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Industry Letter - Editorial Highlight



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Editorial of October 9th 2008

Hello and welcome to your early week international coatings industry update, brought to you by SpecialChem. World markets continue to scramble to shore up financial resources, but progress continues in the coatings industry. Due to our industry panic of the early 2000's, companies in our industry, while being affected by the overall economy, are exceedingly well positioned to ride-out this correction with minimum problems. In world news:

PPG industries has earned two 2008 R&D 100 Awards for its Green Logic paint detackifier and Zircobond pretreatment technology. The awards, bestowed annually by R&D Magazine, recognize the 100 most technologically significant innovations each year.

Green Logic paint detackifier is used by North American, European and Japanese automakers to denature and remove over-sprayed paint from the water wash system in automotive paint spray booths. The formula incorporates chitosan derived from crab, lobster and shrimp shells, and provides a responsible alternative to detackifiers derived from petroleum-based chemistries. Zircobond pretreatment reduces energy consumption, reduces water consumption, and decreases sludge.

Multinational Idex Corp. cut its Q3 profit outlook this week, citing lower demand for its equipment used to dispense paint and coatings and the loss of a major retail contract. As previously announced, IDEX will cease manufacturing operations in the dispensing segment's Milan, Italy facility. In addition, Idex has initiated plans which include management and administrative workforce reductions as well as an additional facility consolidation. The projected savings in costs and operating expenses resulting from these restructuring activities is expected to be $13 - $14 million annually beginning in 2009.

Two small coatings companies, Premier Paint 2000, Inc. & C3 Technology, LLC., along with Tech Line Coatings, Inc. in California are proud to introduce the first water-borne clear coat on the automotive paint market. California and Canada's new environmental policies have pushed companies to create products that match or exceed new regulations. In both California and Canada, auto shops are facing strict changes to VOC (volatile organic compounds) emission rules by the end of this year. Canada's new regulation matches California's, but won't be required until 2010. Single-stage clear coats will require 340 g/L (2.8 lb./gal.) emission rating in California, 420 g/L (3.5 lb./gal.) in Canada. The new product falls into the single application category of 1.2 lb/gal VOC, well below EPA, California and Canada standards.

Regulations are hard enough when you're talking about one country, but try to set the regulation agenda for 27! I suspect that it is no small feat, and minor misunderstandings would abound. While knowledge gaps obviously remain regarding the potential risks of nanotechnologies, the European Commission again expressed confidence that existing EU regulation can be applied to this emerging sector, stressing that the challenge ahead lies in their implementation.

"We are not in a regulatory void," said Cornelis Brekelmans, an official in charge of regulatory aspects of nanotechnology at the European Commission. Speaking at a conference on 2 October, Brekelmans said this was because EU rules impose a risk assessment on all products, adding that nanomaterials were no exception to this obligation.

"We may decide not to authorize a product," the official warned during the Second Annual Nanotechnology Safety for Success External Dialogue Workshop in Brussels. Depending on the outcome of such assessments, the authorities may review, modify or cancel authorizations, he explained.

According to the Commission official, "the real issue is implementation and enforcement". The basis on which a product can be banned must be better identified, he added, calling for enforcement capacities at national level to be strengthened in this respect.

The Commission, he said, remains "convinced that a lot of work still has to be done" on testing, standards and guidelines, while product authorizations must be conducted "on a case-by-case basis.

However, the European consumer organization (BEUC) argued that the EU's current approach was "not sufficient" due to a lack of clarity over how general safety requirements are to be applied to nanomaterials. The organization is also worried that regulatory measures might fail in member states due to the huge volume of work

In the Netherlands, Camiel Eurlings, Minister of Transport and Public Works for the Dutch government, accompanied by KLM President and Chief Executive Officer Peter Hartman, took official receipt of an environmentally friendly painting system. The cabinet member inaugurated the system by painting the KLM logo on a Boeing 747.

KLM Engineering & Maintenance developed the environmentally sustainable, chromate-free paint together with German manufacturer Mankiewicz.

The system uses 15% less paint when covering an aircraft. As a result, the aircraft weighs less, uses less fuel, and creates fewer carbon dioxide emissions. Degreasing the aircraft before repainting can now be done with simple soap and water. Previously, this required 800 liters of inflammable solvent.

The new paint also has cost advantages. The gloss and color remain longer so an aircraft doesn't need repainting as often. What is more, the painting process takes two days less as the paint dries more quickly. The system has been tested extensively. KLM is the only airline using this environmentally friendly and cost-saving system.

Particle Sciences announced today that it has sold T-Cote, its proprietary line of microfine titanium dioxide, to Sensient. With the sale, Sensient assumes all marketing and sales responsibilities and acquires the associated trademarks and existing business.Particle Sciences will remain involved during the transition for technical support. The sale does not result in any change to the product, its specifications or method and location of manufacture.

Particle Science invented, among other things, Z-Cote, microfine zinc oxide, a product that was sold to BASF in 1999. These pigments are primarily used as sunscreens. Particle Sciences also developed several surface treatments for these and other particles. "Particle Sciences has been at the cutting edge of fine particle technology for some time. We have a history of developing commercially successful products for ourselves and others," said Garry Gwozdz, Director of Formulation Services at the company.

The sale is in keeping with Particle Sciences growth plan as it focuses on its pharmaceutical development services. The company was founded in 1991 and is headquartered in Bethlehem, Pennsylvania.

In other news, one of the nation's most prestigious organizations for advancing the knowledge of color in the arts and industry has honored Harold Van Aken for his work in developing the NetProfiler® technology that precisely and remotely calibrates color measurement instruments at sites anywhere in the world ...more about this news

Nordson Corporation announced that it has acquired the assets of Vilters, Switzerland-based Wachter, Paul and Co., operator of Bigger Dosier Klebetechnik, a distributor of Nordson's EFD brand product line ...more about this news

ExxonMobil Chemical has completed a 130,000 ton per year capacity expansion at its Exxsol hydrocarbon fluids plant in Jurong Island, Singapore, increasing capacity at this site to more than 500,000 tons per year ...more about this news

And finally, New SHER-WOOD® Simplicity™ Stain from Sherwin-Williams is a unique new wiping stain that enables professional wood finishers to create deep, brilliant colors on various wood species in fewer steps than traditional methods for achieving dark stain colors ...more about this news

Thank you for reading the Industry Letter!

Best, Mark Drukenbrod
editor@paintandcoatings.com



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