Adhesives & sealants market update: between the economy and increased competition, cost pressures and environmental hurdles, adhesives and sealant manufacturers look to acquisitions to boost their business.
Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation . Pricing pressures. Tougher environmental regulations. Continual customer requests to do it better, faster and cheaper. This is the lament of adhesives and sealant Sealant
A thin plastic substance that is painted over teeth as an anti-cavity measure to seal out food particles and acids produced by bacteria.
Mentioned in: Tooth Decay
see bone sealant. manufacturers worldwide. But these companies don't expect you to feel sorry for them. They know that most companies in the manufacturing world are singing a similar song.
"The issues facing adhesives companies today are common to many facets of the manufacturing world," said Nick Gutwein, adhesives and sealants vice president and worldwide business director for Rohm and Haas Rohm and Haas Company (NYSE: ROH), a Philadelphia, Pennsylvania based company, manufactures miscellaneous materials. A Fortune 500 Company, Rohm and Haas employs more than 17,000 people in 27 countries. The annual sales revenue of Rohm and Haas stands at about USD 8.2 billion. Company. "Trends of globalization and industry consolidation throughout the value chain--from raw material supplier to retailer--as well as environmental awareness and increasing demand for high-speed production of high performance products, are daily influences in our operations and crafting of business strategies."
Paul Haelg, executive vice president, adhesives, Forbo Group, also noted the similar climate in which his company is operating. Slow economic growth in main markets like the U.S. and Europe, overcapacities, and consequently price pressure, as well as uncertainty about development of raw materials were some of the issues cited by Mr. Haelg. Many companies react in plant closures and cost cutting. Forbo uses this period of downturn for a major strategic expansion of the business."
That same strategy has been in use across the adhesives and sealants industry. Based on recent transactions, leaders in the marketplace are spending money in order to make money. Companies such as Rohm and Haas, Forbo and Quest Specialty Chemicals have completed deals aimed at increasing their operations in key geographical areas and product segments they contend will bolster their business.
M&A Activities Continue
In April, Forbo, based in Eglisau/Zurich, Switzerland, acquired the Swift adhesives business from Reichhold Inc. The $210 million purchase gave Forbo adhesives activities for industrial applications valued at annual sales of more than $240 million. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent"
above all, most especially , the accord gives Forbo a greater presence in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , as more than half of Swift's sales come from this continent.
"It is Forbo's corporate strategy to develop--alongside the flooring adhesive business--a global industrial adhesive business," said Mr. Haelg. "Swift is very complementary to the Forbo business, both in terms of geography as well as market segments. It provides us with a global platform to multiply our strong market niche positions and adds the critical mass to operate cost efficiently," he added.
While Forbo was looking to expand its adhesives business, another leader in the marketplace has decided to fine-tune its operations. As part of a strategy of reducing local brands and concentrating more on international brands, Henkel Loctite Adesivi Srl, an Italian operation of Henkel, has announced plans to sell the Bostik brand to Misal Arexons SpA. In the agreement--inked on March 27 in Milan--the Bostik brand will be transferred to Misal Arexons, effective July 1.
"This acquisition constitutes the prerequisite for a significant expansion of our presence in the adhesive and sealant sector and will contribute to the attainment of important growth objectives," said Massimo Laccisaglia, managing director of Misal Arexons.
Henkel Loctite Adesivi is not exiting the Italian market; it will maintain its presence in the adhesives and sealant market with other brands. "For Henkel the sale of the Bostik brand represents an important step towards the process of standardizing and consolidating international brands to allow for a greater focus on the future development of existing strategic businesses," said Bart Steenken, general manager of the consumer adhesives division of Henkel Italia.
Prior to the Forbo/Swift and Henkel Loctite/Misal deals, Quest Specialty Chemicals and Rohm and Haas made purchases to build their adhesives operations.
Quest Specialty Chemicals Inc. acquired the adhesives and sealants division of Uniroyal Technology Corp., a business focused on industrial adhesives and sealants, commercial roofing adhesives and mirror mastics. Since the deal was closed, the unit, which still conducts business from its South Bend South Bend, city (1990 pop. 105,511), seat of St. Joseph co., N Ind., on the great south bend of the St. Joseph River, in a farming and mint-growing region; inc. as a city 1865. , IN manufacturing site, has been operating as Royal Adhesives and Sealants.
Rohm and Haas Company's last purchase came in 2001 when it acquired the flexible packaging adhesives business of Technical Coatings Co., a subsidiary of Benjamin Moore This article is about the American bishop. For the British biochemist, see Benjamin Moore (biochemist).
Benjamin Moore (1748 – 1816) was the second bishop of the Episcopal Diocese of New York. . By doing so, Rohm and Haas added the Coseal line of cold seal adhesives to its product stable and increased its presence in this technology which is used in food and medical markets.
Since the accord was finalized, Rohm and Haas has worked quickly to integrate Technical Coatings into its mix--and hasn't wasted any time in expanding presence in the flexible packaging adhesives market. In January, the company introduced a new water-based, cold seal adhesive product line called Robond CS to the European market, and said it would also make the technology available to Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia-Pacific markets.
There are three types of products within the Robond CS family: Robond CS 1000 and 2000 for application on plastic film and Robond CS 3000 for paper. (Rohm and Haas also offers solvent-based lacquer lacquer, solution of film-forming materials, natural or synthetic, usually applied as an ornamental or protective coating. Quick-drying synthetic lacquers are used to coat automobiles, furniture, textiles, paper, and metalware. for application to the reverse side of the cold seal substrate.)
Rohm and Haas' international expansion plans don't end there. The company is investing $20 million to build a facility in Mumbai, India to make polyurethane and polyester-based adhesives, adhesive formulations for flexible packaging applications and acrylic emulsions for pressure-sensitive adhesives. The new facility, which also makes water-based latex latex, emulsion of a polymer (e.g., rubber) in water (see colloid). Natural latexes are produced by a number of plants, are usually white in color, and often contain, in addition to rubber, various gums, oils, and waxes. for paints and coatings, will export products to Asia-Pacific customers.
Construction of the new facility is scheduled for completion in 2003. When finished, it will join Rohm and Haas' network of more than 100 research and manufacturing sites located in 25 countries. In addition, production is now under way at an adhesives and sealants plant Rohm and Haas operates in Jacarei, Brazil.
"Consumer needs for flexible packaging materials and pressure sensitive adhesives Pressure sensitive adhesive (PSA, self adhesive, self stick adhesive) is adhesive that forms a bond when pressure is applied to marry the adhesive with the adherend. No solvent, water, or heat is needed to activate the adhesive. is growing rapidly in emerging markets such as India, China and Brazil," said Mr. Gutwein. "Many of these markets are being driven by global food companies, automotive companies, and we believe it is a real advantage for Rohm and Haas to be positioned in these markets with the capability of offering the same product range and quality we do elsewhere in the world."
Mr. Gutwein continued, "Through introductions of new products brought to market through either internal R&D or through bolt-on acquisitions, our comprehensive range of innovative technologies is a visible display of this company's commitment to adhesives and sealants."
Solutia Inc Solutia Inc. is a chemical production company. It was formed in 1997 as a spin-off of Monsanto Company. History
Monsanto's core business was chemicals, and so Solutia traces its antecedents back to the foundation of Monsanto in St. Louis in 1901. . has also revealed plans to expand its international presence in the market. Following successful pilot plant and industrial-size batch tests, Solutia will start-up production of Gelva pressure sensitive adhesive (PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. ) products at its plant in France.
"We're excited about the opportunity this new production capacity will give us to expand our presence in Europe," said Nathalie Delava, who was recently tapped to serve as European product manager for the adhesives business line (see p. 61 for details). "We already enjoy an outstanding reputation among customers here for the technical performance of our products. By bringing local production on stream, we expect to be able to better serve our customers enabling us to be a significant supplier throughout Europe."
The manufacturing unit, located in Dijon, will produce solution acrylic PSA products starting in the latter part of the year, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Solutia executives. The line includes adhesive formulations for graphics and printing, automotive, medical and solar films applications. In addition, Solutia's adhesives customer support lab and warehousing has moved to Dijon. The plant, which opened in 1965, currently produces alkyd al·kyd
A widely used durable synthetic resin derived from glycerol and phthalic anhydride. Also called alkyd resin.
[alky(l) + (aci)d.]
Noun 1. , polyester and acrylic resins for coating applications.
Innovation is Still a Factor
Companies in the adhesive and sealant market continue to address customer concerns about cost, however innovative product development remains a priority.
"Customers want the means to assemble or seal their products with less weight, less expense, and greater reliability. Although there is a very strong demand for improved efficiencies of manufacturing processes, innovation continues to drive the market," said Mr. Gutwein of Rohm and Haas. "While most of our customers face continual cost pressure, new product features/functionality are still more critical than price alone. Further, we tend not to focus on simple unit price of the adhesive but, rather focus on cost-in-use at our customers."
Adhesive and Sealant Marketplace
There have been a number of new product introductions as adhesive and sealant suppliers continue to address the needs of their customers. Here is quick look at some new products now in the market for industrial users and DIYers.
On the industrial side, National Starch's new Pur-Fect Lok 34-957A low-temperature polyurethane reactive hot melt adhesive has achieved UL723 approval from Underwriter's Laboratories with a 0/0 rating for flame propagation and smoke generation. This product, which runs cleanly clean·ly
adj. clean·li·er, clean·li·est
Habitually and carefully neat and clean. See Synonyms at clean.
In a clean manner.
clean at temperatures from 250-275[degrees]F, is designed for vinyl and substrates such as wood, foamed plastics, metals and high-pressure laminates.
Another polyurethane adhesive from the company is Pur-Fect Bind 34-850A, a 100% solids, moisture-curing hot melt adhesive for book binding. Book spines using Pur-Fect Bind 34-850A resist storage and shipping temperatures up to 200[degrees]F and remain flexible in temperatures as low as-40[degrees]F.
Rohm and Haas has started production of a low monomer monomer (mŏn`əmər): see polymer.
Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers). adhesives family, Robond SF 3000 series in Bremen, Germany. The first commercially available product in the series is SF 3100/CR 190. Based on aromatic isocyanate i·so·cy·a·nate
Any of a family of nitrogenous chemicals that are used in industry and can cause respiratory disorders, especially asthma, if inhaled. chemistry, the formulation lowers the risk of primary aromatic amine Primary aromatic amines (PAA) are a group of compounds. They might be added to plastics during production.
In animal testing the PAAs have been shown to be related to cancer, and one form of PAA has been found in unacceptable high levels in kitchen utensils made of black formation to levels not possible with conventional adhesives, according to the company. It can be used in a variety of packaging applications, including coffee vacuum packs and stand-up stand·up or stand-up
1. Standing erect; upright: a standup collar.
2. Taken, done, or used while standing: a standup supper; a standup bar. pouches for beverages and moist food products.
GE Sealants has also added a new polyurethane sealant for home use called Space Invader insulating foam. The product forms a permanent, waterproof bond to wood, metal glass, masonry and most plastics.
DAP has added bonding and sealing products, including new environmentally-friendly formulations of existing products. Solvent-free additions include DAP 4000 subfloor and deck construction adhesive and DAP Beats the Nail all-purpose construction adhesive. Both products are VOC (Vertical Online Community) See vertical portal. compliant in the U.S., including California's SCAQM district. In addition, the company has also added Blockade high-performance intumescent acrylic sealant. The product, which expands to five times its original volume when subjected to flames or high heat (275[degrees]F), meets ASTM ASTM
American Society for Testing and Materials E 814/UL 1479 standards.
Loctite now offers Power Grab, a construction adhesive for use on concrete, brick veneer veneer (vənēr`), thin leaf of wood applied with glue to a panel or frame of solid wood. The art of veneer developed with early civilization. , treated lumber, plywood and drywall. The company contends the latex-based product has the highest initial tack of any construction adhesive.
Healthy Outlook for Surgical Adhesives and Sealants
It might just be a prescription for success. According to a new study conducted by MedMarket Diligence, the global medical and surgical sealant market was valued at $542 million in 2001 and is growing rapidly at 19% per year.
The Foothill Ranch, CA-based company reports that cyanoacrylates and other high-strength adhesives account for the fastest growing segment of the surgical sealants market.
According to MedMarket Diligence, one of the leading cyanoacrylates is Dermabond, developed by Closure Medical and marketed by Ethicon, a Johnson & Johnson company. Dermabond (2-octyl cyanoacrylate cy·a·no·ac·ry·late
An adhesive substance with an acrylate base that is used in industry and medicine. ) liquid topical adhesive is designed to repair low-tension lacerations and close wounds and surgical incisions. The adhesive is applied in thin layers and reacts with moisture on the skin's surface to form a strong, flexible bond in 45-60 seconds. As the wound heals, the adhesive sloughs from the skin.
Now this same technology has the made move from hospitals to home health care. This year, wound care powerhouse Johnson & Johnson introduced a liquid bandage Liquid bandage is a topical skin treatment for minor cuts and sores that is sold by several companies. The products are mixtures of chemicals which create a polymeric layer which binds to the skin. under its Band Aid brand, making it the first cyanoacrylate medical device approved by the FDA FDA
Food and Drug Administration
n.pr See Food and Drug Administration.
n.pr the abbreviation for the Food and Drug Administration. for the OTC OTC
See over-the-counter market (OTC). adhesive bandage adhesive bandage
A dressing of absorbent gauze affixed to plastic or fabric coated with a pressure-sensitive adhesive. market.
For more information on the Worldwide Wound Sealant Market (2002) study, contact MedMarket Diligence, (949) 859-3401; E-mail firstname.lastname@example.org; Web: www.mediligence.com.
Eastman Opens New Adhesives R&D Laboratory
Eastman Chemical Company Eastman Chemical Company is a United States based chemical company, engaged in the manufacture and sale of chemicals, plastics and fibers. Eastman has 16 manufacturing sites in 10 countries, supplying its products throughout the world. has opened a new adhesives and sealants R&D lab at its Kingsport, TN headquarters.
The new facility, opened in April, combines R&D, technical assistance and applications development operations in one location.
"This lab is the direct result of the successful integration of the Eastman and Hercules adhesives business," said Joe DeLoach Joseph ("Joe") Nathaniel DeLoach (born June 5, 1967) is a former American sprinter, the 1988 Olympic champion in the 200 m. Biography
Born in Bay City, Texas into a family with 11 sisters and one brother, enjoyed running at a young age, and desired to become a football , technology director for Eastman's adhesives and polymers business.
The lab features pilot scale spraying and coating equipment for hot melt, waterborne and solventborne adhesives, dynamic mechanical analysis and computer-controlled synthesis equipment that can simulate manufacturing conditions, according to Eastman.
LOG ON, LEARN MORE @ COATINGSWORLD.COM For more information on growth rates Growth Rates
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Remember, historically high growth rates don't always mean a high rate of growth looking into the future. for specialty adhesives, see the online version of this story at wwwcoatingsworld.com.