Powder coatings producers seek price increases in uncertain market

overall powder coating resinmarket in Mexico, the US andCanada at 65,000 tonnes. CrayValley hopes to boost its overallproduction to 30,000 tonnes by2005 against 100,000 tonneseach by UCB and DSM.

European Paint and Resin News, Mar 2003,41 (3), 9-10

Blitz bonding for effective metallicpowder coatings

Benda-Lutz, a metallic pigmentproducer, has launched its Blitzbonding process designed tocreate metallic effect powdercoatings. This multi-stage processis claimed to provide technicalexcellence compared withconventional bonding methodsincluding dry blending andextrusion/grinding. Blitz bondingyields a consistent product with apermanent metallic effect.

European Paint and Resin News, Mar 2003,41 (3), 10

DuPont launches new Alesta brandfor its decorative powder coatingsline

DuPont of the US has introducedits new Alesta brand for its line ofdecorative coatings. The range isbeing promoted for its superior,functional and aesthetic coatingproperties, as well as its easy-to-use and low cost application tometal and other substrates.

European Paint and Resin News, Mar 2003,41 (3), 12

Spain: Nabersa separates powdercoatings and liquid coatingsproduction

Naber Recubrimentos Enbersa inSpain has been restructured. Theformer production companyIndustrias Quimicas Naber hasbeen transformed into a holdingcompany with the 2 newsubsidiaries Naber Pinturas yBarnices (manufacture of liquidpaints and coatings) and NaberRecubrimentos en Polver(manufacture of powder coatings).

These companies achieved acombined turnover of €44 M(+10.3%) in 2002. The combinedpre-tax profit amounted to €1.9 M.

Farbe und Lack, Apr 2003, 109 (4), 18 (inGerman)

Powder coatings producers seekprice increases in uncertain market

Although a number of producersof powder coating formulationshave recently increased prices,the rises may not provide theboost required. Some downstreamsectors are unlikely to accept arise. Powder coatings have foundtheir forte in the general metalsmarket, where the products havedone well. This market accountsfor around $600 M of the $1 bnUS powder coatings market. It isa highly fragmented market andthis makes it easier for price risesto be passed on to customers.Rohm and Haas is wellpositioned in the general metalsmarket. Its powder coatingsbusiness implemented a 3% risein price for all its powder coatingsproducts, with effect from 1 Apr2003. The big worry in theindustry is the move overseas ofmany N American powder coatingcustomers and over capacity inthe industry. Current capacityutilization is below 50%. Ratherthan export, it is cheaper toproduce where the end-product isbeing made. N America has 75suppliers and formulators ofpowder coatings but only 12 cansupply world-wide. The 75 mayfall to 40, or even the hightwenties over the next 6 years asconsolidation takes place. Oneestimate puts the globalthermosetting powder coatingsmarket at over 900,000 tonnes in2001, with a value of $3.6 bn.

Chemical Market Reporter, 7 Apr 2003(Website:http://www.chemicalmarketreporter.com)

Reichhold announces priceincreases

The rise in raw materials costshas prompted Reichhold to

announce price increases for allits resins and coating products inEurope, the Middle East andAfrica. Prices will increase by:€150 /tonne for powder polyesterresins; €190 /tonne for polyolresins; €80 /tonne for solvent-based alkyds, polyester resinsand acrylic for coatings; by €140/tonne for phenolic resins; and by€70 /tonne for epoxy resins.Reichhold will also increase theprice of its Epotuf epoxy resins inN America by $0.07-0.1 /lb from15 Apr 2003.

Chimie Hebdo, 7 Apr 2003, (209), 9 (inFrench)

Increase in polyester prices fromUCB and Bayer

With effect from 15 Apr 2003UCB is to increase the price ofits polyester resins for powderpaints (Crylcoat and Alftalat) inEurope by €0.14-0.18 /kgdepending on the product. In theUS Bayer will raise the price ofits Rucote polyester resins by$0.08 /lb from 1 Mar 2003.

Chimie Hebdo, 7 Apr 2003, (209), 10 (inFrench)

Akzo Nobel forecasts lower resultsfor 1Q 2003

Akzo Nobel is predicting a lowerresult in 1Q 2003 than in 1Q2002 and analysts are predictinga 27% fall in profit per share.Reduced turnover inpharmaceuticals and extra costsaving measures are the mainreason for the downturn. A fall inresults of 10-20% is forecast for2003 as a whole. Thepharmaceutical operations whichhave performed disappointinglywill be subjected to cost savingmeasures in order to preventAkzo Nobel’s debt situationweakening further. The fall off inturnover for the pharmaceuticalssector was mainly due toincreased competition from non-patented drugs for Akzo’s majorselling products, a contraceptive

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