Possible growth after powder coating outbreak

Like many other manufacturing industries, European paint manufacturers and their suppliers hope that the region's economy will recover from the devastating effects of the new coronavirus (COVID-19) pandemic.

It is expected that most of Europe will fall into a severe recession from the second quarter of this year. For example, the UK's gross domestic product (GDP) is expected to plummet by about a third between April and June.

Analysts expect that by the end of 2021, demand will recover quickly.

The International Monetary Fund (IMF) predicted in April this year that the annual GDP of major European economies will decline by an average of 7% to 8% this year, and then jump to an average growth rate of 4% to 5% in 2021.

Paint manufacturers hope that later this year and early to mid-2021, they will begin to make up for losses in certain growing market segments.

One of them is powder coatings, and it is estimated that before the outbreak of the new coronavirus, global demand has increased at an average rate of 5% to 6% per year.

The growth rate in Europe is low, but it is still higher than the average growth rate of the entire coatings market in the region.

AkzoNobel reported last year that powder coating is one of its "excellent performance" businesses.

Chief Operating Officer Ruud Joosten said that driven by numerous innovative new products, the business “continues to strengthen its position as a market leader.”

Powder coatings are considered to have relatively broad prospects in the post-epidemic period, assuming that the disease will not recur at high infection levels.

In the past few years, the demand of various industries has been increasing. The main markets for powder coatings are construction, automobiles and transportation, machinery and furniture.

They are also considered to have potential, especially through innovation, to enter new markets.

The advantages of powder coatings are their low volatile organic compounds, no solvents, less waste, ease of processing, and suitability for many substrates.

In the post-epidemic period, powder coatings can meet major social and economic needs such as sustainability, safety, and low energy consumption, and are used for low-cost projects in commercial and residential construction.

At the same time, the industry restructuring in which powder coatings play a key role is likely to continue. For example, in some market segments, activities have been integrated, so a single business operation involves all aspects of design and manufacturing, including the application of powder coatings and the installation of high-level support services.

The strategy of many multinational powder coating manufacturers is to expand their business scope from the production of powder coatings to important pretreatment and surface treatment products, while ensuring that they comply with environmental requirements.

AkzoNobel powder coatings launched a series of primers last October, including high-performance powder coating primers for anti-corrosion to sandblasted steel, and a protective three-layer protective primer system for highly corrosive environments.

"Choosing the right primer to achieve proper corrosion protection can be much more complicated than one might think," said Daniela Vlad, managing director of AkzoNobel Powder Coatings.

Henkel, Kermitel, and BASF Coatings ’surface treatment business and other pretreatment suppliers have followed the trend of sustainable development and introduced more environmentally friendly products (such as zirconium-based chromium and phosphate formulation alternatives).

Although sales of powder coatings increased by 4.3% last year, Jordan, a multinational Norwegian paint company with operations in Europe, the Middle East and Asia, told investors that the growth did not meet the company's expectations.

Therefore, it has strengthened a policy aimed at establishing closer relationships with customers through measures such as service enhancement, thereby forming long-term cooperative relationships with major international customers and distinguishing itself from competitors more clearly.

One of its initiatives is to create a "customer team" that includes sales, technical support, and laboratory personnel. Their task is to find out the specific needs of each company. Then, communicate the preferences of these customers to Jotun ’s international network of R & D laboratories so that its scientists and technicians can more closely participate in meeting customer needs.

Austrian Tiger Coatings has now become a supplier in multiple industries, including agricultural machinery, automobiles, electronics and IT equipment, construction, glass, tanks and pipes, retail equipment, steel structures, and sports and leisure.

The company is an expert in thermosetting polymers. In the late 1960s, it was one of the earliest powder coating manufacturers in Europe. It even operated a consulting company covering quality assurance, logistics, management systems, and laboratory services.

Tiger is also actively developing powder coatings for wood products, especially furniture. The company is one of the pioneers in Europe applying powder coatings on engineered wood (such as MDF).

Advances in resin technology have enabled low-temperature curing, making it possible to use powder coatings on wood and other temperature-sensitive substrates such as plastics.

DSM's resin and functional materials business launched a powder coating resin last year. This resin cures faster and has a lower temperature, which helps wood applications and lower energy consumption.

The development of new pretreatment technology (such as pretreatment technology of zirconium or titanium) also contributes to the application of low temperature powder coatings.

IGP Pulvertechnik in Switzerland sells a variety of powder coatings for wooden furniture, especially for MDF, and its share in the European furniture market has been increasing. The company claims that the unit cost of its powder wood coatings is about 20% lower than mixed coatings and 37% lower than traditional varnish coatings.

IGP also provides primers for MDF powder coatings to ensure good adhesion and prevent warpage or swelling.

The low-temperature curing technology has continuously expanded the application range of powder coatings, which will help it withstand the financial pressure of the post-epidemic period.