Two new investments in Colombia’s growing $1 billion paint and coatings market will replace more paint imports and will offer consumers more options for color mixing.
One investment is a new paint manufacturing facility in Bogota, being completed by Orlando-based Lanco Paints and Coatings with local construction materials partner Sumicol. No investment figure has been made public. The new venture, called Corlanc, will continue to supply the Sodimac home improvement centers in Colombia. Lanco struck a deal in 2011 to supply Sodimac through an arrangement with Sodimac partner Cornona, in which paint-maker Corona holds 55 percent of the equity of the venture, and Lanco holds 45 percent, according to a company statement at the time in Colombia. Corona in June 2013 launched a new line of ceramic coatings under the Evitamanchas, or no-marks, name.
Lanco will substitute imported paint with its new Colombia production, a U.S. company source said. Lanco also manufactures in Orlando; San Lorenzo, Puerto Rico; Santo Domingo, Dominican Republic and Alajuela, Costa Rico. The company distributes from Miami, Panama City, Managua and Guatemala City. Lanco has several dozen retail stores in Puerto Rico, as well.
Another new investment in Colombia is by MicroBlend, of Gilbert, AZ, which is partnering with Momentive Specialty Chemicals, of Columbus, OH, to provide paint mixing stations to Sodimac stores in Colombia. The new venture, called MicroBlend Colombia S.A.S., will be based in Cali and support MicroBlend’s “Automated Paint Machine System,” which eliminates the need for canned mixing bases.
MicroBlend initiated its sales through Sodimac Colombia in 2010, aiding Sodimac in its brand launch of the Glam Kolor architectural line. MicroBlend utilizes Evonik colorants and DuPont titanium dioxide in its mixing system. New partner Momentive also has locations in several Brazilian cities.
Sodimac’s latest annual report indicates that the company expanded its Colombian network by six stores during 2012 to a total of 29 stores in 16 cities. Sodimac Colombia launched $161 million in Colombian bonds last year to fund the expansion.
Sodimac, which has been owned by the Chilean retail conglomerate Falabella since 2003, also operates home improvement stores in Argentina, Chile, Peru and more recently, Brazil. Sodimac sales in 2012 amounted to approximately $5.1 million through 136 stores, according to a recent Falabella report. During 2012, Sodimac added a store in Argentina and several in Chile.
Earlier this year Sodimac moved into Brazil, through a 50.1 percent acquisition of the Dicio chain, in a $164 million deal. The Dicio chain has 58 stores and sales of $333 million. Falabella has plans to increase its various types of stores and malls, including Sodimac, through a $3.7 billion investment over the five year period ending in 2017. Sodimac also launched a $121 million bond in Chile in January of this year.
During the 1990s, Falabella brought Home Depot into Chile and later bought out the stores. Now Falabella is the second largest retailer in Chile. In April, Falabella sold $500 million in international bonds.
New Investments in Colombian Paint Market
Two new investments in Colombia’s growing paint and coatings market – a paint manufacturing facility in Bogota and a paint mixing station JV – will replace more paint imports and offer consumers more color mixing options.
By Charles W. Thurston, Latin Correspondent
Published September 11, 2013
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