LATIN AMERICA
BY CHARLES W. THURSTON
LATIN AMERICAN CORRESPONDENT
THURSTONCW@RODPUB.COM
Sherwin-Williams targets
niches in Mexico
Sherwin-
Williams
expands
operations
in Mexico
to offset the
negative
effects of
the global
recession.
Sherwin-Williams is responding to the eco- nomic crisis in Mexico along with the rest of Latin America with the optimistic
determination that has enabled the company to
survive there for close to a century.
“We arrived in Mexico during the crisis of
1929, and we don’t think the current situation will continue forever,” said Heverton
Dos Santos, director of Sherwin-Williams’
operations in Mexico. “Creativity is what
makes the difference between surviving a
crisis and not surviving.”
A long-time official for Sherwin-Williams
in Brazil and now in Mexico, Santos made
the comments to local press on the company’s 80th anniversary in Mexico, noting that
the Mexican market level of 2008 is not likely to return before 2011.
Part of the company’s strategy for survival
now is to target niches where its products
have yet to command strong market share,
including aerosols and wood finishes,
Heverton said. Among recent product launches or campaigns in Mexico, Sherwin-Williams
has begun targeting medical facility consumers for its antibacterial architectural
paint line, Loxon Cielorrasos, and has gained
new private hospital customers in several
key cities. Similarly, Sherwin-Williams’
Rexpar line is adding its Pisos de Madera
polyurethane product that targets interior
wood finishes market. Additionally new packaging is being used for Novacor Piso, a high-traffic acrylic.
Sherwin-Williams’ active trade marks in
Mexico include Sherwin Williams; Kem-Tone;
Kem-Glo; Lustral; Cromalit; Vini-Hogar; Vini-Mundo; Napko; Nap; and Val.
A year ago, Sherwin-Williams announced
plans to increase capacity in Brazil by 60%,
through an investment of $18 million. But
currently operating in Mexico at only 80% of
capacity, Sherwin-Williams still is able to
manufacture 90% of its Mexican sales in
Mexico. As a result new capacity investment
in the region may be delayed. The company’s
sales declines in Mexico have been worst in
the automotive segment, where a drop of 40%
has taken place this year.
“The company doesn’t disclose its investment
plans, but we have made some small acquisitions in Mexico over the past two years, though
still not enough to move the meter much,” said
Mike Conway, a company spokesman in
Cleveland, OH/USA.
In 2008, Sherwin-Williams purchased Flex
Recubrimientos y Acabados Automotrices, helping firm its leadership in after-market automotive paints. At the time, Flex sales were estimated at $14 million. Sherwin-Williams also
purchased industrial coatings manufacturer
Napko last year, for which sales were estimated
at $20 million.
Sherwin-Williams’ paint stores group operated 110 branches in Mexico at the end of 2008,
and plans include several more openings.
Sherwin-Williams’ Mexico manufacturing facilities include locations in Monterrey, Texcoco
and Vallejo, within its global finishes group.
Distribution facilities in Mexico include locations in Guadalajara, Hermosilla, Mexico City,
Tijuana and Vallejo. Overall, the company
employs approximately 500 personnel in
Mexico, and employment reduction percentages
have been limited to single digits.
Efforts to gain public support as a socially-conscious company have led Sherwin-Williams
to participate in a host of painting projects,
including historic buildings, public arenas and
other localized developments. Recently, the
company gained publicity for its participation
in the Paint Your School program. CW
