Global Top Ten and The PCI 25 - 2013
Global Top 10
Following is a ranking of the top global coatings manufacturers in 2012.
Jump to Page 2 to see The PCI 25.
1. AkzoNobel nv
Amsterdam, The Netherlands
Chairman of the Board of Management: Ton Büchner
Coatings Sales: $13.2 billion (€10.0 billion)
AkzoNobel is a leading global coatings company and a major producer of specialty chemicals. The company serves industries and consumers worldwide with innovative products, and works to develop sustainable answers for customers. Headquartered in Amsterdam, the Netherlands, the company is consistently ranked as one of the leaders in the area of sustainability. AkzoNobel has operations in more than 80 countries.
Coatings brands include global and household names such as International®, Sikkens®, Glidden®, Dulux®, Crown®, Interpon®, Levis®, Coral® and Sadolin®.
Parent Company: AkzoNobel
Source: AkzoNobel Report 2012, press releases, company contact
Acquisitions and Divestments: In December 2012, AkzoNobel announced the divestment of Decorative Paints North America to PPG Industries, Inc.
Notes: In September 2012, AkzoNobel signed an agreement to supply advanced paint technology to McLaren Automotive, building on the success of the existing corporate partnership with the Vodafone McLaren Mercedes (VMM) Formula 1 team. The agreement extends this relationship to include road cars, including coatings for the MP4-12C and MP4-12C Spider, as well as the P1 when it enters production. In November 2012, the company signed an expanded joint venture agreement with the Yusuf Bin Ahmed Kanoo group of companies, in which AkzoNobel now supplies products from across its Performance Coatings portfolio, including professional woodcare, automotive refinish, marine, yacht, fire protection, protective and powder coatings.
2. PPG Industries, Inc.
Chairman/CEO: Charles E. Bunch
Coatings Sales (Net): Approx. $11.28 billion
PPG’s global coatings businesses comprise coatings for the aerospace, architectural, automotive OEM, automotive refinish, industrial, packaging, and protective and marine markets. The company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. PPG is the world’s leading manufacturer of transportation OEM and refinish coatings, as well as a leader in the supply of paints for consumer electronics.
In 2012, PPG achieved improved selling prices in each of its three coatings segments (Performance Coatings, Industrial Coatings and Architectural Coatings – EMEA), with higher selling prices as a response to persistent raw material and other cost inflation. Full-year net sales increased about 3 percent year-over-year to $4.8 billion for the company’s Performance Coatings segment (aerospace, architectural coatings – Americas and Asia-Pacific, automotive refinish, and protective and marine coatings businesses), about 5 percent year-over-year to $4.4 billion for the Industrial Coatings segment (automotive OEM, industrial and packaging coatings businesses), and about 2 percent year-over-year to $2.15 million for the Architectural Coatings – EMEA (Europe, Middle East and Africa) segment. Coatings represented about 74 percent of PPG’s 2012 total net sales of $15.2 billion, and coatings earnings grew about 20 percent for the full year 2012.
Source: 2012 Annual Report, company Web site, company contact
Notes: In December 2012, PPG completed the acquisition of North American-based industrial coatings company Spraylat. The company announced a restructuring initiative in April, mostly in global architectural coatings businesses and primarily in Europe, targeted to generate full-year pretax savings of $140 million. In June 2012, PPG entered into a technology license agreement with China-based Henan Billions that would provide that company the right to use PPG’s technology for the manufacture of chloride-grade titanium dioxide on a worldwide basis. PPG announced in July 2012 it would expand its current India joint venture with Asian Paints and enter into a second joint venture with the company, with PPG gaining effective management control of the original venture. Additionally, PPG continued its organic growth with the expansion of coatings capacity at its Tianjin, China, facility.
PPG greatly accelerated the pace of its portfolio transformation in January 2013 with completion of the separation of its commodity chemicals business and the subsequent merger of the separated business with Georgia Gulf Corp. to create a new company, Axiall Corp. In April 2013, PPG completed the acquisition of AkzoNobel’s North American architectural coatings business, the second-largest acquisition in the company’s history, which further extends its architectural coatings business in the United States, Canada and the Caribbean, and expands its reach in all three major North American distribution channels – home centers, independent paint dealers and company-owned paint stores. In May 2013, the company acquired certain assets of Deft Inc., a privately owned specialty coatings company.
3. The Sherwin-Williams Co.
Chairman/CEO: Christopher M. Connor
Coatings Sales: Approx. $7.15 billion
The Sherwin-Williams Co. is engaged in the manufacture, distribution and sale of coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America. The company has four operating segments: Paint Stores Group, Consumer Group, Latin America Coatings Group and Global Finishes Group. Net sales for the Global Finishes Group increased 4.4 percent to $1.96 billion in 2012. Net sales for the Paint Stores Group increased 13.2 percent to $5.41 billion, and net sales for the Consumers Group increased 3.7 percent to $1.32 billion. Unfavorable currency exchange rates in 2012 posed a challenge to revenue and profits for the company’s Latin America Coatings Group. Sales in U.S. dollars for the group increased less than 1 percent to $836.1 million, while sales in local currencies grew more than 10 percent.
It was another record year for Sherwin-Williams in 2012, with the company marking the second consecutive year of consolidated sales that surpassed $9 billion. The company reported total consolidated sales for 2012 of $9.52 billion, an 8.8 percent increase over 2011, or $769 million. It is estimated that between 70 to 75 percent of sales, or about $7.15 billion, represents coatings sales, with the remainder being related products, including wallcoverings, floor coverings and application supplies.
Sherwin-Williams has company-operated stores in all 50 states, Canada and some countries in Latin America. In 2012, the company’s Paint Stores Group added 70 new stores, bringing its store count in the United States, Canada and the Caribbean to 3,520 locations, compared with 3,450 a year ago. The company manufactures and sells coatings such as Dutch Boy®, Pratt & Lambert®, Martin-Senour®, Dupli-Color®, Krylon®, Thompson’s® and Minwax®, plus private-label brands to independent dealers, mass merchandisers and home-improvement centers. Sherwin-Williams produces coatings for original equipment manufacturers in a number of industries and special-purpose coatings for the automotive-aftermarket, industrial-maintenance and traffic-paint markets.
Source: 2012 Annual Report, company Web site, press releases
Notes: In December 2012, the company completed the acquisition of Jiangsu Pulanna Coating Co. Ltd., a leading manufacturer of automotive coatings for the Chinese aftermarket. In November 2012, the company signed a definitive agreement to acquire Consorcio Comex, S.A. de C.V., a leader in the coatings market in Mexico with headquarters in Mexico City. In March 2013, Berger Paints India Ltd. agreed to acquire, through its wholly owned subsidiary firm Brushworks Paints Ltd., the architectural operations of Sherwin-Williams Paints India Pvt. Ltd.
4. DuPont Performance Coatings (now Axalta Coating Systems)
President: John G. McCool
Coatings Sales: $4.2 billion
DuPont Performance Coatings includes its core markets of automotive, collision-repair and industrial coatings. The company develops, manufactures and sells coatings and application tools to automobile repair body shops and original equipment manufacturers in the automotive and heavy-duty truck markets. Global brands include Standox®, Spies Hecker®, Cromax® and Imron®. The company also serves the decorative, architectural, general industrial and job-coater segments of the powder coatings market under the brands Alesta®, NAP-GARD® FBE and ABCITE®. In August 2012, DuPont signed an agreement to sell the Performance Coatings business to The Carlyle Group for approximately $4.9 billion. The sale was completed on February 1, 2013, and the company was renamed Axalta Coating Systems.
Parent Company: The Carlyle Group
Source: DuPont 2012 Annual Report, press releases
5. BASF Coatings
Münster, Germany (global headquarters)
Southfield, MI (North American headquarters)
CEO/President: Markus Kamieth
Coatings Sales: Approx. $4.0 billion (approx. €3.0 billion)
BASF Coatings is a division of BASF SE. In the Coatings Division, BASF develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as decorative paints. BASF has significant market positions in the coatings sector in Europe, North America, South America and the Asia-Pacific region. In 2012, the Coatings Division of the BASF Group achieved global sales of nearly $3.9 billion.
Parent Company: BASF SE
Source: Company contact, press releases, company Web site
Notes: In 2012, BASF’s Coatings Division invested €1 million in the construction of a new Application Center in Oldenburg, Germany. The center will be used for applications in the wind energy sector, as well as for marine and aircraft coatings and an array of applications in diverse industrial segments. In January 2013, BASF broke ground on a new automotive coatings plant in Shanghai, China. In March 2013, BASF opened a new coatings technical center for ASEAN’s growing automotive market in Bangkok, Thailand. In March 2013, BASF received the General Motors’ Supplier of the Year Award for 2012. The award has been given to BASF nine times in the last 11 years.
6. The Valspar Corp.
Chairman/CEO: Gary E. Hendrickson
Coatings Sales: $3.8 billion
Valspar experienced a total sales increase of approximately 2.6 percent in 2012. The company operates its coatings-related businesses in two reportable segments: Paints and Coatings. Sales in the Paints segment decreased .5 percent (2012 net sales of $1.6 billion). Sales in the Coatings segment increased 5.5 percent (2012 net sales of 2.2 billion) for total coatings sales of $3.8 billion. Valspar’s Paints segment includes consumer paint products in the United States, Australia and China, as well as auto refinish. Global brands in the Paints segment include Valsper, Huarun, Wattyl, Solver, Cabot, PlastiKote, Guardsman and Devine Color. Auto refinish brands include De Beer and House of Kolor. The Coatings segment includes four product lines: packaging, general industrial, coil and wood coatings. Analyzed by region, North America accounted for 56 percent of sales for 2012, followed by Asia-Pacific (25 percent), Europe (13 percent) and Latin America (6 percent).
Source: 2012 Annual Report, company Web site
Notes: In January 2013, Valspar announced a strategic paint supply relationship with Ace Hardware and the acquisition of the retailer’s paint manufacturing assets, which include two manufacturing facilities located near Chicago. Under terms of the agreement, Valspar will manufacture and supply Ace-branded paint products as well as make a comprehensive line of Valspar-branded paints available to more than 4,000 Ace retail locations in the United States.
7. Kansai Paint Co., Ltd.
President: Yuzo Kawamori
Coatings Sales: Approx. $3.1 billion (for fiscal year ended March 31, 2012)
Founded in 1918, Kansai Paint Co. Ltd. is the largest coatings manufacturer in Japan and Africa, with leading market positions in India, China and Southeast Asia. It also has operations in Europe, the Americas and the Middle East. Core business areas include Automotive Coatings, Industrial Coatings, Decorative Coatings, and Marine and Protective Coatings. In the company’s 2012 annual report, it recorded an increase in net sales of approximately 8.3 percent compared to the previous year. Product sales in the Automotive Coatings business area accounted for 39 percent of sales. The Industrial Coatings business area accounted for 28 percent of sales, the Decorative Coatings business area accounted for 25 percent of sales, and the Marine and Protective Coatings business area accounted for eight percent of sales.
Source: Annual Report, press release
8. RPM International Inc.
Chairman/CEO: Frank C. Sullivan
Coatings Sales: $2.7 billion (for fiscal year ended May 31, 2012)
RPM is a holding company with subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets. Industrial products include corrosion-control coatings, flooring coatings and specialty chemicals. Major industrial brands are Stonhard, Tremco, illbruck, Carboline, Flowcrete, Universal Sealants and Euco. RPM’s consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement, and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors.
Subsidiaries: A/D Fire, Alteco Technik, API, Ascoat Contracting, Carboline, Chemtec Chemicals, Dane Color, DAP, DAP Canada, Ecoloc, Euclid Admixture, Euclid Chemical, Eucomex, FEMA, Fibergrate, Fibregrid, Flowcrete, Grupo P&V, HiChem, Hummervoll, Increte Systems, Kirker, Legend Brands, Mantrose-Haeuser, Martin Mathys, Modern Masters, New Parks, Paramount Technical, Productos Cave, Productos de DAP, Radiant Color, Republic Powdered Metals, RPM Building Solutions Group Europe, RPM/Belgium, Rust-Oleum, Rust-Oleum Argentina, Rust-Oleum Canada, Rust-Oleum Japan, Rust-Oleum Netherlands, Stonhard, Synta, Testor, Tor Coatings, Toxement, Tremco Barrier Solutions, Tremco illbruck, Tremco Inc., Universal Sealants, Vandex, Viapol, Watco, Weatherproofing Technologies, Wolman and Zinsser.
Parent Company: RPM International Inc.
Source: Company contact, 2012 Annual Report, press releases
Notes: Recent transactions include the Building Solutions Group’s acquisition of Brazilian roofing and building materials business Viapol in June 2012, RPM2 Group’s acquisition of nail polish enamel manufacturer Kirker Enterprises in September 2012, and Rust-Oleum Group’s acquisition of wood deck and concrete coatings manufacturer Synta in September 2012. RPM increased its cash dividend for the 39th consecutive year on October 4, 2012.
9. Nippon Paint Co.
President: Kenji Sakai
Coatings Sales: $2.4 billion
Nippon Paint produces coatings for the automotive market, the marine coatings market, as well as industrial products. It also makes paints for residential and commercial buildings and for the do-it-yourself market. Nippon Paint’s manufacturing operations are located principally in Asia, but the company also has facilities in North America and Europe. In the United States, it has two subsidiaries that manufacture and sell paints: NB Coatings (liquid automotive coatings for plastic) and NPA Coatings (automotive body and powder coatings).
Source: Company contact
President/CEO: Morten Fon
Coatings Sales: Approx. $1.9 billion
The Jotun Group is a leading manufacturer of paint, coatings and powder coatings. By the end of 2012, the group consisted of 71 companies and 36 production facilities with representation and sales offices in 90 countries. The group has four divisions: Jotun Dekorativ, which consists of decorative paints, stains and varnishes for the professional and DIY markets in Norway, Sweden, Denmark and Iceland, as well as production of binding agents; Jotun Paints, which consists of decorative paints in the Middle East and Southeast Asia, including marine and protective coatings customers in those regions; Jotun Coatings, which consists of marine and protective coatings for shipping, industry and offshore in Europe, the United States, South Africa, Australia and North Asia, as well as decorative products for local customers in the same regions; and Jotun Powder Coatings, which consists of architectural, functional and industrial powder coatings in Scandinavia, Europe, the Middle East and Asia. Jotun reports sales in four business segments: Decorative Paints, Protective Coatings, Powder Coatings and Marine Coatings. The company saw growth in the Decorative, Protective and Powder Coatings segments for 2012. The Marine segment experienced a decline in sales for the year. Overall, the company reported a 6.5 percent increase in operating income in 2012 compared to the previous year, and a 17.8 percent increase in operating profit for 2012 compared to 2011.
Source: 2012 Annual Report, press releases
Notes: In March of 2012, the company opened a new paint production facility in Sandefjord to serve the Scandinavian market. In April 2013, Jotun announced plans to phase out lead chromates, a toxic chemical compound, from all coatings formulations worldwide.