YEAR ESTABLISHED: 1802
HEADCOUNT: 58,000 t (2008: 60,000)
Coatings REVENUEs: $3.429 billion t (2008: $4.3)
TotaL REVENUEs: $26.109 billion t (2008: $30.5)
Net income: $1.769 billion t (2008: $2.0)
R&D Budget: $1.378 billion t (2008: $1.393)
• Performance Coatings: 13%
• Performance Chemicals: 19%
• Agriculture & Nutrition: 31%
• Electronic & Communication Technologies: 7%
• Performance Materials: 18%
• Safety & Protection: 11%
Ellen Kullman, chair of the board and CEO; Terry Caloghiris, president, DuPont Performance Coatings; Boo Ching Chong, VP, DuPont Performance Coatings, Asia Pacific; Timothy McCann, VP, DuPont Performance Coatings, Americas; John McCool, VP, DuPont Performance Coatings, EMEA.
DuPont Performance Coatings is the world’s leading motor vehicle coatings suppliers. Products offered include high performance liquid and powder coatings for motor vehicle OEMs, the motor vehicle after-market, and general industrial applications, such as coatings for heavy equipment, pipes and appliances and electrical insulation.
Sales of $3.4 billion in 2009 were down 21 percent when compared to prior year, reflecting a 20 percent decline in volume. The decline in volume reflects the impact of fewer motor vehicle and industrial truck builds of motor vehicle OEMs, and lower sales of industrial and after-market products in all regions due to the economic recession. The North American automotive industry continued to experience structural changes, including the loss of U.S. market share by U.S. automakers. In 2009 the global production of automobiles and light trucks declined by 14 percent reflecting declines of 33 percent in North America, and 10 percent in the rest of the world, which was partially offset by an increase in production of 44 percent in Greater China. DuPont said its sales to OEMs improved substantially during the second half of 2009, mostly due to the impact of government incentives programs and higher sales in Asia Pacific. However, sales of after-market and industrial coatings have experienced a slower recovery.
Automotive industry production forecasts for 2010 projects a global increase of about nine percent, with increased production in all regions. For 2010, DuPont Performance Coatings expects sales increases that will exceed the OEMs build growth due to expected recovery of OEMs and light truck markets.
A new DuPont laboratory and manufacturing facilities in China helped accelerate the adoption of coatings with improved environmental performance by Chinese automakers. During the year. DuPont’s technical center, located in Shanghai, and the manufacturing operations in Changchun allow nearby DuPont scientists to respond to local customers’ needs quickly and efficiently.
For example, Shanghai General Motors uses advanced DuPont finishes, made in China, on its Cruze model. The new Shanghai General Motors plant at Shenyang is located just west of the DuPont Changchun plant, and uses the DuPont water-based coatings produced at that facility. Shanghai General Motors is a joint venture between General Motors and the Shanghai Automotive Industry Corporation. The site has an annual capacity of 150,000 cars.
During 2009 DuPont’s auto OEM coatings business was recognized for its quality service and products. DuPont Automotive OEM Coatings was named a General Motors Supplier of the Year in recognition of its performance as a global provider of finishes and marked the second year in a row that DuPont Automotive OEM Coatings earned this distinction. DuPont supplies GM in all regions of the world with a variety of products including undercoats, color coats and clear coats. Honda America also named DuPont Automotive OEM Coatings as Supplier of the Year from among 2,400 companies in its supplier base. DuPont was one of 12 to earn the award. DuPont received recognition for top performance in the areas of quality, delivery and productivity improvement.
On the aftermarket side of the business, DuPont Performance Coatings formed an agreement with American Honda Motor Company, Inc., and its new Body Shop Recognition Program. The program is an updated version of the previous Honda and Acura programs. The complete program requirements say body shops must be sponsored by a Honda or Acura dealer that is a participant in American Honda’s Collision Select program; body shops can be a dealer-owned or independent shop; body shops must adopt the OEConnection Collision Link software and conduct a minimum of one transaction per week through the Collision Link system within the first 30 days. The Collision Link software is free to body shops from participating dealers; and body shops must be recognized as a participant in the DuPont Performance Alliance.
During the year, DuPont Refinish introduced “Go Pro,” a virtual bodyshop aimed at informing bodyshops on how to increase productivity in all business areas. It shows how DuPont Refinish can help promote bodyshop businesses more efficiently, improve the quality of service offered to customers and attract new customers.
The interactive tour has nine steps, each relating to a different bodyshop section. The steps detail how bodyshops can benefit from DuPont Refinish in day-to-day business. “Go Pro” reinforces that DuPont Refinish is the productive and dynamic after-market paint brand of DuPont.
During the year, DuPont introduced better performing DuPont Teflon coatings made without PFOA. Using new, proprietary and patented scratch resistance technology, DuPont launched Teflon Platinum Plus coatings, the first Teflon coating made without PFOA, according to the company. This new coating provides a 50% improvement in scratch resistance compared to current Teflon Platinum coatings. With enhanced scratch resistance, Teflon Platinum Plus is metal utensil safe and designed to look newer longer.
In an effort to maximize oil productivity, DuPont has innovated StreaMax, a coating for downhole tubes, designed to help oil companies in the Middle East and Mexico and other growing regions maximize oil production by increasing well productivity, reducing corrosion, and keeping maintenance costs down. In the next three years, business is expected to grow five-foldversus 2009.