McHenry, NAFTA regional manager–coating effects, Ciba
Corp. “Additionally, Ciba is leveraging dispersion technology
expertise to ensure the maximum efficiencies of pigments
with our complementary EFKA product line. Lastly, Ciba’s
global network of manufacturing sites allows us to respond
to local market demands and assure security of supply.”
Silberline increased prices to the market earlier this
year because of the increasing pressure associated with
energy, freight and raw material costs. “There is only so
far a company can go with process efficiency improvements before the escalating costs force a price increase,”
said Edwards. “That is not to say that our efforts to turn
every stone looking for savings have stopped. Continual
improvement is a way of life and is even more necessary
in a turbulent economic climate.”
“As a major global supplier of pigments and additives
to the paint and coatings market, Clariant is backwards-integrated in most of the key intermediates which are
used for the production of high performance pigments,”
said Orlowski. “Production facilities of intermediates and
pigments throughout the globe help us to secure the
demand for the marketplace. Over the last few months
Clariant has made available resources to evaluate and
implement fall-back options for raw materials. These
actions and measures enable us to be confident that we
will continue to produce pigments and additives in needed volumes requested by our customers.”
Sun Chemical is working to control its own costs closely
with its supply chain partners to improve internal operations.
“These efforts have helped offset some of these rising raw
material costs,” said Yazdani. “However, the increases seen in
many areas have outpaced our ability to offset them. As a
result, we have had to pass some of these costs on in the way
of price increases to our customers. Prices for high-performance pigments recently rose 10-20%. Since we expect no relief
in the higher costs of raw materials, it is likely that more price
increases may be needed in the future. We will continue to
invest in those areas that provide our customers with innovative products and services, allowing them to be more competitive and present the best value propositions in the market.”
COST VERSUS FEATURES
HPP suppliers know they must offer their customers a
truly value added product in order to justify the premium
price tag attached to it. “With escalating costs for fuel and
materials, the balance of costs versus features is always
an issue,” said Thierry Chevrier, director, BASF
Performance Chemicals–coatings and plastic chemicals.
“We see tremendous opportunity for pigments that combine color with functionality.”
HPP offers formulators a number of advantages. Highly
valued for their durability, they are often used where
there is a need for light fastness, chemical and high temperature resistance. “An investment in high performance
pigments can yield more in return for our customers than
standard pigments,” said Peter Carey-Yard, marketing
director, coatings, performance pigments, Sun Chemical.
“High performance pigments make products that are
more appealing to consumers, help businesses become
more competitive, grow sales and improve margins.”
Besides offering higher performance in terms of durability, HPP also offer formulators the opportunity to create aesthetically-pleasing products.
“Color and effects are often key differentiators to the end
user in terms of their purchase criteria,” said McHenry.
“Color is serious business and conveys a mood and a message that can make or break sales at the end user level.
Consumer preferences for color have been well documented
in terms of symbolism and preferences. New effect pigments can further enhance this appeal by adding subtle
nuances to the high performance pigment palette.”
“A special effect pigment can have a huge advantage in
adding perceived value to a product or just make it stand
out thereby helping position within a competitive market,” said Edwards. “Anything that helps sell a product by
improving the aesthetics, durability or function is
appealing to designers, manufacturers and consumers,
and this is where special effect high performance pigments fit. Also significant increases in organic pigment
price means that special effect pigments are closing the
gap and becoming even more attractive.”
EMERGING MARKETS
HPPs have traditionally dominated the automotive market due mainly to its stringent durability requirements,
but are making inroads into the architectural and decorative coatings market.
“High cost limited the usage of high performance pigments in other markets such as decorative and industrial
coatings where performance requirements were not as
demanding, but this is now changing,” said William Zonin,
technical manager, coatings, Clariant. “The decorative coatings market is currently developing paints with improved
durability using high performance pigments.”
“Historically, high performance pigments have been
used in the automotive and industrial coatings and inks
markets,” said McHenry. “More and more adoption of
these pigments has been occurring in the architectural
coatings markets as well. Effect pigments have seen
growth in all of the coatings and packaging markets.”
“The demand for more durable, brilliant color solutions
especially in the automotive, architectural and coil markets will be certainly a growing field for high performance
pigments in the future,” said McBride. “As products and
services increase in price, consumers will look for better
performance to find a way to balance out the financial perspective with lower term and better solutions.” CW
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