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2006 Top Companies
Our ranking is based on annual sales of paint, coatings, adhesives, sealants and related products. For companies based outside the U.S., sales are translated into U.S. dollars using the average currency exchange rate for the company’s fiscal year/reporting period. Click on a company name to jump down to the company information.
1. AKZO NOBEL
Sales: $6.974 billion
HQ: Arnhem, the Netherlands
Phone: 31-26-3664433
Fax: 31-26-3663250
Web Site: www.akzonobel.com
Key Personnel: G.J. Hans Wijers, chairman and CEO. General managers: Rinus Rooseboom, car refinishes; Jan Andersson and Leif Abildgaard, decorative coatings; Robert Torba, industrial finishes; Bill McPherson, marine and protective coatings; and Rob Molenaar, powder coatings.
Major Products: Decorative, industrial, marine and protective coatings and automotive refinish paint.
New Products: Sikkens’ Alpha Tacto, textile-effect paint that can reproduce the look and feel of suede, leather or woven fabric; Interchar next generation fireproofing material, which is designed to give unique protection to high-rise structures and public buildings.
Recent Acquisitions: Swiss Lack, Zweihorn, Toide Paint, Coatech, Khimrezerv, Balakom, Sico.
CEO Hans Wijers (back row center) is pictured at the official opening of Akzo Nobel’s new decorative coatings site at Suzhou near Shanghai in China, which took place in June 2005. The plant, which produces water-based wall paint also includes R&D facilities and a warehouse for raw materials and finished goods. |
Perched high atop the coatings kingdom, Akzo Nobel has retained its title as the global coatings leader with sales of $6.974 billion. In 2005, revenues increased by four percent for Akzo Nobel Coatings, which includes its Decorative Coatings, Industrial Activities, Marine & Protective Coatings and Car Refinishes business units.
Akzo’s revenue increase was mainly fueled by growth in the emerging markets of Asia Pacific, Eastern Europe and the Middle East, which also reflects the company’s strategy to expand in these areas and offset pressure in mature markets caused by steeply rising raw material costs and difficult economic conditions, especially in Western Europe.
2005 was an active year for the company on the acquisition and expansion front. During the year, Akzo opened two new powder coatings facilities and two new decorative coatings plants in China and Vietnam. It also announced its intention to acquire the Chinese decorative coatings company Guangzhou Toide Paint Manufacturing, established a powder coatings joint venture in Egypt, and invested in the construction of a new powder coatings plant in Russia. At the end of 2005, the emerging markets represented 34% of Akzo Nobel’s worldwide revenues.
Akzo Nobel’s Decorative Coatings unit is made up of the Decorative Coatings Europe and Decorative Coatings International businesses, and accounted for 36% of Akzo Nobel Coatings’ revenue in 2005.
According to the company, Decorative Coatings Europe had a difficult year due to a later than predicted economic recovery and tight margin pressure. In this mature market, Akzo continued to improve its portfolio through selective acquisitions. During 2005, the company agreed to acquire Swiss Lack, the leading supplier of decorative coatings in Switzerland, and also boosted its activities in Germany with the ICI Group’s wood finishes business, Zweihorm GmbH, which is based in Hilden. In addition, it continued to further expand its commercial distribution network of European decorative coatings business by acquiring a number of wholesalers in Germany, the largest market for architectural paint in Europe.
Decorative Coatings International has aggresively accelerated growth in emerging markets. In terms of Deco International’s performance at the country level, Russia and China—the two major growth areas for 2005—both posted double-digit growth. New capacity at the company’s Moscow facility enabled it to make additional investments at the site earlier than expected.
Akzo Nobel also reinforced its commitment to becoming China’s top coatings company by signing an agreement to acquire the coatings activities of Guangzhou Toide Manufacturing Co. Currently ranked as one of the biggest private Chinese manufacturers of emulsion paint, Toide Paint is also active in the wood varnishes sector.
Based in Guangzhou, the company commands a strong market position in southern China, with more than 200 outlets and distributors. It also has a solid presence around Beijing and Shanghai.
“This agreement is a clear indication of our ambition to become the number one coatings company in China,” said Akzo Nobel CEO, Hans Wijers. “We are making a concerted effort to grow our decorative coatings operation and this investment will substantially increase our volumes of emulsion paint, the fastest growing segment on the Chinese paint market.”
Elsewhere, further inroads were made in some of the Central and Eastern European markets. Deco International signed an agreement to acquire a 51% controlling share in the coatings activities of Ukrainian company Khimrezerv.
Additionally, new decorative coatings plants were officially opened in Vietnam and China—one near Ho Chi Minh City, the other in Suzhou near Shanghai.
On the new product front, the company announced that its Decorative Coatings business had developed Alpha Tacto, a textile-effect paint that can reproduce the look and feel of suede, leather or woven fabric. Marketed under the Sikkens line, Alpha Tacto is able to provide two distinct effects, depending on how it is applied to the wall.
The Industrial Activities business unit, which accounted for 31% of Akzo Nobel Coatings’ revenue in 2005, is made up of the Industrial Finishes and Powder Coatings businesses. According to the company, Industrial Activities put in a strong performance, especially in the second half of 2005 due to successful marketing initiatives, which expanded the business base, in addition to the improvement of average pricing in all markets. Operations in the frontier markets of China, India, Brazil and Eastern Europe sustained top-line growth.
Conditions in the global coil coatings business were particularly unfavorable due to volatile steel prices and a hesitant commercial construction industry. Wood coatings benefited from a healthy residential construction industry, which kept demand for coatings for flooring, kitchen cabinetry and building products at a strong level throughout 2005. Consumer electronics and the adhesives business units also improved during the year.
Powder Coatings posted growth in revenues in line with the record year of 2004, achieving good revenue growth in the newly developing powder markets of Central and Eastern Europe, where there is now a need for manufacturing in the region. Akzo, therefore, started construction work on a new powder coatings plant in Russia. Located at Orekhovo-Zuevo, 100 kilometers east of Moscow, the facility will supply markets throughout Russia, Ukraine and Belarus among other countries in the region.
Akzo also invested in the Middle East with the acquisition of a controlling 60% share in Egyptian market leader Coatech. The joint venture company, now known as Akzo Nobel Powder Coatings SAE, operates from the company’s existing modern manufacturing facility near Cairo.
According to Rob Molenaar, general manager of Akzo Nobel’s powder coatings business unit, the acquisition gives Akzo Nobel a much-needed local operation.
“This joint venture gives us the sort of local presence in the Middle East which has so far been lacking in our worldwide activities,” he said. “The combination of our cutting-edge technology and extensive experience in powder coatings, together with Coatech’s established reputation for excellence in quality and service, creates a formidable partnership and one which we are certain will benefit customers throughout the region.”
In China, Akzo Nobel Powder Coatings built a powder coatings facility at Langfang. The new site, located between Beijing and Tianjin, was constructed to replace a former plant in Beijing. Built on a 22,000 square meter site which includes scope for further expansion, the Langfang facility was inaugurated just a few months after the company’s powder coatings business expanded its operations in South China with the opening of a second factory at Baoan in Guangdong Province.
The Marine & Protective Coatings unit, which accounted for 17% of Akzo Nobel Coatings’ revenue in 2005, had another good year. International marine coatings continued to benefit from record levels of ship newbuilding. The company sold record levels of its Intershield for newbuilding, and also during 2005, it coated its 100th vessel with Intersleek, an environmentally-friendly “foul release” antifouling.
International protective coatings felt the squeeze on margins more than other market areas, particularly in the U.S., while positive growth was posted in China, Central and Eastern Europe, and Australasia, according to the company. On the product front, Interchar, a new member of the Chartek family of fire protection products, was launched in 2005. Based on technology created for NASA, Interchar offers the construction industry significant benefits in terms of keeping buildings safer from fire damage.
Yacht coatings fell back from its 2004 peak due to weaker demand in the U.S. market, while aerospace coatings continued to benefit from higher build rates of new aircraft and livery changes on existing ones. Overall, aerospace coatings delivered its best ever results in 2005.
Lasty, the Car Refinishes business unit, which accounted for 16% of Akzo Nobel Coatings’ revenue in 2005, remained under pressure and restructuring programs are being carried out to address the situation. Stagnating growth in the refinishes market in the U.S. and Western Europe during 2005 was partly offset by market growth outside these territtories, notably in Eastern Europe and Asia.
2. HENKEL
Sales: $6.236 billion
HQ: DUSSELDORF, Germany
Phone: 49-211-797-3000
Web Site: www.henkel-technologies.com
Key Personnel: Ulrich Lehner, chairman of the management board of Henkel KGaA; Alois Linder, executive vice president, consumer and craftsmen adhesives; and Jochen Krauter, executive vice president, Henkel Technologies.
Major Products: Adhesives and sealant technologies sold in the industrial, professional and DIY markets.
Loctite 3355 is ideal for optical, laser and other assemblies where alignment of small parts is critical. |
New Products: Loctite Pre-Activated Epoxy 3355, Pattex Removable Assembly Adhesive, Pattex Repair Express Monodose, Sista Adhesive and Joint Sealant, Multicore LF318 Lead-Free Solder Paste, Purmelt Dual Cure, Terokal 5074 Crash Resistant Structural Adhesives, Terophon 8200 series.
Recent Acquisition: Chemofast ramcord GmbH, Polybit Industries Ltd., European sealants business for DIY and the professional trades sector from Rhodia, Converter Adhesives & Chemicals Pvt. Ltd.
Henkel’s Consumer and Craftsmen Adhesives business unit, which accounted for 15% of the company’s total sales in 2005, posted a 20.5% increase in sales by the year’s end. A large proportion of this growth is attributable to the acquisition of Sovereign Specialty Chemicals in 2004.
The business sector focuses on two market segments: adhesives and adhesives tapes for home, school and office; and adhesives and sealants for construction, DIY and craftsmen.
Pursuing a dual strategy of combining organic growth through product innovation and regional expansion on the one hand, with selective acquisitions on the other, Henkel is looking to continue growing its presence around the world.
While stagnation in the company’s traditional European core markets persisted, the markets of, in particular, Eastern Europe, Latin America and Asia were strong. The OSI assembly adhesives and sealants business acquired as part of Sovereign in North America exhibited significant growth, the company said.
The company is also targeting investments toward further growth regions exhibiting strong building construction activity. It’s acquisition of Polybit, a leading supplier of relevent products in the United Arab Emirates, is an example of a step in this direction.
Henkel’s sealants operation continued to exhibit dynamic growth in 2005. Having acquired the sealants business of Rhodia at the end of 2005, the company can look forward to not just strengthening its position in the core markets of Europe, but also further growth opportunities in other regional markets arising from access to Rhodia’s technologies.
The tile adhesives business also performed well, particularly in Eastern Europe where the company opened an additional production facility in Romania.
In terms of new products, the Consumer and Craftsmen Adhesives unit launched several products including a new adhesive that combines all the advantages of epoxy and light cure chemistries, but works on colored and opaque substrates such as metals, plastics, glass and ceramics that cannot transmit light. Loctite Pre-Activated Epoxy 3355 adhesive can be applied directly onto an opaque part, cures to fixture strength in minutes and reaches full cure in hours at room temperature. The epoxy adhesive provides excellent bond strength, chemical resistance and high-temperature performance, according to the company. Single component, medium viscosity Loctite 3355 requires no mixing and shrinks very little (<0.7%) during cure, making it ideal for optical, laser and other assemblies where alignment of small parts is critical. Loctite 3355 can be used for bonding and shallow potting of optical connectors, fibers, lasers, lenses, prisms and electronics such as computers, laptops and printers.
The Henkel Technologies business sector, which accounted for 27% of the company’s total sales and supplies adhesives, sealants and surface treatment products for industrial applications, saw its sales increase 17% in 2005. Organic sales rose by 5.5%, with double-digit percentage increases in all regions apart from Western Europe. The low level of growth in Western Europe is primarily attributable to a regional downturn in activity in the automotive and electronics sectors and the weakness of the facade and construction components segment.
In 2005, Henkel expanded its business in the aerospace industry, registering increasing demand for composite adhesives, particularly in the form of high-strength epoxy resin products. Henkel’s adhesives and sealants for this segment passed a major challenge with the inaugural flight of the Airbus A380, the largest passenger airliner in the world.
Henkel’s activities serving the automotive industry profited from the fact that more and more prefabricated components and foam products are being used in order to improve vehicle acoustics. Products offering enhanced coatings and processing capabilities also strengthened this segment. In addition, the acquisition of Orbseal and the development of various new applications, helped boost Henkel’s North American business to the extent that, despite the weakness of the Western European market, the company was able to achieve double-digit percentage growth in the automotive sector worldwide.
Henkel’s operations serving the electronics industry underwent expansion due largley to the successful introduction of its lead-free solder pastes and first-time approvals from globally active customers interested in their use.
The company’s businesses serving the steel industry also experienced further expansion. The introduction of a range of innovative surface protection products enabled Henkel to expand its scope of applications in the European and American markets, as well as in Asia. Henkel also increased its market share in relation to consumer durables, due to innovations in air and water filtering technology and the successful launch of Bonderite NT, a new product for metal pretreatment applications.
The market for consumer goods developed well, especially in the packaging industry, leading to strong organic growth in this segment, according to the company. Its film laminating adhesives business was boosted as well. All regions contributed to the growth achieved, with increased market share in North America ensuing from the Sovereign acquisition, and the acquisition of CAC strengthening its business in India.
Henkel’s activities in the field of industrial maintenance, repair and overhaul also continued to develop well. Major contributory factors in this regard include a significant expansion of its market activities in relation to engineering adhesives and the company’s increased involvement in the renewable energies sector.
Success Story: The use of Henkel’s chromium-free passivation, Passerite 5004, is Voestalpine’s final step to becoming a completely chromium-free steel company.
The European Union is determined to put an end to the use of hexavalent chromium and has issued two directives to enforce this policy. One addresses the automotive industry, the other the household appliance industry. With a third on its way, concerning the construction industry, the pressure will be spread over several industries. However, right now it is mostly felt by the steel industry, especially by companies like Voestalpine.
Voestalpine supplies the automotive industry and the household appliance industry with hot-dip-galvanized and electrolytic galvanized thin sheet. In their effort to comply with the legislation they turned to Henkel. Both companies maintain a long and successful partnership together and Voestalpine’s previous experiences with new technologies from Henkel were very promising. When their request arrived, Henkel had more than five years of experience with chromium-free technology and were happy to accept the challenge to develop a completely chromium-free passivation system for galvanized steel.
The first line trials at Voestalpine were carried out two years ago and were only followed by a few additional tests as well as a little fine-tuning. Last July Passerite 5004 was fully integrated into the production process and Voestalpine’s HDG line 3 became their first chromium-free production line. The other lines were subsequently converted and by the end of January 2006 the transformation was completed.
As a result, Voestalpine has driven out all chromium but maintains the quality of the old process. Salt spray tests, humidity tests and humidity stack tests have shown that Passerite 5004 offers the same level of corrosion protection as chromium (VI)-passivation does. Other tests demonstrated the quality of the steel in additional processing, like welding. On top of that Passerite 5004 enables HDG steel strip production with a perfect surface appearance.
3. ICI GROUP
Sales: $5.817 billion
IMPERIAL CHEMICAL INDUSTRIES PLC
HQ: SLOUGH, UK (ICI PAINTS)
BRIDGEWATER, NJ (National STARCH)
Phone: 44-20-7009-5000 (ICI PAINTS)
908-685-5000 (National Starch)
Web site: www.ici.com • www.nationalstarch.com
Key Personnel: David Hamill, director of ICI and chief executive of ICI Paints, and William Powell, director of ICI and chief executive of National Starch.
Major Products: Paint and coatings (ICI Paints) and adhesives (National Starch).
New Products: Cuprinol Sprayable fence treatment, UK Trade Sterishield, UK Trade Metalshield, This Old House exterior paint, Hammerite, Dulux Supergloss 5-in-1, Cool 200.
ICI’s This Old House exterior paint line. |
UK-based ICI Group manufactures paint and coatings under its ICI Paints business unit and adhesives under National Starch’s Adhesives division. Both units combined to generate $5.817 billion in sales for the group in 2005. ICI Paints accounted for 40% of ICI Group’s sales, with 90% of its revenue coming from decorative paint.
ICI Paints maintains a global presence with major manufacturing facilities located in the U.S. UK, Brazil, Argentina, Germany, the Netherlands, France, China, India and Malaysia. Additional manufacturing facilities are in 14 other countries. The majority of the company’s sales are generated from North America (39%) and Europe (36%), while Asia (15%) and Latin America (9%) account for the remaining revenue.
In 2005, paint sales were six percent ahead of 2004 on a comparable basis with growth for all regions of the decorative paint business. Sales for Decorative Europe were one percent ahead of 2004 with growth for UK trade sales and sales in Ireland and Eastern Europe partly offset by lower sales in the UK retail market. Decorative North America sales were four percent up on 2004 with growth in all principal market sectors.
Decorative Asia sales were 17% up from 2004 with both volume growth and increased selling prices across the region. Growth was particularly strong in China, India, Pakistan and Vietnam. Sales for Decorative Latin America were nine percent ahead compared with 2004. Packaging coatings also delivered a strong performance, with sales up 14% on 2004.
The decorative paints business has well-established brands in paint, woodcare, metalcare, adhesives and fillers including Dulux, Glidden, Devoe, Valentine, Coral, Alba, Xyladecor, Hammerite, Polycell, Polyfilla and Alabastine.
In 2005, the business launched many new products under these brands such as Cuprinol Sprayable, an award winning water-based spray system for fence treatment; UK Trade Sterishield, a water-based hygiene paint utilizing a silver bactericide; UK Trade Metalshield, which provides eight-year protection for ferrous and non-ferrous metals in a simple system requiring fewer coats than competitive systems; This Old House range in the U.S.—a premium exterior paint; Hammerite direct-to-galvanized-metal paint in Brazil; Dulux Supergloss 5-in-1, launched in India, offering 300 glossy, clean colors, with long-life, anti-yellowing and good coverage properties; and Devoe Regency, a high-solids acrylic enamel.
The adhesives division of National Starch, which is one of the largest producers of specialty industrial adhesives in the world, reported that its sales in 2005 were nine percent ahead of the previous year. Several markets experienced double-digit growth including North America, Latin America and Asia, notably China and India, while in the latter part of the year demand weakened in Europe.
During the year, ICI invested in a new adhesives manufacturing facility in Brazil to meet growing demand for industrial adhesives in the country. The investment introduces local provision of adhesives, some previously imported by the company for the woodworking, packaging and paper converting sectors, some for export, and some to support growth from marketing programs to local accounts.
The factory is operated by National Starch and makes hot-melt, water-based adhesives and emulsion polymers. The largest of its type in the region, the factory is located 34 miles northwest of Sao Paulo on a greenfield site owned by ICI that is scheduled for expansion in output this year.
“This investment and plans for expansion at the Jundiai site reflect our confidence in the future of the markets in Brazil and the region,” said Tom Agin, senior divisional vice president of National Starch’s Latin America and South Africa adhesives business.
4. SHERWIN-WILLIAMS
Sales: $5.728 billion*
HQ: Cleveland, OH uSA
Phone: 216-566-2000
Web Site: www.sherwin.com
Key Personnel: Christopher M. Connor, chairman and CEO; Sean P. Hennessy, senior vice president, finance and CFO; and Conway G. Ivy, senior vice president, corporate planning and development; John G. Morikis, president; paint store segment; Thomas W. Seitz, president and general manager; consumer segment; Blair P. LaCour, president and general manager, automotive finishes segment; and Alexander Zalesky, president and general manager, international coatings.
Major Products: Architectural and decorative paint, stains and varnishes, wood finishing products, caulks, adhesives, automotive finishes and industrial and marine coatings.
New Products: Duration Home interior paint, ProMar 200 XP, Builders Solution interior paint, Loxon XP waterproofing masonry coating, Sher-Wood BAC wiping stain, Polane SP Polyurethane Enamel, Sher-Nar PVDF, Sher-Wood KemVar Varnish LF, Waterborne CARC, Ultra-Cure Waterborne UV, Dutch Boy Ready to Roll, Dutch Boy Celing Solutions color transforming ceiling paint, Minwax Wood Finish in Red Chestnut and Gunstock, Thompson’s WaterSeal No Drip exterior gel stain, Krylon H20 latex aerosol paint, AWX waterborne coatings, Planet Color.
Founded in 1866, The Sherwin-Williams Company has a long history in the manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America. Shewin-Williams’ consolidated net sales in 2005 topped $7.1 billion, a rise of 17.6% over 2004. (The company’s ranking excludes estimated sales from non-paint items and other administrative items reported by the company.) Sherwin-Williams’ consolidated net income rose 17.8% to $463.3 million.
With coatings sales of approximately $5.728 billion, an increase of roughly $1 billion over the previous year, the company is the leading manufacturer of paint and coatings in North America. Acquisitions, primarily Duron, Inc. and Paint Sundry Brands Corporation acquired in Sept. 2004, contributed to a six percent increase in sales in 2005.
Net sales for Sherwin-Williams’ Paint Stores segment rose 21.9% to $4.84 billion from $3.98 billion in 2004, with comparable store sales improving by 13.6%. Operating profit from the segment increased 23.4% to $592.5 million. According to the company, this increase primarily came from continuing strong domestic architectural paint sales to contractor and DIY customers. Sales from acquisitions also contributed to the segments success.
Sherwin-Williams’ paint stores serve three major market segments in the North American coatings market including architectural paint customers, OEM product finishers and industrial maintenance and marine coatings users. The company reported that it achieved solid growth in all three of these segments.
In 2005, Sherwin-Williams opened 98 new stores, ending the year with 3,081 stores in operation in North America compared to 2,983 stores at the end of 2004.
On the new product front, the Paint Stores segment introduced 18 new products for the architectural, OEM product finishes and industrial maintenance and marine markets in 2005. Some of these new products include Duration Home interior paint, which prevents stains from penetrating and enables easy cleaning with a damp sponge; ProMar 200 XP single coat, which is equal to two coats of traditional eggshell and flat finishes, saving contractors time and labor cost; Builders Solution interior paint, a two-coat system that starts with a high-build surfacer that masks drywall imperfections and establishes a smooth, even surface for topcoat; Loxon XP waterproofing masonry coating, which is applied directly to concrete, eliminating the need for primer; Sher-Wood BAC wiping stain; Polane SP Polyurethane Enamel for heavy equipment; Sher-Nar PVDF for coil and extrusions; Sher-Wood KemVar Varnish LF for kitchen cabinets; Waterborne CARC for military equipment; and, Ultra-Cure Waterborne UV for multiple wood markets.
Net sales in the consumer segment increased 7.7% to $1.4 billion from $1.3 billion in 2004. Acquisitions accounted for all of the sales increase in the cosumer segment. Operating profit for the year declined $18.6 million, or 9.9%, to $169.1 million. Operating profit was adversely affected by increased raw material costs, according to the company.
With roughly 56,000 retail outlets in the U.S. that sell coatings or coatings related products, approximately 35,000 of these outlets offer one or more product lines manufactured by the consumer segment and sold under such brand names as Dutch Boy, Pratt & Lambert, Kryon, Minwax, Thompson’s WaterSeal and Purdy.
In 2005, Sherwin-Williams’ consumer segment introduced the Dutch Boy Ready to Roll paint container, which was recognized as “The Most Innovative Package of the Year” by the Institute of Packaging Professionals. Krylon H20, a latex paint in aerosol form was launched and is ideal for indoor use and cleans up with soap and water. The launch of the Pratt & Lambert Never Compromise Color Sample Selector lets customers explore colore palettes and preview color combinations before they paint an entire room.
Net sales for Sherwin’s automotive finishes segment increased 7.1% to $550.8 million from $514.3 million in 2004. The majority of this increase came from strong international sales, new product line introductions and favorable currency fluctuations, according to the company. Operating profit for 2005 declined $800,000, or 1.4%, to $57.2 million.
During the third quarter of 2005, the automotive finishes segment sold its majority interest in an automotive coatings joint venture in China, resulting in a loss of $7.9 milion, which impacted the company’s operating profit.
Also during 2005, the automotive finishes segment opened seven new branches, bringing its total to 203 in the U.S., Canada, Jamaica, Chile and Peru. The segment also introduced a new automotive waterborne basecoat/clearcoat system called AWX, is formulated to comply with stringent European Union (EU) VOC regulations scheduled to take effect in 2007. The segment also launched Planet Color, a collection of optically enhanced automotive coatings for the custom finishing market.
Net sales for the international coatings segment grew 21.8% to $388 million in 2005 from $318.6 million in 2004. According to the company, favorable currency fluctuations increased sales for the segment by 9.8%. Operating profit in this segment for the year grew to $23.6 million from $18 million in 2004, an increase of 30.6%. The company said this was primarily the result of higher sales volumes, operating efficiencies resulting from manufacturing volume increases and tight expense control.
The international coatings segment made a concerted effort during 2005 to strengthen its brand identity and expand distribution outside North America. In Brazil, it completed an extensive overhaul of its packaging to better align the images of its various brands and strengthen their association with Sherwin-Williams. In Argentina, the segment was listed among the top 60 companies to work for based on an annual survey. In Italy, the segment partnered with an established distributor to relaunch its Ronseal brand wood care coatings line.
On the management side, in July, David F. Hodnik, retired vice president and CEO of Ace Hardware Corporation, was elected to Sherwin-Williams’ board of directors. In addition, once again, Fortune Magazine named Sherwin-Williams to their list of the “100 Best Companies to Work for.”
Success Story: The U.S. General Services Administration (GSA) honored Sherwin-Williams with two awards for outstanding business practices.
The Director’s Award was given to Sherwin-Williams in recognition of its business acumen, cooperation, customer service and contribution to the GSA mission—consistently providing the best value in a fair and competitive manner. The honor also further acknowledged the company for consistency in meeting or exceeding customer expectations, its timely sales reporting and for maintaining up-to-date product and pricing information in the GSA Advantage System.
Sherwin-Williams was also recognized by GSA as a Most Environmentally Friendly Contractor for ongoing research and development of products that meet or exceed environmental standards. The environmental award also recognized Sherwin-Williams’ development of durable products that reduce the amount of waste and chemicals that are released into the environment, have zero or low VOCs, low odor, anti-microbial properties and are silica-free. Sherwin-Williams’ environmentally friendly products meet or exceed GS-11 criteria for coatings used in LEED certified buildings.
5. PPG INDUSTRIES
Sales: $5.566 billion
HQ: PITTSBURGH, PA USA
Phone: 412-434-3131
Web Site: www.PPG.com
Key Personnel: Charles E. Bunch, chairman and CEO; J. Rich Alexander, senior vice president coatings; William A. Wulfsohn, senior vice president, coatings managing director, Europe; Charles Kahle, director, coatings R&D; Dick Beuke, vice president, architectural coatings; Dennis Kovalsky, vice president, automotive coatings; Garry Goudy, senior vice president automotive aftermarket; and Marc Talman, key manager, packaging.
Major Products: Architectural/decorative paint, coatings and stains, automotive OEM and refinish coatings, industrial coatings and packaging coatings.
New Products: Manor Hall Timeless super premium interior paint; CeramiClear clearcoat for automobiles.
Recent Acquisition: Crown Coating Industries.
In 2005, PPG’s coatings sales rose five percent ($291) to $5.566. The company said sales rose three percent across all businesses except automotive due to higher selling prices; one percent due to improved volumes as increases in the company’s aerospace, architectural and OEM businesses offset volume declines in automotive refinish and industrial coatings; and one percent due to the positive effects of foreign currency translation. Operating income decreased $168 million in 2005.
Manor Hall Timeless provides a durable, smooth, non-porous finish, combining effective stain and burnish resistance, washability and antimicrobial additives. |
“We faced many notable headwinds during the year, including the economic fallout from the hurricanes, historical peaks in energy costs and demanding conditions,” said Charles E. Bunch, PPG’s chairman and CEO. “We see continued profitable growth opportunities on the road ahead, but also see continued pressure due to the high energy and raw material pricing environment. As a result, in addition to the annual cost reductions that we consistently deliver, we have implemented plans to take severance and restructuring actions to further streamline our operations.
“Our focus on profitable growth, meanwhile, has remained unchanged,” he continued. “We anticipate continued organic growth, as evidenced by the performance of many of our businesses in 2005, including architectural coatings and aerospace products. Furthermore, we want to accelerate that growth through potential acquisitions, leveraging our strong balance sheet and consistent free cash flow.”
PPG’s strategy for accelerating growth and strengthening its businesses is focused heavily on building a presence in emerging markets as well as investing in the manufacturing technologies that meet the demands of the market place.
The Asian coatings market represents a perfect example of the company’s growth strategy in action. Since 1999, PPG’s coatings sales in the region have more than doubled, growing at a rate of 18% per year. To generate additional growth, in 2005, PPG acquired Crown Coating Industries of Singapore, Asia’s leader in radiation-curred coatings for the flooring industry. The company operates facilities in Singapore and Shanghai.
“Crown enables us to provide manufacturers in Asia with local supply of the high-quality coatings that customers have come to expect from PPG,” said J. Rich Alexander, senior vice president, coatings. “It also enables us to grow our presence in the global wood coatings business, where our technology is considered the industry leader.”
In addition, PPG announced it will open a coating application facility in Taiwan for fasteners and small parts in the second quarter of 2006. Today PPG’s Asian coatings sales constitute slightly less than ten percent of the company’s worldwide coatings sales.
In architectural coatings, meanwhile, a business where success relies heavily on distribution, according to the company, PPG expanded its presence in 2005 with the acquisition of 42 service centers in eight Midwestern states from Iowa Paint Manufacturing. In addition, PPG acquired the Iowa and Sterling brands. Since 2001, PPG has added nearly 150 company-owned service centers to its network that now includes nearly 380 locations. In addition, PPG supplies paint to two of the big three home center chains, Lowe’s and Menards, which together added 156 stores in 2005. As a result of the growth in company-owned service centers and home centers, PPG’s architectural coatings sales have increased approximately 14% per year since 1997.
PPG has also added coating capabilities at its Wichita Falls, TX performance glazings plant to meet the growing demand for low-emissivity glass and accomodate future generations of energy efficient, high performance products, the company said. Scheduled to come online in the first half of 2006, the system, which applies thin, transparent coatings to enhance the performance of glass, will become the sixth in the PPG network, increasing the company’s participation in a fast-growing segment of the architectural glass industry.
In terms of new products the company has launched several in 2005 including Manor Hall Timeless super premium interior paint, which is an expansion of its popular super-premium exterior line. Backed by a lifetime guarantee, Timeless does not require extensive and sometimes damaging scrubbing to remove surface dirt. The paint also meets stringent environmental regulations for minimal impact on indoor air quality and a low VOC of less than 50 g/l.
Manor Hall Timeless super premium interior paint is available in matte, eggshell plus and semi-gloss finishes.
PPG has also been actively developing new products based on nanotechnology including CeramiClear clearcoat for automobiles. As the final layer of paint applied to automobiles, CeramiClear clearcoat provides scratch and mar resistance and retention of gloss throughout a vehicle’s life cycle, according to the company.
6. DUPONT
Sales: $3.78 billion*
HQ: WILMINGTON, DE
Phone: 302-774-1000
Web Site: www.performancecoatings.dupont.com
Key Personnel: Charles O. Holliday, Jr., chairman and CEO; Thomas M. Connelly, Jr., senior vice president and chief science and technology officer; Terry Caloghiris, group vice president, DuPont Coatings & Color Technologies; Douglas L. Moore, vice president/general manager, DuPont Advanced Coatings Systems; Eric G. Melin, vice president/general manager, DuPont Refinish; Marty M. McQuade, vice president/general manager, DuPont Automotive Systems.
Major Products: Automotive OEM and refinish coatings and industrial finishes.
New Products: DuPont Professional Grade driveway products, DuPont 1052R and 1056R.
Recent Acquisition: Powder Coatings de Mexico, Standox-Max.
DuPont’s Coatings and Color Technologies unit recorded sales of $6.2 billion in 2005. Core coatings markets served by the Coatings and Color Technolgies unit include automotive OEM and refinish, industrial coatings and architectural coatings. DuPont’s 2005 coating sales are estimated to be $3.78 billion.
2005 saw a major achievement in the Japanese market as DuPont opened a $10 million laboratory in Aichi Prefecture to facilitate technical services and approvals for automotive OEM coatings used by Japanese auto manufacturers worldwide, and to support their home country assembly operations. The facility is managed by DuPont and DuPont Shinto Automotive Systems, a joint venture between DuPont and Shinto Paint Company.
DuPont’s new $10 million automotive paint laboratory in Aichi, Japan will focus on the development and testing of automotive OEM coatings. |
“Our aim is to offer rapid responses to Japan-based customer needs for the latest coatings technology in any part of the world,” said Marty McQuade, vice president and general manager for DuPont Automotive Systems. “DuPont is developing technology that will help its customers improve application productivity and environmental compliance as they meet rising consumer demands for improved vehicle paint aesthetics and long-term durability.”
In the Americas, DuPont completed its acquisition of Powder Coatings de Mexico, strengthening the company’s position as a leader in the powder coatings market throughout the Western Hemisphere. Additionally, 2005 saw the acquisition of the Standox-Max joint venture in Mexico, resulting in the opening of an upgraded distribution network.
The DuPont Aviation Finishes brand was also launched in 2005 as a key growth initiative, delivering a complete product line of high-performance coatings for completion and refinishing of aircraft.
On the new product front, Dupont Refinish added DuPont 1052R and 1056R to its unercoat range. The two new productive surfacers have been designed to meet today’s bodyshop demands for productivity; both products feature fast drying and high filling capabilities.
7. BASF COATINGS
Sales: $2.714 billion
HQ: Müenster, Germany
Phone: 49 2501-14-0
Web Site: www.basf-coatings.com
Key Personnel: Jahn Raimer, CEO, BASF Coatings AG; Klaus-Peter Löbbe, member of the board of executive directors responsible for coatings globally; Rainer Blair, group VP, coatings, North America; Jacques Delmoitiez, group VP, automotive refinish/commercial transport coatings; Wolfgang Micklitz, director OEM coatings for Asia-Pacific; Peter Steiert, group VP- industrial coatings solutions/global strategy and regional business unit; and Rui Goerck, VP, coatings South America and head of Decorative Paint Solutions.
Major Products: Automotive OEM and refinish coatings, industrial coatings and decorative paint.
New Products: Glasurit 923-55 MS Clear, Glasurit 923-45 HS Clear scratch resistant VOC 3.5, Jet Black Ultra-Cool SP, R-M 2K aerosol urethane clear coat and epoxy primers, R-M DC5600 CTR Production Clear.
Recent Acquisition: Rhenania Coatings GmbH, BASF Akzo Nobel, BASF NOF Coatings.
In 2005, BASF’s sales increased by $196 million to $2.714 billion. While sales increased in all regions, significantly higher raw material costs put pressure on the company’s margins. As a result, earnings were lower than in 2004.
Glasurit 923-45 HS Clear |
Of BASF’s four coatings segments, including automotive OEM, automotive refinish, decorative and industrial, auto OEM is the largest, accounting for approximately 50% of sales in 2005. Automotive refinish accounted for 25% of sales, the industrial coatings operation 15%, and lastly, decorative coatings represented 10% of sales.
While the company increased both volumes and sales of automotive OEM and refinish coatings, higher raw material costs depressed its margins in the automotive OEM coatings business unit. This was compounded by the impact of sluggish growth in the automotive industry in Europe and North America.
In the refinish coatings business, the company’s earnings remained at levels equal to 2004, although margins were lower as well due to changes in the company’s product mix and higher raw material costs. At the same time, BASF achieved above-average increases in exports to the emerging market of Eastern Europe.
As for the industrial coatings business, BASF continued with its efforts to optimize its product portfolio and restructure the business. In the architectural coatings business in South America, BASF strengthened its market position with its Suvinil brand.
2005 was a busy year for BASF on the acquisition front as the company continues to extend its reach around the globe. In East Asia BASF strengthened its business when it signed a contract with NOF Corporation of Japan for BASF to fully acquire BASF NOF Coatings (BNC), a joint venture between the two companies. BASF now operates the company under the name BASF Coatings Japan.
The acquisition includes BNC’s production sites in Totsuka, Kanagawa prefecture, and Ako, Hyogo prefecture, Japan. Formed in 2000, the BNC joint venture produces and markets automotive OEM coatings, refinish coatings and industrial coatings.
“This transaction underlines BASF’s clear commitment to Japan as an important coatings market,” said Klaus-Peter Lobbe, member BASF’s board of executive directors and responsible for the coatings business. “The integration into BASF’s global organization will enable us to enhance the value of our services and products to customers in Japan.”
BASF also announced its plan to develop BASF Coatings Japan as the new regional hub for its coatings business in Asia-Pacific. “Japanese car manufacturers are key players in the global automotive industry,” explained Jean-Pierre Monteny, president of BASF’s coatings division. “BASF Coatings Japan will enable us to expand our partnerships with Japanese car makers in Japan, the Asia-Pacific region and worldwide.”
BASF also bolstered its position in the Australian coatings market, signing an agreement with Akzo Nobel for it to acquire BASF Akzo Nobel, a joint venture between the two companies to market coatings for the automotive industry in Australia.
Also, the company has consolidated its two coatings entities in Australia—the businesses for OEM coatings and refinish coatings—under one company name, BASF Coatings Australia. In addition to more efficient operations, BASF Coatings Australia will offer a broader product portfolio and reinforce its local market presence due to its standing as a global player, according to the company.
Seeking to strengthen its industrial coatings business, BASF acquired the coil coatings business from Rhenania Coatings GmbH and further extends its position in the European coil coatings market. The technologies BASF acquired from Rhenania Coatings are particularly applied to aluminium used by the construction industry, for example, in structures that provide sun protection.
Success Story: The U.S. EPA awarded its Presidential Green Chemistry Challenge Award to BASF’s automotive refinish coatings business for the company’s eco-efficient UV-curable primer.
An eco-efficiency analysis showed that the new primer from BASF cures ten times faster than convetnional thermally cured products. Since UV-curing is light-activated and does not rely on heat, it eliminates the need for bake ovens. As a result the energy consumption in a body shop is reduced by approximately 80%.
“Finding a balance between the economic, environmental and social needs of today’s society without impairing the development opportunities of future generations is one of our essential objectives,” said Rainer Blaie, group vice president for BASF’s coatings businesses in North America and the global automotive coatings solutions business. “The development of this UV-curing primer shows that we not only talk about sustainability, but also act accordingly.”
8. VALSPAR
Sales: $2.713 billion
HQ: Minneapolis, MN USA
Phone: 612-332-7371
Web Site: www.valspar.com
Key Personnel: William L. Mansfield, president and CEO; Steven L. Erdahl, executive VP-coatings; Paul C. Reyelts, executive VP and CFO; Rolf Engh, executive VP, general counsel and secretary; Gary E. Hendrickson, senior VP- architectural, global wood coatings and federal; Donald A. Nolan, senior VP, global packaging and automotive; Kate Bass, vice president-information technology and furniture solutions; Steve Person, vice president, sales and marketing, architectural group.
Major Products: Decorative, protective and industrial paint and coatings, packaging coatings and automotive and fleet refinish products.
New Products: Quikrete professional concrete coatings.
Recent Acquisitions: Corus Packaging Plus, Samuel Cabot Inc.
Valspar’s sales for 2005 increased 11.2% to $2.713 billion with revenue growth in all the company’s major business lines. The company’s net income of $147.6 million represents a 3.3% increase over 2004 figures.
The coatings business segment generated solid results in 2005 with sales increasing over 11%. According to the company, by the fourth quarter, this segment had significantly narrowed the gap between raw material cost increases and pricing initiatives. Packaging coatings grew faster than the market while industrial coatings also had a strong year benefiting from the rebound in the economy, success with new business initiatives and growth in China, according to the company.
Meanwhile, the paints business segment had a more difficult year. Sales were solid, increasing over eight percent, but operating margins declined due to the lag between price increases and rapidly rising raw material costs.
The big news in 2005 for Valspar was its acquisition of Samuel Cabot Incorporated, the 128-year old privately owned manufacturer of exterior and interior stains and finishes. Based in Newburyport, MA, Cabot had sales of approximately $58 million in 2004.
“Cabot Stains has a long, distinguished history and an outstanding reputation for quality products,”said William L. Mansfield, Valspar’s president and CEO. “The combination of the Valspar and Cabot brands significantly strengthens our product offering for independent paint retailers.”
9. RPM
Sales: $2.556 billion
HQ: MEDINA, OH USA
Phone: 330-273-5090
WEb SITE: www.rpminc.com
Key Personnel: Frank C. Sullivan, president and CEO; P. Kelly Tompkins, senior vice president, general counsel; Ronald A. Rice, senior vice president, administration; and Robert L. Matejka, vice president, CFO and controller.
Major Products: Industrial and consumer coatings and related products sold through a number of subsidiaries operating around the world.
Recent Acquisitions: Illbruck Sealant Systems, Tamms Industries, Custom Building Products’ patch and repair product line.
In 2005, RPM International, Inc., generated $2.556 billion in revenues, a 10.8% improvement over 2004. Of this growth 8.1% was internal, 1.3% came from acquisitions and the remainder was from favorable currency translation.
In line with the company’s goal of growing more aggresively in the European market, RPM’s Tremco unit acquired Illbruck Sealant Systems, a $190 million high-performance sealant and installation systems manufacturer in Leverkusen, Germany.
The purchase gives Tremco a “global footprint in its core waterproofing and sealant system technologies,” according to the company. Illbruck is a leading Pan-European manufacturer of installation systems for mounting, fixing, assembling and sealing pre-fabricated construction elements and window and door applications. Illbruck’s systems are highly specified throughout Europe and are sold primarily to professional window and door applicators and to a lesser extent, directly to DIY retailers.
Illbruck’s product roster includes joint sealing tapes, flashing tapes, cartridge sealants and adhesives, strips, foils and accessories.
“Illbruck has a strong strategic and cultural fit with RPM and its Tremco Sealants division,” said RPM’s president and CEO, Frank C. Sullivan. Sullivan said Illbruck’s brand “will provide increased momentum in Europe’s primary markets for additional Tremco and RPM products.”
As part of the Tremco Group, Illbruck will take Tremco Europe from a $50 million business to $240 million and further advances RPM’s goal of establishing a $500 million presence in Europe, according to the company. Currently it derives 75% of its revenue from the U.S. and 25% from international markets.
Success Story: Tremco's roofing services division, Weatherproofing Technologies, Inc. (WTI), has been one of RPM's many organic growth success stories. Revenues have grown tenfold, from $15 million in 1999 to $150 million today. The division offers inspections, warranty protection, maintenance, general contracting and information-based services to assist in asset management and maintenance of roofing systems. WTI has rapidly become one of the largest roofing maintenance service providers in North America, with millions of square feet of roofing under contract covering thousands of roofs with service agreements.
10. SIGMAKALON
Sales: $2.215 billion
HQ: UITHOORN, THE NETHERLANDS
Phone: 31-297-54-17-00
Web Site: www.sigmakalon.com
Key Personnel: Pierre-Marie De Leener, CEO SigmaKalon; Kees van der Kolk, director of research; P. Malmartel, CFO; Richard Burgin, general counsel; J. Wllemse, general manager; P. Thibaut, coatings marketing director; Ken Partington, Deco International; Jean-Marie Greindl, Deco France; Phil Evans, Deco UK & Ireland; J. Vos, Deco Northern Europe; D. Philips, marine and protective; and L. Jacobs, industrial coatings.
Major Products: Decorative, marine, protective and industrial coatings.
New Products: LTA in the Sigma S2U Nova range, Seigneurie Premior Mat, Shed and Fence treatment.
Recent Acquisitions: D&M Coatings, B&K Coatings.
SigmaKalon, a worldwide player in decorative, marine, protective and industrial coatings, employs approximately 10,000 people in 40 countries, with a focus on the European, Asian and African markets. The company reported 2005 sales of approximately $2.215 billion.
On the acquisition front, 2005 saw SigmaKalon and Gilde Participaties reach an agreement for the acquisition by SigmaKalon of Doelfray & Macostan Coatings BV (D&M) in Veenendaal, the Netherlands.
D&M Coatings is a specialized manufacturer of coatings for the joinery, furniture and light metal industry in Western Europe. D&M generated a turnover of approximately $28 million in 2004 and employs 80 people.With its state-of-the-art production facility D&M will further strengthen the industrial coatings business unit of the SigmaKalon Group.
SigmaKalon enhanced its product portfolio in 2005 with several product launches. LTA, (Lipophobic Technology in Acrylics), was added to the Sigma S2U Nova range and is a technology with a high resistance against dirt and cleaning products. New VOC compliant products such as Seigneurie Premior Mat, which is a water-based matte lacquer was also released. Lastly, the company’s Shed and Fence treatment was introduced and is formulated to be water repellent and to resist fading.
11. 3M
Sales: $2 billion*
HQ: St. Paul, MN USA
Phone: 888-364-3577
Web Site: www.3m.com
Key Personnel: George W. Buckley, chairman/CEO/president; Jay V. Ihlenfeld, SVP, R&D; H.C. Shin, EVP, industrial and transportation; Jean Lobey; EVP, safety, security & protection services; Moe S. Nozari, EVP, consumer and office; Brad T. Sauer, EVP, health care; James B. Stake, EVP, display and graphics; Robert D. MacDonald, senior VP marketing and sales.
Major Products: Coatings, adhesives, sealants and related products used in diverse applications and markets.
As one of the most diverse company’s in this report, 3M manufacturers adhesives and sealants, and also produces an array of coatings, grouts and concrete sealing products spread across seven business units including the consumer and office business, the display and graphics business, the electro and communications business, the health care business, the industrial business, the safety, security and protection services business, and the transportation business. These units combined netted $21.2 billion in 2005, representing a 5.8% increase over 2004. Coatings World estimates 3M’s sales of coatings, adhesives and sealants at approximately $2 billion, up from $1.85 billion in 2004.
12. NIPPON PAINT
Sales: $1.9 billion*
HQ: Osaka, Japan
Phone: 81-6-6458-1111
Web Site: www.nipponpaint.co.jp
Key Personnel: Hiroshi Fujii, representative director, chairman; Teruyoshi Fujishima, representative director, president; and Shizuo Katsunaga, representative director, executive vice president.
Major Products: Automotive, protective, architectural, marine and industrial paint and coatings.
Despite the challenges caused by the slight decrease in shipments in terms of volume compared to 2004, the Nippon Paint Group posted a 5.2 billion yen (2.5%), or approximately $44 million, increase in consolidated net sales to 208 billion yen in 2005. This increase was entirely attributed to Nippon’s paints and coatings business. After converting to U.S. dollars, Nippon’s paint and coatings sales have remained the same as 2004 at approximately $1.89 billion.
Within the paints and coatings business, the automotive coatings segment enjoyed considerable sales growth of 10.8%, while sales in the industrial paint and coatings segment increased 2.4%. The company’s trade paints segment suffered a 3.4% drop in sales due to difficulties faced in the business environment, such as record snowfalls and irresponsible practices in the construction industry, according to the company.
Faced with prolonged escalating prices for crude oil and naphtha, the company’s efforts were concentrated on reducing manufacturing costs, while also working to improve sales and administrative efficiency.
13. KANSAI PAINT
Sales: $1.775 billion
HQ: Osaka, Japan
Phone:: 81-6-6203-5531
Web Site: www.kansai.co.jp
Key Personnel: Shoju Kobayashi, president; Otani Toshinobu, executive managing director; Yuzo Kawamori, managing director (marketing); and Sinichi Mamatsu, managing director (R&D).
Major Products: Automotive OEM and refinish coatings, industrial coatings, decorative paint, marine and protective coatings.
Sales of paint and coatings in 2005 for Kansai Paint, Japan’s second largest coatings manufacturer were valued at $1.775 billion and accounted for 95% of the company’s business. Automotive OEM and refinish coatings make up 51% of Kansai’s coating activity. Industrial coatings account for 22%, decorative coatings another 22% while marine and protective coatings make up five percent.
During the year, Kansai Paint formed a joint venture with Indian paint manufacturer Goodlass Nerolac to acquire the paint operations of Sime Coatings Sdn, Malaysian coatings firm. Sime Coatings, part of the NOVA Paint Club, is the largest manufacturer of automotive OEM coatings in Malaysia. It also makes paint for automotive plastics, coil coatings, protective coatings, vehicle refinishes, container and general industrial coatings.
14. H.B. FULLER
Sales: $1.512 billion
HQ: St. PAUL, MN USA
Phone: 651-236-5900
Web Site: www.HBFULLER.com
Key Personnel: Albert P.L. Stroucken, chairman, president and CEO; John Feenan, SVP, CFO; Hans Feix, president and CEO, EFTEC North America LLC; Jose Miguel Fuster, group president, GM Latin America; Stephen J. Large, group president, GM Full-Valu/Specialty Group; Walter Nussbaumer, group president, GM Europe; Ed Snyder, VP and chief process improvement officer; and Michele Volpi, group president, GM global adhesives.
Major Products: Adhesives and coatings.
New Products: Alloren metallic powder coatings.
H.B. Fuller’s operations are organized into two distinct business segments—Global Adhesives and Full-Valu and Specialty. Global Adhesives is H.B. Fuller’s largest operating segment, representing approximately 70% of the company’s global sales. This segment is comprised of strategic business units supplying adhesive products for assembly applications, converting, footwear, nonwovens as well as automotive (through a joint venture with EMS-Chemie AG). Full-Valu provides integrated products and services via two businesses—Adalis Corp., which offers solutions for corrugated and folding carton packaging and engineered wood industries, and a window division, which makes products used for the assembly of insulated glass and windows.
H.B. Fuller’s Specialty unit includes three businesses. Fuller’s consumer unit encompasses adhesives, sealants and coatings for the construction, craftsman and do-it-yourself markets in Asia-Pacific and liquid paint for interior and exterior, architectural, automotive, marine and industrial applications in Latin America. It also includes H.B. Fuller Powder Coatings and Specialty Construction Brands, with Tec products (focused mainly on flooring) and Foster products (mastics, coatings, sealants and adhesives for the thermal insulation, indoor air quality, asbestos abatement and HVAC markets).
In 2005, these units combined for a net revenue increase of 7.3% to $1.512 billion, from $1.410 billion in 2004. Net income improved more than 70% for the company, to $61.6 million.
During the year, H.B. Fuller increased the pace of its mergers and acquisitions activity. In early 2005, the company entered into joint ventures with Sekisui Chemical in Asia. H.B. Fuller merged its adhesives business with Sekisui’s in Japan, creating Sekisui-Fuller Company, Ltd.
In addition, the company acquired assets of Roanoke Companies Group. Roanoke is a manufacturer of pre-mix flooring products sold predominantly through retail channels in North America. H.B. Fuller is hoping that Roanoke’s brand portfolio will complement its TEC and Foster brands, enabling it to achieve a broader presence through consumer markets.
15. SIKA
Sales: $1.29 billion*
HQ: BAAR, SWITZERLAND
Phone: 41-41-768-68-00
Web Site: www.sika.com
Key Personnel: Ernst Bärtschi, CEO; Markus Zenhäusern, CFO; Alexander Bleibler, head of construction chemicals division; Jan Jenisch, head of industry division; Urs Mader; head of R&D; William E. Loven, regional manager North America; Marcel Smit, regional manager Asia/Pacific; Silvio Ponti, regional manager Europe North; and José Luis Vazquez, regional manager Europe South.
Major Products: Adhesives, sealants and related construction chemical products.
New Products: Sika VisoCrete-25 MP, SikaBond-T52FC/-T54 FC, SikaBond Dispenser-5400, SikaGrout-300PT, Sikadur-31 SBA, Sika AnchorFix, Sika Mix&Go, SikaTack-MOVE.
Recent Acquisitions: Fosroc New Zealand.
With subsidiaries in 70 countries and 10,000 employees, Sika AG is a global force behind the manufacture of many types of sealing, bonding and other construction-related products, including adhesives and sealants as well as concrete admixtures, industrial flooring and mortars.
2005 proved to be a successful year for Sika. According to the company’s annual report, above-average progress was realized in Latin America, Eastern Europe and Asia. The advances were led by the company’s two major product groups—Sikaflex sealants and adhesives, and Sika Visco Crete admixture technology.
Sika’s construction division, which includes the bonding and sealing sectors, was up 12.1% in 2005, resulting mainly from the introduction of products and applications in emerging markets including Eastern Europe and China.
During the year, Sika acquired Fosroc New Zealand, making it the market leader in contruction sealants in the Pacific region.
Within the industrial division, which includes Sika’s automotive and automotive aftermarket adhesives businesses as well as the transportation industry business, sales were 12.2% higher than the year before.
16. MASCO
Sales: $1.264 billion
HQ: Taylor,MI USA
Phone: 313-274-7400
Web Site: www.masco.com
Key Personnel: Richard A. Manoogian, chairman of the board and CEO, Masco. Behr Process—Jeffrey D. Filley, president; Christopher E. Jones, vice president of manufacturing and engineering; Scott Richards, SVP, marketing. Vapor Technologies—Michael S. Walsh, Jr., president and CEO; Dan Hellman, marketing manager. Masterchem Industries—Stanley G. Korte president; Jim McDerby, director of operations; Jason Caldwell, plant manager; Sherry Nelms, purchasing; and Jeff Schutte, vice president of marketing.
Major Products: Architectural and decorative paints, coatings and stains.
New Products: Behr Premium Select.
Masco’s decorative architectural sector includes its paint and stains business, spearheaded by high-profile Behr Process Corp., Santa Ana, CA. According to Masco, net sales of architectural coatings, including paints and stains, comprised approximately 10% of the company’s consolidated net sales ($12.6 billion) for the year ended December 31.
During the year, Behr Process Corp., together with MCS, introduced Behr Premium Select, a new line of premium paints exclusively formulated for application in single-family new home construction. MCS offers Behr Premium Select paint as a new installation service for homebuilders.
17. COMEX
Sales: $1.22 billion
HQ: Mexico City, Mexico
Phone: 52-55-5284-1600
Web Site: www.comex.com.mx; www.propaint.com
Key Personnel: Marcos Achar Levy, CEO of Comex; Leon Cohen, managing director of Comex; Kent Child, CEO of Professional Paint; and Dan Colbourne, CFO of Professional Paint.
Major Products: A wide range of coatings and related products, including architectural, automotive and industrial formulations.
Recent Acquisitions: Color Wheel Paint & Coatings.
During the past couple of years Comex has been particularly focused on expanding its business in North America. With the purchase of Professional Paint, Inc. (PPI) in 2004, Comex made its grand entrance into the North America market establishing itself as a major player. As Mexico’s largest paint producer with sales in 2005 of $1.22 billion, Comex has continued its growth initiative in North America with the recent purchase, through PPI, of Color Wheel Paint & Coatings. Based in Orlando, FL, Color Wheel is a major regional manufacturer of architectural paint and coatings. Included in the acquisition are Color Wheel’s plant and 37 service centers.
“The acquisition of Color Wheel further demonstrates our commitment to expanding Comex’s presence throughout North America,” said Marcos Achar, chairman of Comex.
18. ROHM AND HAAS
Sales: $1.158 billion
HQ: Philadelphia, PA USA
Phone: 215-592-3000
Web Site: www.rohmhaas.com
Key Personnel: Raj Gupta, chairman, president and CEO; Michael J. Carr, CFO, coatings business group; Alan Barton, VP and business group executive, coatings; Mike G. Hamilton, VP and business director, powder coatings; John Culbertson, VP and business director, automotive coatings; Thomas P. Frauman, global marketing director, powder coatings; Douglas S. Cinoman, global R&D development director, powder coatings; Mike Jackson, VP of R&D, automotive coatings.
Major Products: Powder and automotive coatings, adhesives and sealants.
Rohm and Haas’ powder and automotive coatings sales were $432 million in 2005, and its ahdesives and sealants unit recorded sales of $727 million. (The company’s coatings business also includes raw materials for use in architectural and functional coatings—although this $2.2 billion business is not included in our ranking.)
Rohm and Haas’ coatings products are sold globally, with approximately 59% of sales in North America, 25% in Europe, 11% in Asia-Pacific and five percent in Latin America.
On the powder coatings side, the company underwent a bit of consolidation due to tough market conditions. Sales fell from $342 million in 2004 to $322 million in 2005. During the year, it consolidated its manufacturing facilities in North America into two sites, closing its Wytheville, VA powder coatings plant. Production has been transferred to its Warsaw, IN and Reading, PA facilities. Rohm and Haas cited skyrocketing raw materials costs, overcapacity caused by a growing number of competitors and an inability to raise prices in a crowded marketplace as the reasons for the decision.
In the UK, Rohm and Haas made plans to shutter its Aldridge, UK powder coatings plant, consolidating its manufacturing facilities in Europe to three sites with production transferred to its other European sites in Germany, Italy and Spain.
However, in the emerging markets of Asia, the company is seeing its business grow as evidenced by the opening of a new manufacturing facility in the Qingpu Industrial Zone of Shanghai, China. In addition, Rohm and Haas continues to expand its coatings growth in the region having invested in new manufacturing capacity in China, India and Taiwan.
19. JOTUN
Sales: $1.042 billion
HQ: Sandefjord, Norway
Phone: 47-3345-6000
Web Site: www.jotun.com
Key Personnel: Odd Gleditsch dy, Jotun’s chairman of the board of directors; Morten Fon, president and CEO; Bjørn Naglestad, group executive vice president, Jotun Dekorativ; Erik Aaberg, group executive vice president, Jotun Paints; Esben Hersve, group vice president, Jotun Coatings; Knut Øivind Malmin, group executive vice president, Jotun Powder Coatings.
Major Products: Decorative paints and marine protective and powder coatings.
New Products: Lady interior wood stain, Benar furniture varnish, Visir Extra, SeaLion fouling release coating.
The Jotun Group, which includes Jotun Dekorativ (24%), Jotun Paints (22%), Jotun Coatings (41%) and Jotun Powder Coatings (13%) business units, posted a record year in 2005 with sales of $1.042 billion. These units are focused on the manufacture and sale of decorative paint (41%), marine coatings (29%), protective coatings (17%) and powder coatings (13%). The group is mainly present in Europe, which as a region represents 56% of its activity. The Far East accounts for 22%, the Middle East 16% and the rest of the world six percent.
The Jotun Group was active on many fronts with all business units having opened new factories in India, Indonesia and China. The new paint manufacturing plant in Zhangjiag and outside Shanghai in China is one of the largest and most advanced paint production sites in China, according to the company, and represents a $30 million investment for the company to serve its growing customer base there.
The group also successfully launched its Jotashield exterior decorative products in the Middle East and Asia. Other new products including Lady interior wood stain, Benar varnish and Visir Extra were launched in Scandinavia. SeaLion fouling release system was introduced in the marine market.
Expanding its reach into the Chinese market, during the year the Jotun Group established a joint venture with COSCO International Holdings Limited in China known as Jotun COSCO Marine Coatings. Each of the shareholders will hold 50% equity interest in this joint venture.
20. BENJAMIN MOORE
Sales: $1 billion*
HQ: MONTVALE, NJ USA
Phone: 201-573-9600
Web Site: www.benjaminmoore.com
Key Personnel: Yvan Dupuy, chairman and CEO; Denis Abrams, president and COO; Don Devine, senior VO and CFO; Chip Siglan, VP of branding services; Barry Chadwick, VP of product development; Robyn Spritzer, S. Mathew, John Canzillotti (key managers architectural coatings); Jeff Spillane, key manager commercial and industrial coatings.
Major Products: Architectural and decorative paints, coatings and finishes and industrial coatings.
New Products: Exterior premium stains, Studio finishes.
Benjamin Moore’s Exterior Stain Collection |
Berkshire-Hathaway-owned Benjamin Moore, a leader in architectural finishes had a busy 2005. During the year, Benjamin Moore and Ace Hardware Corp. formed an alliance enabling qualified Ace retailers to sell the paint manufacturer’s premium products. The companies introduced Benjamin Moore products in qualifying Ace stores on a market-by-market basis throughout the country, the beginning of this year in the Chicago/Southern Wisconsin market. Availability in additional markets will follow in 2007 and beyond.
On the new product front, Benjamin Moore recently launched its Exterior Stain Collection, which includes a full selection of finishes varying in opacity from clear to solid and are available in a wide array of organically-inspired hues.
“Homeowners are upgrading their outside living and garden areas with unrelenting zeal,” said Kurt Denman, product manager. “They’re adding terraces, decks, patios, cabanas, pool houses, gazebos and outdoor kitchens to the tune of $40 billion annually, according to the U.S. Census Bureau. At Benjamin Moore, we’re responding to this growing focus on the expanded outdoors lifestyle with a new generation of products.”
21. AB WILH. BECKER
Sales: $985 million
HQ: Höganäs, SWEDEN
PHONE 46-42-33-85-00
Web Site: www.becker.se
Key Personnel: Ulf G. Lindén, chairman and CEO; Magnus Lindstam, managing director; Ralph Kabalo, key manager, Becker Industrial Coatings; Michael Henderson, key manager, ColArt; Aled Roberts, key manager, Becker Powder Coatings; and Kaj Brandt, key manager, Becker Acroma.
Major Products: Wood finishes, powder coatings and artists materials.
Wholly-owned by Lindéngruppen AB, AB Wilh. Becker has overall responsibility for accounting, finance and information, while each of its business areas—Becker Industrial Coatings (BIC), Becker Acroma and ColArt— conduct their operations with a considerable degree of autonomy. The group has more than 30 production facilities in 15 countries and markets its products worldwide.
AB Wilh. Becker reported another year of strong growth in 2005 with expanding sales in all markets. Sales rose by six percent to $985 million, while comparable earnings for the year grew 53% to $43 million.
“Our philosophy of ‘hurrying slowly’ without undue emphasis on short-term results is continuing to prove successful,” said Magnus Lindstam, managing director.
Beckers is one of Europe’s leading manufacturers of industrial coatings for metal, plastics and wood. BIC forms the largest business area in AB Wilh. Becker. BIC is one of the leaders in the European market for coil coatings. BIC is also a major supplier of specialized industrial finishing systems for metals and plastics.
Commenting on BIC’s results, business area manager, Ralph Kabalo said, “BIC increased sales in all markets in 2005, recording nine percent growth. European and North American markets developed satisfactorily. In China, BIC more than doubled sales and Beckers is the largest foreign coil producer. World sales of special coatings for plastics grew by 37%. New manufacturing capacity is coming on stream in Malaysia, France, Germany and Poland, and is planned for Vietnam.”
During the year, Berger Becker Coatings Pvt. Ltd.—the Indian joint venture company owned by AB Wilh. Becker (51%) and Berger Paints India Ltd. (49%)—has relocated to a larger factory in Goa to meet the need for coil coatings in the region.
22. DAW
Sales: $952.7 million
Deutsche Amphibolin-Werke von Robert
Murjahn Stiftung & Co. KG
HQ: Ober-Ramstadt, Germany
Phone: 06154/71-0
Web Site: www.CAPAROL.de
Key Personnel: Klaus Murjahn, managing director, Caparol Group of companies. Other key personnel: Peter Merviglia, Reinhold Heinzle, Uwe Possin and Rainer Rencker.
Major Products: Facade paint, renders/plasters, interior paints, colorants, alkyd resin range of enamels, acrylic enamels, decorative coatings and industrial coatings.
Recent Acquisitions: Alsecco, ETICS.
DAW, founded in 1895, is the parent company of the Caparol Group, and carries out the central functions such as purchasing, production and finances. The marketing activities are subdivided into six strategic business units—the professional, DIY, wholesale, foreign countries, industrial, and decorating and artist’s paints.
23. HEMPEL
Sales: $814.4 million
HQ: Lyngby, Denmark
Phone: 45-45-93-38-00
Web Site: www.hempel.com
Key Personnel: Pierre Yves Jullien, group president and CEO; Carsten Bennike, group executive vice president supply chain; Kim Junge Andersen, group executive vice president and CFO; Klaus Moller, director group marketing and business development; Martin Wiese, group VP R&D; Klaus Kynding, key manager marine; Svend Johnsen, key manager protective; Lars Hermansen, key manager container; Jacqui Knott, key manager, yacht.
Major Products: Marine, protective, container, decorative and yacht coatings.
During 2005, Hempel celebrated the relaunch of its products and renovated showroom at the company’s Middle East headquaters in Mina Salman Industrial Area, Bahrain.
24. ASIAN PAINTS
Sales: $774.54 million
HQ: MUMBAI, INDIA
Phone: 91-22-39818000
Web Site: www.asianpaints.com
Key Personnel: Ashwin Choski, chairman; Ashwin Dani, vice chairman and managing director; Abhay Vakil, managing director; P.M. Murty, president, decorative (India); J.N. Shahani, vice president, industrial (India); and Jalaj Dani, vice president, international operations.
Major Products: Decorative/architectural and industrial coatings.
New Products: Apex Ultima, Tractor Emulsion, Utsav Acrylic Distemper, Utsav Enamel, Utsav Primer, Vintage Finishes, Fashion Finishes.
As India’s leading paint company, Asian Paints generated $774.54 million in revenue during 2005. Key to the company’s success in 2005 was the launch of several new products in key markets, which has helped Asian Paints to expand. Asian Paints has been performing well on the exterior front with the launch of products like Apex Ultima and Tractor Emulsion, which was launched to upgrade the distemper market, and a number of products in the economy range—‘Utsav’ were launched. Asian Paints also extended its Home Solutions services to ten cities in India.
On the international front, new products and Color World—the dealer tinting system—have been introduced in all the countries where Asian Paints is present. This enabled the company to have a competitive edge at the market place and has given an identity in markets where it has low market share.
Some of the finishes that have been introduced in the international market are Vintage Finishes and Fashion Finishes. The range of Vintage Finishes are meant for exterior surfaces. Already launched in UAE, Bahrain and Oman, this range is available in three different finishes including Stucco, Stone Shield and Tartaruga. Fashion Finishes is a new range of products pioneered by SCIB Paints based in Egypt. This new range of products is now also present in Bahrain and Egypt and is set to be launched in Dubai and Oman. Branded “Xpresions” (except in Egypt, where it is called “Décor”), this product range is targeted at high-end consumers and comes in different effects like metallic, glaze, suede and pearl glaze among others.
25. DNT
Sales: $600 million*
HQ: OSAKA, JAPAN
Phone: 81-6-6466-6641
Web Site: www.DNT.co.jp
Key Personnel: Masfumi Toyomatsu, president and Yasuhide Tanabe, vice president.
Major Products: Heavy duty, industrial, automotive (OEM and refinish) and marine coatings and decorative/architectural paint.
Established in Japan in 1929 as a manufacturer of anti-corrosive paint, DNT’s products range from DIY decorative paint to paint for high-speed trains.
26. TIKKURILA
Sales: $569.76 million
HQ: Vantaa, Finland
Phone: 358-9-85771
FAX: 358-9-8577-6900
Web Site: www.tikkurila.com
Key Personnel: Visa Pekkarinen, president and CEO.
Major Products: Decorative and industrial paint and coatings.
Recent Acquisitions: Kraski Teks.
Recent Divestiture: Tikkurila Coatings Oy.
Owned by Kemira, Tikkurila sells its coatings in the decorative/architectural market and the industrial market (wood finishes and coil coatings). Its 2005 sales were approximately $569.76 million, ahead of 2004 results.
During the year, Tikkurila strengthened its position in Eastern Europe by acuiring paint company Kraski Teks in Russia.
“Tikkurila will strengthen its position in the Russian paint market, which has very strong growth. The acquisition will double our market share in decorative paints and make Tikkurila the clear market leader,” said Visa Pekkarinen, president, Tikkurila Oy. “Kraski Teks is a perfect fit into our portfolio from a strategic point of view, allowing us to claim strong brands in all price segments.”
On the industrial coatings front, Tikkurila signed an agreement to sell its coil coatings business—which had sales of approximately €15 million in 2004—to Teknos Group Oy.
Both Tikkurila’s and Technos’ product range has included coil coatings since the late 1970s. Their combined operations will pool resources and improve efficiency, which should make it a significant and competitive player in Finland, according to the company.
In terms of product news, Tikkurila received an award from the RadTech Europe Association for the development of the Uvitec 3D ultraviolet (UV) coating system, in which curing of waterborne UV lacquer takes place under inert atomosphere in carbon dioxide. The award was presented at the RadTech 2005 Conference.
27. BRILLUX
Sales: $530 million*
HQ: Münster, Germany
Phone: 49-251-7-18-80
Web Site: www.brillux.de
Key Personnel: Peter König, Franz Wilhelm König, Julius Schröder and Michael Thompson.
Major Products: Paints, lacquers, varnishes and adhesives for decorative and industrial application.
Originally known as Hobrecker & König back in the 1880s, Brillux is now in its fourth generation of independent ownership by the König family. Based in Münster, the company has four plants in Germany—Münster, (its main plant for paint, lacquers and varnishes), Herford (plaster and adhesives), Malsch (water-based products) and Unna (industrial lacquers).
28. FORBO
Sales: $505.54 million
HQ: Zurich, SWITZERLAND
Phone: 41 44 868 2525
Web Site: www.FORBO.com
Key Personnel: Hans Peter Ming, chairman; Walter Grüebler, CEO; and Michel Riva, executive vice president, Forbo adhesives.
Major Products: Industrial adhesives.
Forbo makes adhesives for industrial applications including automotive, footwear, packaging, furniture and construction as well as floor and wall covering adhesives, tile adhesives and smoothing compounds. The company also makes intermediate products used in the manufacturing of adhesive products.
29. ORICA
Sales: $434.79 million
HQ: MELBOURNE, AUSTRALIA
Phone: 613 9263
Web Site: www.orica.com
Key Personnel: Peter Bailey, CEO, consumer products; Graeme Jacobs, general manager Dulux Australia; Greg Warren, general manager Dulux New Zealand; Steve Walker, general manager powder coatings; Craig Armstead, coatings marketing director; Christine Cussen, coatings technical director.
Major Products: Decorative and architectural paint, wood care products and powder coatings.
Sales in the paint and wood care segments of Orica’s consumer products business unit remained broadly in line with 2004, according to the company’s annual report. Hampering the market, the company said the Australian retail segment experienced volume declines, compounded by one-time inventory reductions by some major retail customers. These conditions were, however, offset partially by Australian trade business profitability improvement due to strong commercial sector, tactical marketing and efficiency gains. In addition, market share gains and improved performance in its woodcare and New Zealand Paints businesses helped. The powder coatings business displayed continued growth in New Zealand while new product launches and relaunches in Selleys have continued to gain market acceptance.
Success Story: In 2005, Dulux relaunched Wash & Wear 101 with a new “Advanced formula campaign, spearheaded with television advertising, the most creative of which featured a ghost who was unable to penetrate a wall freshly painted with the new advanced product.The campaign was recognized within the Australian advertising and marketing communities, winning many creative awards. Dulux itself, was awarded “Gold” from the Melbourne Advertising and Design Club, as the business “who has recognized that creativity is directly linked to business success and, as such, has achieved outstanding creative work.”
30. BARLOWORLD
Sales: $404 million
HQ: JOHANNESBURG, SOUTH AFRICA
Phone: 27-11-301-4600
Web Site: www.BARLOWORLD.com
Key Personnel: André Lamprecht, CEO; Garth Smith, COO and managing director, Barloworld Coatings Australia; Mike Christie, managing director, Barloworld Plascon SA; Ebrahim Moahemd, executive director, Barloworld Plascon SA and managing director, Barloworld Plascon Africa; Doug Thomas, financial director; and Doug Swanson, managing director, Barloworld Automotive Coatings.
Major Products: Architectural and decorative paint and automotive coatings.
With sales in 2005 of $404 million, Barloworld is the market leader in architectural and automotive coatings in South Africa with factories in Durban, Port Elizabeth, Cape Town and Johannesburg. The company also has operations in Botswana, Malawi, Namibia, Swaziland and Zambia, with sales in these and other sub-Saharan African countries. Its architectural brands include the premium Plascon range as well as Crown, Professional and Polycell. It also supplies specialized coatings in southern Africa to industrial and furniture markets. In automotive, Barloworld supplies both car manufacturers and the refinish industries with the Plascon, Spies Hecker, Standox and DuPont brands in southern Africa.
In Australia Barloworld is the third largest architectural paint manufacturer with factories in Sydney, Melbourne and Brisbane and is looking to expand. As this report goes to press, Barloworld has an offer on the table to acquire Wattyl, Australia’s second largest paint maker. Barloworld has operated in Australia since the acquisition of the Taubmans paint business in 1996. A year later, the company expanded its paint interests through the acquisition of listed company Lanes Limited, which, in addition to its motor retail operations, owned the Bristol paint brand. Subsequently White Knight Paints was added to the coatings business.
31. ARCH
Sales: $358 million
ARCH WOOD PROTECTION & ARCH INDUSTRIAL COATINGS
HQ: NORWALK, CT USA
Phone: 203-229-2900
Web Site: www.archcoatings.it • www.naturalselect.com
Key Personnel: Steve Wisnewski, president, Arch Wood Protection; Ian Hobday, managing director, Arch Industrial Coatings; Huck DeVenzio, marketing, Arch Wood Protection; Petra Deiti, Arch Industrial Coatings; Maurizio Brini, technical director, Arch Industrial Coatings; John Kranjc, technical director, Arch Wood Protection.
Major Products: Wood preservatives and wood coatings.
Arch Chemical’s wood protection and industrial coatings business is a global operation with nine manufacturing sites worldwide. Wood preservative are made in four sites in the U.S. (Conley, GA, Rochester, NY, Kalama, WA and Valparaiso, IN), England and Australia. Industrial coatings are manufactured in Pianoro and Mariano Comese, Italy and Les Mureaux, France.
Arch Industrial Coatings is one of the largest wood coatings suppliers in Italy and France, and is also expanding into Europe, North America, China and South America. Its product roster includes lacquers, topcoats, stains and fine finishes, mainly for fine home and office furniture, picture and door frames and other joinery.
Arch Wood Protection is a supplier of wood preservative to wood treatment firms worldwide, including copper-azole wood preservative.
In response to concerns about VOCs emitted by traditional, solvent-based coatings, Arch Industrial Coatings developed Sayerlack, water-based coatings used in nursery furniture and other applications. Eliminating solvent emissions during the factory process of coating furniture, non-toxic and odor-free furniture has become an important selling point for the company in Europe.
32. KELLY-MOORE
Sales: $345 million
HQ: SAN CARLOS, CA USA
Phone: 650-592-8337
Web Site: www.kellymoore.com
Key Personnel: Herbert R. Giffins, president and CEO; Dan Stritmatter, CFO; Todd Gentry, vice president-sales; Steve DeVoe, vice president–store operations; Cindie Rutledge, vice president–stores accounting; Jim Maul, vice president–information systems; Doug Merrill, vice president-manufacturing; Mark Zielinski, director of marketing- sundry procurement; and Dan Englert, vice president-technology and raw materials procurement.
Major Products: Architectural decorative coatings/ industrial and high-performance coatings.
Kelly-Moore, an employee-owned paint company since 1946, has 154 retail stores and three major manufacturing facilities.
33. WATTYL
Sales: $335.63 million
HQ: BLACKTOWN, AUSTRALIA
Phone: 02 9621 6255
Web Site: www.WATTYL.com.AU
Key Personnel: John Ingram, chairman; John Nolan, director and CEO; John Foyle, CEO of Wattyl New Zealand; David Marginson, general manager, Wattyl Australia Pty; Chris Muir, group operations manager; and John Neumann, CEO of Solver.
Major Products: Decorative paints, varnishes, lacquers and special purpose protective coatings.
Wattyl is a paint and surface coatings company with manufacturing, sales and distribution facilities in Australia and New Zealand. The company produces a broad range of paints, varnishes, lacquers and special purpose protective coatings. Wattyl’s products are used by individuals, contract painters and industrial customers. With operations in Australia and New Zealand, Wattyl employs more than 2,000 people.
Wattyl currently ranks as Australia’s second largest paint manufacturer. However, as this report went to press the company was still considering a takeover bid by Barloworld, Australia’s third larget paint maker.
34. KCC
Sales: $312 million*
HQ: SEOUL, SOUTH KOREA
Phone: 82-22-3480-5711/4
Web Site: www.kccworld.co.kr
Key Personnel: MongJin Chung, chairman and CEO; Chun Ki Kim, president; Mong Ik Chung, head of administration; and Young Ho Kim, head of overseas business division.
Major Products: Marine paints, cargo container coatings, industrial coatings and decorative coatings.
New Products: Supro Dew-Zero anti-condensation paint, Sense Clear Deluxe finishing paint, Supro Pop Environment Friendly Deluxe water-based paint.
35. CMP
Sales: $310 million*
CHUGOKU MARINE PAINT
HQ: TOKYO, JAPAN
Phone:: 81-3-3506-5880
Web Site: www.cmp.co.jp
Key Personnel: Tetsuo Yamazumi, president.
Major Products: Marine, container and industrial coatings.
Chugoku develops novel and environmentally friendly products such as tin-free self polishing antifouling paints and water-based container coatings. Chugoku has developed numerous paint systems offering protection against corrosion while also reducing the number of required coats, benefiting the environment.
36. HELIOS
Sales: $285.9 million
HQ: DOMZALE, SLOVENIA
Phone: 386-1-722-4000
Web Site: www.helios.si
Key Personnel: Uros Slavenic, president of management board; Marko Vresk, vice president; Matjaz Hafner, vice president; Ales Skok, executive director for decorative coatings; Stevo Buinac executive director for metal coatings; Mladen Mihalec, executive director for wood coatings; Peter Zupan, executive director for car refinishing coatings; and Dasa Tomazin, executive director for powder coatings.
Major Products: Decorative paints, automotive OEM and refinish, industrial coatings and powder coatings.
Recent Acquisitions: Odilak.
One of Helios’ facilities. |
Recently, the Helios Group acquired an 82% stake in the Russian decorative finishes producer Odilak, based in Odincovo, Moscow. The purchase aims at strengthening Helios’ market presence in the former Soviet Union, which is one of the three most important markets for the group including the EU and Southeastern Europe.
According to Urus Slavinec, president of Helios and winner of Manager magazine’s Manager of the Year title, 2005 was “one of the most demanding years for the companies of the Helios Group.” This was due to the instability and high price level of raw materials as a result of high prices of energy sources, as well as the additional enquiry by the large markets in Asia, he said. Despite these operating conditions, Helios managed to increase sales revenue 36% more than 2004. In volume this represents more than 127,000 tons of products.
“We achieved best results in decorative coatings, industrial coatings, mostly powder coatings,” said Slavinec. “Exports represented approximately 80% of complete sales.”
For the year ahead, Slavinec said Helios’ goals are set high and need to be reached in order to remain a notable player in the world market of paints and enamels. “We plan to increase our sales by at least ten percent,” he said, and continued, “We shall focus all our attention on searching for the answers to the basic developmental questions in the frame of EU directives and strive to reach the anticipated growth on the markets, in spite of instable economic conditions.”
37. DYRUP
Sales: $280.96 million
HQ: SøBORG, DENMARK
Phone: 45-39-57-93-00
Web Site: www.dyrup.com
Key Personnel: Eric Holm, president and CEO; Hanne Lund, executive vice president; Roeland Meijers, VP, marketing and application and product development; Allan Dehn Søgaard, VP, information technology; Nis Petersen, VP, corporate purchase; Henrik D. S. Nielsen, VP, supply chain; Francois Corda, manager, France and Belgium; Sten Chrisdam, manager, Nordic; Volker Thiele, manager, Germany and Austria; Ireneusz Struk, manager, Poland; and Eduardo Cevasco, manager, Portugal and Spain.
Major Products: Architectural paint, coatings and stains for DIY, professional and industrial customers.
Dyrup is a supplier of wood care products and paints that are designed to protect, preserve and beautify rooms and surfaces. Dyrup markets its products and services through nine subsidiaries in Europe and through a selection of distributors in and outside Europe, and also has several license agreements.
The company’s principal sales channels are the DIY retail trade, the professional trade, and industrial customers. DIY accounts for approximately 45% of Dyrup’s revenue, the professional trade for about 40% and industrial customers for about 15%. Sales of wood care and other solutions for outdoor applications account for approximately 70% of revenue.
Dyrup’s position and image in various markets are linked to the group’s strong, international brands, Bondex and Goril, which are supplemented by a few local brands.
38. DUNN-EDWARDS
Sales: $280 million*
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