Welcome Guest to Coatings World    Login || Register
Last Updated Tuesday, March 31 2015

Latin America Report

The accelerating pace of infrastructure development in the Mercosul countries of South America is helping to drive up the demand for industrial paints and coatings beyond the more traditional demands of key industrial sectors, said Douglas Leslie, the general manager of marine industrial coatings at Akzo Nobel, in Sao Paulo.

By Charles Thurston

Published August 11, 2005
Related Searches: Industrial Coatings
Led largely by Brazil, the Mercosul free trade bloc also encompasses the countries of Argentina, Chile, Bolivia, Paraguay and Uruguay. Infrastructure sectors on the rise in the region range from oil and gas, to roads and bridges, to water and energy.

"Brazil, in particular, is lacking a lot of infrastructure in the energy and road sectors, among others, so there is a big potential for new industrial coatings in that area-it's just a question of how soon it will happen," said Leslie.

One factor that is increasing infrastructure spending in the region is an increase in the practice of privatization and private sector concessions, Leslie noted. In Brazil alone, there are billions of dollars worth of new infrastructure projects being developed with private sector capital. One project in Brazil which is giving a "boost" to the market for protective coatings is a set of three semi-submergible oil and gas processing platforms that the state oil company Petroleos Brasileiros, or Petrobras, is installing in its Campos field, off the coast of Rio de Janeiro, he said.

Brazil is also reassuming its role as the economic engine that drives Latin growth. The country's gross domestic product is expected to expand by 3.5-4.0% this year, following an economic contraction in 2003, predict economists at UBS Warburg Securities, of New York. International investors are warming to this growth, and are expected to make $12.5 billion worth of direct foreign investments this year, up from $10.1 billion last year, the UBS team said.

For Latin America as a whole, infrastructure is booming.

As of October, 168 projects in the region worth an estimated $34.4 billion were seeking funding for improvements in the road, rail, airport, seaport, water and sewage, and general buildings sectors, according to William Reinhardt, editor of Public Works Financing's 2003 Major Projects Survey.

Regional Industries Are Growing
In addition to the demand being presented by new infrastructure projects, several key industries in the region are growing at a healthy pace, providing a more stable growth in demand for coatings, Leslie said.

"The agriculture, mining, and pulp and paper industries are pretty strong right now, which is helping raise demand," he noted. "The petrochemical sector-particularly in Brazil and Argentina–also is coming along now, so we can expect coatings consumption growth over the next three to four years, at least," he added.

Increased Brazilian exports of manufactured products from these and other industrial sectors also are helping drive industrial coatings demand, Leslie said. "As a result of international trade association linkages-like the pacts between Mercosul and the European Union and Asean-there is a tendency to increase the exports of products including finished goods, to Europe and Asia," he said.

Akzo Nobel is helping to add value to these exports.

"With the exception of one or two specialty products, Akzo Nobel produces all its industrial coatings in Brazil, and exports them to the other Mercosul countries," Leslie said.

The company's research and development facility in Brazil also is helping customers apply the latest international technology to protective coatings usage, for both initial and maintenance applications.

"We provide a technology platform for our customers," he added.

blog comments powered by Disqus

Receive free Coatings World emails
Sign up now to receive the weekly newsletter, and more!

Enter your email address:
Company Spotlight
AZ Electronic Materials Co., Ltd.
No. 458-6, Sinsing Road Hu Kou Township Hsinchu Country 303, Taiwan
Hsinchu Country, Taiwan, 303
View Profile
Siltech Corporation
225 Wicksteed Avenue
Toronto, ON, M4H 1G5
View Profile
Micro Powders, Inc.
580 White Plains Rd.
Tarrytown, NY, 10591
View Profile
BASF Corporation
100 Campus Drive
Florham Park, NJ, 07932
View Profile
Shamrock Technologies, Inc.
Foot of Pacific Street
Newark, NJ, 07114
View Profile
18F, No.85, Sec. 1, Chung-Shiao E. Rd.
Taipei, Taiwan, 100
View Profile
Houchi Chemical Co., Ltd
No.56, Fu Chow Street
Taipei, Taipei, 100
View Profile
Sunin Machine Co., Ltd.
No.96, Chiao Ho Rd ,Chungho Dist
New Taipei City, Taiwan , 235
Taiwan Roc
View Profile
Lubrizol Advanced Materials, Inc.
9911 Brecksville Road
Cleveland, OH, 44141
View Profile
Follow Coatings World On