Industry News

Excerpt: SHAH RUKH KHAN, the face of many famous brands and endorsements has launched and introduced a environmental- friendly initiative called 'U Can' from Kansai Paints Nepal Pvt. Ltd,in Nepal this year

Shah Rukh Khan launches 'U Can' campaign in Nepal

Shah Rukh Khan during the brand promotion of Kansai Nerolac's 'U-can' at Nepal

SHAH RUKH KHAN, the face of many famous brands and endorsements has launched and introduced a environmental- friendly initiative called 'U Can' from Kansai Paints Nepal Pvt. Ltd,in Nepal this year. He has been associated with Nerolac Paints for quite some time now and hence for their new initiative, the actor immediately hopped on to promote it. Nerolac has launched a one of kind initiative U CAN to encourage people to convert used Nerolac paint cans into beautiful flower pots, adding to their house décor and environment.

The users can simply log on to the Facebook page of Kansai Nerolac Paints Nepal and send a request to receive the decorative wrap around sheet-sand the process of how to beautify their used Nerolac paint cans via courier. The consumers can then post the images of the revamped Nerolac cans on the Facebook Page. The best five images, chosen over a period of 60 days, will be given a gratification and shall be posted on the 'wall of fame' on the official page. Present at this occasion were Mr. H.M. Bharuka, Chairman – Kansai Paints Nepal Pvt. Ltd & Managing Director of Kansai Nerolac, Director Mr. Anuj Jain, Mr. Ashok Vaid & Jeevan

Aggarwal, Directors of Kansai Paints Nepal Pvt. Ltd. and Shah Rukh Khan, Kansai Nerolac, the brand ambassador.

Talking about the initiative, Shah Rukh said, “I am immensely proud to be associated with a brand like Kansai Nerolac who are completely aware of their responsibility towards a green tomorrow, be it with their product innovations like Low VOC paints or their consumer initiatives like U-can, which we just launched in Nepal. The U-can initiative is such a simple yet fun activity. Everybody can participate in such an initiative and be proud of being eco-friendly in some way at least.”

Clariant celebrates 10th anniversary of ColorForward with Customer Event at Frankfurt Innovation Center

CLARIANT, a world leader in specialty chemicals, recently celebrated the 10th anniversary of its ColorForward color forecasting guide with a day-long customer event at the Clariant Innovation Center in Frankfurt, Germany. More than 50 key customers from around the world are attending.

The ColorForward trend analysis and color design tool has been released annually since 2006 to help plastic product designers and marketing professionals make more informed color choices. Matthias Brommer, Global Head of Marketing for the Clariant Masterbatches business unit, in his welcome to the guests, recalls how ColorForward came into being. After many years of working with product marketers and brand owners to make their products and packaging more successful in the market, he states, “it was a simple step to extend the scope of our services … and to begin helping them understand better what colors mean to consumers, what drives their buying decisions, and – in short – help them through the critical process of deciding what color or colors to use.”

By seeking to engage designers and marketers in a creative and consultative way, he continues, the ColorForward concept is “very closely aligned with the overall Clariant corporate strategy that calls for, among other things, adding value for customers and fostering innovation.”

It is fitting, then, that the ColorForward 10th anniversary is being celebrated at the Clariant Innovation Center (CIC). The CIC building in the Industriepark Höchst, near Clariant's largest manufacturing site in Frankfurt, was founded to empower R&D innovation. The 36,000 square meter center employs around 500 and houses competence centers in chemical research and process technology as well as application laboratories for several Business Units and state-of- the art analytical laboratories. The modern, open-plan building features a mix of open workspaces, offices and laboratories to foster the exchange of ideas among employees as well as with visiting partners from industry and academia.

A highlight of the anniversary event is a presentation on trend watching and innovation by Dr. Carl C. Rohde, a Dutch sociologist and head of Science of the Time, one of the first and most respected trend research and innovation agencies in the world.

Dr. Rohde is followed by Dr. Angelica Marson, Head of Global Innovation for the Masterbatches business unit and Maurizio Torchio, Global Head of ColorWorks, Clariant's network of design and technology centers, where the annual ColorForward guides have been created for the last 10 years. They are speaking about “The New Language in Innovation.”

The afternoon sessions feature Judith van Vliet, Designer, ColorWorks Europe/IMEA, who is reviewing the 10-year ColorForward odyssey in a presentation called “Where Inspiration and Reliability Meet: An Exciting Visual Path of 10 Years of ColorForward.”

“Today,” van Vliet, observes, “everyone seems to be into color. A lot of people are trend hunting… color hunting. But we've been doing it now for 10 years and we've gotten quite good at it. Even in the early years, the colors Clariant found were really quite good. Over the years, we have seen those color predictions validated by the fact that they are used in the marketplace… and not just in plastics product and packaging design, but other disciplines like interior design, automotive and fashion. That's an important achievement and that's why we think it is important to celebrate the 10th anniversary of ColorForward.”

VOXCO exhibits at Dubai show

VOXCO Pigments and Chemicals Pvt. Ltd. participated in recent Middle East Coating Show 2015 (ECS) which was held in Dubai from 9th to 11th March 2015.

VOXCO Pigments joined hands with its local Middle East distributor REDA Chem to exhibit its range of pigments, show- casing its High Performance Inorganic and Organic Pigments during the MECS. It received a good response from the many international visitors from around the globe; who visited VOXCO's booth and showed a keen interest in its high performance pigments. VOXCO displayed its SO resistant high performance range 2 of chrome pigments; especially designed to meet the stringent quality requirements of Industrial and Automotive coatings. The range of SO

2 resistant pigments provide excellent weather fastness, light fastness, sulphur dioxide resistance and heat stability to its users in industrial and automotive coatings application. VOXCO range of Performance Organic Pigments attracted many visitors to its booth who were impressed by its offer of providing value added manufacturing products thereby adding values to its global customers.

VOXCO participated in the show with the purpose of being closer to its end customers and for understanding the customers' needs of manufacturing a performance based coatings by using the right value added pigments manufactured by them. VOXCO's well trained, qualified and experienced Marketing and Technical team was present in the show to assist the customers to choose the right pigments for their coating formulations. VOXCO recently launched a new line of products VOXTINT range of pigment pastes which are based on high performance organic pigments, transparent iron oxide, DPP red and yellow pigments.

Voxco are into manufacturing & marketing of the complete range of Pigments – Inorganic chrome pigments, Anti- corrosive pigments, Classical organic azo pigments, Organic phthalocyanine blue and green pigments.

During the Show VOXCO awarded participation certificate to Reda sales team for their attendance in the technical training organised by VOXCO pigments in its Vapi factory, India.

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DuPont Knowledge Center in Hyderabad

receives LEED Certification for Sustainable and Environmental building strategies

DuPont, the world's leading Science Company was awarded the prestigious LEED Certification in Gold Category for the DuPont Knowledge Center (DKC) in Hyderabad, India. DKC is an integrated science and technology center that does global R&D and Application Development in agricultural, nutrition & health, bio-based industrials and advanced material sciences for India and ASEAN.

The award has been granted by the United States Green Building Council (USGBC) for Existing Buildings Operations and Maintenance (EBOM).

Ranjan Patnaik, Director, DuPont Knowledge Centre (DKC) said, “This certification stands testimony to our respect for environment. The energy-efficient design and eco-friendly maintenance features used in the center aim to 'conserve and preserve' rather than 'waste and exploit' the natural resources, offering a healthier and cleaner environment. We feel honoured to have been recognised for our environmental achievements.”

In the past year, the team at DuPont Knowledge Centre ha sconsciously employed sustainable practices in its buildings and focused on resource conservation and preservation tactics. This outstanding achievement can also be attributed to DKC's constant and innovative efforts in improving indoor air quality, using better building materials, conserving energy and reducing water consumption. Few examples of the savings include water reuse through the sewage treatment plant, solar powered lights, LED lights, motion sensors for lighting, exhaust systems and rest rooms, CFC free refrigerant, paper waste recycling and vermin compost and usage of green sealed certified chemicals for house-keeping.

A premier mark of achievement in green buildings across the globe, LEED (Leadership in Energy & Environmental Design) is a green building certification program that recognizes best-in-class building strategies and practices. LEED certified buildings are known to save money and resources and have a positive impact on the health of occupants, while promoting renewable, clean energy.

DuPont Knowledge Center (DKC), Hyderabad, was inaugurated in 2008 and operates in a 25 acre campus in IKP Knowledge Park at Genome Valley near Hyderabad. Over 400 scientists & engineers work at this center. In collaboration with over 10,000 DuPont scientists and engineers around the world, DKC is already LEED Silver certified by Indian Green Building Council (IGBC) in March 2010 for successfully achieving the Green Building Standards required under LEED India Green Building Rating system for new construction.

DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit

Axalta & APTA collaborate to open center of coating technology training in Buenos Aires

AXALTA Coating Systems, one of the leading global providers of liquid and powder coatings, and the Automotive Workshop Owners Association (APTA), an entity dedicated to educating future automotive repair professionals, opened the doors to the first Center of Coating Technology Training (CENTRE), in the Munro locality of Buenos Aires province.

This center marks the first time a company and a non-profit organization are collaborating together to offer an integral solution to the current lack of complimentary training for

2 automotive coatings professionals. APTA provided its 800 m training center space, located at Sargento Cabral 3431, and Axalta transformed it into a sophisticated color lab with a modern coating booth and a compressed air unit, as core equipment.

At CENTRE, new professionals will be trained in the most innovative materials and application systems for automotive coating techniques, the most efficient application methods, and product safety. In the future, Axalta plans to train between 400- 500 people annually, not only from Argentina but also Chile, Paraguay, and Uruguay in a joint effort to provide added value and to strengthen relationships with strategic partners.

Anuncio Testani, APTA President, emphasized his gratitude to Axalta and said, "The effort carried out represents an important advance in the formation of greater and more professionals." Testani also assured that "this was an industry need recognized by the Association for some time now and Axalta's support was key in bringing this project to life."

Marcelo Cicchini, Axalta Southern Cone General Manager and Business Director, showed his enthusiasm for the company's historic moment and said, "Today we can say that as a result of working together with an invaluable ally such as APTA, we will be able to provide a tangible solution to a real problem within our industry."

"The opening of the training center is a source of pride for us, and better yet, allows us to strengthen ties with our partners from both Argentina and neighboring countries through this initiative," Agustín París, Axalta Market head for Argentina, Chile, and Uruguay, said.

Clariant's Licocene waxes for coatings reach finals of German Business Innovation Award

CLARIANT, one of the world leaders in specialty chemicals, is a finalist in the prestigious German business innovation award, “Innovationspreis der Deutschen Wirtschaft”, category Large Company. The achievement relates to Clariant's Licocene polyolefin-based waxes, recognized for advancing

sustainability in textiles, plastics and coatings manufacturing

Shah Rukh Khan along with Mr. Anuj Jain and Mr. H M Bharukha

during the brand promotion at Nepal

and improving the environmental profile of a wide range of applications.

Licocene waxes give manufacturers the possibility to use fewer ingredients, reduce manufacturing steps, and use less resource-intensive production processes. For example in textiles, close cooperation between Clariant and German coatings and laminate specialist LACOM GmbH, has succeeded in changing energy-intensive, water-based textile coating technology to a less energy-consuming process of hot melt coating using very low amounts of Licocene additives. There are also environmental benefits for final products, such as improving the recyclability of textiles, or reducing product weight.

Licocene's ability to support more sustainable processing is particularly valued in energy-intensive sectors, such as technical textiles for mattresses, furniture and carpets for automotive and aerospace interiors. They are also used in the manufacture of masterbatches and engineering plastics, as well as in industrial coatings, and in printing inks and adhesives for packaging applications.

The award jury of leading science and business representatives also acknowledged Licocene for promoting home-grown R&D and technical processing within Germany. The product's development involved collaboration between Clariant's researchers in Höchst and researchers at the University of Hamburg, leading to the piloting and building of a full-scale production unit in Germany. Clariant continues to work closely with its customers both inside and outside of Germany to use Licocene to bring sustainability advances to the market segments. As of 2016, the company will have achieved a 50% increase in its production capacity for Licocene to support the increasing interest in the product and its extensive application possibilities.

“This accolade for Clariant reinforces the increasing importance placed on sustainability within society today. With Licocene systems users can achieve significantly higher efficiency levels, supporting efforts to address current global challenges such as the efficient use of resources and energy,” comments Oliver Kinkel, Head of Business Unit Additives, Clariant.

Clariant joins fellow finalists for the 2015 award ceremony and gala dinner on March 21, 2015 in Frankfurt am Main. This is the second occasion a Clariant development has been acclaimed by the organizers. The company's Exolit halogen- free flame retardants were in the final of the “Innovationspreis der Deutschen Wirtschaft 2012/2013”.

Evonik to increase production volume of specialty silicones for coatings in Germany & China

EVONIK strengthens its technology platform for specialty silicones with a global investment initiative. Overall, Evonik plans to invest a triple-digit-million-euro amount in the coming years and gradually increase the production volume of specialty silicones. "Evonik is one of the world's leading manufacturers of specialty silicones. With our investment initiative we want to strengthen our position as a technology leader and reach new market opportunities" says Evonik Executive Board member and Chief Operating Officer Patrik Wohlhauser.

In Essen, the company is currently putting the expansion of a plant for the production of these special products into operation. The investment for this expansion is in the double- digit-million-euro range. Increasing the production in Germany Evonik accompanied the growth of its customers in the important European market. Within the global investment initiative for specialty silicones additional production expansions in Essen are planned.

The market for specialty silicones continued to grow in recent years. This development is mainly driven by the construction, textile, coating, furniture and appliance industries. Particularly strong was the demand in Asia. Evonik responds to this positive development by expanding its site in Shanghai (China) with a new production complex for specialty silicones.

"Optimization and expansion of the global silicone platform will strengthen effectively the position of Evonik as the world leader in specialty silicones. We want to meet the demands of the different markets even better and to accompany the growth of our customers locally. We position ourselves as a long term reliable supplier and partner" says Hans-Josef Ritzert, Member of the segment management Nutrition & Care.

Specialty silicones offer an enormous wide range of applications for numerous industries. For example, as additives for plastics, specialty silicones are responsible for comfortable furniture, car seats and ergonomic mattresses. They also play an important role within the formulation of ideal insulation material for building insulation and guarantee of the highest energy efficiency of refrigerators. Other areas of application are defoaming agents, used in industries like construction, textile or plastics. Furthermore, specialty silicones are used in coatings and inks. The integrated silicone technology platform forms the backbone of significant businesses of the Evonik segments Nutrition & Care (Business Lines Comfort & Insulation, Interface & Performance, Personal Care) and Resource Efficiency (Business Line Coating Additives).

T V S D explains process maturity according to the new ISO 9001

THE final version of the revised standard for quality management systems is scheduled for release by the International Organisation for Standardisation (ISO) in autumn

  1. Many organisations have already started to address the expected changes, which are aimed at strengthening the benefits of quality management. To optimise their own processes they need to determine their status quo and identify approaches for introducing improvement. TÜV SÜD's experts provide information about how organisations can identify the maturity of their processes and initiate changes. The revised ISO 9001 offers more flexibility regarding process documentation as a part of the management system. This applies to the documentation of management, strategy and core processes as well as support processes such as maintenance and qualification of persons. For very simple processes, for example, clear verbal instructions in conjunction with training material may be sufficient. Generally, however, traceable documentation in forms such as a checklist or an electronic workflow will be required to provide guidance for various work steps. To safeguard a high level of process quality, the new ISO 9001 includes an ambitious eight-step definition of the expected degree of process maturity. The relevant quality characteristics should be available and effective at each of these eight steps to ensure that organisations implement the standard successfully and realise the benefits offered by the new standard.

“At steps one and two, organisations define the inputs required and the outputs expected from their processes and the sequence and interactions of these processes in a form such as a process map or individual process sheets," says Ulrich Wegner, Head of the Certification Body of TÜV SÜD Management Service GmbH.

"At step 3, the organisation also review the responsibilities and authorities for these processes, using tools like responsibility matrices." Once this is completed, at step four organisations are expected to identify the technological and human resources needed. "Important aspects in this context include personnel and investment planning to respond appropriately to cases such as evident fluctuations or planned market expansion", adds Wegner.

At step five of process maturity, the focus is on risk-based thinking. To this end, organisations verify that they have identified all risks relevant for the key processes. Beyond the financial risks already analysed by many companies, there are other risks including the availability of expertise among knowledge owners and specialists, or market risks caused by innovative competitors. A quality management system according to the new ISO standard identifies these risks in direct association with the processes established by an organisation. While the old ISO 9001 focused predominantly on the avoidance of risks through appropriate preventive actions, the revised version also considers chances. To identify these chances, the detail-oriented process focus should be expanded to view the whole picture, particularly including customers' expectations and the context of the organisation.

Effective process operation and control are ensured at step six. This requires organisations to have either clear instructions for simple tasks in the service sector or process- integrated solutions, e.g. an ERP system, for complex production operations. Depending on the complexity involved, this step requires fast feedback or control loops and adequate communication. At step seven, the processes are evaluated with the help of appropriate monitoring and measurement methods. These are required in cases in which technical or personnel risks or instabilities were identified and, in particular, in cases involving risks related to customer requirements. Checking at an early stage for possible signs of non-conformities with the target is recommended. After all, a high level of accuracy in measurement results is of little use if the results are available too late. At step 8, the data gained from process evaluation enable management to make a robust decision regarding the necessary improvement actions. As outlined above, the process approach of the new ISO 9001 ensures a high level of transparency and thus supports organisations in the targeted triggering and driving of the improvement process.

Evonik to invest more than 4 billion euros in R&D

STATING that “Innovations are key drivers of sustained value creation at Evonik,” Klaus Engel, Evonik's chairman of the Executive Board, reported that in fiscal year 2014, Evonik's R&D spending amounted to €413 million, an increase of 5% over the previous year (€394 million). The R&D investment ratio was 3.2% (2013: 3.1%).

“Our intention is to turn Evonik into one of the world's most innovative companies,” said Engel. “Innovations are a key element of our growth strategy.” he noted. Evonik plans to invest more than €4 billion in R&D over the next decade. Engel referred to innovations as the “elixir of life” for the specialty chemicals industry: “Innovations open up new business areas and strengthen our leading market and technology positions.”

The company plans to significantly expand its innovation pipeline to keep up a steady flow of new products and solutions. Ulrich Küsthardt, who was appointed chief innovation officer at Evonik earlier this year, presented a three- point plan for this purpose. “We must become more focused in our projects, more international in our research, and more open in our exchange of knowledge,” said Küsthardt. The goal is to bring innovations to consumers with even greater speed and efficiency.

The Evonik R&D pipeline is filled with approximately 500 projects. Promising innovation areas for Evonik include ingredients for the cosmetics industry, membranes, specialty materials for medical technology, food supplements and

animal feed additives as well as composite materials.

Küsthardt also plans to push for the expansion of international competence centers. Evonik already supports customers with tailored solutions in laboratories and pilot centers around the world. Thus, an R&D center for coating additives with locations in Singapore and Shanghai develops products for coatings and paint manufacturers in Asia. The company also maintains a technology center in Taiwan to advise customers from the Asian display industry, and its Medical Devices Project House in the U.S. is working on innovations in medical technology.

Evonik is deliberately opening up to external partners and cooperating with scientists and start-ups (Open Innovation), an effort Küsthardt plans to intensify further. This also includes corporate venture capital activities, for which a budget of some €100 million has been set aside. Such investments and shareholdings give Evonik insights into innovative technologies and businesses in the early development phases. The company's latest acquisition is Nanocomp, a Finnish company that develops nano-optical structures for applications in 3D gesture recognition, medical technology, and displays.

The close connection between innovative power and proximity to customers is reflected in the breakdown of R&D spending. Some 80% goes to activities within the operative businesses, which are specifically aligned with their respective core technologies and markets. Another 10% is used by the operative units to research and develop new business. The remaining 10% goes to the strategic research of Evonik's innovation unit, Creavis, for establishing new high-tech activities outside of the existing Group portfolio.

The large number of first-time patent applications filed by Evonik places the company at the forefront of the specialty chemicals sector. The company held over 25,000 patents and patent applications in 2014. Some 250 new patents were filed last year—the equivalent of almost one invention per business day. With some 2,600 Evonik employees working in research at 35 sites, the company has continuously increased the value of its patent portfolio over the past years.

Merck finishes year of key strategic moves with record figures

MERCK has successfully completed a year of strategically important moves and achieved its objectives.

“We strengthened all three of Merck's business sectors: Healthcare, Life Science and Performance Materials. With the acquisition of AZ, the offer to acquire Sigma-Aldrich and the alliance with Pfizer in immuno-oncology, we have laid the foundations for future growth,” said Karl-Ludwig Kley, chairman of the Executive Board of Merck. “These developments are the result of our long-term transformation and growth strategy. Merck is transforming into a highly specialized, global technology company with the goal to improve the lives of patients and customers.”

Total revenues of the Merck Group rose by 3.7% to €11.5 billion in 2014 (2013: €11.1 billion). Sales grew by 5.5% to €11.3 billion (2013: €10.7 billion). This was primarily the result of organic growth of 4.0% as well as acquisition-related increases of 3.3%, which were attributable to the acquisition of AZ. At the same time, foreign exchange effects lowered sales by -1.8%.

Merck markedly increased its operating result (EBIT) by 9.4% to €1.8 billion (2013: €1.6 billion). The key financial indicator used to steer operating business, EBITDA pre one- time items, climbed 4.1% to €3.4 billion (2013: €3.3 billion), also thanks to good operating performance and the acquisition of AZ.

Even though the purchase price payment for AZ amounting to around €1.9 billion was financed, net financial debt rose by only €252 million to €559 million (2013: €307 million). As of June 30, 2014, this figure had temporarily risen to €2.2 billion. This renewed evidence of the Merck Group's high internal financing power shows that Merck is well prepared for the acquisition of Sigma-Aldrich. As of Dec. 31, 2014, Merck had 39,639 employees worldwide (2013: 38,154).

In the fourth quarter of 2014, Merck achieved strong sales growth of 12.9% to €3.0 billion compared with the year- earlier period (Q4/2013: €2.6 billion). Apart from organic growth of 4.4%, portfolio effects from the AZ acquisition and favorable foreign exchange effects were responsible for the considerable increase. Consequently, despite declining royalty, license and commission income, EBITDA pre one- time items grew 10.5% to €878 million (Q4/2013: €795 million). Earnings per share pre one-time items rose 7.5% to €1.14 (Q4/2013: €1.06).

Sales of Performance Materials, Merck's specialty chemicals business, increased in 2014 by 25.4% to €2.1 billion (2013: €1.6 billion). Both solid organic growth of 4.1% as well as acquisition-related sales increases of 22.8% or €375 million contributed to this sharp rise. Adverse foreign exchange effects lowered sales by 1.5%.

Organic growth was delivered by all the existing business units, with Liquid Crystals making the largest absolute contribution to the increase in sales. In the Liquid Crystals business, in which Merck is the global market and innovation leader, the company benefited from the strong demand for high-quality and large-size televisions, for example ultra HD devices. This growth was also bolstered by sales volume developments of the new, energy-saving UB-FFS (Ultra- Brightness Fringe Field Switching) technology, which is used in the new generation of displays for smartphones and tablet PCs. The Pigments & Cosmetics business unit achieved slight organic sales growth in 2014. Xirallic pigments, which are primarily used in high-quality automotive coatings, as well as technical-functional materials were the main drivers. Due to higher demand for OLED displays, the Advanced Technologies business unit made a good contribution to the organic growth of Performance Materials.

EBITDA pre one-time items of Performance Materials rose in 2014 particularly as a result of the acquisition of AZ by 14.8% to €895 million (2013: €780 million). “Merck is not only benefiting from the megatrend of digitization, but is also actively helping to shape it, for example by developing energy-saving and thus battery-saving display materials,” explained Merck CEO Kley. “Apart from the good performance of the Liquid Crystals business with both established and innovative products, we are therefore particularly pleased by the sales growth resulting from the acquisition of AZ. Meanwhile AZ has been fully integrated and optimally complements our business portfolio.”

For 2015, Merck expects a slight increase in organic sales over the previous year amid moderately positive foreign exchange effects. Moreover, due to the inclusion of AZ for a full fiscal year, a slightly positive portfolio effect is expected. Owing to the expected operating development and positive foreign exchange effects, Merck forecasts a slight increase in EBITDA pre one-time items in 2015. EBITDA pre one-time items in 2015 should, however, at least reach the previous year's level.

DuluxGroup makes two significant supply chain investments

D ULUXGROUP has made two significant supply chain investments. The construction of a new factory in Melbourne to make water-based decorative paints, and the establishment of a new, purpose-built distribution center in Sydney, replacing two existing distribution centers. The new paint factory will produce nearly all of Dulux Australia's water-based decorative paints, which are currently manufactured at the Rocklea factory in Queensland. The Rocklea factory will be retained, but will operate at a reduced manning level, focusing on the production of solvent-based decorative paint products. It is expected that the new paint factory will cost approximately $165m, though after taking account of capital expenditure savings at Rocklea and elsewhere in DuluxGroup, together with the expected sale of the Glen Waverley site, the net expenditure will be approximately $130m, spread over the next three years. The company stated that unfortunately, the reduced activity at Rocklea will result in some redundancies. A provision of approximately $9m will be recognized in FY15, with payment in FY17 or FY18 once the new site is fully operational. Planning for the new factory is well-advanced, with construction expected to commence late in calendar 2015 and completion targeted for late in calendar 2017. A 17 hectare site north of Melbourne has been secured. This investment will deliver significant financial and operational benefits to the business. Cost savings will be achieved through automation, better raw material utilization and freight savings. In addition, a planned program of capital expenditure to upgrade Rocklea to support the company's significant volume growth will be avoided. From an operational perspective, the new factory will enable the company to produce more advanced paint products using evolving higher technology resins with even greater levels of quality and consistency. Importantly, this investment will significantly reduce the current risk of our water-based paint manufacture being interrupted by fire (due to the current co-location at Rocklea with solvent-based paint manufacture) or flood (as demonstrated by the 2011 floods at Rocklea which significantly impacted operations). Under base case assumptions and assuming no revenue upside, the cost and capital saving results in an at least neutral NPV outcome. DuluxGroup managing director Patrick Houlihan said that the new paint factory was an important investment that would set up DuluxGroup's Australian decorative paints business for decades. “We've spent considerable time evaluating various options drawing on expertise from the global paint industry. The new paint factory is by far the most compelling option strategically, operationally and financially, delivering a solid financial return, primarily through operating cost and capital savings. “Our Dulux paints business is world class on any measure. This investment further strengthens our product quality, innovation, customer service and cost competitiveness. “We also greatly appreciate the support of the Victorian Government for this significant investment in manufacturing.” A new distribution center will be established in Sydney to replace Dulux's NSW distribution center at Padstow and Selleys' national distribution center at Moorebank, NSW, both of which are currently operated by DuluxGroup. The new distribution center will be built, owned and operated by Linfox, to DuluxGroup's specification. DuluxGroup has been successfully operating in partnership with Linfox under a similar arrangement at its Dulux distribution center in Victoria. The key driver of this change is the significant growth in volume for both Dulux and Selleys over recent years, with both businesses now having outgrown their current distribution centers. "The closure of our existing distribution centers will unfortunately result in the redundancy of roles at those sites," said Houlihan. "We will look to redeploy where possible, however there will be retrenchments. A provision of approximately $8m will be recognized in FY15, with payment in mid to late 20

16 when the new distribution center is scheduled to be operational. This project has a strong financial payback and positive NPV, driven by lower operating costs under the new arrangement, largely due to the benefits of a single site and a reduction in future outside storage costs. In addition, the Padstow distribution centre, which is owned by DuluxGroup and is adjacent to the Selleys factory, will be freed up for other future purposes. DuluxGroup Managing Director Patrick Houlihan said, “The new Linfox owned and operated Sydney Distribution Centre allows us to maintain and further improve our customer service levels in a cost and capital effective way, catering for the ongoing growth in our Selleys and Dulux businesses.”

PPG marks completion of $40 million expansion at Brazil facility

PPG Industries held a ceremony to mark the completion of a $40 million, 65,000-square-foot plant for on-site resin production at its Sumaré, São Paulo, Brazil, coatings manufacturing facility. Resin produced at the facility will be used to manufacture PPG's electrocoat products to meet growing demand from automotive original equipment manufacturers (OEMs) and industrial coatings customers in the region. Attending the ceremony from PPG were Michael McGarry, president and chief operating officer; Cindy Niekamp, senior vice president, automotive OEM coatings; and Carlos Santa Cruz, general manager, Brazil. “The expansion of the Sumaré facility demonstrates PPG's long- term commitment to our automotive and industrial coatings customers in this very important region and enables us to further expand our localized production capabilities,”

McGarry said. “PPG is committed to the market in Brazil and the needs of our customers across Latin America.” With a presence in Brazil since 1973, PPG produces coatings for a variety of end-use markets in the region, including aerospace, architectural, automotive OEM, automotive refinish, industrial, packaging, oil and gas, and marine.

Axalta inaugurates waterborne coatings facility for automobile market in Shanghai

AXALTA Coating Systems has opened a latest generation manufacturing facility in Shanghai to produce waterborne coatings for China's growing automobile market. The newest and one of Axalta's most advanced waterborne production facilities, the plant reflects the key role that China plays in Axalta's global strategy, which is focused on providing sustainable coating products and application systems for customers while reducing the environmental impact of the production process. The new facility is located adjacent to Axalta's operations center that opened in the Jiading district of Shanghai in 2008. The new facility features advanced manufacturing technologies and design concepts such as integrated production systems engineered to reduce the environmental footprint of coating production. The highly automated facility can also maximize the use of raw materials and accelerate manufacturing cycle time. Advanced air filtration systems are designed to optimize air quality within the facility and to reduce emissions. The new facility will double Axalta's capacity in China for the production of waterborne coatings, further enhancing the company's market leadership in serving automotive customers in China, the world's biggest automotive market. “Axalta is proud to be a key waterborne coatings provider to China's growing vehicle market,” said Axalta Chairman and CEO Charlie Shaver at the opening ceremony. “Our expanded facility will provide sustainable coating options for our customers. The new manufacturing center reflects the skill and dedication of our employees who were able to complete the entire construction project in only 10 months.” The waterborne coating products produced at the Jiading location are designed to meet global environmental requirements, such as the EU's VOC Regulation 2004/42/EC, which can help reduce the overall environmental footprint of China's auto industry. Commenting on the new waterborne plant, Sun Lianying, Chairman of the China National Coating Industry Association, said, “This is a solid demonstration of Axalta's long-term commitment to the China market and its eco-responsible production process which will have a positive impact on the sustainable development of China's coating industries. The development is fully aligned with the Chinese government's goal of developing a sustainable auto industry, using green solutions to meet rising market demand across the country.” One of the highlights of the plant opening included a sustainability exhibition showcasing how Axalta manufacturing systems, products, applications, and research and development practices each contribute to a sustainable business model. The exhibition also illustrated how the Jiading waterborne plant can help reduce customers' environmental footprint by reducing volatile organic compounds and energy consumption from their operations. “To be effective, sustainability must be about productivity and profitability as much as it is about the effects on the environment and society,” said Shaver. “In this way, increasingly sustainable products and applications help to drive business growth as well as make Axalta a better partner for our customers.” The new plant represents a significant expansion of Axalta's presence in China. It joins two other dedicated liquid coating manufacturing operations in the country, an Asia Pacific R&D laboratory and color development center, four training facilities for refinish customers and six powder coating manufacturing locations. Axalta's multiple resources in China work together to support the sustained, long-term growth of China's automotive and other industries that use Axalta coatings.

RPM acquires leading South African spray paint manufacturer

RPM International Inc. has announced that its Rust-Oleum Group has acquired Spraymate Group, the producer of South Africa's leading aerosol paint brand. Based outside of Johannesburg, South Africa, Spraymate has annual net sales of approximately $5 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

The majority of Spraymate's sales are in the decorative/retail market through both big box stores and independent dealers under the Spraymate brand, while the company also provides marking paints to the mining industry under the Mine Mate brand.

"This acquisition gives Rust-Oleum, which has been building its presence in South Africa by importing products, the opportunity to utilize Spraymate's manufacturing and distribution capabilities. Spraymate will benefit from Rust- Oleum's product innovation, marketing capabilities and category management," stated Frank C. Sullivan, RPM chairman and chief executive officer. "RPM looks forward to welcoming the Spraymate management team, led by managing director Warren Howell, son of one of the firm's founders, to the RPM family of businesses."

Sika acquires Axson Technologies

SIKA has agreed to acquire Axson Technologies. The intended transaction was initially announced in January 2015. With annual sales of CHF 75 million and 365 employees, Axson Technologies is a leader in the field of epoxy and polyurethane polymer formulations for design, prototyping and tooling, structural adhesives, composite materials and encapsulation products for the automotive, aeronautical, nautical, renewable energy, sports & leisure and construction markets. This acquisition, will significantly broaden Sika's product range in the global Tooling and Composites business.

Axson Technologies is a world leader in high-performance resin formulation in three main application areas: Tooling & Prototyping, Composites and Electrical/Electronics. With six production sites in the USA, Mexico, France, Slovakia, China and Japan and a broad distribution network, it successfully produces and markets its innovative products worldwide.

By acquiring Axson Technologies, Sika is increasing its product offering and expertise in the Tooling and Composites business. The main technologies used are polyurethane and epoxy - also two of Sika's core technologies - which will further complement and advance the future product offerings.

Jan Jenisch, CEO of Sika: "We are delighted to welcome all Axson Technologies employees into the Sika family. The acquisition will make Sika a strong player in the global Tooling and Composites business and will expand and complement our product range for a broad customer base."

Hempel's HEMPADUR AvantGuard wins NACE's MP Corrosion Innovation of the Year

HEMPEL'S HEMPADUR AvantGuard product range was named Materials Performance (MP) Corrosion Innovation of the Year for 2014 at the NACE Corrosion 2015 Conference and Exhibition. Given on 16 March in Dallas, US, the award recognizes the products' ability to significantly improve anti- corrosive protection in harsh environments.

HEMPADUR AvantGuard activated zinc primers use unique AvantGuard technology to protect industrial structures and equipment in C4, C5 and offshore corrosive conditions. They can be used in a range of industries and applications, from offshore oil & gas platforms to power plants and wind turbines. The product range won NACE's MP Corrosion Innovation of the Year Award for 2014 in the Coatings and Linings category.

“We're very pleased to have been given this award,” says David Morton, Hempel's Technical Director for Protective Coatings. “AvantGuard technology is a step-change in anti- corrosive coatings and the award recognizes that it can provide significantly better anti-corrosive performance than other technologies on the market.”

The MP Corrosion Innovation of the Year Awards showcase progressive technological developments in all aspects of corrosion prevention and mitigation and recognize the innovators who have created revolutionary solutions to combat corrosion and protect vital assets from its damaging effects.

"The goal of the annual awards program is to provide a forum where NACE International members and customers can showcase their corrosion mitigation technologies—and be recognized for them," says Bob Chalker, CEO of NACE International.

Phoseon Technology increases performance of UV light sources by 50% at 365nm wavelength

PHOSEON Technology announced the expansion of the FirePowerT FP300 water-cooled products with 12W/cm2 peak irradiance at 365nm wavelength. These products are suited for curing adhesives, coatings and inks where 365nm is the specified wavelength. The high peak intensity increases application performance and throughput to levels that were not possible.

“Customers are asking for higher performance at 365nm wavelength. These high-power, water-cooled light sources provide the highest irradiance for a wide variety of applications,” stated Joe Becker, product marketing manager.

DuPont Titanium Technologies announces price increase for All Ti-Pure titanium dioxide products

DuPont Titanium Technologies announces a price increase for all DuPont Ti-Pure titanium dioxide grades sold in the Europe, Middle East and Africa region.

Effective April 15, 2015, a net price increase of $125 USD per ton, or as permitted by contract, will apply for all Ti-Pure titanium dioxide grades sold in the Middle East, Eastern Europe and Sub-Saharan Africa. Also effective April 15, 2015, a net price increase of €125 per ton, or as permitted by contract, will apply for all Ti-Pure titanium dioxide grades sold in Western and Central Europe, Turkey and North Africa.

Archroma's Pekoflam HFC is first powder based flame retardant additive for coating applications to be listed with Oeko-Tex standard 100

ARCHROMA, a global leader in specialty chemicals, announces that its novel halogen-free flame retardant powder coating additive, Pekoflam HFC, is since November 2014 officially recognized as a manufacturer certified product by the Oeko-Tex Association. Being the first powder additive to be listed for coating applications, Pekoflam HFC will support textile producers and protective clothing manufacturers' efforts to achieve both Oeko-Tex 100 compliance and effective fire protection for their finished goods.

Pekoflam HFC is an organic phosphorous/nitrogen compound with excellent performance on synthetic materials, including polyamide fibers and blends. The unique chemistry displays higher efficiency compared to commonly used nitrogen and/or phosphorous based chemicals. It is also applicable in water-based systems as well as in Oeko-Tex Standard 100 compliant 'green' solvent based coating systems, hence offers a higher flexibility to fabric coaters serving different end-use segments. The ecological profile enables use in both indirect and direct skin contact applications.

“The primary advantage of Pekoflam HFC is its ability to combine the effects and properties of selected halogenated and non-halogenated technologies in a fire protection solution for various coating polymers. Pekoflam HFC thus offers a sustainable long-term alternative for synthetic textile applications, meeting the criteria of the Oeko-Tex Standard 100 and responding to the general trend towards more environmentally-compatible materials and end-products that pose significantly lower risks to health,” comments Michael Schuhmann, Global Segment Manager Flame Retardants, Textile Specialties Business, Archroma.

Oeko-Tex criteria provide manufacturers in the textile and clothing industry with a uniform benchmark on a scientific

basis for the evaluation of potentially harmful substances in textiles. The Oeko-Tex label indicates the additional benefits of tested safety for skin-friendly clothing and other textiles to interested end users. The test label therefore provides an important decision-making tool for purchasing textiles.

PPG at Minnesota Paint & Powder Coating Expo'15 to present powder coatings products & more

PPG Industries (NYSE:PPG) will display three new coating products featuring proprietary PPG coating technology, including one powder, one electrocoat (e-coat) and one liquid coating, at the 2015 Minnesota Paint & Powder Coating Expo, at Century College in White Bear Lake. DES Certificate Course in Paint Manufacturing and Application The Surface Coating is a growing industry and with so many multinational OEM companies (MNC) in white goods & Global automobile giants entering into Indian market, along with growing urbanization, there has been an increasing demand for qualified Surface Coating Technologists. We find it difficult to meet the increasing demand from the industry. To meet the need of the persons working with Paint industry and with a view to enhance their academic knowledge about paints and surface coatings, Deccan Education Society (D. E. Society) has started an autonomous Certificate course in Paint Manufacturing and Application – Distance Learning Programme. The course has been designed in consultation with industry experts. A person completing the course would have gained required knowledge about paints that includes basic raw materials, their roles and functions, types of paints, their formulations and manufacturing methods, Paint Application, Evaluation of paints, Paint film defects and how to overcome them. The course commences from 1st July 2015 and will end on 31st May, 2016. On successful completion of the course, the students will be awarded certificates by D.E. Society. The minimum qualification is 10th or equivalent with 2 years experience in Paint Industry. The medium of instruction is English. The fees to be paid at the time of admission by Cash or Demand Draft drawn in favour of :Director, J R V G T I, Pune 411 004 is :- Rs. 12,000/- + 12 % Service tax + 3% Educ. Cess = Rs. The prestigious & highly respected Deccan Education Society's, established in 1885, by great freedom fighters & social reformers runs over 50 Schools and colleges across the state of Maharashtra & few out of Maharashtra. Deccan Education Society is serving the nation & our society by catering number of need based courses through various institutes to empower youths. The course consists of three papers as given below: Paper I) Paint Raw Materials – Resins, Pigments, Solvents and Additives. Paper II) Paint Formulations & Manufacturing– Formulating principles & manufacturing Methods. Paper III) Paint Application & Evaluation Further information can be had from: Deccan Education Society. Post Box No.816, Servants of India Society Road, Pune – 411004 (Distance Learning Programme.) 13,483. – Pretreatment, Application techniques & Evaluation. Email – Telephone – 020 30866281/181

The newest product, ENVIROCRON HTE (high-transfer- efficiency) powder coating, is a bisphenol A (BPA)-free coating that is engineered specifically for appliance, architectural, wire goods and extrusion applications. Formulated with a unique

cross-link polymer, Envirocron HTE coating provides faster application build rates, less material waste, and more uniform coverage on complex surfaces than traditional polyester coatings. It is suitable for product assemblies and parts with recessed cavities; odd shapes; and open, uneven or geometrically-complex surfaces, and for spray-to-waste applicators who want to reduce product loss.

PPG also will exhibit POWERCRON ADVANTEDGE e- coats. Incorporating metal-free catalyst technology by PPG, these advanced products help manufacturers comply with new environmental regulations such as REACH (Registration, Evaluation and Authorization of Chemical Substances) in the European Union while reducing energy costs and related carbon emissions by curing at lower temperatures. Powercron AdvantEdge e-coats combine superior edge corrosion resistance with a less-complex feed package and more uniform film builds on complex parts through improved throwpower. Liquid PERFORMALOC 9000 advanced-productivity coatings are a new category of cross-linked coatings featuring an exclusive combination of low-volatile organic compound (low-VOC) resins that cure fast and hard, eliminating the need for baking or force-drying of metal parts. They are designed for original equipment manufacturers (OEMs), including those with limited or no baking capabilities, that coat metal parts used in agricultural equipment, locomotives and railcars, outdoor furniture, light poles, exterior electrical cabinets and hardware, trailers and shipping containers.

In addition to the new products, PPG will highlight popular coatings such as DURANAR and CORAFLON powder coatings. Based on 70-percent polyvinylidene fluoride (PVDF) resins, Duranar two-coat powder systems have excellent panel-to-panel color consistency and are available in an array of earth-toned colors. Coraflon one-coat powder coating systems formulated with fluoroethylene vinyl ether (FEVE) resins offer an even richer palette of colors enhanced with high-luster glosses.

Duranar and Coraflon powder coatings meet American Architectural Metal Association (AAMA) 2605 specifications for color and gloss retention, and they resist damage caused by chemical attack, acid rain, salt, humidity and other environmental hazards over decades of exposure.

Visitors also will find information about durable and ultra- durable Envirocron coatings for architectural and industrial applications, as well as SILVERSAN anti-microbial-protected powder coatings.

Available literature will include quick-ship color selector cards for 136 RAL CLASSIC and 112 in-stock Envirocron coatings colors. Many colors in the RAL CLASSIC collection from PPG are standard for traffic signs and other signs created by government and public service agencies.

Huntsman has coating chemistries covered at ECS 2015

HUNTSMAN recently announced its presence at the European Coatings Show (ECS) in Germany at the end of April. With four of its five business divisions present at this year's ECS, Huntsman will demonstrate the full breadth of its coating capabilities – including a number of new innovations.

Huntsman manufactures a broad range of chemical  products designed to drive performance in coatings and printing inks. Core technologies include: Intermediate chemistries for the building block stage of  coatings formulation to influence production and physical attributes such as reactivity, water and chemical resistance, flexibility, toughness, viscosity levels and color Additives that can influence coating characteristics such as 

gloss, tint acceptance, opacity, rheology and durability  Biodegradeable specialty anionic and non-ionic surfactants that can maintain a high conversion and stability, and replace nonylphenol-based ethoxylates Specialty titanium dioxide-based solutions, color  pigments and barium sulphate additives to optimize the manufacture, performance, vibrancy and longevity of high quality, solvent- and water-based paints and coatings Off-the-shelf and customizable polyurethane raw  materials, components and system solutions to boost the effectiveness of industrial coatings such as polyurea and enhance the production and performance of adhesives and elastomers Epoxy resins, ambient and heat curing crosslinkers,  reactive diluents and specialty additives that can enhance the functionality of high performance, solid, VOC-free, waterborne and multilayer coatings. At this year's ECS, Huntsman will focus on innovations that open up a world of opportunity for coating companies. For formulators looking to achieve precise pigment properties and color characteristics, these include:  ADDIPAST and CARBOFIN carbon black dispersions ALTIRIS infrared reflecting pigment and REFLECT mixed  metal oxide pigments to increase the solar reflectance of colored coatings  BLANC FIXE and SACHTOPERSE specialty BaSO4 products for high-end coatings to improve pigment spacing and chemical resistance COLOURPLEX inorganic pigments for demanding 

coating applications  DELTIO 81X pigment, a low-dust, free flowing pigment that can enhance weather resistance and improve whiteness and gloss



DISPERFIN and TIMBASOL pigment dispersions for wood coatings 

FERROXIDE iron oxide pigments for clean orange, red and yellow  shades with good tint strength and purity JEFFLINK chain extenders to create color stable polyurea, PU and  hybrid spray elastomers and coatings FDA approved SOLAPLEX yellow and orange inorganic pigments to  replace traditional heavy metal pigments in indirect food contact (FCN 1252) applications SACHTLEBEN RDIS, RDO and RDE2 and TIOXIDE TR50 titanium 

dioxide pigments for printing inks  based paints TINTERSOL stir-in dispersions for decorative paints and industrial 

coatings  yellow and brown Easy to disperse ULTRAMARINE TR pigments for the delivery of  unique blue shades that offer optimum transparency and high strength. Proposed changes to legislation have resulted in the need to replace MEKO (EXKIN 2 anti-skinning agent) in alkyd-based paint formulations. Huntsman is promoting its EXKIN 100 oxime-based anti-skinning agent as an alternative to MEKO that provides very good performance, without affecting overall drying time. Dr Brian Acklam will give a presentation at ECS on MEKO replacement on 21st April at 11:30am on Stand 7-734 in Hall 7.

For formulators interested in perfecting priming procedures, Huntsman has developed a flexible, one-component MDI prepolymer for primer applications. Based on Huntsman's proprietary SUPRASEC technology, the primer is a single solution for a range of substrates including concrete, steel and asphalt, and can cover overlap zones and accommodate expansion and shrinkage caused by shifts in temperature, substrate moisture or load. For complication-free curing Huntsman offers:

ARADUR 20315 curing agent, which exhibits good chemical  resistance characteristics in all types of multilayer coatings used in moderate to warm climates ARADUR 20317 aromatic-free curing agent – popular in the  formulation of decorative floor coverings thanks to its mechanical stress resistance and very low tendency to yellowing and chalking: free of aromatics, and used in combination with liquid epoxy resins such as ARALDITE DY-T-1 and ARALDITE CY 184 resins, ARADUR 20317 curing agent is suitable for the production of epoxy resin coatings Ethyleneamines used as hardeners in both ambient- and heat-cured  epoxy systems, and as an intermediate in a wide range of chemical products and resins  building block of choice for countless coating applications including the creation of catalyst-free polyurea coatings. For formulators focused on improving the environmental credentials of a coating, Huntsman also offers low-emission amines APDEA and DMDPTA for speciality coating creation; and JEFFSOL alkylene carbonates – a solvent-based technology to replace toxic materials in paints, coatings cleaners. TIOXIDE TR88 titanium dioxide pigment for low-VOC and water- TRANS-OXIDE transparent iron oxide pigments available in red, JEFFAMINE polyetheramines – used as epoxy-curing agents and the

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