2003 top companies report. (Cover Story).
2003 Top Companies Report Welcome to the Coatings World 2003 Top Companies Report, our annual profile of the leading paint, coatings, adhesives and sealants companies in the world. This ranking is based on annual sales of paint, coatings, adhesives and sealants. For companies based outside the U.S., sales are translated into U.S. dollars using an average exchange rate for the company's fiscal year/reporting period. Profiles begin on p. 28. A list of "companies to watch" can be found on p. 60. An alphabetical directory of companies can be found on p. 59. 1. Akzo Nobel (The Netherlands) $5.33 billion 2. PPG Industries (USA) $4.48 billion 3. ICI Group (UK) $4.39 billion 4. Sherwin-Williams (USA) $4.25 billion * 5. Henkel (Germany) $3.85 billion 6. DuPont Performance Coatings (USA) $2.6 billion * 7. Valspar (USA) $2.12 billion 8. BASF (Germany) $1.98 billion (tie) RPM, Inc. (USA) $1.98 billion 10. SigmaKalon (The Netherlands) $1.6 billion 11. Nippon Paint (Japan) $1.52 billion * 12. Kansai Paint (Japan) $1.47 billion 13. H.B. Fuller (USA) $1.15 billion 14. Rohm and Haas (USA) $927 million 15. Benjamin Moore (USA) $824 million * 16. Sika AG (Switzerland) $752.8 million * 17. Jotun (Norway) $703.8 million 18. Ab. Wilh. Becker (Sweden) $675.6 million 19. Masco Corp. (USA) $661 million * 20. 3M (USA) $630 million * 21. DAW (Germany) $614.8 million 22. Hempel A/S (Denmark) $539.7 million 23. Dai Nippon Toryo (Japan) $506.6 million 24. Ferro (USA) $460 million * 25. Tikkurila (Finland) $425.6 million 26. Professional Paint, Inc. (USA) $400 million 27. Duron (USA) $350 million 28. Orica Consumer Products (Australia) $340.8 million 29. COMEX (Mexico) $340 million * 30. Asian Paints (india) $325.6 million 31. Kelly-Moore (USA) $323 million 32. Forbo Adhesives (Switzerland) $313.8 million 33. KCC (South Korea) $300 million * 34. Dunn-Edwards (USA) $292 million 35. Dainippon Ink & Chemical (Japan) $290 million * 36. Wattyl (Australia) $281.7 million 37. Renner Herrmann (Brazil) $270 million * 38. Barloworld Coatings (South Africa) $236.8 million 39. Dyrup A/S (Denmark) $219.2 million 40. Chugoku Marine Paint (Japan) $218.4 million 41. Altana (Germany) $209 million 42. Rock Paints (Japan) $185.6 million 43. Ameron (USA) $183.3 million 44. M.A.B. Paints (USA) $180 million * 45. DPI Co. Ltd. (South Korea) $166 million 46. Sico (Canada) $163.7 million 47. TruServ (USA) $158 million * 48. CIN (Portugal) $155.2 million 49. Tohpe Corp. (Japan) $150 million * 50. Shinto Paint (Japan) $140.3 million 51. Yasar (Turkey) $140 million * 52. National Paints (Jordan) $138 million 53. Yung Chi Paint (Taiwan) $137 million * 54. Lord Corp. (USA) $130 million * 55. Ace Hardware (USA) $128 million * 56. Vogel Paint (USA) $126 million * 57. Tigerwerk (Austria) $115.4 million 58. Tambour Ltd. (israel) $111 million * 59. Red Spot (USA) $106 million * Estimate
1. Akzo Nobel
Arnhem, The Netherlands
Sales: $5.33 billion
Key Personnel: Hans Wijers, chief executive officer; Rudy van der Meer, member of the board of management responsible for coatings, and Rinus Rooseboom, senior group director coatings. Product Managers: Decorative coatings: Leif Abildgaard (Europe), Jan Andersson (international); industrial finishes: Bob Torba; marine and protective coatings: Leif Darner; industrial products: Lars-Erik Thomsgard; car refinishes: Cor De Grauw; and powder coatings: Bill McPherson.
Major Products: Decorative coatings, industrial finishes, marine and protective coatings and automotive refinish coatings.
New Products: Crazy Car Colours, a patented temporary finish that can be removed easily with warm water without damaging the original surface; Disney Home Color (right); Suede Emulsion textured paints; Sadolin's In the Garden range; and Sadolin Woodshield. Akzo Nobel also relaunched the Bruguer brand in Spain.
Recent Acquisitions: Ferro's powder coatings activities in America and the Asia-Pacific region.
* Eight just isn't enough for industry giant Akzo Nobel. The company's 2002 annual report included the following statement: We will continue to play a leading role in the consolidation of the still fragmented world coatings market in which we, as world leader, have only eight percent market share.
Akzo Nobel has felt the effects of this lackluster economy. Sales in 2002 were basically fiat. But new CEO Hans Wijers is a man who likes paint. During the company's spring analyst meeting, Mr. Wijers said Akzo Nobel is committed to furthering growth of its coatings business.
Part of that growth will come by focusing on emerging markets such as Asia. Among its activities in the region, Akzo Nobel increased ownership in its Korean marine coatings joint venture, commissioned a coil coatings facility in Suzhou, China, celebrated the opening of a car refinishes research center in Bangalore, India and formed a 65%-owned decorative coatings joint venture in Indonesia. Also in the works are two grassroots wood coatings facilities in China and a nonstick coatings site in Dongguan City. In April, 2003, the company opened a powder coatings facility in Ho Chi Minh City, Vietnam.
Even with all this activity in Asia, Akzo Nobel hasn't forgotten its European heritage. The company also opened its first decorative paint facility in Moscow, is building a new adhesives factory in Germany and is renovating its marine and yacht research and development facility in Felling, UK. Facilities in Hungary and Poland--markets where Akzo Nobel is the number two paint producer--will serve as platforms for further expansion in Eastern Europe, according to the company.
The good news in Akzo Nobel's 2002 results came from its decorative unit in Europe, where operating income was better than in the previous year, and on a comparable basis, income improved considerably on the previous year, despite a mixed season for outdoor painting. In addition, a number of restructuring projects helped reduced operating costs.
Akzo's decorative coatings international unit, despite the difficult economic climate in countries like Turkey and Argentina, registered satisfactory gains in operating income. Niche concepts in the U.S. and in Argentina (wood care products) proved successful, bringing further growth in sales and earnings compared to the previous year, and the firm achieved double-digit volume growth in markets in Asia, Russia and the Ukraine.
In the U.S., Akzo's decorative coatings North America (DCNA) operations recently made moves to strengthen its position as well. The unit assumed responsibility for Synteko wood floor coatings--a brand that had been sold by an independent distributor for more than 20 years. In addition, DCNA named Antonio Leandres and Gerry Koutavas profit center managers for Synteko and Sikkens respectively.
On the industrial side, Akzo Nobel divested general industrial activities in the U.S., France, Scandinavia and Poland in 2002, while its aerospace coatings operations benefited from the acquisition of the aerospace activities of U.S. Paint. The company's transportation coatings business continued implementing a restructuring program in Europe and Akzo is realigning production to a limited number of sites.
The company has invested time and resources into making its powder coatings business ready for the market's recovery. In September 2002, Akzo Nobel acquired Ferro's powder coatings businesses in the Americas and Asia, moving it into the third position in a U.S. market and giving the company new acrylic powder coating formulations it didn't have before the accord. A month after that deal, Akzo acquired a 50% share in a powder coatings business in Mexico.
Akzo Nobel reported that its protective coatings business had an excellent year due in part to high activity from oil and gas offshore industry construction projects. In particular, sales of its fire proofing material (Chartek) for offshore installations were described by the company as excellent.
Akzo Auto Refinish: More than Primer
In the area automotive refinish, Akzo Nobel delivers more than products to repair and body shops. The coatings company has created, Accident Management Services (AMS), a unit which provides comprehensive accident management services to insurance companies, autobody shops and fleet owners to facilitate damage settlement.
LOG ON, LEARN MORE
Service and support are key in the refinish market. See what coatings companies are doing about it by logging on to coatingsworld.com/Sept021.htm.
Akzo Increases R&D Spending
To keep its hold on the paint market, Akzo Nobel recognizes the need to expand geographically and also technologically. The company increased its R&D expenditures by four percent to 166 million [euro] in 2002.
2. PPG Industries
Pittsburgh, PA USA
Sales: $4.48 billion
Key Personnel: Raymond W. LeBoeuf, chairman and chief executive officer; Charles E. Bunch, president and chief operating officer; James C. Diggs, senior vice president and general counsel; William H. Hernandez, senior vice president, finance; Dennis A. Kovalsky, vice president, automotive coatings; J. Rich Alexander, vice president, industrial coatings; David P. Morris, vice president, aerospace products; Marc P. Talman, vice president, packaging coatings; Greg D. DeCamp, general manager, light industrial coatings; William A. Wulfsohn, vice president, coatings Europe; Richard A. Beuke, vice president, architectural coatings; and Garry A. Goudy, vice president, refinish coatings.
Major Products: Automotive OEM and refinish, industrial and packaging coatings and architectural paint and stains.
New Products: CeramiClear and Optech clear coat technologies for automotive applications.
* PPG's coatings sales were fiat in 2002, accounting for $4.48 billion, compared to $4.41 billion tallied in 2001. In the first quarter of 2003, coatings sales rose seven percent, which PPG attributed to the strengthening of foreign currencies and stronger volumes in architectural, aerospace, automotive original equipment and industrial businesses. Volumes rose two percent with the largest increases in North American and Asian businesses, while European volumes were down about two percent in the quarter.
In late 2002, PPG unveiled PPG Aerospace, the new brand identity for PRC-DeSoto International and its aircraft transparencies businesses. Dennis Kovalsky was tapped to head the new unit (see October 2002, p. 12).
In January, PPG introduced CeramiClear clearcoat, which the company says is so durable that it had to integrate more rigorous testing methods to assess its performance. The product uses what the company described as a patented nanotechnology to raise resistance to acid etch, marring and scratching. The company claims that over time, cars painted with CeramiClear, which is compatible with water-based basecoat and primers and e-coat layers, will appear newer than conventionally coated vehicles.
While its automotive OEM operations are key, PPG also serves the refinish market. The company has opened a new training center for automotive refinish technicians, paint distributors and body shop owners in Rancho Cucamonga, CA.
Caring About Employees' Hearts and Souls
What do PPG Industries and Johns Hopkins University have in common? Both are the only organizations to receive an Innovation in Occupational and Environmental Health Grant. The $25,000 award will help PPG implement its program to improve the early diagnosis, treatment and management of depression for employees, retirees and family members.
The grant is sponsored by the Occupational and Environmental Health Foundation, the American College of Occupational and Environmental Medicine, and Pfizer, Inc.
"We at PPG have long recognized that depression has a profound effect on a person's health, quality of life and productivity. We want to do all within our power to help our people combat this insidious disease," said David C. Cannon Jr., PPG's vice president of environment, health and safety.
The program provides early diagnosis and treatment through coordination of PPG's employee assistance program, personal care physicians and specialists. It includes worksite intervention (such as seminars, wellness programs, and online access to self-management support) and coordinated care through screening and treatment by contracted health-care providers.
The overall effect on productivity is determined through medical and mental health claims, absenteeism, workers' compensation, and data regarding employee turnover.
3. ICI Group
ICI Paints, Slough Berkshire, UK
Bridgewater, NJ USA
Sales: $4.39 billion
Key Personnel: John McAdam, director and chief executive, ICI; Larry Porcellato, CEO, ICI Paints North American operations and president, ICI Paint North American board of directors; and William Powell, chairman and chief executive officer, National Starch.
Major Products: Decorative and architectural paint, paper and packaging coatings and industrial adhesives.
New Products: Dulux Editions, Magic White, Realife matte paint, Cuprinol Woodland Garden shades, Glidden EZ Track, a glue lap adhesive for corrugated containers and Aerobond 32-192A adhesive.
* The ICI Group's ranking is based on two of its business--ICI Paints and and National Starch's adhesives operations. Together these two units accounted for sales of $4.39 billion in 2002.
ICI's paint business, which is headquartered in the UK, but operates around the world, is solidly focused on decorative/architectural coatings. These products, which include well-known brands such as Dulux and Glidden, account for 91% of sales. Coatings for paper and packaging account for nine percent of sales, according to company statistics.
In May, ICI Paints announced a major restructuring plan that would result in 300 less jobs in Europe and another 70 layoffs in North America (see International Coatings Scene, p. 14 in this issue for more details). The announcement came at the same time John McAdam, who had been chairman and chief executive of ICI Paints, was tapped to serve as director of the parent company, following the resignation of Brendan O'Neill.
National Starch, based in the U.S., is one of the largest producers of industrial adhesives in the world, selling its technology for use in woodworking, food packaging, nonwovens, paper and converting.
Among the more recent developments at National Starch is the company's plan to form a joint venture with Collano, a Swiss polyurethane adhesives maker. The JV--Purbond AG--will specialize in the manufacture and marketing of moisture-curing liquid polyurethane adhesives for the engineered wood market.
Glidden Hosts "Web" inar
In May, Glidden held what it called the paint industry's first live online color seminar for homeowners. "Color and Design 101" featured Barbara Richardson, color expert and director of color marketing for ICI Paints, in a half-hour long "webinar" held at three different times.
The online session included interactive participant polls, expert suggestions for designing with inspirational elements and examples of real-life decorating dilemmas and solutions.
Cleveland, OH USA
Sales: $4.25 billion *
Key Personnel: Christopher M. Connor, chairman and chief executive officer; Joseph M. Scaminace, president and chief operating officer; Sean P. Hennessy, senior vice president, finance and chief financial officer; Conway G. Ivy, senior vice president, corporate planning and development; John Morikis, president, paint stores group; Thomas W. Seitz, president and general manager, consumer division; Ronald P. Nandor, president and general manager, automotive division; and Alexander Zalesky, president and general manager, international division.
Major Products: Architectural and decorative paint, stains, coatings and varnishes, automotive finishes, caulks and sealants, wood finishes and industrial and marine coatings.
New Products: Dutch Boy Twist & Pour container, Krylon Fusion for Plastic, ExpressTech industrial maintenance products and Builders Solution.
* Of Sherwin-Williams' total $5.18 billion in consolidated net sales, approximately $4.25 billion came from paint and coatings in 2002. Sales were up slightly (2.3%) for the year--good news for any company in the coatings business.
Sherwin-Williams' paint stores segment tallied sales of $3.3 billion, up from $3.1 billion in 2002, and the consumer segment recorded sales of $1.17 billion, up from $1.14 billion in the previous year. Declines were reported in the automotive finishes segment ($454 million compared to $464 million) and the international coatings segment ($244 million compared to $268 million), according to the company.
For the second year in a row, S-W's net operating cash flow exceeded $550 million. This was achieved through a combination of improved profitability and continued stringent working capital management, according to the company. In addition, S-W said it reduced its receivable days from 56 to 52 and trimmed inventory levels by six days.
All in all, S-W's management team was happy with the company's performance in 2002. In a letter to shareholders, Christopher M. Connor, chairman and CEO, and Joseph M. Scaminace, president and COO, wrote: We are pleased to report that 2002 was a solid year for The Sherwin-Williams Company. After 2001 did not measure up to our expectations, we were determined to return our company to a high level of financial performance. Our efforts this past year resulted in strong cash flow and a substantial improvement in operating income on a moderate sales increase. In these times of sluggish economic growth, mounting international tensions and daily headlines about companies accused of misleading their employees, shareholders and the financial community, Sherwin-Williams stands tall.
Sales: $3.85 billion
Key Personnel: Ulrich Lehner, president and chief executive officer; Jochen Krautter, executive vice president; Knut Weinke, executive vice president, human resources and logistics; Alois Linder, executive vice president, consumer and craftsmen adhesives; and Guido De Keersmaecker, executive vice president, Henkel Technologies.
Major Products: Adhesives and sealants for DIY and various industrial markets.
Recent Acquisitions: Solyplast S.A. and Cemedine U.S.A.
* Towards the end of 2002, Henkel acquired a business in Spain and another in U.S. In October, it acquired Spanish adhesives and sealants manufacturer Solyplast S.A., a 15 million [euro] producer of acrylate and silicone sealants serving the craftsmen and DIY markets. The company also acquired Cemedine U.S.A. Inc., a maker of adhesives and sealants for the automotive market.
Henkel Group's research and development expenditures were 259 million [euro] in 2002, with six percent of that going towards its adhesives operations.
In its annual report for 2002, Henkel was predicting growth in 2003. The company is anticipating a five percent increase in sales for the consumer and craftsmen adhesives business sector, and for Henkel Technologies, Henkel was shooting for an above-average increase in sales of approximately four percent.
Wilmington, DE USA
Sales: $2.6 billion *
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 and Color Technologies; Marty M. McQuade, vice president/general manager, DuPont Herberts Automotive Systems; Eric G. Melin, vice president/general manager, DuPont Refinish; Douglas L. Moore, vice president/general manager, Advanced Coatings Systems; and Panos I. Kordomenos, technology leader, DuPont Performance Coatings, directing strategic research involving the development of new automotive topcoat technologies.
Major Products: Liquid and powder coatings for automotive OEM and refinish applications and industrial applications including aerospace, marine, protective and transportation.
New Products: SuperSolids clearcoat and Imron Elite polyurethane topcoat.
Recent Acquisitions: In 2002, DuPont acquired the remaining interest in DuPont Performance Coatings S.A., its joint venture operation with Renner Herrmann.
* DuPont's coatings business is focused mainly on the automotive industry. However, its expertise reaches well beyond the highway. The company's coatings sales in 2002 were approximately $2.6 billion. Sales are reported within the firm's $5 billion coatings and color technologies sector, which also includes DuPont's titanium dioxide and ink jet businesses.
In early 2003, DuPont Performance Coatings announced an accord with Korea Kumgang Chemical Company (KCC), ranked No. 33 in this report. In the deal, the two firms will collaborate in the automotive OEM market (see, p. 10, Coatings World, February, 2003).
The company's SuperSolids ultra-low emission coatings technology has earned the U.S. EPA's Clean Air Excellence Award. This coating, first used commercially at the DaimlerChrysler Newark, DE assembly plant on 2002-2003 Dodge Durango trucks, lowers VOC emissions by more than 25% while improving scratch- and mar-resistance by 60%, according to the company.
DuPont Herberts Automotive Systems, part of DuPont Performance Coatings, received Ford Motor Company's World Excellence Award Recognition of Achievement, recognizing the company as one of its top suppliers in the world. DuPont Herberts won the honor for its technology that helped Ford apply primer and basecoat in the same pass on the paint line. The wet-on-wet system was launched this year at Ford's Kentucky truck plant for the production of two-tone F-250 and F-350 super duty pickup trucks. The process allows vehicles to receive two enamel colors in one trip through a paint booth and oven.
This new process is allowing Ford to increase output of the popular vehicles and meet rising demand. Ford reports that it is instituting the same process at other facilities.
Minneapolis, MN USA
Sales: $2.12 billion
Key Personnel: Richard M. Rompala, chairman and CEO; John M. Ballbach, president and chief operating officer; Steven L. Erdalh, executive vice president-industrial and automotive coatings; William L. Mansfield, executive vice president, architectural, packaging and specialty coatings; Paul C. Reyelts, senior vice president-finance and chief financial officer; Rolf Engh, senior vice president, general counsel and secretary; Jim Robellard, director of marketing; and Paul Sara, technical director; and Larry Brandenburger, VP, R&D.
Major Products: Architectural/decorative coatings, paints, varnishes and stains; packaging, industrial and OEM coatings; and automotive refinish and specialty coatings.
New Products: American Tradition Signature Colors and House of Kolor direct to metal primer.
* In 1992, Valspar's sales were $683 million. Today, the company's sales top the $2 billion mark.
Valspar's 2002 sales rose an impressive 10.7% in 2002, although the gain was down from the 29.5% increase it recorded between 2000 and 2001 when the firm first included sales from the Lilly acquisition. The company's mission, according to its annual report, is to be in the top five in global sales. It is well on its way, as at the end of 2002, approximately 25% of its sales came from outside the U.S.
As a global company, Valspar has recognized the need to go where its customers are. For example, recognizing that a large percentage of furniture sold in the U.S. now comes from China, Valspar set up facilities to serve the growing wood coatings customer base there with a new facility in Shanghai.
On the new products front, Valspar has launched American Tradition Signature Colors, paint which is specially formulated in a new process the company is calling Duramax Ti3 Technology. Duramax Ti3 incorporates high-quality 100% acrylic resins to produce a tough, durable, stain-resistant finish that stands-up to regular washing by homeowners. Valspar says 55% of the paint's formulation is pigment and resin.
Sales: $1.98 billion
Key Personnel: Jean-Pierre Monteny, president of BASF Group's coatings division and CEO of BASF Coatings AG; Jacques Delmoitiez, automotive refinish; Rainer Blair, automotive OEM coatings; and Rui Artur Goerck, decorative paints; Klaus-Dieter Plitzko, head of R&D at BASF Coatings AG
* BASF's coatings officials said 2002 was another successful year. We were able to more than make up for the impact of the current economic situation, and this has also provided us with the basis for sustainable profitable growth. We will report a significant improvement in our operational result compared with last year and will thus achieve one of the best results ever, said Jean-Pierre Monteny, president of the BASF Group's coatings division and CEO of BASF Coatings AG.
Yet, as can be expected, the world's economic problems, according to Mr. Monteny, did affect the company's sales results. The decline we have seen in our global sales, which at 2.1 billion [euro] are below last year's level, is mainly due to currency losses, he said.
BASF generates the majority of its sales from outside Europe, with 35% of the division's sales stemming from North America, 15% from South America and the Asia-Pacific region accounting for approximately five percent of total sales in 2002. On an end-market basis, 45% of the company's sales in 2002 came from automotive OEM; 20% from refinish; 25% from industrial coatings and 10% from decorative paint.
BASF is working steadily to improve its market position. The consolidation measures implemented this year have provided us with an ideal platform to achieve this aim, Mr. Monteny said at the group's annual coatings press conference held at the end of 2002.
BASF's Munster Site Celebrates 100th Anniversary
BASF's Munster coatings site is celebrating its 100th birthday this year. When Max Winkelmann, a Hamburg merchant, laid the foundation for his plant in Hiltrup in 1903, he probably never imagined the building would one day become home to one of the largest coatings manufacturing facilities in the world.
Not only has the Hiltrup work force has grown substantially from 54 employees in 1917 to more than 2,000 today, the facility has grown substantially too, and it has proven to be quite resilient. Allied air raids in 1944 and 1945 seriously damaged the facilities, and completely destroyed new product research and development labs. Yet, the plant started production again just a few months after the end of the war, and by 1950 sales exceeded pre-war levels, according to BASF. By 1972, Hiltrup was the largest of the company's eight manufacturing sites in Germany in terms of both sales and workforce. In 1986, the company's corporate headquarters moved from Hamburg to the Munster site, making it the official homebase for the largest coatings company in Germany.
8. RPM, Inc.
Medina, OH USA
Sales: $1.98 billion
Key Personnel: Frank C. Sullivan, president and chief executive officer; Kelly P. Tompkins, senior vice president, general counsel and secretary; Ronald A. Rice, senior vice president-administration and assistant secretary; Dennis F. Finn, vice president-environmental and regulatory affairs; Glenn R. Hasman, vice president-finance and communications; Paul G. Hoogenboom, vice president-operations and chief information officer; Stephen J. Knoop, vice president-corporate development; Robert L. Matejka, vice president-chief financial officer and controller; and Keith R. Smiley, vice president, treasurer and assistant secretary.
Major Segments and Key Managers: DAP, John McLaughlin; Rust-Oleum, Mike Tellor; Zinsser, Bob Senior; RPM II, Chuck Pauli; Tremco, Jeff Korach; Ston Cor, David Reif; and RPM Europe, Ulf Eriksson.
New Products: DAP Painter's Putty '53'.
Recent Acquisition: Koch Waterproofing Solutions.
* For the fiscal year ended May 31, 2002, RPM's sales were $1.98 billion and its net income was $101.5 million. Sales were down one percent from fiscal 2001, which the company attributed to, in large part, the divestiture of DAP's $30 million commercial unit, as well as weak market conditions in the industrial area. Excluding the effect of the divestiture, consumer net sales increased six percent. Industrial segment net sales dropped three percent, adjusted for foreign exchange differences, according to the company.
RPM contends that its revived financial situation has allowed it to resume its focus on acquisitions. Over the last 10 years, RPM has made more than 50 acquisitions, and the firm says it is on the prowl again for bolt-on product lines as well as entrepreneurial niche market leaders.
Apparently Koch Waterproofing Solutions fit the description. Through its Tremco subsidiary, RPM recently announced plans to buy the Reynoldsburg, OH-based manufacturer of Tuff-N-Dri basement waterproofing and Watchdog waterproofing products. Koch, which recorded 2002 sales of approximately $30 million, will operate as Tremco Barrier Solutions division, a stand-alone business within the sealant/weatherproofing division of the Tremco Group.
In 2002, RPM saw the departure of two key personnel from its staff. Thomas C. Sullivan and James A. Karman stepped down after four decades of service to the company.
Uithoorn, The Netherlands
Sales: $1.6 billion
Key Personnel: Pierre-Marie De Leener, chief executive officer, and Pierre Malmartel, general manager for marine and protective coatings and international decorative coatings.
Major Products: Architectural and decorative paint and industrial, marine and protective coatings.
New Products: Sigma AlphaTrim TBT-free antifoulant coating and the Dekoral Secrets of Nature range. The company also relaunched the Rambo wood care line with new colors, packaging and POP displays.
* SigmaKalon has found a new home at Bain Capital. The private investment firm closed the deal to acquire the paint company from TotalFinaElf this spring.
We are very pleased to have completed the sale of SigmaKalon, and look forward to growing the business and expanding our customer relationships, said Pierre-Marie De Leener, SigmaKalon's CEO. We believe the increased financial resources and stability will afford us the tools to grow our market share and pursue a variety of promising new business opportunities.
SigmaKalon decided its long-standing Rambo brand of wood care products needed a makeover to better meet the needs of today's consumers. New colors were added and the packaging was revamped to give it a more contemporary appearance. In addition, the in-store display was reworked to focus on product quality and usage. In a highly fragmented market we need to help the consumer choose the right product for the job, said Mick Sonnenfeld, Rambo brand manager.
SigmaKalon's industrial business has been active as well, recently signing an accord with Samsung Fine Chemicals (SFC). The two will form a joint venture in which SFC will place its (43 million [euro]) coatings business. SFC will control 40% of the JV and SigmaKalon, through Sigma Coatings, will control the remainder. The business will use production facilities in Ulsan, Korea.
11. Nippon Paint
Sales: $1.52 billion *
Key Personnel: Hiroshi Fujii, chairman and Teruyoshi Fujishima, president. Senior vice presidents: Kozo Tanino, Shizuo Katsunaga, Sekiya Suzuki and Koichi Tokita; Vice presidents: Kiyohiko Chijiiwa, Susumu Iwato and Makoto Matsuura. Executive directors: Takashi Yoshii, Shouji Nishio, Katsufumi Hasebe and Kiyomi Sakurai.
Major Products: Automotive, industrial and marine coatings, as well as decorative/architectural paint.
New Products: Nippon Kirei antibacterial emulsion.
* Not only is Nippon Paint Japan's biggest paint company, it is the oldest paint company as well, being founded in 1881.
Although its roots go back many generations, Nippon Paint is still on the cutting edge. For example, it has created Maziora, a color-shifting finish for cars, and its U.S. operations have worked to create other high-style finishes for the 2003 Chevy Silverado (above) and Chevy Cavalier 220 turbo sport.
12. Kansai Paint
Sales: $1.47 billion
Key Personnel: Tamotsu Shiraiwa, chairman and Katsuya Sera, president. Managing directors: Teruyuki Aoki, Hajime Iwamoto, Zenko Tanakamaru, Toshinobu Otani and Shoju Kobayashi.
Major Products: Automotive OEM, refinish, industrial, protective and marine coatings and decorative paint.
* Kansai Paint is Japan's second largest paint and coatings manufacturer, closely following market leader Nippon Paint. Its strength is in automotive coatings, both for OEM and refinish applications.
According to company statistics, approximately 46% of sales for fiscal 2002 came from automotive, 23% came from industrial coatings, 23% came from decorative paint products and eight percent came from its marine and protective coatings sector.
13. H.B. Fuller
St. Paul, MN USA
Sales: $1.15 billion
Key Personnel: Albert P.L. Stroucken, chairman of the board, president and CEO; Raymond A. Tucker, senior vice president and CFO; James R. Conaty, president and CEO, EFTEC North America L.L.C.; Jose Miguel Fuster, group president, general manager, Latin America; William L. Gacki, vice president and treasurer; Patricia L. Jones, senior vice president, chief administrative officer, general counsel and corporate secretary; Peter Koxholt, group president, general manager, global adhesives; Stephen J. Large, vice president and chief process improvement officer; Alan R. Longstreet, group president, general manager North America; James C. McCreary, Jr., vice president, corporate controller; William McNellis, group president, general manager Asia/Pacific; Walter Nussbaumer, group president, general manager Europe, and Stephen J. Large, group president, general manager, Full-Valu/Specialty Group.
Major Products: Adhesives, sealants, and coatings.
* H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2002 sales of $1.256 billion. Approximately $1.15 billion can be traced to coatings, adhesives and sealants.
In 2002, net revenue was down 1.4% from the previous year. Volume and pricing were also down 0.8% and 1.1% respectively, while positive currency effects accounted for an increase of 0.5%, according to the company.
In the first quarter of 2003, net sales were $294.6 million, a 0.5% increase from the first quarter of 2002. The company reported that reduced volume and pricing accounted for decreases of 2.4% and 0.5% respectively, while positive currency effects accounted for a 3.4% increase.
These are truly remarkably challenging times in an unusual economic and political environment, said CEO Albert Stroucken. Our results are a source of pride in our company and a reaffirmation that we are taking the right steps in an extremely difficult and shifting environment.
In the first quarter, global adhesives net sales rose 0.6%, with volume down 2.8% over last year's first quarter. The Full-Valu/Specialty Group reported net sales rose 0.1% and volume dropped 1.6%.
On the personnel front, Linda Welty, former group president and general manager of Fuller's Full-Valu/Specialty business group, has left the company. Stephen J. Large was selected to take over for Ms. Welty on July 1.
H.B. Fuller is in a NY(SE) State of Mind
On Dec. 2, H.B. Fuller stock made the jump from the Nasdaq to the New York Stock Exchange (NYSE), under the new ticker symbol "FUL."
Chairman, president and CEO Albert P.L. Stroucken, and other H.B. Fuller employees were on hand to ring the opening bell on its first day of trading.
14. Rohm and Haas
Philadelphia, PA USA
Sales: $927 million
Key Personnel: Raj L. Gupta, chairman and CEO; J. Michael Fitzpatrick, president and COO; Alan E. Barton, vice president and global business director of coatings; Frank Oliveri, director, sales and marketing, North American region; Ian Harris, director, global strategic planning; Mary Burch, director, new product processes, coatings; Ian Harris, director, global strategic planning; Fred Hirsekorn, department manager, coatings technical service; James C. Swanson, vice president and general manager, North American region, architectural and functional coatings; John E. Culbertson, vice president and business director; automotive coatings; M. Reginald Home, vice president and business director of powder coatings; and Suzanne Rowland, global business director, adhesives and sealants.
Major Products: Adhesives, sealants, automotive and powder coatings and construction products. Rohm and Haas also has a large stable of intermediate products and additives for paint, coatings, adhesives and sea]ants.
New Products: Adcote 812 and Adcote 577 adhesives.
Recent Acquisition: Ferro's European powder business.
* Rohm and Haas' sales of adhesives and sealants were $592 million and automotive and powder coatings represented sales of $109 million and $226 million respectively. Rohm and Haas' coatings unit, which focuses on raw materials for coatings manufacture, had sales of $1.86 billion.
Rohm and Haas has made a major move to expand its powder operations outside of North America by acquiring the European assets of Ferro Corporation's powder coatings business. Included in the deal were manufacturing operations in the UK, Germany and Spain, and an extensive sales and distribution network throughout Europe and strong market positions in the automotive, construction, appliances and general industrial market segments, according to the company.
James Swanson, vice president and general manager, North American region, architectural and functional coatings, called the purchase a perfect complement to Rohm and Haas' already strong Pulverac business in Romano d'Ezzelino, Italy. The acquisition is expected to increase the powder coating division's sales to approximately $300 million per year.
The company has also inked a deal down under with Wattyl Corp., ranked No. 36 in this report. Wattyl will supply Rohm and Haas' automotive coatings for plastics as well as sales and technical service to automotive finishers in Australia, New Zealand, and New Guinea. The five-year licensing agreement gives Wattyl exclusive rights to manufacture, market and service Rohm and Haas automotive coatings products using Rohm and Haas trademarks and formulations of specific product lines for interior and exterior automotive coatings for plastics.
15. Benjamin Moore
Montvale, NJ USA
Sales: $824 million *
Key Personnel: Yvan Dupuy, chairman and chief executive officer; Denis Abrams, president and chief operating officer; Don Devine, chief financial officer; Dan Claybaugh, marketing director; Carl Minchew, technical director; Robyn Rothke, consumer brand manager, consumer; and Jeff Spillane, manager, professional brand manager.
Major Products: Architectural, decorative and industrial paint and coatings.
New Products: Regal matte finish and waterborne satin Impervo.
* Benjamin Moore, one the U.S.'s largest makers of architectural and decorative coatings, enjoys a loyal following of professional and DIY painters. It earned its reputation by focusing on quality products that perform, the latest of which includes a new waterborne satin formulation of Impervo and new Regal matte finish. The latter is a flat paint that combines designer panache along with durability and stain release. It is the first new interior sheen launched by the company in more than a decade.
This company's commitment to excellence doesn't stop at what it puts in the can. Benjamin Moore is also concerned about what it puts into the environment. In 2002, the firm was honored by the North American Hazardous Materials Management Association for its pollution prevention efforts, specifically a pilot program to take back surplus brand-specific latex paint in five Massachusetts municipalities.
16. Sika AG
Sales: $752.8 million *
Key Personnel: Walter Gruebler, chief executive officer; Ernst Bartschi, chief financial officer; Christoph Tobler, industry; Alexander Bleibler, construction; Robert A. Petrisko, research and development; Bruno W. Fritsche, marketing, sealant and adhesives, construction; Paul Schuler, marketing, industry; Robert Diez, France and Africa; Fernando Rudolph, Latin America; Ernio Tossi, North America; Silvio Ponti, Europe North; Marcel Smit, Asia/Pacific; Jose Luis Vazquez, Europe South; and Ernesto Schumperli, Central Europe
Major Products: Sealants, adhesives, coatings and other bonding and sealing technologies. Sika also produces concrete products, grout, admixtures and industrial flooring systems.
New Products: Sika Tack-ASAP and SikaTack Move.
* Sika breaks its sales into two major categories--construction and industry. The first includes its concrete production business, while the latter is responsible for Sika's products for automotive, marine, transportation, appliances and building operations. It is estimated that the company's sales of coatings, adhesives, sealants and other related products were approximately $752.8 million in 2002.
Among Sika's new products is an adhesive for auto glass replacement called Sika Tack-ASAP. The ASAP stands for any season, any place, according to the company.
Sales: $703.8 million
Key Personnel: Knut Almestrand, president and CEO; Peder Bohlin, group executive vice president, Jotun Paints; Bjorn Naglestad, group executive vice president, Jotun Dekorativ; Larry McNeely, group executive vice president, Jotun Powder Coatings; Sverre Maaren, SHE; and Bent W. Haflan, R&D.
Major Products: Marine coatings, decorative paint, stains and varnishes and powder coatings.
New Products: Steelmaster intumescent coatings, Drygolin Extrem and Jotashield Heritage.
* Jotun increased its sales volumes by 6.5% in 2002, but reported lower sales due to the depreciation of the Norwegian kroner against the U.S. dollar and the euro, according to Jotun.
One of the bright spots for the company is its marine coatings unit, which has turned around a negative earnings trend and is making gradual improvements thanks to restructuring in the U.S. No doubt Jotun is looking to this area for growth in the coming years, now that the phase-out of TBT antifoulings is set. Look for sales of Jotun's flagship TBT-free product SeaQuantum to be on the rise.
(AB Wilh. Becker)
Sales: $675.6 million
Key Personnel: Ulf G. Linden, chairman; Mike Henderson, managing director and business area manager for Becker industrial coatings and ColArt; Geoff Longstaff, managing director Becker powder coatings; and Kaj Brandt, Becker Acroma.
Major Products: Industrial and powder coatings, wood finishes and artists materials.
* Beckers, part of Lindengruppen AB, is mainly an industrial coatings operation, however, the company also operates in wood finishes, powder coatings and artist paint. According to company statistics, in 2002, 41% of sales came from industrial coatings, 27% from both wood finishes and artists materials, and the remaining five percent came from powder coatings.
Slightly more than 75% of the company's sales come from European markets. Yet, like many other global manufacturers, Asia is an important target for future growth. Not only is China a significant market for Beckers' products, it is an important manufacturing center for Becker Industrial Coatings (BIC) and COlArt. Mike Henderson, managing director, said a strong position in China and southeast Asia will be increasingly important to Beckers over the medium term, as the region is likely to exhibit growth rates that are at least double of those of maturer economic regions.
According to company statistics, BIC's sales rose 12% in 2002. The powder coatings business reported sales volume, on a like-for-like basis, rose four percent. Becker Acroma posted a five percent decline in sales due to lower demand in the Nordic region, the UK and central Europe, according to the company.
19. Masco Corp.
Taylor, MI USA
Sales: $661 million *
Key Personnel: Richard A. Manoogian, chairman of the board and chief executive officer, Masco Corp., and Mike Walsh, vice president of marketing and new product development, Masterchem Industries.
Major Products: Architectural/decorative paint, coatings and stains sold in DIY home stores. The company's Vapor Technologies unit also provides coatings technology and equipment to other Masco-owned product lines.
New Products: Kilz brand Casual Colors.
* Masco's products can be found all over the local DIY superstore and all over the house. Its products range, ranging from plumbing fixtures and kitchen cabinets to door locks and paint. Masco contends that on average it achieves sales of $3,000 of products and services for each new single family house built in the U.S.
Masco's decorative architectural products segment includes paint and stain operations as well as a slew of other products including door locks and hardware. Falling under this segment is Behr Process Corporation and Masterchem Industries with top-selling brands such as Behr, Kilz and Hammerite. The segment also includes Vapor Technologies.
While Masco doesn't publish results by company or product line, this division reported sales of almost $1.6 billion. Coatings sales are estimated to be approximately $661 million.
Much of the company's growth in the paint category has come from acquisition. However, Masco says that although it will continue to pursue strategic purchases, it expects that acquisition-related growth will be less dramatic as the company places added emphasis on internal growth driven by new product development. Masco has set a goal for itself to post 10% internal growth in its decorative architectural products segment between now and 2007.
St. Paul, MN USA
Sales: $630 million *
Key Personnel: W. James McNerney, Jr., chairman of the board and CEO; Jay V. Ihlenfeld, vice president, research and development; Steve Landwehr, executive vice president, transportation; Moe Nozari, executive vice president, consumer and office; Harold Wiens, executive vice president, industrial business; John R. Baratto, R&D, corporate technology, consumer and office; Joaquin Delgado, R&D, corporate technology, industrial; Gregg A. Vandesteeg, R&D, corporate technology; transportation; Michael L. Denoma, supply chain and manufacturing services, industrial; James. E. Gregory, Dyneon; and James T. Mahan, industrial adhesives and tapes.
Major Products: Adhesive and bonding solutions for a variety of products and markets.
New Products: 3M Scotch-Clad TC deck coatings.
Recent Acquisition: Polymer Engineering Corp.
* Industrial tapes and adhesives were the path to some of 3M's earliest successes, and they continue to be a major avenue for growth today, according to the company. 3M makes a number of adhesive and bonding products, some for external use, others for use by three of its seven business segments--industrial, consumer and office and transportation.
The company's product range includes products designed to replace paint too, such as a blackout film for use on car pillars and window sashes. 3M contends it is more aesthetically pleasing than paint and reduces the number of required passes through the paint cycle.
Yet, the company isn't looking to replace all paint and coatings technology. Last August, company officials confirmed a report that it was working with a major paint manufacturer on a latex paint that would feature 3M's well-known Scotchguard technology and the Scotchguard trademark. 3M said the paint would most likely hit the market in 2003--although no such product has surfaced to date.
One of 3M's recent launches is Scotch-Clad TC deck coating, a polyurethane material that provides a flexible, non-porous membrane that bonds to the substrate and provides a watertight seal on new and existing concrete and masonry.
(Deutsche Amphibolin-Werke von Robert Murjahn GmbH & Co.)
Sales: $614.8 million
Key Personnel: Klaus Murjahn, Peter Meraviglia, Reinhold Heinzle, Uwe Possin, Rainer Rencker and Uwe Pottkamper.
Major Products: Architectural and decorative paint, renders/plasters, interior paint, primers, enamels and industrial coatings.
New Products: Disbon 404 Acryl-BodenSiegel and Disbopox 442 GaragenSiegel, both with Teflon.
* DAW employs 100 people in R&D and has 10 manufacturing facilities.
22. Hempel A/S
Sales: $539.7 million
Key Personnel: Ditlex Engel, president and CEO; P.Y. Jullien, executive vice president; S. Hoveroust, vice president and CEO; Henning Sogaard, vice president, logistics and purchasing; J. Kahle, marketing manager, marine; J. Bohr Christensen, marketing manager, protective; and C. Penderup Jensen, technical director.
Major Products: Marine, container and protective coatings and decorative and yacht paints.
New Products: Hempadur Multi-Strength GF 3587 and Globic antifoulings.
* Despite lackluster markets in Europe and North America, Hempel's sales rose four percent, reaching an all-time high, thanks to positive performance in the Middle East and Asia.
Asia is a key market for the company, and Hempel has made moves to strengthen its future in the region. For example, in 2002, the company took over control of its operations in the Korean market from a former license partner. In 2003, Hempel inaugurated a new factory in Malaysia.
Hempel has officially changed its name to Hempel A/S, which it contends more accurately reflects its current status as a global, total solutions supplier. While Hempel may be best known for marine coatings, its other business hold their own. Approximately one out of three new-built containers in 2002 and more than 50% of containers under repair were coated with a Hempel product.
23. Dai Nippon Toryo
Sales: $506.6 million
Key Personnel: Masafumi Toyomatsu, president and representative director.
Major Products: Heavy duty, industrial and automobile OEM and refinish coatings, marine paint and architectural and decorative coatings.
* Dai Nippon Toryo has production facilities in Osaka, Nasu, Komaki, Turumi, Sagahihara, Noshima and Shiga.
Cleveland, OH USA
Sales: $460 million *
Key Personnel: Hector C. Ortino, chairman and CEO; James C. Bays, corporate vice president and general counsel; Thomas W. Gannon, corporate vice president and chief financial officer; Dale G. Kramer; corporate vice president performance chemicals; and Millicent W. Pitts, corporate vice president, coatings.
Major Products: Ceramic glaze coatings; porcelain enamel for cookware, appliances and building panels; high-performance gelcoats; and glass decorating enamels.
* In 2002, Ferro divested its $175 million powder coatings business, splitting it up and selling it to two suitors--Akzo Nobel N.V. and Rohm and Haas Company. The sale was valued at approximately $160 million, including the assumption of certain liabilities by the acquiring parties.
Ferro maintains a leading position in ceramic glaze and porcelain enamel coatings. The company's tile coating systems business strengthened its global market position as a result of its dmc2 acquisition, more or less tripling the size of its color and glass performance materials business.
Sales: $425.6 million
Key Personnel: Ulf Koivyula, executive vice president, Tikkurila Coatings Oy.
Major Products: Decorative and architectural paint and coatings and industrial coatings, including wood finishes and protective, OEM and coil coatings.
Noteworthy Acquisition: Liquid industrial coatings business (in Nordic countries) of Akzo Nobel.
* Tikkurila is the finished paint business of corporate giant Kemira. The company reported sales of $425.6 million in 2002. Net sales of Tikkurila Deco rose three percent, however Tikkurila Coatings reported a three percent decline in the same category.
In the fourth quarter of 2002, Tikkurila closed its deal to acquire Akzo Nobel's industrial liquid coatings business in Nordic countries, a business with annual sales of approximately 17 million [euro] in 2001.
Denver, CO USA
Sales: $400 million
Key Personnel: Kent Child, president and CEO; Dan Colbourne, senior vice president-finance; Tushar Shah, senior vice president-operations; Ed Lanctot, area president-West Coast; Miles Tunno, area president-Rocky Mountains and Midwest; and Rolph Alden, area president- Canada.
Major Products: Architectural and decorative paints sold through a number of subsidiaries: Kwal-Howells, Frazee, Parker Paint, General Paint and Sophir Morris.
Recent Acquisition: Ideal Paints.
* It was just a few years ago that Professional Paint was founded to acquire the North American paint companies of Williams, PLC. Since then, the company has purchased a number of well-known paint companies, the latest of which is Ideal Paints. Professional Paint, through its Vancouver-based subsidiary, acquired the Toronto-based paint manufacturing company, including a distribution and service center in Rexdale and three additional service centers.
27. Duron, Inc.
Beltsville, MD USA
Sales: $350 million
Key Personnel: Robert Feinberg, chairman and CEO; Thomas Schwartzbeck, president and COO; Pete Pitroff, senior vice president; Howard Bloom, vice president, finance; Gary Salter, director of marketing; William Rosenthal, vice president, technical services; Charles Benedict, industrial maintenance; Bill Rains, architectural/spec.; and Michael Ruggiano, concrete and masonry.
* Duron's coatings business includes the manufacturing and sale decorative paint, industrial maintenance coatings and concrete and masonry coatings.
28. Orica Consumer
Clayton, VIC, Australia
Sales: $340.8 million
Key Personnel: John Joannou, general manager.
Major Products: Decorative coatings, wood care products and powder coatings
* Orica Consumer Products reported that its 2002 sales revenue rose seven percent over 2001 results.
The company manufactures and markets brands such as Dulux, Berger, Walpamur, Levene, Cabot's, Feast Watson, Intergrain, Acratex, Selleys, Rota Cota and Poly in Australia and New Zealand.
Orica also manufactures and sells powder coatings in Australia, New Zealand and Asia.
(Comercial Mexicana de Pinturas)
Mexico City, Mexico
Sales: $340 million *
* COMEX reportedly has a national market share of more than 40%.
Sales: $325.6 million
Key Personnel: Ashwin S. Dani, vice chairman and managing director.
* Asian Paints is India's largest exporter of paints, exporting to more than 15 markets in the Asia-Pacific region, Middle East and Africa. The company has also increased its already substantial share of the Indian market by acquiring a controlling share of Berger Paints.
Asian Paints, which also includes Scib Chemicals and Apco Coatings, is a select breed in India--it has in-house pthalic anhydride and pentaerythritol manufacturing capabilities to support its operations.
In January, Asian Paints announced plans to build a 100,000-tons-per-year paint manufacturing facility in Pondicherry, India. When built, the plant would be the company's largest facility.
The proposed plant became imperative due to the good growth rates witnessed by the company in the last couple of years, said Ashwin Dani, vice chairman and managing director. The last manufacturing facility set up by the company was in 1989 and the company has done an excellent job in last couple of years to further sweat the assets as well as increase productivity and capacity at existing plants. Also, all water-based products, especially emulsions, have witnessed very good growth rates, which has further strained capacity at the existing facilities for these products.
San Carlos, CA USA
Sales: $323 million
Key Personnel: Herbert R. Giffins, president and chief executive officer; Steve Ferrari, chief financial officer; Mark Zielinski, vice president, sales; Steve DeVoe, vice president-store operations; Cindie Rutledge, vice president, stores accounting; Jim Maul, vice president-information systems; Bruce Langston, marketing director; and Greg Stopher, technical director.
Major Products: Architectural, decorative and industrial maintenance coatings.
* Kelly-Moore's management team has changed dramatically since our last report. Joseph Cristiano, who had been president and CEO, resigned in January after serving in that capacity for 18 years. He was replaced by Herb Giffins.
In addition, Mark Minamyer, who had been senior vice president of manufacturing and technical, left the company, as did Fred Anwari, who had been technical director. Mr. Anwari was replaced by Greg Stopher.
(Kumgang Korea Chemical Co.)
Seoul, South Korea
Sales: $300 million *
Key Personnel: Sang Yonng Chung, honorary chairman; Mong Jim Chung, chairman; Joe Suk Ko, president; Choon Ki Kim, head of sales; and Sun Jae Hwang, vice president, technical and research.
33. Forbo Adhesives
Sales: $313.8 million
Key Personnel: Werner Kummer, chief executive officer; Jan-Erik Sangberg, executive vice president, corporate business development; Gerold Zenger, chief financial officer; and Paul J. Halg, executive vice president adhesives.
* Forbo has moved swiftly up the ranks from No. 51 in 2002 to No. 33 in 2003 thanks to its major acquisition of the Swift adhesives business. The company's presence in the global market is even more dynamic, now that Swift's adhesives activities have been integrated into its own operations. Not only did the Swift purchase give Forbo the geographical expansion it desired in North America, it also gave Forbo instant expertise in adhesives used in packaging, tobacco and paper in European markets.
Los Angeles, CA
Sales: $292 million
Key Personnel: Michael G. Rose, president/chief operating officer; Gary Hoxie, vice president, sales; Dennis R. Kromer, vice president, chief financial officer; Nicholas J. Hess, vice president operations; Andrew Gillette, vice president, manufacturing; Timothy P. Bosveld, vice president marketing; and H.B. Mislang, technical director.
Major Products: Architectural paint and industrial maintenance coatings.
New Products: Ultra-Grip and Galv-Alum.
* Dunn-Edwards' main business is architectural/decorative coatings, which represented 99% of sales in 2002.
Los Angeles-based Dunn-Edwards is celebrating a milestone this year; it has been EG-free for a decade. (To read more about this achievement, see page 12 in this issue.)
Dunn-Edwards has found that its paint ranks high among licensed painting contractors in the Los Angeles, CA, San Diego, CA and Phoenix, AZ areas. According to a recent survey, 62% of painting professionals queried said they would choose Dunn-Edwards if they were to paint their own homes. Of those professionals using Dunn-Edwards' paints, 76% said they typically choose Dunn-Edwards' paint because of its superior quality.
The independent survey was conducted by C.A. Walker & Associates, a marketing research and consulting company based in Los Angeles. Walker & Associates' research was based on a sample base of 2,926 licensed painting contractors in Los Angeles, Phoenix and San Diego.
We pride ourselves on the fact that so many professional painters use our products, said Michael Rose, president, Dunn-Edwards. To learn that almost two-thirds said they would paint their own homes with our products is the ultimate compliment.
Sales: $290 million *
* Dainippon Ink and Chemicals is a big player in the ink market, but it also has a significant coatings business, including can and coil coatings, wood finishes and UV coatings.
Blacktown, New South Wales,
Sales: $281.7 million
Key Personnel: Ian Jackson, managing director; Urs Meyerhans, chief financial officer; Stephen Fisher, group accountant and company secretary; Menaka Cooke, group human resources manager; Herman van Hummel, chief executive officer, Wattyl Australia Pty Lt.; Dean Henderson, general manager, architectural and decorative business unit; Tony Kent, business development manager; Joe McFadries, general manager, industrial business unit; Paul Breeze, technical manager Wattyl Australia Pty Ltd; Martin Robb, national manufacturing manager; Robert Sharp, logistics manager; Ashok Vanmali, general manager, information technology; John Neumann, general manager Solver Australia; Bob Hechler, president, Wattyl USA; John Foyle, general manager, New Zealand; Gareth Jennings, product manager, architectural/decorative; and Steve Hodson, product manager, industrial maintenance.
Major Products: Architectural and industrial coatings.
* For Wattyl, the Australian market remains the strength of its business. The company has operations in every state and territory in the country. Yet, Wattyl is also a global company with manufacturing interests in New Zealand, the U.S., Thailand, Malaysia, Singapore and Indonesia.
37. Renner Herrmann
Sales: $270 million *
* Renner Herrmann manufactures architectural, industrial and decorative coatings. Last year, the company sold off its interest in DuPont Performance Coatings S.A. to DuPont, its JV partner.
Johannesburg, South Africa
Sales: $236.8 million
Key Personnel: P.N. Surgey, chief executive officer; G. Smart, chief operations officer; P. Esterhuysen, group financial director; M.A. Christie and D. Swanson, managing directors; T. Neill and R. Baxter, marketing directors; B. Cooray and P. Miller, technical directors; and A. Coggins and A. Roselt, responsible for decorative.
Major Products: Architectural and decorative paint and automotive coatings.
New Products: Plascon Suede.
* According to company officials, the bulk of Barlow's sales come from decorative paint. The company also manufactures automotive coatings, a business that represents approximately nine percent of the company's coatings sales.
39. Dyrup A/S
Sales: $219.2 million
Key Personnel: Steen Bjerre, president and chief executive officer, and Hanne Lund, executive vice president.
Major Products: Architectural paints, coatings and stains for DIY, professional and industrial customers.
* Dyrup's sales in 2002 rose 3.1%. Although building activity across Europe suffered from stagnation and the anticipated economic recovery did not materialize, Dyrup officials said the company's growth and profit performance were satisfactory and matched expectations.
40. Chugoku Marine
Sales: $218.4 million
Key Personnel: Mitsuhiko Fujiwara, president.
Major Products: Coatings and adhesives for marine, container and industrial applications. The company also sells coating equipment.
* Since Japan banned TBT in 1990, CMP has been at forefront of tin-free anti-fouling research, and the company contends it is the world's most experienced paint manufacturer of tin-free anti-fouling paints.
CMP's current range of tin-free marine coatings include Sea Grandprix 1000 and Sea Grandprix 500 for new builds and repair, TFA for new builds and Seatender for repair.
Sales: $209 million
Key Personnel: Guido Forstbach, business unit manager coatings and sealants and managing director, Altana Coatings & Sealants GmbH.
Major Products: Coatings and sealants.
* Altana's coatings and sealants business has 10 manufacturing sites in seven countries and includes Rembrandtin, Rhenania Coatings GmbH, Rhenacoat S.A., Terra Lacke GmbH and Watson-Rhenania Coatings, among others.
In 2002, Altana's coatings and sealants sales rose two percent. The company's coatings are used to coat steel, aluminum, plastic, paper and board, and are also used in other industrial and high-tech markets. Altana's sealants range includes compounds for use by the food and beverage can and metal industries.
42. Rock Paint
Sales: $185.6 million
Key Personnel: Sinichiro Tsuji, president; Iwao Tsuji, chairman; Emiko Tsuji, director; Fujio Hara, marketing director, industrial; Hisakazu Uno, marketing director, architectural; and Yuji Ikeya, marketing director, automotive refinish.
Major Products: Architectural and decorative paint and automotive and industrial maintenance coatings.
New Products: Shanetsu Rock.
* Rock Paint was founded in 1952.
Alpharetta, GA USA
Sales: $183.3 million
Key Personnel: James S. Marlen, chairman, president and CEO; Stephen F. Dickey, group president; Linda E. Marquez, vice president, worldwide marketing; and Christine Stanley, vice president, worldwide technology.
Major Products: Marine, offshore, protective and industrial coatings.
New Products: PSZ 1001, 450H and Epok Tread.
* Ameron's performance coatings and finishes group experienced an improved fourth quarter in 2002, primarily because of higher shipments of protective coatings in Europe. Yet, for all of 2002, sales and profits were lower as demand for protective coatings in Ameron's primary U.S. and European markets remained depressed.
44. M.A.B. Paints
Broomall, PA USA
Sales: $180 million *
Key Personnel: Thomas A. Bruder, Jr., president; James. J. Bruder, executive vice president, CEO; Michael A. Bruder, executive vice president; James Renshaw, vice president of sales; George Przybylski and Dave Rice, marketing directors; James Kelly, vice president, technical; and Tim Miller, technical.
Major Products: Architectural and industrial coatings.
New Products: Eclipse 100% acrylic latex, flat, eggshell and low luster paints.
* The majority of M.A.B.'s sales come from architectural products. Industrial maintenance coatings account for about 10% of its business. Family-owned M.A.B. is leading supplier for state contracts in New Jersey, Delaware and several other states in the U.S.
45. DPI Co.
Anyang City, Gyonggo-do, South Korea
Sales: $166 million
Key Personnel: Y. J. Han, CEO and chairman; J.M. Yang, president; H. C. Kwon, vice president; S.K. Kim, senior executive director and marketing director; K.M. Song, technical director; J.Y. Ko, marketing manager, architectural; C.M. Ahn, marketing manager, industrial; and K.J. Kang, marketing manager, resin.
Major Products: Architectural paint, industrial coatings and resins.
New Products: Kids Color paint; Energy Saver, a water-based heat-reflecting insulation paint; Hometerior water-based paint for wallpaper; and Hometerior enamel, a non-heavy metal paint for wood and steel.
* DPI was selected as a top 50 domestic company of competitive quality for 2002 by the Technical Standards Center of the Ministry of Commerce, Industry & Energy. To be selected, applicants need to demonstrate remarkable business performance in the area of quality improvement, productivity improvement, customer satisfaction and domestic and international sales.
Longueuil, Quebec, Canada
Sales: $163.7 million
Key Personnel: Jean-Paul Lortie, chairman; Pierre Dufresne, president and chief executive officer; Martine Bazinet, secretary, vice president, legal affairs; Denis Blanchette, vice president, corporate business development, president, Sico-Becker S.A.S.; Claude Brosseau, vice president, sales and marketing, architectural sector; Yves Gosselin, vice president, operations and vice president and general manager, industrial sector, Americas; and Daniel Pellerin, president, Betonel Ltee.
Key Personnel: Architectural and industrial coatings.
New Products: Chamois premium architectural paint and Mulco ZIP Seal'n Peel solvent-based caulking.
* 2002 was Sico's best year in its 65-year history. The company's sales, bolstered by a 14.5% gain, reached an all-time high, and a 50% gain in net earnings was also a record-setter. In addition, Sico's share price rose 36.4%.
Riding high on its positive performance in 2002, this year, Sico acquired all shares of Para, Inc., an architectural paint manufacturer based in Brampton, Ontario, for $16.9 million in cash and the assumption of approximately $26.9 million in debt. Para was Sico's fifth acquisition since December 2000 and its largest purchase to date.
Founded in 1915, Para manufactures and distributes a full line of architectural paints and related products to paint retailers, mostly under the Para trademark. It is also the exclusive distributor of Sikkens branded stains in Ontario. Employing some 125 people, Para's sales were approximately $49 million in 2002. The company serves more than 400 points of sale across Canada, more than half of which are in Ontario, with a significant concentration in the greater Toronto area. In this large market, Para primarily serves independent paint and decorating specialty stores that service both the painter/maintenance and DIY markets. What most likely caught Sico's eye was the strong link to professional painters--a growing market segment and one of Sico's strategic targets.
On the new products front, Sico brought to market Chamois, a premium paint designed to stand-up to repeated washing, and Mulco Zip Seal'n Peel, a solvent-based caulking that uses a natural orange extract rather than petroleum products.
Chicago, IL USA
Sales: $158 million *
Key Personnel: Pamela Forbes Lieberman, president and chief executive officer; David Shadduck, senior vice president and chief financial officer; Bill Godwin, senior vice president, merchandise supply chain; Neil Hastie, senior vice president, chief information officer; Carol Wentworth, vice president of marketing and advertising; Rich White, sales and marketing director, architectural coatings; and Ed Majkrzak, technical director, architectural coatings.
Major Products: Architectural and decorative paint.
New Products: Tru Value solvents.
* TruServ Corp. manufactures paint for its own stores at two facilities. The Cary, IL site manufactures latex paint, while another facility in Chicago is responsible for alkyd coatings. The company's brands include E-Z Kare primer and exterior paint and Prestige interior and exterior paint.
(Corporacao Industrial do Norte, SA)
Sales: $155.2 million
Key Personnel: Antonio Serrenho, chairman; Joao Serrenho, CEO and manager, industrial maintenance and industrial coatings; Angelo Machado, member; Jose Luis Nogueira, technical director; Pedro Reis de Almeida, marketing director and manager, architectural/decorative and auto refinish; and Vasco Ribeiro, product manager, adhesives and sealants.
Major Products: Architectural and decorative paints, automotive refinish, industrial coatings, powder coatings and adhesives and sealants.
New Products: Cashmere, a special decorative matte emulsion with an extra-smooth touch and good mar resistance, and Cinoxano, a waterborne siloxane architectural paint. An exterior acrylic latex designed for quick rain resistance will be launched in September.
* Backed by an R&D staff of 100--including quality department and technical assistance personnel--CIN has manufacturing facilities in Portugal, Spain, the Canary Islands, Angola and Mozambique.
In 2002, the company acquired 33.6% of Artilin, S.A, a French company specializing in the production of high-performance niche coatings. In the industrial market, CIN sells its own products as well as products under license from Ameron. The company's powder coatings are marketed under the Megadur brand name.
49. Tohpe Corp.
Sales: $150 million *
* Tohpe Corp. manufactures industrial, automotive and marine coatings and construction chemicals.
50. Shinto Paint
Amagasaki-City, Hyogo, Japan
Sales: $140.3 million
Key Personnel: Harunobu Horibe, president; Heinz Klima, senior managing director; Ikuo Date, managing director and marketing manager; Akira Okada, managing director; Akira Kubo, technical director; Seiichiro Kuwajima, product manager, automotive division; and Minoru Aono, product manager, industrial maintenance.
Major Products: Architectural/decorative, automotive and industrial maintenance coatings.
* Shinto, a subsidiary of Sumitomo Chemical Co., reports that it has 85 people employed in R&D. The company's Taipei, Taiwan manufacturing facility produces automotive and industrial coatings.
51. Yasar Paint Group
Sales: $140 million *
Key Personnel: Ahmet Yigitbasi, chairman, Yasar Holding Paint Group.
* A store opening in 1927 marked the beginning of what was to become the vast array of companies--not all devoted to paint--that make up the Yasar Group. Today, there are 13 companies in the Yasar stable operating in the paint and chemical sector.
In 2002, three Yasar companies--Yasas, Bayrakh and Akril--merged to form Dyo Paint Manufacturing and Trading Company Co. In December, Turkish Press Review reported that Yasar Paint Group was in talks with SigmaKalon to pursue some form of cooperative effort and/or partnership. Yasar's Ahmet Yigitbasi said, The Yasar Group will grow much more through international cooperation, and it is open to any foreign partnership that will open up markets and provide new technologies.
52. National Paints
Abu Aldana, Jordan
Sales: $138 million
Key Personnel: Michael Al-Sayegh, president; Salim Al-Sayegh, general manager, UAE branch; Ibrahim Al-Sayegh, vice president; Nazi Al-Sayegh, QA director and PR manager; Ramzi Salameh, marketing director; Mujahed AbuDoleh, technical director; and N. Al-Rimawi, product manager, powder coatings.
Major Products: Decorative paint, automotive, industrial and powder coatings and resins.
New Products: National New Generation, National Special Effect, National Antique Stucco and National Vinyl Silk emulsion.
* National Paints has 10 manufacturing facilities and 15 employees working in R&D. The company is having an active year in the new products area. A UV curing paint for wood, a one-component polyurethane coating and a solvent-free polyurethane coatings are all scheduled to launch before the end of the year.
53. Yung Chi
Sales: $137 million *
Key Personnel: T. Y. Chang, chief executive officer, and H.L. Shen, genera] manager.
* Yung Chi makes and sells architectural/decorative paint and industrial and coil coatings.
54. Lord Corp.
Cary, NC USA
Sales: $130 million *
Key Personnel: Richard L. McNeel, president; Arthur B. Belden, vice president, finance and treasurer; Sheldon A. Buckler, chairman; Gerald M. Estes, vice president/general manager, materials division; Thomas J. Gibbons, vice president/general manager, mechanical products division; David L. Lewis, vice president/general manager, chemical products division; and James W. Wright, vice president, legal affairs.
Major Products: Adhesives and coatings.
* Privately held Lord Corp.'s sales in 2002 were reported to be $422.5 million. Adhesives, sealants and coatings sales were estimated to be approximately $130 million.
55. Ace Hardware
Matteson, IL USA
Sales: $128 million *
Key Personnel: Howard J. Jung, chairman; David F. Hodnik, president and CEO; Richard F. Bristol, director, Ace Paint division; and Jack D. Wickham, director of manufacturing and R&D.
Major Products: Architectural and decorative paint.
New Products: Simply Magic ceiling paint.
* Last year, Ace, as a whole, tallied just over $3 billion in wholesale sales. The Ace Paint brand, which continues to be one of the firm's hottest sellers, is also earning a reputation for quality. Ace Royal Accent satin latex and Ace Royal Touch satin wall and trim paint received the highly coveted Good Housekeeping Seal of Approval.
Ace reports that Simply Magic ceiling paint was the highest volume new product ever launched. To help fuel continued success in the paint aisle, Ace installed approximately 600 Color Your Life paint decor programs in 2002.
Ace's well-known pitchman John Madden has a new teammate: national home improvement expert Leu Manfredini is Ace's new Helpful Hardware Man.
56. Vogel Paint
Orange City, IA USA
Sales: $126 million *
Key Personnel: Drew Vogel, president; Doug Vogel, trade sales marketing director; and Mark Vogel, industrial sales marketing director.
Major Products: Architectural/decorative coatings, industrial coatings and heavy-duty protective coatings.
New Products: StudioCollection palette.
* Diamond Vogel Paints' new StudioCollection is a palette of 1,320 updated colors including 60 lighter off-white shades and 60 bold accent colors.
Sales: $115.4 million
Key Personnel: Kurt Berghofer, CEO; Clemens C. Steiner, CEO; Elisabeth Pottinger-Berghofer, HR&CI; Gerald Hemedinger, R&D--innovations and product manager, Tiger Drylac powder coatings (architectural); Thomas Schmidt, R&D; Gerd Schlager, technical director powder coatings; Robert Strouhal, global sales manager and product manager, Tiger Drylac powder coatings (industrial); Thomas Knoll, sales manager, Europe and manager, Tiger Drylac powder coatings (OEM); Christian Ebenberger, marketing and sales; Andreas Bauer, global plant manager; Reinhold Freiseisen, CFO; and Erhard Klassen, finance.
Major Products: Architectural, industrial and OEM powder coatings.
* Tiger, one of the first companies in Europe to enter the field of powder coating technology, is readying the global launch of Tiger Drylac Wood powder coatings for MDF and wood products. The technology is based on IR thermal cure and LTV cure. In addition, the company said it is in the pre-marketing phase for powder coatings compliant to AAMA 2605 with 10 years South Florida exposure.
58. Tambour, Ltd.
Sales: $111 million *
Key Personnel: Shmulik Porre, chief executive officer; Yacov Mor, R&D manager; Tovi Carmen, vice president, marketing; and Omer Shoshany, vice president, sales.
Major Products: Architectural and decorative paint and industrial coatings.
* Tamarin is Tambour's marine paint subsidiary, selling a comprehensive line of marine paints that are exported to many countries via warehouses in Hong Kong, Singapore, Durban and Piraeus.
59. Red Spot
Evansville, IN USA
Sales: $106 million
Key Personnel: Charles D. Storms, president and CEO; J.C. (Pete) Ruthenburg, executive vice president and COO; Mark A. Lutterbach, vice president, R&D; Janice E. Gould, marketing director; Marilyn A. Bara, new products marketing director; Michael M. Merkel, commercial development manager; Brandon Willis, exterior automotive product manager; Jeffrey M. Scheu, interior automotive product manager; Timothy Tanner, UV product manager; and Robert Hostettler, manager, international operations and N.A. transplants.
Major Products Automotive coatings for interior and exterior application and industrial maintenance coatings.
* Red Spot, which is celebrating its 100th anniversary, has two manufacturing facilities in the U.S., and global alliances in England (with Sonneborn & Reick) and Japan (with Fujikura).
For companies to watch, turn to page 60.
Should your company be here? Contact us at Coatings World, 70 Hilltop Road, Ramsey, NJ 07446 USA; Fax: 201-825-0553; E-mail: firstname.lastname@example.org.
Ace Hardware (55)
Akzo Nobel (1)
Asian Paints (30)
Becker, Ab. Wilh. (18)
Benjamin Moore (15)
Chugoku Marine Paint (40)
Dai Nippon Toryo (23)
Dainipp. Ink & Chem.(35)
DPI Co. Ltd. (45)
Dyrup A/S (39)
Forbo Adhesives (32)
H.B. Fuller (13)
Hempel A/S (22)
ICI Group (3)
Kansai Paint (12)
Lord Corp. (54)
M.A.B. Paints (44)
Masco Corp. (19)
National Paints (52)
Nippon Paint (11)
Orica Con. Prod. (28)
PPG Industries (2)
Professional Paint (26)
Red Spot (59)
Renner Herrmann (37)
Rock Paints (42)
Rohm and Haas (14)
RPM, Inc. (8)
Shinto Paint (50)
Sika AG (16)
Tambour Ltd. (58)
Tohpe Corp. (49)
Vogel Paint (56)
Yung Chi Paint (53)
* Company to watch.
Companies To Watch
Sales: $92 million
Key Personnel: Philippe Erard, president and CEO; Charles Codrea, CFO; and Arthur W. Broslat, executive vice president and COO, paints division.
Major Products: Architectural and decorative paints and coatings.
* Corimon's sales in 2002 were reportedly $92 million. This year, Corimon received some bad news from Wall Street. The New York Stock Exchange (NYSE) determined that American Depository Receipts (ADRs) of Corimon C.A. were to be suspended prior to the opening on May 8. Corimon did not contest nor appeal the NYSE's determination.
The NYSE reached its decision in view of the fact that Corimon had fallen below the NYSE's continued listing standards regarding average global market capitalization over a consecutive 30 trading-day period of not less than $15 million and, most recently, average global market capitalization over a consecutive 30 trading-day period of not less than $50 million and total stockholders' equity of not less than $50 million. The NYSE had previously accepted a business plan, provided by Corimon that would have brought the company into compliance with continued listing standards, However, Corimon, was unable to meet certain material aspects of such plan due t,o adverse macro-economic conditions in Venezuela including the significant devaluation of the Venezuelan currency, the bolivar, since 2002. Additionally, the NYSE said Venezuela's current political and economic climate does not indicate the improvement of such factors in the foreseeable future in order to allow the company to achieve compliance with the NYSE's continued listing standards.
Sales: $89 million
Key Personnel: Uros Slavinec, president of the board; Matjaz Hafner, vice president; Marko Vresk, vice president; Janez Jesenko and Sonja Kovac, product managers, decorative and architectural coatings; Stevo Buinac, Mladen Mihalec and Lojze Lencek, product managers, industrial coatings; Peter Zupan, refinishing coatings; and Matjaz Skofic, product manager, automotive OEM.
Major Products: Decorative and architectural coatings, industrial coatings and automotive OEM and refinish coatings. The company also manufactures adhesives, starches and resins.
* In spite of the "demanding conditions of the competition" in 2002, Helios fulfilled its "planned sales goals, and even exceeded them," said Uros Slavenic, president.
The company, which has five manufacturing facilities and an R&D staff of 120, recorded annual sales in 2002 of $109.9 million. Of that, approximately $89 million came from paint, coatings and adhesives.
Helios's shares have been publically listed on the Ljubljana Stock Exchange since September 1996. Last year, its stock was the most frequently traded stock on the free market, as its its turnover represented 1.6% of total turnover of shares on the exchange.
Kansas City, MO USA
Sales: $85 million
Key Personnel: Tom Osborne, president and CEO; George Shannon, executive vice president; Steve Eiserer, vice president of finance; Remi Brand, vice president, R&D; Mark Thomas, manager of product marketing; Joe Davis, director of technical services; Lake Barrett, director of water/wastewater; Tex Enoch, director of water storage; Joe Schmit, director of Stratashield; Terry Wallace, director of Chemprobe; and Al Morris, director of specialty coatings and linings.
Major Products: Architectural and industrial coatings.
New Products: Series 434/435 epoxy mortar system for extreme wastewater environments.
* If you want to see Tnemec's coatings, look up next time you drive by a water tower. The company is a leading manufacturer of coatings for this application and for other niche markets, such as the water/wastewater industry.
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|Date:||Jul 1, 2003|
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