Professional Documents
Culture Documents
GREBE GROUP--60
H.B. FULLER--14
HELIOS--42
HEMPEL--23
HENKEL--4
ICI GROUP--2
INDUSTRIAS TITAN--55
INSL-X--61
JOTUN--22
KANSAI PAINT--13
KCC--35
KELLY-MOORE--33
LORD CORP.--38
M.A.B. PAINTS--56
MASCO--15
NATIONAL PAINTS--49
NIPPON PAINT--11
ORICA--30
PPG INDUSTRIES--3
RENNER--46
ROCK PAINT--43
ROHM AND HAAS--16
RPM--9
SHERWIN-WILLIAMS--5
SHINTO PAINT--50
SICO--44
SIGMAKALON--10
SIKA--17
3M--12
TIGERWERK--51
TIKKUIRILA--25
TOA PAINTS--58
TOHPE--54
VALSPAR--8
VOGEL PAINT--59
WATTYL--29
YASAR--41
YUNG CHI--53
1 AKZO NOBEL
Sales: $6.529 billion
HQ: ARNHEM, THE NETHERLANDS
PHONE: 31-26-3664433
FAX: 31-26-3663250
WEB SITE: WWW.AKZONNOBEL.COM
KEY PERSONNEL: G.J. Hans Wijers, chairman and CEO. General
managers: Rinus Rooseboom, car
refinishes; Jan Andersson and Leif
Abildgaard, decorative Coatings; Robert Torba, industrial
finishes; Bill
McPherson, marine and protective coatings; and Rob Molenaar, powder
coatings.
Major Products: Decorative, industrial, marine and protective
coatings and automotive refinish
paint.
New Products: Sikken's Alpha Tacto, a textile-effect paint
that reproduces the look and feel of
suede, leather or woven fabric.
Recent Acquisition: Swiss Lack.
* With sales of $6.529 billion in 2004, Akzo Nobel remains high
atop the global coatings
marketplace. The Netherlands-based
company's size and scope begs a question: when you're
already
the biggest, how do you get even bigger?
It should come as no surprise that Akzo Nobel is targeting China
for growth. And it appears the firm
is planning on milking this growing
market for all its worth. Akzo Nobel is determined to rise to the
top
spot in China, according to chairman and CEO Hans Wijers.
"Although we are the world's biggest coatings company, we
are not yet number one in China,"
Wijers said at a ceremony marking
the opening of a new facility in Suzhou (near Shanghai) in
June.
"This is one of our strategic priorities." He said Suzhou is
just the latest stage in the
"realization of our strategic vision
to become the country's number one coatings company."
The company contends it already has leadership positions in several
industrial market sectors in
China, but consolidation and further
expansion of its decorative activities there will play a
substantial
role in helping to establish Akzo as the country's major coatings
force.
The firm has already enjoyed explosive growth in China--its total
sales there have increased by
nearly 400% since 1998.
To date, Akzo Nobel has several facilities in the Asia Pacific
region. In addition to the recently
opened water-based wall paint
production, R&D and warehouse facility in Suzhou, a new
decorative
coatings factory was also started up in Vietnam.
Akzo's expansion efforts aren't relegated to Asia. The
company is also flexing its muscle in Europe.
In April 2005, it acquired Swiss Lack, a leading Swiss paintcompany with sales of 45 million [euro].
The deal makes Akzo the biggestcoatings company in Switzerland. The accord included Swiss
Lack'sproducts and its large commercial distribution network.
The Swiss Lack deal builds on Akzo's efforts to command
strength beyond the actual coating in the
can to those who use it. The
company has also acquired the second largest German wholesaler,
Timpe
& Mock, and took a 30% share in Peters, a German decorative paint
distributor. The latter
deal gave Akzo access to an additional 17
outlets in Nordrhein-Westphalia, and at the time, upped
its decorative
coatings outlets in Germany to 72.
"The key competence of Akzo Nobel Decorative Coatings is not
only the formulation, production and
marketing of paint, but also
distribution as local availability and service are critical to our
success,"
said Leif Abildgaard, general manager of Akzo
Nobel's Decorative Coatings Europe business unit.
"By joining
forces with or acquiring distributors, we are creating greater critical
mass and a solid
platform for profitable growth. It is our firm belief
that any distributors we acquire should be
treated as customers. In
other words, on an equal basis with the independent distributors we
work
with."
In 2004 the Decorative Coatings Europe unit saw strong improvement
in a flat market, as GDP in
many Western European countries remained
sluggish. Also, weather hampered sales in northern
Europe. Despite that,
the company said it continues to "place a strong focus on improving
the
quality of the business by taking many initiatives to strengthen our
branded businesses and phasing
out less attractive low margin businesses
and weak brands with no added value." As a result,
margins improved
in 2004 and offset higher costs of raw materials, packaging, energy
and
transportation during the second half of the year. During the year, the
unit completed a large
proportion of the comprehensive cost reduction
program started in 2003.
Deco Europe's retail sales results were mixed in 2004, with
various countries up and others down,
which the firm said was a
reflection of the discontinuation of business in less attractive
private
labels and low-priced white commodity paint. Akzo noted that sales in
added-value branded
products increased, aided by a comprehensive renewal
of branded product offerings and improved
positioning in most countries
during 2004.
The company was pleased with the performance of its specialties
business--also part of its European
decorative coatings operation--which
was driven by promising sales in new EU countries. The firm is
also in
the second phase of a rollout of a new tinting system which uses a
limited number of base
paints, increases color accuracy and meets future
VOC regulations for 2007.
Akzo's Decorative Coatings International unit posted good
volume growth and improved its
operating income, according to the
company. Business in Eastern Europe continues to
develop
"favorably, particularly in Russia and Ukraine but also in the
Baltic States where we see
steady growth," the company reported.
Restructuring programs were started in Hungary and
Poland, which led to
a significant decrease in headcount and costs. Combined with increased
sales,
these efforts resulted in distinctly higher profitability. In
Turkey, Akzo said fierce competition
depressed margins, but its strong
brands have allowed it to achieve a large increase in
marketshare. In
Greece, performance was particularly buoyant, driven by excellent
results that
lasted, not unexpectedly, until the Olympics. Akzo's
building adhesives operation also stepped up
activities in Eastern
Europe, and it also saw increases in volume in flat markets, such as
Germany.
Proving that even a large company needs to think small sometime,
Akzo said by continuing a niche
strategy for wood care products in North
America and Argentina, it recorded robust volume growth,
especially in
the latter market.
On the industrial side--which includes industrial finishes and
powder coatings-company officials said
"top line initiatives,
geographic expansion, bolt-on acquisitions and improved economic
conditions"
delivered substantial growth, helping to offset the
impact of depressed margins stemming from
higher raw materials costs
within its industrial finishes unit.
Akzo's industrial strategy centers on investment in China,
India, Brazil and Eastern Europe and
providing customers with products
that increase efficiency and help them differentiate their
products in
increasingly competitive marketplaces.
Akzo Nobel's powder coatings delivered a significant increase
in sales combined with tight cost
control and a selective investment
approach that led to solid financial performance with
considerably
improved operating income and return on investment. The powder business
expanded
with a pair of plants in China and a new Brazilian plant for
non-stick coatings. In addition, Akzo's
Cromadex distribution
network opened branches in France and Germany.
Powder R&D efforts are paying off too. In 2004, the firm
recorded its first commercial sales of UVcuring powder coatings for PVC
flooring. In addition, it launched the Elements special effects range
in
Europe for use by general trade coaters.
Akzo described 2004 as a "challenging year" for its car
refinish unit, with the operational side
"bearing up well in
adverse market conditions, but with profitability suffering" from
high costs.
Company officials said volume steadily declined in mature
markets and showed slow but steady
growth in developing markets.
Operating income was down, but the firm said it has stepped
up
containment efforts. A restructuring program announced in July started
to yield results in 2004,
but Akzo said it doesn't expect to
realize the effect until 2006.
Akzo has enlisted new strategies to better fit the refinish market,
such as developing a worldwide
retail brand approach that positions
Sikkens as a brand for profitability and Lesonal as the brand
for
performance. (Akzo did hold onto a select number of regional brands at
the retail level.)
Recognizing the need to deliver increased services to
this customer base, Akzo unveiled Sikkens eBenchmarking, a web-based
business analysis tool that provides analysis of a
bodyshop's
performance compared to a variety of core groups and advice on how to
improve
profitability.
Akzo's marine and protective coatings unit delivers solutions
ranging from marine and pleasure
boats to heavy industry and aerospace.
The company said it saw new record levels of operating
income in 2004,
despite a weaker U.S. dollar and significant raw material cost increases
during the
year.
International Marine Coatings benefited from a high level of
newbuilding, particularly in Korea and
China. Dry-docking activity
remained high as shipyards are fully committed until 2007, according
to
the company. A major highlight for the year was the start of full
business operations of
International Paint Japan. Furthermore,
International Protective Coatings maintained good levels of
profitable
growth led by organic expansion in the U.S., China and Central/Eastern
Europe. In
aerospace, Akzo Nobel said it achieved growth and improved
profitability in both Europe and the
U.S., despite the airline
industry's troubles.
Akzo Nobel continues to evaluate its coatings business, removing
operations that don't align well
with its strategy. Last August it
divested part of its liquid coatings activities in the agricultural
and
construction equipment (ACE) segment to BASF, and in a separate deal it
acquired BASF
Coatings' wood construction (joinery) business. The
divestment involved ACE activities of Akzo
Nobel's Car Refinishes
business in Germany, Austria, France, Italy, Switzerland and Spain, with
the
manufacturing of these coatings transferred from Akzo Nobel's
sites in Zona Franca (Spain),
Stuttgart (Germany) and Montataire
(France) to BASF's coatings sites. Products from BASF's
wood
construction acquisition were moved to Akzo Nobel's Decorative
Coatings site in Cologne.
The company also shed its coatings resins business and spun-off
Nobilas, which provides accident
management services to insurers,
corporate fleet owners and car leasing and rental companies.
2 ICI GROUP
SALES: $5.378 billion
IMPERIAL CHEMICAL INDUSTRIES PLC
HQ: SLOUGH, UK (ICI PAINTS) BRIDGEWATER, NJ (NATIONAL STARCH)
PHONE: 44-20-7009-5000 (ICI PAINTS)
908-685-5000 (NATIONAL STARCH)
E-MAIL: ICI@ICI.COM
WEB SITE:: WWW.ICI.COM * WWW.NATIONALSTARCH.COM
KEY PERSONNEL:: David Hamill, director of ICI and chief executive
of ICI Paints, and William
Powell, director of ICI and chief executive
of National Starch.
Major Products: Paint and coatings (ICI Paints) and adhesives
(National Starch).
New Products: Cuprinol Sprayable Fence Treatment, Cuprinol Hardwood
Garden Furniture
Protector in clear matte, Cuprinol Hardwood Garden
Furniture Oil in mahogany and light oak,
Dulux Roll-On Diamond Tough
Floor Varnish, Dulux Kitchen & Bathroom varnish, Dulux natural
matt
woodwash, Cuprinol Rollable Decking Treatment, Polycell Sealant
Plus-Beyond Silicone,
Polycell A Touch of Texture, Devoe Regency
interior and exterior paint, This Old House paint, Once
Ready to Roll
and Sublime Touch.
* Headquartered in the UK, ICI Paints manufactures coatings and
related products in 25 countries.
National Starch, based in the U.S., is
a maker of adhesives (among other products) boasting
manufacturing and
customer service centers in 37 countries. Together, these units
represent a $5.3
billion coating and adhesive operation.
Selling mainly decorative paint (91% of sales in 2004), ICI Paints
also formulates packaging
coatings for food and beverage cans. ICI
Paints maintains its own sales distribution network in more
than 30
countries and sells elsewhere through agents and distributors. On a
geographic basis, ICI
Paints' sales stem mainly from North America
(40%) and Europe (37%). Asia-Pacific represented
14% of sales in 2004,
with Latin America and other markets accounting for the remainder.
For many companies, there is a need to think outside the box for
growth. For ICI Paints, developing
innovative products means thinking,
literally, about the box--or more specifically, the can and
the
application method. Many of its recent successes have been forged
through the development of
unique packaging that makes the task of
painting or general repair easier for consumers. Examples
include new
Dulux Roll-On Diamond Tough floor varnish, Cuprinol Rollable Decking or
Sprayable
Fence treatments and Polycell's A Touch of Texture, a
textured base coat product which is sold with
the application tool in
the packaging.
ICI's R&D department is also focused on delivering unique
products such as its new flame
retardant. Pyroshield from Dulux Trade,
which is water-based, low in odor and offers no
"splatter"
application, is sold in single packs, which ICI says helps to minimize
wasted product. In
addition, ICI Paints says it continues to
"exploit" what it calls innovations brought to market in
2003,
such as the international rollout of Magic White (including its
extension into trim products),
Easy Can Polycell basecoat and Cuprinol
Rollable.
With manufacturing centers in the U.S., Canada, UK, Germany, The
Netherlands, Poland, Japan,
Thailand, Korea, China and Brazil and
additional facilities located in 21 other countries, National
Starch is
a leader in industrial adhesives, selling natural and synthetic
polymers, waterborne, hot
melts and 100% solids products. In fact, if
one needs an adhesive, odds are National Starch makes
one that will
work. Application areas include packaging, bottles, cans, bookbinding,
remoistenable
stamps, disposable diapers, personal sanitary products,
hospital supplies, self-adhesive tapes, labels
and decals, transdermal
drug delivery patches, athletic shoes, woodworking and construction.
National Adhesives, a unit of National Starch, recently announced
plans to boost its supply of
transdermal-grade adhesives with a new
manufacturing facility in Salisbury, NC. The new facility,
which will be
built alongside an existing manufacturing unit, is expected to start
production in
2006. The multi-million-dollar investment will accelerate
National Starch's efforts to supply
pressure sensitive solution
acrylic and solution rubber adhesives used in transdermal drug
delivery
systems.
Like its comrades in the paint business, National Starch has been
hit hard by rising raw material
prices. Along those lines, National
Adhesives announced price increase on all of its adhesive
product lines
across Europe, effective May 1.
"Chemical raw material prices are by nature cyclical. We have
seen significant peaks in the prices
over the last decade, however these
cycles have become relatively short lived. The adhesive
industry in
general has been able to smooth out the impact on customers up until
last year,' said
Alan Bate, executive vice president for National
Adhesives. "What has happened over the last 14
months has been
fundamentally different. The levels of increases are beyond anything we
have
seen in 25 years, and the long-term tightness in supply means the
higher prices in basic raw
materials are here to stay."
Bate said the company's first action was to "push back on
suppliers as well as working with key
customers on reformulating and
product substitutions as we appreciate the difficulties our
customers
have" in passing along the increases. "However, with demand
high and availability short,
suppliers have been extremely robust.
Alternative demand for key raw material feedstock is high
and we are
seeing evidence of suppliers diverting raw materials away from the
adhesives industry.
This has resulted in order control on some key
materials. This represents not just a crisis, but also a
fundamental
change in our economics, which cannot be sustained without us raising
prices," he
added.
3 PPG INDUSTRIES
SALES: $53.275 billion
HQ: PITTSBURGH, PA USA
PHONE: 412-434-3131 WEB SITE: WWW.PPG.COM
KEY PERSONNEL: Charles E. Bunch, chairman and CEO (effective July
1); J. Rich Alexander, senior
vice president and key manager,
industrial; William A. Wulfsohn, senior vice president and key
manager,
Europe; Charles Kahle, director, coatings R&D; Dick Beuke, key
manager, architectural;
Dennis Kovalsky, key manger, automotive; Garry
Goudy, key manager automotive refinish; and
Marc Telman, key manager,
packaging.
Major Products: Architectural/decorative paint, coatings and
stains, automotive OEM and refinish
coatings, industrial coatings and
packaging coatings.
New Products: Desoprime CA 7049 chromate-free, high-solids epoxy
primer (aerospace), OneChoice
Plastic Prep System (refinish), Nexa
Autocolor P440line 2K special effect mixing colors (auto
refinish); and
Manor Hall Timeless, a super premium exterior paint.
* In 2004, PPG's coating sales rose nine percent ($440
million) to $5.275 billion. The company said
sales rose six percent from
improved volume across its business and four percent due to the
positive
effects of foreign currency translation, primarily from its European
operations. Sales
declined due to lower selling prices, principally in
its automotive business, according to the
company. Operating income rose
$58 million in 2004, stemming from higher sales volume and the
favorable
effects of currency translation as well as improved manufacturing
efficiencies.
"Our performance in 2004 was nothing less than
impressive," said then-chairman and CEO
Raymond W. LeBoeuf in the
company's 2004 annual report. This month marks the retirement
of
LeBoeuf, with Charles E. Bunch taking the helm as chairman and CEO of
PPG.
LeBoeuf spent 25 years with the company and eight years as its
chairman and CEO. During his
tenure, PPG's management team has
reshaped the company's business portfolio through
acquisitions and
organic growth, generating record sales in 2004 and a four-year record
in cash
from operations. He joined PPG as treasurer in 1980 after
holding various financial management
posts at Ford Motor Company.
Bunch, who joined PPG in 1979 as assistant to the corporate
controller, served in a variety of
assignments in the U.S. and Europe
before being named corporate director of purchasing and
distribution in
1988. He was elected president, COO and a PPG board member in July 2002,
and
took on the role of general manager of architectural coatings in
1992 and later vice president of
that unit. He was named executive vice
president, coatings, in early 2000.
Bunch will now guide PPG as its coatings unit continues to expand
internationally. Recently, PPG
inked a new joint venture with Helios
(ranked number 42 in our report) related to chemical
management for
AutoVaz's new paint shop in Russia. Mark Charles is serving as
managing director
of PPG-Helios (see Fresh Paint, p. 10 in this issue
for more on the JV).
In late 2004, PPG Industries and Kansai Paint formed an alliance to
sell automotive coatings to
global original equipment manufacturers.
Officials from PPG and Kansai said the alliance will assist
both
companies in responding quickly and effectively to the demands and
requirements of the
global automotive OEM industry. North American and
European joint ventures are 60% owned by
PPG and 40% owned by Kansai.
Troy, MI will be the head office in North America and Birmingham,
UK
serves as the European head office. The joint venture in Japan, which is
equally shared by PPG
and Kansai, is located in Aichi Prefecture.
Richard J. Rurak has been appointed president of PKAFNorth America and
Europe while Mitsuhiro Fukuda and Yutaka Mizutani are vice presidents
of
PKAF North America and PKAF-Europe, respectively. Masahisa Izuhara has
been named
president of PKAF-Japan with Masao Watanabe serving as vice
president.
PPG is also committed to growing its operations closer to home,
including signing alliances with
U.S. firms that will expand its reach
in areas such as maintenance chemicals. Along those lines,
PPG
Aerospace-PRC-DeSoto recently signed a seven-year global distribution
agreement with
Indianapolis-based Eldorado Chemical Company, Inc. to be
a distributor of its aerospace
maintenance chemicals. As part of the
agreement PPG will be the exclusive distributor to certain
key Eldorado
aerospace customers in North America.
PPG Industrial Finishes Color Services team reached a milestone
last year: the creation of its
100,000th custom color match (UC100000
Polycron III Harp Beige), which was made for EPCO
Extrusion Painting
Co., in Boardman, OH.
PPG has been supplying custom color matches and panels to the coil
and aluminum extrusion
industry for more than 30 years. Over that time,
the company has made tremendous leaps in its
capabilities, thanks in
part to more automated systems, such as its Kaleidoscope dispensecell
technology. Kaleidoscope Workcell makes coatings in five to 1,000 gallon
batches--the most
commonly ordered batch quantities for custom
coaters--using computer-controlled dispensing and
formulating
capabilities that minimize batch-to-batch variations while producing the
paint faster,
more efficiently and more economically.
PPG Automotive Refinish is also focused on delivering greater
efficiency through innovative
products. The unit has recently added
OneChoice Plastic Prep System, a patent pending three-step
process to
create superior adhesion for refinish of plastic substrates.
"Utilizing NanoAdhesion
technology, this innovative Plastic Prep
System is significantly faster than conventional methods
and can
dramatically reduce paint operation cycle time," said Mark Rapson,
product manager for
PPG Automotive Refinish. "The NanoAdhesion
technology incorporated into the system components
assures you of
superior adhesion."
The system entails three products: SU4901 Clean and Scuff Sponge,
which is pre-saturated with a
cleaning solution specifically designed to
lightly abrade the plastic part and remove contamination;
SU4902 Plastic
Adhesion Wipe, a pre-saturated product formulated with PPG
NanoAdhesion
technology designed to apply advanced film-forming adhesive and
anti-static
material to unprimed plastic; and either SUA4903 (aerosol)
Advanced Plastic Bond or SU4903, a
ready-to-spray product. The OneChoice
Plastic Prep System can be used under PPG topcoats and
undercoats.
PPG's architectural unit includes a roster of very high
profile decorative paint, coatings and stains
sold in paint shops and
home improvement warehouses. Tom Dougherty, marketing
manager,
Pittsburgh Paints, said that "2004 was another strong year for our
architectural finishes
business unit across all three channels in which
we participate--national accounts, independent
dealers and store
business. All three legs had solid years." Dougherty told Coatings
World he is
expecting double-digit growth in 2005.
Some of that growth could stem from new products that offer
consumers superior performance and
longevity, such as new Manor Hall
Timeless. This super premium exterior paint from Pittsburgh
Paints
features a 100% cross-linked acrylic resin found in two-component
high-performance
coatings. The formulation, which has a lifetime
warranty, also boasts exceptional adhesion, four-way
mildew and algae
resistance and low temperature application.
PPG'S CHOPPER WITH A CAUSE
PPG Automotive Refinish has started a yearlong fund-raising effort
for The Leukemia and
Lymphoma Society. Kicked off in March with an
auction that took place during PPG's Platinum
Distributor
Conference, distributors bid on racing paraphernalia, posters, body shop
equipment and
supplies and more to raise more than $32,000.
Unveiled at the auction was the "Charity Chopper," the
brainchild of PPG Automotive Refinish, Ray
Evernham of Evernham
Motorsports, along with his foundation Racing for a Reason, and
Dave
Perewitz of Perewitz Cycle Fabrications. Featuring a spectacular Liquid
Crystal paint finish
from the PPG Vibrance Collection, the
chopper's design was headed by Dave Perewitz. Perewitz
Cycle
Fabrications custom built the one-of-a-kind V-twin bike, featuring a
classic flame design by
Perewitz himself.
The Charity Chopper is touring the U.S. with the PPG show truck at
custom car and bike shows and
select NASCAR events. In October it will
be auctioned on eBay, with all proceeds benefiting The
Leukemia and
Lymphoma Society.
4 HENKEL
SALES: $5.27 billion
HQ: DUSSELDORF, GERMANY
PHONE: 49-211-797-0
at
Henkel Technologies. "The Chinese universities involved will be
conducting applied research in a
few selected areas which Henkel is
interested in." Additional R&D projects and similar
cooperation
with Chinese universities will follow in the future.
5 SHERWIN-WILLIAMS
SALES: $4.91 billion *
HQ: CLEVELAND, OH USA
PHONE: 216-566-2000
WEB SITE: WWW.SHERWlN.COM
KEY PERSONNEL: Christopher M. Connor, Chairman and CEO; Sean R
Hennessy, senior vice
president, finance and CFO; and Conway G. Ivy
senior vice president, corporate planning and
development. John G.
Morikis, president; paint store Segment; Thomas w. seitz, president
and
general manager; consumer segment; Blair P. LaCour president and general
manager,
automotive finishes segment; and Alexander Zalesky, president
and general manager, international
coatings.
Key Products: Architectural and decorative paint, stains and
varnishes, wood finishing products,
caulks, adhesives, automotive
finishes and industrial and marine coatings.
New Products: Duration Home interior latex; Builders Solution
interior coating system; Dutch Boy
Ready to Roll, Krylon H20, Krylon
Paper Finishes, NP75 Squeegee Prime ISO-Free primer surfacer,
CC 900
Series clearcoats with Ure-Flex Technology and E2W840 Element Shield
OE/fleet primerwhite.
Recent Acquisitions: Duron, Inc. and Paint Sundry Brands.
* Sherwin-William's consolidated net sales in 2004 topped $6.1
billion dollars, a rise of 16.7% over
2003. (The company's ranking
excludes estimated sales from nonpaint items and other
administrative
items reported by the company.) Sherwin-Williams' consolidated net
income rose to
$393.3 million, representing an increase of 18.4% percent
over the previous year.
During 2004, Sherwin-Williams generated nearly $545 million in net
operating cash, which enabled
it to invest $106.8 million in capital
expenditures, repurchase more than six-and-a-half million
shares of
stock and completed what it called "three strategically important
acquisitions."
The highlight of its buying spree was Duron, Inc., a strong
regional maker of architectural and
decorative coatings, which last year
held the 29th spot in our Top Companies Report. The Duron
deal, which
was completed in September 2004, added approximately 3.5% to
Sherwin-William's
paint stores segment's full year net sales
and was slightly accretive to earnings for the year, the
company said.
Net sales for Sherwin-Williams' paint stores segment rose
14.6% to $3.98 billion from $3.47 billion
in 2003, with comparable store
sales improving by 10.1%. Operating profit from the segment rose
19% to
$480.2 million. The positive effects of strong sales volume and
aggressive cost control
throughout the year was partially offset,
however, by rising raw material costs, according to the
company.
With its primary customer being professional painters--a market
that is forecasted to grow in the
U.S.--assessing its retail outlet
presence is essential. In 2004, 295 new stores were added
through
organic expansion and acquisition, giving the company 2,983 stores in
North America
compared to the 2,688 it had the year before. Organically,
the firm opened 71 new stores and
shuttered five, resulting in a net
increase of 66 stores for the year. Duron added 229 stores.
Net sales of S-W's international coatings segment rose 11.7%
to $318.6 million in 2004, benefiting
from favorable currency exchange
and sales in local currency that continued to build during each
quarter
of 2004. The segment's operating profit was $18 million in 2004
compared to $8.4 million
in 2003. Sherwin-Williams attributed the gain
to higher sales volumes, operating efficiencies
resulting from
manufacturing volume increases, tight expense control and favorable
currency
exchange fluctuations.
The company has recognized that it is critical to tailor efforts
for its international customers. For
example, in Argentina, it launched
a concept store, based on the traditional Sherwin-Williams paint
store
model, but adapted it to better fit the local market. In the UK,
Sherwin-Williams' Ronseal
wood care brand remains a market leader,
and the unit successfully launched a comprehensive
range of specialist
paint products for use in a variety of applications.
Sherwin's automotive finishes segment's net sales rose
12.6% for the year to $514.3 million versus
comparable periods last
year. Increased sales in the fourth quarter stemmed mainly from
improving
domestic sales and the April 2004 acquisition of a majority
interest in an automotive coatings
company in China. The net sales gain
for the year was primarily due to new product introductions,
improving
international sales and the China acquisition, the company said.
Operating profit was up
10.8% to $58.1 million.
In 2004, Sherwin-Williams introduced several innovative products
designed to help save time.
material and labor--key issues with its
automotive costumers. Among those new products were
NP75 Squeegee Prime,
a direct-to-metal ISO-free primer surfaces that is free of lead
and
chromates, and CC900 clearcoats with Ure-Flex Technology, which
eliminate the need for
additional flex additives and mixing steps. The
firm has also launched customized solutions, such as
Ultra 7000
Motorcoach basecoat, the first MACT compliant paint for the RV industry,
formulated to
withstand the rigors of severe weather and road
conditions.
Sherwin-Williams is also growing its international automotive
presence, including the formation of
Sherwin-Williams Kinlita Co. Ltd.
via a majority interest in a local Chinese auto paint company, and
the
opening of a wholly-owned subsidiary, Sherwin-Williams Pinturas de
Venezuela. In addition, the
company expanded sales and distribution
platforms in Asia and in Bolivia, Paraguay and Uruguay
through a
newly-created export sales office in Brazil. It also now supplying
automotive interior and
exterior plastic coatings to the Brazilian OEM
marketplace.
Sherwin-William's consumer segment recorded a nine percent
gain in net sales, reaching $1.3
billion for the year, with acquisitions
increasing net sales in the fourth quarter by 12.1%. This
increase was
partially offset, however, by sales declines resulting from the
elimination of a paint
program with a customer, a negative impact of
3.9% on net sales due to the impairment of a
customer sales incentive
program and inventory adjustments at some of its retail customers.
For
the full year, acquisitions increased net sales 7.2% and new product
programs contributed
further to the increase, the company said.
Operating profit dropped 5.7% to $187.7 million.
On the management side of things, there has been a recent change at
Sherwin-Williams--the recent
departure of president and COO Joseph
Scamince (see p. 81 in this issue for details).
DuPont has big plans for China too. As a company, it says it will
be doubling its investment in the
country by 2010.
7 BASF COATINGS
SALES: $2.515 billion *
HQ: MUNSTER, GERMANY
PHONE: 02501-14-0
WEB SITE: WWW.BASF-COATINGS.COM
KEY PERSONNEL: Jean-Pierre Monteny, CEO, BASF Coatings AG;
Klaus-Peter Lobbe, member of
the board of executive directors
responsible for coatings globally; Rainer Blair, group VP,
coatings,
North America; Jacques Delmoitiez, group VP, automotive
refinish/commercial transport
coatings; Wolfgang Micklitz, director OEM
coatings for Asia-Pacific; Peter Steiert, group VPindustrial coatings
solutions/global strategy and regional business unit; and Rui Goerck,
VP,
coatings South America and head of Decorative Paint Solutions.
Major Products: Automotive OEM and refinish coatings, industrial
coatings and decorative paint.
New Products: A waterborne basecoat in China.
Recent Acquisition: Remaining shares of BASF Akzo Nobel (BAN).
* BASF's coatings sales rose slightly in 2004, and the firm
saw "considerably increased income from
operations compared with
2003, despite significantly higher raw materials prices and
negative
currency effects."
According to the company's most recent statistics, automotive
OEM remains its largest sector,
accounting for 50% of sales in 2004.
Refinish and commercial transport coatings accounted for
25%, industrial
coatings represented 15%, and decorative paints accounted for 10%.
Company officials said all product lines contributed to higher
earnings. In particular, industrial
coatings improved significantly as
restructuring measures within this unit have been very
successful,
according to the company.
Part of the restructuring included optimization of its product
portfolio, including exchanging its
window and exterior door coatings
business for the agricultural and construction machinery paints
business
of Akzo Nobel. More recently, the company inked another accord with Akzo
Nobel in
which it gained complete control of BASF Akzo Nobel (BAN), a
former equal-share joint venture
between the two in the Australian
automotive market.
Following the deal, BASF will combine the business with its BASF
Coatings Pty Ltd. in Sydney,
forming BASF Coatings Australia Pty Ltd. In
2004, these two businesses had posted combined sales
of approximately 25
million [euro].
"This transaction gives us an excellent foundation to further
develop our OEM business in Australia.
BASF is known globally as market
leader in high-quality coatings technology for the
automotive
industry," said Wolfgang Micklitz, director, OEM coatings for
Asia-Pacific. "As a strong
member of BASF's business networks,
both globally and in the Asia-Pacific region, BASF Coatings
Australia
will fully capitalize on these strengths as a preferred partner to help
our customers be
more successful." Pascal Goerdes, managing
director of the new company, added, "We are taking a
big step
forward in establishing one legal entity that combines BASF's
coatings expertise and
efficiently represents all of BASF's
coatings activities in Australia."
BASF Coatings is also expanding its market presence in Africa with
automotive repair products in
the Glasurit and Salcomix refinish lines
being offered in Ghana. Why there? In Ghana, cars are 10
years old on
average, which means that the market shows a high demand for a broad
range of
refinish products. In the capital city of Accra as well as
Kumasi, two dealers with BASF Coatings'
partner Afrigerm Ltd. have
begun marketing the automotive refinish products in new subsidiaries.
8 VALSPAR
SALES: $2.44 billion
HQ: MINNEAPOLIS, MN USA
PHONE: 612-332-7371
WEB SITE: WWW.VALSPAR.COM
KEY PERSONNEL: William L. Mansfield, president and CEO; Steven L.
Erdahl, executive VPcoatings; Paul C. Reyelts, executive VP and CFO;
Rolf Engh, executive VP, general counsel and
secretary; Gary E.
Hendrickson, senior VP- architectural, global wood coatings and federal;
Donald
A. Nolan, senior VP, global packaging and automotive; Kate Bass,
vice president-information
technology and furniture solutions; Steve
Person, vice president, sales and marketing, architectural
group.
Major Products: Decorative, protective and industrial paint and
coatings, packaging coatings and
automotive and fleet refinish products.
New Products: Quikrete professional concrete coatings. Recent
Acquisitions: Samuel Cabot Inc.
* Valspar's 2004 sales rose 8.6% to $2.44 billion while its
net income jumped an impressive 26.9%
to $142.8 million. The company
said core sales growth was 5.8%, after excluding the favorable
impact of
foreign currency of 2.4% and acquisitions of 1.9%
Net sales of Valspar's paint segment rose 11.3% to $802
million. Excluding the favorable impact of
the De Beer acquisition (made
in early 2004) and foreign currency, net sales growth in the
paints
segment was 5.5%. Company officials said revenue growth came primarily
from strong sales
to home improvement retailers, new color merchandising
systems and expanded paint displays. The
company's coatings segment
reported an increase of 6.7% in net sales to $1.412 billion.
Excluding
the favorable impact of foreign currency and the acquisition of selected
assets of
Associated Chemists, Inc., net sales growth in the coatings
segment was three percent.
Valspar made a rather high-profile acquisition this spring--and it
was also one that marked the end
of another family-owned operation in
the U.S. The company agreed to purchase Samuel Cabot Inc.,
a
manufacturer of premium exterior and interior stains and finishes, which
had been privately
owned and family-run for 128 years. Cabot had sales
of approximately $58 million in 2004.
The Cabot deal followed Valspar's August 2004 purchase of
selected assets of the forest products
business of Associated Chemists,
Inc. (including a manufacturing facility in Orangeburg, SC)
for
approximately $80 million.
Forging into new markets, the company embarked on a strategic
alliance with The Quikrete
Companies, the leading player in the U.S.
concrete market. Through the accord, Valspar will
manufacture and
jointly market premium concrete coatings under the Quikrete banner. The
goal is
to have Quikrete Professional Concrete Coatings develop a strong
position in the home
improvement industry and serve as a model for other
future specialty brand alliances, according to
the company.
There have been some personnel moves at Valspar in the last few
months. In February, William L.
Mansfield, who had been COO, was named
president and CEO, with Richard M. Rompala continuing
on as chairman of
the board. In addition, Paul Reyelts was promoted to executive vice
president
and CFO.
"Our business is fundamentally strong and I believe we have
the people, strategies and resources to
thrive in the global
marketplace," said Mansfield when he took over the CEO post.
"I remain
committed to Valspar's growth objectives, our focus
on being the preferred supplier to our
customers worldwide and to
achieving outstanding returns for our shareholders."
How is the company faring so far in 2005? Net income for the first
six months of fiscal 2005 was
$50.9 million compared with $57.4 million
for the same period a year ago, while sales for the first
half rose
10.8% to $1.26 billion. "As expected, rising raw material costs
have continued to constrain
our financial results," Mansfield said.
"We have responded with across the board increases in
selling
prices and continued focus on expense controls. As a result, we have
made considerable
progress in restoring our margins and expect a
significant improvement in our second half financial
performance."
One way the company has been working to protect its margins is by
raising prices. Valspar issued a
price increase on industrial powder
products of 15% and on all liquid and electrocoat products five
to 15%
effective March 1.
9 RPM
SALES: $2.3 billion
HQ: MEDINA, OH USA
PHONE: 330-273-5090
WEB SITE: WWW.RPMINC.COM
KEY PERSONNEL: Frank C. Sullivan, president and CEO; P. Kelly
Tompkins, senior vice president,
general counsel and secretary; Ronald
A. Rice, senior vice president, administration; and Robert L.
Matejka,
vice president and CFO.
Major Products: Industrial and consumer coatings and related
products sold through a number of
subsidiaries operating around the
world.
New Products: Epoxy Shield.
Recent Acquisitions: AD Fire Protection Systems (Carboline),
National Building Facilities Services
(Stonhard), Okon, Inc. (Zinsser).
* RPM has made more than 50 acquisitions over the last two decades,
and its most recent occurred
just last month. RPM's Carboline
Company acquired AD Fire Protection Systems, an international
provider
of fireproofing products for the protection of structural steel. AD
Fire, based in Toronto,
Canada, has annual sales of approximately $18
million (Canadian), stemming from its range of
water-based intumescent
fireproofing for exposed architectural steel, light and heavy
weight
cementitious fireproofing for concealed structural steel and
fire-stopping.
Also in June, RPM's StonCor Group, Inc./Stonhard Division,
acquired National Building Facilities
Services (NBFS), a regional
janitorial and facility care services company operating in the
MidAtlantic U.S. NBFS, based in Philadelphia, PA, offers daily
janitorial and facility care services to
businesses that require daily
upkeep and regularly scheduled facility maintenance such as
healthcare
facilities, warehouses/ distribution centers and retail stores.
NBFS' existing customer
base includes large regional and national
companies like Pathmark and ShopRite supermarkets;
RiteAid and Eckerd
drug stores; Dunkin Donuts, WaWa, and Stop-n-Shop stores; and Office
Depot
and BestBuy retail stores.
The latter acquisition proves just how diverse RPM's offerings
are, and how it is further expanding
into the service-side of
industry--a strategy that has become more visible throughout the
global
coatings market. With the acquisition of NBFS, RPM officials say
Stonhard will enhance its
after-sale service offerings to include
on-going facility maintenance, while NBFS can capitalize
on
Stonhard's existing nationwide network of local territory managers
and field engineers to grow
its operations from coast to coast.
According to the company, RPM has posted net sales CAGR of 5.3%
between 2001 and 2004. At a
recent Banc of America Basic Industries
Conference in New York. Frank C. Sullivan, president and
CEO,
highlighted RPM's strong track record, despite major industrial
market recession and the
challenges and distractions of a national
asbestos liability problem. Over the last three years RPM
has reduced
debt by $290 million, doubled after-tax cash from operations from $75
million to $153
million and funded increasing internal growth and $130
million of acquisitions generating
compounded annual rates of growth of
more than five percent for sales and more than 19% for
earnings.
Going forward, RPM appears more committed to success: it has set a
five year strategic plan in
motion with a goal of achieving revenue of
$3.35 billion and net income of $200 million by 2007.
SUCCESS STORY
A strong new product introduction and new market entry for RPM has
been a product in its RustOleum business called Epoxy Shield for garage
floor coatings. In 2000, RPM, under its Rust-Oleum
subsidiary, acquired
Epoxy Shield, a water-based garage floor coating for DIYers. This $2
million
product line showed strong potential, but lacked the size http://ballarat.locanto.com.au/Services/S/
and
scope to serve RPM's large customer base. To grow the Epoxy Shield
brand, Rust-Oleum
leveraged a wide range of internal resources:
technology, marketing, product packaging and
distribution. Within four
years, the Epoxy Shield brand has expanded into a $20 million business.
10 SIGMAKALON
SALES: $2.11 billion
sealing products
too, making it one of the most diverse makers of products in our market.
(Due to
changes in how we are reporting 3M's sales of coatings,
adhesives and sealants, Coatings World is
estimating its value at
approximately $1.85 billion; the company's total annual sales in
2004 were
$20 billion, an 8.9% gain over 2003.)
The company's adhesives, sealant and coatings products are
found throughout its seven business
units, including industrial (where
2004 sales rose 13.1% with double-digit growth reported by
its
industrial adhesives and tapes businesses), healthcare (where it sells
ESPE RelyX Unicem selfadhesive universal resin cement for dental
applications); transportation (a unit that makes
adhesives used to
repair and maintain cars, aircraft, boats and other vehicles) and
safety, security
and protection services (where its roster features fire
protection products such as caulks and
sealants).
3M's research, development and related expenses totaled $1.143
billion, up from $1.102 billion in
2003 and $1 billion in 2002. R&D,
covering basic scientific research and the application of
scientific
advances to the development of new and improved products and their uses,
totaled $759
million in 2004, a $10 million increase over 2003.
13 KANSAI PAINT
SALES: $1.83 billion
HQ: OSAKA, JAPAN
PHONE:: 81-6-6203-5531
E-MAIL: TOYOKA@ALS.KANSAI.CO.JP
WEN SITE: WWW.KANSAI.CO.JP
KEY PERSONNEL: Shoju Kobayashi, president; Otani Toshinobu,
executive managing director; Yuzo
Kawamori, managing director
(marketing); and Sinichi Mamatsu, managing director (R&D).
Major Products: Automotive OEM and refinish coatings, industrial
coatings, decorative paint,
marine and protective coatings.
* Kansai Paint is Japan's second largest coatings manufacturer
and a major player internationally.
Approximately 95% of its sales stems
from coatings; the company also defines a small sector of its
sales as
"new business," which includes communications, electronics and
biotech.
Kansai Paint has plants in Amagasaki, Ono, Nagoyra, Hiratsuka and
Kanuma and an R&D center in
Kirtasuka.
14 H.B. FULLER
SALES: $1.4 billion
HQ: ST. PAUL, MN USA
PHONE: 651-236-5900
In China, H.B. Fuller will sell a 20% equity interest in its China
operations to Sekisui. Sekisui will
retain an option, exercisable after
two years, to increase its equity ownership in the company to
30%.
"We are excited to be joining forces with Sekisui Chemical
Company. This joint venture unites two
complementary businesses in a
strategic alliance that will create a strong market participant in
one
of the fastest growing regions of the world," said A1 Stroucken,
H.B. Fuller's chief executive
officer.
15 MASCO
SALES: $1.2 billion
HQ: TAYLOR, MI USA
PHONE: 313-274-7400
WEB SITE: WWWMASCO.COM
KEY PERSONNEL: Richard A. Manoogian, chairman of the board and CEO,
Masco. Behr Process-Jeffrey D. Filley, president; Christopher E. Jones,
vice president of manufacturing and engineering;
Scott Richards, SVP,
marketing. Vapor Technologies--Michael S. Walsh, Jr., president and
CEO;
Dan Hellman, marketing manager. Masterchem Industries--Stanley G. Korte
president, Jim
McDerby, director of operations; Jason Caldwell, plant
manager; Sherry Nelms, purchasing; and Jeff
Schutte, vice president of
marketing.
Major Products: Architectural and decorative paints, coatings and
stains
New Products: Behr Premium Plus.
* Masco's decorative architectural sector includes its paint
and stains business, spearheaded by
high-profile Behr Process Corp.
(based in Santa Ana, CA) as well as Masterchem Industries
(Imperial, MO)
and Vapor Technologies Inc. (Longmont, CO).
According to Masco, net sales of architectural coatings, including
paints and stains, comprised
approximately 10% of the company's
consolidated net sales ($12.1 billion) for the year ended
December 31.
Overall, the company's decorative architectural product
sector-which includes coatings as well as
hardware and other items-saw a
sales increase of 11% in 2004, in part due to higher unit sales
volume
of paints and stains. One reason for the gain could be the enhanced
paint-buying
experience Behr developed at 1,500 Home Depot stores in the
U.S.
16 ROHM AND HAAS
SALES: $1.149 billion
HQ: PHILADELPHIA, PA USA
PHONE: 215-592-3000
As was the case whenever PPI acquired smaller paint business, the
individual units of Kwal Paint,
Frazee, Parker Paint, General Paint,
Steller Kwal and Duckback will continue to operate as
independent units,
opting to leverage its strength when it comes to purchasing raw
materials,
according to a source close to the company.
COMEX operates five manufacturing plants, which produce more than
6,000 products including
architectural, industrial, maintenance and
automotive coatings. It is also vertically integrated,
manufacturing
some of its own raw materials and packaging. COMEX also runs the
Polymer
Research Center, an R&D facility in Tepexpan, and La Ribeira Center,
a training facility.
19 AB WILH. BECKER
SALES: $945.4 million
HQ: HOGANAS, SWEDEN
PHONE 46-42-33-85-00
WEB SITE: WWW.BECKER.SE
KEY PERSONNEL: Ulf G. Linden, chairman; Magnus Lindstam, managing
director; Ralph Kabalo,
key manager, Becker Industrial Coatings; Michael
Henderson, key manager, ColArt; Aled Roberts,
key manager, Becker Powder
Coatings; and Kaj Brandt, key manager, Becker Acroma.
Major Products: Wood finishes, powder coatings and artists
materials.
* Wholly owned by Lindengruppen AB, AB Wilh. Becker has overall
responsibility for accounting,
finance and information, while each of
its business areas conduct their operations with a
considerable degree
of autonomy.
Becker Industrial Coatings (BIC), which is a European market leader
in coil coatings, is also a major
supplier of specialty coatings for
industrial finishing of metal and plastic substrates.
Becker Acroma makes lacquers, paints and stains for the woodworking
industry. It has its own
operations in Europe and North America through
its own companies and production resources,
while in the Asia-Pacific
region, Becker Acroma's products are distributed to selected
markets via
sales and service companies.
ColArt owns three out of the six largest and most famous brands of
artists' colors in the world
including Winsor & Newton,
Liquitex and Lefrance & Bourgeois. In recent years, this unit of
AB
Wilh. Becker has expanded production to eight factories worldwide, two
of which are in China.
20 DAW
SALES: $945.3 million
DEUTSCHE AMPHIBOLIN-WERKE VON ROBERT MURJAHN STIFTUNG & CO. KG
HQ: OBER-RAMSTADT, GERMANY
PHONE: 06154/71-0
New Products: Universal Wall Grip, Studio Finishes glazes, Color
Samples and Pocket Palette.
* Berkshire-Hathaway-owned Benjamin Moore, a leader in
architectural finishes, continues to roll
out not only new products as
well as new tools that will help its customers--be they
professional
painters, designers or homeowners--purchase and use their paints and
coatings.
For example, to make it easier to test colors in real-world
conditions, the company has added twoounce sample pots (perfect for a
2' x 2' two-coat application).
To make color specification as easy as pushing a button, Benjamin
Moore concrete coatings Gold
Coast has created a portable color palette search instrument, the Pocket
Palette, which allows
contractors and designers to match existing colors
on horizontal, vertical and three-dimensional
substrates. With a simple
click, a sample is matched to the closest Benjamin Moore color
and
stored electronically for future reference. When reading complex
patterns the device will
provide an average of all colors combined.
There are more than 3,200 colors programmed into
Pocket Palette.
SUCCESS STORY
Benjamin Moore has again been voted the No. 1 choice of paint by
interior designers in a poll
conducted by House & Garden magazine.
The results of the second annual "The Best on the Best"
survey
were reported the magazine's April issue. "The design
community has spoken again," said
Dan Claybaugh, director of
marketing for Benjamin Moore, "and, it is gratifying to know how
highly
they regard the Benjamin Moore brand and products. Benjamin Moore
continually strives to exceed
the expectations of design professionals,
knowing they rely on us to deliver outstanding quality and
performance
plus unsurpassed color offerings. We are extremely proud to be named
their favorite
paint again this year and to be cited among such a
prestigious collection of designer-specified
materials and
furnishings."
22 JOTUN
SALES: $903.4 million
HQ: SANDEFJORD, NORWAY
PHONE: 47-3345-6000
WEB SITE: WWW.JOTUN.COM
KEY PERSONNEL: Odd Gleditsch dy, Jotun's chairman of the board
of directors; Knut Almestrand,
president and CEO (until the end of
2005); Bjorn Naglestad, group executive vice president, Jotun
Dekorativ;
Erik Aaberg, group executive vice president, Jotun Paints; Morten Fon,
group vice
president, Jotun Coatings; Larry McNeely, group executive
vice president, Jotun Powder Coatings;
Knut Oivind Malmin, purchasing;
Sverre Maaren, HSE; and Bent W. Haflan, R&D.
Major Products: Decorative paints and marine protective an powder
coatings
New Products: SeaForce 30, SeaForce 60, SeaForce 90 and Hardtop
Flexi (global launch).
* As president and CEO, Knut Almestrand wrote in Jotun's
annual report that 2004 was a milestone
in the Jotun Group's
78-year history.
Jotun recorded "exceptional results" in 2004, including
an operating profit of approximately $67.2
million. "This is
impressive in itself, but even more so given the weak U.S. dollar and
rising raw
material prices--factors which are beyond our control,"
Almestrand said.
Organic growth led to new records in both production and earnings,
and "heavy investments" are
putting the Swedish paint maker in
a good position for continued growth.
Almestrand, who will retire this year, will pass on that good
position to Morten Fon, who was named
the next president and CEO for
Jotun Group (see As We Go to Press on page 8). Almestrand spent
37 years
with the company and seven years as president and CEO.
Fon is looking forward to the challenges of his new role.
"Jotun has a special importance in
Norwegian and international
industry and the position is an exciting challenge," said Fon.
"Jotun
has gained a great deal of experience internationally with
many skilled employees and I look
forward to helping the group to
develop further."
Future developments will come thanks to aggressive investment and
expansion efforts. In 2004,
Jotun opened new factories in Dubai,
Pakistan and Vietnam, upgraded existing facilities to ensure
capacity
can keep pace with demand and poured funds in innovation and product
development
during 2004. Total investments amounted to approximately $68
million, according to officials, and
Jotun plans to keep up the pace
with projects in China and Indonesia.
Selling in Asia is not a new strategy for Jotun. The company began
selling paint in Vietnam as early
as 1992 and in 1998 production began
in Binh Dong, which is close to Ho Chi Minh City. Today,
Jotun is the
leading manufacturer of marine and protective coatings for industrial
and offshore
markets in Vietnam. In November Jotun unveiled its expanded
production facility in Vietnam, which
will produce both waterborne and
solvent-based paint. The facility will have a total production
capacity
of 13 million liters, which is far ahead of its present production
capacity of 1.3 million
liters.
As for China, Jotun has been operating there since 1993, having
formed Jotun Ocean Paint Co. Ltd.,
a joint venture with Cosco, a Chinese
state shipping company (prior to that, products were imported
from
Singapore). Jotun Ocean Paint, which concentrated on marine coatings
deliveries to the
shipbuilding and dry-docking segments, gained a fair
share of the market, despite growing
competition from international
players and domestic producers, according to Jotun's head
of
Chinese operations.
Today, Jotun China, which includes Jotun's Hong Kong business,
entails three companies, eight
sales offices and 400 employees. Marine
products account for 70% of sales, and protective coatings
now account
for 25%. In addition, Jotun's decorative paint sector is also up
and running. With such
expansion--and the market's potential--Jotun
realized its 15 million liter plant in Guangzhou and
supplementary
imports won't be enough. Therefore, a $27 million plant near
Shanghai is expected
to come on stream in January.
23 HEMPEL
SALES: $726.04 million
HQ: LYNGBY, DENMARK
PHONE: 45-45-93-38-00
application.
* Originally known as Hobrecker & Konig back in the 1880s,
Brillux is now in its fourth generation
of independent ownership by the
Konig family. Based in Munster, the company has four plants
in
Germany--Munster, (its main plant for paint, lacquers and varnishes),
Herford (plaster and
adhesives), Malsch (water-based products) and Unna
(industrial lacquers).
27 FORBO
SALES: $465.5 million
HQ: ZURICH SWITZERLAND
PHONE: 41 44 868 2525
WEB SITE: WWW.FORBO.COM
KEY PERSONNEL: Hans Peter Ming, chairman; Walter Gruebler CEO; and
Michel Riva, executive
vice president, Forbo adhesives.
Major Products: Industrial adhesives.
* Forbo makes adhesives for industrial applications (automotive,
footwear, packaging, furniture,
construction, etc.) as well as floor and
wall covering adhesives, tile adhesives and smoothing
compounds. The
company also makes intermediate products used in the manufacturing of
adhesive
products.
28 ASIAN PAINTS
SALES: $444.27 million
HQ: MUMBAI, INDIA
PHONE: 91-22-56958000
WEB SITE: WWW.ASIANPAINTS.COM
KEY PERSONNEL: Ashwin Choski, chairman; Ashwin Dani, vice chairman
and managing director;
Abhay Vakil, managing director; P.M. Murty,
president, decorative (India); J.N. Shahani, vice
president, industrial
(India) and Jalaj Dani, Vice president international operations.
Major Products: Decorative/architectural and industrial coatings.
* Asian Paints has come quite a way since its small beginnings in
1942. The company has become a
corporate force, and as India's
leading paint company, is double the size of any other paint company
in
India, according to company officials.
Asian Paints operates in 22 countries and has 29 paint
manufacturing facilities in the world, serving
consumers in more than 65
countries. In 10 markets it operates through its subsidiary,
Berger
International Limited; in Egypt through SCIB Paints; in five markets in
the South Pacific it
operates through Apco Coatings, and in Fiji and
Samoa, it also operates through Taubmans.
By category, the company's sales stem mainly from
architectural/decorative coatings, representing
approximately 85% of
sales. It boasts an R&D staff of 225.
SUCCESS STORY
Asian Paints' plant at Sriperumbudur is located at the SIPCOT
industrial area off the ChennaiBangalore high-way. The plant, which
will have a final capacity to produce 100 million liters of paint
per
year, will be the firm's largest manufacturing facility. Completed
in just 15 months, this plant
started commercial operations in March
with an initial production output of 30 million liters. The
facility
(above) will cater to the fast growing market of southern India and will
produce only waterbased paints, including high-end emulsions products
such as Royale.
29 WATTYL
SALES $381.8 million
HQ: BLACKTOWN, AUSTRALIA
PHONE: 02 9621 6255
WEB SITE: WWW.WATTYL.COM.AU
KEY PERSONNEL: John Ingram, chairman; John Nolan, director and CEO;
John Foyle, CEO of
Wattyl New Zealand; David Marginson, general manager,
Wattyl Australia Pty; Chris Muir, group
operations manager; and John
Neumann, CEO of Solver.
Major Products: Decorative paints, varnishes, lacquers and special
purpose protective coating.
New Products: Low VOC/no odor premium paint sold under the Wattyl
i.d banner, Solagard exterior
stone finish and Solagard DIY bagged
finish.
* Now out of the U.S. market--following the sale of Coronado and
Lenmar--Wattyl can concentrate
on markets closer to home where it faces
stiff competition and a slow economy. Those factors may
have played a
role in the departure of Ian Jackson, who resigned as Wattyl's
managing director in
February. He was replaced by John Nolan, who will
remain at the post of CEO until a replacement is
named, the company
said.
The company is looking to make changes to stay competitive, and
this spring conducted a review of
its business with the assistance of
Port Jackson Partners. In June, Nolan made a presentation about
the
"key areas of focus that will generate the changes needed to
establish Wattyl as the premier
liquid surface coatings supplier in the
Australian and New Zealand markets." Among the
immediate
initiatives mentioned in the presentation were to streamline the
organization structure,
relaunch and increase support for key retail
brands and implement plant efficiency projects.
One new addition to the company has experience in company revivals.
David Marginson joined
Wattyl as general manager, Wattyl Australia Pty,
in February. He has extensive senior management
experience in marketing
and selling products through both retail and trade channels. Before
joining
Wattyl he was managing director of Yates (part of Orica), where
he significantly reshaped the
business, the company said.
Wattyl is already taking a new stance in the market, relaunching
Wattyl i.d as a mass-market, low-
VOC premium paint line. Featuring no
odor, ammonia or formaldehyde and minimal VOC, the line
has also been
formulated without the use of alkyl phenol ethoxolate (APE) surfactants.
30 ORICA
SALES: $380.8 million
HQ: VICTORIA, PHONE: 61-3-9665-711
WEB SITE: WWW.ORICA.COM
KEY PERSONNEL: Malcolm W. Broomhead, managing director and CEO,
Orica; Peter Bailey,
general manager, consumer products; Noel Meeham,
CFO; Shaun O'Sullivan, general manager,
business development; and
James Bonnor, general manager, Orica adhesives and resins business.
Major Products: Decorative and architectural paint, wood care
products and powder coatings.
New Products: Dulux NeverMiss one-coat ceiling paint, Trimatrx
powder coating for MDF and
Selley's No More Big Gaps and Liquid
Nails Floors & Decks.
* Orica said its paint and wood care sales--part of its Consumer
Products segment--rose more than
three percent with underlying demand in
both trade and retail segments and prices remaining
largely unchanged.
Orica has teamed up with a leading MDF board maker (Alpine MDF
Industries) to create new
powder coated MDF products. The patent pending
Trimatrx System incorporates Trimatrx powder
coating and the Trimatrx
MDF board, which is environmentally friendly with a zero to very
low
formaldehyde content rating. Trimatrx MDF board can be shaped and routed
to a high quality
finish, while meeting the "moisture
resistant" grade of MDF standards, according to the company.
The powder coating technology, developed by Orica Consumer Products
at its research center in
Melbourne, was designed specifically for heat
sensitive substrates, curing at low temperatures and
providing a very
good surface hardness, flexibility and chemical resistance. The coating,
which is
offered in "virtually" all colors and in pearl and
textured finishes, is available only through a select
group of
applicators that have dedicated facilities to handle, apply and test the
system, according to
Orica.
31 BARLOWORLD
SALES: $362.37 million
HQ: JOHANNESBURG, SOUTH AFRICA
PHONE: 27-11-301-4600
SITE: WWW.BARLOWORLD.COM
KEY PERSONNEL: Andre Lamprecht, CEO; Garth Smith, COO and managing
director, Barloworld
Coatings Australia; Mike Christie, managing
director, Barloworld Plascon SA; Ebrahim Moahemd,
executive director,
Barloworld Plascon Sa and managing director, Barloworld Plascon Africa;
Doug
Thomas, financial director; and Doug Swanson, managing director,
Barloworld Automotive
Coatings.
Major Products: Architectural and decorative paint and automotive
coatings.
Recent Acquisition: International Chemical Corp., a maker of
tinting systems and colorants.
* Barloworld Coatings contends it is "well positioned for
growth in revenues and earnings," and it
says it has created a new
business model which has the potential to drive its results for the
next
few years. According to the company, the new model was heavily
influenced by opportunities
in China.
Last year, it opened a representative office in Shanghai and was in
the early stages of evaluating its
best way to enter the market.
Barloworld's business model for China centers on three
principal
elements: a close alliance in China with an international chemical
company; closer ties
with Chinese enterprises that have already been
identified in four years of "low-key" activity in
China; and
implementation of a decor effect selling policy, in which the company
sells the coating
and its application.
Closer to home, at Decorex 2005, Plascon created Plascon
Room-by-Room, which showcased the
talents of top interior designers and
decorators, encompassing retail and fabric houses, creative
lighting,
innovative accessories and a water feature. In August, Plascon will
release its Colour
Palette for 2006, a fashionable color range based on
international color trend forecasts and tailored
by Plascon's color
specialists to suit the South African environment.
32 ARCH
SALES: $351 million
ARCH WOOD PROTECTION & ARCH INDUSTRIAL COATINGS
HQ: NORWALK, CT USA
PHONE: 203-229-2900
WEB SITE: WWW.ARCHCOATINGS.IT * WWW.NATURALSELECT.COM
KEY PERSONNEL: Steve Wisnewski, president; Arch Wood Protection;
Ian Hobday, managing
director, Arch Industrial Coatings; Huck DeVenzio,
marketing, Arch Wood Protection; Petra Deiti,
Arch Industrial Coatings;
Maurizio Brini, technical director, Arch Industrial Coatings; John
Kranjc,
technical director, Arch Wood Protection.
Major Products: Wood preservatives and wood coatings.
New Products: LineaBlu water-based wood coatings for European
do-it-yourselfers and Wolman E
and Tanalith E advanced wood
preservatives (copper azole base).
* Arch Chemical's wood protection and industrial coatings
business is a global operation with 100
people employed in R&D and
nine manufacturing sites worldwide. Wood preservative are made in
four
sites in the U.S. (Conley, GA, Rochester, NY, Kalama, WA and Valparaiso,
IN), England and
Australia. Industrial coatings are manufactured in
Pianoro and Mariano Comese, Italy and Les
Mureaux, France.
In 2004, Arch Industrial Coatings celebrated the 50th anniversary
of its founding in Italy. The
business is one of the largest wood
coatings suppliers in Italy and France, and is also expanding
into
Europe, North America, China and South America. Its product roster
includes lacquers,
topcoats, stains and fine finishes, mainly for fine
home and office furniture, picture and door frames
and other joinery.
Arch Wood Protection is a supplier of wood preservative to wood
treatment firms worldwide,
including copper-azole wood preservative.
33 KELLY-MOORE
SALES: $335 million
HQ: SAN CARLOS, CA USA
PHONE: 650-592-8337
WEB SITE: WWW.KELLYMOORE.COM
KEY PERSONNEL: Herbert R. Giffins, president and CEO; Dan
Stritmatter, CFO; Todd Gentry, Vice
president-sales; Steve DeVoe, vice
president-store operations; Cindie Rutledge, vice presidentstores
accounting; Jim Maul, vice president-information systems; Doug Merrill,
vice presidentmanufacturing; Mark Zielinski, director of
marketing-sundry procurement; and Dan Englert, vice
president-technology
and raw materials procurement.
Major Products: Architectural decorative coatings/ industrial and
high-performance coatings.
New Products: A1610 Acry-Plex 100% acrylic interior eggshell enamel
and A1640 Acry-Plex 100%
acrylic interior satin enamel.
* Kelly-Moore, an employee-owned paint company, has 150 retail
stores and three major
manufacturing facilities.
Despite a legal setback late last fall regarding a case with Union
Carbide, Kelly-Moore remains
committed to growth, and will open 11 new
stores this year.
"We believe this expansion plan will allow us to better serve
our customers," said Kelly-Moore
president and CEO Herb R. Giffins.
"Kelly-Moore has been the painter's paint store for nearly
60
years and we are looking forward to another 60 years of success."
In November, company founder William E. Moore died at his home in
Woodside, CA. He was 87.
34 CMP
SALES: $303.95 million
CHUGOKU MARINE PAINT
HQ: TOKYO, JAPAN
PHONE:: 81-3-3506-5880
KEY PERSONNEL: Koji Oe, president; Kozo Okumura, chairman and
Yasuyoshi Ikeozoe, controller.
Major Products: Coatings and adhesives for a variety of end uses,
including beverage cans, optical
discs and wood.
Recent Acquisition: Eques Coatings B.V.
* DIC's chemical coating division makes adhesives and coatings
including exterior and interior can
coatings, coil coatings for building
materials and electric appliances, wood finishes and adhesives
and
sealants for electronics and information materials.
DIC, which commands a 50%-plus share of the global market for
UV-curable coatings and adhesives
for optical discs, recently expanded
it presence in the sector with the March acquisition of Eques
Coatings,
a European maker of UV curable coatings and adhesives for optical discs.
Based in Oss,
The Netherlands, Eques was founded as the coating division
of Philips Electronics, but become a
private company in 1998 in a
management buyout.
In addition to coatings for CDs and adhesives for DVDs, Eques also
makes specialty coatings or
televisions, DVD players and other consumer
electronics products. Eques Coatings will continue to
manufacture and
sell its products under its respective brand names.
37 DYRUP
SALES: $278.8 million
HQ: SOBORG, DENMARK
PHONE: 45-39-57-93-00
WEB SITE: WWW.DYRUP.COM
KEY PERSONNEL: Steen Bjerre, president and CEO; Hanne Lund,
executive vice president;
Roeland Meijers VP, marketing and application
and product development; Allan Dehn Sogaard, VP,
information technology;
Nis Petersen, VP, corporate purchase; Henrik D. S. Nielsen, VP,
supply
chain; Francois Corda, manager, France and Belgium; Sten Chrisdam,
manager, Nordic;
Volker Thiele, manager, Germany and Austria; Ireneusz
Struk, manager, Poland; and Eduardo
Cevasco, manager, Portugal and
Spain.
Major Products: Architectural paint, coatings and stains for DIY,
professional and industrial
customers.
* When the bulk of your business is wood care and other exterior
projects, bad weather is never
welcome. That was the case for Dyrup.
Unfavorable weather for sales of wood care and other
outdoor
products--which constitute about 70% of Dyrup's business--led to an
unusually short wood
care season. In addition, the firm said 2004 was
marred by recession in Dyrup's principal markets,
with decline in
private spending, retail trade and construction.
While in the first half there were tentative signs of an
improvement in market conditions and
growing consumer optimism in most
markets, Dyrup said signs quickly faded, and market conditions
grew
steadily worse. Revenue and earnings were down from 2003, which the
company called
"unsatisfactory." It wasn't all bad,
though. While revenues dropped three percent, Dyrup held
market share
overall, and even increased its share in some markets. Declines were
most prevalent
in Germany and Portugal, the company said. Excluding
these two markets, consolidated revenue
was down just one percent for
the year.
Dyrup said business projects implemented over the past few years
contributed favorably to profit,
but did not compensate fully for
increased raw material prices and persistent price
pressure.
Distribution costs were up slightly as well, reflecting the fact that
Dyrup is investing in its
trademarks and its sales and distribution
network as a necessary platform for future growth.
38 LORD CORP.
SALES: $275 million *
HQ: CARY, NC USA
PHONE: 800-458-0456
WEB SITE: WWW.LORD.COM
KEY PERSONNEL: Rick McNeel, president and CEO; Richard J. Ambrose,
VP, research and
technology; Ed Gustin, director, business development;
Gerald M. Estes, VP, materials; Will C.
Hinkston, VP, global operations;
Steve Howe, general manager, L/T Technologies; Mark Weih,
global market
manager for Metal Jacket; and Tony Ciampa, market manager for
automotive
components.
Major products: Adhesives, sealants and coatings.
New Products: HPC-5C and HPC-5B high performance elastomer
coatings, and Chemlok 6253
adhesive.
Recent Acquisitions: L/T Technologies LLC.
* Privately held Lord Corp. makes a variety of adhesives, sealants
and coatings for various
marketplaces.
Last August, Lord acquired L/T Technologies, a manufacturer of
acrylic UV and waterborne coatings
for wood products, which had been a
joint venture between Lord and Treffert GmbH and Co. KG
According to Ed
Gustin, director, business development, L/T Technologies allows Lord to
grow and
improve its offerings for the flooring and panels industries.
L/T's coatings, which are typically
applied as multi-layer systems
by roller coating technology and cured by UV energy, are
either
micro-and/or nano-particle modified acrylated resins, which yield
extreme hardness resulting
in high mechanical resistance to scratch,
impact and abrasion.
Lord has also developed a number of new products, including Chemlok
6253, a robust adhesive
developed to deal with the increasingly higher
performance requirements for under-the-hood
automotive anti-vibration
components. In addition, new HPC-5C and HPC-5B high
performance
elastomer coatings were developed to improve the oil- and
ozone-resistance of various
elastomer materials used in automotive,
industrial, marine, off-highway/agriculture,
aerospace/aircraft and oil
drilling type applications, according to the company.
39 ALTANA
decorative; Mutlu Uysal, key manager,
industrial; Gunther Sthamer, key manager, OEM; and Nlihat
Zorlu, key
manager, CR.
Major Products: Architectural/decorative paint, industrial and
industrial maintenance coatings and
auto OEM and refinish coatings
* According to company officials, the largest share of Yasar Paint
Group's sales come from the
architectural/decorative sector, which
accounted for 32% of company sales. Industrial and
industrial
maintenance coatings follows at 25%. Automotive OEM represents 14% and
automotive
refinish accounts for 11%.
Approximately 11% of sales can be attributed to Yasar's can
coatings, textile and leather finishes,
pigment pastes and emulsion
polymers.
42 HELIOS
SALES: $254.9 million
HQ: DOMZALE, SLOVENIA
PHONE: 386-1-722-4000
WEB SITE: WWW.HELIOS.SI
KEY PERSONNEL: Uros Slavenic, president of management board; Marko
Vresk, vice president;
Matjaz Hafner, vice president; Ales Skok,
executive director for decorative coatings; Stevo Buinac
executive
director for metal coatings; Mladen Mihalec, executive director for wood
coatings; Peter
Zupan, executive director for car refinishing coatings;
and Dasa Tomazin, executive director for
powder coatings.
Major Products: Decorative paints, automotive OEM and refinish,
industrial coatings and powder
coatings.
Recent Acquisitions: Color d.d. (Slovenia).
* "In 2004, Helios achieved solid results, in spite of fast
expansion of the group and fierce conditions
of business operations in a
wider environment. We achieved and even exceeded our planned
sales
goals," the company told Coatings World. The best results came in
decorative coatings, car
refinish and metal coatings. In addition, the
company said sales volume from its joint venture with
PPG has been
increasing.
Helios recently invested funds into a new production plant for
Chromos, its Croatian company.
43 ROCK PAINT
SALES: $234.93 million
HQ: OSAKA, JAPAN
PHONE: 81-6-6473-1567
54 TOHPE
SALES: $150.49 million
HQ: OSAKA, JAPAN
PHONE: 81-772-243-6411
WEB SITE: WWW.TOHPE.CO.JP
KEY PERSONNEL: Toru Sato, president
* Tohpe, based in Osaka, makes a variety of coatings and related
products.
55 INDUSTRIAS TITAN
SALES: $145.2 million
HQ: BARCELONA, SPAIN
PHONE: 34-934797494
WEB SITE: WWW.TOHPE.CO.JP
KEY PERSONNEL: Jose Farres Pere, CEO; Jaime Carbonell Petit,
financial general manager;
Eusebio Gomez de Avila, commercial manager;
Antonio Vilaseca Martinez, technical director; and
Jose Manuel Azpeitia
Fernandez, key manager for powder coatings.
Major Products: Decorative/architectural, industrial maintenance,
marine and powder coatings, and
fine arts products (oil, water and
acrylic colors, poster paints, etc.)
New Products: 2010 Titanlux multi-purpose varnishes and a range of
products for humidity control
in construction.
* Founded in 1917, Industrias Titan has an R&D staff of 50 and
seven manufacturing facilities. The
majority of its sales (83%) come
from the architectural/decorative market. In 2002, Industrias Titan
had
a seven percent share of the Spanish paint market (by value), according
to IRL.
56 M.A.B. PAINTS
SALES: $140 million *
HQ: BROOMALL, PA USA
PHONE: 610-353-5100
WEB SITES: WWW.MABPAINTS.COM
KEY PERSONNEL: Thomas A. Bruder, Jr. president; James. J. Bruder,
executive vice president;
Michael A. Bruder, executive vice president;
James Renshaw, general manager; and George
Przybylski marketing
director.
strong year for domestic as well as
international paint sales for Ace Hardware."
Ace Paint recently received the highest overall ranking among
several leading national brands in a
recent study conducted by DL
Laboratories, Inc., an independent testing and consulting lab. The
study
ranked Ace's newly-formulated Royal interior paint number one in
four paint finish
categories--flat, eggshell, satin and
semi-gloss--based on an aggregate number of points scored on a
group of
tests when compared to certain brands manufactured by Behr, Benjamin
Moore, Dutch
Boy, Glidden and Valspar. All paint in this study were
submitted blindly and with no identification,
according to the company.
"These study results support the fact that Ace Paint is a
leading paint manufacturer in the industry
and showcase our commitment
to high quality and innovative paint products," said Bristol.
SUCCESS STORY
How many square feet of wails, ceilings and home exteriors will 150
million gallons of paint cover?
Remarkably, a projected 45 billion
square feet. That astounding figure represents the colorful
coverage the
Ace Hardware Paint Division has provided to residences and other
buildings
throughout U.S. and the world during the 20 years it has been
churning out paint products
exclusively for Ace stores.
The division's 20th anniversary in 2004 occurred the same year
Ace, as the industry's largest
retailer-owned cooperative, marked
its 80th anniversary. And even though it didn't start
manufacturing
its own paint until 1984, Ace has had its own private label paint since
the 1930s.
58 TOA PAINTS
SALES: $128 million *
HQ: BANGKOK, THAILAND
PHONE: 66-0-2392-8461
WEB SITE: WWW.TOAGROUP.COM
KEY PERSONNEL: Prachak Tangkaravakoon, executive chairman.
Major Products: Architectural/decorative paint and wood, OEM, heavy
duty and powder coatings.
* TOA Paint is part of TOA Group, one of Thailand's leading
industrial companies.
59 VOGEL PAINT
SALES: $125 million
HQ: ORANGE CITY, IA USA
PHONE: 712-737-8880
WEB SITE: WWW.VOGELPAINT.COM
KEY PERSONNEL: Drew F. Vogel, president and CEO; Doug Vogel, vice
president, decorative; Mark
Vogel, vice president, industrial; and Bert
Aarsen, CFO.
Major Products: Decorative, industrial and special purpose paint
and coatings.
* Vogel Paint and Wax debuted in 1926 when Andrew Vogel--who
wasn't having much success in the
farm business--realized that the
paint available to him was inferior to that which his family made
in
Holland. So Vogel began to manufacture a red barn paint and a white
house paint in his garage.
Today, Vogel Paint is $100-million-plus family-run firm--quite a
feat in this competitive market--and
its color collection has come a
long way too: its new StudioCollection palette features 1,320 colors.
60 GREBE GROUP
SALES: $124 million *
GREBE HOLDING AG
HQ: WEILBURG, GERMANY
PHONE: 49 6471 315-0
WEB SITE: WWW.GREBE.DE
KEY PERSONNEL: Helmut Tappe and Gunter Waase, board members.
Major Products: Industrial coatings.
* Grebe Group is a privately owned manufacturer of industrial
coatings serving the European
market for more than 180 years. Its roster
of companies includes Schramm Coatings, which boasts
1500 formulations.
61 INSL-X
SALES: $115 million
HQ: STONY POINT, NY USA
PHONE: 845-786-5000
WEB SITE: WWW.INSL-X.COM
KEY PERSONNEL: James Weil; president; Jim Capitano, vice president,
operations; Don Muller, vice
president, sales and marketing; Ross
Laurie, CFO; John MacLauchlan, executive vice president;
Aaron Dhawan,
marketing director; Iain Harvey, technical director; and Tom Parker, key
manager
for Lenmar.
Major Products: Architectural/decorative and industrial maintenance
coatings and specialty
coatings.
New Products: Cabinet Coat, Garage Gard, Texcrete, FinalFinish CW
and Aqua-Loc Plus.
* With its 2004 acquisition of Coronado paint and Lenmar wood
coatings from Wattyl, Insl-x
Products Corp. became of one of the largest
privately-owned coatings manufacturers in the U.S.
market and also one
our "Top Companies."
The company, which is also parent to Bruning Paint, has
manufacturing facilities in Stony Point, NY,
and through
Lenmar/Coronado, it now operates production facilities in Edgewater, FL
and
Baltimore, MD.
In addition to the Wattyl and Lenmar products, Insl-x's roster
includes a complete line of specialty
paints and coatings, such as Hot
Trax (a latex concrete floor paint), Tru-flex Cushion (a
high
performance coating consisting of encapsulated rubber particles and
fillers blended with
100% acrylic emulsion to create a shock absorbing
surface for tennis courts), Insl-Cap Compound (a
water-based coating
designed to create barrier over lead containing paint) and Brilliant
Aluminum
(a chrome-like, bright sheen aluminum paint for wood, metal and
masonry that is suitable for
interior and exterior applications.)
Insl-x president James Weil recognizes that having a diverse
product range isn't enough.
"In today's highly competitive marketplace, having the
toughest, best quality product means nothing
if it is not backed by a
solid commitment to service," he said. "We pride ourselves on
being
customer driven, and view our relationships as partnerships.
Offering the very best products backed
by a complete support network
will enable both Insl-x and our customer partners to move
profitably
into the next millennium."
COMPANIES TO WATCH
RED SPOT PAINT & VARNISH
SALES: $99 million *
HQ: Evansville, IN USA
PHONE: 812-428-9100
WEB SITE: www.redspot.com
KEY PERSONNEL: Charles D. Storms, president, CEO; David D.
Vranesich, VP sales; George P.
Lord, VP operations; Mark A. Lutterbach,
VP research; Michael M. Merkel, VP commercial
products; Joseph D.
Neidig, HR and administration; Jeffrey M. Scheu, coatings marketing
director;
Timothy J. Tanner, key manager, UV coatings; Brandon A.
Willis, key manager, thermal coatings;
and Antony Modarressian, key
manager, sports coatings.
MAJOR PRODUCTS: Automotive coatings.
* Red Spot Paint & Varnish company has approximately 70 people
employed in R&D and two
coatings manufacturing facilities.
Well known for its automotive coatings expertise, Red Spot is also
a maker of coatings for other
markets. According to the company, leading
cosmetics and fragrance companies come to Red Spot
for packaging
innovations, including thermal and UV coatings applications which
beautify product
presentation.
TNEMEC
SALES: $88 million *
HQ: Kansas City, MO USA
PHONE: 800-TNEMEC-1
WEB SITE: www.tnemec.com
KEY PERSONNEL: Pete Cortleyou, president; Chase Bean, VP sales;
Steve Eiserer, VP finance;
Remi Briand, VP R&D; Mark Thomas,
marketing director; Joe Davis, technical services director; Joe
Schmit,
director, StrataShield-flooring; Al Morris, director, Chemprobe-masonry;
Terry Wallace,
director of agency development; John Miller, director of
agency development; George Shannon, VP
business development; Mike Bauer,
VP technical and regulatory affairs; and Pete Cerra, VP
operations.
MAJOR PRODUCTS: Architectural and industrial coatings.
* Private ownership and sales by independent representatives are
unwavering guiding beliefs for
this Kansas City, MO-based firm. Tnemec
manufactures more than 100 architectural and industrial
coatings for a a
variety of markets.
TAMBOUR
SALES: $87 million
HQ: Netanya Souty, Israel
PHONE: 09-8925555
WEB SITE: www.tambour.co.il
KEY PERSONNEL: Shmulik Porre, CEO; Yehoshua Schechter, VP finance;
Jacob Moshe, VP
administration and human resources; Yiftach Keren, VP
marketing; Offer Saky, VP sales; Shmuel
Karmiel, operations purchasing
and logistic manager; Yacov Mor, R&D manager; and Yifat
Cherpack,
legal counsel.
MAJOR PRODUCTS: Architectural and industrial coatings.
* For more than 65 years, Tambour has been Israel's leading
paint company, offering architectural
and industrial products that show
both the fun and functional sides of the business. The
company's
roster includes Superwash, an acrylic special effect paint for
residential use as well as
Copon LS4000, a clear intumescent epoxy paint
approved by the British Standard 476 fire rating
and by the Israeli
Standard 755 as a fire-retardant for ignition level IV.
TRUE VALUE COMPANY
SALES: $85 million *
HQ: Chicago, IL USA
PHONE: 773-695-5000
WEB SITE: www.truevaluecompany.com
KEY PERSONNEL: Lyle Heidemann, CEO; Ed Majkrzak, manager,
technical; Mike Haining, SVP,
logistics and manufacturing; Gene
Brickhouse, director, manufacturing; Rich White, director,
national
paint sales and marketing; and Carol Wentworth, vice president,
marketing.
MAJOR PRODUCTS: Decorative paint
* In February, True Value announced that it would close its Chicago
paint manufacturing facility.
Officials said operations at the
105,000-sq.-ft. oil-based paint production plant have steadily
declined
over the last few years while property values in the area have greatly
increased. As such,
the firm plans to sell the Blackhawk Street
facility, which encompasses a city block in downtown
Chicago.
Manufacturing will be absorbed by its Cary, IL facility, according to
the company.
"Streamlining our manufacturing operations puts the co-op in a
stronger position and fits with our
strategic growth plan, helping us to
remain competitive," said then CEO Tom Hanemann, who was
replaced
by Lyle G. Heidemann last month.
True Value's strategy to remain competitive in the paint
market has included the debut of the Color
Made Simple consumer-driven
retail paint program and a return to national paint advertising
efforts.
MULPHA INTERNATIONAL
SALES: $54.7 million
HQ: Selangor, Malaysia
PHONE: 603-7957 2233
WEB SITE: www.mulpha.com.my
KEY PERSONNEL: Lee Seng Huang, executive chairman, Mulpha
International; Derrick Tan Peng
Koon, non-executive director of
Greenfield Chemical Holdings; Yuen Shu Wah, managing
director,
Greenfield Chemical Holdings; and Ko Jack Lure, general managing,
Manfield Coatings.
MAJOR PRODUCTS: Industrial coatings
* Mulpha International Bhd is a diversified conglomerate with
operations and investments in
Malaysia, Vietnam, Singapore,
People's Republic of China, Hong Kong and Australia.
It is in Hong Kong and China where the company operates in the
paint and coatings sector, via
Manfield Coatings--a subsidiary of
Greenfield Chemical Holdings, which is part of Mulpha
International.
Manfield, which makes industrial coatings, operates out of a main
factory in Shenzen. Among other
end products, Manfield manufactures
coatings for cookware, toys and cell phones. The latter
category should
offer a substantial future for Manfield, as the market for cellular
phones in China
(and elsewhere) continues to expand. Currently, China
produces more than 200 million cell phones
annually, with top OEMs such
as Motorola, Nokia and LG churning out units there.
Hardly kids play, the metal toy market is also big business for
Manfield. It reportedly has a
"commanding" share of that
market in Hong Kong.
Manfield also operates a joint venture with German coatings company
Weilburger and Cashew
Company, a Japanese coatings firm.
"PAINTED" HORSE FARM
When star racehorses retire at Hurstland Farm in Midway, KY, True
Value is there, helping to
create a positive atmosphere for these former
champions. Fences and barns at Hurstland Farm have
been painted with 250
gallons of white and blue-green paint from True Value, which was donated
to
the non-profit Old Friends Organization. Old Friends--which was
founded after Ferdinand, a
Kentucky Derby winner, was killed in a
slaughterhouse--works to give racehorses a dignified
retirement.
2005 TOP COMPANIES
Our ranking is based on annual sales of paint, coatings,
adhesives,
sealants and related products. For companies based outside the U.S.,
sales are
translated into U.S. dollars using the average currency
exchange rate for the company's fiscal
year/reporting period.
Profiles begin on page 28, a geographical perspective and
alphabetical
listing can be found on page 26 and "Companies to Watch"
can be found on page 74.
1. Akzo
Nobel (The Netherlands) $6.529 billion
2. ICI Group (UK) $5.378 billion
3. PPG Industries (USA)
$5.275 billion
4. Henkel (Germany) $5.27 billion
5. Sherwin-Williams (USA) $4.91 billion *
6.
DuPont (USA) $3.65 billion *
7. BASF Coatings (Germany) $2.515 billion
8. Valspar (USA) $2.44
billion
9. RPM (USA) $2.3 billion
10. SigmaKalon (The Netherlands) $2.11 billion
11. Nippon Paint
(Japan) $1.89 billion
12. 3M (USA) $1.85 billion *
13. Kansai Paint (Japan) $1.83 billion
14. H.B.
Fuller (USA) $1.4 billion
15. Masco (USA) $1.2 billion
16. Rohm and Haas (USA) $1.149 billion
17.
Sika (Switzerland) $1.13 billion *
18. COMEX (Mexico) $1.02 billion *
19. AB. Wilh. Becker
(Sweden) $945.4 million
20. DAW (Germany) $945.3 million
21. Benjamin Moore (USA) $915
million *
22. Jotun (Norway) $903.4 million
23. Hempel (Denmark) $726.04 million
24. Dai Nippon
Toryo (Japan) $590 million *
25. Tikkurila (Finland) $547.29 million
26. Brillux (Germany) $523
million *
27. Forbo (Switzerland) $465.5 million
28. Asian Paints (India) $444.27 million
29. Wattyl
(Australia) $381.8 million
30. Orica (Australia) $380.8 million
31. Barloworld (South Africa)
$362.37 million
32. Arch (USA) $351 million
33. Kelly-Moore (USA) $335 million
34. Chugoku
Marine Paint (Japan) $303.95 million
35. KCC (South Korea) $300 million *
36. Dainippon Ink and
Chemical (Japan) $295 million *
37. Dyrup (Denmark) $278.8 million
38. Lord Corp. (USA) $275
million *
39. Altana (Germany) $267.42 million
40. Dunn-Edwards (USA) $265 million *
41. Yasar
(Turkey) $264 million
42. Helios (Slovenia) $254.9 million
43. Rock Paint (Japan) $234.93
million
44. Sico (Canada) $233.63 million
45. CIN (Portugal) $219.2 million
46. Renner (Brazil)
$205 million *
47. Ameron (USA) $199.6 million
48. DPI South (South Korea) $185.6 million
49.
National Paints (Jordan) $185 million
50. Shinto Paint (Japan) $176.6 million
51. Tigerwerk
(Austria) $156 million *
52. Cloverdale Paint, Inc. (Canada) $153 million *
53. Yung Chi Paint and
Varnish (Taiwan) $152 million *
54. Tohpe (Japan) $150.49 million
55. Industrias Titan (Spain)
$145.2 million
56. M.A.B. Paints (USA) $140 million *
57. Ace Paint (USA) $135 million
58. Toa
Paints (Thailand) $128 million *
59. Vogel Paint (USA) $125 million
60. Grebe Group (Germany)
$124 million *
61. Insl-x Products Corp. (USA) $115 million
* estimated sales