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    Europe Reports

    Raw Material Suppliers Consolidate to Become Single Source Suppliers

    ...

    Sean Milmo, European Correspondent05.01.17
    The trend towards further consolidation in the  European coatings sector is not just being confined to producers of finished coatings but  to the manufacturers of raw materials  as well, particularly additives.

    This was evident at last month’s (April)  European Coatings Show (ECS) in Nuremberg, Germany, the world biggest  international coatings  exhibition  which had a record attendance of over  30,000  visitors.

    A strong presence was displayed at the event  by some leading chemical companies which have been expanding into coatings additives and other  raw materials.

    Also some  non-European players in the global coatings raw materials market were taking greater  exhibition space or were participating for the  first time as part of a strategy to gain a bigger foothold in a  slow growing but  large and stable market.

    Another  feature of the show were signs that  producers normally confined to particular  segments like pigments or resins  were moving into related  areas  in the European coatings supply chain.

    A major impetus behind  these changes  is the desire  among  raw materials producers   in Europe to become a one-stop source of supplies in certain parts of the European market  so that they can gain greater influence over the product development in finished  coatings.

    New Technologies at European Coatings Show

    Among the other drivers have been  a need for new technologies in the face of a  rising demand for functional coatings, tighter  environmental regulations, the growing switch from solvent to waterborne products in industrial coatings  and increased use of biomaterials.

    Also there is a greater demand from end-users  for higher performance coatings which requires the development of more sophisticated technologies.

    As a result coatings  producers are having to provide to their customers more tailored  products,  often with specific functional properties.

    “Traditional coatings properties are no longer enough,” said  Daniel Bruenink, director global marketing, decorative coatings  at  Evonik Industries,  the leading German speciality chemicals producer,  now a  major  player in  coatings  raw materials, especially additives.

    “Our customers  are seeking to gain an advantage by imbuing their coatings with additional functionality,”  he added.

    The larger chemical companies are well positioned to meet  the needs  of these customers because of their  R&D capabilities.

    Evonik, which has a strong R&D  competence, was among the most visible of participants  at  ECS  with a large exhibition stand and a high profile in new product presentations and at the show’s conference.

    Earlier this year  it completed the acquisition of Air Products’ Performance  Materials division which transformed it into one of the world’s leading suppliers of coatings  additives  with approximately €2 billion ( $2 billion) in sales, equivalent to about  17 percent of the company’s total sales.

    The ECS was an opportunity for  the company’s newly formed coatings additives business line to unveil its  new portfolio for the coatings and adhesives  industry.

    “We have here a unit with  a technology platform that is unique worldwide, offering solutions for almost any challenge in the formulation of paints and coatings,” claimed Claus Rettig,  chairman of  Evonik’s Resource  Efficiency segment.

    In the coatings  area, Evonik is now a global leader in water-based  additives, high-performance additives, curing agents, rheological  additives and matting agents.

    Among the new products introduced  at the ECS was a compatibilizer which stabilises  both organic and inorganic  pigments in alkyd  resin  coatings. Evonik  also showed new polyetheretherketone (PEEK)  powers  which reduce wear  on industrial components in applications with demanding mechanical, thermal and chemical requirements.

    Another innovation was an easy-to-disperse silica  product which during the production of coatings ensures shorter processing and cleaning times  and less waste.

    Among other multinational chemical companies  which produce  coatings  raw materials and were prominent in the show were Dow Chemical,  BASF, Clariant,  Solvay, Lubrizol, Arkema  and Lanxess.

    Dow emphasised  materials for adding functionalities to architectural coatings, such as low  odor, ease of cleaning and improvements to air quality through near-zero  emissions of volatile  organic compounds (VOCs).

    “We are seeing real demand for high-performance masonry coatings with specific attributes that vary with local conditions  and individual market demands,” said  Ulrich Nauber of Dow Coating Materials. “This means that it is important to be able to offer formulators a menu of options.”

    Arkema also highlighted  a trend toward  smart coatings in the construction sector, where, according to Claire Reynier, of Arkema Coating Resins, “energy efficiency and healthy buildings are the challenges for tomorrow.”

    Among the non-European additives producers making their first appearance at the ECS  was  Songwon Industrial  Group of South Korea which is the world’s second largest manufacturer  of polymer stabilisers behind  BASF.

    The company introduced at the show a range of antioxidants, UV stabilizers and hindered amine light stabilizers  (HALS).

    “As  a global company it is important for us to be present in the European coatings market,” said Rosanna Telesca, leader, market centre  coatings at Songwon International AG, Frauenfeld, Germany.  “Europe is a trend center in new technologies.  Once  a new technology is developed  here it will soon be exported to Asia and elsewhere in the world.”

    A number of leading international chemical companies, like BASF,  Clariant and  Lanxess gave  prominence to their  pigments and dispersions portfolios, but also highlighted  materials and additives in other areas. Clariant  even launched  a bioproduct – a  sugar-based  VOC-free neutralizing agent. 

    Merck KGaA, Darmstadt, Germany,  a leader in special effects pigments, introduced a  number of other products  resulting from  a move into materials for functional coatings. 

    Among these  were  polysilazanes, a new class of coating binder  based on a silicon polymer  technology  now proprietary to  Merck following  the $2.5  billion acquisition two years ago of  AZ Electronic  Materials, a UK–listed company making high-purity speciality chemicals for the electronics market. 

    The takeover was   aimed at  using AZ’s electronic chemicals to expand Merck’s speciality chemicals division.  

    “Because of its  focus  on electronic chemicals  AZ  did not see the tremendous  prospects in this  polymer which after curing becomes a highly  durable, resistant and transparent ceramic-type material,”  explained  Oliver Piening, director global marketing technical functionals  at Merck.

    Merck believes that with its high level of thermal, corrosion and scratch resistance, high hardness, hydrophobicity  and applicability in low  to medium thicknesses it has  a great potential as a binder in transportation, architectural and industrial coatings.

    “At the moment it is only being made in a small plant in India,”  Piening said. “We are discussing the building of a  new plant  possibly in Germany or the U.S.”

    A major expansion in polysilazanes production capacity would be a big diversification for Merck in its coatings business but is illustrative  of the new horizons being explored  by Europe’s raw materials producers. 
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