07.18.07
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.
Sales: $7.8 billion
G.J. Hans Wijers, chairman and CEO. General managers: Rinus Rooseboom, car refinishes; Jan Andersson, decorative coatings international; Leif Abildgaard, decorative coatings Europe; Robert Torba, industrial finishes; Bill McPherson, marine and protective coatings; and Rob Molenaar, powder coatings.
Sales rose 12% to $7.8 billion in 2006 for Akzo Nobel. The decorative coatings business unit accounted for 36% of Sales while the industrial activities unit represented 31%, the marine and protective coatings unit 18%, and car refinishes the remaining 15%.
A key growth driver in 2006 for Akzo Nobel was its strength in Asian markets such as China, Korea and Vietnam. The company opened two new plants in China, for powder and decorative coatings.
Akzo Nobel became the number one decorative coatings player in Canada through the acquisition of Sico Inc., and the company also established itself among the top-three players in the U.S. woodcare market with the purchase of the Flood Group. The company also strengthed its presence in emerging markets-where more than a third of its coatings revenues are generated-by acquiring leading Czech coatings company Balakom and the Ukraine's Khimrezerv.
According to the company, its wood, coil, powder and protective coatings businesses all grew well in Western Europe and car refinishes made a successful turnaround. In addition, the company's specialty plastics operation was dynamic growth engine with its coatings for Apple's sought-after products and mobile phones from Nokia, Motorola and Sony Ericsson.
Sales: $6.921 billion
Ceresit CM90 Easy Flex PLUS Tile Adhesive; Pattex PL 700 Assembly Adhesives; Pritt Pen Roller; Loctite Super Glue Brush-on; Ceresit F158 Special Glazing Sealant for self-cleaning glass; Thomsit XXL Floor Leveling Compound; Pattex No More Nails Assembly Adhesive Tape; Terostat Direct Glazing Adhesives; Loctite 3876; P3-Neutracare 3000 series; Liofol Smart Cure PUR Adhesive; Macromelt 6800 series; and Sanicare HM4450.
Sales of the consumer and craftsmen adhesives business sector rose by 13.5% to roughly $2.5 billion. The main growth driver was Eastern Europe, according to the company. Henkel's businesses in Latin America, Asia and the Middle East also performed above average while growth in Western Europe, on the other hand, was restrained. In North America, performance was influenced by declining levels of activity in housing construction.
The Henkel technologies business sector increased Sales by 8.2% to roughly $4.4 billion. Double-digit Sales growth rates were recorded for the Eastern Europe, Latin America and Asia-Pacific regions. In addition, good growth was achieved in Western Europe and North America.
The consumer and craftsmen adhesives business sector further expanded its building adhesives business in Europe through the acquisition of ICI Paints Europe's Cimsec brand marketed in Austria and Hungary, and the establishment of a joint venture in Kazakhstan. The company also acquired Alba Adhesivos, the market leader for craftsmen adhesives in the Brazilian market, with annual Sales of approximately $40 million.
Sales: $6.387 billion
Decorative paint and coatings (ICI Paints) and adhesives (National Starch).
ICI Group manufactures primarily decorative paint and coatings under its ICI Paints business unit and adhesives under National Starch's adhesives division. Both units combined to generate $6.387 billion for the group in 2006.
ICI's focus on emerging markets continues to deliver good results with sales from the ICI Paints and National Starch businesses in developing countries in Asia growing over 14%. Both National Starch and ICI Paints opened a new manufacturing center in China for resins and other polymers.
ICI Paints' growth in developing markets, particularly Asia, Eastern Europe and Latin America, was supported by a number of investments, including the completion of a second paint manufacturing plant in Vietnam.
During the year, ICI sold its Cimsec business, part of ICI Paints Europe, to Henkel. The company said it sold the tile adhesives and grouts business, which has annual sales of approximately $25 million, in order to focus on its decorative paint brands in Central and Eastern Europe.
In North America, business was adversely affected by a downturn in the housing market, which resulted in modest overall profit improvement in 2006 for ICI Paints, the company said.
National Starch made a number of investments in innovation and growth during 2006. A new customer application and process simulation center was opened in March at the adhesives site in Kleve, Germany. The state-of-the-art facility houses more than 20 R&D and technical service specialists focused on adhesive technologies for the pressure sensitive, woodworking and building components markets.
National starch also opened its expanded adhesives, synthetic polymers and electronic materials manufacturing facilities at its Salisbury, North Carolina, U.S. plant.
Sales: $6.348 billion*
Sherwin-Williams' coatings sales in 2006 topped $6.3 billion. (The company's ranking excludes estimated sales from non-paint items and other administrative items reported by the company.)
Net sales for the company's Paint Stores Group, which serves architectural paint customers and industrial maintenance and marine coatins users in North America, increased 11.3% to $4.84 billion in 2006. The company opened 120 new stores and closed three during the year.
Net sales for Sherwin-Williams' Consumer Group decreased 1.9% to $1.36 billion for the year as a result of sluggish sales to DIY customers and the elimination of a portion of a paint program with a large retail customer, the company said.
The Global Group increased net sales $153.7 million, or 10.7%, to $1.59 billion in 2006. In addition to well established operations in countries like Brazil, Argentina, Chile, Mexico and the UK, the company's presence in Southeast Asia continues to grow. The Global Group continued its aggressive program of new branch openings within and outside North America, adding 41 net new branches during the year.
HQ: Pittsburgh, PA USA
Phone: 412-434-3131
Web site: www.ppg.com
PPG's coatings sales increased in 2006 to $6.324 billion from $5.566 billion in 2005. Its coatings activities are divided into two segments: industrial coatings (automotive OEM coatings, industrial coatings, packaging coatings) and performance and applied coatings (aerospace coatings, architectural coatings, automotive refinish).
Industrial coatings sales increased $315 million, or 11%, in 2006 to $3.236 billion. Performance and applied coatings sales increased $420 million, or 16%, to $3.088 billion.
In 2006, PPG focused on growing organically and through acquisition. It opened Alltech Engineered Finishes in the Hsiao Kang District of Kaohsiung, Taiwan. This newly constructed facility serves the fastener and small parts industry by applying PPG's electrocoat and dip-spin coatings. The plant coats parts for construction, industrial, electronics and auotmotive applications.
In McCarran, NV USA, PPG began constructing a 95,000-square foot architectural coatings manufacturing facility. Expected to begin production near the end of 2007, the plant will manufacture more than 15 million gallons of water-based latex paint per year at full capacity.
On the acquisition front, PPG acquired Ameron's performance coatings and finishes business, which manufacturs protective and marine coatings with production sites in the U.S., Europe, Australia and New Zealand; AWC Coatings, an architectural paint distributor with stores in the midwest and southwest U.S.; Claywood Beheer, an automotive refinish coatings distributor with a distribution center and stores in The Netherlands; Dongju, a South Korean manufacturer and distributor of automotive OEM, refinish, industrial and packaging coatings; Eldorado, a manufacturer of paint strippers and technical cleaners for the aerospace industry; IDI Sunpool, a Shanghai-based manufacturer and distributor of architectural coatings; Panhandle Paint FL, an architectural paint distributor with stores located near Panama City, FL USA; Protec, a manufacturer and distributor of automotive refinish, light industrial and high-performance coatings serving Australia and New Zealand; and Spectra-Tone, an architectural paint manufacturer with company-owned stores in the western U.S.
Sales: $4.095 billion
Charles O. Holliday Jr., chairman and CEO; Ellen J. Kullman, executive vice president; Thomas M. Connelly, Jr., executive vice president and chief innovation officer; Terry Caloghiris, group vice president, DuPont Coatings & Color Technologies; Marty M. McQuade, vice president/general manager, DuPont Automotive Systems; John G. McCool, vice president/general manager, DuPont Refinish Systems; Ferdinand Bauerdick, vice president/general manager, DuPont Advanced Coatings Systems and DuPont Performance Coatings Europe
DuPont Performance Coatings, which is part of the company's Coatings and Color Technologies platform recorded sales of $4.095 billion dollors in 2006, up from $3.78 billion in 2005.
The company continued to deliver breakthrough solutions for finishes in the automotive OEM industry. In October, Automotive News nominated the business' EcoConcept finishing system for a PACE (Premier Automotive Suppliers Contribution to Excellence) award. The system provides cost and environmental benefits by consolidating paint lines in car and light truck assembly plants.
China's economic boom has also provided DuPont with growth opportunities. In May the company broke ground on a coatings plant in Shanghai, set to open in late 2007. This plant brings the number of DuPont finishes-related investments in China to ten.
DuPont also formed a joint venture with Russian coatings manufacturer, Russkie Kraski Corp. The new company, DuPont Russian Coatings LLC, will supply local and international car makers in Russia, Belarus and Ukraine with coatings and technical support. Russkie Kraski is the Russian Federation's largest manufacturer of automotive coatings.
Sales: $3.008 billion
Major Products: Industrial and consumer coatings and related products sold through a number of subsidiaries operating around the world.
Sales: $2.978 billion
With sales of nearly $3 billion, Valspar achieved growth of 9.7% in 2006. The paints segment, which includes the company's architectural and automotive refinish products, delivered Valspar's strongest growth in 2006 at 13.4%. The company partnered with its largest customer, Lowe's Companies, to transition Lowe's nationwide premium paint line to the Valspar brand. Valspar also broadened the reach of its automotive refinish product line including the Valspar Refinish, De Beer and House of Kolor brands, through launches in the UK, Australia and Thailand.
In the coatings segment, which consists of the wood, coil, general industrial and packaging product lines, sales grew by 7% over last year.
In July, Valspar acquired an 80% interest in Huarun Paints, a leading supplier of furniture, decorative wood and architectural coatings in China, from Champion Regal, a Hong Kong-based investment company. Huarun Paints achieved sales of approximately $180 million in 2005. Products are sold primarily through an extensive network of distributors and retail paint stores throughout China. Huarun provides Valspar with its first resin manufacturing plant in China.
In October, Valspar announced the acquisition of H.B. Fuller's powder coatings business, which represents its first powder manufacturing capacity in Europe. The powder coatings business had net sales of approximately $75 million in 2005 and serves customers in 26 countries from manufacturing facilities in the U.S. and the UK.
Additionally, the company agreed to enter into a joint venture with Tekno S.A. to supply coil coatings in Brazil.
Sales: $2.935 billion
Part of BASF's Performance Products segment, BASF Coatings reported net sales of $2.935 billion in 2006, up from $2.714 billion in 2005.
According to BASF's annual report, in the area of automotive OEM coatings, business grew in China, Eastern Europe and South America, whereas business in Japan, Western Europe and the U.S. declined. BASF also expanded its system supplier business, which enables its customers to reduce the overall costs of coating processes.
In automotive refinish coatings, BASF increased earnings in all regions. High demand in the commercial transport sector contributed to this, as did expansion of business with body shops of major automotive manufacturers.
Earnings in industrial coatings also surpassed those of the previous year, as growing coil-coating exports to Eastern Europe compensated for weaker business in Japan and North America (NAFTA).
In the architectural coatings business in South America, BASF improved earnings with its Suvinil brand.
BASF plans to focus on expanding its presence in the growth markets of Eastern Europe and Asia, particularly China and India.
Under its new slogan, "BASF Automotive Solution. Performance Passion Succes," BASF launched its "Integrated Process II" at the sixth CAR symposium in Bochum, Germany in 2006, expanding its innovations for the automotive industry. According to the company, using this new system can save materials and expenses in automotive OEM coating applications because the functions of the filler, or second coat, are performed by the basecoat, or third coat.
Also in 2006, BASF Coatings Services Poland signed an agreement with IBERIA Motor Company for the technical and commercial approval of Glasurit's products as well as services offered by BASF Coatings Services Company. The agreement regulates the cooperation in the field of usage and sales of Glasurit within the SEAT network in Poland.
As a result of the agreement, BASF Coatings Services obtained the opportunity to cooperate with all the dealers of SEAT and each bodyshop of this car make.
Sales: $2.386 billion
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 R. Jacobs, industrial coatings.
Histor Highlights, Guittet Horus, Sigma S2U Allure, Freitag range.
SigmaKalon, a worldwide player in decorative, marine, protective and industrial coatings, is present in 40 countries, with a focus on the European, Asian and African markets. The company reported 2006 sales of approximately $2.386 billion.
SigmaKalon and Univer signed an agreement to form a 50:50 joint venture company, to sell decorative and industrial coatings in the Italian market. The joint venture company is called SigmaKalonUniver S.p.A. Univer will contribute its existing coatings business to the joint venture company. SigmaKalon will contribute its existing Italian decorative coatings business. Univer has a manufacturing facility at Cavallirio in Northern Italy and sells decorative and industrial coatings. The Univer company has 62 employees and the Univer group has sales of approximately 25 million. SigmaKalon has decorative sales in Italy of approximately 14 million and operates under the Sigma Coatings brand.
In 2006 Sigma Kalon and Bollig & Kemper GmbH & Co. KG also reached an agreement for the acquisition by SigmaKalon of its coil coatings activities. With this acquisition, Sigma Kalon Business Unit Industrial Coatings intends to enforce its coil coatings activities in general and to enter the aluminium segment of the coil market. The contract includes the sale of products, technology and customer contracts of the Bollig & Kemper coil division. Turnover of that division in 2005 was approximately 18 million. Sigma Kalon also bought the technology of the coil coatings and the related resins.
Lastly, SigmaKalon opened a new R&D center in Kunshan, China to service SigmaKalon's marine and protective coatings business in northern Asia. Representing an investment of over $1 million on construction and equipment, the center employs 28 chemists. Its equipment is capable of reproducing the harshest conditions in marine and petrochemical environments, according to the company.
Sales: $2.2 billion*
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 $22.9 billion in 2006. Coatings World estimates 3M's sales of coatings, adhesives and sealants at approximately $2.2 billion, up from $2 billion in 2005.
Sales: $1.795 billion
Sales of paint and coatings in 2006 for Kansai Paint were valued at $1.795 billion. Automotive OEM and refinish coatings make up 52% of Kansai's coatings activity. Industrial coatings account for 22%, decorative coatings another 21% while marine and protective coatings make up five percent.
As for new investments in 2006, Kansai Paint constructed a new plant in Changsha City to accomodate dramatically increasing automobile production in China, and Hunan Xiangiang Kansai Paint is now up and running. Kansai also completed construction of facilities and launched production for a new Goodlass Nerolac plant in Delhi, India, which targets the growth market. In addition, the company upped its investment ratio in the top Indian powder coating manufacturer, Polycoat Powders, Ltd., from 40% to 100%.
In the decorative coatings segment, Kansai Paint acquired Malaysian paint manufacturer Sime Coatings, to establish a new subsidiary company, Kansai Coatings Malaysia Sdn. Bhd. (Capital ratios stood at 45% for Kansai Paint and 55% for Goodlass Nerolac.)
On the whole, as a result of expanded production, particularly in the automotive coatings and industrial coatings segments, Kansai Paint reported positive overseas sales growth through its subsidiaries.
Sales: $1.732 billion*
Scratch Guard Coat
During 2006, Nippon Paint acquired Rohm and Haas Company's automotive coatings business, and made plans to introduce NB Coatings, Inc. to serve North American customers.
Nippon Paint purchased the wholly-owned Rohm and Haas business in North America and Rohm and Haas' 50% share of the companies' joint ventures, Morton Nippon Coatings in North America and Nippon Bee Chemical in Japan. This purchase and introduction of NB Coatings unites the decade-long partnering organizations under one strategy to create a leading position in the North American plastic automotive coatings market.
Nippon Paint also partnered with Nissan Motor Co. and together developed the world's first clear paint that repairs scratches on painted car surfaces.
Scratch Guard Coat contains a newly developed high elastic resin that helps prevent scratches from affecting the inner layers of a car's painted surface. With Scratch Guard Coat a car's scratched surface will return to its original state anywhere from one day to a week, depending on temperature and the depth of the scratch, according to the company.
The water-repellent paint also has a higher resistance to scratches compared with conventional clear paints, the company also said. For example, a vehicle painted with Scratch Guard Coat will have only one-fifth the abrasions caused by a car washing machine compared with a car covered with conventional clear paint.
Scratch Guard Coat is effective for about three years and will be offered only in some Japan models of the X-Trail sport-utility vehicle, planned for sale soon; overseas plans are still undecided.
Sales: $1.5 billion*
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.
Compared to the previous year, Sika's construction division, which includes the bonding and sealing sectors, boosted net sales by 39.7%. As in the prior year Sika VisoCrete admixture technology, which minimize production complexities and costs for customers, drove much of the success.
Within the industry division, which includes Sika's automotive and automotive aftermarket adhesives business as well as the transportation industry business, sales were up by 15.4% over the previous year.
On the acquisition front, from Huber +Suhner, based in Switzerland, Sika acquired the Sucoflex unit, which manufactures and sells construction sealants, including sealing tapes for joints, facades and damp rooms, as well as high-quality roofing membranes.
From DuPont, Sika acquired its protective coatings business in Germany. This unit, a leader in special coatings that resist corrosion and protect buildings, develops, produces and sells highly-resistant Unitherm, Permacor, Epiter, Asplit and Betonol coatings for floors, concrete and steel.
Sika also took Proxan Dichtstoffe GmbH in Greiz, Thuringia. The company develops, produces and sells sealants made from polysulfide and two-component polyurethane for manufacturing insulated glass and sealing construction joints.
Sales: $1.472 billion
Adhesives, sealants and coatings.
Roanoke Companies Group and Henkel's insulating glass sealant business.
H.B. Fuller Company is a global manufacturer and marketer of adhesives and other specialty chemical products. The company is managed through two operating segments-Global Adhesives and Full-Valu/Specialty. Global Adhesives manufacturers adhesives for assembly, converting, nonwoven, footwear and automotive applications, and represents 69% of total sales. Full-Valu/Specialty services several markets including specialty construction, insulating glass, packaging solutions, paints ,and construction, craftsmen and DIY, and represents 31% of total sales. Together these segments posted sales of $1.472 billion in 2006, up 2.5% over the previous year.
During the year, H.B. Fuller acquired Roanoke Companies Group, Inc., a manufacturer of pre-mix grouts, mortars and other products designed to enhance the installation of flooring systems. They are focused particularly on the retail home improvement market segment whose brand portfolio includes Tile Perfect, CHAPCO, Color Caulk and AIM. Roanoke will become part of H.B. Fuller's Specialty Construction Brands, Inc. (SCB) business unit within the Full-Valu/Specialty Group.
H.B. Fuller also acquired Henke's insulating glass sealant business, which manufactures sealants for windows used in both residential and commercial construction. They have a strong market presence in Europe and an expanding presence in Asia. Through this acquisition, they will become part of H.B. Fuller's Window business, within the company's Full-Valu/Specialty segment.
In November, Al Stroucken, H.B. Fuller's chairman, CEO and president, left the company after nine years at the helm. He was replaced by Michele Volpi, president and CEO.
Sales: $1.4 billion
Marcos Achar, CEO of Comex; Leon Cohen, president, Mexico; Kent Child, president, U.S. and Canada.
Comex, the largest paint producer in Central and South America, has increased its investments in the U.S. over the past several years through the acquisition in 2004 of Professional Paint Inc. (PPI), with headquaters in Denver, CO. PPI's network of regional paint formulators sell under different brands in the U.S. including Color Wheel in Florida, Frazee in California, Kwal Paint in Colorado, Parker Paint in the U.S. Pacific Northwest and General Paint in Canada. Comex's industrial line of paint, coatings and building products complement PPI's residential and commercial paint lines.
In 2006, both companies were consolidated forming Comex Group. Both now report as one group, posting nets sales of $1.4 billion in 2006, up from $1.22 billion in 2005. Broken down, 75% of sales came from the architectural segment, 15% from industrial, 5% from OEM (excluding automotive) and 5% from auto refinish.
The company operates four plants in Mexico City, seven in the U.S. and two in Canada.
Sales: $1.277 billion
Architectural and decorative paints, coatings and stains.
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 ($12.778 billion) for 2006.
Sales: $1.249 billion
The Jotun Group, which includes Jotun Dekorativ, Jotun Paints, Jotun Coatings and Jotun Powder Coatings business units, posted a record year in 2006 with sales of $1.249 billion. These units are focused on the manufacture and sale of decorative paint, marine coatings, protective coatings and powder coatings . 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.
During the year, Jotun opened a new paint manufacturing plant in Zhangjiagang outside Shanghai in China. The plant, which is one of the largest and most advanced paint production sites in China, is a $30 million investment for Jotun and was necessary in order to serve an increasing number of customers, according to the company.
Jotun paints and protects 20% of the world's merchant fleet, which means more than 10,000 vessels. China is one of the most important countries in the marine world market.
In China the Jotun Group now has two companies including Jotun COSCO Marine Coatings Co. Ltd. and Jotun Coatings Co. Ltd.
In addition to investing in the manufacturing plant, which has a production capacity of 70 million liters a year, Jotun will set up a new research and development facility in China.
In addition, during the next two years, Jotun Coatings will supply paint systems to Kashagan in the Caspian sea, the world's largest offshore oil field. Jotun's involvement in the project covers supply vessels, offshore barges, tank ships, pipe trenches and industrial buildings.
The first contract, worth $1.52 million is with Aker Kvrner, a Norwegian supplier of engineering and construction services, which will design and build one of the platform decks. Jotun Coatings in Norway will supply all the coatings for this project.
At the same time, Jotun Italy secured a contract through Bonatti, one of the major contractors in Italy and Jotun Boya in Turkey will supply all the coatings for the construction of the North Caspian Consortium's onshore facilities in Kashagan. That contract is worth $10 million.
Sales: $1.190 billion*
Ulf G. Lindn, 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.
Coil coatings, wood finishes, powder coatings and artists materials.
Wholly-owned by Lindngruppen 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 2006 with expanding sales in all markets. Sales rose to approximately $1.190 billion.
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.
In 2006, BIC opened a new 5,500 square meter plant in Malaysia. In addition to serving the fast-growing Malaysian coil coatings market, the plant supplies plastic coatings for mobile phones and exports to the markets of Singapore, Thailand and Indonesia. BIC said it is also doing significant coil coatings business in Vietnam and is identifying a suitable site for future manufacturing facilities.
BIC, through Becker Powloki Przemyslow, also started construction on its new factory in Tarnow, in southern Poland. Becker Powloki Przemyslow was formed in 2000 to serve the Polish coil and special markets.
Sales: $1.130 billion
Facade paint, renders/plasters, interior paints, colorants, primers, alkyd resin range of enamels, acrylic enamels, decorative coatings and industrial coatings.
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.
Sales: $1.055 billion
Architects Collection, Emotions Collection
Rohm and Haas' powder coatings sales were $334 million in 2006, and its adhesives and sealants unit recorded sales of $723 million. (The company's coatings business also includes raw materials for use in architectural and functional coatings-although this $2.6 billion business is not included in our ranking.) Sales for powder coatings were up three percent from 2005, reflecting selling price increases and improved mix partially offset by lower demand, especially in Europe, according to the company's annual report. Sales for adhesives and sealants were down one percent due to lower demand, the company said.
Also of note during 2006, Rohm and Haas sold its automotive business to Nippon Paint. The company was also active launching new products for powder coatings. The Architects Collection provides specifically designed finishes for architectural components, with outstanding exterior durability and protection. The Emotions Collection emphasizes decorative effects for a variety of interior and exterior applications such as house and office furniture, shop fittings, domestic appliances, lighting and garden furniture. Rohm and Haas is also introducing a portfolio collection offering a comprehensive range in polyester, hybrid, acrylic and epoxy systems for the broader powder coating market. This collection includes a full range of RAL colors in glossy, semi-gloss and matt finishes.
Sales: $980 million
Marine, protective, container, decorative and yacht coatings.
With high levels of trade and construction activity worldwide, Hempel was able to take advantage of the worldwide growth, delivering a 19% increase in turnover and 23% higher volumes, which totalled 244 million liters. The company delivered net sales of $980 million in 2006. Its business is broken into four operating segments including marine/yacht (46%), industrial (32%), container (14%) and architectural/decorative (8%).
Hempel acquired Lacor in Merzig, Germany. Lacor specializes in industrual and light industry protective coatings. The company also opened a new factory in Vietnam.
On the new product front, Hempel launched Hempadur Fibre 4760 late in 2006, and it contains special fibres which make it a highly durable and flexible coating. It also has a high resistance to corrosion, making it ideal for ballast tanks and other complex structures where maintenance demands are high. Hempasil was also introduced and was found to have significantly lower skin friction compared to conventional tin free antifoulings. For a large container ship, the required propulsion power was reduced by up to 10.6%. These results can be directly translated into fuel savings according to FORCE Technology who performed the reproducible and verifiable tests.
The company also celebrated the relaunch of its products and renovated showroom in Bahrain. In addition, as part of the company's plan to regionalize its operations, the shareholders of Danish Paints Middle East Holdings (DPME), Hempel's regional holding company and the shareholders of Hempel Bahrain agreed on a m
| 1. |
Akzo Nobel (The Netherlands) |
$7.8 billion |
| 2. |
Henkel (Germany) |
$6.921 billion |
| 3. |
ICI Group (UK) |
$6.387 billion |
| 4. |
Sherwin-Williams (USA) |
$6.348 billion* |
| 5. |
PPG Industries (USA) |
$6.324 billion |
| 6. |
DuPont (USA) |
$4.095 billion |
| 7. |
RPM (USA) |
$3.008 billion |
| 8. |
Valspar (USA) |
$2.978 billion |
| 9. |
BASF Coatings (Germany) |
$2.935 billion |
| 10. |
SigmaKalon (The Netherlands) |
$2.386 billion |
| 11. |
3M (USA) |
$2.2 billion* |
| 12. |
Kansai Paint (Japan) |
$1.795 billion |
| 13. |
Nippon Paint (Japan) |
$1.732 billion* |
| 14. |
Sika (Switzerland) |
$1.5 billion* |
| 15. |
H.B. Fuller (USA) |
$1.472 billion |
| 16. |
Comex (Mexico) |
$1.4 billion |
| 17. |
Masco (USA) |
$1.277 billion |
| 18. |
Jotun (Norway) |
$1.249 billion |
| 19. |
AB. Wilh. Becker (Sweden) |
$1.190 billion* |
| 20. |
DAW (Germany) |
$1.130 billion |
| 21. |
Rohm and Haas (USA) |
$1.055 billion |
| 22. |
Hempel (Denmark) |
$980 million |
| 23. |
Benjamin Moore (USA) |
$950 million* |
| 24. |
Asian Paints (India) |
$893 million |
| 25. |
Kemira Coatings (Finland) |
$707 million |
| 26. |
Forbo (Switzerland) |
$584 million |
| 27. |
Brillux (Germany) |
$538 million* |
| 28. |
Dai Nippon Toryo (Japan) |
$516 million* |
| 29. |
Chugoku Marine Paint (Japan) |
$453 million* |
| 30. |
Orica (Australia) |
$403 million |
| 31. |
Barloworld (South Africa) |
$400 million* |
| 32. |
Arch (USA) |
$358 million |
| 33. |
KCC (South Korea) |
$350 million* |
| 34. |
Wattyl (Australia) |
$320 million |
| 35. |
Berger (India) |
$306 million |
| 36. |
Helios (Slovenia) |
$303 million |
| 37. |
Kelly-Moore (USA) |
$300 million |
| 38. |
Dunn-Edwards (USA) |
$298 million* |
| 39. |
Yasar (Turkey) |
$285 million* |
| 40. |
Renner (Brazil) |
$282 million* |
| 41. |
Dyrup (Denmark) |
$280 million |
| 42. |
Altana (Germany) |
$277 million |
| 43. |
National Paints (Jordan) |
$260 million |
| 44. |
DIC (Japan) |
$250 million |
| 45. |
CIN (Portugal) |
$248 million |
| 46. |
Flugger (Denmark) |
$244 million |
| 47. |
Rock Paint (Japan) |
$211 million* |
| 48. |
Grebe Group (Germany) |
$210 million* |
| 49. |
Tigerwerk (Austria) |
$188 million* |
| 50. |
Yung Chi (Taiwan) |
$182 million* |
| 51. |
Industrias Titan (Spain) |
$180 million* |
| 52. |
DPI (South Korea) |
$166 million |
| 53. |
Cloverdale Paint (Canada) |
$165 million* |
| 54. |
Shinto Paint (Japan) |
$161 million* |
| 55. |
M.A.B. Paints (USA) |
$155 million* |
| 56. |
Ace Paint (USA) |
$150 million* |
| 57. |
Vogel Paint (USA) |
$147 million |
| 58. |
Boero Group (Italy) |
$145 million |
| 59. |
Looser Holding AG (Switzerland) |
$141 million |
| 60. |
Toa Paints (Thailand) |
$140 million* |
| 61. |
Tohpe (Japan) |
$133 million* |
| 62. |
Empils (Russia) |
$116.2 million |
| 63. |
Russian Coatings (Russia) |
$116.1 million |
| 64. |
Spraylat (USA) |
$110 million |
| 65. |
Inver SpA (Italy) |
$106 million |
| 66. |
RedSpot (USA) |
$105 million* |
| 67. |
Tnemec (USA) |
$96 million |
1. AKZO NOBEL
Sales: $7.8 billion
HQ: Arnhem, The Netherlands
Phone: 31-26-3664433
Web site: www.akzonobel.com
Key Personnel:
G.J. Hans Wijers, chairman and CEO. General managers: Rinus Rooseboom, car refinishes; Jan Andersson, decorative coatings international; Leif Abildgaard, decorative coatings Europe; Robert Torba, industrial finishes; Bill McPherson, marine and protective coatings; and Rob Molenaar, powder coatings.Major Products:
Decorative paint; products for industrial applications including powder and specialty coatings; car refinishes; marine, protective and aerospace coatings; and coatings relatted products such as wood and building adhesives.New Products:
Next generation of marine coating Intersleek; the Duraflex non-stick powder coating for cookware; and an ultra-fast drying automotive topcoat from Sikkens called Autoclear UV.2006 Acquisitions:
Sico Inc. (the largest coatings company in Canada), the Flood Company in the U.S., Balakom in the Czech Republic and the Ukraine's Khimrezerv.Sales rose 12% to $7.8 billion in 2006 for Akzo Nobel. The decorative coatings business unit accounted for 36% of Sales while the industrial activities unit represented 31%, the marine and protective coatings unit 18%, and car refinishes the remaining 15%.
A key growth driver in 2006 for Akzo Nobel was its strength in Asian markets such as China, Korea and Vietnam. The company opened two new plants in China, for powder and decorative coatings.
Akzo Nobel became the number one decorative coatings player in Canada through the acquisition of Sico Inc., and the company also established itself among the top-three players in the U.S. woodcare market with the purchase of the Flood Group. The company also strengthed its presence in emerging markets-where more than a third of its coatings revenues are generated-by acquiring leading Czech coatings company Balakom and the Ukraine's Khimrezerv.
According to the company, its wood, coil, powder and protective coatings businesses all grew well in Western Europe and car refinishes made a successful turnaround. In addition, the company's specialty plastics operation was dynamic growth engine with its coatings for Apple's sought-after products and mobile phones from Nokia, Motorola and Sony Ericsson.
2. HENKEL
Sales: $6.921 billion
HQ: Dusseldorf, Germany
Phone: 49-211-797-3000
Web site: www.henkel.com
Key Personnel:
Ulrich Lehner, chairman of the management board of Henkel KGaA; Alois Linder, executive vice president, consumer and craftsmen adhesives; and Jochen Krautter, executive vice president, Henkel Technologies.Major Products:
Adhesives and sealant technologies sold in the industrial, professional and DIY markets.
New Products:
Ceresit CM90 Easy Flex PLUS Tile Adhesive; Pattex PL 700 Assembly Adhesives; Pritt Pen Roller; Loctite Super Glue Brush-on; Ceresit F158 Special Glazing Sealant for self-cleaning glass; Thomsit XXL Floor Leveling Compound; Pattex No More Nails Assembly Adhesive Tape; Terostat Direct Glazing Adhesives; Loctite 3876; P3-Neutracare 3000 series; Liofol Smart Cure PUR Adhesive; Macromelt 6800 series; and Sanicare HM4450. 2006 Acquisitions:
Alba Adhesivos in Brazil and the Cimsec brand marketed in Austria and Hungary.Sales of the consumer and craftsmen adhesives business sector rose by 13.5% to roughly $2.5 billion. The main growth driver was Eastern Europe, according to the company. Henkel's businesses in Latin America, Asia and the Middle East also performed above average while growth in Western Europe, on the other hand, was restrained. In North America, performance was influenced by declining levels of activity in housing construction.
The Henkel technologies business sector increased Sales by 8.2% to roughly $4.4 billion. Double-digit Sales growth rates were recorded for the Eastern Europe, Latin America and Asia-Pacific regions. In addition, good growth was achieved in Western Europe and North America.
The consumer and craftsmen adhesives business sector further expanded its building adhesives business in Europe through the acquisition of ICI Paints Europe's Cimsec brand marketed in Austria and Hungary, and the establishment of a joint venture in Kazakhstan. The company also acquired Alba Adhesivos, the market leader for craftsmen adhesives in the Brazilian market, with annual Sales of approximately $40 million.
3. ICI
Sales: $6.387 billion
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:
Decorative paint and coatings (ICI Paints) and adhesives (National Starch).ICI Group manufactures primarily decorative paint and coatings under its ICI Paints business unit and adhesives under National Starch's adhesives division. Both units combined to generate $6.387 billion for the group in 2006.
ICI's focus on emerging markets continues to deliver good results with sales from the ICI Paints and National Starch businesses in developing countries in Asia growing over 14%. Both National Starch and ICI Paints opened a new manufacturing center in China for resins and other polymers.
ICI Paints' growth in developing markets, particularly Asia, Eastern Europe and Latin America, was supported by a number of investments, including the completion of a second paint manufacturing plant in Vietnam.
During the year, ICI sold its Cimsec business, part of ICI Paints Europe, to Henkel. The company said it sold the tile adhesives and grouts business, which has annual sales of approximately $25 million, in order to focus on its decorative paint brands in Central and Eastern Europe.
In North America, business was adversely affected by a downturn in the housing market, which resulted in modest overall profit improvement in 2006 for ICI Paints, the company said.
National Starch made a number of investments in innovation and growth during 2006. A new customer application and process simulation center was opened in March at the adhesives site in Kleve, Germany. The state-of-the-art facility houses more than 20 R&D and technical service specialists focused on adhesive technologies for the pressure sensitive, woodworking and building components markets.
National starch also opened its expanded adhesives, synthetic polymers and electronic materials manufacturing facilities at its Salisbury, North Carolina, U.S. plant.
4. SHERWIN-WILLIAMS
Sales: $6.348 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:
ProGreen 200; ArmorSeal 1K Waterborne Urethane; Fast Clad ER; Minwax Hardwood Floor Reviver; Pratt & Lambert Porcelain Interior Wall Finish; Krylon Camoflage Paint; Krylon Outdoor Spaces; Krylon Brights Fluorescent Pens; Dupli-Color Car Art Temporary Paint; Dupli-Color Shield; Dupli-Color Hot Tires; Sher-Kem High Gloss Metal Finishing Enamel; Polane Solar Refelective Enamel; Sher-Wood Hi-Bild PreCat Lacquer snd Sher-Wood Ultra-Cure Pigmented Waterborne UV for wood.Sherwin-Williams' coatings sales in 2006 topped $6.3 billion. (The company's ranking excludes estimated sales from non-paint items and other administrative items reported by the company.)
Net sales for the company's Paint Stores Group, which serves architectural paint customers and industrial maintenance and marine coatins users in North America, increased 11.3% to $4.84 billion in 2006. The company opened 120 new stores and closed three during the year.
Net sales for Sherwin-Williams' Consumer Group decreased 1.9% to $1.36 billion for the year as a result of sluggish sales to DIY customers and the elimination of a portion of a paint program with a large retail customer, the company said.
The Global Group increased net sales $153.7 million, or 10.7%, to $1.59 billion in 2006. In addition to well established operations in countries like Brazil, Argentina, Chile, Mexico and the UK, the company's presence in Southeast Asia continues to grow. The Global Group continued its aggressive program of new branch openings within and outside North America, adding 41 net new branches during the year.
5. PPG
Sales:
$6.324 billionHQ: 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; Dennis Kovalsky, vice president, automotive coatings; Michael H. McGarry, vice president, coatings, Europe, and managing director, Europe; David P. Morris, vice president, aerospace; Viktor R. Sekmakas, vice president, coatings, and managing director, Asia-Pacific; Scott B. Sinetar, vice president, architectural coatings, North America; Jorge A. Steyerthal, vice president, coatings, and managing director, Latin America; Marc P. Talman, vice president, packaging coatingsMajor Products:
Architectural/decorative paint, coatings and stains, automotive OEM and refinish coatings, industrial coatings, packaging coatings and aerospace coatings.2006 Acquisitions:
Ameron's performance coatings and finishes business; AWC Coatings; Dongju; Eldorado; IDI Sunpool; Panhandle Paint FL; Protec; and Spectra-Tone.PPG's coatings sales increased in 2006 to $6.324 billion from $5.566 billion in 2005. Its coatings activities are divided into two segments: industrial coatings (automotive OEM coatings, industrial coatings, packaging coatings) and performance and applied coatings (aerospace coatings, architectural coatings, automotive refinish).
Industrial coatings sales increased $315 million, or 11%, in 2006 to $3.236 billion. Performance and applied coatings sales increased $420 million, or 16%, to $3.088 billion.
In 2006, PPG focused on growing organically and through acquisition. It opened Alltech Engineered Finishes in the Hsiao Kang District of Kaohsiung, Taiwan. This newly constructed facility serves the fastener and small parts industry by applying PPG's electrocoat and dip-spin coatings. The plant coats parts for construction, industrial, electronics and auotmotive applications.
In McCarran, NV USA, PPG began constructing a 95,000-square foot architectural coatings manufacturing facility. Expected to begin production near the end of 2007, the plant will manufacture more than 15 million gallons of water-based latex paint per year at full capacity.
On the acquisition front, PPG acquired Ameron's performance coatings and finishes business, which manufacturs protective and marine coatings with production sites in the U.S., Europe, Australia and New Zealand; AWC Coatings, an architectural paint distributor with stores in the midwest and southwest U.S.; Claywood Beheer, an automotive refinish coatings distributor with a distribution center and stores in The Netherlands; Dongju, a South Korean manufacturer and distributor of automotive OEM, refinish, industrial and packaging coatings; Eldorado, a manufacturer of paint strippers and technical cleaners for the aerospace industry; IDI Sunpool, a Shanghai-based manufacturer and distributor of architectural coatings; Panhandle Paint FL, an architectural paint distributor with stores located near Panama City, FL USA; Protec, a manufacturer and distributor of automotive refinish, light industrial and high-performance coatings serving Australia and New Zealand; and Spectra-Tone, an architectural paint manufacturer with company-owned stores in the western U.S.
6. DUPONT
Sales: $4.095 billion
HQ: Wilmington, DE
Phone: 302-774-1000
Web site: www.performancecoatings.dupont.com
Key personnel:
Charles O. Holliday Jr., chairman and CEO; Ellen J. Kullman, executive vice president; Thomas M. Connelly, Jr., executive vice president and chief innovation officer; Terry Caloghiris, group vice president, DuPont Coatings & Color Technologies; Marty M. McQuade, vice president/general manager, DuPont Automotive Systems; John G. McCool, vice president/general manager, DuPont Refinish Systems; Ferdinand Bauerdick, vice president/general manager, DuPont Advanced Coatings Systems and DuPont Performance Coatings EuropeMajor Products:
Automotive OEM and refinish coatings and industrial finishes.DuPont Performance Coatings, which is part of the company's Coatings and Color Technologies platform recorded sales of $4.095 billion dollors in 2006, up from $3.78 billion in 2005.
The company continued to deliver breakthrough solutions for finishes in the automotive OEM industry. In October, Automotive News nominated the business' EcoConcept finishing system for a PACE (Premier Automotive Suppliers Contribution to Excellence) award. The system provides cost and environmental benefits by consolidating paint lines in car and light truck assembly plants.
China's economic boom has also provided DuPont with growth opportunities. In May the company broke ground on a coatings plant in Shanghai, set to open in late 2007. This plant brings the number of DuPont finishes-related investments in China to ten.
DuPont also formed a joint venture with Russian coatings manufacturer, Russkie Kraski Corp. The new company, DuPont Russian Coatings LLC, will supply local and international car makers in Russia, Belarus and Ukraine with coatings and technical support. Russkie Kraski is the Russian Federation's largest manufacturer of automotive coatings.
7. RPM INTERNATIONAL INC.
Sales: $3.008 billion
HQ: Medina, OH USA
Phone: 330-273-5090
Web site: www.rpminc.com
Key personnel: Frank C. Sullivan, president and CEO; Ronald A. Rice, executive vice president and COO; P. Kelly Tompkins, executive vice president and chief administrative officer; and Robert L. Matejka, vice president, CFO and controller; Key managers: John J. McLaughlin, DAP; Thomas E. Reed, Rust-Oleum; Charles G. Pauli, RPM II; Jeffrey L. Korach, Tremco; David P. Reif, StonCor.
Major Products: Industrial and consumer coatings and related products sold through a number of subsidiaries operating around the world.
New Products: DAP's ALEX Fast-Dry Caulk, Bondo's Laminex Lexzar Gel Coat for boat building and Rust-Oleum's Epoxy-Shield concrete coatings.
2006 Acquisitions: UK-based The Watco Group; India's Kemrock Industries (14.99% JV); Nu-Chem's fireproofing assets; Permaquik; UK-based The Dane Group's fluorescents business; and UK-based Tor Coatings.
In 2006 RPM's industrial segment and consumer segment combined sales totaled $3.008 billion, up from $2.556 billion in 2005.
RPM made several acquisitions during the year. illbruck Sealant Systems, a $190 million manufacturer of high-performance sealants and installation systems that is based in Cologne, Germany, operates as part of RPM's Tremco organization. U.S.-based Tamms Industries, a $20 million manufacturer of high-performance restoration, protection and waterproofing products for various segments of the concrete industry was acquired by RPM's Euclid Chemical Company subsidiary. RPM's Rust-Oleum subsidiary acquired the UK-based Watco Group, which manufactures and markets industrial coatings and is a leading supplire of concrete floor coatings in the UK. Three smaller acquisitions include A/D Fire Protection Systems, a Canadian manufacturer of specialty architectural fireproofing materials, was acquired by the Carboline subsidiary; Custom Building Products' ready-mix patch and repair product line acquired by RPM's DAP subsidiary; and the Vandex Group of companies, a Swiss company that provides specialty products for waterproofing, concrete protection and repair, which now operates as part of the RPM II Group.
8. VALSPAR
Sales: $2.978 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; Rolf Engh, executive VP; 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:
Architectural, automotive refinish, wood, coil, general industrial and packaging.2006 Acquisitions:
Huarun Paints; H.B. Fuller's powder coatings business.With sales of nearly $3 billion, Valspar achieved growth of 9.7% in 2006. The paints segment, which includes the company's architectural and automotive refinish products, delivered Valspar's strongest growth in 2006 at 13.4%. The company partnered with its largest customer, Lowe's Companies, to transition Lowe's nationwide premium paint line to the Valspar brand. Valspar also broadened the reach of its automotive refinish product line including the Valspar Refinish, De Beer and House of Kolor brands, through launches in the UK, Australia and Thailand.
In the coatings segment, which consists of the wood, coil, general industrial and packaging product lines, sales grew by 7% over last year.
In July, Valspar acquired an 80% interest in Huarun Paints, a leading supplier of furniture, decorative wood and architectural coatings in China, from Champion Regal, a Hong Kong-based investment company. Huarun Paints achieved sales of approximately $180 million in 2005. Products are sold primarily through an extensive network of distributors and retail paint stores throughout China. Huarun provides Valspar with its first resin manufacturing plant in China.
In October, Valspar announced the acquisition of H.B. Fuller's powder coatings business, which represents its first powder manufacturing capacity in Europe. The powder coatings business had net sales of approximately $75 million in 2005 and serves customers in 26 countries from manufacturing facilities in the U.S. and the UK.
Additionally, the company agreed to enter into a joint venture with Tekno S.A. to supply coil coatings in Brazil.
9. BASF COATINGS
Sales: $2.935 billion
HQ: Menster, Germany
Phone: 49 2501-14-0
Web site: www.basf-coatings.com
Key personnel:
Jahn Raimer, CEO, BASF Coatings AG; Klaus-Peter Lbbe, 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.Part of BASF's Performance Products segment, BASF Coatings reported net sales of $2.935 billion in 2006, up from $2.714 billion in 2005.
According to BASF's annual report, in the area of automotive OEM coatings, business grew in China, Eastern Europe and South America, whereas business in Japan, Western Europe and the U.S. declined. BASF also expanded its system supplier business, which enables its customers to reduce the overall costs of coating processes.
In automotive refinish coatings, BASF increased earnings in all regions. High demand in the commercial transport sector contributed to this, as did expansion of business with body shops of major automotive manufacturers.
Earnings in industrial coatings also surpassed those of the previous year, as growing coil-coating exports to Eastern Europe compensated for weaker business in Japan and North America (NAFTA).
In the architectural coatings business in South America, BASF improved earnings with its Suvinil brand.
BASF plans to focus on expanding its presence in the growth markets of Eastern Europe and Asia, particularly China and India.
Under its new slogan, "BASF Automotive Solution. Performance Passion Succes," BASF launched its "Integrated Process II" at the sixth CAR symposium in Bochum, Germany in 2006, expanding its innovations for the automotive industry. According to the company, using this new system can save materials and expenses in automotive OEM coating applications because the functions of the filler, or second coat, are performed by the basecoat, or third coat.
Also in 2006, BASF Coatings Services Poland signed an agreement with IBERIA Motor Company for the technical and commercial approval of Glasurit's products as well as services offered by BASF Coatings Services Company. The agreement regulates the cooperation in the field of usage and sales of Glasurit within the SEAT network in Poland.
As a result of the agreement, BASF Coatings Services obtained the opportunity to cooperate with all the dealers of SEAT and each bodyshop of this car make.
10. SIGMAKALON
Sales: $2.386 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 R. Jacobs, industrial coatings.Major Products:
Decorative, marine, protective and industrial coatings.
New Products:
Histor Highlights, Guittet Horus, Sigma S2U Allure, Freitag range.2006 Acquisitions:
Acquisition of stakes in two leading Slovakian distributors; 50/50 joint venture with Univer to create a leader in the Italian coatings market; acquisition of decorating centers in France; acquisition of B&K business in Germany; joint venture with Shanghai IVY to sell decorative coatings in the Chinese market; and the acquisition of majority stake in Variosseau, the Surinamese market leader.SigmaKalon, a worldwide player in decorative, marine, protective and industrial coatings, is present in 40 countries, with a focus on the European, Asian and African markets. The company reported 2006 sales of approximately $2.386 billion.
SigmaKalon and Univer signed an agreement to form a 50:50 joint venture company, to sell decorative and industrial coatings in the Italian market. The joint venture company is called SigmaKalonUniver S.p.A. Univer will contribute its existing coatings business to the joint venture company. SigmaKalon will contribute its existing Italian decorative coatings business. Univer has a manufacturing facility at Cavallirio in Northern Italy and sells decorative and industrial coatings. The Univer company has 62 employees and the Univer group has sales of approximately 25 million. SigmaKalon has decorative sales in Italy of approximately 14 million and operates under the Sigma Coatings brand.
In 2006 Sigma Kalon and Bollig & Kemper GmbH & Co. KG also reached an agreement for the acquisition by SigmaKalon of its coil coatings activities. With this acquisition, Sigma Kalon Business Unit Industrial Coatings intends to enforce its coil coatings activities in general and to enter the aluminium segment of the coil market. The contract includes the sale of products, technology and customer contracts of the Bollig & Kemper coil division. Turnover of that division in 2005 was approximately 18 million. Sigma Kalon also bought the technology of the coil coatings and the related resins.
Lastly, SigmaKalon opened a new R&D center in Kunshan, China to service SigmaKalon's marine and protective coatings business in northern Asia. Representing an investment of over $1 million on construction and equipment, the center employs 28 chemists. Its equipment is capable of reproducing the harshest conditions in marine and petrochemical environments, according to the company.
11. 3M
Sales: $2.2 billion*
HQ: St. Paul, MN USA
Phone: 888-364-3577
Web site: www.3m.com
Key personnel:
George W. Buckley, chairman/CEO/president; Frederick J. Palensky, EVP, R&D and chief technology officer; 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; Michael A. Kelly, 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 $22.9 billion in 2006. Coatings World estimates 3M's sales of coatings, adhesives and sealants at approximately $2.2 billion, up from $2 billion in 2005.
12. Kansai Paint
Sales: $1.795 billion
HQ: Osaka, Japan
Phone: 81-06-6203-5531
Web site: www.kansai.co.jp
Key personnel:
Shoju Kobayashi, president; Toshinobu Otani, senior managing director; Managing directors: Yuzo Kawamori; Shinichi Hamamatsu; Kazuhiro Fjita; Akifumi Fujita; Koichi Imada; Osama Isozaki; and Yuzo Kawamori.Major Products:
Automotive OEM and refinish coatings, industrial coatings, decorative paint, marine and protective coatings.2006 Acquisitions:
Sime Coatings of MalaysiaSales of paint and coatings in 2006 for Kansai Paint were valued at $1.795 billion. Automotive OEM and refinish coatings make up 52% of Kansai's coatings activity. Industrial coatings account for 22%, decorative coatings another 21% while marine and protective coatings make up five percent.
As for new investments in 2006, Kansai Paint constructed a new plant in Changsha City to accomodate dramatically increasing automobile production in China, and Hunan Xiangiang Kansai Paint is now up and running. Kansai also completed construction of facilities and launched production for a new Goodlass Nerolac plant in Delhi, India, which targets the growth market. In addition, the company upped its investment ratio in the top Indian powder coating manufacturer, Polycoat Powders, Ltd., from 40% to 100%.
In the decorative coatings segment, Kansai Paint acquired Malaysian paint manufacturer Sime Coatings, to establish a new subsidiary company, Kansai Coatings Malaysia Sdn. Bhd. (Capital ratios stood at 45% for Kansai Paint and 55% for Goodlass Nerolac.)
On the whole, as a result of expanded production, particularly in the automotive coatings and industrial coatings segments, Kansai Paint reported positive overseas sales growth through its subsidiaries.
13. NIPPON PAINT
Sales: $1.732 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.
New Products:
Scratch Guard Coat2006 Acquisitions:
Rohm and Haas automotive coatingsDuring 2006, Nippon Paint acquired Rohm and Haas Company's automotive coatings business, and made plans to introduce NB Coatings, Inc. to serve North American customers.
Nippon Paint purchased the wholly-owned Rohm and Haas business in North America and Rohm and Haas' 50% share of the companies' joint ventures, Morton Nippon Coatings in North America and Nippon Bee Chemical in Japan. This purchase and introduction of NB Coatings unites the decade-long partnering organizations under one strategy to create a leading position in the North American plastic automotive coatings market.
Nippon Paint also partnered with Nissan Motor Co. and together developed the world's first clear paint that repairs scratches on painted car surfaces.
Scratch Guard Coat contains a newly developed high elastic resin that helps prevent scratches from affecting the inner layers of a car's painted surface. With Scratch Guard Coat a car's scratched surface will return to its original state anywhere from one day to a week, depending on temperature and the depth of the scratch, according to the company.
The water-repellent paint also has a higher resistance to scratches compared with conventional clear paints, the company also said. For example, a vehicle painted with Scratch Guard Coat will have only one-fifth the abrasions caused by a car washing machine compared with a car covered with conventional clear paint.
Scratch Guard Coat is effective for about three years and will be offered only in some Japan models of the X-Trail sport-utility vehicle, planned for sale soon; overseas plans are still undecided.
14. SIKA
Sales: $1.5 billion*
HQ: Baar, Switzerland
Phone: 41-41-768-68-00
Web site: www.sika.com
Key personnel:
Ernst Brtschi, CEO; Markus Zenhusern, 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 Jos Luis Vazquez, regional manager Europe South.Major Products:
Adhesives, sealants and related construction chemical products.2006 Acquisitions:
Huber + Suhner's Sucoflex unitWith 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.
Compared to the previous year, Sika's construction division, which includes the bonding and sealing sectors, boosted net sales by 39.7%. As in the prior year Sika VisoCrete admixture technology, which minimize production complexities and costs for customers, drove much of the success.
Within the industry division, which includes Sika's automotive and automotive aftermarket adhesives business as well as the transportation industry business, sales were up by 15.4% over the previous year.
On the acquisition front, from Huber +Suhner, based in Switzerland, Sika acquired the Sucoflex unit, which manufactures and sells construction sealants, including sealing tapes for joints, facades and damp rooms, as well as high-quality roofing membranes.
From DuPont, Sika acquired its protective coatings business in Germany. This unit, a leader in special coatings that resist corrosion and protect buildings, develops, produces and sells highly-resistant Unitherm, Permacor, Epiter, Asplit and Betonol coatings for floors, concrete and steel.
Sika also took Proxan Dichtstoffe GmbH in Greiz, Thuringia. The company develops, produces and sells sealants made from polysulfide and two-component polyurethane for manufacturing insulated glass and sealing construction joints.
15. H.B. FULLER
Sales: $1.472 billion
HQ: St. Paul, MN USA
Phone: 651-236-5900
Web site: www.hbfuller.com
Key personnel:
Michele Volpi, 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, sealants and coatings. New Products:
SmartGrip Packaging Adhesives
2006 Acquisitions:
Roanoke Companies Group and Henkel's insulating glass sealant business.H.B. Fuller Company is a global manufacturer and marketer of adhesives and other specialty chemical products. The company is managed through two operating segments-Global Adhesives and Full-Valu/Specialty. Global Adhesives manufacturers adhesives for assembly, converting, nonwoven, footwear and automotive applications, and represents 69% of total sales. Full-Valu/Specialty services several markets including specialty construction, insulating glass, packaging solutions, paints ,and construction, craftsmen and DIY, and represents 31% of total sales. Together these segments posted sales of $1.472 billion in 2006, up 2.5% over the previous year.
During the year, H.B. Fuller acquired Roanoke Companies Group, Inc., a manufacturer of pre-mix grouts, mortars and other products designed to enhance the installation of flooring systems. They are focused particularly on the retail home improvement market segment whose brand portfolio includes Tile Perfect, CHAPCO, Color Caulk and AIM. Roanoke will become part of H.B. Fuller's Specialty Construction Brands, Inc. (SCB) business unit within the Full-Valu/Specialty Group.
H.B. Fuller also acquired Henke's insulating glass sealant business, which manufactures sealants for windows used in both residential and commercial construction. They have a strong market presence in Europe and an expanding presence in Asia. Through this acquisition, they will become part of H.B. Fuller's Window business, within the company's Full-Valu/Specialty segment.
In November, Al Stroucken, H.B. Fuller's chairman, CEO and president, left the company after nine years at the helm. He was replaced by Michele Volpi, president and CEO.
16. COMEX GROUP
Sales: $1.4 billion
HQ: Mexico City, Mexico
Phone: 52-55-5284-1600
Web site: www.thecomexgroup.com
Key personnel:
Marcos Achar, CEO of Comex; Leon Cohen, president, Mexico; Kent Child, president, U.S. and Canada.Major Products:
A wide range of coatings and related products, including architectural, automotive refinish and industrial formulations.New Products:
Envirokote (LEEDS certifide and Green Seal approved)Comex, the largest paint producer in Central and South America, has increased its investments in the U.S. over the past several years through the acquisition in 2004 of Professional Paint Inc. (PPI), with headquaters in Denver, CO. PPI's network of regional paint formulators sell under different brands in the U.S. including Color Wheel in Florida, Frazee in California, Kwal Paint in Colorado, Parker Paint in the U.S. Pacific Northwest and General Paint in Canada. Comex's industrial line of paint, coatings and building products complement PPI's residential and commercial paint lines.
In 2006, both companies were consolidated forming Comex Group. Both now report as one group, posting nets sales of $1.4 billion in 2006, up from $1.22 billion in 2005. Broken down, 75% of sales came from the architectural segment, 15% from industrial, 5% from OEM (excluding automotive) and 5% from auto refinish.
The company operates four plants in Mexico City, seven in the U.S. and two in Canada.
17. MASCO
Sales: $1.277 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.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 ($12.778 billion) for 2006.
18. JOTUN
Sales: $1.249 billion
HQ: Sandefjord, Norway
Phone: 47-33-45-70-00
Web site: www.jotun.com
Key personnel:
Odd Gleditsch dy, Jotun's chairman of the board of directors; Morten Fon, president and CEO; Bjrn Naglestad, group executive vice president, Jotun Dekorativ; Erik Aaberg, group executive vice president, Jotun Paints; Esben Hersve, group vice president, Jotun Coatings; Knut ivind Malmin, group executive vice president, Jotun Powder Coatings.Major Products:
Decorative paints and marine protective and powder coatings.New Products:
Hardtop XPThe Jotun Group, which includes Jotun Dekorativ, Jotun Paints, Jotun Coatings and Jotun Powder Coatings business units, posted a record year in 2006 with sales of $1.249 billion. These units are focused on the manufacture and sale of decorative paint, marine coatings, protective coatings and powder coatings . 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.
During the year, Jotun opened a new paint manufacturing plant in Zhangjiagang outside Shanghai in China. The plant, which is one of the largest and most advanced paint production sites in China, is a $30 million investment for Jotun and was necessary in order to serve an increasing number of customers, according to the company.
Jotun paints and protects 20% of the world's merchant fleet, which means more than 10,000 vessels. China is one of the most important countries in the marine world market.
In China the Jotun Group now has two companies including Jotun COSCO Marine Coatings Co. Ltd. and Jotun Coatings Co. Ltd.
In addition to investing in the manufacturing plant, which has a production capacity of 70 million liters a year, Jotun will set up a new research and development facility in China.
In addition, during the next two years, Jotun Coatings will supply paint systems to Kashagan in the Caspian sea, the world's largest offshore oil field. Jotun's involvement in the project covers supply vessels, offshore barges, tank ships, pipe trenches and industrial buildings.
The first contract, worth $1.52 million is with Aker Kvrner, a Norwegian supplier of engineering and construction services, which will design and build one of the platform decks. Jotun Coatings in Norway will supply all the coatings for this project.
At the same time, Jotun Italy secured a contract through Bonatti, one of the major contractors in Italy and Jotun Boya in Turkey will supply all the coatings for the construction of the North Caspian Consortium's onshore facilities in Kashagan. That contract is worth $10 million.
19. AB WILH. BECKER
Sales: $1.190 billion*
HQ: Hganes, Sweden
Phone: 46-42-33-85-00
Web site: www.becker.se
Key personnel:
Ulf G. Lindn, 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:
Coil coatings, wood finishes, powder coatings and artists materials.Wholly-owned by Lindngruppen 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 2006 with expanding sales in all markets. Sales rose to approximately $1.190 billion.
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.
In 2006, BIC opened a new 5,500 square meter plant in Malaysia. In addition to serving the fast-growing Malaysian coil coatings market, the plant supplies plastic coatings for mobile phones and exports to the markets of Singapore, Thailand and Indonesia. BIC said it is also doing significant coil coatings business in Vietnam and is identifying a suitable site for future manufacturing facilities.
BIC, through Becker Powloki Przemyslow, also started construction on its new factory in Tarnow, in southern Poland. Becker Powloki Przemyslow was formed in 2000 to serve the Polish coil and special markets.
20. DAW
Sales: $1.130 billion
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, primers, alkyd resin range of enamels, acrylic enamels, decorative coatings and industrial coatings.
2006 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.
21. ROHM AND HAAS
Sales: $1.055 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; Powder coatings officers: Mike G. Hamilton, VP; Xavier Susterac, GM Europe; Volkan Goren, sales and marketing director, the Americas; Scott Chen, GM Asia-Pacific; Powder coating marketing managers: Steve Kiefer, the Americas; Jim Ridge, Europe; Friendly Xu, Asia-Pacific; Powder coatings technical director: Doug Cinoman, global research and development director.Major Products:
Powder coatings, adhesives and sealants.
New Products:
Architects Collection, Emotions CollectionRohm and Haas' powder coatings sales were $334 million in 2006, and its adhesives and sealants unit recorded sales of $723 million. (The company's coatings business also includes raw materials for use in architectural and functional coatings-although this $2.6 billion business is not included in our ranking.) Sales for powder coatings were up three percent from 2005, reflecting selling price increases and improved mix partially offset by lower demand, especially in Europe, according to the company's annual report. Sales for adhesives and sealants were down one percent due to lower demand, the company said.
Also of note during 2006, Rohm and Haas sold its automotive business to Nippon Paint. The company was also active launching new products for powder coatings. The Architects Collection provides specifically designed finishes for architectural components, with outstanding exterior durability and protection. The Emotions Collection emphasizes decorative effects for a variety of interior and exterior applications such as house and office furniture, shop fittings, domestic appliances, lighting and garden furniture. Rohm and Haas is also introducing a portfolio collection offering a comprehensive range in polyester, hybrid, acrylic and epoxy systems for the broader powder coating market. This collection includes a full range of RAL colors in glossy, semi-gloss and matt finishes.
22. HEMPEL
Sales: $980 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; Martin Wiese, group VP R&D; Claus Kynding Jensen, key manager marine; Svend Johnsen, key manager protective; Lars Hermansen, key manager container; Jacqui Knott, key manager, yacht; Klaus Moller, group marketing director.
Major Products:
Marine, protective, container, decorative and yacht coatings.New Products:
Hempadur Fibre 4760 and Hempasil2006 Acquisitions:
Germany's LacorWith high levels of trade and construction activity worldwide, Hempel was able to take advantage of the worldwide growth, delivering a 19% increase in turnover and 23% higher volumes, which totalled 244 million liters. The company delivered net sales of $980 million in 2006. Its business is broken into four operating segments including marine/yacht (46%), industrial (32%), container (14%) and architectural/decorative (8%).
Hempel acquired Lacor in Merzig, Germany. Lacor specializes in industrual and light industry protective coatings. The company also opened a new factory in Vietnam.
On the new product front, Hempel launched Hempadur Fibre 4760 late in 2006, and it contains special fibres which make it a highly durable and flexible coating. It also has a high resistance to corrosion, making it ideal for ballast tanks and other complex structures where maintenance demands are high. Hempasil was also introduced and was found to have significantly lower skin friction compared to conventional tin free antifoulings. For a large container ship, the required propulsion power was reduced by up to 10.6%. These results can be directly translated into fuel savings according to FORCE Technology who performed the reproducible and verifiable tests.
The company also celebrated the relaunch of its products and renovated showroom in Bahrain. In addition, as part of the company's plan to regionalize its operations, the shareholders of Danish Paints Middle East Holdings (DPME), Hempel's regional holding company and the shareholders of Hempel Bahrain agreed on a m
