ly effective in new buildings. China is up and coming
with a tremendous growth in new buildings and
demands for marine coatings. As an example of the high
new building activity in China, Jotun recently signed a
contract for 80 new buildings which is the largest contract every for Jotun.”
On the pleasure craft front, growth has been less
robust. “In the yacht coatings market in general we are
basically flat and stable,” said Robert Donat, vice president marketing–North America, Interlux Yacht Finishes.
“The area where there is growth is in the super-yacht
business. There seems to be no shortage in demand for
super-yachts.”
“Growth for us is in the primers and topcoats because
these types of yachts require a lot of finishing,” Donat
continued. “The rest of the pleasure boat market— 10 to
100 feet—is stable to flat. New boat ownership is down
One of the world’s largest tankers is owned and operated by
Overseas Shipholding Group, Inc. (OSG). The 442,500 dwt V-Plus
oil carrier, TI Africa, recently drydocked in Dubai and was coated with Intersleek 900. Captain Robert Johnson, OSG’s head of
worldwide shipping operations said, “OSG decided to apply
International Paint’s Intersleek 900 on the TI Africa as we
believe the benefits from this type of antifouling coating will
contribute to a reduction in the vessel’s environmental footprint
by eliminating biocides and reducing emissions, while at the
same time enhancing the vessel’s efficiency through the water.”
and roughly 70% of the boats sold in the U.S. are used.
Boat builders are holding off. The downturn in the economy has certainly trickled down to the yacht business.”
COPPER PRICES CONTINUE TO RISE
Raising copper prices have continued to put pressure on
marine coatings manufacturers. “The high increase in copper
prices the last year has somewhat increased the prices for the
customers as well as reduced the margins, especially for the
upper segment of the premium products,” said Eikenes.
“Unfortunately, the drop in copper prices observed in
the last half of 2006 was only temporary and in 2007 copper prices continued their rise at the same average rate
since 2003,” said Brown. “Demand for copper is still
strong, especially in China, which has seen a nine percent increase in demand during 2007, with a further 11%
increase forecast for 2008. Despite China heavily investing in local copper mines, global supply is not increasing
significantly and, due to strike action at various mines,
demand is likely to remain high.”
During 2007, International stopped surcharging and
added $2.50 onto the selling price of its products. “In
February 2008, copper jumped to its highest price since
May 2006,” said Brown. “Future antifouling price rises
remain a possibility if the current trend of rising copper
costs continues.”
“The cost of copper has had a major effect on the market by driving and increasing the cost of antifoulings significantly,” agreed Donat. “It has raised our price by at
least 15%. Our overall objective is to lead in technology
and be environmentally responsible. Because of the
increase in copper, we are doing what we can to meet the
needs of the boat owner from a performance perspective
and a cost perspective.”
IMO TREATY TAKES EFFECT
One of the most significant developments in the marine
coatings market over the last few years has been the
IMO’s ban, which went into effect January 2008, on
organo tin tributyltin (TBT) compounds.
“The five global antifouling suppliers voluntarily
agreed to phase out TBT-containing products from
January 1, 2003, although the IMO restrictions were
not legally entered into force,” said Eikenes. “Since then
Jotun has focused on TBT-free antifouling paints. Today
the only things that affect us from the IMO antifouling
treaty are the cost and bureaucracy related to Class
Societies requirement for certificates stating that our
products are TBT-free. More significantly is the high
cost related to the EU Biocidal Products Directive.
Customers docking in Europe must be prepared for
higher costs of antifoulings compared to markets outside the EU.”
Jotun phased out all TBT containing antifouling paints
by the end of 2002. “The replacement products,
SeaQuantum series, are performing well thanks to a
superior silyl-acrylate binder system,” said Eikenes. “Our
