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    Features

    Growing Paint Additives Market

    Environmental pressures and the growing shift toward water-based paint systems are fueling demand for paint and coating additives, providing tremendous growth potential for additives suppliers.

    Tim Wright, Editor01.24.12
    Additives, which are generally used at low levels in paint formulations, provide desirable properties that the paint might otherwise lack. They have a range of functions, including enabling the paint to stick better, limiting the growth of mildew, improving the smell and antibacterial properties of the paint, and enhancing flow characteristics.

    As the paint and coatings industry continues to fall under pressure by environmental regulations, manufacturers of coatings and paints are endlessly reformulating their products. As a result, demand for novel additives continues to increase.

    The world market for paint additives is projected to exceed $6 billion in the coming years. While the United States is still the single largest market, growth in the global market for paint additives is primarily originating from high growth markets in Asia Pacific.

    The rapid economic growth in most of the emerging countries in the recent years resulted in rampant architectural construction and industrial activity, which created significant demand for paints and additives that, in turn, rocketed demand for paint additives.

    The opposite is true for the mature markets of North America and Western Europe where the 2007 credit crisis and the subsequent recession in 2008 decelerated growth in value demand, the effects of which are still being felt, especially as Europe teeters on the brink of a recession of its own.

    Asia Pacific Driving Growth

    Global demand for paint additives has grown steadily over the last decade. Much of this increase in demand has come from the Asia Pacific region and this trend is expected to continue in the near future, with Asia Pacific expected to account for more than 40 percent of the global demand for paint additives in 2016.

    The global paint additives market was dominated by rheology modifiers in 2010 followed by biocides. The high need for biocides in Asia, due to a strong focus on architectural paints compared to other regions, has made biocides a significant segment in the global paint additives market, according to GBI Research’s new report, “Paint Additives Market to 2016 - Rheology Modifiers and Biocides to Drive the Market,” published by MarketResearch.com.

    Global paint additives demand increased from 843,190 tons in 2000 to 1,007,590 tons in 2010 the report said. The global demand for additives is expected to reach 1,331,700 tons in 2016.
    Rheology modifiers in 2010 led the market with a demand of 300,850 tons. This was followed by biocides, with a demand of 220,510 tons. The third largest product segment in Asia is surfactants, with a demand of 193,610 tons in 2010. The other two segments, driers and foam control agents, had demands of 145,470 and 147,150 tons, respectively.

    In 2010, the global paint additives market catered for a demand of 1,007,590 tons, with Asia-Pacific having the largest share of the demand with 35.4 percent, followed by North America and Europe with demand shares of 32.1 percent and 20.7 percent, respectively. The remaining shares were held by the South and Central American and Middle Eastern and African markets, with eight percent and 3.8 percent, respectively.

    China, notable for its fast growing economy, is set to lead the way in the global paint additives market. Already growing faster than the major developed countries, though currently slowed down by the economic recession, China has emerged as the second largest market (after the U.S.) in the global paint additives market. In 2010, it accounted for 40.8 percent of the total Asia-Pacific paint additives market by volume. It is likely that China will overtake the U.S. in the next decade by growing at a rate of 14.1 percent by volume. By offering good growth opportunities in the paint additives market, China has become the most attractive and lucrative destination for Western European and North American producers.

    For example, The Lubrizol Corporation is expanding its additives testing capabilities with a new technical services laboratory initially based on the campus of Jilin University in Zhuhai, Guandong, China.

    The lubricant and fuels market in China is growing at a rapid pace, in line with the expanding domestic automobile industry.

    “Our investment in testing capabilities in China and throughout Asia is significant because it will allow us to collaborate and improve the quality and efficiency of our work on a highly global scale,” said Phil Shore, Lubrizol vice president of testing.

    The testing laboratory in Zhuhai will offer advanced technical services for lubricant and fuel additive customers and OEMs in China.

    The new additives laboratory builds on Lubrizol’s long established presence in Asia and will support Lubrizol’s ongoing sales and manufacturing efforts in the region. In 2010, Lubrizol announced the construction of a new lubricant additive production facility in the Zhuhai Gaolan Port Economic Zone, located within 20 miles of the Jilin University campus. The new manufacturing site in Zhuhai will also provide opportunities for future expansion of laboratory infrastructure in China.

    Evonik has also opened its first research and development center for additives for paints and coatings in Asia. A single-digit million US dollar amount has been invested to set up the “Tego Innovation Center” in two locations, Singapore and Shanghai, as part of the global Evonik innovation network. The Tego Innovation Center will cater to manufacturers in the paints and coatings industry in India and Asia.

    “Evonik expects the Asian market to generate the largest market growth for the paints and coatings industry in the coming years,” said Thomas Haeberle, the Evonik executive board member responsible for segment resource efficiency, which oversees the coatings and additives business unit. “We are anticipating the greatest demand in the segment for environmentally-friendly coatings. Our new Tego Innovation Center addresses exactly these growth markets.”

    Advances in Additives Technology

    Environmental regulations are continuing to fuel demand from formulators for novel additives from their suppliers. As such additive technology is constantly evolving.

    Shamrock Technologies, the world’s largest processor of recycled PTFE, is also a leading worldwide supplier of a broad line of micronized powders, dispersions, emulsions and compounds including PTFE, PE, PP, fluoroploymers, custom wax alloy, natural waxes and specialty additives.

    New products that Shamrock recently introduced include new additions to the Fluoroslip brand (FS 383, FS 422N), as well as the new process technology driven Narrow line of powders for thin film applications (TUF-4, Narrow 4).

    “Powders with improved flow properties have been requested by customers, and we are introducing an experimental line based on new technology for testing purposes,” said Joon Choo, vice president, Shamrock Technologies.

    Shamrock also introduced AquaFLON MG, a new high performance dispersion featuring a stabilized blend of PTFE and oxidized waxes for use in thin film metal coatings.

    Also, X-8178 is a new fine wax powder specially formulated for improved slip, and with de-gassing properties in powder coatings.

    Headquartered in Newark, N.J., United States, Shamrock Technologies manufactures hundreds of products and has over 500,000 square feet of manufacturing operations at six facilities on three continents. All facilities are ISO 9001:2008 certified.

    Another additives supplier, Micro Powders, Inc. of Tarrytown, N.Y., United States, is a major manufacturer of specialized micronized waxes, wax dispersions and emulsions in the printing ink, paint and coatings industries with an extensive and innovative product range.

    Micro Powders specializes in developing innovative micronized wax technologies to meet formulators’ needs. Its unique “stir-in” wax provides the formulator with optimum performance in surface protection additives the company said.

    Micro Powders offers a full range of high performance micronized wax additives that are easily dispersed without prior melting or grinding. Key product groups include: MP synthetic waxes for lubricity and economy; MPP polyethylene waxes for rub and mar resistance; Polyfluo and Synfluo waxes for slip and abrasion resistance; Aqua waxes for all water-based applications; AquaBead waxes and emulsions for water repellency and moisture resistance; Micropro, PropylMatte and MicroMatte waxes for uniform matting and scratch resistance; Polysilk waxes for improved slip, tape release and a smooth surface; Superslip waxes for high lubricity, without PTFE; Microspersion Aqueous Dispersions for “stir-in” wax dispersions; and PropylTex waxes for for texture and gloss control.

    Eastman Chemical Company is also a major player in the paint and coating additives market and has introduced its newest Solus performance additive, Solus 3050. Specifically engineered to help formulators meet VOC, performance and productivity goals in waterborne coatings systems, Solus 3050 is derived from natural and renewable cellulose material and can be used in the automotive, industrial metal and consumer electronics coatings markets.

    Performance benefits of Solus 3050 include smoother finish, optimal metallic flake control, better redissolve/strike-in resistance, superior flow and leveling, improved atomization, and greater adhesion to galvanized steel said the company.

    Solus 3050 also enables faster dry time and early hardness, application consistency over varying climatic conditions, improved wetting, increased sag resistance, and it enhances flexibility in aluminum flake selection.

    Troy Corporation has introduced Troysol PWA, a next generation wetting and adhesion promoter intended for dry-mix products. Troysol PWA improves adhesion to substrates and enhances pull-off strength. Ideal for cement-based adhesives, EIFS adhesives, mortar, gypsum board, tile adhesives and other dry-mix products, Troysol PWA answers the needs of industry for a high-performance additive designed specifically for high-performance building products said the company. 

    BYK Additives & Instruments has developed a new additive that has wax-like properties called Ceraflour 1000. Because it is based on renewable raw materials, it represents an interesting alternative to natural and synthetic waxes. The latter, for instance, are based on finite, petrochemical resources. Thanks to biotechnology, the BYK additive, by contrast, is produced with the aid of bacteria. This opens up a new perspective on the use of biotechnology in the coating industry said the company.

    Another advantage is the versatility of Ceraflour 1000. The additive is suitable for all systems—aqueous, radiation-curing, solvent-free and solventborne. It provides efficient matting and also involves a soft-touch effect. Furthermore, systems in which Ceraflour 1000 is used have a high degree of transparency and improved scratch resistance.

    Bacteria change starch and glucose into a biopolymer that, through modification and micronization, results in Ceraflour 1000.

    With Ceraflour 1000, BYK is systematically pursuing its “Greenability” concept, developing additives for eco-friendly systems.

    Major M&A Activity in the Additives Market

    The year 2011 witnessed some major activity on the merger and acquisition (M&A) front in the paint and coating additives market. First, the world’s biggest manufacturer of drug ingredients, Lonza Group AG, Basel, Switzerland agreed to buy Arch Chemicals Inc. for approximately $1.2 billion creating a global leader in the bacteria and fungi killing business.

    Arch Chemicals’ products are used for disinfecting swimming pools, protecting wood from fungus, preventing the growth of molds and mildew in paints and dandruff treatment. This deal with Norwalk, Connecticut-based Arch Chemicals will make Lonza Group the leader in the $10 billion market which is exhibiting growth of as much as six percent per year and it will also reduce its dependence on manufacturing pharmaceutical ingredients for drug makers said the company.

    Lonza Microbial Control, a new business sector formed by the acquisition and led by Jeanne Thoma as previously announced, offers a complete portfolio of microbial control solutions. Lonza offers this complementary range of products and actives to a broader range of customers in both established and emerging markets.

    Also in the biocide segment, Lanxess strengthened its portfolio with the acquisition of U.S.-based Verichem Inc. headquartered in Pittsburgh, Pa. As a result, the German specialty chemicals company will bolster its position in the U.S. material protection market and broaden its global biocide manufacturing network.

    Lanxess gains access to a complementary portfolio of biocides, as well as active ingredients registered with the U.S. Environmental Protection Agency (EPA). They are used to protect coatings, adhesives, construction materials, as well as pulp and paper. The biocides prevent the deterioration and discoloring of materials caused by microorganisms.

    Verichem is a privately-owned company currently employing approximately 20 people. It recorded sales of roughly $10 million in 2010. Verichem’s production site is located close to Lanxess’ U.S. headquarters in Pittsburgh.

    Verichem was integrated into the Lanxess business unit Material Protection Products (MPP).
    MPP is already one of the world’s leading suppliers of biocides. It has recently strengthened its position as a supplier to the construction industry after acquiring the material protection business of Syngenta.

    Honeywell recently purchased Evonik Industries’ portfolio of manufacturing technology, including patents, for the production of polyethylene waxes used in a variety of applications, from paints and coatings to adhesives and inks.

    The technology features Ziegler-Natta catalysts, which have been used to produce polymers such as polyethylene since 1956. Today, the majority of plastics and chemicals manufactured around the world are produced using this technology.

    The technology will supplement Honeywell’s existing extensive line of wax additives, which help improve the performance of a variety of products around the world. Honeywell waxes make paints and coatings more durable; help pipe manufacturers extrude PVC faster and reduce energy usage; and improve the stickiness of labels and cardboard box adhesives.

    “This technology purchase expands Honeywell’s ability to develop new additives that can solve a variety of challenges for our customers in the paints, plastics, coatings, adhesives and inks industries,” said Lincoln Germain, global business director for Honeywell’s specialty additives business. “Ziegler-Natta-based technology is a great complement to Honeywell’s already broad set of manufacturing technologies for polyethylene additives.”
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