expand capacity and further refine the quality to meet spe-
cific customer requirements,” said Campbell. “Trust Chem
and our JV factories have combined our research and techni-
cal capabilities to stay a step ahead of their competitors.
Trust Chem will also be moving our labs in a few months as
we are making space for additional equipment to improve our
support and capabilities for coatings, especially automotive
coatings and plastics customers.”
Because of the added cost associated with high perform-
ance and specialty pigments, customers expect outstanding
performance. “An investment in high performance pig-
ments can yield more in return for our customers than
standard pigments,” said Yazdani. “High performance pig-
ments make products that are more appealing to con-
sumers, help businesses become more competitive, grow
sales and improve margins. From a technical standpoint,
the most important property exhibited by high perform-
ance pigments that distinguishes them from other pig-
ments is their durability in the applications. Some exam-
ples of this include light fastness and resistance to chemi-
cal attack and high temperatures.
“Use of effect pigments allows customers to highlight their
products in terms of design and appearance, drawing the end
use customer to their lines and providing consumer appeal,”
he continued. “In addition, the metallic series of pigments
provide functional properties to end use applications such as
improved anti-corrosion, thermal stability and UV
reflectance.”
“These pigments meet specific customer needs,” added
Marsicano. “High performance pigments, for example, offer
enhanced durability, opacity and higher hiding. Special
effect pigments provide exceptional brilliance and ultra-
high chroma that enable the creation of novel designs and
differentiation.”
“The goal for the customer is to attain increased perform-
ance for demanding applications while still being competi-
tive,” said Martens. “High performance pigments provide per-
formance advantages including heat resistance, ease of dis-
persion, weathering, lightfastness and IR reflection.
Competition in the HPP area has been strong which has
resulted in a reduction in the pricing gap between HPPs and
conventional pigments. As a result, additional applications
for HPP pigments are being unlocked.”
HPPS GAIN POPULARITY IN NICHE APPLICATIONS
While HPPs are traditionally used in automotive and industrial coatings, they are also making inroads into some new
markets.
“Traditional markets such as automotive and industrial
coatings will continue to be primary consumers of high per-
formance and special effect pigments,” said Marsicano.
“However, we continue to see interior and exterior decorative
applications as a high growth area for HPP as increased
interest for materials with improved durability, opacity and
weatherfastness properties are being requested by our served
markets.”
“For high performance pigments, the automotive and
industrial markets will have the greatest potential for growth
as these industries recover through 2010,” said Marten.
“There is also potential in the architectural market for niche
applications where either improved color space or durability
are desired.”
According to Yazdani, from the market segment view-
point, Sun expects continued growth in cosmetics, special-
ties, and niche markets. “We also expect flat to declining
automotive, architectural and ink markets,” he added. “The
trend for more efficient cars in the automotive market will
see a reduction in paint consumption, however, it will also
increase the demand for color. This trend will help to fuel
the continued growth in high performance and effect pig-
ments. In the graphic arts market, the increasing use of
non-impact printing methods such as ink jet means
increased demand for high performance pigments at the
expense of those conventional pigments used in traditional
printing inks.”
INCREASED DEMAND IN ASIAN MARKETS
The market for HPP pigments has been impacted by
increased growth in manufacturing and consumption in
Asian markets, particularly in China. According to various
news reports as of November 2009, China has become the
biggest auto market in the world. Consulting firm, McKinsey
and Company estimates that China’s automotive market will
grow tenfold between 2005 and 2030.
“Most of the major paint companies have come to visit
Trust Chem in China in the last 12 months seeking a new
source for high performance pigments,” said Campbell.
“Demand within China and for export are putting pressure
on Chinese pigment factories to respond to new business
opportunities forcing production expansion.”
“The emerging industrial giants—China, India and
Eastern Europe—are seen as the markets where per capita
gross domestic product (GDP) is expected to grow most rap-
idly,” said Yazdani. “Related to the GDP growth of these
emerging markets will be the growth in the demand for high
performance and effect pigments for the coatings of durable
goods, buildings and the automotive sector. Sun Chemical
and our parent company, DIC, have a strong manufacturing
and market presence in China and have the capability to sup-
ply pigments to global multi-national and local Chinese coat-
ings customers.”
Heubach has established Hangzhou Heubach Co., Ltd. in
Hangzhou, China. “Hangzhou Heubach complements and
expands our presence in China in order to ensure short deliv-
ery times and the utmost in technical service to our global
and local customers. In the near future, the facility will be
expanded to manufacture new products for the Heubach port-
folio,” said Martens. “The emergence of China as a major con-
sumer of pigments has had a significant impact on the global
market for pigments and raw materials. With the build-up of
infrastructure within China and the emergence of a middle
class, the quantities consumed in China are significant
enough to impact pricing and supply in the balance of the
global market.” CW
