Asian Paints consolidated profits from operations for Q2 rises by 8%
THE net profit for the September quarter at Rs 506 crore. The company had reported Rs 593.66 crore during the same quarter of last year, which included profit on account of discontinued operations of Rs 67.47 crore. Hence, the numbers cannot be compared.
Asian Paints, reported a increase of 8.5% in its consolidated revenue which rose to Rs 4,639 crore against Rs 4,265.3 crore (ex-excise duty) that was posted during the corresponding quarter of last year. At an operating level, the earnings before interest, taxes, depreciation and amortization (EBITDA) fell to Rs 784 crore against Rs 801.2 crore. The operating margin came in at 16.9 percent against 18.8 percent year on year.
The company further said that decorative business segment in India saw a low double-digit volume growth.
“The decorative business segment in India registered a low double-digit volume growth. Raw material prices continued to move up further which has led us to take a price increase from Oct. 2018. In the international operations, business continued to remain challenging with issues like forex unavailability, high inflation and difficult economic conditions impacting performance. Both the segments in the home improvement category business, performed well in the quarter,” KBS Anand, Managing Director and CEO at Asian Paints said in a statement.
However, due to higher input cost, gross margins contracted 148bps yoy. EBITDA was down 2.1% yoy to Rs784.2cr, 11.5% lower than the estimates. EBITDA margin contracted 188bps yoy to 16.9% (estimate of 18.8%). Further, higher interest outgo led to a 3.8% yoy decline in PAT to Rs506.0cr, 12.7% lower than the estimate.
On the other hand, home improvement segment reported strong growth of 20.2% in the revenue, however, the EBIT loss of the segment widened to Rs12.5cr during the quarter (against EBIT loss of 9.8cr in Q2FY18).
Higher raw material costs (primarily due to higher crude and currency volatility) led to gross margin contraction of 148bps yoy to 39.8%. APNT's raw material basket witnessed ~5% inflation in Q2FY19 over Q1FY19. In order to pass on the price increase, company has taken price hike of ~2.35% w.e.f October 1, 2018 (similar trend witnessed in Kansai Nerolac commentary as well). The company has announced an interim dividend of Rs2.85/share (285%).
In an Conference call with analyst and reporters the company indicated that the demand environment for decorative paints remained broadly similar to Q1FY19, with no signs of an uptick.
- Further, share of low realization products (distempers and wall putty) rose in the quarter. The company believes that this increase was possibly driven by channel stocking for the festive season and potential market share gains from the unorganized segment.
- Hence, despite ~3.4% cumulative price increases taken over the last one year, domestic decorative sales growth at 9% was higher than volume growth (low double digits).
- The demand environment in east India continued to witness better growth vs. rest of the country. The southern market started showing signs of recovery, however, due to the flood, Kerala continued to see muted demand. Further, the delayed festive season also impacted Q2FY19 performance.
- Company has undertaken price hike w.e.f October 1, 2019, and intends to take another price increase in Q3FY19 to pass on the input cost inflation witnessed since then.
- APNT has spent ~Rs880cr capex on standalone basis in H1FY19 and it has guided for Rs1,000cr capex for the full year. Out of this, Rs800cr would be towards greenfield facilities in Mysuru and Vishakhapatnam.
- First phase of the Mysuru plant (300,000 MT) was commissioned in Sep-18 and company intends to commission the first phase of its Vishakhapatnam plant (300,000 MT) in 4QFY19E.
- Though the Mysuru and Vishakhapatnam facilities would drive savings in freight costs; such benefits would fully accrue only in FY20E. Additionally, due to higher automation, these facilities would also have a lower cost of production. Company indicated that it is seeking certain tax benefits (mainly interest-free loans) at its Mysuru facility and would share the details shortly.
Kansai Nerolac Paints Ltd shows 11% net sales growth for Q2
KANSAI NEROLAC PAINTS LIMITED (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the second quarter of financial year 2018-19. For the quarter, the company declared net sales of Rs. 1286 Crores, a growth of 10.7 % over the corresponding quarter. For the half year ended 30th September the company declared net sales of Rs. 2653 Crores a growth of 14.1 % over the corresponding period last year.
EBIDTA was Rs 195 crores down by 11.9 % over the same quarter of the previous year. For the half year EBITDA was at Rs. 415 Crores down by 3.1 % over the corresponding period last year.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, “During the quarter demand was dampened. Factors like GST rate changes in July leading to destocking by dealers, lingering monsoons over many parts of India and a delayed festival season affected demand for both Decorative and Industrial customers. Despite these conditions the company has had good growth. As was being seen in earlier quarters, uncertainty on the currency front and crude oil prices was more pronounced this quarter as well. This resulted in significant increase in input costs which impacted the bottom-line. KNPL has announced price increase in Decorative from 1stOctober and has taken price increases in Industrial as well, effect of which will be seen in subsequent quarters. Industrial customers are being approached for further price increase to compensate for high inflation. The company expects the growth momentum to be good in Decorative but subdued for Industrial in the near future. It is hoped that the rupee and crude oil will stabilize at the current levels. Any adverse change will put further pressure on margins. ”
Outlook of Indian Paint Industry
The size of domestic paint industry is estimated at Rs.47000 crores as of Mar 2018. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry.
Kansai Nerolac Paints dedicates an iconic Durga Maa mural
To mark Nerolac Shera Para Shera Pujo
DURGA Puja is undoubtedly one of the biggest festivals in India and celebrated with much fervour. Kansai Nerolac Paints Ltd. (KNPL), one of the leading paint companies in India and pioneers of 'Healthy Home Paints' had conducted a much successful and popular pujo activity, Nerolac Shera Para Shera Pujo across Kolkata and other cities of West Bengal. Kansai Nerolac had unveiled a large Durga Maa mural in Kolkata on 8th October 2018 for commemorating this year's pujo festivities! The event was graced by Bengali actor Rituparna Sengupta, Ram Mehrotra, VP, Sales & Marketing, India & Nepal at Kansai Nerolac and Tapas De, General Manager at Hotel The Peerless Inn.
Kansai Nerolac has effectively engaged with its customers through the product portfolio and customer awareness campaigns promoting transformation and environmental sensitivity over the years. The Durga Maa mural signifies the same vision of transformation and beautifying Kolkata in its fourth consecutive year celebration of Nerolac Shera Para Shera Pujo.
The magnificent portraiture, conceptualized by FCB Ulka and brought to life by artist Tushar Kamble, is inspired by the rich tradition of Bengal and local folklore, currently adorns the walls at Peerless Inn, Taltala. Depicting the homecoming of Maa Durga, the elements used in the visual identity illustrate the grand celebrations that happen during pujo, when men and women rhythmically dance to the beats of the dhak along with traditional dhanuchi dance competitions. The mural also demonstrates the lions - vahan (vehicle) of Maa Durga. Flaunting the traditional Bengali flavour, the art is a splendid amalgamation of the pujo festivities and the power that Maa Durga epitomizes.
Speaking on the unveiling, Mr Ram Mehrotra, VP – Sales & Marketing India & Nepal for Kansai Nerolac Paints Ltd , said, “Bengal has always been an important market for us. Inspired by the cultural spirit and essence of the state, we have undertaken several activities to engage with our customers. In the past, we have launched 'Shades of Bengal' – a coffee table book that unravels various shades and spirituality of Bengal.
The Durga Maa mural is yet another attempt to connect with our Bengali audience by adding colour and happiness to their lives on an auspicious occasion like this. The idea behind painting the mural at Peerless Inn was, if put simply, to make Durga Maa stay back, even after Durga Pujo concludes – a commemoration from Nerolac as giving joy back to the city of joy.”
He added, “Nerolac, along with extensive support from paint trade dealers over the years, has continued to flourish. As a part of this year's initiative, we also organized a community-building initiative called 'Paintdaan', wherein Nerolac dealers across West Bengal donated minimum one litre of paint towards the marvellous mural.”
Shalimar Paints plans Rs. 200 cr, rights issue to restart Nashik unit
SHALIMAR PAINTS is planning to raise ₹200 crore via rights issue. A part of the proceeds will go as capex to reestablish its Nashik unit, while a major portion will be used as working capital. Its board has recently approved a rights issue of not exceeding ₹240 crore.
According to Mr Ashok Kumar Gupta, Vice Chairman, Shalimar Paints, an estimated ₹40-45 crore will be spent on the Nashik factory which is expected to have an annual capacity of 25,000 kilolitres and is likely to be fully operational by April-May 2019. The factory was partially gutted in 2016.
He also said that the revival of operations at the unit is central to the company's turnaround scheme that includes shoring up capacity, focus on the West India market, and also a gain market share. The company reported a turnover of ₹123 crore and a net loss of ₹25 crore for the first six months of this fiscal (April to September). “Proceeds of the rights issue is expected by December.By April-May next year, the Nashik unit should be fully operational. This should give our operations a leg-up,” said Mr Gupta
“With higher capacity and better utilisation, we should report cash profits by Fy20,” he added.
Shalimar Paints, which moved its registered office from Kolkata to Gurgaon a few years ago, currently has two operational units— in Chennai (Tamil Nadu) and Noida (Uttar Pradesh)— with a combined capacity of 50,000 KL per annum (25,000 KL each). Operations at Howrah (West Bengal) remain suspended since a fire broke out in 2014. The company is awaiting clearances from the West Bengal government before construction work resumes. “Capacity and other details regarding the unit are being worked out,” said Gupta.
With input cost pressure mounting due to because of fluctuating crude prices, Shalimar Paints is looking to shore up the portfolio of water-based paints.
Q2 net loss at Rs 10 cr
Meanwhile, Shalimar Paints reported widening of standalone net loss to Rs 10.06 crore for the second quarter ended September 30, 2018. The company had posted a net loss of Rs 9.80 crore in the July-September period of the last fiscal, Shalimar Paints said in a BSE filing.
Total income from operations was up 1.46 percent to Rs 72.13 crore as against Rs 71.09 crore in the year-ago period. Shalimar Paints' total expenses during the quarter were down 0.19 percent to Rs 86.96 crore as against Rs 87.13 crore in the year-ago period.
Berger Paints' Q2 standalone profit dips to Rs. 102 cr
BERGER PAINTS reported a near 4 per cent decline in standalone net profit to Rs. 102 crore for Q2 FY19, against Rs. 106 crore in the year-ago period. Revenue for quarter increased 16 per cent YoY to Rs. 1330 crore.
According to Abhijit Roy, MD and CEO, Berger Paints had reported a Rs. 6 crore dividend income from Nepal operations in Q2 FY18 (added to other income), which ultimately had an impact on the operating profit.
This apart, margin pressures remain, because of which the company is mulling a 1.75 per cent price hike in decorative paints, effective December 1.“Despite a 16 per cent revenue increase, standalone profits remained subdued. Moreover, raw material cost, too, has gone up,” Roy said.
During the quarter, cost of raw material consumed increased by 48 per cent, year-on-year, to ₹820 crore. On a consolidated basis, Berger reported a 5 per cent increase in net profit to ₹117 crore for Q2FY19; as against the ₹111 crore in corresponding quarter last fiscal. The consolidated revenue from operations grew 16 per cent, year-on-year, to ₹1490 crore.
According to an investor presentation given out by the company, decorative business showed improved performance over the corresponding quarter. General Industrial/Automotive business delivered another quarter of robust growth, even though price increases were delayed. Industrial business saw a robust growth too.
Company's wholly owned subsidiary Bolix S.A, Poland showed robust top line performance and profitability over corresponding quarter. It's wholly owned subsidiary BJN Nepal showed steady growth in topline and profitability. Berger's newly acquired subsidiary Saboo Coatings Private Limited showed improved performance for the quarter.
Going forward berger has said the industry outlook shows that the decorative paint segment expected to show some improvement on the back of reduction in GST rate. Automotive segment expected to sustain its growth performance. However volatility in crude oil prices, further rise in other RM prices and any adverse movement in exchange rates continue to remain potential concerns.
Akzo Nobel Q2 revenue increases eight per cent
AKZO NOBEL India had posted a net profit of Rs 38.65 crore for the quarter ended September 30, 2018 the company has said in a BSE filing. Net profit in the year-ago-period stood at ₹39 crore. During the quarter, the company's revenue from operations saw an over 8 per cent increase to ₹714 crore, as against ₹659 crore in Q2FY19.
According to a release issued by the company, net profit for the quarter reflected a higher tax incidence compared to the corresponding quarter of last fiscal.
“Margins were impacted by increase in raw material cost, depreciation of rupee and unfavourable sales mix,” Rajiv Rajgopal, Managing Director, AkzoNobel India, said.
Berger Paints unites with Paints and Coatings Skill Council & NSDC to train talents for India Skills Competition 2018
BERGER Paints India Ltd., the second largest paint company has recently associated with Paints and coatings Skill Council and National Skill Development Corporation (NSDC) to train six regional champions from the India Skills Competition in the painting and decorating category. These champions hail from Kerala, Chandigarh, Haryana & Bihar. The India Skills Competition was organized at Aerocity in Delhi from 2 Oct to 5 October. The winner was Ms Priya Gaira from Chandigarh, Mr Sahil Kapil also from Chandigarh was the runner up and Mr Kartavya Saini from Haryana was placed third. The first two will represent India in the Paint and Decorating category in the world skills competition to be held in Kazan, Russia in 2019
NSDC organizes the lndia Skills Competition every two years in association with state governments and industries. This year more than 400 young talents across 27 states and union territories competed in 46 skills, 10 traditional skills and 4 demo skills. The winners received a cash prize along with an opportunity to represent India at World Skills Competition, in Kazan, Russia in August in 2019. Berger Paints will also further train the winners, help in upscaling their skills, and prepare them for WorldSkills Competition. Berger Paints in association with Paints and coatings skill council and NSDC came forward with an objective to promote young talents of the nation by not only honing their skills but also amplifying their employment quotient. Berger Paints organized training classes at Karigari Bhawan in Kolkata.
Berger Paints has always been committed to dispense its responsibility towards the cause of the society through a variety of philanthropic and benevolent initiatives benefiting the society. Speaking on this initiative Mr. Abhijit Roy, MD & CEO of Berger Paints India Limited said, "Berger Paints has always been a socially responsible corporate entity and our basic objective is to look for an overall sustainable development. The idea behind such an association is to encourage the youth of our nation and provide platforms to represent skills at an international level along with raising employment quotient for those individuals. We are grateful to the government of India to provide us an opportunity to be a part of such noble initiative".
Jotun boosts presence in Middle East market
Jotun, a leading global supplier of paints and coatings, has announced it will provide its products and services to 12 of the top 20 tallest buildings within the Middle East over the next two years.
A leading player in the region, Jotun, will be exhibiting at Council on Tall Buildings and Urban Habitat (CTBUH) Middle East conference opening this week in the emirates.
The CTBUH conference runs from October 20 to 25 in Dubai and Abu Dhabi, and is a key date in the calendar of many in the construction and architecture sectors, as the world's leading resource for professionals focused on the inception, design, construction, and operation of tall buildings and future cities, with Jotun being a gold sponsor of the event.
Jotun's Green Building Solutions provides paints and coatings across a full range of building needs – with specification support for the planning stage and global availability for construction stage – including architectural powder coatings; anti-carbonation coatings for concrete; decorative paints; floor coatings; intumescent coatings for cellulosic fire protection and protective coatings.
As well as this, Jotun offers an online green building guide, making the specification process as easy as possible.
This includes an easily accessible overview of all the green building products and guide specifications, along with all the needed documentation (including Environmental Product Declarations (EPDs) where available), said a statement from the company.
GBS provides a single global source for customers looking for an easy way to increase points for green building standards, including Leadership in Energy and Environmental Design (Leed) and Building Research Establishment Environmental Assessment Method (Breean).
The GBS products work together to make it simple to attain Leed certification, aided by the vast number of EPDs that Jotun provides for its Green Building Solutions.
Henriette Eggen, Jotun's global marketing manager, infrastructure, said: "We are delighted to be exhibiting our Green Building Solutions and the online Green Building Guide to those attending the CTBUH Middle East conference this year, and to the growing green building industry."
"We have worked hard to ensure we are able to provide an extensive range of green building products and the most efficient type of Environmental Protection Declarations (EPDs) for our customers worldwide: third-party verified Product-specific Type III EPDs," she stated.
"This ensures our customers get the most points value from their paints and coatings possible, all from one supplier," stated Eggen.
"We are proud to be a trusted partner and source of paints and coatings in the global construction industry, whether it be residential or public, industrial or civic buildings. We look forward to showcasing our range of GBS to all at CTBUH Middle East conference this year," he added.-TradeArabia News Service
BASF India Limited announces Q2 2018-19 Results
BASF India Limited registered sales of Rs. 16,694 million for the quarter ended September 30, 2018, as compared to Rs. 14,332 million in the corresponding quarter of the previous year, representing an increase of 16%.
The Company reported Profit Before Tax (before exceptional items) of Rs. 119 million, as compared to Profit Before Tax (before exceptional items) of Rs. 420 million in the corresponding quarter of the previous year.
In order to further develop its global pigment business, the Company's Board of Directors approved the transfer of its pigments business to a separate legal entity BASF Colors & Effects India Private Limited (BCEIPL), a 100% subsidiary of BASF Colors & Effects GmbH, effective January 1, 2019, for a consideration to be determined by an Independent Valuer.
The new legal entity will be able to operate the pigments business with more flexibility, higher speed and increased independence and will help to fully leverage the growth potential out of the emerging Asian region.
“Improved sales from our Agricultural Solutions business and our Dahej site contributed to the revenue growth. Rising input cost and currency depreciation impacted profitability for the quarter. The transfer of the pigments business will enable us to move forward with a streamlined business model and serve customers better,” said Dr. Raman Ramachandran, Chairman and Managing Director, BASF India Limited.
For the half-year ended September 30, 2018, on a comparable basis the Company registered sales of Rs. 32,894 million, as compared to Rs. 30,797 million for the corresponding period of the previous year, an increase of 12%*. Profit Before Tax (before exceptional items) stood at Rs. 470 million for the half year ended September 30, 2018 as compared to Profit Before Tax (before exceptional items) of Rs. 427 million for the corresponding period of the previous year. Profit After Tax (after exceptional items) stood at Rs. 338 million for the half year ended September 30, 2018, as compared to Profit After Tax (after exceptional items) of Rs. 1,736 million posted in the corresponding period of the previous year.
*As per Indian Accounting Standard 115 & Indian Accounting Standard 18 on Revenue and Schedule III of the Companies Act, 2013, Revenue from Operations until the period ended June 30, 2017 and other comparative periods includes excise duty. Revenue from Operations has been adjusted for GST/Excise duty for the relevant period(s) for more coherent comparison.
Clariant Q2, 2018-19 profit up by 16.1%
CLARIANT Chemicals (India) Limited, India's leading specialty chemicals producer, reported sales of Rs. 256 crore, for the quarter ended September 30, 2018, as against Rs. 244 crore on comparable basis for the corresponding quarter of the previous year.
The Board has declared an Interim Dividend of Rs. 5/- per share (50%) for financial year 2018-19. The Company reported sales of Rs. 521 crore, in the first half of 2018-19, as against Rs. 502 * crore for the corresponding half of the previous year.
“The Company's initiatives to upgrade its product portfolio is paying dividends, despite the uncertainties like the depreciating rupee and a surge in crude oil prices,” explained Adnan Ahmad, VC&MD Clariant Chemicals (India) Limited.
Clariant and Neste join forces to develop sustainable industrial solutions
CLARIANT, a world leader in specialty chemicals, has signed an agreement for a new partnership with Neste, the world's leading provider of sustainable renewable diesel and an expert in delivering drop-in renewable chemical solutions. By using Neste's renewable hydrocarbons in its product development, Clariant increases the number of products in its portfolio that are derived from renewable raw materials. As a result, sustainable solutions become more accessible to a variety of industries, including adhesives, plastics and coatings.
Christian Kohlpaintner, Member of Clariant's Executive Committee, comments: “Sustainability is one of Clariant's five strategic pillars. This new partnership with Neste is a significant milestone in providing a sustainable future for Clariant and its customers. It is an exemplary cooperation because it provides a competitive advantage for our customers while making a sustainable impact across the value chain.”
Clariant's Licocene performance polymers and waxes are already highly-valued by the adhesives, plastics and coatings industry for their ability to offer superior sustainability and performance in use. Through the partnership with Neste, Clariant can offer sustainable polyolefin solutions derived from renewable hydrocarbons.
Peter Vanacker, President & CEO, Neste, comments: “Combining Clariant's in-depth knowhow in the varying applications of adhesives, plastics and coatings, and Neste's extensive knowledge and experience in working with bio-based materials to produce a variety of drop-in renewable solutions, enables both companies to develop their sustainable material offering to provide maximum added value not only to sustainable brands in varying industries, but also to their customers.”
Gloria Glang, Vice President, Head of Global Advanced Surface Solutions Business, Clariant, continues: “For the society, our environment, and future generations, it is our responsibility to improve sustainability performance and reduce our carbon footprint and dependency on crude oil. As a result of Clariant's partnership with Neste, we can progress our goal to become a true sustainable solution provider in the additive market, offering our customers products and solutions that can make a positive contribution towards their targets and enhance end applications.”
The raw materials, C2/C3 monomers, are derived from Neste's renewable hydrocarbons produced from 100% renewable feedstock that originates from waste and residue raw materials, such as used cooking oil, and renewable vegetable oils. These C2 and C3 monomers provide drop-in replacements for those currently used by Clariant to create advanced polyolefin solutions for a wide range of applications.
Nippon Paint launches coil coating joint innovation center with domestic market leader
FROM October 18 to 19, Nippon Paint China (Nippon Paint) took part in the 40th anniversary of the establishment of Shandong Wiskind Ltd (Wiskind) and the Future Building Development Forum in Qingdao, during which Wiskind held a signing and launching ceremony, announcing the establishment of Nippon Paint-Wiskind joint innovation center, in the coil coatings industry.
In the new joint innovation center, Nippon Paint and Wiskind, a domestic construction market leader in manufacturing and pre-coated metal (PCM) trading and PCM application products, will cooperate closely along a full innovation process. Both companies collaborate on identifying business opportunities, developing advanced technologies, market promotion with intentions of commercial success. The center will be a platform for integrating value chain players, and actively participate in the innovation eco-system involving coating manufacturers, coil producers, distributors, design institutes, project owners and contractors. The center will provide high value-added solutions for customers in the construction industry.
Guests and representatives of Nippon Paint and Wiskind at the signing and launch ceremony in Qingdao, Shandong Province during the event Photo: Courtesy of Nippon Paint
Hong Jang, the chief technology officer of Nipsea Group, parent company of Nippon Paint China, and president of the coil coating business of Nipsea Group, and Wei Longzhu, president of Wiskind, attended the signing and launching ceremony.
Hong said at the event that nowadays in the megatrend of innovation, the industrial value chain becomes more and more sophisticated and the traditional single-organization innovation mode faces huge challenges.
"We must take the approach of customer-centric open innovation and achieve multiple victories by collaborating with partners along with the entire value chain, even cross-industry or cross-discipline innovation," he said.
Additionally, this cooperation between Nippon paint and Wiskind will integrate the resources, experience and expertise from both sides in the construction PCM industry to carry out a joint innovation project, developing tailored products to best address the customer needs in the targeted market segments thus creating high value solutions for customers.
Wei said that after many years of market development in China, customer needs in the PCM industry have changed, requiring suppliers to provide more comprehensive, better targeted and higher technology solutions.
"The cooperation between Wiskind and Nippon Paint will open up a new chapter in the PCM industry," he said, noting that he has high expectations that through this cooperation, high-value-added products will be developed and delivered to customers in the marketplace.
The establishment of the joint innovation center is not only the integration of resources of both sides, but also the starting point of a win-win cooperation. In the future, the company will continue to innovate, make full use of the resource platform, create better products and provide more considerate services to create an integrated, efficient and oriented enterprise, so to play its dual role and contribute to more customers and partners.
BCF announces finalists for 2018 Awards
THE British Coatings Federation (BCF) has revealed the finalists for its annual awards ceremony. Now in their ninth year, the BCF Awards celebrate success in the coatings, wall coverings and printing inks industry and showcase the achievements of BCF member companies and individuals.
BCF Chief Executive Tom Bowtell commented, “I would like to thank this year's entrants and send congratulations to everyone shortlisted. Each year, the BCF Awards get bigger and the judging more competitive, and I look forward to announcing the winners in November.”
Finalists for the Sustainable Innovation Award (sponsored by Tradebe) include AkzoNobel Decorative Paints, Inktech, PPG, Sun Chemical (compostable inks), and Sun Chemical (renewable inks).
Finalists for the Customer Service Award (sponsored by HermexFX) include Valspar, PPG, Dulux Decorator Centre (AkzoNobel), HMG Paints, Fujichem Sonneborn, and Trimite Global Coatings.
The Excellence in Training Award finalists include PPG, U-POL, Crown Paints and Dulux Academy. This award is sponsored by Cogent Skills.
The Young Leader of the Year Award finalists include Crown Paints – Kathryn Tormay, U-POL – Kerry McLoughlin, AkzoNobel – Alex Sashenkov, AkzoNobel – Kirsty Woodbine, Inktech – Richard Duckworth, and Fujichem Sonneborn – Altay Erdogan. Fenton Packaging sponsors this award.
Finalists for the Corporate Social Responsibility Award, which is sponsored by Merck, include PPG, AkzoNobel, Seagulls Paints, Sudarshan Chemical Industries, and Cornelius Group.
Finalists for the Student of the Year Award, sponsored by Synthomer, include Sarah Baggaley (Thomas Swann), Kieran Parker (Whitford) and Gordon Hope (AkzoNobel).
The Coatings Care Overall Best Performer Award finalists include Teal & Mackrill, Hull; Pulse Printing Products, Wick; Farrow & Ball, Wimborne; Crown Paints, Darwen; Crown Paints, Hull; and HMG Paints, Manchester.
Finalists for the Coatings Care Progress Award include Tor Coatings, Chester-le-Street; Firwood Paint, Bolton; Flint Group, Ruabon; PPG Architectural, Birstall; Steyport, Blackburn; and Fujichem Sonneborn, Chesterfield.
The winners of the BCF Awards will be announced on Thursday, Nov. 15, at the Mottram Hall in Cheshire. More information on the finalists and details on the event can be found at www.coatings.org.uk/bcfawards.
Stahl opens first Center of Excellence for Powder Coatings in Barcelona
STAHL, the leading company in surface treatment and coating solutions for a wide variety of materials, opened its first Center of Excellence for Powder Coatings in L'Hospitalet de Llobregat, Barcelona, Spain. With this new Center of Excellence, Stahl strengthens its position as technology leader for environmentally cautious UV and ULB powder coatings for heat-sensitive substrates for interior and architectural applications. The strategic location of this knowledge and testing center enables Stahl to accelerate its services for the main European markets.
The Center of Excellence for Powder Coatings is the result of the takeover of the R&D facilities of OEM NuTech, an Australian-based expert in the development of powder-coating products and processes specific for heat-sensitive materials, in May this year. Stahl and OEM NuTech have been working together intensively in a joint venture since July 2015. During this cooperation, they have created a unique system for the development of high-quality and eco-friendly powder coatings.
Innovative, VOC-free powder coatings
“Our new Center of Excellence for Powder Coatings enables us to contribute even more substantially to meeting the increasing demand from the market by offering an innovative, sustainable and efficient solution without using VOCs,” says Uwe Siebgens, Stahl's Group Director for Performance Coatings & Polymers. “The facility allows us to work side-by-side with our partners to continuously optimize existing solutions and develop new possibilities. Together with the know-how of OEM NuTech and real-scale production facilities in the Stahl Application Center for Powder Coatings in Australia, we can run trials and show our solutions to our clients.”
L'Hospitalet de Llobregat
With the new facility in L'Hospitalet de Llobregat, Stahl has eight Centers of Excellence worldwide where its experts work side-by-side with partners to develop and test new applications for specific areas and industries. The Center of Excellence for Powder Coatings is located at one of Stahl's two manufacturing sites in Barcelona.
IPPIC proposal to be considered by UN Transport of Dangerous Goods Committee
A proposal developed by the International Paint and Printing Ink Council (IPPIC) will be considered at the upcoming meeting of the United Nations' Subcommittee of Experts on the Transport of Dangerous Goods (UNSCETDG) from Nov. 26 – Dec. 4 in Geneva, Switzerland. The proposal, which ACA helped craft, seeks to alleviate technical name requirements for environmentally hazardous substances.
Paints and printing inks are high volume commodities in the global marketplace. With the move toward water-based formulations (estimated to represent some 50 percent of liquid products overall) and other non-solvent-borne products such as powder coatings, a high percentage of these goods is now regulated as Class 9 due to environmental hazards. These products are transported under entries UN 3077 or UN 3082 of the Dangerous Goods List (“Environmentally Hazardous Substance, Solid/Liquid, N.O.S.”) accordingly.
This classification creates many issues related to documentation and marking, such as a lack of clear information on the exact nature of the dangerous goods — which can hinder the task of emergency responders and cause consignments to be delayed or stopped pending clarification — as well as practical difficulties in appending long, and often incomprehensible, technical names to the proper shipping name. IPPIC has been working to identify solutions that would mitigate these problems and make the regulatory requirements more commensurate with the hazard.
To ensure consistency between national regulatory systems governing every mode for the transport of dangerous goods (TDG), the United Nations established appropriate harmonization mechanisms, which occur biennially during the meeting of the UNSCETDG. Every four meetings (every two years), the Subcommittee compiles meeting proceedings into an updated version of the UN Model Regulations — recommendations on the transport of dangerous goods. The model regulations are used by many countries as a basis for the country's TDG regulations. ACA, through its Transport Committee and IPPIC, is proactively engaged in efforts to harmonize the model regulations to ensure efficiency and cost-effectiveness for cross-border and multi-modal shipments of paint and allied products.
Rather than uncertainty concerning the ability to use generic names as technical names, IPPIC is proposing a special provision that enables the UNSCETDG to identify names within the Model Regulations that are considered to provide clear and valuable information to transport handlers and emergency responders, and to permit their use as technical names.
IPPIC's proposal suggests that the new special provision can be allocated to Dangerous Goods List entries (existing or new) at any time as required, based on a proposal to the UNSCETDG. ACA and IPPIC maintain that this avoids both the need to establish a complete list immediately, as well as the risk of inadvertently allowing names that would not be appropriate in the context of UN 3077 or UN 3082.
ACA staff will be attending the upcoming UNSCETDG meeting in Geneva where the IPPIC proposal will be considered.
AkzoNobel acquires Malaysia's Colourland Paints business
AKZONOBEL has strengthened its business in Asia by acquiring (100% shares in) Colourland Paints Sdn Bhd and Colourland Paints (Marketing) Sdn Bhd – both referred to as “Colourland Paints” – a home-grown paints and coatings manufacturer with wide distribution across Malaysia.
The acquisition enhances AkzoNobel's global portfolio with a much-loved local brand. It also means the company will be able to provide an improved customer experience through an expanded product offering and distribution network. Financial details were not disclosed.
“As a leading global paints and coatings company, we are proud to add the well-established brands and expertise of Colourland Paints to our business,” said AkzoNobel CEO Thierry Vanlancker. “We are looking forward to unlocking the value it will bring as we accelerate our Winning together: 15 by 20 strategy and increase our footprint in this fast-growing region.”
Added Oscar Wezenbeek, Managing Director of AkzoNobel Decorative Paints in the region: “This deal marks another milestone in ensuring that we continue to deliver the best brand and customer experience. The combination of global and local expertise is also an excellent strategic fit and will accelerate our development as we further build on our strong market position in Malaysia.”
The transaction includes all relevant technologies, patents, trademarks and assets of Colourland.
Chromaflo Technologies acquires CECOPLAS Colorants
CHROMAFLO Technologies, the premier global provider of colorant technology solutions has announced the acquisition of Central de Colores Plásticos' (CECOPLAS) colorants business. Chromaflo Technologies and CECOPLAS have come to a purchase agreement whereby Chromaflo Technologies will acquire CECOPLAS' colorants with production in Querétaro, Mexico. The business acquisition is effective November 1, 2018.
“The acquisition of this business from CECOPLAS is consistent with our efforts in supplying quality colorants and additives for high performance thermoset products in the Americas' markets and beyond,” said Scott Becker, President and CEO of Chromaflo Technologies. “The addition of CECOPLAS will provide us an opportunity to serve the Mexican market to a more effective degree.”
Production will remain at the current location in Mexico. This will enhance Chromaflo Technologies' North American manufacturing facilities.
“With any merger or acquisition, our number-one goal is to assure continuity of supply while building stronger relationships to enable us to meet and exceed customers' expectations,” said Larry Haines, Vice President of Mergers and Acquisitions of Chromaflo Technologies. “We are confident that our acquisition of CECOPLAS will add to our mission and create an improved service level for existing clients.”