                of body weight per day. This follows scientific         the corresponding OECD test guideline,” said an
www.eurocoat-expo.com             studies from 2013-18 indicating BPA can harm            ECHA note. https://echa.europa.eu/-/new-advice-
                                  the immune system, increasing ‘T-helper’ white          for-determining-dose-levels-in-toxicity-testing
April 05-07, 2022                 blood cells which when raised can promote allergic      • EU exporters have reported an 8% increase
American Coatings Show            lung inflammation. https://www.efsa.europa.eu/          during 2020 of exports of chemicals that are
ICC, Indianapolis, USA            en/news/bisphenol-efsa-draft-opinion-proposes-          banned or restricted in the EU, because of
www.american-coatings-show.com    owering-tolerable-daily-intake                          environmental health concerns. There has been
                                  • This comes as the EU agency is developing a           a 47% increase in exports of solvent ingredient
April 26-29, 2022                 new assessment system for considering the risks         ethylene dichloride (1,2-dichloroethane) in
PaintExpo                         posed by plasticisers, notably phthalates, used         2020, for instance. https://echa.europa.eu/
Karlsruhe, Germany                in food contact materials and how potentially           documents/10162/1244645/pic_article_10-2020_
www.paintexpo.de                  unhealthy substances can be replaced by                 en.pdf/7a756e7e-af68-250d-6cad-
                                  alternatives. https://www.efsa.europa.eu/en/news/       41769a1fcf37?t=1639388055700
May 04-06, 2022                   phthalates-draft-opinion-and-exposure-protocol-         • ECHA’s Enforcement Forum have found that
Coatings For Africa               open-public-consultation                                chemicals sold online often breach at least one
Sandton Convention Centre         • The European Commission has cleared                   requirement under EU chemicals legislation.
Johannesburg, South Africa        a wood preservative biocidal product                    Inspections of nearly 6000 chemical-containing
www.coatingsforafrica.com         Teknol Aqua 1411-01 as being safe for the               products have found that 78% were in some
                                  environment, despite containing low levels              way non-compliant with chemical control
May 26-28, 2022                   of the chemicals ctamethylcyclotetrasiloxane            system REACH as well as the EU’s classification,
PAINTINDIA 2022                   (D4), decamethylcyclopentasiloxane (D5) and             labelling and packaging (CLP) and the biocidal
Bombay Exhibition Centre, India   dodecamethylcyclohexasiloxane (D6), which               products (BPR) regulations. https://echa.europa.
www.paintindia.in                 has raised some concern among scientists.               eu/documents/10162/17088/project_report_
                                  https://eur-lex.europa.eu/legal-content/EN/TXT/         ref-8_en.pdf/ccf2c453-da0e-c185-908e-
June 07-08, 2022                  HTML/?uri=CELEX:32021D2166&from=EN                      3a0343b25802?t=1638885422475
Surfex
Coventry Building Society Arena
Coventry, UK
                                   People
www.surfex.co.uk
                                                                        positions in Dow Chemical,          has more than 25 years of
                                                                        Valspar and Sherwin Williams.       experience in operational
June 14-16, 2022
Middle East Coatings Show                                               His knowledge and connection        management roles, specialising
DWTC, Dubai, UAE                                                        to China/Asia-Pacific markets       in interim management.
www.middleeastcoatingsshow.com                                          along with his extensive
                                                                        skills synergise perfectly with     New CTO at Arkema
June 21-23, 2022                                                        ChemQuest’s expanding               Effective from January 1,
ABRAFATI 2022                                                           global influence and laboratory     2022, Armand Ajdari joined
São Paulo Expo, Brazil                                                  capabilities through both           Arkema as Chief Technology
www.abrafatishow.com.br                                                 ChemQuest Technical Institute       Officer. Reporting to Thierry
                                                                        and ChemQuest Powder                Le Hénaff, Chairman and
July 12-14, 2022                   ChemQuest Group appoints             Coating Research.                   CEO, he is also a member
ETCC                               new Vice President                                                       of the Group management
Krakow, Poland                     The ChemQuest Group has              Change of CFO at Arxada             committee. Since 2017, he
www.ettc2022.org                   announced the addition of            Arxada has announced that Ib        has been Executive Vice
                                   Dr Robert G. Duan as a Vice          Jensen, Chief Financial Officer     President R&D of the Saint-
September 14-16, 2022              President. Dr Duan joins             (CFO), has left the Company as      Gobain group.
Asia Pacific Coatings Show         ChemQuest with more than             of January 31 to pursue another
Balai Sidang Jakarta Convention    25 years of experience, both         opportunity. His successor is
Center, Jakarta, Indonesia         domestically and internationally,    expected to join the Company
www.asiapacificcoatingsshow.com    across coatings, polymers,           in April this year and will be
                                   research & development, M&A,         announced in due course.
December 05-07, 2022               technology management, and           Jan Kantowsky will serve as
The Coatings Summit 2022           manufacturing efficiency. He         interim CFO until the permanent
Miami, FL, USA
                                   has held senior R&D leadership       successor is in place. Jan
www.european-coatings.com

                                                        8 PPCJ • February 2022
                                                         www.coatings-group.com
US VIEWPOINT

                                                Michael Rezai, a Senior Consultant at the ChemQuest Group,
                                                reports on the current state of the chemical industry in the US and his
                                                predictions for the paint and coatings sector for the coming year

                                                Paints & coatings 2022:
                                                Where to from here?

A
        lmost every product we use on           the US is expected to grow slightly yr-            • Many are expecting only a moderate
        a daily basis is influenced by the      on-yr, driven by COVID vaccine tailwinds,            restraint from Omicron, largely due to
        chemical industry. It’s no secret       pent-up demand and fiscal spending.                  some new restrictions on travel and
that COVID-19 wreaked havoc on the              Also, consumer-related manufacturing,                some increase in consumer anxiety.
chemical industry. Chemical demand              factory parts/machines and energy related          • Economic activity will come from
was shattered throughout end markets.           spending should also be strong in 2022.              elevated household savings, low interest
Global supply networks were disrupted.                                                               rates and a sturdy housing market.
Chemical company stock prices took              n   US ECONOMY                                     • The US infrastructure plan should add
enormous losses. And the competitive                                                                 0.1% of GDP and the “Build Back Better”
order of chemicals producers shifted            The US economy still has (at least) another          plan could add another 0.6% of GDP.
almost immediately.                             pair of challenges in 2022 before returning        • Business spending is on the rise, with
    Global supply disruptions, rolling          to a full bill of health – the Omicron variant,      non-residential investment surpassing
COVID-19 restrictions, the February 2021        and the inflation pressures arising from             pre-pandemic levels.
deep freeze in the United States along with     both supply challenges and exploding               • The unemployment rate is projected
Hurricane Ida in August, as well as container   global demand. However, fundamentally,               to fall further from 4.2% in November
shortages and logistics constraints causing     many still hold an upbeat view that the              to pre-pandemic levels of 3.5% by
extended lead times, have resulted in basic     US economy will stay strong in the face of           late 2022.
commodity shortages all the way down            these challenges, and we look for above-
the supply chain to finished goods. The         trend growth again in the coming year, with       n   US CHEMICAL INDUSTRY
chemical industry has been shaken to            lingering strength even out into 2023.
its core.                                           Some encouraging indicators to note:          The chemical industry is recovering as
    In November, US industrial production         • US real GDP will likely rebound at a          manufacturing activity resumes and
held steady on the month at +5.3% yr-on-yr.          strong pace at the end of 2021 and a
Looking ahead, industrial production in              solid 3.5% growth in 2022 is expected.

                                                                                                  Industrial production growth for the US and
                                                                                                  China is stable. Source: BMO Capital Markets,
                                                                                                  Trading Economics

                                                                                                  Global Industrial Production Forecast
Demand impact across chemicals end-markets. Source: Strategy&, WEF                                (Annual). Source: Bloomberg

                                                         10 PPCJ • February 2022
                                                           www.coatings-group.com
SECTION REPORT
                                                          US VIEWPOINT

stockpiles are rebuilt on the backs of           continuously been the caveat to otherwise      low mortgage rates and remote work and
a strengthening US economy, and it               excellent sales growth for speciality          learning led to a geographic dispersion
is positioned to accelerate as strong            coatings makers during 2021. Normalising       of households.
consumer demand and restocking                   customer behaviour and supply chain
drive growth. This is reflected in               stabilisation during 2022 should result in
production volume:                               significant sales tailwinds when inventory
                                                 replenishment and investment in these end
 % Change in production volume                   markets restart.
 Industry segment 2020       2021 2022 2023          Light vehicles are an important market
                                                 for chemistry, with more than US$3200 in
 Total chemicals    (3.5)    1.4   4.3   2.1
 (excl.                                          chemistry per vehicle. In 2020, global car
 pharmaceuticals)                                production fell, with supply chain lockdowns
 Basic chemicals    0.5      1.8   5.1   2.6
                                                 leading to order cancellations and, once
                                                 production began, a halt in assembly due       US housing starts expected ~7% higher yr-
 Speciality         (15.0)   2.6   4.1   1.6                                                    on-yr in 2022 and ~30% above pre-pandemic
                                                 to semiconductor manufacturers’ inability to
 chemicals                                                                                      2019. Source: Evercore, Federal Reserve
                                                 satisfy demand.
 Plastic resins     5.6      0.4   6.0   3.0
Source: ACC                                                                                         The US housing market is expected to
                                                                                                continue to be robust in 2022, driven by
    Furthermore, by 2025, chemical sector                                                       strong underlying fundamentals that include
capital spending in the US is predicted to                                                      favourable 30-year fixed mortgage rates in
reach US$37.3bn, about three times what                                                         the ~3% range, improving housing starts
it was at the start of the last cycle in 2010.                                                  and existing home sales, and low housing
Investment for bulk petrochemical and                                                           inventory in the US.
organic intermediates, along with that for                                                          It’s also worth noting the effects of
plastic resins, will dominate.                                                                  the country’s two largest demographics:
                                                 Global SAAR expected to grow.                  baby boomers (72M people) who are
                                                 Source: Evercore, Bloomberg                    ageing in place and boosting renovation
                                                                                                spending, and millennials (73M people),
                                                     Vehicle sales in the US, which were        who are starting families and driving
                                                 17.0M in 2019, increased to 15.3M in 2021,     demand for entry-level houses. Demand for
                                                 up from 14.5M in 2020 and are forecast         homeownership is likely to remain robust as
                                                 to reach 16.0M in 2022. Pent-up demand,        the huge millennial generation continues to
                                                 return to work, pre-COVID commuting and        move through the prime ages for forming
                                                 favourable borrowing rates too benefit auto    households and buying homes. Having
                                                 sales. Auto refinish should also continue      said that, housing inventory is low, and
Chemical industry capital spending.
                                                 to steadily improve towards pre-COVID          supply chain challenges are limiting the
Chemical industry capital spending
likely fell by 14% in 2020 where capacity        levels. Although new COVID variants and        amount of inventory that can be brought
utilisation fell to 78% and will experience      a reversal of reopening trends have the        onto the market, therefore low inventory
only a modest 4.8% gain in 2021. Growth          potential to be significant headwind to the    levels may serve to be a key barrier to
will remain moderate in subsequent years         refinish end market.                           housing development in 2022, though the
but could pick up afterward if the business          Various mobility measures that are         subsiding pandemic and resumption of
environment proves supportive.                   tracked continue to trend toward full          more normal activity should encourage
Source: American Chemistry Council
                                                 recovery: US vehicle miles travelled during    more owners to put their homes on the
   The new capacity started up recently          the summer months came in just a few           market. An expanded supply of for-sale
and is slated to come online in the years        percentage points below pre-pandemic           homes would help to slow the meteoric
ahead puts the US in a top competitive           2019 levels, and a near complete recovery      rise in house prices, but new construction
position for the foreseeable future. More        is expected during 2022.                       also has to pick up substantially to keep
than half of the investments announced                                                          homeownership relatively affordable.
since 2010 have been completed or                                                                   The repaint and remodel end market is
currently are under construction. As the                                                        predicted to be strong in 2022, primarily
global economy expands and key-end use                                                          driven by:
markets strengthen, we expect growth                                                              • An ageing housing stock: the median
in basic chemicals as well as most other                                                             age of a home in the US is ~40
chemical segments through 2025.                                                                      years old.
                                                                                                  • Change in US home values; home
n   RECENT END MARKET                                                                                price appreciation gives homeowners
    HEADWINDS ARE POISED                                                                             confidence to remodel, even more so in
    TO BECOME TAILWINDS                                                                              a favourable interest rate environment.
                                                 US vehicle miles travelled have nearly
                                                                                                  • Strong macro fundamentals.
                                                 recovered to pre-pandemic levels.
The coatings industry has also experienced       Source: Evercore, Bloomberg                        Unique to the industry, Sherwin Williams,
a structural face-change. Sluggish recovery                                                     and other coatings manufacturers with
from end markets that were significantly            Housing/Construction is also a large        direct exposure to consumer (contractor/
hit by pandemic limitations and those            consumer of chemistry. Housing starts          PRO/DIY) are well positioned to take
limited by supply chain interruptions has        rose during the pandemic as historically       advantage of the favourable housing trends

                                                         11 PPCJ • February 2022
                                                           www.coatings-group.com
SECTION REPORT
                                                         US VIEWPOINT

in 2022. With a controlled distribution          This year, the American Coatings Show & Conference is returning
model, the (company-owned) paint stores          to Indianapolis, from April 5-7. Here are some highlights of what
allow better control of pricing and inventory.   visitors can expect to see at the Indiana Convention Center
Also, the stores offer higher customer focus

                                                 ACS returns to
through real-time feedback and direct
relationship with end users.

                                                 Indianapolis
n   DIY ACTIVITY

The pandemic was a boon for the
remodelling industry by forcing a variety

                                                 R
of housing and lifestyle changes that                   egistration is now open for the
encourage improvement spending. Many                    American Coatings Show and
owners found themselves unexpectedly in                 Conference 2022 (ACS/ACC),
need of greater space to work from home,         which will be held April 5-7 at the Indiana
assist their children with remote learning       Convention Center in Indianapolis, Indiana.
and maintain social distance. Others                 For the first time, the ACS will run
welcomed aged parents, adult children, or        simultaneously with the ACC, offering show
caretakers into their homes, whether on          and conference attendees more networking
purpose or by accident.                          and business opportunities.                        Speakers from major players within
     However, this momentum has slowed,              “We look forward to re-engaging with       the coatings industry include: allnex;
and consumer DIY activity has reverted,          the industry after such a long hiatus. The     Evonik; BYK; Arkema; Eastman; BASF;
pointing to a slowdown relative to the           2022 show and conference will build on         The Chemours Company; Huntsman;
initial uptick in the housing market, but        the event’s established reputation as a        Michelman; Dow Chemical Company;
still well above pre-pandemic levels of          high-level learning experience and platform    the impressive list of companies goes on.
remodelling activity.                            for showcasing industry products. By giving    Other highlights include the poster session,
     For the US Coatings industry, underlying    conference attendees more opportunities        the Pre-Conference Tutorials, which are
demand looks to have remained quite              to spend time at the exhibition, we            designed to quickly bring newcomers up to
healthy, and supportive of solid growth          are offering them a more integrated            speed on current technology and refresh
through 2022. Residential leads are              experience. In that same vein, exhibitors      what experts already know and the plenary
comping positive yr-on-yr in Nov/Dec for         will have more of an opportunity to interact   session, where the prestigious American
pro painters, extending project backlogs         with this segment of the audience than         Coatings Award will be presented for the
that look up 8% yr-on-yr to close 2021           before,” said Cheryl Matthews, VP of           most outstanding technical presentation at
(Source: Cleveland Research). We also            Events and Expositions for the American        the conference.
see a constructive outlook for commercial        Coatings Association.                              ACS 2022 attendees can look forward
jobs despite the recent COVID-variant                                                           to the same educational, business and
challenges. Commercial leads are up              n   COMPREHENSIVE CONFERENCE                   social opportunities from years past,
double digit over the last three months                                                         such as Product Presentations, exhibitor
and job growth is expected to rise 10%           Featuring more than 90 technical               demonstrations, the Career Center and
in 2022, driven specifically by strength         presentations, an extended Poster              the Fun Run. The third ACS Fun Run takes
in the healthcare, retail, government and        Session and 10 pre-conference tutorials,       place on Wednesday, April 6 at 7.15am on
warehouse verticals. Industrial segments         the ACC attracts more than 1000                the start line and gives runners and walkers
expect 10% increase in 2022 over 2021,           industry professionals seeking to expand       the chance to enjoy a 5K route featuring
where industrial order backlogs are nearly       their knowledge of the latest trends           some of Indianapolis’ most picturesque
30% higher. Overall, Pro paint demand            and research results from academia,            sights, including the city’s famous Central
looks solid into 2022.                           government and industry.                       Canal and the River Promenade at White
                                        PPCJ         Kicking off the conference is keynote      River State Park. Proceeds from the
                                                 speaker Chris Killian, PhD, Senior Vice        race support student participation in
                                                 President and Chief Technology Officer         future AC Conferences. You can register
                                                 at Eastman, who will deliver the keynote       either online beforehand or on-site at the
                                                 address entitled, “The Role of Innovation      registration counter.
                                                 in the Coatings Industry When Every Color          For the first time in 2022 the ACS will
                                                 Must be Green.”                                also feature a Powder Coatings Pavilion.
                                                                                                    For more information, please visit:
                                                                                                www.american-coatings-show.com
 Author: Michael Rezai currently serves as
 a Senior Consultant at The ChemQuest
 Group and has been with the firm since
 2016. He has extensive experience covering
 the global speciality chemicals market and
 specifically M&A activity within the chemical
 industry. Before ChemQuest, Michael was a
 Purchasing Manager at Valeo SA, a tier 1 auto
 part supplier.

                                                         12 PPCJ • February 2022
                                                           www.coatings-group.com
BUSINESS
                                                       SECTION MATTERS
                                                               REPORT

                                                In his first column this year, Terry Knowles turns his attention
                                                to biocides, antimicrobial coatings and powders

                                                Keeping it clean
A
         new broom sweeps clean, as the            view to targeting new developments is       is attributed to the product’s ability
         old saying goes, and as 2022              expected to continue.                       to modify the surface of a material by
         sweeps in I’m starting off my           • Developed economies with stricter           bringing physical, chemical, or biological
columns with a clean theme as this one             legislation and environmental               characteristics different from the ones
offers up material on biocides and anti-           regulations in the USA and the EU are       originally found on the surface of a material.
microbial coatings. A fresh title on biocides      expected to offer lucrative opportunities   Such modifications are usually made to
is especially relevant as the biocides             for eco-friendly and bio-based goods.       solid materials, but it is possible to find
segment of the chemical industry has just                                                      examples of the modification to the surface
seen some major rearrangements in the                                                          of specific liquids. The modification can
form of Lanxess/IFF and Troy/Arxada, as                                                        be made by different methods with a view
referenced in my annual M&A review this                                                        of altering a wide range of characteristics
month. It’s also a time of great opportunity                                                   of the surface, such as roughness,
for industry since biocides are coming                                                         hydrophilicity, surface charge, surface
under increased scrutiny, while at the same                                                    energy and biocompatibility.
time possibilities in sustainably-produced                                                         As a result of the global COVID-19
biocides may beckon.                                                                           pandemic, the demand for various
    According to the headline findings of a                                                    pharmaceutical products, disinfectants,
new study from Polaris Market Research                                                         and sanitisers has increased. This, in turn,
entitled Biocides Market Size & Share,                                                         is driving the demand for anti-microbial
Global Industry Report 2021-2028, the                                                          coatings in medical device applications. In
global biocides market was valued at                                                           fact, medical device demand is expected
some US$11.13bn in 2020 and should              Global biocide market by region, 2020 (%).     to grow faster than the sanitary facilities &
grow at a CAGR of 3.8% up until 2028,           Source: Polaris Market Research                kitchen and air conditioning & ventilation
when it should be valued at approximately                                                      systems application segments. As seen
US$14.81bn. Continuous investments              n   ANTI-MICROBIAL COATINGS                    from the chart, medical devices account
in R&D, the production of synergistic                                                          for the largest part of the market at 44%,
chemistries for product diversification,        The global anti-microbial coatings market      with these two other categories taking
improved efficiency, innovation, and            size was valued at US$8.1bn in 2020            15% each, so that between all of them
application extension contribute to the         and should grow at a CAGR of 13.1%             they account for nearly three-quarters of
market’s growth.                                from 2021 to 2028. Growing concerns            all use, globally.
  • Paints and coatings dominate the            regarding cleanliness in various industries
     market for biocides because of their       have generated rising product demand,
     vulnerability to airborne and waterborne   prompting further rapid development
     microbial pollutants, as well their        of the global market. These are the
     proximity to mass processing and           top-level findings and forecasts from a
     storage systems.                           new study from Grand View Research
  • Asia Pacific is the most prominent          entitled Antimicrobial Coatings Market
     region for the biocides sector globally    Size, Share & Trends Analysis Report
     (with 37% of consumption as gleaned        By Product (Surface Modifications &
     from the chart), but in this region the    Coatings, Antimicrobial Powder Coatings),
     emphasis is placed on water treatment      By Application (Construction, Medical
     as opposed to paint and coatings use.      Devices), and Segment Forecasts, 2021
  • New regulations and new product             – 2028.                                        Global antimicrobial coating market by
     development will be among the key              The surface modifications and coatings     application, 2020 (%).
                                                                                               Source: Grand View Research
     drivers for the biocides segment. To       product segment leads the global market
     this end, the trend towards industry       and accounts for more than 53% share             Rising concerns regarding the growing
     acquisitions and partnerships with a       of the global revenue. This high share         cases of hospital-acquired infections (HAIs)

                                                        13 PPCJ • February 2022
                                                           www.coatings-group.com
SECTION MATTERS
                                                       BUSINESS REPORT

are also an important factor boosting            growing number of consumer goods                      growth over the forecast period.
the overall industry growth. Furthermore,        companies in India, China and Singapore               Growing automobile production in
doctors prefer using anti-microbial coatings     looks like it will fuel market development in         the USA, Mexico, Argentina, Brazil,
over disinfectants and powerful cleaning         the near future.                                      South Africa, Indonesia and China
agents as these products help in curbing            A rise in automobile production and a              should drive demand for automotive
the spread of germs.                             surge in demand for medical devices will              accessories. In addition, growth in
    The formation of biofilm on orthopaedic      drive market growth in developing nations             demand for automobiles in all of these
implant surfaces is one of the major             including India, China, Brazil and Mexico             countries, along with Malaysia, will aid
problems for patient prognosis and               over the forecast period. Further still, high         further growth.
increases the overall cost associated with       product uptake in the furniture sector on          • Asia Pacific was the largest market in
patient treatment. The use of surface            account of their excellent performance,               2020 and accounted for 39% of global
modifications in this area can help in           low operational costs, colour availability            powder coatings sales. The positive
delivering anti-microbial benefits to the        and customisation potential (such as anti-            outlook for the construction industries
implant devices. Owing to a unique               corrosion and anti-bacterial functions), will         of India, China, South Korea, Japan,
array of properties, such as surface             stimulate market growth.                              Malaysia, Vietnam and Indonesia is
adhesion prevention, anti-microbial-               • Polyester resins accounted for 28% of             expected to promote the usage of
eluting, bactericidal and osseointegration           the volume share in 2020 on account               powder coatings.
promotion, the surface modifications and             of the beneficial properties of polyester,     • Favourable government regulations
coatings segment is expected to account              such as quick drying, chemical                    with an objective to generate
for the maximum revenue share by 2028.               resistance, temperature resistance,               investments from FDI and public-
    Anti-microbial powder coatings can be            abrasion resistance and surface                   private partnerships will fuel market
categorised into silver, copper and others.          protection. A surge in product demand             development over the forecast period.
Silver boasts the greatest consumption               in applications including door handles,          Europe was the second-largest market,
among all these products. Inorganic silver           radiator grills, wheel rims, bumpers,        in terms of volume, in 2020. Surging
anti-microbial coating systems based on              bicycles and metallic structural             automobile production in Germany,
silver salts, colloidal silver, silver zeolite       components will propel the segment’s         Hungary, Romania, Austria and the UK
or ion exchange resins, complex glasses              growth over the forecast period.             looks set to drive the product demand.
containing metal ions, and nanosilver              • Epoxy-polyester (hybrid) resin types         However, the market may witness sluggish
have all demonstrated high demand in the             should witness the fastest CAGR over         growth on the grounds of maturity and
healthcare industry.                                 the forecast period on account of            reduced consumer spending in the EU.
                                                     their properties, such as toughness,             The global market is fragmented as the
n   TAKING THE POWDERS!                              flexibility, weatherability and low cost     top industry players collectively accounted
                                                     as compared to other coatings. These         for 40% of the overall share.
That leads me to introduce information               products are mainly used for interior            Fluctuating prices and raw material
on a separate report covering powder                 applications such as furniture coatings.     shortages are potential threats to market
coatings from the same company, which              • The consumer goods application               growth, as they result in higher production
is Powder Coatings Market Size, Share                segment led the global market in             costs, thereby undermining profit.
& Trends Analysis Report By Resin                    2020, accounting for 24% of the overall                                              PPCJ
(Polyester, Epoxy-polyester), By Application         volume share. The segment is expected
(Consumer Goods, Automotive), By Region              to witness significant growth over the         Author: Dr Terry Knowles holds two
(APAC, Europe), and Segment Forecasts,               forecast period.                               degrees in Chemistry from the University of
2021 – 2028.                                       • Growing purchasing power, higher               Surrey in England. He has worked as a writer
    The global powder coatings market size           standards of living and rapid                  and editor for the paint and raw material
was valued at US$11.9bn in 2020 and is               urbanisation are expected to drive             sectors for more than 25 years. Terry has
expected to expand at a CAGR of 7.2%.                the consumer goods sector. Rising              been the author of many reports for the
The emerging economies of the Asia Pacific           demand for domestic appliances in              paints and coatings sector and continues
and MEA regions have witnessed strong                Asia will boost the product demand in          to be a regular freelance contributor to a
growth in non-residential sectors including          the coming years.                              number of coatings journals. He can be
consumer goods, IT, telecoms and retail            • The automotive application segment             contacted at paintwriter@gmail.com
resulting in their rising consumption. The           is expected to witness the fastest

ECHA adds four more hazardous chemicals to Candidate List
As of January 17, 2022, ECHA has added           covering any of the individual isomers and/          Importers and producers of articles have
four hazardous chemicals to its Candidate        or combinations thereof (4-MBC)) is used         to notify ECHA if their article contains a
List of substances of very high concern.         in cosmetics and has been added as it has        Candidate List substance within six months
    Two have been included because               hormone-disrupting properties in humans.         from the date it has been included in the list.
they negatively affect fertility. These are:         The fourth S-(tricyclo(5.2.1.02,6)deca-      Suppliers of substances on the Candidate
6,6’-di-tert-butyl-2,2’-methylenedi-p-           3-en-8(or 9)-yl O-(isopropyl or isobutyl or      List (supplied either on their own or in
cresol, which is used in adhesives, inks,        2-ethylhexyl) O-(isopropyl or isobutyl or        mixtures) have to provide their customers
fuels, rubbers and lubricants; and tris(2-       2-ethylhexyl) phosphorodithioate) is used        with a safety data sheet. The Candidate
methoxyethoxy)vinylsilane, which is used         in lubricants and greases and has been           List of substances of very high concern
in sealants, plastics and rubbers. The           added as it is persistent, bioaccumulative       now has 223 entries – some of these cover
third ((±)-1,7,7-trimethyl-3-[(4-methylphenyl)   and toxic, and therefore harmful for             groups of chemicals so the overall number
methylene]bicyclo[2.2.1]heptan-2-one             the environment.                                 of impacted chemicals is higher.

                                                         14 PPCJ • February 2022
                                                           www.coatings-group.com
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