2008 Top Companies Report.
Profiling so many companies, common themes begin to emerge. While the rising cost of raw materials and the formulation of greener technology are major driving forces in today's industry among the largest coatings companies, globalization continues to be the major trend influencing the top paint, coatings, adhesives and sealants firms. As has been the case for the past several years, the Asia Pacific region is the hottest spot, particularly China, and is fueling much of the growth. However, we also notice that more coatings firms are becoming bullish on Eastern Europe, particularly Russia and the Middle East is also becoming more ripe for growth opportunities with an increase in capital expenditure in the region.
On the acquisition front it was an exciting year. Coatings headlines were dominated by AkzoNobel's takeover of ICI and PPG's acquisition of SigmaKalon. Last year ICI was ranked third in our report and SigmaKalon tenth. Akzo has a firm hold on the number one spot, while PPG jumped to third past Sherwin-Williams and is now neck and neck with number two Henkel.
These blockbuster deals, along with many other smaller transactions further contributed to the consolidation of the industy, a trend that will continue as we move forward. While we can predict that the tough business climate coatings companies are operating in today with sky-rocketing oil prices will only get tougher, who knows what companies will be here next year and which will not.
I would also like to note that you may notice the design of this year's report has changed as has the number of companies we are reporting on in print. We hope this new design offers you a more concise and focused took at the major coatings companies across the globe. But please tune in to our online edition where you will find information on many other companies.
1. AkzoNobel (The Netherlands) $13.4 billion
2. Henkel (Germany) $10.3 billion
3. PPG (USA)$10.2 billion
4. Sherwin-Williams (USA) $6.5 billion
5. DuPont (USA) $4.3 billion
6. BASF (Germany) $3.6 billion
7. RPM (USA) $3.3 billion
8. Valspar (USA) $3 billion
9. 3M (USA) $2.5 billion
10. Kansai Paint (Japan) $2.18 billion
11. Nippon Paint (Japan) $2.15 billion
12. Sika (Switzerland) $2.1 billion
13. Masco (USA) $1.53 billion
14. Jotun (Norway) $1.5 billion
15. H.B. Fuller (USA) $1.4 billion
16. DAW (Germany) $1.34 billion
17. Comex (Mexico) $1.3 billion
18. Hempel (Denmark) $1.27 billion
19. Asian Paints (India) $1.2 billion
20. Beckers (Norway) $1.15 billion
--TIM WRIGHT * EDITOR
1 AkzoNobel Sales: $13.4 billion
Bigger, stronger, more focused
To say 2007 was an eventful year for AkzoNobel is an understatement. Active on all fronts, it truly was a transformative year for the coatings giant.
First the company announced that it would be relocating its head office from Arnhem in the Netherlands to the Dutch capital, Amsterdam, in summer 2007.
Next, it divested its pharmaceutical activities, Organon BioSciences, to Schering-Plough and acquired Imperial Chemical Industries (ICI) to create one of the world's foremost industrial companies.
During the year AkzoNobel continued its march into emerging makets as well. Particlulay bullish on China, the company opened a decorative coatings facility in Langfang and Hans Wijers, CEO and chairman, announced new strategic targets for China including a revenue target of $2 billion by 2012.
Late in the year, it also finalized plans for new segments of the company effective in 2008. The integrated organization was set up to operate in three business areas--Decorative Paints, Performance Coatings and Specialty Chemicals.
Early in 2008, the company also launched a new corporate brand-Tomorrow's Answers Today--along with a new logo.
ACQUISITION OF ICI
AkzoNobers purchase of UK-based ICI was the major headline of the year in the coatings industry and further consolidated Akzo's position as the world's largest maker of paint and coatings. Already positioned as the largest global industrial coatings manufacturer, the company now also boasts it is number one in decorative paints as a result of the ICI deal, which gives it ownership of the popular Dulux and Glidden brands of decorative paints among others.
In addition to strengthening its leading position in the coatings industry with a market share of approximately 15%, the purchase of ICI significantly increases AkzoNobers exposure in North America and emerging markets, as well as in decorative coatings.
At the time of the deal, Wijers said, "This gives us a mega-leap of probably ten years in building our position in the emerging markets." Roughly a third of ICI's sales came from developing regions.
In addition, Wijers added, "It also gives us a number-two position in the largest coatings market in the world, which is the U.S."
AkzoNobel bought ICI for approximately $16.2 billion and combined with ICI's paint sales, boosted its paint and coatings revenue in 2007 to $13.4 billion from $7.8 billion the previous year (figures do not include the company's specialty chemicals operations).
The Decorative Paints business unit--includes Decorative Europe, Decorative Americas and Decorative Asia segments--was respsonbile for for approximately $7.26 billion of the total revenue.
The Performance Coatings business unit--includes Industrial Activites, Marine and Protective Coatings, Car Refinishes and Packaging Coatings segments--accounted for approximately $6.16 billion.
Under the Decorative Paints business unit, Decorative Europe posted sales of approximately $3.9 billion; Decorative Americas $2.4 billion; and Decorative Asia $917 million.
Across Europe the unit posted positive gains particularly in the UK, Nordics, Baltics and Russia. Centenary celebrations were held for the Balakom brand in the Czech Republic. In product news, the high solids Sikkens Rubbol XD range--introduced in the Netherlands in 2006--was rolled out in other European markets. In 2007 Akzo also launched a second generation dirt repellant exterior wall paint, Herbol Symbiotic, in Germany (other countries to follow in 2008).
In the U.S. Akzo has been busy integrating the Flood organization which it acquired in 2006 into its existing wood care activities and will look to create growth in the large-scale outlets segment moving forward.
This was also the first year Akzo reaped the benefits from the 2006 Sico acquisition in Canada. Of particular note, in 2007 Akzo launched the zero emission Sico Design line.
In Asia Pacific Akzo continues to develop business fragmented between China, Indonesia Vietnam and Papua New Guinea. In China, it opened a new facility for paint products in Langfang, which underlined its commitment to growing in Asia.
In South America there was strong development in the company's wood care position in Argentina where it is the market leader with its Cetol brand.
The Industrial Activities segment of AkzoNobel's Performance Coatings business unit accounted for approximately $2.7 billion in sales in 2007 and includes the company's industrial finishes and powder coatings operations.
While the business faced tough challenges in North America due to the U.S. housing recession, it continued to invest and achieve growth in the emerging markets of China, Vietnam, India, Russia, the Nordics and Eastern Europe. In China construction began on another production facility in Tianjn.
In North America the company did finalize the acquisition of wood coatings manufacturer Chemcraft. Not only did this deal broaden and strengthen the company's industrial wood coatings portfolio, but gives it access to Chemcraft's distribution areas in North America where it previously lacked a significant presence.
Akzo's powder coatings business, which is the largest in the world delivered solid results in 2007 and was active particularly on the expansion front, relocating with its customers to Eastern Europe and following the migration of the U.S. industry base to China. The company inaugurated a factory in Moscow, expanded facilities in the Czech Republic, increased capacity in Turkey and opened a facility in Dubai. The powder business also opened a factory in Chengdu in central China.
MARINE & PROTECTIVE COATINGS
The Marine and Protective Coatings segment reported sales of approximately $1.7 billion in 2007 and includes AkzoNobel's Aerospace Coatings activities. For the third year in a row the segment achieved double-digit growth revenue.
Of particular note, during 2007 AkzoNobel's Intersleek 700 antifouling coating received the UK's prestigious Queen's Award for Enterprise in the Innovation category. The company also opened a new R&D facility at Felling in the UK and marked the centenary of U.S. operations. Another key event was the acquisition of the Ceilcote business in the U.S. In addition, towards the end of the year Akzo's marine and protective coatings business completed the construction of a new protective coatings plant at Suzhou in China.
AkzoNobel's Car Refinishes segment posted sales of approximately $1.2 billion in 2007 and experienced growth in all regions except its commercial vehicles activities in North America. Last year resulted in a record number of aftermarket approvals with car makers worldwide including Toyota, GM, Ford, Hyundai and Skoda. The refinish business also opened a number of new facilities, including a polymer research center in Sassenheim, the Netherlands. In addition, it installed a new automatic dispensing unit at Pontiac, MI, which allowed it to complete the closure of its North Bruch plant. The company was busy in India as well, doubling the size of its research facility in Bangalore.
Akzo Nobel N.V.
Strawinskylaan 2555, P.O. Box 75730 1070 AS Amsterdam, the Netherlanes
Tel: (31) 20 502 7555: Fax: (31) 20 502 7666
* 2007 SALES REVENUE: $13.4 billion (2006 SALES: $7.8 billion)
* KEY PERSONNEL: Hans Wijers. CEO and board member responsible for coatings; Rinus Rooseboom decorative coatings general manager; Bob Taylor. industrial finishes general manager; Rob Molenaar. powder coatings general manager; Bill McPherson, marine and protective coatings general manager; Jim Rees. car refinishes general manager
* MAJOR PRODUCTS: The portfolio includes decorative paints: products for industrial applications including powder and specialty coatings: car refinishes: marine, protective and aerospace coatings; and coatings-related products such as wood and building adhesives.
* 2007 ACQUISITIONS: Ceilcote business from German-based KCH Group; Chemcraft Holdings Corporation in the U.S., UK-based Imperial Chemical Industries (ICI).
2 Henkel Sales: $10.3 billion
Adhesives business significantly strengthened
April 1, 2007 saw the birth of Henkel s new business sector Adhesives Technologies, a merger of the two previous business sectors Consumer and Craftsmen Adhesives and Henkel Technologes. Working together, these will be able to develop their markets more effectively and achieve faster growth, according to the company. Alois Linder heads up the new business sector. Jochen Krautter, the former head of Henkel Technologies, has now retired after 34 years with Henkel.
The Adhesives Technologies business unit--includes Industry, Building Adhesives and Consumer Craftsment segments--represented 43% of Henkel Group's revenue in 2007 totaling $7.8 billion, up from $6.9 billion in 2006.
ACQUISITION OF NATIONAL STARCH
In the course of 2007, Henkel concluded an agreement involving a back-to-back transaction with AkzoNobel allowing the company to acquire National Starch's Adhesives and Electronic Materials businesses--previously owned by ICI.
"This acquisition represents a milestone in our 130-plus-year corporate history and points Henkel clearly in the direction of further profitable growth," said Ulrich Lehner, chairman of the management board of Henkel KGaA.
In 2007, these two business segments of National Starch generated sales of approximately $2.5 billion. The purchase price was approximately $5 billion. Following the integration, annualized sales of Henkel's Adhesives Technologies business sector increased to about $10.3 billion.
By acquiring the Adhesives and Electronic Materials businesses of National Starch, Henkel further strengthened its leading position in the global adhesives markets, particularly in the industrial segment.
Within Henkel's Adhesives Technologies business sector, the acquisition will have a particular impact on the packaging and wood adhesives businesses, as well as on the electronics business, the company said.
Henkel also sees a significant strengthening of its regional market positions. The share of sales accounted for by the Asia-Pacific region will, with the acquisition of the National Starch businesses, increase from eight percent to approximately 12%.
NEW PRODUCTS IN 2007
2007 was an active year for Henkel in terms of new product launches. Loctitie 5610 was rolled out. This temperature-resistant two-pack silicone adhesive is suitable for the bonding of glass ceramic stove tops, microwave doors and baking overns. Other new produtcts in 2007 include Pattex PL600 Instant Tack, Dorus FD 150/6 LS, Adhesin FiberPlus, Bonderite 2718, Granocoat X, Hysol QMI 708, Hysol QMI 5100/5200, Loctite 435/438, Loctite Cure Jet LED, Metylan Power Granulate plus, MiraFoil, P3 Disperse, Sista Universal Seal and Repair, Sista Easy Silicone and Tangit FP Fire Protect System.
Henkel AG & Co. KGaA
Henkelstrabe 67, 40589
Tel: (49) 211 797 0; Fax: (49) 211 798 4040
* 2007 SALES REVENUE: $10.3 billion
(2006 SALES: $6.9 billion)
* KEY PERSONNEL: Ulrich Lehner, chairman of
the management board; Kasper Rorsted, CEO;
Alois Linder executive vice president adhesives
* MAJOR PRODUCTS: The portfolio includes
wallpaper pastes; ceiling, wall covering and tile
adhesives; home decoration products; sealants;
polyurethane foam fillers; cyanoacrylates; contact
adhesives; wood glues; asembly adhesives; PVC
pipe adhesives; flooring adhesives; waterproofing
products; thermal insulation products; coatings
roofing products; glue sticks; glue rollers; correction
products; adhesive tapes; industrial adhesives and
sealants; surface treatment products; soldering
* 2007 ACQUISITIONS: Adhesives and Electronic
Materials businesses from National Starch.
Sales: $10.2 billion *
In 2007, PPG set out to complete the
largest acquisition in its history
when it agreed to buy SigmaKalon
from private equity firm Bain Capital for
$3.2 billion. SigmaKalon Group,
Uithoorn, the Netherlands, produces
architectural, protective, marine and
industrial coatings and brought in sales
of approximately $2.7 billion in 2007.
The company has been focusing on
growth in Asia during the past four
years it has been owned by Bain Capital,
including a joint venture with Shanghai
IVY and the opening of a research center
architectural and auto
industrial and packaging
reported $7.5 billion in sales and made
up 67% of PPG's business.
With the acquisition, PPG's coatings
sales have increased sharply and
have given PPG one of the broadest
geographic reaches of any coatings
company in the world.
PPG further sharpened its focus on
coatings in 2007 by selling its fine
chemicals business, divesting its interest
in a fiber glass venture and closing
a fiber glass facility. In addition, in
2008 PPG intends to divest its automotive
glass and service businesses.
With the acquisition of SigmaKalon,
almost three-fourths of PPG's sales
will come from coatings and more than
50% will come from outside the U.S.
While the sale of SigmaKalon to PPG
was not officially completed until Jan. 2,
2008, for purposes of this report we combined
the two companies to better illustrate
the consolidation in the industry.
The protective, marine and industrial
coatings businesses of SigmaKalon
will be managed as part of
PPG's existing coatings business. The
SigmaKalon architectural coatings
business in Europe, the Middle East
and Africa will be reported as a new
separate segment known as Architectural
Coatings-EMEA. This business
represents approximately 75% of
SigmaKalon's historical sales.
PPG continued to contribute to the
consolidation of the coatings industry
beyond the SigmaKalon
deal in 2007.
The company significantly
of North America. In
January 2007, PPG
acquired the architectural
and industrial coatings businesses
of Renner Sayerlack, S.A.,
Gravatai, Brazil. In July of last year,
PPG acquired Barloworld Coatings
Australia, an architectural paint unit
of South African-based Barloworld,
Ltd. With this acquisition, PPG became
the largest coatings supplier in
INVESTMENT IN CHINA
PPG is continuing to invest in new
facilities in China. In Southern
China, PPG opened an athletic
footwear coatings application center
and in Wuhu, in the Anhui Province,
PPG is constructing a new automotive
coatings manufacturing plant to
serve China's largest independent
automaker and one of the fastest
growing automakers in the world,
Chery Automobile Co., Ltd. The facility
will be capable of coating more
than one million vehicles a year.
PPG Industries, Inc.
One PPG Place
Pittsburgh, PA 15272 USA
Tel: (412) 434-3131
* 2007 SALES REVENUE: $10.2 billion (2006 SALES: $6.3 billion)
* KEY PERSONNEL: Charles Bunch, chairman and CEO; J. Rich Alexander, St. VP, coatings; William Wulfsohn, Sr. VP,; Pierre-Marie De Leener, Sr. VP, architectural coatings; Charles Kahle, VP, coatings R&D; Dennis Kovatsky; VE automotive coatings; Thomas Mauck, VP, protective and marine coatings; Michael McGarry, VP, coatings, and managing director, PPG Europe; David Morris, VP, aerospace coatings and sealants; John Outcalt, VP, automotive finishes-Americas; Viktor Sekmakas, VP, coatings and managing director, Asia-Pacific; Scott Sinetar, VP, architectural coatings; Jorge Steyerthal, VP, coatings, and managing director, Latin America; Marc Talman, VP, packaging coatings.
* MAJOR PRODUCTS: Aerospace coatings, architectural coatings, automotive refinishes, automotive coatings, industrial coatings, packaging coatings.
* 2007 ACQUISITIONS: Renner Sayerlack S.A. in Brazil; ICI India; Barloworld Coatings Australia; Netherlands-based SigmaKalon; and Champion Coatings in the U.S.
Sales: $6.5 billion
Global Group continues to expand
Sherwin-Williams' paint and coatings sales in 2007 amounted to approximately $6.5 billion. (The company's ranking excludes estimated sales from non-paint items in the Paint Stores Group and other administrative items reported by the company.)
PAINT STORES GROUP
Sales for the Paint Stores Group, which serves North American architectural paint customers and industrial maintenance and marine coatings users, increased 2.3%. Sales in certain areas were hurt by the downturn in new home construction and existing home sales, however demand in commercial construction and maintenance markets and industrial maintenance coatings markets remained strong, the company reported.
During the year the group completed the acquisitions of M.A. Bruder & Sons, Inc., Philadelphia, PA, and Columbia Paint & Coatings Co., Spokane, WA.
Also in 2007, the group opened 107 new paint stores boosting its store count to 3,325 in the U.S. and Canada.
Sales for the Consumer Group, which supplies branded and private label products to retailers throughout North America and supports the Paint Stores Group, decreased 3.9% in 2007 due to sluggish DIY sales, the company said. Of roughly 56,000 retail outlets in the U.S. that sell coatings or related products, about 35,000 offer one or more product lines manufactured by the Consumer Group and include popular brands such as Dutch Boy, Pratt & Lambert, Minwax and Thompson's WaterSeal.
In September, the Consumer Group completed the acquisition of the VHT brand of automotive specialty aerosol coatings.
Sales for the Global Group rose 8.7% during 2007. In addition to well-established operations in countries like Brazil, Argentina, Chile and Mexico, Sherwin-Williams continues to extend its reach around the globe. During the year it added 50 new paint stores, automotive finishes branches and OEM finishes facilities, bringing its total to 519.
The Global Group was very active on the acquisition front in 2007, completing four acquisitions. It acquired Nitco Paints, a manufacturer and distributor of architectural coatings in Mumbai, India, and represents Sherwin-Williams' entry into the Indian market. The company also acquired Pinturas Industriales, and industrial paint company headquarted in Montevideo, Uruguay and NAPKO, an industrial maintenance coatings company in Monterrey, Mexico. At the end of the year, it also acquired Flex Recubrimientos, Acabados Automotrices and related companies also in Monterrey, Mexico.
The Sherwin-Williams Company
101 Prospect Ave, N.W.
Cleveland, OH 44115-1075 USA
Tel: (216) 566-2000; Fax: (216) 566-3670
* 2007 SALES REVENUE: $6.5 billion (2006 SALES: $6.3 billion)
* KEY PERSONNEL: Christopher Connor, chairman and CEO; John Morikis, Pres. and COO; Robert Davisson, Pres. & GM, Southeastern div., Paint Stores Gr.; Timothy Drouilhet, Pres. & GM, Eastern div., Paint Stores Gr.; Monty Griffin, Pres. & GM, Mid Western div., Paint Stores Gr.; Thomas Hablitzel, Pres. & GM, Automotive div., Global Gr.; George Heath, Pres. & GM, Chemical Coatings div., Global Gr.; Drew McCandless, Pres. & GM, Paint & Coatings div., Consumer Gr.; Steven Oberfield, Pres., Paint Stores Gr.; Cheri Phyfer, Pres. & GM, Southwestern div., Paint Stores Gr.; Harvey Sass, Pres. & GM, Diversified Brands div., Consumer Gr.; Alexander Zalesky, Pres. & GM, International div., Global Gr.
* MAJOR PRODUCTS: Architectural and decorative paint, stains and varnishes, wood finishing products, caulks, adhesives, automotive finishes and industrial and marine coatings.
* 2007 ACQUISITIONS: M.A. Bruder and Columbia Paint in the U.S.; Pinturas in Uruguay; Napko and Flex Recubrimientos in Mexico; and Nitco in India.
Sales: $4.3 billion
EcoConcept wins 2007 PACE Award
Sluggish auto sales could be a little more than a bump in the road for DuPont Coatings and Color Technologies, one of DuPont's five business segments. It's the world's largest provider of automotive coatings and has large contracts with every U.S. automaker--along with many refinishers to provide them with automotive finishes.
The unit includes the DuPont Performance Coatings and DuPont Titanium Technologies (Ti[O.sub.2]) businesses. During the year the Performance Coatings business aligned its businesses into three primary market-facing segments--DuPont Refinish (for the automotive aftermarket sector), DuPont Automotive Systems (for auto OEMs) and DuPont Industrial Finishes (includes powder coatings, marine and aviation finishes).
Sales for Coatings and Color Technologies in 2007--minus the Ti[O.sub.2] operations--was valued at approximately $4.3 billion.
As part of its continued growth strategy in emerging markets, DuPont opened its second office in Russia in 2007. The St. Petersburgh office will focus specifically on the growing automotive industry in Russia. The opening follows expansions of the company's offices in Moscow and Kiev in the Ukraine, and the launch of an office in Almaty, Kazakhstan.
In India, the company opened its second refinish training center in Bangalore. Also, DuPont signed a global cooperation agreement with Korean car manufacturer, Hyundai Motors, to supply Hyundai bodyshops with DuPont's refinish products, training and service.
In terms of new products, DuPont introduced two new water-based finishes. DuPont Cromax Pro was designed to help collision repair shops meet stricter emissions regulations that take effect in 2009 in California. Similar regulations are expected in Canada. The second product, DuPont Imron ZV HG polyurethane enamel is a water-based version of a coating that became known for its wet look.
1007 Market St.
Wilmington, DE 19898 USA
Tel: (302) 774-1000
* 2007 SALES REVENUE: $4.3 billion (2006 SALES: $4 billion)
* KEY PERSONNEL: Charles Holliday, chairman and CEO; Ellen Kullman, executive VP; Terry Caloghiris, group VP, DuPont Coatings & Color Technologies; Many McQuade, VP & GM DuPont Automotive Systems; Jonn McCooi VP & GM, DuPont Refinish Systems; Ferdinand Bauerdick VP & GM, DuPont Advanced Coatings Systems and DuPont Performance Coatings Europe.
* MAJOR PRODUCTS: Automotive OEM and refinish coatings, industrial finishes, powder coatings, marine and aviation finishes.
6 BASF Coatings
Sales: $3.6 billion
Russia is a key growth market
BASF Coatings is amongst the world's largest makers of coatings for automotive and industrial applications. In South America it is one of the leading producers of architectural coatings in the premium segment. In the automotive industry BASF Coatings is highly focused on developing new solutions for integrated coating processes, eco-efficient coatings, as well as highly scratch resistant clearcoats. The company is also exploring new technologies and markets such as special coatings for wind power plants.
BASF Coatings increased sales in all regions in 2007 except North America due to a downturn in housing construction and in the automotive industries. The company turned in sales of $3.6 billion.
Growth in automotive coatings in China and Europe, and in architectural coatings in South America contributed to the increase in sales.
In automotive refinish coatings, the company posted slightly lower sales than in 2006 due to negative currency effects despite strong demand in commercial transport coatings in Europe, and the expansion of its Glasurit and Salcomix brands.
Sales in industrial coatings surpasssed last year's. In Europe, organic growth and the activities the company added as part of the acquisition of the construction chemicals business in 2006 contributed to the growth in sales, which compensated for weaker business in North America and Japan.
As part of its growth strategy, BASF Coatings continued in 2007 to expand its presence in the growth markets of Eastern Europe and Asia, particularly in Russia, China and India.
In China, production began at a new plant for HDI-based Basonat coatings in Caojing. The company's third refinish coatings training center opened in Shenyang during the year. The others are located in Kunshan, close to Shanghai, and Beijing.
In Russia, construction continued on a plant for automotive coatings in Pavlowski Posad. Production started up in May 2008. The new plant shows the company's commitment to the burgeoning Russian automotive market.
BASF Coatings AG
Glasuritstrasse 1, 48165
Tel: (49) 2501-14-0: Fax: (49) 2501-14-3373
* 2007 SALES REVENUE: $3.6 billion 12006 SALES: $3 billion)
* KEY PERSONNEL: Raimar Jahn, president BASF Group's Coatings Division & CEO BASF Coatings AG; Juan Ximenez-Carrillo, Automotive OEM Coatings Solutions (Europe); Christoph Hansen Automotive Refinish Coatings Solutions (Europe); Peter Fischer, Industrial Coatings Solutions (Europe); Geerd Jansen, Business Management Architectural Coatings (Europe); Jay Baker, Coatings Solutions North America. Mutsuo Aoki, Coatings Solutions Asia-Pacific: and Rui Goerck, Coatings Solutions South America.
* MAJOR PRODUCTS: Automotive OEM and refinish coatings, industrial coatings and decorative paint.
* 2007 ACQUISITIONS: RELIUS Group
Sales: $3.3 billion
The industrial and consumer segments combined for $3.3 billion in sales in 2007. The industrial products segment accounted for 63% of sales and includes roofing systems, sealants, corrosion control coatings, polymer floor coatings, fiberglass reinforced plastic grating, specialty chemicals and recreational marine coatings sold in approximately 150 countries and territories. Industrial brands include Tremco, Stonhard, Carboline, illbruck, Day-Glo, Euco, Dryvit, Fibergrate and Pettit.
The consumer products segment accounted for 37% of sales and includes rust-preventative and small project paints, primersealers, wallcovering preparation and removal products, wood stains and finishes, mildew resistant paints, automotive repair and maintenance products and hobbyist products, sold mainly in North America. Consumer brands include Rust-Oleum, DAP, Zinsser, Varathane, Bondo and Testors.
In 2007, RPM acquired five businesses: The Dane Group, Nu-Chem, Permaquik, The Watco Group and Tor Coatings. RPM also acquired 14.99% of the outstanding shares of Kemrock Industries. All are now under the RPM umbrella.
RPM's Rust-Oleum subsidiary enhanced its position in Europe during 2007 through two acquisitions. The Watco Group was purchased for $20 million and is a manufacturer and marketer of coatings for industrial maintenance applications, based in Godalming, England. Tor Coatings Limited, a $45 million specialty coatings producer based in Birtley, England, was also purchased and serves both consumer and industrial markets with brands including Tor, Blackfriars, Holdtite, Solignum, Ratcliffe and Macroplexx.
The company's Fibergrate subsidiary acquired a 14.99% interest in Kemrock Industries & Exports, Ltd. Kemrock is a $30 million producer of fiberglass reinforced plastic (FRP) components based in Vadodara, Gujarat State, India. It produces certain FRP grating product lines for Fibergrate, which are used extensively in highly corrosive environments, such as offshore drilling platforms. Kemrock also markets its own line of FRP products, including sound-deadening barriers for highways and components for wind turbines.
The $20 million daylight fluorescent, phosphorescent and thermochromatic pigments business of The Dane Group was acquired by RPM's Day-Glo unit. Based in Manchester, England, this business broadens Day-Glo's market coverage in Europe and Asia.
Permaquik Corp., a $7 million supplier of high-performance waterproofing and green roof systems, joined the Tremco Global Sealants Division and is based in Mississauga, Ontario, Canada.
Carboline acquired St. Louis-based Nu-Chem, Inc. The $5 million line of intumescent fireproofing products protects exposed steel in various commercial, petrochemical and offshore markets. Carboline also purchased the $5 million marine and industrial coatings product line of Finnaren & Haley, based in Philadelphia, PA. This addition enhances Carboline's rapid penetration of the marine coatings market in the U.S.
RPM International Inc.
2628 Pearl Road P.O. Box 777
Medina, OH 44258 USA
Tel: (330) 273-5090; Fax: (330) 225-8743
* 2007 SALES REVENUE: $3.3 billion (2006 SALES: $3 billion)
* KEY PERSONNEL: Frank Sullivan, president and CEO; Ronald Rice executive VP and COO; P. Kelly Tompkins, executive VP and CAO; Ernest Thomas, senior VP and CFO; Key managers; John McLaughlin DAP; Thomas Reed Rust-Oleum; Charles Pauli RPM 11; Jeffrey Korach, Tremco; David Reif, StonCor.
* MAJOR PRODUCTS: Industrial and consumer coatings and related products sold through a number of subsidiaries operating around the world.
* 2007 ACQUISITIONS: The Dane Group; NuChem; Permaquik; The Watco Group; Tor Coatings.
Sales: $3 billion
Driving growth initiatives
Valspar's Coatings segment--includes packaging, general industrial, coil and wood operations--posted sales of $1.9 billion in 2007. The Paints segment--includes architectural and auto refinish operations--posted sales of $1.1 billion. Combining for $3 billion in sales in 2007 growth was driven primarily by strong performance of acquisitions and international operations. Difficult market conditions in the U.S. housing sector restricted the company's sales in that region.
As part of its growth strategy Valspar has dedicated itself to building the Valspar and Cabot premium brands and the Huarun brand in China. During the year the company transitioned Lowe's premium paint line to the Valspar brand and introduced Cabot stains at stores across the U.S. These brands, together with the performance of its Huarun brand in China, contributed to sales growth.
At the same time, Valspar's worldwide presence is expanding rapidly. The Huarun acquisition is driving its growth in China, where the fastest growing business is consumer paint. Valspar also has a strong position in wood coatings for the Chinese domestic and export markets. Valspar is also using Huarun's distribution and retail network to distribute its automotive refinish products in China.
In Latin America, Valspar's operations are focused on growth opportunities in Brazil and Mexico where it is the market leader in packaging and coil coatings. Valspar is also a significant market participant in coil in Northern Europe, with a strong platform for growth in the emerging markets of Russia, Central and Eastern Europe and the Baltic States.
During the past year, Valspar invested in three strategic businesses. First it acquired H.B. Fuller's powder coatings business, which provides the company entry into European markets and greater ability to meet the needs of global industrial coatings customers.
Next, Tekno in Brazil was acquired and reinforces the global presence of Valspar's packaging and coil businesses and further strengthens its ability to supply Latin America customers.
Lastly, Teknos Nova Coil in Finland was purchased and expands Valspar's coil coating capabilities in the fast-growing markets of Eastern Europe.
PREMIUM VALSPAR PAINT GETS NEW LOOK AT LOWE'S
During the year Lowe's Companies, Inc., in conjunction with Valspar, announced that its premium-quality paint label for interior and exterior applications, previously sold under the American Tradition, Signature Colors and Duramax labels, would be consolidated under the Valspar name. Paint departments in Lowe's stores across the country now organize Valspar offerings under the Valspar Signature Colors, Valspar Duramax and Valspar Ultra Premium brands.
The Valspar Corporation
1101 Third Street South
Minneapolis. MN 55415 USA
Tel: (612) 332-7271; Fax: (612) 375-7723
* 2007 SALES REVENUE: $3 billion (2006 SALES: $2.8 billion)
* KEY PERSONNEL: William Mansfield, chairman, president and CEO; Kenneth Arthur, group VP; Kathleen Bass, VP; J.R. Benites, VP; Anthony Blaine senior VP; Larry Brandenburger, VP; Al Dunlop, VP; Rolf Engh, executive VP; Steven Erdahl, executive VP; Brian Falline, VP; Andrew Hecker, VP; Gary Hendrickson, senior VP; Thomas Kelliher, VP; Steven Lindberg VP; Donald Nolan senior VP; Bernard Ouimette, VP; Steven Person, VP; Paul Reyalts executive VP and CFO; Lori Walker, VP.
* MAJOR PRODUCTS: Packaging, general industrial, coil, wood, architectural and auto refinish.
* 2007 ACQUISITIONS: H.B. Fuller's powder coatings business; Tekno in Brazil, Teknos Nova Coil TNC Oy of Finland.
Sales: $2.5 billion
Acquires key brands
As one of the most diverse companies in this report, 3M manufacturers adhesives and sealants, and also produces an array of coatings, grouts and concrete sealing products spread across seven business units, which posted sales of $24.5 billion in sales in 2007. Coatings World estimates 3M's sales of coatings, adhesives and sealants at approximately $2.5 billion.
E WOOD HOLDINGS ACQUISITION
3M also completed its acquisition of E Wood Holdings PLC, a North Yorkshire, UK-based manufacturer of protective coatings for the oil, gas, water, rail and automotive industries. This acquisition provides 3M enhanced access to key markets, including the rehabilitation of existing oil and gas pipelines.
E Wood sells high performance coatings for use in the oil, gas, water, rail and automotive industries under the Copon brand. Its Thortex and Thistlebond brands include a range of industrial maintenance products for the long-term protection of buildings, structures and machinery equipment operating in industrial and marine environments.
BONDO CORP. ACQUISITION
Lastly, 3M completed its acquisition of Bondo Corp., a manufacturer of auto body repair products for the automotive aftermarket and various other professional and consumer applications.
Bondo's brand complements 3M's line of auto body repair products for the automotive aftermarket. Bondo brand products are designed for both auto body repair professionals and enthusiasts. Products include body filler, fiberglass repair materials, under coatings and adhesives.
STRENGTHENS INDUSTRIAL ADHESIVES PORTFOLIO
During the year 3M acquired the Rite-Lok global industrial adhesives product line from Chemence Inc., a specialty chemical company that manufactures a range of consumer and industrial adhesives.
Complementary acquisitions such as this support 3M's growth strategy to expand its core adhesives business. The complete Rite-Lok brand product line includes anaerobic threadlockers, retaining compounds, gasket makers, thread sealants, structural adhesives and specialty cyanoacrylate instant adhesives for industrial use such as metal bonding, plastics and rubber. The product line also includes high-temperature, low-odor industrial adhesives and rubber-toughened flexible adhesives.
St. Paul, MN 55144-1000 USA
Tel: (651) 733-1110
* 2007 SALES REVENUE: $2.5 billion (2006 SALES: $2.2 billion)
* KEY PERSONNEL: George Buckley, chairman, CEO and president; Patrick Campbell, senior vice president and CFO; Joe Harlan executive VP, electro and communications; Michael Kelly, executive VP, display and graphics; Jean Lobey, executive VP, safety, security and projection services; Robert Macdonald marketing and sales; Moe Nozari, executive VP, consumer and office; Brad Sauer, executive VP, health care; Hak Cheol Shin, executive VP, industrial and transportation.
* MAJOR PRODUCTS: Coatings, adhesives, sealants and related products used in diverse applications and markets.
* 2007 ACQUISITIONS: UK-based E Wood Holdings; Bondo Corp.; Rite-Lok product line from Chemence.
10 Kansai Paint
Sales: $2.18 billion
Overseas business continues to grow
Kansai Paint's business is divided into automotive (46%), industrial (21%), decorative (19%), and marine and protective (4%) segments. In 2007 the company reported $2.18 billion in sales.
The company reported favorable growth in the sales of automotive coatings for new cars in Japan due to increases in production brought about by favorable exporting conditions. In the area of automotive refinished, although the market in Japan was sluggish, Kansai was able to develop new demand through the expanded sales of its environmentally-friendly products. The company also entered into an exclusive contract for selling PPG Japan paint products in Japan, which helped drive growth.
As for industrial coatings, Kansai reported an increase in sales of industrial machinery coatings due to growth in the production of large-scale construction vehicles.
Kansai reported a slowdown in the demand for decorative coatings but has expanded sales with eco-friendly products, through for example, the introduction of products with high added value, such as exterior coatings that provide dirt and stain resistance, eco-friendly interior coatings and water-based heat barrier coatings for roofs, balconies and outer walls.
In North America and Europe, Kansai has established a solid supply system for automotive coatings through PPG Kansai Automotive Finishes (PKAF), a joint venture company with PPG Industries.
As India continues to undergoe economic growth, demand continues to grow for products related to residential housing and automobiles. Favorable results in the areas of decorative coatings, automotive coatings and industrial coatings have resulting in a large increase in revenue, the company reported. The company has also changed the name of its subsidiary in India from Goodlass Nerolac Paints Ltd. to Kansai Nerolac Paints Ltd. The company also formed a merger with Polycoat Powder Ltd., a 100%-owned subsidiary of Kansai Paint working in the area of powder coatings.
In China, Kansai has constructed an automotive coatings plant in Guangzhou, and have created a system to respond to the expanding automobile market in China for the area ranging from Shenyang and Tianjin in the north to the Guangzhou region in the south.
The company reported favorable results in other Asian regions as well. In Thailand, its completed its second plant in the country. In Indonesia an increase in automobile manufacturing is expected to continue and in Malaysia, while auto manufacturing is down, Kansai Coatings Malaysia Sdn. Bhd., which was purchased last year, reported increased sales for both decorative and industrial coatings.
Kansai Paint Co., Ltd.
3-6, Fushimi-machi 4-chrome, Chuo-ku
Osaka 541-8523, Japan
Tel: (81) 6-6203-5531; Fax: (81) 6-6203-5018
* 2007 SALES REVENUE: $2.18 billion (2006 SALES: $1.8 billion)
* KEY PERSONNEL: Shoju Kobayashi, president; Toshinobu Otani, executive vice president; senior managing directors; Kazuhiro Fujita, Shinichi Hamamatsu, Koichi Imada, Yuzo Kawamori; managing directors; Osama Isozaki; Kouii Yamamoto; directors; Hiroshi Miura, Shigeru Nakamura, Mitsuhiro Fukuda, Hiroshi Ishino, Yasuo Yoshizawa, Masanobu Ota.
* MAJOR PRODUCTS: Automotive OEM and refinish coatings, industrial coatings, decorative paint, marine and protective coatings.
11 Nippon Paint
Sales: $2.15 billion
Expanding throughout Asia
Nippon Paint Group operates in two business segments--paints and coatings, and fine chemicals. The paints and coatings segment comprises four sectors--automotive coatings (30.9%), trade-use paints (17.3%), industrial coatings (18.8%), and other paints, which include auto refinish, marine coatings, household paints and road paints (27.7%). In 2007 these segments reported combined sales of $2.15 billion.
Speaking of automotive coatings, a major goal for Nippon has been to bolster its response capabilities and boost its production capacity of its bases in North America. The company has accomplished this with the establishment of NB Coatings, Inc. in the U.S. Nippon Paint can now chart its own distinct course in the North American auto market. At the same time, this move has enabled Nippon Paint to expand production capacity in the North American region.
In addition, as plastic materials are being increasingly used in a wider range of areas in automotive design and the need for coatings useable on both steel plating and plastic is in demand NB Coatings will help Nippon to strengthen and promote the development of coatings for plastic.
EXPANDING THROUGHOUT ASIA
Nippon has also been pursuing a variety of strategies to expand business in Asian markets. As many Japanese automakers are developing operations particularly in Thailand, Nippon Paint has enhanced local capacity to respond to the annual growth in automotive production in the country. During the year it purchased shares in Nippon Paint (Thailand) Co., Ltd. With two plants in Thailand, Nippon Paint (Thailand) produces and sells coating materials for automobiles, motorbikes and cycles, electrical equipment, machinery, construction, automotive repair, civil engineering and residential use.
In China, sales of VOC-free and eco-friendly powder coatings in China are growing at an annual rate of 20%. While Nippon Paint had previously established Langfang Nippon Paint Lidong Co., Ltd. in Langfang, China, the Group opted to add two more plants in the city of Tianjin and in Guangdong Province. Plans are also under way to secure production sites in Beijing and in Jiangsu Province. Nippon holds the largest share of the powder-based coatings market in Japan, and also has production and sales sites for these products in Thailand (Bang Pakong) and the U.S. (Cleveland).
Along with China, India is continuing to witness rapid economic growth. In this country, Nippon Paint has established the joint venture Nippon Paint (India) Pte., Ltd. Going forward, the company intends to set up two production sites, one in Delhi, the other in Chennai.
Elsewhere, Nippon Paint Group company Nippon Bee Chemical Co., Ltd. and Indian coatings manufacturer Berger Paints India Ltd. reached an agreement in July 2007 to establish a joint venture for the manufacture and sale of coatings for automotive plastics. With this move, it intends to develop business in India, mainly targeting the growing numbers of Japanese and Korean automakers operating in the Indian market.
Nippon Paint Co., Ltd.
2-1-2. Oyoda-kita Kita-ku
Osaka, 531-8511, Japan
Tel: (81) 6-6458-1111
* 2007 SALES REVENUE: $2.15 billion (2006 SALES: $1.7 billion)
* KEY PERSONNEL: Makoto Matsuura, representative director and president; Kenji Sakai, representative director and senior VP; Koichi Kimoto, representative director and senior VP.
* MAJOR PRODUCTS: Automotive OEM and refinish coatings, trade-use paints, industrial coatings, marine coatings, household paint and road paints.
Sales: $2.1 billion
Continues to expand production capacity
The strongest momentum for growth for Sika in 2007, whose adhesives, sealants and related construction chemical products posted sales of $2.1 billion, came from the East. The largest single investment in the year was the new Sikaflex production facility in Dudingen, Switzerland, which doubles production capacity for Sikaflex products in Europe.
In Romania construction began during the year of a production facility for admixtures and was scheduled to be completed in March 2008. Sika also purchased land near Moscow, taking its first steps towards construction of new capacity in the key growth region of Russia.
Despite a tough economic situation in the U.S., Sika managed to gain market share in a number of markets. In the customer group concrete producers, investments in new production facilities paid off leading to volume growth and the industrial flooring segment grew by nearly 20%. Despite sluggish auto sales Sika acquired new orders for SikaBaffie and SikaReinforcer.
In 2007 Sika established the region India, Middle East and Africa (IMEA) in order to be able to concentrate on the rapidly growing markets primarily in India, Saudi Arabia and the UAE. A regional headquarters was set up in Dubai. In spring of 2007 a new production facility began operation in Turkey.
To help meet the growing demand in China, Sika opened its sixth production plant in the country situated in Suzhou, outside of Shanghai. The plant produces polyurethane adehesives (Sikaflex) adapted to local needs, concrete admixtures (Sika ViscoCrete) and mortar.
In Canada, Sika took over MRT Construction Products in Edmonton, which is active in the area of concrete admixtures. Sika also acquired the business of German Tricosal GmbH & Co. KG in Illertissen, one of the leading companies in the area of watertight sealing of buildings and civil engineering works. Lastly, Sika acquired the polymer-based industrial flooring business of The Valspar Corporation in the U.S. and further bolsters Sika's growth strategy in North America.
SIKA IS A KEY PLAYER IN THE UEFA EURO 2008 CHAMPIONSHIPS
Sika contributed significantly to the new Letzigrund Stadium in Zurich, host of the European Football Championships UEFA EURO 2008. Only through continuous optimization of admixtures could large portions of excavated material be processed into high-quality concrete, thereby saving 6,000 trucking runs. And Sika also played a key role in other areas of the stadium: the company supplied corrosion protection for the steel lighting fixtures and for the 22,000 [m.sup.2] large steel roof construction, a complete sealing system for the vegetated roof, concrete joint seals and 4,500 [m.sup.2] of flooring.
Zugerstrasse 50, CH-6341
Tel: (41) 41-768-68-00; Fax: (41) 41-768-68-50
* 2007 SALES REVENUE: $2.1 billion (2006 SALES: $1.5 billion)
* KEY PERSONNEL: Ernst Bartschi, CEO; Markus Zenhausern, CFO; Alexander Bleibler, head of construction chemicals division; Jan Jenisch, head of industry division; Urs Mader; 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.
* 2007 ACQUISITIONS: MRT Construction Products in Canada; German-based Tricosal GmbH & Co.; Valspar's polymer-based industrial flooring business in the U.S.
13 Masco Sales: $1.53 billion
Living in a BEHR market
Masco Corp.'s decorative architectural products business unit includes its paints and stains business, which posted sales of $1.53 billion in 2007. The products are sold in the U.S. and Canada under the brand names BEHR, KILZ and Expressions to the DIY and professional markets through home centers, paint stores and other retailers. BEHR products were also recently introduced in China. The KILZ brand is sold in North America through home center retailers and discount retailers, and through hardware stores, paint stores and dealers.
Spearheaded by the high-profile BEHR brand, which is sold through The Home Depot, the segment's and the company's largest customer, the company claims that it is the largest supplier of architectural coatings to the North American DIY market. The paint departments at The Home Depot stores include the BEHR color center and computer kiosk with the Color Smart by BEHR computerized color-matching system that enables consumers to select and coordinate their paint color selection. The loss of The Home Depot as a customer would significantly impact the segment's business and that of the company as a whole.
During the year, BEHR introduced a new kitchen and bath enamel coating. With improved mildew and stain resistance, the new coating contains NanoGuard technology. BEHR also recently introduced BEHR Premium Plus Ultra, a patent pending exterior paint and primer in one that features both NanoGuard technology and improved protection against damage from sunlight, moisture, stains and dirt.
NORTH AMERICAN CONSUMERS PREFER BEHR
BEHR interior paint tops the list in providing customer satisfaction, according to the J.D. Power and Associates 2008 Interior Paint Satisfaction Study. The study, now in its second year, measures customer satisfaction with interior paint by examining six factors: appearance and application features; application performance; design guides and instructions; durability performance; price; and warranty/guarantee. BEHR ranks highest in customer satisfaction with interior paint, achieving a customer satisfaction index score of 779 on a 1,000-point scale, and performs particularly well in the price and design guides and instructions factors.
21001 Van Born Road
Taylor. M148180 USA
Tel: (313) 274-7400
* 2007 SALES REVENUE: $1.53 billion (2006 SALES: $1.3 billion)
* KEY PERSONNEL: Richard Manoogian. executive chairman; Timothy Wadhams. president and CEO.
* MAJOR PRODUCTS: Architectural and decorative paints, coatings and stains.
14 Jotun Sales: $1.5 billion
Major growth in Middle East
The Jotun Group, which includes Jotun Dekorativ, Jotun Paints, Jotun Coatings and Jotun Powder Coatings, posted sales of $1.5 billion in 2007, up from $1.2 billion the previous year.
Jotun Dekorative is responsible for decorative paints, stains and varnish for the professional and DIY markets in Scandinavia. Jotun Paints is responsible for decorative paints in all markets outside Scandinavia including marine and protective coatings for markets in the Middle East and South East Asia. Jotun Coatings is responsible for marine and protective coatings, and decorative paints in local markets in Europe and selected markets in Asia. Lastly, Jotun Powder Coatings is responsible for powder coatings.
Decorative paints represent 37% of Jotun's sales, while marine coatings accounts for 30%, protective coatings 21% and powder coatings 12%.
Jotun's growth can be attributed to economic expansion in Asia and the Middle East, which has stimulated large scale construction projects, a newbuilding boom in the shipping industry and increasing demand among consumers for decorative paint.
Jotun Paints had a strong year particularly in South East Asia in Malaysia, Indonesia and Vietnam, where relatively new decorative markets are boosting sales.
In the Middle East and Asia Jotun continues to increase its number of Multicolor centers, which feature its in-store tinting system. Investments also continue in several Jotun Inspiration Centers in the region. Factories are also under construction in Saudi Arabia and Libya, which will be completed in 2009.
Jotun Coatings' marine and protective coatings segments also continue to grow with contracts for more vessels than the previous year while the fast growing construction industry in the Middle East and Northeast Asia is increasing demand for Jotun's products. Increased growth has resulted in a need to invest in new production facilities and upgrading existing plants. New, modern plants in India, Turkey and Korea are under construction. The company is also considering establishing factory facilities in Russia and Brazil, increasing production capacity in China and a new plant for deliveries to Singapore.
JOTUN LAUNCHES "LADY" BRAND INTO THE MIDDLE EAST MARKET
In a move that reflects the increasing participation of women in their homes, Jotun Paints launched the "Lady" interior brand into the Middle East market in 2007. The launch of the interior brand followed two years of extensive research in the regional Dubai-based R&D laboratory in close collaboration with Jotun Norway to come up with an interior paint brand. The acrylic paints are available in a matt finish that offers benefits such as easy clean, neutral scent and color last. Cleaning stains and dirt off painted walls will not leave any spots or affect the quality of the paint finishing. Further, the solvent-free paints do not leave any trace of odor after six hours of application.
P.O. Box 2021, N-3248
Tel: (47) 33-45-70-00 Fax: (47) 33-45-72-42
* 2007 SALES REVENUE: $1.5 billion (2006 SALES: $1.2 billion)
* KEY PERSONNEL: Odd Gleditsch dy, Jotun's chairman of the board of directors; Morten Fon, president and CEO; Bjorn Naglestad, group executive vice president, Jotun Dekorativ; Erik Aaberg, group executive vice president, Jotun Paints; Esben Hersve, group vice president, Jotun Coatings; Knut Oivind Malmin, group executive vice president, Jotun Powder Coatings.
* MAJOR PRODUCTS: Decorative paints, marine and protective coatings, and powder coatings.
15 H.B. Fuller Sales: $1.4 billion
Sharper focus after realignment
H.B. Fuller Company, a global manufacturer and marketer of adhesives and other specialty chemical products, celebrated its 120th anniversary in 2007. The company is managed through four regional operating segments--North America, Europe, Latin America and Asia Pacific. This represents a change in 2007 from the previous structure of having two operating segments--Global Adhesives and Full-Valu/Specialty. The largest business component in each of the regional segments is adhesives. H.B. Fuller posted sales of $1.4 billion in 2007.
Some of the end-market applications its adhesive technolgoies serve include hot melt adhesives for the packaging, hygiene and textiles industries in the consumer goods area. For construction applications it supplies reactive hot melt adhesives for performance wood; cement, water-based and reactive hot melt adhesives for flooring; and reactive hot melt adhesives and sealants for windows.
Each of the four regions manufactures and supplies adhesives products in the assembly, converting, nonwoven and footwear categories. Product lines that were previously managed through the Full-Valu/Specialty segment--Specialty Construction, Insulating Glass, Packaging Solutions, Paints and Consumer--are now reported as business components under the regional segments: Specialty Construction--North America; Insulating Glass--North America and Europe; Packaging Solutions--North America; Paints--Latin America; and Consumer Asia Pacific.
In 2007 North America accounted for 48% of revenue, Europe 29%, Latin America 15% and Asia Pacific 8%. Moving forward the company says its focus is on the fast growing areas of Eastern Europe, the Middle East, Africa, China, Brazil, India and Mexico.
During 2007, the company continued with its strategy that began in 2005 to reposition its product lines to focus on more value-added solutions for its customers. Also in November 2007, the company divested its automotive business to its former joint venture partner, EMS Chemie.
Several of H.B. Fuller's initiatives improved profitability in 2007 include the continuation of the product line repositioning strategy, productivity improvements realized from various Lean Six Sigma projects, and overall cost reductions throughout the organization.
The Lean Six Sigma methodology continues to be a key initiative for the company. The methodology combines two powerful business improvement models---Lean, which focuses on the elimination of waste; and Six Sigma, which is a customer-driven methodology focused on reducing variation in business processes.
The biggest concerns going into 2008 relate to the global economy, especially the housing and construction-related markets in the U.S.
H.B. Fuller Company
1200 Willow Lake Boulevard, P.O. Box 64683
St. Paul, MN 55164-0683 USA
Tel: (651) 236-5104
* 2007 SALES REVENUE: $1.4 billion (2006 SALES: $1.4 billion)
* KEY PERSONNEL: Michele Volpi, president and CEO: Fabrizio Corrandini. vice president and chief strategy officer: Kevin Gilligan, vice president. Asia Pacific: Timothy Keenan, general counsel and corporate secretary; James McCreary, vice president, interim CFO and controller: Monica Moretti. vice president and chief marketing officer: Jan Muller. vice president, Europe; Jay Scripter, vice president, North America Ramon Tico. vice president. Latin America.
* MAJOR PRODUCTS:. Adhesives. sealants and coatings.
16 DAW Sales: $1.34 billion
Caparol brand is strong
The parent company of the Caparol Group is the Deutsche Amphibolin-Werke von Robert Murjahn Stiftung & Co KG (DAW). DAW was founded in 1895 and today carries out the central functions such as purchasing, production and finances. DAW is the leading German decorative paint manufacturer. The Caparol brand is the leading brand within the DAW Group. The marketing activities are subdivided into six strategic business units.
In the professional business unit high quality paints, enamels, glazes, chemical building products and materials for facades and insulation technology are marketed under the brands Caparol, Alligator and Alsecco for professional users.
The product range of the brand Alpina, which is active in the DIY business unit, is mainly composed of environmentally friendly, non-noxious, easily worked and high quality decorative paints, enamels and glazes and is aimed at the end-user.
The wholesale business unit comprises an extensive range of services for the professional paint wholesalers provided by the company Caparol Marketing Service (CMS).
In the foreign countries unit the Caparol Group maintains its own production locations, sales branches and representatives.
The industrial business unit is supported by the company Caparol Industrial Solutions whose products and services are exclusively orientated to the requirements of industrial customers.
Lastly, the Nerchau decorating and artist's paints is located in Saxony and produces high quality paints for educational, hobby and artistic requirements.
EXPANSION IN MIDDLE EAST
Late in 2007 Emaar Industries & Investments (EII), a subsidiary of Emaar Properties PJSC, acquired a majority stake in Caparol LLC, the Dubai arm of DAW.
As a strategic growth-facilitator, EII plans to steer the market expansion of Caparol, which plans to move into Saudi Arabia, North Africa, Egypt and South East Asia. Dubai will serve as the regional hub of the company, and the production capacity will almost be doubled with the building of a new production facility, which is the first major local investment of the new business.
Deutsche Amphibolin-Werke von Robert Murjahn
Stiftung & Co.
Rorssdorfer Strasse 50, 64372
Tel: (49) 06154/71-0: Fax: (49) 06154/71222
* 2007 SALES REVENUE: $1.34 billion (2006 SALES: $1.1 billion)
* KEY PERSONNEL: Klaus Murjahn, managing director. Caparol Group of companies. Other key personnel: Ralf Murjahn, Peter Merviglia, Reinhold Heinzle. Uwe Possin and Rainer Rencker.
* MAJOR PRODUCTS: Decorative coatings; fassade paints; renders/plasters: interior paints, colorants, primers, alkyd resin range of enamels; acrylic enamels.
17 Comex Sales: 1.3 billion
A strong portfolio throughout the Americas
Comex Group is the leading paint producer in Central and South America and the fourth largest architectural paint manufacturer in North America. Comex serves professional and DIY customers through more than 3,300 locations from Canada to Panama. Comex Group's wide range of products are manufactured and marketed through a group of regional companies. Comex Group's companies in the U.S. and Canada were formerly part of Professional Paint, Inc. (PPI). PPI was brought into the Comex Group in 2004.
PPI's network of regional paint formulators sell under different brands in the U.S. including Color Wheel in Florida, Frazee in California, Kwal Paint in Colorado, Parker Paint in the U.S. Pacific Northwest and General Paint in Canada. Comex's industrial line of paint, coatings and building products complement PPI's residential and commercial paint lines.
Comex Group also operates Comex Mexico and Comex Central America.
Comex Group's, sales are estimated to be $1.3 billion in 2007. Broken down, approximately 75% of sales came from the architectural segment, 15% from industrial, 5% from OEM (excluding automotive) and 5% from auto refinish.
The company operates four plants in Mexico City, seven in the U.S. and two in Canada.
CHIVAS USA SIGNS COMEX SPONSORSHIP DEAL
In 2007 a marriage of two powerful Mexican brands, Club Deportivo Chivas USA, Major League Soccer's Mexican-owned, Los Angeles-based club, and Comex Group, Mexico's leading paint company, teamed up in a multiyear, multimillion-dollar agreement by which Comex became Chivas USA's exclusive jersey-front sponsor. Under the terms of the multifaceted partnership, Chivas USA's jerseys were emblazoned with the Comex logo, while Comex's Frazee Paint brand became Chivas USA's first ever Presenting Sponsor with an important presence in all of Chivas USA's home games at The Home Depot Center and many of the club's community activities. The Frazee Paint brand will appear on the team's press backdrops, marketing and promotional materials. In addition, Frazee Paint became an Official Partner of the Bell Gardens Sports Center, the $10 million sports complex opened by the City of Bell Gardens, CA, and home to Chivas USA's Main Academy and Youth Development teams, with related venue signage, programming elements, marking and use of the facility.
The Comex Group
Blvd. Manuel Avila Camacho #138 PH 1&2-Col.
Lomas de Chapultepec, Mexico D.F., CP11000
Mexico City, Mexico
Tel: (005255) 1669-1600: Fax: (005255) 1669-1626
* 2007 SALES REVENUE: $1.3 billion (2006 SALES: $1.1 billion)
* KEY PERSONNEL: Marcus Achar CEO, Comex Group; Leon Cohen president, Comex Mexico; Marcus Achar Meyonas. vice president treasurer; Elias Achar. vice president operations: Kent Child. president. U.S. and Canada.
* MAJOR PRODUCTS: A wide range of coatings and related products including architectural, automotive refinish and industrial formulations.
18 Hempel Sales: $1.27 billion
All segments reported growth
Hempel improved its position in 2007, continuing to deliver sustained growth. For the second year, the Hempel Group increased revenues by 19%, reaching $1.27 billion in net sales. Volume increased by 18% and reached 289 million liters. Additionally, operating profit increased by 57%.
All this was achieved in spite of the continued high fluctuation of raw material prices and the effect of a weakening U.S. dollar. More than 50% of net sales in the Hempel Group are generated in U.S. dollar-based markets.
Hempel's protective segment exceeded the increase in the global protective market, delivering a healthy growth of more than 30%, which was similar to the growth in 2006. Most of this growth has been driven by increased demand in Asia and Europe.
In 2007, the marine segment increased net sales by eight percent. The largest growth was in Asia, while Hempel saw slower growth in the biggest markets: the U.S. and Europe. The significant effects of higher raw material prices, combined with the fact that many fixed contracts were mainly U.S. dollar-based, put margins in the marine segment under pressure.
The container segment continued its good performance with high activity levels and record volumes. The yacht segment saw double-digit growth in a relative steady market. The decorative segment continued to grow, mainly due to increased purchasing power in both developing and industrialized regions, especially China and the Middle East.
HEMPEL EXPANDS WITH LACOR ACQUISITION
Extending coverage of the German market Hempel acquired Lacor on January 1, 2007 and much of the year was dedicated to ensuring a smooth integration of Hempel's existing business in Germany with Lacor, Hempel reported.
Founded in 1989 and based in Merzig, Germany, Lacor is a leading national and international supplier of protective coatings and industrial paints. Lacor has been incorporated into Hempel Germany,
Lacor brings a competitive product range, a strong market position and access to interesting markets and customers in Germany and surrounding countries, according to Hempel. With the combined strengths of the two companies, Hempel foresees significant business expansion possibilities. The deal represents a positive step forward in Hempel's newly adopted "One Hempel--Everywhere" strategy, which aims to strengthen Hempel's market presence in selected areas and segments.
"We improved our position in 2007, improving efficiency and professionalism across the company," said group president and CEO Pierre-Yves Jullien. "We managed this despite the weakening U.S. dollar and raw material prices that remained high. However, we must still work harder to improve. We must obtain a better return for the value we create for our customers--and we must become truly efficient in every part of our organization."
Lundtoftevej 150 DK-2800
Kgs. Lyngby, Denmark
Tel: (45) 4593-3800: Fax: (45)4588-5518
* 2007 SALES REVENUE: $1.27 billion (2006 SALES: $1 billion)
* KEY PERSONNEL: Pierre Yves Jullien group president and CEO: Carsten Bennike. group executive vice president, supply chain: Kim Junge Andersen. group executive vice president and CFO: Kiaus Moiler, director group marketing; Martin Wiese, group VP R&D: Svend Johnsen key manager protective; Lars Hermansen, Key manager container: Jacqui Knott. key manager, yacht; Jannik Allentoft. key manager marine
* MAJOR PRODUCTS: Marine, protective, container, decorative and yacht coatings.
* 2007 ACQUISITIONS: German industrial company Lacor.
19 Asian Paints Sales: $1.2 billion
Continues to lead India's coatings industry
As India's leading paint company, Asian Paints reported $1.2 billion in revenue in 2007. Sales came largely from the company's architectural and decorative operations (90%) while its automotive and industrial coatings sales (10%) made up the remaining.
Early in 2007 Asian PPG Industries, a 50:50 joint venture of Asian Paints and PPG Industries, acquired the 2K auto refinish business of ICI India. After this deal, Asian PPG Industries became the leader in the automotive refinish segment in India. Automotive coatings account for nearly half of the industrial coatings market in India. The acquisition of ICI India's advanced 2K auto refinish business has significantly added to Asian PPG Industries' range of products for the automotive after market and has enhanced its presence in the automotive coatings segment.
COLOR NEXT 2008
In 2007 Asian Paints launched Color Next, its research based annual trend forecasting initiative for the home and interior decor space. A collection of five inspiring themes that give a designer look to the walls was presented to a gathering of the country's leading architects, interior designers and other key influencers in the design space. Each theme had key forecast colors which are predicted as lead colors that would be seen in home decor in 2008.
The five themes this year are Blush--the sensuous evocative feminine spirit; Techno--the snazzy colors of technology today; Synergy--the spirit of wellness and the eco-friendly drive; Refine--sophisticated, elegant and chic, all about understated opulence; and Revive--revisiting the glorious era of 1920, with its vintage and art decor influences.
ASIAN PAINTS SAMPLER REVOLUTION
Most consumers face the dilemma of selecting the best shade suitable for their wall. Also, they may not be sure as to how that particular shade of paint selected will finally look on the wall after the painting process. To ease the confusion and increase the consumer participation in the shade selection process, Asian Paints has launched 'Sampler Packs' that gives consumers the freedom of trying out a small sample of paint in their home, shop or office before committing to a particular color. A television commercial was also released to support the initiative which tells the consumer that now colors can not only be imagined but also sampled and tried before finalizing.
Asian Paints Ltd.
Asian Paints House
6A, Shantinagar. Santacruz (E)
Mumbai-400 055 India
Tel: (91) 22-3981-8000: Fax: (91) 22-3981-8888
* 2007 SALES REVENUE: $1.2 billion (2006 SALES: $900 million)
* KEY PERSONNEL: Ashwin Choski chairman: Ashwin Dani. vice chairman and managing director: Abhay Vakit. managing director; P.M. Murty, president decorative (India); Vivek Subramanian vice president, industrial (India); Jalaj Dani. president international operations.
* MAJOR PRODUCTS: Decorative and architectural coatings, industrial and automotive coatings,
20 Beckers Sales: $1.15 billion
Investing in North America through key acquisitions
Ab Wilh. Becker is wholly owned by Lindengruppen AB and is divided into four business areas. Becker Industrial Coatings is Europe's leading manufacturer of coil coatings and liquid special coatings for metal and plastic. Becker Powder Coatings is a major manufacturer of powder coatings in Europe and North America. Becker Acroma is Europe's leading manufacturer of paints, lacquers and stains for industrial finishing of wood products. Lastly, ColArt is the world's leading producer of artists' materials for professional and amateur artists. Becker Group posted sales of approximately $1.15 billion in 2007.
Markets outside Sweden account for more than 93% of the Becket Group's sales. The largest individual markets are France, North America and the UK, while Europe as a whole is responsible for 73% of group sales. However, the internationalization of the company is continuing through organic growth and acquisitions. The group's most rapid growth is in Eastern Europe and Asia. The non-European countries around the Mediterranean region, North Africa and the Middle East also represent growth markets for the group.
ACQUISITIONS IN NORTH AMERICA
Early in 2007 Becker announced that its North American subsidiary, Becker Industrial Coatings, acquired Specialty Coatings Company, a manufacturer of industrial paints and coatings.
Founded in 1953, Specialty is the leading independent supplier of liquid coil coatings in the U.S. and employs 80 people at two production facilities in Chicago and Southern California. Its products are widely used in applications that utilize coated steel and coated aluminium substrates. Prior to the acquisition, Specialty was owned by the Neems family.
"Specialty's strong position in the U.S. market for coil coating products will be of great strategic value to Beckers," said Jenny Linden Urnes, chairman and CEO of AB Wilh. Becker at the time of the acquisition. "As the leading producer of coil coating products in Europe, and with a strong presence in Asia, Beckers looks forward to building a platform to develop the coil coating business in the U.S."
Specialty has become a unit of Becker Industrial Coatings, whose other operations in North America include Becker Industrial Coatings, Inc., based in Toronto.
In a back-to-back deal announced early in 2008 Sherwin-Williams acquired Becker Powder Coatings in North America while Beckers acquired Sherwin-Williams Coil Coatings in North America.
The coil business has been integrated into Becker Specialty Corporation, a Chicago-based subsidiary of AB Wilh. Becker.
Headquartered in Columbus, OH, Becker Powder Coatings Inc. produces powder coatings applied to appliances, metal furniture, fixtures, equipment and electronic products manufactured throughout North America.
Becker Powder Coatings has more than 45 employees and sales of approximately $14 million.
"As a leader in coil coatings, this acquisition, following our acquisition of Specialty Coatings Company, is another important step in growing our North American business," said Urnes. "We are excited that this enhances the position of both Beckers and Sherwin-Williams through the sale and purchase transactions of our North American powder and Sherwin-Williams' coil coatings businesses respectively."
AB Wilh. Becket
Bruksgarden 263 01
Tel: (46) 42-33-85-00; Fax: (46) 42-33-85-15
* 2007 SALES REVENUE: $1.15 billion (2006 SALES: $1 billion)
* KEY PERSONNEL: Ulf G. Linden, chairman and CEO; Magnus Lindstam, managing director; Ralph Kabalo, key manager, Becker Industrial Coatings; Michael Henderson, key manager, CotArt; Ated Roberts, key manager, Becker Powder Coatings; and Kaj Brandt, key manager, Becker Acroma.
* MAJOR PRODUCTS: Industrial and coil coatings, wood finishes, powder coatings and artists materials.
* 2007 ACQUISITIONS: Specialty Coatings in the U.S.
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|Date:||Jul 1, 2008|
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