P O W D E R C O A T I N G SFOCUS ON

POWDER COATINGS POWDER COATINGS POWDER COATINGS POWDER COATINGS

AN INTERNATIONAL NEWSLETTER MONITORING TECHNICAL ANDCOMMERCIAL DEVELOPMENTS IN POWDER COATINGS ISSN 1364–5439

This is the time for private equitycompanies to sell maturedportfolio assets, although the rightselling approach is essential toobtaining the real valuation. Thelast item in the Industry Newssection (see p 4) indicates amove by the Carlyle Group, whichpurchased the Axalta automotivebusiness from DuPont in 2013. Ithas now filed for a public offeringworth $100 M in stock. There areother examples in the Marketssection (p 7), and they underlinethe importance of privateinvestors to the survival of thosesectors of the coatings industrythat have been discarded by themajor producers as unprofitable.These private equities should becommended for the role they playin our industry of demonstratingthat there is always profit to begained in the coatings market!

The performance of the majorproducers at the half yearly stageprovides an important indication ofthe potential annual profit or lossby highlighting successful salesand their overall effect on profit.Most reports to date show overallprofitability. The factors thatdominate are trends based onraw material cost savings orenvironmental pressures, and itseems inevitable that powdercoatings sales will continue togrow at the expense of all otherindustrial finishes.

It is becoming difficult to keeptrack of all the new products thatare offered each month. However,

it is not often that a new coatingtechnology is revealed, for theemphasis is mainly on newadditives that provide added valuefeatures to existing liquid coatingproducts. The use of additives inpowder coatings is almostrestricted to organic/inorganiccomposites, and the suppliers ofadditives should be aware thatpowder manufacturers wouldgenerally prefer to purchase theseitems instead of producing themin-house.

The future for powder coatingsgrowth is not threatened by anyrecent trends, nor the blusteringforecasts of the liquid coatingadvocates.

Sid Harris

TECHNICALDesigning corrosion resistantepoxy powder coatings

Mild steel is widely used inmarine applications but it is proneto attack by corrosive chlorideions in sea-water. Surfacepretreatments and organiccoatings offer some barrierprotection, but conductingpolymers have been found to bemore effective corrosion inhibitorsby providing anodic protection ofthe underlying metal. Polypyrrolehas been found to be one of themost useful conducting polymers

A TIME FOR INVESTORS TO BENEFIT

A MONTHLY REPORT FROMSID HARRIS

OCTOBER 2014

In this issue

TECHNICAL 1-2Designing corrosion resistant

epoxy powder coatings

INDUSTRY NEWS 2-4Ferro reports 73% increase in

2Q 2014 adjusted EPS fromcontinuing operations

Dow’s Coatings andInfrastructure Solutionsreports sales of nearly $2 bn

Axalta Coating Systems plans IPO

NEW PRODUCTS 4-5Evonik: Bright prospects for

matte paintsBiochemicals from plant-based

oils and by-products

MARKETS 5-8Powder coatings show strong

growth in EuropeProtective coatings market –

global trends & forecast to2019

Coatings companies investing in Latin America

EVENTS 8