Top companies report.ALPHABETICAL LISTING
AB. WILH. BECKER--19
CHUGOKU MARINE PAINT--34
DAI NIPPON TORYO--24
DAINIPPON INK & CHEMICAL--36
ROHM AND HAAS--16
1 AKZO NOBEL
Sales: $6.529 billion
HQ: ARNHEM, THE NETHERLANDS
WEB SITE: WWW.AKZONNOBEL.COM
KEY PERSONNEL: G.J. Hans Wijers, chairman and CEO. General managers: Rinus Rooseboom, car refinishes; Jan Andersson and Leif Abildgaard, decorative Coatings; Robert Torba, industrial finishes; Bill McPherson, marine and protective coatings; and Rob Molenaar, powder coatings.
Major Products: Decorative, industrial, marine and protective coatings and automotive refinish paint.
New Products: Sikken's Alpha Tacto, a textile-effect paint that reproduces the look and feel of suede, leather or woven fabric.
Recent Acquisition: Swiss Lack.
* With sales of $6.529 billion in 2004, Akzo Nobel remains high atop the global coatings marketplace. The Netherlands-based company's size and scope begs a question: when you're already the biggest, how do you get even bigger?
It should come as no surprise that Akzo Nobel is targeting China for growth. And it appears the firm is planning on milking this growing market for all its worth. Akzo Nobel is determined to rise to the top spot in China, according to chairman and CEO Hans Wijers.
"Although we are the world's biggest coatings company, we are not yet number one in China," Wijers said at a ceremony marking the opening of a new facility in Suzhou (near Shanghai) in June. "This is one of our strategic priorities." He said Suzhou is just the latest stage in the "realization of our strategic vision to become the country's number one coatings company."
The company contends it already has leadership positions in several industrial market sectors in China, but consolidation and further expansion of its decorative activities there will play a substantial role in helping to establish Akzo as the country's major coatings force.
The firm has already enjoyed explosive growth in China--its total sales there have increased by nearly 400% since 1998.
To date, Akzo Nobel has several facilities in the Asia Pacific region. In addition to the recently opened water-based wall paint production, R&D and warehouse facility in Suzhou, a new decorative coatings factory was also started up in Vietnam.
Akzo's expansion efforts aren't relegated to Asia. The company is also flexing its muscle in Europe.
In April 2005, it acquired Swiss Lack, a leading Swiss paint company with sales of 45 million [euro]. The deal makes Akzo the biggest coatings company in Switzerland. The accord included Swiss Lack's products and its large commercial distribution network.
The Swiss Lack deal builds on Akzo's efforts to command strength beyond the actual coating in the can to those who use it. The company has also acquired the second largest German wholesaler, Timpe & Mock, and took a 30% share in Peters, a German decorative paint distributor. The latter deal gave Akzo access to an additional 17 outlets in Nordrhein-Westphalia, and at the time, upped its decorative coatings outlets in Germany to 72.
"The key competence of Akzo Nobel Decorative Coatings is not only the formulation, production and marketing of paint, but also distribution as local availability and service are critical to our success," said Leif Abildgaard, general manager of Akzo Nobel's Decorative Coatings Europe business unit. "By joining forces with or acquiring distributors, we are creating greater critical mass and a solid platform for profitable growth. It is our firm belief that any distributors we acquire should be treated as customers. In other words, on an equal basis with the independent distributors we work with."
In 2004 the Decorative Coatings Europe unit saw strong improvement in a flat market, as GDP in many Western European countries remained sluggish. Also, weather hampered sales in northern Europe. Despite that, the company said it continues to "place a strong focus on improving the quality of the business by taking many initiatives to strengthen our branded businesses and phasing out less attractive low margin businesses and weak brands with no added value." As a result, margins improved in 2004 and offset higher costs of raw materials, packaging, energy and transportation during the second half of the year. During the year, the unit completed a large proportion of the comprehensive cost reduction program started in 2003.
Deco Europe's retail sales results were mixed in 2004, with various countries up and others down, which the firm said was a reflection of the discontinuation of business in less attractive private labels and low-priced white commodity paint. Akzo noted that sales in added-value branded products increased, aided by a comprehensive renewal of branded product offerings and improved positioning in most countries during 2004.
The company was pleased with the performance of its specialties business--also part of its European decorative coatings operation--which was driven by promising sales in new EU countries. The firm is also in the second phase of a rollout of a new tinting system which uses a limited number of base paints, increases color accuracy and meets future VOC regulations for 2007.
Akzo's Decorative Coatings International unit posted good volume growth and improved its operating income, according to the company. Business in Eastern Europe continues to develop "favorably, particularly in Russia and Ukraine but also in the Baltic States where we see steady growth," the company reported. Restructuring programs were started in Hungary and Poland, which led to a significant decrease in headcount and costs. Combined with increased sales, these efforts resulted in distinctly higher profitability. In Turkey, Akzo said fierce competition depressed margins, but its strong brands have allowed it to achieve a large increase in marketshare. In Greece, performance was particularly buoyant, driven by excellent results that lasted, not unexpectedly, until the Olympics. Akzo's building adhesives operation also stepped up activities in Eastern Europe, and it also saw increases in volume in flat markets, such as Germany.
Proving that even a large company needs to think small sometime, Akzo said by continuing a niche strategy for wood care products in North America and Argentina, it recorded robust volume growth, especially in the latter market.
On the industrial side--which includes industrial finishes and powder coatings-company officials said "top line initiatives, geographic expansion, bolt-on acquisitions and improved economic conditions" delivered substantial growth, helping to offset the impact of depressed margins stemming from higher raw materials costs within its industrial finishes unit.
Akzo's industrial strategy centers on investment in China, India, Brazil and Eastern Europe and providing customers with products that increase efficiency and help them differentiate their products in increasingly competitive marketplaces.
Akzo Nobel's powder coatings delivered a significant increase in sales combined with tight cost control and a selective investment approach that led to solid financial performance with considerably improved operating income and return on investment. The powder business expanded with a pair of plants in China and a new Brazilian plant for non-stick coatings. In addition, Akzo's Cromadex distribution network opened branches in France and Germany.
Powder R&D efforts are paying off too. In 2004, the firm recorded its first commercial sales of UV-curing powder coatings for PVC flooring. In addition, it launched the Elements special effects range in Europe for use by general trade coaters.
Akzo described 2004 as a "challenging year" for its car refinish unit, with the operational side "bearing up well in adverse market conditions, but with profitability suffering" from high costs. Company officials said volume steadily declined in mature markets and showed slow but steady growth in developing markets. Operating income was down, but the firm said it has stepped up containment efforts. A restructuring program announced in July started to yield results in 2004, but Akzo said it doesn't expect to realize the effect until 2006.
Akzo has enlisted new strategies to better fit the refinish market, such as developing a worldwide retail brand approach that positions Sikkens as a brand for profitability and Lesonal as the brand for performance. (Akzo did hold onto a select number of regional brands at the retail level.) Recognizing the need to deliver increased services to this customer base, Akzo unveiled Sikkens e-Benchmarking, a web-based business analysis tool that provides analysis of a bodyshop's performance compared to a variety of core groups and advice on how to improve profitability.
Akzo's marine and protective coatings unit delivers solutions ranging from marine and pleasure boats to heavy industry and aerospace. The company said it saw new record levels of operating income in 2004, despite a weaker U.S. dollar and significant raw material cost increases during the year.
International Marine Coatings benefited from a high level of newbuilding, particularly in Korea and China. Dry-docking activity remained high as shipyards are fully committed until 2007, according to the company. A major highlight for the year was the start of full business operations of International Paint Japan. Furthermore, International Protective Coatings maintained good levels of profitable growth led by organic expansion in the U.S., China and Central/Eastern Europe. In aerospace, Akzo Nobel said it achieved growth and improved profitability in both Europe and the U.S., despite the airline industry's troubles.
Akzo Nobel continues to evaluate its coatings business, removing operations that don't align well with its strategy. Last August it divested part of its liquid coatings activities in the agricultural and construction equipment (ACE) segment to BASF, and in a separate deal it acquired BASF Coatings' wood construction (joinery) business. The divestment involved ACE activities of Akzo Nobel's Car Refinishes business in Germany, Austria, France, Italy, Switzerland and Spain, with the manufacturing of these coatings transferred from Akzo Nobel's sites in Zona Franca (Spain), Stuttgart (Germany) and Montataire (France) to BASF's coatings sites. Products from BASF's wood construction acquisition were moved to Akzo Nobel's Decorative Coatings site in Cologne.
The company also shed its coatings resins business and spun-off Nobilas, which provides accident management services to insurers, corporate fleet owners and car leasing and rental companies.
2 ICI GROUP
SALES: $5.378 billion
IMPERIAL CHEMICAL INDUSTRIES PLC
HQ: SLOUGH, UK (ICI PAINTS) BRIDGEWATER, NJ (NATIONAL STARCH)
PHONE: 44-20-7009-5000 (ICI PAINTS)
908-685-5000 (NATIONAL STARCH)
WEB SITE:: WWW.ICI.COM * WWW.NATIONALSTARCH.COM
KEY PERSONNEL:: David Hamill, director of ICI and chief executive of ICI Paints, and William Powell, director of ICI and chief executive of National Starch.
Major Products: Paint and coatings (ICI Paints) and adhesives (National Starch).
New Products: Cuprinol Sprayable Fence Treatment, Cuprinol Hardwood Garden Furniture Protector in clear matte, Cuprinol Hardwood Garden Furniture Oil in mahogany and light oak, Dulux Roll-On Diamond Tough Floor Varnish, Dulux Kitchen & Bathroom varnish, Dulux natural matt woodwash, Cuprinol Rollable Decking Treatment, Polycell Sealant Plus-Beyond Silicone, Polycell A Touch of Texture, Devoe Regency interior and exterior paint, This Old House paint, Once Ready to Roll and Sublime Touch.
* Headquartered in the UK, ICI Paints manufactures coatings and related products in 25 countries. National Starch, based in the U.S., is a maker of adhesives (among other products) boasting manufacturing and customer service centers in 37 countries. Together, these units represent a $5.3 billion coating and adhesive operation.
Selling mainly decorative paint (91% of sales in 2004), ICI Paints also formulates packaging coatings for food and beverage cans. ICI Paints maintains its own sales distribution network in more than 30 countries and sells elsewhere through agents and distributors. On a geographic basis, ICI Paints' sales stem mainly from North America (40%) and Europe (37%). Asia-Pacific represented 14% of sales in 2004, with Latin America and other markets accounting for the remainder.
For many companies, there is a need to think outside the box for growth. For ICI Paints, developing innovative products means thinking, literally, about the box--or more specifically, the can and the application method. Many of its recent successes have been forged through the development of unique packaging that makes the task of painting or general repair easier for consumers. Examples include new Dulux Roll-On Diamond Tough floor varnish, Cuprinol Rollable Decking or Sprayable Fence treatments and Polycell's A Touch of Texture, a textured base coat product which is sold with the application tool in the packaging.
ICI's R&D department is also focused on delivering unique products such as its new flame retardant. Pyroshield from Dulux Trade, which is water-based, low in odor and offers no "splatter" application, is sold in single packs, which ICI says helps to minimize wasted product. In addition, ICI Paints says it continues to "exploit" what it calls innovations brought to market in 2003, such as the international rollout of Magic White (including its extension into trim products), Easy Can Polycell basecoat and Cuprinol Rollable.
With manufacturing centers in the U.S., Canada, UK, Germany, The Netherlands, Poland, Japan, Thailand, Korea, China and Brazil and additional facilities located in 21 other countries, National Starch is a leader in industrial adhesives, selling natural and synthetic polymers, waterborne, hot melts and 100% solids products. In fact, if one needs an adhesive, odds are National Starch makes one that will work. Application areas include packaging, bottles, cans, bookbinding, remoistenable stamps, disposable diapers, personal sanitary products, hospital supplies, self-adhesive tapes, labels and decals, transdermal drug delivery patches, athletic shoes, woodworking and construction.
National Adhesives, a unit of National Starch, recently announced plans to boost its supply of transdermal-grade adhesives with a new manufacturing facility in Salisbury, NC. The new facility, which will be built alongside an existing manufacturing unit, is expected to start production in 2006. The multi-million-dollar investment will accelerate National Starch's efforts to supply pressure sensitive solution acrylic and solution rubber adhesives used in transdermal drug delivery systems.
Like its comrades in the paint business, National Starch has been hit hard by rising raw material prices. Along those lines, National Adhesives announced price increase on all of its adhesive product lines across Europe, effective May 1.
"Chemical raw material prices are by nature cyclical. We have seen significant peaks in the prices over the last decade, however these cycles have become relatively short lived. The adhesive industry in general has been able to smooth out the impact on customers up until last year,' said Alan Bate, executive vice president for National Adhesives. "What has happened over the last 14 months has been fundamentally different. The levels of increases are beyond anything we have seen in 25 years, and the long-term tightness in supply means the higher prices in basic raw materials are here to stay."
Bate said the company's first action was to "push back on suppliers as well as working with key customers on reformulating and product substitutions as we appreciate the difficulties our customers have" in passing along the increases. "However, with demand high and availability short, suppliers have been extremely robust. Alternative demand for key raw material feedstock is high and we are seeing evidence of suppliers diverting raw materials away from the adhesives industry. This has resulted in order control on some key materials. This represents not just a crisis, but also a fundamental change in our economics, which cannot be sustained without us raising prices," he added.
3 PPG INDUSTRIES
SALES: $53.275 billion
HQ: PITTSBURGH, PA USA
PHONE: 412-434-3131 WEB SITE: WWW.PPG.COM
KEY PERSONNEL: Charles E. Bunch, chairman and CEO (effective July 1); J. Rich Alexander, senior vice president and key manager, industrial; William A. Wulfsohn, senior vice president and key manager, Europe; Charles Kahle, director, coatings R&D; Dick Beuke, key manager, architectural; Dennis Kovalsky, key manger, automotive; Garry Goudy, key manager automotive refinish; and Marc Telman, key manager, packaging.
Major Products: Architectural/decorative paint, coatings and stains, automotive OEM and refinish coatings, industrial coatings and packaging coatings.
New Products: Desoprime CA 7049 chromate-free, high-solids epoxy primer (aerospace), OneChoice Plastic Prep System (refinish), Nexa Autocolor P440line 2K special effect mixing colors (auto refinish); and Manor Hall Timeless, a super premium exterior paint.
* In 2004, PPG's coating sales rose nine percent ($440 million) to $5.275 billion. The company said sales rose six percent from improved volume across its business and four percent due to the positive effects of foreign currency translation, primarily from its European operations. Sales declined due to lower selling prices, principally in its automotive business, according to the company. Operating income rose $58 million in 2004, stemming from higher sales volume and the favorable effects of currency translation as well as improved manufacturing efficiencies.
"Our performance in 2004 was nothing less than impressive," said then-chairman and CEO Raymond W. LeBoeuf in the company's 2004 annual report. This month marks the retirement of LeBoeuf, with Charles E. Bunch taking the helm as chairman and CEO of PPG.
LeBoeuf spent 25 years with the company and eight years as its chairman and CEO. During his tenure, PPG's management team has reshaped the company's business portfolio through acquisitions and organic growth, generating record sales in 2004 and a four-year record in cash from operations. He joined PPG as treasurer in 1980 after holding various financial management posts at Ford Motor Company.
Bunch, who joined PPG in 1979 as assistant to the corporate controller, served in a variety of assignments in the U.S. and Europe before being named corporate director of purchasing and distribution in 1988. He was elected president, COO and a PPG board member in July 2002, and took on the role of general manager of architectural coatings in 1992 and later vice president of that unit. He was named executive vice president, coatings, in early 2000.
Bunch will now guide PPG as its coatings unit continues to expand internationally. Recently, PPG inked a new joint venture with Helios (ranked number 42 in our report) related to chemical management for AutoVaz's new paint shop in Russia. Mark Charles is serving as managing director of PPG-Helios (see Fresh Paint, p. 10 in this issue for more on the JV).
In late 2004, PPG Industries and Kansai Paint formed an alliance to sell automotive coatings to global original equipment manufacturers. Officials from PPG and Kansai said the alliance will assist both companies in responding quickly and effectively to the demands and requirements of the global automotive OEM industry. North American and European joint ventures are 60% owned by PPG and 40% owned by Kansai. Troy, MI will be the head office in North America and Birmingham, UK serves as the European head office. The joint venture in Japan, which is equally shared by PPG and Kansai, is located in Aichi Prefecture. Richard J. Rurak has been appointed president of PKAF-North America and Europe while Mitsuhiro Fukuda and Yutaka Mizutani are vice presidents of PKAF North America and PKAF-Europe, respectively. Masahisa Izuhara has been named president of PKAF-Japan with Masao Watanabe serving as vice president.
PPG is also committed to growing its operations closer to home, including signing alliances with U.S. firms that will expand its reach in areas such as maintenance chemicals. Along those lines, PPG Aerospace-PRC-DeSoto recently signed a seven-year global distribution agreement with Indianapolis-based Eldorado Chemical Company, Inc. to be a distributor of its aerospace maintenance chemicals. As part of the agreement PPG will be the exclusive distributor to certain key Eldorado aerospace customers in North America.
PPG Industrial Finishes Color Services team reached a milestone last year: the creation of its 100,000th custom color match (UC100000 Polycron III Harp Beige), which was made for EPCO Extrusion Painting Co., in Boardman, OH.
PPG has been supplying custom color matches and panels to the coil and aluminum extrusion industry for more than 30 years. Over that time, the company has made tremendous leaps in its capabilities, thanks in part to more automated systems, such as its Kaleidoscope dispense-cell technology. Kaleidoscope Workcell makes coatings in five to 1,000 gallon batches--the most commonly ordered batch quantities for custom coaters--using computer-controlled dispensing and formulating capabilities that minimize batch-to-batch variations while producing the paint faster, more efficiently and more economically.
PPG Automotive Refinish is also focused on delivering greater efficiency through innovative products. The unit has recently added OneChoice Plastic Prep System, a patent pending three-step process to create superior adhesion for refinish of plastic substrates. "Utilizing NanoAdhesion technology, this innovative Plastic Prep System is significantly faster than conventional methods and can dramatically reduce paint operation cycle time," said Mark Rapson, product manager for PPG Automotive Refinish. "The NanoAdhesion technology incorporated into the system components assures you of superior adhesion."
The system entails three products: SU4901 Clean and Scuff Sponge, which is pre-saturated with a cleaning solution specifically designed to lightly abrade the plastic part and remove contamination; SU4902 Plastic Adhesion Wipe, a pre-saturated product formulated with PPG NanoAdhesion technology designed to apply advanced film-forming adhesive and anti-static material to unprimed plastic; and either SUA4903 (aerosol) Advanced Plastic Bond or SU4903, a ready-to-spray product. The OneChoice Plastic Prep System can be used under PPG topcoats and undercoats.
PPG's architectural unit includes a roster of very high profile decorative paint, coatings and stains sold in paint shops and home improvement warehouses. Tom Dougherty, marketing manager, Pittsburgh Paints, said that "2004 was another strong year for our architectural finishes business unit across all three channels in which we participate--national accounts, independent dealers and store business. All three legs had solid years." Dougherty told Coatings World he is expecting double-digit growth in 2005.
Some of that growth could stem from new products that offer consumers superior performance and longevity, such as new Manor Hall Timeless. This super premium exterior paint from Pittsburgh Paints features a 100% cross-linked acrylic resin found in two-component high-performance coatings. The formulation, which has a lifetime warranty, also boasts exceptional adhesion, four-way mildew and algae resistance and low temperature application.
PPG'S CHOPPER WITH A CAUSE
PPG Automotive Refinish has started a yearlong fund-raising effort for The Leukemia and Lymphoma Society. Kicked off in March with an auction that took place during PPG's Platinum Distributor Conference, distributors bid on racing paraphernalia, posters, body shop equipment and supplies and more to raise more than $32,000.
Unveiled at the auction was the "Charity Chopper," the brainchild of PPG Automotive Refinish, Ray Evernham of Evernham Motorsports, along with his foundation Racing for a Reason, and Dave Perewitz of Perewitz Cycle Fabrications. Featuring a spectacular Liquid Crystal paint finish from the PPG Vibrance Collection, the chopper's design was headed by Dave Perewitz. Perewitz Cycle Fabrications custom built the one-of-a-kind V-twin bike, featuring a classic flame design by Perewitz himself.
The Charity Chopper is touring the U.S. with the PPG show truck at custom car and bike shows and select NASCAR events. In October it will be auctioned on eBay, with all proceeds benefiting The Leukemia and Lymphoma Society.
SALES: $5.27 billion
HQ: DUSSELDORF, GERMANY
WEB SITE: WWW.HENKEL.COM
KEY PERSONNEL: Ulrich Lehner, chairman of the management board of Henkel KGaA; Alois Linder, executive vice president, consumer and craftsmen adhesives; vice president, Henkel Technologies.
Major Products: Adhesives and sealant technologies sold in the industrial, professional and DIY markets.
Recent Acquisitions: Sovereign Specialty Chemicals.
* Henkel's consumer and craftsmen adhesives business sector posted a 10.1% increase in sales in 2004. After adjusting for foreign exchange rates, the gain was 13.8%. This improvement was due not only to sales from acquisitions, but also to organic growth that was well above market levels, the company said.
Against the background of raw material price increases that the consumer and craftsmen unit has not yet been able to fully offset, growth in operating profit (EBIT) was "below average" at 6.1%, or 9.3% after adjusting for foreign exchange. Overall, the unit's capital expenditures including acquisitions for 2004 totaled 114 million [euro] compared to 138 million [euro] in 2003, according to the company.
Henkel strengthened its craftsmen and industrial businesses in the U.S. with the acquisition of Sovereign Specialty Chemicals, via a $575 million deal that closed in December.
The company is looking to Sovereign to boost its North American adhesives operation. "The acquisition of Sovereign Specialty Chemicals provides Henkel in North America with a substantial and growing business in the craftsmen and DIY adhesives and sealants market and complements the industrial segment in an ideal way. We now hold a strong number two position in both segments in the U.S. market," said Ulrich Lehner, chairman of the management board of Henkel KgaA. "With the successful completion of all acquisitions made in 2004, the Henkel Group will generate about 25% percent of its sales in the U.S."
Henkel Technologies sales rose 4.7% in 2004; after adjusting for foreign exchange, sales rose by 8.8%, the company said. Through positive sales performance and improved cost structures, operating profit (EBIT) rose to 235 million [euro].
In terms of investment in 2004, Henkel Technologies was, like many companies, intent on establishing manufacturing operations closer to its customers--such as those in the electronics and packaging industries--who are in Asia. Including consolidated acquisitions, capital expenditures in 2004 was 179 million [euro] compared to just 94 million [euro] in 2003.
Henkel showed further commitment to Asia, specifically China, with the commencement of cooperative R&D projects with leading research groups from five Chinese universities. Henkel $500,000 investment over a two-year period marks its most extensive R&D project in China. Six projects between Henkel Technologies and its consumer and craftsmen adhesives unit and Tsinghua University, Shanghai JiaoTong University, Fudan University, Nanjing University and Shandong University began in January.
"The cooperation was set up to develop a new generation of adhesives and sealants based on silicone modified materials," said Horst Eierdanz, vice president of R&D engineering adhesives at Henkel Technologies. "The Chinese universities involved will be conducting applied research in a few selected areas which Henkel is interested in." Additional R&D projects and similar cooperation with Chinese universities will follow in the future.
SALES: $4.91 billion *
HQ: CLEVELAND, OH USA
WEB SITE: WWW.SHERWlN.COM
KEY PERSONNEL: Christopher M. Connor, Chairman and CEO; Sean R Hennessy, senior vice president, finance and CFO; and Conway G. Ivy senior vice president, corporate planning and development. John G. Morikis, president; paint store Segment; Thomas w. seitz, president and general manager; consumer segment; Blair P. LaCour president and general manager, automotive finishes segment; and Alexander Zalesky, president and general manager, international coatings.
Key Products: Architectural and decorative paint, stains and varnishes, wood finishing products, caulks, adhesives, automotive finishes and industrial and marine coatings.
New Products: Duration Home interior latex; Builders Solution interior coating system; Dutch Boy Ready to Roll, Krylon H20, Krylon Paper Finishes, NP75 Squeegee Prime ISO-Free primer surfacer, CC 900 Series clearcoats with Ure-Flex Technology and E2W840 Element Shield OE/fleet primer-white.
Recent Acquisitions: Duron, Inc. and Paint Sundry Brands.
* Sherwin-William's consolidated net sales in 2004 topped $6.1 billion dollars, a rise of 16.7% over 2003. (The company's ranking excludes estimated sales from nonpaint items and other administrative items reported by the company.) Sherwin-Williams' consolidated net income rose to $393.3 million, representing an increase of 18.4% percent over the previous year.
During 2004, Sherwin-Williams generated nearly $545 million in net operating cash, which enabled it to invest $106.8 million in capital expenditures, repurchase more than six-and-a-half million shares of stock and completed what it called "three strategically important acquisitions."
The highlight of its buying spree was Duron, Inc., a strong regional maker of architectural and decorative coatings, which last year held the 29th spot in our Top Companies Report. The Duron deal, which was completed in September 2004, added approximately 3.5% to Sherwin-William's paint stores segment's full year net sales and was slightly accretive to earnings for the year, the company said.
Net sales for Sherwin-Williams' paint stores segment rose 14.6% to $3.98 billion from $3.47 billion in 2003, with comparable store sales improving by 10.1%. Operating profit from the segment rose 19% to $480.2 million. The positive effects of strong sales volume and aggressive cost control throughout the year was partially offset, however, by rising raw material costs, according to the company.
With its primary customer being professional painters--a market that is forecasted to grow in the U.S.--assessing its retail outlet presence is essential. In 2004, 295 new stores were added through organic expansion and acquisition, giving the company 2,983 stores in North America compared to the 2,688 it had the year before. Organically, the firm opened 71 new stores and shuttered five, resulting in a net increase of 66 stores for the year. Duron added 229 stores.
Net sales of S-W's international coatings segment rose 11.7% to $318.6 million in 2004, benefiting from favorable currency exchange and sales in local currency that continued to build during each quarter of 2004. The segment's operating profit was $18 million in 2004 compared to $8.4 million in 2003. Sherwin-Williams attributed the gain to higher sales volumes, operating efficiencies resulting from manufacturing volume increases, tight expense control and favorable currency exchange fluctuations.
The company has recognized that it is critical to tailor efforts for its international customers. For example, in Argentina, it launched a concept store, based on the traditional Sherwin-Williams paint store model, but adapted it to better fit the local market. In the UK, Sherwin-Williams' Ronseal wood care brand remains a market leader, and the unit successfully launched a comprehensive range of specialist paint products for use in a variety of applications.
Sherwin's automotive finishes segment's net sales rose 12.6% for the year to $514.3 million versus comparable periods last year. Increased sales in the fourth quarter stemmed mainly from improving domestic sales and the April 2004 acquisition of a majority interest in an automotive coatings company in China. The net sales gain for the year was primarily due to new product introductions, improving international sales and the China acquisition, the company said. Operating profit was up 10.8% to $58.1 million.
In 2004, Sherwin-Williams introduced several innovative products designed to help save time. material and labor--key issues with its automotive costumers. Among those new products were NP75 Squeegee Prime, a direct-to-metal ISO-free primer surfaces that is free of lead and chromates, and CC900 clearcoats with Ure-Flex Technology, which eliminate the need for additional flex additives and mixing steps. The firm has also launched customized solutions, such as Ultra 7000 Motorcoach basecoat, the first MACT compliant paint for the RV industry, formulated to withstand the rigors of severe weather and road conditions.
Sherwin-Williams is also growing its international automotive presence, including the formation of Sherwin-Williams Kinlita Co. Ltd. via a majority interest in a local Chinese auto paint company, and the opening of a wholly-owned subsidiary, Sherwin-Williams Pinturas de Venezuela. In addition, the company expanded sales and distribution platforms in Asia and in Bolivia, Paraguay and Uruguay through a newly-created export sales office in Brazil. It also now supplying automotive interior and exterior plastic coatings to the Brazilian OEM marketplace.
Sherwin-William's consumer segment recorded a nine percent gain in net sales, reaching $1.3 billion for the year, with acquisitions increasing net sales in the fourth quarter by 12.1%. This increase was partially offset, however, by sales declines resulting from the elimination of a paint program with a customer, a negative impact of 3.9% on net sales due to the impairment of a customer sales incentive program and inventory adjustments at some of its retail customers. For the full year, acquisitions increased net sales 7.2% and new product programs contributed further to the increase, the company said. Operating profit dropped 5.7% to $187.7 million.
On the management side of things, there has been a recent change at Sherwin-Williams--the recent departure of president and COO Joseph Scamince (see p. 81 in this issue for details).
SHERWIN-WILLIAMS' RETAIL MILESTONE
In April, the Sherwin-Williams Paint Stores Group reached a historic milestone: the opening of its 3,000th store. The event was commemorated with a ribbon-cutting ceremony at the new store, which is in Syosset, NY. To demonstrate the company's commitment to being a good corporate citizen, Sherwin-Williams donated $3,000 to the Syosset Public Library.
SALES: $3.65 billion *
HQ: WILMINGTON, DE
PHONE: 302-892-5674 WEB SITE: WWW.PERFORMANCECOATINGSDUPONT.COM
KEY PERSONNEL: Charles O. Holliday Jr., chairman and CEO; Thomas M. Connelly, Jr., senior vice president and chief science and technology officer Edward J. Donnelly, group vice president, DuPont Coatings & Color Technologies; Douglas, L. Moore, vice president/general manager, DuPont Advanced Coatings Systems; Eric G. Melin, vice president/general manager, DuPont Refinish; Marly M. McQuade, vice president/general manager, DuPont Automotive Systems.
Major Products: Automotive OEM and refinish coatings and industrial finishes.
New Products: DuPont 2311-S sanding paste, DuPont A-4114S aerosol etch primer-gray; CF-22860S chrome-free etch primer; Standox Miami Mint special effect paint; Standocryl Express-Premium Clear; Standocryl VOC Premium Clear; Alu Star (water-based Permahyd shade); and Cromax and Centari Stellar Green EFX special effect tints.
Recent Acquisitions: POL-SVER Lakiery Proszkowe Sp and a remaining interest in DuPont Turkiye (a joint venture in automotive, refinish and industrial coatings).
* DuPont' Coatings and Color Technologies unit recorded sales of $6 billion in 2004 and its operating income (before special items) was $814 million. By major product category, Dupont coatings and color technologies unit breaks out as follows: OEM 21%, refinish 30%; white pigments 32% and other 17%. DuPont's "coating sales" are estimated to be $3.65 billion.
The coatings and color technologies unit is becoming a even more global firm, with a growing percentage of its sales coming from outside the U.S (66% in 2004). Along those lines, DuPont is making savvy investments in Asia, including a new $10 million laboratory in Japan to facilitate technical approvals for automotive coatings used by Japanese auto manufacturers worldwide and to support their home country assembly operations. The new facility, in Aichi Prefecture, is scheduled to open in the third quarter of 2005 and will employ approximately 30 scientists. The laboratory will be established by DuPont and operated by DuPont Shinto Automotive Systems, a joint venture with Shinto Paint Company.
"This new laboratory supplements the extensive network of DuPont technical facilities located in the Americas, Asia and Europe that serve our growing coatings business with Japanese auto manufacturers," said Marty M. McQuade, vice president and general manager for DuPont Automotive Systems, the company's automotive coatings unit. "Our focus is on developing and harmonizing the latest coatings technology worldwide to meet the most demanding requirements for vehicle aesthetics and durability along with more environmentally friendly manufacturing."
DuPont has big plans for China too. As a company, it says it will be doubling its investment in the country by 2010.
7 BASF COATINGS
SALES: $2.515 billion *
HQ: MUNSTER, GERMANY
WEB SITE: WWW.BASF-COATINGS.COM
KEY PERSONNEL: Jean-Pierre Monteny, CEO, BASF Coatings AG; Klaus-Peter Lobbe, member of the board of executive directors responsible for coatings globally; Rainer Blair, group VP, coatings, North America; Jacques Delmoitiez, group VP, automotive refinish/commercial transport coatings; Wolfgang Micklitz, director OEM coatings for Asia-Pacific; Peter Steiert, group VP-industrial coatings solutions/global strategy and regional business unit; and Rui Goerck, VP, coatings South America and head of Decorative Paint Solutions.
Major Products: Automotive OEM and refinish coatings, industrial coatings and decorative paint.
New Products: A waterborne basecoat in China.
Recent Acquisition: Remaining shares of BASF Akzo Nobel (BAN).
* BASF's coatings sales rose slightly in 2004, and the firm saw "considerably increased income from operations compared with 2003, despite significantly higher raw materials prices and negative currency effects."
According to the company's most recent statistics, automotive OEM remains its largest sector, accounting for 50% of sales in 2004. Refinish and commercial transport coatings accounted for 25%, industrial coatings represented 15%, and decorative paints accounted for 10%.
Company officials said all product lines contributed to higher earnings. In particular, industrial coatings improved significantly as restructuring measures within this unit have been very successful, according to the company.
Part of the restructuring included optimization of its product portfolio, including exchanging its window and exterior door coatings business for the agricultural and construction machinery paints business of Akzo Nobel. More recently, the company inked another accord with Akzo Nobel in which it gained complete control of BASF Akzo Nobel (BAN), a former equal-share joint venture between the two in the Australian automotive market.
Following the deal, BASF will combine the business with its BASF Coatings Pty Ltd. in Sydney, forming BASF Coatings Australia Pty Ltd. In 2004, these two businesses had posted combined sales of approximately 25 million [euro].
"This transaction gives us an excellent foundation to further develop our OEM business in Australia. BASF is known globally as market leader in high-quality coatings technology for the automotive industry," said Wolfgang Micklitz, director, OEM coatings for Asia-Pacific. "As a strong member of BASF's business networks, both globally and in the Asia-Pacific region, BASF Coatings Australia will fully capitalize on these strengths as a preferred partner to help our customers be more successful." Pascal Goerdes, managing director of the new company, added, "We are taking a big step forward in establishing one legal entity that combines BASF's coatings expertise and efficiently represents all of BASF's coatings activities in Australia."
BASF Coatings is also expanding its market presence in Africa with automotive repair products in the Glasurit and Salcomix refinish lines being offered in Ghana. Why there? In Ghana, cars are 10 years old on average, which means that the market shows a high demand for a broad range of refinish products. In the capital city of Accra as well as Kumasi, two dealers with BASF Coatings' partner Afrigerm Ltd. have begun marketing the automotive refinish products in new subsidiaries.
SALES: $2.44 billion
HQ: MINNEAPOLIS, MN USA
WEB SITE: WWW.VALSPAR.COM
KEY PERSONNEL: William L. Mansfield, president and CEO; Steven L. Erdahl, executive VP-coatings; Paul C. Reyelts, executive VP and CFO; Rolf Engh, executive VP, general counsel and secretary; Gary E. Hendrickson, senior VP- architectural, global wood coatings and federal; Donald A. Nolan, senior VP, global packaging and automotive; Kate Bass, vice president-information technology and furniture solutions; Steve Person, vice president, sales and marketing, architectural group.
Major Products: Decorative, protective and industrial paint and coatings, packaging coatings and automotive and fleet refinish products.
New Products: Quikrete professional concrete coatings. Recent Acquisitions: Samuel Cabot Inc.
* Valspar's 2004 sales rose 8.6% to $2.44 billion while its net income jumped an impressive 26.9% to $142.8 million. The company said core sales growth was 5.8%, after excluding the favorable impact of foreign currency of 2.4% and acquisitions of 1.9%
Net sales of Valspar's paint segment rose 11.3% to $802 million. Excluding the favorable impact of the De Beer acquisition (made in early 2004) and foreign currency, net sales growth in the paints segment was 5.5%. Company officials said revenue growth came primarily from strong sales to home improvement retailers, new color merchandising systems and expanded paint displays. The company's coatings segment reported an increase of 6.7% in net sales to $1.412 billion. Excluding the favorable impact of foreign currency and the acquisition of selected assets of Associated Chemists, Inc., net sales growth in the coatings segment was three percent.
Valspar made a rather high-profile acquisition this spring--and it was also one that marked the end of another family-owned operation in the U.S. The company agreed to purchase Samuel Cabot Inc., a manufacturer of premium exterior and interior stains and finishes, which had been privately owned and family-run for 128 years. Cabot had sales of approximately $58 million in 2004.
The Cabot deal followed Valspar's August 2004 purchase of selected assets of the forest products business of Associated Chemists, Inc. (including a manufacturing facility in Orangeburg, SC) for approximately $80 million.
Forging into new markets, the company embarked on a strategic alliance with The Quikrete Companies, the leading player in the U.S. concrete market. Through the accord, Valspar will manufacture and jointly market premium concrete coatings under the Quikrete banner. The goal is to have Quikrete Professional Concrete Coatings develop a strong position in the home improvement industry and serve as a model for other future specialty brand alliances, according to the company.
There have been some personnel moves at Valspar in the last few months. In February, William L. Mansfield, who had been COO, was named president and CEO, with Richard M. Rompala continuing on as chairman of the board. In addition, Paul Reyelts was promoted to executive vice president and CFO.
"Our business is fundamentally strong and I believe we have the people, strategies and resources to thrive in the global marketplace," said Mansfield when he took over the CEO post. "I remain committed to Valspar's growth objectives, our focus on being the preferred supplier to our customers worldwide and to achieving outstanding returns for our shareholders."
How is the company faring so far in 2005? Net income for the first six months of fiscal 2005 was $50.9 million compared with $57.4 million for the same period a year ago, while sales for the first half rose 10.8% to $1.26 billion. "As expected, rising raw material costs have continued to constrain our financial results," Mansfield said. "We have responded with across the board increases in selling prices and continued focus on expense controls. As a result, we have made considerable progress in restoring our margins and expect a significant improvement in our second half financial performance."
One way the company has been working to protect its margins is by raising prices. Valspar issued a price increase on industrial powder products of 15% and on all liquid and electrocoat products five to 15% effective March 1.
SALES: $2.3 billion
HQ: MEDINA, OH USA
WEB SITE: WWW.RPMINC.COM
KEY PERSONNEL: Frank C. Sullivan, president and CEO; P. Kelly Tompkins, senior vice president, general counsel and secretary; Ronald A. Rice, senior vice president, administration; and Robert L. Matejka, vice president and CFO.
Major Products: Industrial and consumer coatings and related products sold through a number of subsidiaries operating around the world.
New Products: Epoxy Shield.
Recent Acquisitions: AD Fire Protection Systems (Carboline), National Building Facilities Services (Stonhard), Okon, Inc. (Zinsser).
* RPM has made more than 50 acquisitions over the last two decades, and its most recent occurred just last month. RPM's Carboline Company acquired AD Fire Protection Systems, an international provider of fireproofing products for the protection of structural steel. AD Fire, based in Toronto, Canada, has annual sales of approximately $18 million (Canadian), stemming from its range of water-based intumescent fireproofing for exposed architectural steel, light and heavy weight cementitious fireproofing for concealed structural steel and fire-stopping.
Also in June, RPM's StonCor Group, Inc./Stonhard Division, acquired National Building Facilities Services (NBFS), a regional janitorial and facility care services company operating in the Mid-Atlantic U.S. NBFS, based in Philadelphia, PA, offers daily janitorial and facility care services to businesses that require daily upkeep and regularly scheduled facility maintenance such as healthcare facilities, warehouses/ distribution centers and retail stores. NBFS' existing customer base includes large regional and national companies like Pathmark and ShopRite supermarkets; RiteAid and Eckerd drug stores; Dunkin Donuts, WaWa, and Stop-n-Shop stores; and Office Depot and BestBuy retail stores.
The latter acquisition proves just how diverse RPM's offerings are, and how it is further expanding into the service-side of industry--a strategy that has become more visible throughout the global coatings market. With the acquisition of NBFS, RPM officials say Stonhard will enhance its after-sale service offerings to include on-going facility maintenance, while NBFS can capitalize on Stonhard's existing nationwide network of local territory managers and field engineers to grow its operations from coast to coast.
According to the company, RPM has posted net sales CAGR of 5.3% between 2001 and 2004. At a recent Banc of America Basic Industries Conference in New York. Frank C. Sullivan, president and CEO, highlighted RPM's strong track record, despite major industrial market recession and the challenges and distractions of a national asbestos liability problem. Over the last three years RPM has reduced debt by $290 million, doubled after-tax cash from operations from $75 million to $153 million and funded increasing internal growth and $130 million of acquisitions generating compounded annual rates of growth of more than five percent for sales and more than 19% for earnings.
Going forward, RPM appears more committed to success: it has set a five year strategic plan in motion with a goal of achieving revenue of $3.35 billion and net income of $200 million by 2007.
A strong new product introduction and new market entry for RPM has been a product in its Rust-Oleum business called Epoxy Shield for garage floor coatings. In 2000, RPM, under its Rust-Oleum subsidiary, acquired Epoxy Shield, a water-based garage floor coating for DIYers. This $2 million product line showed strong potential, but lacked the size and scope to serve RPM's large customer base. To grow the Epoxy Shield brand, Rust-Oleum leveraged a wide range of internal resources: technology, marketing, product packaging and distribution. Within four years, the Epoxy Shield brand has expanded into a $20 million business.
SALES: $2.11 billion
HQ: UITHOORN, THE NETHERLANDS
WEB SITE: WWW.SIGMAKALON.COM
KEY PERSONNEL: Pierre-Marie De Leener, CEO SigmaKalon; Kees van der Kolk, director of research; P. Malmartel, CFO; Richard Burgin, general counsel; J. Wllemse, general manager; Ken Partington, coatings marketing director and Deco International; Jean-Louis Baudhuin, coatings technical director; Jean-Marie Greindl, Deco France; Phil Evans, Deco UK & Ireland; J. Vos, Deco Northern Europe; Senno van de Velde, marine and protective; and L. Jacobs, industrial coatings.
Major Products: Decorative, marine, protective and industrial coatings.
New Products: SigmaGlide, Johnstone's No Ordinary Paint (relaunch), Sigma Colour Wizard computer software (Middle East), Trilak Fresco, Johnstone's Acrylic Matt, Johnstone's Aqua and Sigma S2U Nova Satin.
Recent Acquisition: Triga Color.
* A global player in decorative, marine, protective and industrial coatings, SigmaKalon boasts a staff of approximately 10,000 in 40 different countries. The company reported 2004 sales of approximately $2.11 billion.
Decorative coatings accounts for the majority of the company's activities (approximately 75%), and within this category, SigmaKalon's brands hold leading positions in France, the UK, the Benelux, Poland, Slovakia and Czech Republic.
SigmaKalon has taken a liking to the latter market, making a pair of acquisitions there in 2004. In June it acquired Primalex, a wall paint maker in Czech Republic and Slovakia, and in November it acquired an 80% stake in Triga Color from GIMV Czech and Slovak SME Fund and company founder Lubomir Jansta. With sales of approximately 18 million [euro], Triga Color is one of the leading distributors of decorative paint and paint-related products in the Czech Republic. The company operates five distribution centers and it has more than 50 owned and franchised shops in all parts of the country, trading under the names Dum Barev, Morava Color and AB Color. Jansta will remain with the company as the general manager, according to SigmaKalon.
"We are delighted to have acquired a controlling interest in the Czech Republic's leading distributor of paint and decorating sundries," said SigmaKalon CEO Pierre-Marie De Leener. "We are happy to further strengthen our presence in Central Europe and in this country in particular."
11 NIPPON PAINT
HQ: OSAKA, JAPAN
WEB SITE: WWW.NIPPONPAINT.CO.JP
KEY PERSONNEL: Hiroshi Fuji, representative director, chairman; Teruyoshi Fujishima, representative director, president; and Shizuo Katsunaga, representative director, executive vice president.
Major Products: Automotive, protective, architectural, marine and industrial paint and coatings.
* In 1881, Haruta and Jujiro Moteki, two brothers who wanted to branch out from zinc oxide manufacturing, began to experiment with the production of paste paint. Along with Heikichi Nakagawa, the chief engineer of the Imperial Navy Dockyard's Painting Team, the brothers formed their own company called Komyosha. In 1898, the company was incorporated and the name was changed to Nippon Paint Manufacturing Co. Ltd., which has since grown to become one of the world's leading paint manufacturers and Japan's largest coatings maker. Today, Nippon paint manufactures finishes for the architectural and DIY markets and protective coatings for automobiles and heavy duty industries.
Marking its 120th anniversary in 2001, company management put forth an ambitious vision that was to carry it through the first five years of the new century. The goals were to "achieve global growth as a specialty company of valuable paint films, and to consider environmental preservation and reduction of energy consumption in all our activities. While doing so, we will work on enhancing profitability that puts us among the world's leading paint makers," the company said.
NIPPON PAINT MUSEUM SHOWCASES JAPAN'S PAINT HISTORY AND ITS OWN At the Nippon Paint Company Museum, visitors can survey the company's evolution through a collection of documents and historical materials, including what Nippon Paint contends is the oldest paint sample stand in Japan (painted by Heikichi Nakagawa) and a hand roll mill used for kneading color to the original permit granted to its founders.
SALES: $1.85 billion *
HQ: ST. PAUL, MN USA
WEB SITE: WWW.3M.COM
KEY PERSONNEL: W. James McNerney, Jr., chairman/CEO; Jay V. Ihlenfeld, SVP, R&D; Steve J. Landwehr, EVP, transportation; Jean Lobey; EVP, safety, security & protection services; Moe S. Nozari, EVP, consumer and office; Brad T. Sauer, EVP, health care; Harold J. Wiens; EVP, industrial. R&D--Peter M. Koel (industrial and transportation) and Charles W. Boeder (safety, security & protection services). Also: H.C. Shin, industrial adhesives and tapes; Jeffrey R. Lavers, automotive aftermarket; and Sandra K. Tokach, aerospace and aircraft maintenance. Major Products: Coatings, adhesives, sealants and related products used in diverse applications and markets.
Major Products: Coatings, adhesives, sealants and related products used in diverse applications and markets
* From teeth to boats to buildings and then some, if it needs to be bonded or sealed, odds are 3M has a solution. In addition, the company manufactures an array of coatings, grouts and concrete sealing products too, making it one of the most diverse makers of products in our market. (Due to changes in how we are reporting 3M's sales of coatings, adhesives and sealants, Coatings World is estimating its value at approximately $1.85 billion; the company's total annual sales in 2004 were $20 billion, an 8.9% gain over 2003.)
The company's adhesives, sealant and coatings products are found throughout its seven business units, including industrial (where 2004 sales rose 13.1% with double-digit growth reported by its industrial adhesives and tapes businesses), healthcare (where it sells ESPE RelyX Unicem self-adhesive universal resin cement for dental applications); transportation (a unit that makes adhesives used to repair and maintain cars, aircraft, boats and other vehicles) and safety, security and protection services (where its roster features fire protection products such as caulks and sealants).
3M's research, development and related expenses totaled $1.143 billion, up from $1.102 billion in 2003 and $1 billion in 2002. R&D, covering basic scientific research and the application of scientific advances to the development of new and improved products and their uses, totaled $759 million in 2004, a $10 million increase over 2003.
13 KANSAI PAINT
SALES: $1.83 billion
HQ: OSAKA, JAPAN
WEN SITE: WWW.KANSAI.CO.JP
KEY PERSONNEL: Shoju Kobayashi, president; Otani Toshinobu, executive managing director; Yuzo Kawamori, managing director (marketing); and Sinichi Mamatsu, managing director (R&D).
Major Products: Automotive OEM and refinish coatings, industrial coatings, decorative paint, marine and protective coatings.
* Kansai Paint is Japan's second largest coatings manufacturer and a major player internationally. Approximately 95% of its sales stems from coatings; the company also defines a small sector of its sales as "new business," which includes communications, electronics and biotech.
Kansai Paint has plants in Amagasaki, Ono, Nagoyra, Hiratsuka and Kanuma and an R&D center in Kirtasuka.
14 H.B. FULLER
SALES: $1.4 billion
HQ: ST. PAUL, MN USA
WEB SITE: WWW.HBFULLER.COM
KEY PERSONNEL: Albert P.L. Stroucken, chairman, president and CEO; John Feenan, SVP, CFO; Hans Feix, president and CEO, EFTEC North America LLC; Jose Miguel Fuster, group president, GM Latin America; Stephen J. Large, group president, GM Full-Valu/Specialty Group; Walter Nussbaumer, group president, GM Europe; Ed Snyder, VP and chief process improvement officer; and Michele Volpi, group president, GM global adhesives.
Major Products: Adhesives and coatings.
New Products: Alloren metallic powder coatings.
* H.B. Fuller's operations are organized into two distinct business segments--Global Adhesives and Full-Valu and Specialty. Global Adhesives is H.B. Fuller's largest operating segment, representing approximately 70% of the company's global sales. This segment is comprised of strategic business units supplying adhesive products for assembly applications, converting, footwear, nonwovens as well as automotive (through a joint venture with EMS-Chemie AG). Full-Valu provides integrated products and services via two businesses--Adalis Corp., which offers solutions for corrugated and folding carton packaging and engineered wood industries, and a window division, which makes products used for the assembly of insulated glass and windows.
H.B. Fuller's Specialty unit includes three businesses. Fuller's consumer unit encompasses adhesives, sealants and coatings for the construction, craftsman and do-it-yourself markets in Asia-Pacific and liquid paint for interior and exterior, architectural, automotive, marine and industrial applications in Latin America. It also includes H.B. Fuller Powder Coatings and Specialty Construction Brands, with Tec products (focused mainly on flooring) and Foster products (mastics, coatings, sealants and adhesives for the thermal insulation, indoor air quality, asbestos abatement and HVAC markets).
All told, these business delivered sales of $1.4 billion in 2004--a 9.5% increase over 2003--with Global Adhesives sales at $987.2 million and Full-Valu/Specialty delivering revenues of $422.4 million.
In February, H.B. Fuller announced plans to form joint ventures with Sekisui Chemical Company in Japan and China. In Japan, Sekisui and H.B. Fuller will merge their Japanese adhesives businesses to create a new entity named Sekisui-Fuller Company, Ltd. Sekisui will control 60% of the new entity, while H.B. Fuller will retain an option to increase its equity ownership to 50% after two years. Sekisui-Fuller Company will be one of the largest industrial adhesives businesses in Japan with approximately $150 million in sales and considerable strength in the assembly, packaging and nonwoven segments, according to H.B. Fuller.
For H.B. Fuller, 117 Kaizen events generated approximately $2.1 million in savings while improving everything from waste reduction to customer satisfaction.. So just what is a Kaizen event? From the Japanese word for continuous improvement, is a focused effort over a short period of time that employs the organized use of common sense to improve safety, cost, quality, speed of delivery and responsiveness to customer needs. In Panama, a Kaizen event helped employees reduce the time it takes to manufacture paint, improving production time by 26% and eliminating the need for temporary staffing in the high season.
In China, H.B. Fuller will sell a 20% equity interest in its China operations to Sekisui. Sekisui will retain an option, exercisable after two years, to increase its equity ownership in the company to 30%.
"We are excited to be joining forces with Sekisui Chemical Company. This joint venture unites two complementary businesses in a strategic alliance that will create a strong market participant in one of the fastest growing regions of the world," said A1 Stroucken, H.B. Fuller's chief executive officer.
SALES: $1.2 billion
HQ: TAYLOR, MI USA
WEB SITE: WWWMASCO.COM
KEY PERSONNEL: Richard A. Manoogian, chairman of the board and CEO, Masco. Behr Process--Jeffrey D. Filley, president; Christopher E. Jones, vice president of manufacturing and engineering; Scott Richards, SVP, marketing. Vapor Technologies--Michael S. Walsh, Jr., president and CEO; Dan Hellman, marketing manager. Masterchem Industries--Stanley G. Korte president, Jim McDerby, director of operations; Jason Caldwell, plant manager; Sherry Nelms, purchasing; and Jeff Schutte, vice president of marketing.
Major Products: Architectural and decorative paints, coatings and stains
New Products: Behr Premium Plus.
* Masco's decorative architectural sector includes its paint and stains business, spearheaded by high-profile Behr Process Corp. (based in Santa Ana, CA) as well as Masterchem Industries (Imperial, MO) and Vapor Technologies Inc. (Longmont, CO).
According to Masco, net sales of architectural coatings, including paints and stains, comprised approximately 10% of the company's consolidated net sales ($12.1 billion) for the year ended December 31.
Overall, the company's decorative architectural product sector-which includes coatings as well as hardware and other items-saw a sales increase of 11% in 2004, in part due to higher unit sales volume of paints and stains. One reason for the gain could be the enhanced paint-buying experience Behr developed at 1,500 Home Depot stores in the U.S.
16 ROHM AND HAAS
SALES: $1.149 billion
HQ: PHILADELPHIA, PA USA
WEB SITE: WWW.ROHMHAAS.COM
KEY PERSONNEL: Raj Gupta, chairman, president and CEO; Alan Barton, VP and business director, coatings; M. Reggie Home, GM, North America region (powder); Robert C. Linsdell GM, European region (powder); Scott Chien, GM, Asia Pacific region (powder); Thomas P. Frauman, global marketing director (powder); Douglas S. Cinoman, global R&D director (powder); Elbert Prado, global operations director (powder); Barry S. Snyder, global director of research (adhesives and sealants); and Jonathan J. Hastings, GM, European region (adhesives and sealants).
Major Products: Coatings, adhesives and sealants.
* Rohm and Haas' powder and automotive coatings sales were $456 million in 2004, and its adhesives unit recorded sales of $693 million. (The company's coatings business also includes raw materials for use in architectural and functional coatings--although this $1.9 billion business is not included in our ranking.)
According to Rohm and Haas, automotive coatings sales ($114 million in 2004) were driven primarily driven by the favorable impact of currencies, share gains in the North American market and good growth from new products that provide higher end finishes in new car markets. Gains were partially offset by lower selling prices.
Powder coatings sales rose six percent to $342 million due to the favorable impact of currencies and a slight increase in selling prices offset by lower demand, especially in the European Region, according to the company. Rehm and Haas appears to be altering its powder coatings manufacturing operations to more closely mirror changing market demands. Those alterations include changes in its manufacturing locations. Rohm and Haas opened a new powder coatings facility in Qingpu District, Shanghai, China in April--marking its first powder plant in Asia. More recently, it announced plans to consolidate its North American powder coatings operations to two sites. Rohm and Haas will shutter its Wytheville, VA plant by the first quarter of next year and transfer production to its Warsaw, IN and Reading, PA facilities.
Rohm and Haas' adhesives sales were $693 million in 2004, an increase of 10% over 2003. Europe is the unit's largest market, representing approximately 43% of sales. North America is the second largest geographical sector with 37%, followed by Asia-Pacific at 13% and Latin America at seven percent. Rohm and Haas said 2004 sales were primarily driven by the impact of favorable foreign currencies, selling price improvements and higher demand. North American demand was up in many markets, due to overall solid economic growth. Higher sales in Asia-Pacific and Latin America were driven primarily by packaging and pressure sensitive adhesives, the company said.
For the adhesive operation, earnings from continuing operations were $34 million in 2004 compared to $8 million in 2003. Rohm and Haas attributed the increase to higher selling prices, higher demand, the favorable impact of currency and favorable operations.
Still, the company sees room for improvement, stating "continued improvement plans may be needed to meet our expectations and could result in material restructuring and asset impairment charges."
SALES: $1.13 billion *
HQ: BAAR, SWITZERLAND
WEB SITE: WWW.SiKA.COM
KEY PERSONNEL: Ernst Bartschi, CEO; Markus Zenhdusern, CFO; Alexander Bleibler, head of construction chemicals division; Jan Jenisch, head of industry division; Robert A. Petrisko; head of R&D; William E. Loven, regional manager North America; Marcel Smit, regional manager Asia/Pacific; Silvio Ponti, regional manager Europe North; and Jose Luis Vazquez, regional manager Europe South.
Major Products: Adhesives, sealants and related construction chemical products.
* Sika AG makes many types of sealing, bonding and other construction-related products, including adhesives and sealants as well as concrete admixtures, industrial flooring and mortars.
According to the company's annual report, its elastic bonding and sealing business--part of its constructions sector-was up 23A% in 2004, resulting mainly from its entry into the North American bonding market and improved market penetration in Central Europe.
Within the industrial sector, Sika's automotive adhesives business fared 16% better, with the introduction of SikaPower adhesive "especially successful."
While Sika's automotive aftermarket sector recorded a 3.3% gain, in the transportation industry (products for buses, trucks and railcars), it tallied a 16.1% increase.
SALES: $1.02 billion *
HQ: MEXICO CITY, MEXICO
WEB SITE: WWW.COMEX.COM.MX
KEY PERSONNEL: Marcos Achar Levy, CEO; Leon Cohen, managing director; Kent Child, CEO of Professional Paint; and Dan Colbourne, CFO of Professional Paint.
Major Products: A wide range of coatings and related products, including architectural, automotive and industrial formulations.
* Based in Mexico, COMEX made quite a splash north of the border last year when it acquired Professional Paint, Inc. Prior to the purchase, COMEX operated 3,000 paint stores and had sales of approximately $520 million, and a 52% share of the Mexican market. As the new owners of the PPI stable, COMEX has become a North American coatings powerhouse.
Marcos Achar Levy, CEO of COMEX, told Coatings World last year, "Comex is excited by the prospect of partnering with a proven company that can build significant share in the market from Canada to Panama."
As was the case whenever PPI acquired smaller paint business, the individual units of Kwal Paint, Frazee, Parker Paint, General Paint, Steller Kwal and Duckback will continue to operate as independent units, opting to leverage its strength when it comes to purchasing raw materials, according to a source close to the company.
COMEX operates five manufacturing plants, which produce more than 6,000 products including architectural, industrial, maintenance and automotive coatings. It is also vertically integrated, manufacturing some of its own raw materials and packaging. COMEX also runs the Polymer Research Center, an R&D facility in Tepexpan, and La Ribeira Center, a training facility.
19 AB WILH. BECKER
SALES: $945.4 million
HQ: HOGANAS, SWEDEN
WEB SITE: WWW.BECKER.SE
KEY PERSONNEL: Ulf G. Linden, chairman; Magnus Lindstam, managing director; Ralph Kabalo, key manager, Becker Industrial Coatings; Michael Henderson, key manager, ColArt; Aled Roberts, key manager, Becker Powder Coatings; and Kaj Brandt, key manager, Becker Acroma.
Major Products: Wood finishes, powder coatings and artists materials.
* Wholly owned by Lindengruppen AB, AB Wilh. Becker has overall responsibility for accounting, finance and information, while each of its business areas conduct their operations with a considerable degree of autonomy.
Becker Industrial Coatings (BIC), which is a European market leader in coil coatings, is also a major supplier of specialty coatings for industrial finishing of metal and plastic substrates.
Becker Acroma makes lacquers, paints and stains for the woodworking industry. It has its own operations in Europe and North America through its own companies and production resources, while in the Asia-Pacific region, Becker Acroma's products are distributed to selected markets via sales and service companies.
ColArt owns three out of the six largest and most famous brands of artists' colors in the world including Winsor & Newton, Liquitex and Lefrance & Bourgeois. In recent years, this unit of AB Wilh. Becker has expanded production to eight factories worldwide, two of which are in China.
SALES: $945.3 million
DEUTSCHE AMPHIBOLIN-WERKE VON ROBERT MURJAHN STIFTUNG & CO. KG
HQ: OBER-RAMSTADT, GERMANY
WEB SITE: WWW.CAPAROL.DE
KEY PERSONNEL: Klaus Murjahn, managing director, Caparol Group of companies. Other key personnel: Peter Merviglia, Reinhold Heinzle, Uwe Possin and Rainer Rencker
Major Products: Facade paint, renders/plasters, interior paints, colorants, alkyd resin range of enamels, acrylic enamels, decorative coatings and industrial coatings.
* With an R&D staff of 100 and 12 manufacturing facilities, DAW makes a number of architectural/decorative coatings as well as thermally insulating composite systems, coatings for floors, concrete and roof surfaces and systems for water protection. Its most well-known brand name is "Alpinaweiss," which has been sold under this name since 1901 and is the market leader in Germany for emulsion paints.
For more than a hundred years, this family-run company has been producing paints in Odenwald, a forested area south of Darmstadt. It has taken over Lacufa AG, a producer of varnishes and paints in Berlin, which has various locations in the former East Germany.
DAW also serves markets outside Germany, through production companies in Austria, Italy, Sweden and France as well as sales companies in Switzerland, Holland, Belgium and almost all Eastern European countries, including Russia.
Today, DAW has more than 3,700 employees. Some 1,300 work at the Ober-Ramstadt facility, which is the heart of its production base, helping the company tally sales of $945.3 million in 2004.
In the past year, DAW says it has made substantial efforts to modernize its sales structure, bringing together Caparol, Disbon and Capatect brand names in a new sales company trading under the name of Caparol Farben Lacke Bautenschutz GmbH & Co Vertriebs KG. DAW says the change reflects not only its commitment to the future, but to becoming an international player.
DAW officials say substantial investment in production and sales is planned in the near future for its foreign subsidiaries. And despite strong pressure from the competition and increased concentration in the company's field, its intention is to continue to exist as a "healthy, independent family business," the company said.
21 BENJAMIN MOORE
SALES: $915 million *
HQ: MONTVALE. NJ USA
WEB SITE: WWW.BENJAMINMOORE.COM
KEY PERSONNEL: Yvan Dupuy, chairman and CEO; Denis Abrams, president and COO: Dan Claybaugh, director of marketing; Carl Minchew, technical director: Jeff Spilane, professional products marketing manager; Robyn Spritzer, senior consumer marketing manager; Doty Horn, director of color and design; and Ray Gomez, manager of creative services.
Major Products: Architectural and decorative paints, coatings and finishes and industrial coatings.
New Products: Universal Wall Grip, Studio Finishes glazes, Color Samples and Pocket Palette.
* Berkshire-Hathaway-owned Benjamin Moore, a leader in architectural finishes, continues to roll out not only new products as well as new tools that will help its customers--be they professional painters, designers or homeowners--purchase and use their paints and coatings.
For example, to make it easier to test colors in real-world conditions, the company has added two-ounce sample pots (perfect for a 2' x 2' two-coat application).
To make color specification as easy as pushing a button, Benjamin Moore has created a portable color palette search instrument, the Pocket Palette, which allows contractors and designers to match existing colors on horizontal, vertical and three-dimensional substrates. With a simple click, a sample is matched to the closest Benjamin Moore color and stored electronically for future reference. When reading complex patterns the device will provide an average of all colors combined. There are more than 3,200 colors programmed into Pocket Palette.
Benjamin Moore has again been voted the No. 1 choice of paint by interior designers in a poll conducted by House & Garden magazine. The results of the second annual "The Best on the Best" survey were reported the magazine's April issue. "The design community has spoken again," said Dan Claybaugh, director of marketing for Benjamin Moore, "and, it is gratifying to know how highly they regard the Benjamin Moore brand and products. Benjamin Moore continually strives to exceed the expectations of design professionals, knowing they rely on us to deliver outstanding quality and performance plus unsurpassed color offerings. We are extremely proud to be named their favorite paint again this year and to be cited among such a prestigious collection of designer-specified materials and furnishings."
SALES: $903.4 million
HQ: SANDEFJORD, NORWAY
WEB SITE: WWW.JOTUN.COM
KEY PERSONNEL: Odd Gleditsch dy, Jotun's chairman of the board of directors; Knut Almestrand, president and CEO (until the end of 2005); Bjorn Naglestad, group executive vice president, Jotun Dekorativ; Erik Aaberg, group executive vice president, Jotun Paints; Morten Fon, group vice president, Jotun Coatings; Larry McNeely, group executive vice president, Jotun Powder Coatings; Knut Oivind Malmin, purchasing; Sverre Maaren, HSE; and Bent W. Haflan, R&D.
Major Products: Decorative paints and marine protective an powder coatings
New Products: SeaForce 30, SeaForce 60, SeaForce 90 and Hardtop Flexi (global launch).
* As president and CEO, Knut Almestrand wrote in Jotun's annual report that 2004 was a milestone in the Jotun Group's 78-year history.
Jotun recorded "exceptional results" in 2004, including an operating profit of approximately $67.2 million. "This is impressive in itself, but even more so given the weak U.S. dollar and rising raw material prices--factors which are beyond our control," Almestrand said.
Organic growth led to new records in both production and earnings, and "heavy investments" are putting the Swedish paint maker in a good position for continued growth.
Almestrand, who will retire this year, will pass on that good position to Morten Fon, who was named the next president and CEO for Jotun Group (see As We Go to Press on page 8). Almestrand spent 37 years with the company and seven years as president and CEO.
Fon is looking forward to the challenges of his new role. "Jotun has a special importance in Norwegian and international industry and the position is an exciting challenge," said Fon. "Jotun has gained a great deal of experience internationally with many skilled employees and I look forward to helping the group to develop further."
Future developments will come thanks to aggressive investment and expansion efforts. In 2004, Jotun opened new factories in Dubai, Pakistan and Vietnam, upgraded existing facilities to ensure capacity can keep pace with demand and poured funds in innovation and product development during 2004. Total investments amounted to approximately $68 million, according to officials, and Jotun plans to keep up the pace with projects in China and Indonesia.
Selling in Asia is not a new strategy for Jotun. The company began selling paint in Vietnam as early as 1992 and in 1998 production began in Binh Dong, which is close to Ho Chi Minh City. Today, Jotun is the leading manufacturer of marine and protective coatings for industrial and offshore markets in Vietnam. In November Jotun unveiled its expanded production facility in Vietnam, which will produce both waterborne and solvent-based paint. The facility will have a total production capacity of 13 million liters, which is far ahead of its present production capacity of 1.3 million liters.
As for China, Jotun has been operating there since 1993, having formed Jotun Ocean Paint Co. Ltd., a joint venture with Cosco, a Chinese state shipping company (prior to that, products were imported from Singapore). Jotun Ocean Paint, which concentrated on marine coatings deliveries to the shipbuilding and dry-docking segments, gained a fair share of the market, despite growing competition from international players and domestic producers, according to Jotun's head of Chinese operations.
Today, Jotun China, which includes Jotun's Hong Kong business, entails three companies, eight sales offices and 400 employees. Marine products account for 70% of sales, and protective coatings now account for 25%. In addition, Jotun's decorative paint sector is also up and running. With such expansion--and the market's potential--Jotun realized its 15 million liter plant in Guangzhou and supplementary imports won't be enough. Therefore, a $27 million plant near Shanghai is expected to come on stream in January.
SALES: $726.04 million
HQ: LYNGBY, DENMARK
WEB SITE: WWW.HEMPEL.COM
KEY PERSONNEL: Pierre Yves Jullien; group president and CEO; Carsten Bennike, group executive vice president supply chain; Jacob Gulmann, group vice president, regional business-Northern Europe; Mark Rees, group vice president, regional business-Southern Europe; Jens Tommerup, group vice president, regional business-China; Susanne Ongor, group vice president, HR/culture; Martin Wiese group vice president, R&D; and Bertrand Lauret, group vice president, marketing.
Major Products: Marine, protective, container, decorative and yacht coatings.
New Products: Hempasil Nexus.
* Hempel saw an increase the volume of paints and coatings sold in 2004 to 214 million liters the highest volume ever sold by the group--and sales rose some nine percent, despite the fall of the U.S. dollar. Still, the company said results were disappointing, as operating profit fell by 23% and net profit dropped 26%.
"We have made significant savings, but they do not balance the increase in raw material costs over the last year," said Pierre-Yves Jullien, group president and CEO, Hempel Group. "We increased sales prices last year to reflect a portion of the raw material price increases and we will do the same again in 2005."
Jullien was appointed to his post in February, following the resignation of Ditlev Engel in November 2004.
Jullien is heading a newly refocused Hempel, which has decided to create a "functional-based" organization rather than a geographical one. By doing so, it contends it will be able to achieve long term goals laid out in a overall strategy plan, with particular focus on supplying the best service and products to its customers and developing Hempel to its full potential. The company contends that the new set-up makes it more client-focused and service-oriented.
SALES: $590 million *
HQ: OSAKA, JAPAN
WEB SITE: WWW.DNT.CO.JP
KEY PERSONNEL: Masfumi Toyomatsu, president and Yasuhide Tanabe, vice president.
Major Products: Heavy duty, industrial, automotive (OEM and refinish) and marine coatings and decorative/architectural paint.
* Established in Japan in 1929 as a manufacturer of anticorrosive paint, DNT's products range from DIY decorative paint to paint for high-speed trains.
SALES: $547.29 million
HQ:: VANTAA, FINLAND
WEB SITE: WWW.TIKKURILA.COM
KEY PERSONNEL: Visa Pekkarinen, president and CEO
Major Products: Decorative and industrial paint and coatings.
Recent Acquisitions: 51% stake TOB Kolorit Paints (Ukraine).
Recent Divestiture: Tikkurila Coatings Ltd (UK).
* Owned by Kemira, Tikkurila sells its coatings in the decorative/architectural market and the industrial market (wood finishes and coil coatings). Its 2004 sales were approximately $547.39 million, on par with 2003 results. Operating income rose by 30% on the previous year. Tikkurila's results include capital gains on the sale of property, plant and equipment, reorganization expenses and other non-recurring items, the net effect of which was a credit of about 3.9 million [euro] to operating income, the company said.
Overall, decorative paint sales rose three percent, and in areas such as Baltic countries, growth was markedly higher. Tikkurila said growth in net sales was offset by disposal of the unit's own paint stores in Sweden. On the industrial coatings side, the company recorded a four percent decline in net sales, which it attributed to the closure of its unit in The Netherlands at the end of 2003, among other things.
There were other changes for Tikkurila in 2004. An industrial coatings unit operating in the UK was sold and its Irish industrial coatings unit was sold to local management. In September, Tikkurila acquired 51% of Kolorit Paints, a Ukrainian manufacturer of water-based lacquers and paint product with sales of approximately $2 million and a facility in Kiev. The share in Kolorit Paints will strengthen Tikkurila's market position in the CIS area, and especially in the Ukraine, where it has been exporting paint and coatings since the 1980s.
SALES: $523 million *
HQ: MONSTER, GERMANY
WEB SITE: WWW.BRILILUX.DE
KEY PERSONNEL: Peter Konig, Franz Wilhelm Konig, Julius Schroder and Michael Thompson.
Major Products: Paints, lacquers, varnishes and adhesives for decorative and industrial application.
* Originally known as Hobrecker & Konig back in the 1880s, Brillux is now in its fourth generation of independent ownership by the Konig family. Based in Munster, the company has four plants in Germany--Munster, (its main plant for paint, lacquers and varnishes), Herford (plaster and adhesives), Malsch (water-based products) and Unna (industrial lacquers).
SALES: $465.5 million
HQ: ZURICH SWITZERLAND
PHONE: 41 44 868 2525
WEB SITE: WWW.FORBO.COM
KEY PERSONNEL: Hans Peter Ming, chairman; Walter Gruebler CEO; and Michel Riva, executive vice president, Forbo adhesives.
Major Products: Industrial adhesives.
* Forbo makes adhesives for industrial applications (automotive, footwear, packaging, furniture, construction, etc.) as well as floor and wall covering adhesives, tile adhesives and smoothing compounds. The company also makes intermediate products used in the manufacturing of adhesive products.
28 ASIAN PAINTS
SALES: $444.27 million
HQ: MUMBAI, INDIA
WEB SITE: WWW.ASIANPAINTS.COM
KEY PERSONNEL: Ashwin Choski, chairman; Ashwin Dani, vice chairman and managing director; Abhay Vakil, managing director; P.M. Murty, president, decorative (India); J.N. Shahani, vice president, industrial (India) and Jalaj Dani, Vice president international operations.
Major Products: Decorative/architectural and industrial coatings.
* Asian Paints has come quite a way since its small beginnings in 1942. The company has become a corporate force, and as India's leading paint company, is double the size of any other paint company in India, according to company officials.
Asian Paints operates in 22 countries and has 29 paint manufacturing facilities in the world, serving consumers in more than 65 countries. In 10 markets it operates through its subsidiary, Berger International Limited; in Egypt through SCIB Paints; in five markets in the South Pacific it operates through Apco Coatings, and in Fiji and Samoa, it also operates through Taubmans.
By category, the company's sales stem mainly from architectural/decorative coatings, representing approximately 85% of sales. It boasts an R&D staff of 225.
Asian Paints' plant at Sriperumbudur is located at the SIPCOT industrial area off the Chennai-Bangalore high-way. The plant, which will have a final capacity to produce 100 million liters of paint per year, will be the firm's largest manufacturing facility. Completed in just 15 months, this plant started commercial operations in March with an initial production output of 30 million liters. The facility (above) will cater to the fast growing market of southern India and will produce only water-based paints, including high-end emulsions products such as Royale.
SALES $381.8 million
HQ: BLACKTOWN, AUSTRALIA
PHONE: 02 9621 6255
WEB SITE: WWW.WATTYL.COM.AU
KEY PERSONNEL: John Ingram, chairman; John Nolan, director and CEO; John Foyle, CEO of Wattyl New Zealand; David Marginson, general manager, Wattyl Australia Pty; Chris Muir, group operations manager; and John Neumann, CEO of Solver.
Major Products: Decorative paints, varnishes, lacquers and special purpose protective coating.
New Products: Low VOC/no odor premium paint sold under the Wattyl i.d banner, Solagard exterior stone finish and Solagard DIY bagged finish.
* Now out of the U.S. market--following the sale of Coronado and Lenmar--Wattyl can concentrate on markets closer to home where it faces stiff competition and a slow economy. Those factors may have played a role in the departure of Ian Jackson, who resigned as Wattyl's managing director in February. He was replaced by John Nolan, who will remain at the post of CEO until a replacement is named, the company said.
The company is looking to make changes to stay competitive, and this spring conducted a review of its business with the assistance of Port Jackson Partners. In June, Nolan made a presentation about the "key areas of focus that will generate the changes needed to establish Wattyl as the premier liquid surface coatings supplier in the Australian and New Zealand markets." Among the immediate initiatives mentioned in the presentation were to streamline the organization structure, relaunch and increase support for key retail brands and implement plant efficiency projects.
One new addition to the company has experience in company revivals. David Marginson joined Wattyl as general manager, Wattyl Australia Pty, in February. He has extensive senior management experience in marketing and selling products through both retail and trade channels. Before joining Wattyl he was managing director of Yates (part of Orica), where he significantly reshaped the business, the company said.
Wattyl is already taking a new stance in the market, relaunching Wattyl i.d as a mass-market, low-VOC premium paint line. Featuring no odor, ammonia or formaldehyde and minimal VOC, the line has also been formulated without the use of alkyl phenol ethoxolate (APE) surfactants.
SALES: $380.8 million
HQ: VICTORIA, PHONE: 61-3-9665-711
WEB SITE: WWW.ORICA.COM
KEY PERSONNEL: Malcolm W. Broomhead, managing director and CEO, Orica; Peter Bailey, general manager, consumer products; Noel Meeham, CFO; Shaun O'Sullivan, general manager, business development; and James Bonnor, general manager, Orica adhesives and resins business.
Major Products: Decorative and architectural paint, wood care products and powder coatings.
New Products: Dulux NeverMiss one-coat ceiling paint, Trimatrx powder coating for MDF and Selley's No More Big Gaps and Liquid Nails Floors & Decks.
* Orica said its paint and wood care sales--part of its Consumer Products segment--rose more than three percent with underlying demand in both trade and retail segments and prices remaining largely unchanged.
Orica has teamed up with a leading MDF board maker (Alpine MDF Industries) to create new powder coated MDF products. The patent pending Trimatrx System incorporates Trimatrx powder coating and the Trimatrx MDF board, which is environmentally friendly with a zero to very low formaldehyde content rating. Trimatrx MDF board can be shaped and routed to a high quality finish, while meeting the "moisture resistant" grade of MDF standards, according to the company.
The powder coating technology, developed by Orica Consumer Products at its research center in Melbourne, was designed specifically for heat sensitive substrates, curing at low temperatures and providing a very good surface hardness, flexibility and chemical resistance. The coating, which is offered in "virtually" all colors and in pearl and textured finishes, is available only through a select group of applicators that have dedicated facilities to handle, apply and test the system, according to Orica.
SALES: $362.37 million
HQ: JOHANNESBURG, SOUTH AFRICA
KEY PERSONNEL: Andre Lamprecht, CEO; Garth Smith, COO and managing director, Barloworld Coatings Australia; Mike Christie, managing director, Barloworld Plascon SA; Ebrahim Moahemd, executive director, Barloworld Plascon Sa and managing director, Barloworld Plascon Africa; Doug Thomas, financial director; and Doug Swanson, managing director, Barloworld Automotive Coatings.
Major Products: Architectural and decorative paint and automotive coatings.
Recent Acquisition: International Chemical Corp., a maker of tinting systems and colorants.
* Barloworld Coatings contends it is "well positioned for growth in revenues and earnings," and it says it has created a new business model which has the potential to drive its results for the next few years. According to the company, the new model was heavily influenced by opportunities in China.
Last year, it opened a representative office in Shanghai and was in the early stages of evaluating its best way to enter the market. Barloworld's business model for China centers on three principal elements: a close alliance in China with an international chemical company; closer ties with Chinese enterprises that have already been identified in four years of "low-key" activity in China; and implementation of a decor effect selling policy, in which the company sells the coating and its application.
Closer to home, at Decorex 2005, Plascon created Plascon Room-by-Room, which showcased the talents of top interior designers and decorators, encompassing retail and fabric houses, creative lighting, innovative accessories and a water feature. In August, Plascon will release its Colour Palette for 2006, a fashionable color range based on international color trend forecasts and tailored by Plascon's color specialists to suit the South African environment.
SALES: $351 million
ARCH WOOD PROTECTION & ARCH INDUSTRIAL COATINGS
HQ: NORWALK, CT USA
WEB SITE: WWW.ARCHCOATINGS.IT * WWW.NATURALSELECT.COM
KEY PERSONNEL: Steve Wisnewski, president; Arch Wood Protection; Ian Hobday, managing director, Arch Industrial Coatings; Huck DeVenzio, marketing, Arch Wood Protection; Petra Deiti, Arch Industrial Coatings; Maurizio Brini, technical director, Arch Industrial Coatings; John Kranjc, technical director, Arch Wood Protection.
Major Products: Wood preservatives and wood coatings.
New Products: LineaBlu water-based wood coatings for European do-it-yourselfers and Wolman E and Tanalith E advanced wood preservatives (copper azole base).
* Arch Chemical's wood protection and industrial coatings business is a global operation with 100 people employed in R&D and nine manufacturing sites worldwide. Wood preservative are made in four sites in the U.S. (Conley, GA, Rochester, NY, Kalama, WA and Valparaiso, IN), England and Australia. Industrial coatings are manufactured in Pianoro and Mariano Comese, Italy and Les Mureaux, France.
In 2004, Arch Industrial Coatings celebrated the 50th anniversary of its founding in Italy. The business is one of the largest wood coatings suppliers in Italy and France, and is also expanding into Europe, North America, China and South America. Its product roster includes lacquers, topcoats, stains and fine finishes, mainly for fine home and office furniture, picture and door frames and other joinery.
Arch Wood Protection is a supplier of wood preservative to wood treatment firms worldwide, including copper-azole wood preservative.
SALES: $335 million
HQ: SAN CARLOS, CA USA
WEB SITE: WWW.KELLYMOORE.COM
KEY PERSONNEL: Herbert R. Giffins, president and CEO; Dan Stritmatter, CFO; Todd Gentry, Vice president-sales; Steve DeVoe, vice president-store operations; Cindie Rutledge, vice president-stores accounting; Jim Maul, vice president-information systems; Doug Merrill, vice president-manufacturing; Mark Zielinski, director of marketing-sundry procurement; and Dan Englert, vice president-technology and raw materials procurement.
Major Products: Architectural decorative coatings/ industrial and high-performance coatings.
New Products: A1610 Acry-Plex 100% acrylic interior eggshell enamel and A1640 Acry-Plex 100% acrylic interior satin enamel.
* Kelly-Moore, an employee-owned paint company, has 150 retail stores and three major manufacturing facilities.
Despite a legal setback late last fall regarding a case with Union Carbide, Kelly-Moore remains committed to growth, and will open 11 new stores this year.
"We believe this expansion plan will allow us to better serve our customers," said Kelly-Moore president and CEO Herb R. Giffins. "Kelly-Moore has been the painter's paint store for nearly 60 years and we are looking forward to another 60 years of success."
In November, company founder William E. Moore died at his home in Woodside, CA. He was 87.
SALES: $303.95 million
CHUGOKU MARINE PAINT
HQ: TOKYO, JAPAN
WEB SITE: WWW.CMP.CO.JP
KEY PERSONNEL: Tetsuo Yamazumi, president.
Major products: Marine, container and industrial coatings.
SALES: $300 million *
HQ: SEOUL, SOUTH KOREA
WEB SITE: WWW.KCCWORLD.CO.KR
KEY PERSONNEL: MongJin Chung, chairman and CEO; Chun Ki Kim, president; Mong Ik Chung, head of administration; and Young Ho Kim, head of overseas business division.
Major Products: Marine paints, cargo container coatings, industrial coatings and decorative coatings.
Major Products: Marine, container and industrial coatings. industrial coatings and decorative coatings.
New Products: Korexane ST1020, Seacare A/F795(H) Red and Seacare A/F795(H) Develop.
* Switching its corporate identity officially to KCC Corp. is an expression of the company's will to strengthen its global network, according to KCC officials.
In October, KCC completed construction of second paint factory in Beijing, China, aimed at meeting demand, particularly from business expected from a new Hyundai/Kia automobile plant being built in the city.
SALES: $295 million *
DAINIPPON INK AND CHEMICAL
HQ: TOKYO, JAPAN
WEB SITE: WWW.DIC.CO.JP
KEY PERSONNEL: Koji Oe, president; Kozo Okumura, chairman and Yasuyoshi Ikeozoe, controller.
Major Products: Coatings and adhesives for a variety of end uses, including beverage cans, optical discs and wood.
Recent Acquisition: Eques Coatings B.V.
* DIC's chemical coating division makes adhesives and coatings including exterior and interior can coatings, coil coatings for building materials and electric appliances, wood finishes and adhesives and sealants for electronics and information materials.
DIC, which commands a 50%-plus share of the global market for UV-curable coatings and adhesives for optical discs, recently expanded it presence in the sector with the March acquisition of Eques Coatings, a European maker of UV curable coatings and adhesives for optical discs. Based in Oss, The Netherlands, Eques was founded as the coating division of Philips Electronics, but become a private company in 1998 in a management buyout.
In addition to coatings for CDs and adhesives for DVDs, Eques also makes specialty coatings or televisions, DVD players and other consumer electronics products. Eques Coatings will continue to manufacture and sell its products under its respective brand names.
SALES: $278.8 million
HQ: SOBORG, DENMARK
WEB SITE: WWW.DYRUP.COM
KEY PERSONNEL: Steen Bjerre, president and CEO; Hanne Lund, executive vice president; Roeland Meijers VP, marketing and application and product development; Allan Dehn Sogaard, VP, information technology; Nis Petersen, VP, corporate purchase; Henrik D. S. Nielsen, VP, supply chain; Francois Corda, manager, France and Belgium; Sten Chrisdam, manager, Nordic; Volker Thiele, manager, Germany and Austria; Ireneusz Struk, manager, Poland; and Eduardo Cevasco, manager, Portugal and Spain.
Major Products: Architectural paint, coatings and stains for DIY, professional and industrial customers.
* When the bulk of your business is wood care and other exterior projects, bad weather is never welcome. That was the case for Dyrup. Unfavorable weather for sales of wood care and other outdoor products--which constitute about 70% of Dyrup's business--led to an unusually short wood care season. In addition, the firm said 2004 was marred by recession in Dyrup's principal markets, with decline in private spending, retail trade and construction.
While in the first half there were tentative signs of an improvement in market conditions and growing consumer optimism in most markets, Dyrup said signs quickly faded, and market conditions grew steadily worse. Revenue and earnings were down from 2003, which the company called "unsatisfactory." It wasn't all bad, though. While revenues dropped three percent, Dyrup held market share overall, and even increased its share in some markets. Declines were most prevalent in Germany and Portugal, the company said. Excluding these two markets, consolidated revenue was down just one percent for the year.
Dyrup said business projects implemented over the past few years contributed favorably to profit, but did not compensate fully for increased raw material prices and persistent price pressure. Distribution costs were up slightly as well, reflecting the fact that Dyrup is investing in its trademarks and its sales and distribution network as a necessary platform for future growth.
38 LORD CORP.
SALES: $275 million *
HQ: CARY, NC USA
WEB SITE: WWW.LORD.COM
KEY PERSONNEL: Rick McNeel, president and CEO; Richard J. Ambrose, VP, research and technology; Ed Gustin, director, business development; Gerald M. Estes, VP, materials; Will C. Hinkston, VP, global operations; Steve Howe, general manager, L/T Technologies; Mark Weih, global market manager for Metal Jacket; and Tony Ciampa, market manager for automotive components.
Major products: Adhesives, sealants and coatings.
New Products: HPC-5C and HPC-5B high performance elastomer coatings, and Chemlok 6253 adhesive.
Recent Acquisitions: L/T Technologies LLC.
* Privately held Lord Corp. makes a variety of adhesives, sealants and coatings for various marketplaces.
Last August, Lord acquired L/T Technologies, a manufacturer of acrylic UV and waterborne coatings for wood products, which had been a joint venture between Lord and Treffert GmbH and Co. KG According to Ed Gustin, director, business development, L/T Technologies allows Lord to grow and improve its offerings for the flooring and panels industries. L/T's coatings, which are typically applied as multi-layer systems by roller coating technology and cured by UV energy, are either micro-and/or nano-particle modified acrylated resins, which yield extreme hardness resulting in high mechanical resistance to scratch, impact and abrasion.
Lord has also developed a number of new products, including Chemlok 6253, a robust adhesive developed to deal with the increasingly higher performance requirements for under-the-hood automotive anti-vibration components. In addition, new HPC-5C and HPC-5B high performance elastomer coatings were developed to improve the oil- and ozone-resistance of various elastomer materials used in automotive, industrial, marine, off-highway/agriculture, aerospace/aircraft and oil drilling type applications, according to the company.
SALES: $267.42 million
ALTANA COATINGS & SEALANTS
HQ: WESEL, GERMANY
WEB SITE: WWW.ALTANA-CS.DE
KEY PERSONNEL: Nikolaus Schweickart, president & CEO, Altana AG; Hermann Kullmer, CFO, Altana AG; Matthias L. Wolfgruber, president and CEO, Altana Chemie AG; and Guido Forstbach, business unit manager coatings--sealants and managing director, Altana Coatings & Sealants GmbH.
Major Products: Coatings and sealants.
Recent Divestiture: Rembrandtin Lack.
* Part of Altana Chemie AG, Altana Coatings & Sealants is headquartered in Wesel, Germany and operates through the following companies: DS-Chemie GmbH, La Artistica Productos Quimicos S.A., Rhenacoat S.A., Rhenania Coatings GmbH, Shunde-Rhenacoat Coating Co. Ltd. and Terra Lacke GmbH. Its coatings are used, among other things, to coat steel, aluminum, plastic, paper and board, while its sealants portfolio comprises sealing compounds for use in food and beverage cans and metal.
In February, Altana divested Rembrandtin Lack, its Austrian subsidiary headquartered in Vienna, to EK Mittelstandsfinanzierung AG, the private equity fund of Bank Austria Creditanstalt AG. Rembrandtin Lack specialized in industrial coatings and road marking paints, generating sales of approximately 33 million [euro] in 2004. EK Mittelstandsfinanzierung AG took over the company, as well as its site in Vienna.
"The sale of Rembrandtin is a logically consistent step in the strategic realignment of Altana Coatings & Sealants, to withdraw from the area of industrial coatings and concentrate on expansion in fast-growing niches of specialty chemicals, such as chemical solutions for flexible packaging," said Guido Forstbach, business unit manager and managing director of Altana Coatings & Sealants GmbH. "We are therefore following the strategy of being only active in areas that require high rates of innovation and a high demand for technical support."
With the sale of Rembrandtin, Altana has moved closer to complete withdrawal from the industrial coatings business and plans to purge any remaining peripheral activities in this area throughout the year.
In September, La Artistica, its sealants subsidiary, signed a strategic licensing agreement with Uruguayan company Promak, in which Promak will produce Artistica's water-based sealants for the South American market; the products had previously been manufactured in Europe. In addition, Altana is looking to La Artistica's new research and production site in Montevideo to help it meet demands of the Mercosur market.
SALES: $265 million *
HQ: LOS ANGELES, CA USA
WEB SITE: WWW.DUNNEDWARDS.COM
KEY PERSONNEL: Michael G. Rose, president/COO; Timothy P. Bosveld, VP, marketing; Dennis R. Kromer, SVP/CFO; Nicholas J. Hess, VP, operations; Gary Hoxie, VP, sales; Andrew H. Gillette, VP, manufacturing; Gil B. Mislang, director, coatings research; Robert Wendoll, director, environmental affairs; Mark Nelson, director of color development; Knox Price, key manager, architectural/engineering services; Ken Laszczak, key manager, new residential services; and Cindy Brommett; key manager, property management services.
Major Products: Architectural/decorative paint and industrial maintenance coatings.
New Products: Perfect Palette color system
* Dunn-Edwards has three coatings manufacturing facilities (Los Angeles, CA, Albuquerque, NM and Tempe, AZ) and has more than 80 stores throughout California, Arizona, Nevada, New Mexico and Texas.
The company's products are showcased on some famous landmarks (the "Hollywood" sign) and high-profile buildings (Mandalay Bay in Las Vegas and Mann's Chinese Theater and the Shrine Auditorium in Los Angeles).
Dunn-Edwards' Perfect Palette, a new color system launched in 2004, received rave reviews from architects and designers who responded to the colors and comprehensive tools for color specifying, according to the company. Its 1,696 colors include 1,400 core colors, 100 shades of white, 96 rich accent colors and 100 classic colors (favorites from the previous system). Dunn-Edwards said it conducted extensive market research with architects, designers, contractors and color experts to determine what they want in a color palette and in the color sales tools: Focus groups of architects and designers selected Perfect Palette as their favorite when compared with six leading competitors, according to the company.
SALES: $264 million
HQ: IZMIR, TURKEY
PHONE: 90-232- 482-22-00
WEB SITE: WWW.DYO.COM.TR
KEY PERSONNEL: Ahmet Yigitbasi, president; Huseyin Celiker, vice president/operations; Yildirim Cullu, vice president/finance; Ertugrul Duru, marketing director; Gulsen Celiker, R&D coordinator; Ha,san Garipler, technical director; Ufuk, Celebisoy, technical director; Buient Eryol, key manager, decorative; Mutlu Uysal, key manager, industrial; Gunther Sthamer, key manager, OEM; and Nlihat Zorlu, key manager, CR.
Major Products: Architectural/decorative paint, industrial and industrial maintenance coatings and auto OEM and refinish coatings
* According to company officials, the largest share of Yasar Paint Group's sales come from the architectural/decorative sector, which accounted for 32% of company sales. Industrial and industrial maintenance coatings follows at 25%. Automotive OEM represents 14% and automotive refinish accounts for 11%.
Approximately 11% of sales can be attributed to Yasar's can coatings, textile and leather finishes, pigment pastes and emulsion polymers.
SALES: $254.9 million
HQ: DOMZALE, SLOVENIA
WEB SITE: WWW.HELIOS.SI
KEY PERSONNEL: Uros Slavenic, president of management board; Marko Vresk, vice president; Matjaz Hafner, vice president; Ales Skok, executive director for decorative coatings; Stevo Buinac executive director for metal coatings; Mladen Mihalec, executive director for wood coatings; Peter Zupan, executive director for car refinishing coatings; and Dasa Tomazin, executive director for powder coatings.
Major Products: Decorative paints, automotive OEM and refinish, industrial coatings and powder coatings.
Recent Acquisitions: Color d.d. (Slovenia).
* "In 2004, Helios achieved solid results, in spite of fast expansion of the group and fierce conditions of business operations in a wider environment. We achieved and even exceeded our planned sales goals," the company told Coatings World. The best results came in decorative coatings, car refinish and metal coatings. In addition, the company said sales volume from its joint venture with PPG has been increasing.
Helios recently invested funds into a new production plant for Chromos, its Croatian company.
43 ROCK PAINT
SALES: $234.93 million
HQ: OSAKA, JAPAN
WEB SITE: WWW.ROCKPOINT.CO.JP
KEY PERSONNEL: Iwao Tsuji, chairman and Shinichiro Tsuji, president.
Major Products: Architectural and industrial paint and automotive refinish coatings.
44 SICO, INC.
SALES: $23&63 million
HQ: LONGUEUIL, CANADA
WEB SITE: WWW.SICO.COM
KEY PERSONNEL: Pierie Duffesne president and CEO; Jean Ouellet, vice president, finance and treasurer; Claude Brosseau, vice president sales and marketing; Denis Blanchette, vice president, business development; Yvon Savaria, marketng director; Marc-Andre Chabot, director; and Robert Deschamps, manager, industrial division.
Major Products: Decorative and industrial coatings, adhesives and sealants.
New Products: Shantung interior paint.
Recent Divestiture: 50% stake in industrial coatings JV Becker.
* 2003 will go down in the record books for Canada's largest paint maker. The company's architectural unit recorded a 9.6% gain in its architectural sector, fueled by the full-year contribution of Para Paints. Industrial sales were stable. However, excluding revenues derived from its 50% interest in the Sico-Becker joint venture divested by Sico in the fourth quarter, sales rose 6.2%, driven by recovery in North American demand as well as new accounts.
Architectural and industrial EBITDA rose 13.5% and 74.7%, respectively. The company said the large jump in EBITDA by its industrial unit stemmed from streamlining and optimization efforts made in 2003, including the concentration of all manufacturing to a single plant.
Shedding its share in a European railway transportation joint venture with Becker was part of the company's plan to "optimize" the company's operating productivity and profitability, particularly that of its industrial sector in North America. In 2003, Sico-Becker's sales added just $5.2 million in revenues, and that declined considerably in 2004, the company said. "We intend to further focus our human and financial resources on the North American industrial coatings market, currently showing encouraging signs of a recovery," said Pierre Dufresne, Sico's president and CEO.
Last month, Sico made an offer to purchase a significant portion of the assets of Napier Environmental Technologies, a Vancouver-based maker of water-based strippers and other environmentally responsible surface preparation products sold in North America.
SALES: $219.2 million
CORPORACAO INDUSTRIAL DO NORTE, SA
HQ: MAIA, PORTUGAL
PHONE: 351 229405000
WEB SITE: WWW.CIN.PT
KEY PERSONNEL: Antonio Serrenho, chairman; Joao Serrenho, CEO: Angelo Machado, member of board; Fernando Jorge Ferreira, CFO; Jose L. Nogueira, technical director; Pedro Reis de Almeida key manager architectural/decorative; Adelino Rodrigues, key manager, automotive refinish and Jorge Vieira; key manager, protective coatings.
Major Products: Architectural/decorative paint and coatings, automotive refinish, industrial coatings and protective coatings.
New Products: Durocin 2K WB water 2 pack polyurethane varnish for wooden floors; Betocryl water-based acrylic for exterior concrete; and Cinoflex RT a flexible acrylic film for facades.
Recent Acquisition: Ibercoat, S.A.
* In addition to three manufacturing sites in Portugal, CIN makes products in Barreiro and Barcelona, Spain, the Canary Islands, Angola and Mozambique.
The firm boasts 113 R&D staffers, including its quality department and technical assistance personnel. The team continues to churn out new products focused on modern materials, such as a new water-based 2-pack polyurethane varnish for wooden floors and a new water-based acrylic for exterior concrete.
Also new from CIN is Cinoflex RT, a flexible acrylic film for the protection of facades, formed partially as a result of UV curing. It remains flexible at low temperatures and it has a high degree of flexibility, maintained throughout the lifetime of the coating, the company said.
At its headquarters in Maia, a fully robotic distribution center has been added, centralizing the group's distribution process in Portugal. According to CIN, the facility makes it better prepared to execute export operations to the Eurozone market as well as other world markets. In the building--which occupies 7,000 sq. meters of space with a reception area--13,600 pallets are stocked.
CIN has reported that it is in the planning phase to build a new plant in Barcelona, which it expects to come on stream in 2007.
SALES: $205 million *
RENNER SAYERLACK S.A.
HQ: GRAVATAI, RIO GRANDE DO SUL STATE, BRAZIL
WEB SITE: WWW.TINTASRENNER.COM.BR * WWW.SAYERLACK.COM.BR.
KEY PERSONNEL: Alexandre Cenacchi, CEO, Renner Sayerlack; and Thomas Gahrmann, director superintendent, architectural, Renner Sayerlack.
Major Products: Architectural and industrial coatings and wood finishes.
* Renner manufactures paints and coatings for the architectural, industrial, marine and wood segments under the familiar logo of a white horse running through a red banner. The company exports its products throughout much of Latin America, North America, Europe and Asia. Main shareholders of the company are Renner Herrmann S.A. and Renner Sayerlack's CEO, Alexandre Cenacchi.
The company markets its architectural line products under the Tintas Renner brand, its industrial products under the Renner Tintas Industrias brand and its wood finish products under the Sayerlack brand. Among primary architectural products is the water-based Rekolor Acrilico Semibrilho, or semi-gloss acrylic line.
Renner's main factory is located at Gravatai, in Rio Grande do Sul, where it manufactures architectural and industrial products. The company also produces wood finishing products at Cajamar, Sao Paulo state. The company has Brazilian sales offices in Salvador, Bahia state; in Varzea Grande, Mato Grosso state; in Curitiba, Parana state; in Aparecida de Goiania, Goias state; and in Belem, Para state.
Outside of Brazil, Renner manufactures multiple lines in Santiago, Chile as Pinturas Renner Chile, and in Montevideo, Uruguay, as Pinturas Renner Uruguay. The company's Minerbio, Italy plant produces wood finishes. Foreign sales offices operate in Buenos Aires, as Sering S.A.; San Lorenzo, Paraguay as Renpar SRL; Minerbio, Italy as Renner Italia S.p.A.; High Point, NC, as Renner USA Corp.; and Mexico City as Rennermex.
Renner has a full research facility, is certified under ISO 9001:2000, and active in various projects to protect the environment. The company offers customers its Multicolor tinting system with 2,200 basic colors available within the 11,000 colors registered in the company databank. Renner also offers consumers access to its Programa Centauro which performs computer simulations of room colors. Packaging includes 0.9, 3.5 and 18 liter unit sizes.
SALES: $199.6 million
HQ: ALPHARETTA GA USA
WEB SITE: WWW.AMERONCOATINGS.COM
KEY PERSONNEL: Stephen E Dickey, group president: Linda Marquez, vice president, worldwide marketing; Christine Stanley, vice president of worldwide technology; Dick van Hot. vice president operations: Robert Claybaker, director, industrial marketing; Tom Brown. director, marine marketing; Jim McCarthy coatings technical director: Steve Feldman, manager, industrial: and Bobby Reaves, manager, marine.
Major Products: Industrial and marine coatings.
New Products: ABC Release.
* Ameron's Performance Coatings & Finishes Group recorded sales of $199.6 million in 2004, a $9.3 million gain attributed to the effects of the strengthening of foreign currencies (primarily the euro) versus the U.S. dollar. Excluding the impact of foreign exchange rates, sales declined in Europe and the U.S., while sales from Australasian operations rose principally on the strength of the coil coatings business in New Zealand.
In March, Ameron opened of a new branch in Busan, Korea. Han Jin, its existing Korean licensee, will toll manufacture for Ameron and continue as a licensee, selling products in the Korean offshore and industrial markets.
SALES: $185.6 million
HQ: ANYANG-SI GYONGGI-DO SOUTH KOREA
PHONE: (82) 31-467-6078
WEB SITE: WWW.DPI.CO.KR
KEY PERSONNEL: Young-Jae Han, chairman and CEO; Jung-Mo Yang, president and CEO and K. S Hong overseas bus ness coordinator
Major Products: Paint and coatings for the general industrial, architectural, general and heavy duty industrial and automotive refinish market.
* DPI's sales rose 6.6% in 2004 to approximately $185.64 million. DPI says it is preparing to "pursue potentially profitable opportunities" and it has "identified in various global markets." To that end, investment in the overseas offices will be beefed up to expand and stabilize its businesses, wrote CEO and president Jung-Mo Yang on the company's web site.
DPI's goal is to become a "major coating company" within 10 years, with sales of $600 million.
49 NATIONAL PAINTS
SALES: $185 million
NATIONAL PAINTS FACTORIES CO. LTD (SAYEGH GROUP)
HQ: ABU ALANDA, JORDAN
WEB SITE: WWW.NATIONALPAINTS.COM
KEY PERSONNEL: Michael Sayegh, shareholder and president: Ibrahim Sayegh, shareholder, Sailm Sayegh shareholder; Mujahed Abu Doleh, investment consultant; Rajeh Saeed, sales director; Ramzi Salameh marketing director; and Kamaljet Singh, technical director.
Major Products: Architectural/decorative paint, industrial coatings, automotive and marine paint.
* National Paints, privately owned by the Sayegh Group, is one of the largest producers in the Middle East, exporting to more than 60 countries.
In 2004, the company purchased Sayegh Conex Paints Company in Romainia and Excel Coatings (Middle East) LLC in Oman. Additionally, the company signed an agreement with Italian Candies Co for special effect paint products and with Rasch Co. for decorative wallpapers.
50 SHINTO PAINT
SALES: $176.6 million
HQ: AMAGASAKI-CITY, HYOGO, JAPAN
WEB SITE: WWW.SHINTOPAINT.CO.JP
KEY PERSONNEL: Harunobu Horibe, chairman, and Akira Kubo, managing director and technical director.
Major Products: Architectural/decorative, industrial maintenance, OEM and automotive coatings.
* Shinto's Shintron D series of anti-static conductive paint for clean rooms meets the requirements of next-generation clean room construction, while its Shintron E series of conductive paints for EMI shielding provides highly effective shielding against electromagnetic interference when applied to electronic devices and data-processing equipment with plastic enclosures.
Major Products: Powder coatings and masterbatches.
SALES: $156 million *
HQ: WELS, AUSTRALIA
WEB SITE: Kurt Berghofer, CEO; Clemens C. Steiner, CEO; Andreas Bauer; global plant manager; Christian Ebenberger, international sales and marketing; Reinhold Freiseisen, CFO; Gerald Hemedinger, R&D-innovations, TAS; Thomas Knoll, sales Europe; Gerhard Kokot, DIY; Lehner Helmut, Color-Batch; Michael Mathe, QM; Inge Neubock, global purchasing; Franz Poschl, administration subsidiaries Europe; Thomas Schmidt, R&D; Gerd Schlager, product development Drylac; and Robert Strouhal, global sales.
Major Products: Powder coatings and masterbatches.
* You can find Tiger's special effect powder coatings on the superdome structure that covers a major intersection of five highways in the Yang Pu District of Shanghai.
Tiger Drylac Canada has opened a new powder coatings manufacturing plant and R&D lab in Vancouver.
52 CLOVERDALE PAINT
SALES: $153 million *
HQ: SURREY, CANADA
PHONE: 604-596-6261 WEB SITE: WWW.CLOVERDALEPAINT.COM
KEY PERSONNEL: Wink Vogel, CEO; Al Mordy, president; Alex Drody, VP-sales and marketing; Paul Schmidt, VP, finance; Marin McKenna, marketing and key manager, dealer/retail; Stu Eaton, technical director; Brian Johnston and Brian Carpenter, key managers, industrial; and Kevin Belton and Rodger Stotz, key managers, trade. Rodda: Thomas J Braden, chairman; Todd Braden, VP, marketing; Bill Boone, VP-sales; Mark Holcomb, VP-operations; Steve Holbrook, buying manager; Jeff Pellatz, controller; Chuck Graves, director-MIS; and Rick Barnard, manfuacturing and factory director.
Major Products: Architectural and decorative paint and industrial maintenance and OEM coatings.
* Cloverdale Paint Inc. (CPI) and Rodda Paint are now taking on the northwest U.S. and Canada marketplaces together, following their merger deal which closed last year. In the agreement, Rodda Paint, which is based in Portland, became a subsidiary of CPI.
Regarding production and R&D, Rodda has an R&D staff of five and CPI has a staff of 15. CPI boasts five manufacturing facilities. Rodda's facility in Portland will churn out up to four million gallons in 2005, according to company officials.
On the retail front, CPI has 60 company-owned shops and 150 authorized dealers in Canada, while Rodda has 43 company stores in Oregon, Washington, Alaska and Idaho. Rodda also supports 27 independent dealer locations.
53 YUNG CHI
SALES: $152 million *
HQ: KAOHSIUNG, TAIWAN
WEB SITE: WWW.RAINBOWPAINT.COM.JP
KEY PERSONNEL: Tien-Yung Chang, director; Tsung Te Han, managing director; and H. L. Shen general manager.
Major Products: A variety of paint and coatings, including architectural, marine, coil and fire protection coatings.
SALES: $150.49 million
HQ: OSAKA, JAPAN
WEB SITE: WWW.TOHPE.CO.JP
KEY PERSONNEL: Toru Sato, president
* Tohpe, based in Osaka, makes a variety of coatings and related products.
55 INDUSTRIAS TITAN
SALES: $145.2 million
HQ: BARCELONA, SPAIN
WEB SITE: WWW.TOHPE.CO.JP
KEY PERSONNEL: Jose Farres Pere, CEO; Jaime Carbonell Petit, financial general manager; Eusebio Gomez de Avila, commercial manager; Antonio Vilaseca Martinez, technical director; and Jose Manuel Azpeitia Fernandez, key manager for powder coatings.
Major Products: Decorative/architectural, industrial maintenance, marine and powder coatings, and fine arts products (oil, water and acrylic colors, poster paints, etc.)
New Products: 2010 Titanlux multi-purpose varnishes and a range of products for humidity control in construction.
* Founded in 1917, Industrias Titan has an R&D staff of 50 and seven manufacturing facilities. The majority of its sales (83%) come from the architectural/decorative market. In 2002, Industrias Titan had a seven percent share of the Spanish paint market (by value), according to IRL.
56 M.A.B. PAINTS
SALES: $140 million *
HQ: BROOMALL, PA USA
WEB SITES: WWW.MABPAINTS.COM
KEY PERSONNEL: Thomas A. Bruder, Jr. president; James. J. Bruder, executive vice president; Michael A. Bruder, executive vice president; James Renshaw, general manager; and George Przybylski marketing director.
Major Products: Architectural and industrial coatings.
New Products: Color Quest.
* Founded in 1899 by Michael A. Bruder, M.A.B. Paints has 230 company-owned stores and independent dealers in 17 states.
Last year. M.A.B. launched Color Quest, its exclusive system that features more than 1,800 colors from the lightest whites, off-whites and pastels to the deepest bold and bright accents. In addition to offering a wide range of shades, M.A.B.'s Color Quest takes the color selection process further; quick pick selections are part of the in-store color display, which allows consumers to easily select color combinations.
M.A.B. has also created a premium designer base line specifically for the Color Quest color system. It offers a basecoat/topcoat system formulated with 100% acrylic and high-quality latex and alkyd resins for both interior and exterior surfaces. To ensure the performance of colors selected from the system, M.A.B. Paints has also developed a universal basecoat, which when used in accordance with the Color Quest designer bases, cuts the amount of coats required by more than 50% for difficult hiding colors.
"We realize offering the highest quality paint is no longer enough to assist our customers," said M.A.B.'s Jim Renshaw. "We are not only a paint manufacturer but also an established color company. M.A.B.'s Color Quest designer system holds a pinnacle position in today's color arena and allows us to provide consumers, designers and painting contractors not only the best selection of color variety in the market today, but the best performance as well."
Major Products: Architectural and decorative paint.
57 ACE PAINT
SALES: $135 million
ACE HARDWARE CORP.--PAINT DIVISION
HQ: MATTESON, IL, USA
WEB SITE: WWW.ACEHARDWARE.COM
KEY PERSONNEL: Richard Bristol, director, Ace Paint division; Jack D. Wickham, director of operations and R&D; Dave Boepple, retailer marketing; Judy King, consumer marketing; and Dennis Centofante, technical director.
Major Products: Architectural and decorative paint.
* It was a good year for Ace. The company recorded a 5.5% gain in wholesale sales in fiscal 2004.
"This was fueled by strong results both internationally as well as in Ace's 2,300 stores that showcase the Color Your Life paint and decor program," Dick Bristol, director of the Ace Paint Division, told Coatings World in January. "We are excited about 2005 and believe it will be a strong year for domestic as well as international paint sales for Ace Hardware."
Ace Paint recently received the highest overall ranking among several leading national brands in a recent study conducted by DL Laboratories, Inc., an independent testing and consulting lab. The study ranked Ace's newly-formulated Royal interior paint number one in four paint finish categories--flat, eggshell, satin and semi-gloss--based on an aggregate number of points scored on a group of tests when compared to certain brands manufactured by Behr, Benjamin Moore, Dutch Boy, Glidden and Valspar. All paint in this study were submitted blindly and with no identification, according to the company.
"These study results support the fact that Ace Paint is a leading paint manufacturer in the industry and showcase our commitment to high quality and innovative paint products," said Bristol.
How many square feet of wails, ceilings and home exteriors will 150 million gallons of paint cover? Remarkably, a projected 45 billion square feet. That astounding figure represents the colorful coverage the Ace Hardware Paint Division has provided to residences and other buildings throughout U.S. and the world during the 20 years it has been churning out paint products exclusively for Ace stores.
The division's 20th anniversary in 2004 occurred the same year Ace, as the industry's largest retailer-owned cooperative, marked its 80th anniversary. And even though it didn't start manufacturing its own paint until 1984, Ace has had its own private label paint since the 1930s.
58 TOA PAINTS
SALES: $128 million *
HQ: BANGKOK, THAILAND
WEB SITE: WWW.TOAGROUP.COM
KEY PERSONNEL: Prachak Tangkaravakoon, executive chairman.
Major Products: Architectural/decorative paint and wood, OEM, heavy duty and powder coatings.
* TOA Paint is part of TOA Group, one of Thailand's leading industrial companies.
59 VOGEL PAINT
SALES: $125 million
HQ: ORANGE CITY, IA USA
WEB SITE: WWW.VOGELPAINT.COM
KEY PERSONNEL: Drew F. Vogel, president and CEO; Doug Vogel, vice president, decorative; Mark Vogel, vice president, industrial; and Bert Aarsen, CFO.
Major Products: Decorative, industrial and special purpose paint and coatings.
* Vogel Paint and Wax debuted in 1926 when Andrew Vogel--who wasn't having much success in the farm business--realized that the paint available to him was inferior to that which his family made in Holland. So Vogel began to manufacture a red barn paint and a white house paint in his garage.
Today, Vogel Paint is $100-million-plus family-run firm--quite a feat in this competitive market--and its color collection has come a long way too: its new StudioCollection palette features 1,320 colors.
60 GREBE GROUP
SALES: $124 million *
GREBE HOLDING AG
HQ: WEILBURG, GERMANY
PHONE: 49 6471 315-0
WEB SITE: WWW.GREBE.DE
KEY PERSONNEL: Helmut Tappe and Gunter Waase, board members.
Major Products: Industrial coatings.
* Grebe Group is a privately owned manufacturer of industrial coatings serving the European market for more than 180 years. Its roster of companies includes Schramm Coatings, which boasts 1500 formulations.
SALES: $115 million
HQ: STONY POINT, NY USA
WEB SITE: WWW.INSL-X.COM
KEY PERSONNEL: James Weil; president; Jim Capitano, vice president, operations; Don Muller, vice president, sales and marketing; Ross Laurie, CFO; John MacLauchlan, executive vice president; Aaron Dhawan, marketing director; Iain Harvey, technical director; and Tom Parker, key manager for Lenmar.
Major Products: Architectural/decorative and industrial maintenance coatings and specialty coatings.
New Products: Cabinet Coat, Garage Gard, Texcrete, FinalFinish CW and Aqua-Loc Plus.
* With its 2004 acquisition of Coronado paint and Lenmar wood coatings from Wattyl, Insl-x Products Corp. became of one of the largest privately-owned coatings manufacturers in the U.S. market and also one our "Top Companies."
The company, which is also parent to Bruning Paint, has manufacturing facilities in Stony Point, NY, and through Lenmar/Coronado, it now operates production facilities in Edgewater, FL and Baltimore, MD.
In addition to the Wattyl and Lenmar products, Insl-x's roster includes a complete line of specialty paints and coatings, such as Hot Trax (a latex concrete floor paint), Tru-flex Cushion (a high performance coating consisting of encapsulated rubber particles and fillers blended with 100% acrylic emulsion to create a shock absorbing surface for tennis courts), Insl-Cap Compound (a water-based coating designed to create barrier over lead containing paint) and Brilliant Aluminum (a chrome-like, bright sheen aluminum paint for wood, metal and masonry that is suitable for interior and exterior applications.)
Insl-x president James Weil recognizes that having a diverse product range isn't enough.
"In today's highly competitive marketplace, having the toughest, best quality product means nothing if it is not backed by a solid commitment to service," he said. "We pride ourselves on being customer driven, and view our relationships as partnerships. Offering the very best products backed by a complete support network will enable both Insl-x and our customer partners to move profitably into the next millennium."
COMPANIES TO WATCH
RED SPOT PAINT & VARNISH
SALES: $99 million *
HQ: Evansville, IN USA
WEB SITE: www.redspot.com
KEY PERSONNEL: Charles D. Storms, president, CEO; David D. Vranesich, VP sales; George P. Lord, VP operations; Mark A. Lutterbach, VP research; Michael M. Merkel, VP commercial products; Joseph D. Neidig, HR and administration; Jeffrey M. Scheu, coatings marketing director; Timothy J. Tanner, key manager, UV coatings; Brandon A. Willis, key manager, thermal coatings; and Antony Modarressian, key manager, sports coatings.
MAJOR PRODUCTS: Automotive coatings.
* Red Spot Paint & Varnish company has approximately 70 people employed in R&D and two coatings manufacturing facilities.
Well known for its automotive coatings expertise, Red Spot is also a maker of coatings for other markets. According to the company, leading cosmetics and fragrance companies come to Red Spot for packaging innovations, including thermal and UV coatings applications which beautify product presentation.
SALES: $88 million *
HQ: Kansas City, MO USA
WEB SITE: www.tnemec.com
KEY PERSONNEL: Pete Cortleyou, president; Chase Bean, VP sales; Steve Eiserer, VP finance; Remi Briand, VP R&D; Mark Thomas, marketing director; Joe Davis, technical services director; Joe Schmit, director, StrataShield-flooring; Al Morris, director, Chemprobe-masonry; Terry Wallace, director of agency development; John Miller, director of agency development; George Shannon, VP business development; Mike Bauer, VP technical and regulatory affairs; and Pete Cerra, VP operations.
MAJOR PRODUCTS: Architectural and industrial coatings.
* Private ownership and sales by independent representatives are unwavering guiding beliefs for this Kansas City, MO-based firm. Tnemec manufactures more than 100 architectural and industrial coatings for a a variety of markets.
SALES: $87 million
HQ: Netanya Souty, Israel
WEB SITE: www.tambour.co.il
KEY PERSONNEL: Shmulik Porre, CEO; Yehoshua Schechter, VP finance; Jacob Moshe, VP administration and human resources; Yiftach Keren, VP marketing; Offer Saky, VP sales; Shmuel Karmiel, operations purchasing and logistic manager; Yacov Mor, R&D manager; and Yifat Cherpack, legal counsel.
MAJOR PRODUCTS: Architectural and industrial coatings.
* For more than 65 years, Tambour has been Israel's leading paint company, offering architectural and industrial products that show both the fun and functional sides of the business. The company's roster includes Superwash, an acrylic special effect paint for residential use as well as Copon LS4000, a clear intumescent epoxy paint approved by the British Standard 476 fire rating and by the Israeli Standard 755 as a fire-retardant for ignition level IV.
TRUE VALUE COMPANY
SALES: $85 million *
HQ: Chicago, IL USA
WEB SITE: www.truevaluecompany.com
KEY PERSONNEL: Lyle Heidemann, CEO; Ed Majkrzak, manager, technical; Mike Haining, SVP, logistics and manufacturing; Gene Brickhouse, director, manufacturing; Rich White, director, national paint sales and marketing; and Carol Wentworth, vice president, marketing.
MAJOR PRODUCTS: Decorative paint
* In February, True Value announced that it would close its Chicago paint manufacturing facility. Officials said operations at the 105,000-sq.-ft. oil-based paint production plant have steadily declined over the last few years while property values in the area have greatly increased. As such, the firm plans to sell the Blackhawk Street facility, which encompasses a city block in downtown Chicago. Manufacturing will be absorbed by its Cary, IL facility, according to the company.
"Streamlining our manufacturing operations puts the co-op in a stronger position and fits with our strategic growth plan, helping us to remain competitive," said then CEO Tom Hanemann, who was replaced by Lyle G. Heidemann last month.
True Value's strategy to remain competitive in the paint market has included the debut of the Color Made Simple consumer-driven retail paint program and a return to national paint advertising efforts.
SALES: $54.7 million
HQ: Selangor, Malaysia
PHONE: 603-7957 2233
WEB SITE: www.mulpha.com.my
KEY PERSONNEL: Lee Seng Huang, executive chairman, Mulpha International; Derrick Tan Peng Koon, non-executive director of Greenfield Chemical Holdings; Yuen Shu Wah, managing director, Greenfield Chemical Holdings; and Ko Jack Lure, general managing, Manfield Coatings.
MAJOR PRODUCTS: Industrial coatings
* Mulpha International Bhd is a diversified conglomerate with operations and investments in Malaysia, Vietnam, Singapore, People's Republic of China, Hong Kong and Australia.
It is in Hong Kong and China where the company operates in the paint and coatings sector, via Manfield Coatings--a subsidiary of Greenfield Chemical Holdings, which is part of Mulpha International.
Manfield, which makes industrial coatings, operates out of a main factory in Shenzen. Among other end products, Manfield manufactures coatings for cookware, toys and cell phones. The latter category should offer a substantial future for Manfield, as the market for cellular phones in China (and elsewhere) continues to expand. Currently, China produces more than 200 million cell phones annually, with top OEMs such as Motorola, Nokia and LG churning out units there.
Hardly kids play, the metal toy market is also big business for Manfield. It reportedly has a "commanding" share of that market in Hong Kong.
Manfield also operates a joint venture with German coatings company Weilburger and Cashew Company, a Japanese coatings firm.
"PAINTED" HORSE FARM
When star racehorses retire at Hurstland Farm in Midway, KY, True Value is there, helping to create a positive atmosphere for these former champions. Fences and barns at Hurstland Farm have been painted with 250 gallons of white and blue-green paint from True Value, which was donated to the non-profit Old Friends Organization. Old Friends--which was founded after Ferdinand, a Kentucky Derby winner, was killed in a slaughterhouse--works to give racehorses a dignified retirement.
2005 TOP COMPANIES Our ranking is based on annual sales of paint, coatings, adhesives, sealants and related products. For companies based outside the U.S., sales are translated into U.S. dollars using the average currency exchange rate for the company's fiscal year/reporting period. Profiles begin on page 28, a geographical perspective and alphabetical listing can be found on page 26 and "Companies to Watch" can be found on page 74. 1. Akzo Nobel (The Netherlands) $6.529 billion 2. ICI Group (UK) $5.378 billion 3. PPG Industries (USA) $5.275 billion 4. Henkel (Germany) $5.27 billion 5. Sherwin-Williams (USA) $4.91 billion * 6. DuPont (USA) $3.65 billion * 7. BASF Coatings (Germany) $2.515 billion 8. Valspar (USA) $2.44 billion 9. RPM (USA) $2.3 billion 10. SigmaKalon (The Netherlands) $2.11 billion 11. Nippon Paint (Japan) $1.89 billion 12. 3M (USA) $1.85 billion * 13. Kansai Paint (Japan) $1.83 billion 14. H.B. Fuller (USA) $1.4 billion 15. Masco (USA) $1.2 billion 16. Rohm and Haas (USA) $1.149 billion 17. Sika (Switzerland) $1.13 billion * 18. COMEX (Mexico) $1.02 billion * 19. AB. Wilh. Becker (Sweden) $945.4 million 20. DAW (Germany) $945.3 million 21. Benjamin Moore (USA) $915 million * 22. Jotun (Norway) $903.4 million 23. Hempel (Denmark) $726.04 million 24. Dai Nippon Toryo (Japan) $590 million * 25. Tikkurila (Finland) $547.29 million 26. Brillux (Germany) $523 million * 27. Forbo (Switzerland) $465.5 million 28. Asian Paints (India) $444.27 million 29. Wattyl (Australia) $381.8 million 30. Orica (Australia) $380.8 million 31. Barloworld (South Africa) $362.37 million 32. Arch (USA) $351 million 33. Kelly-Moore (USA) $335 million 34. Chugoku Marine Paint (Japan) $303.95 million 35. KCC (South Korea) $300 million * 36. Dainippon Ink and Chemical (Japan) $295 million * 37. Dyrup (Denmark) $278.8 million 38. Lord Corp. (USA) $275 million * 39. Altana (Germany) $267.42 million 40. Dunn-Edwards (USA) $265 million * 41. Yasar (Turkey) $264 million 42. Helios (Slovenia) $254.9 million 43. Rock Paint (Japan) $234.93 million 44. Sico (Canada) $233.63 million 45. CIN (Portugal) $219.2 million 46. Renner (Brazil) $205 million * 47. Ameron (USA) $199.6 million 48. DPI South (South Korea) $185.6 million 49. National Paints (Jordan) $185 million 50. Shinto Paint (Japan) $176.6 million 51. Tigerwerk (Austria) $156 million * 52. Cloverdale Paint, Inc. (Canada) $153 million * 53. Yung Chi Paint and Varnish (Taiwan) $152 million * 54. Tohpe (Japan) $150.49 million 55. Industrias Titan (Spain) $145.2 million 56. M.A.B. Paints (USA) $140 million * 57. Ace Paint (USA) $135 million 58. Toa Paints (Thailand) $128 million * 59. Vogel Paint (USA) $125 million 60. Grebe Group (Germany) $124 million * 61. Insl-x Products Corp. (USA) $115 million * estimated sales