Coatings World - November 2011

H.B. Fuller’s primary goal is to innovate in terms of the raw
materials it uses and how they use them. “This allows us to in-
sulate ourselves and our customers from the continued raw
material volatility,” said Magee. “At the same time we must
manage our price in line with the value that adhesives add to
any structure. Generally the adhesive cost is only a small por-
tion of the total cost of any structure, but it brings significant
value to its end-use. We have many products that offer energy
savings to our customers by enhancing efficiency on the line.
Our own global sourcing and operations teams are continu-
ally looking at our production and shipping efficiencies. In
fact, we employ Lean Six Sigma principles throughout our
business to minimize energy costs.”
RPM said it has more pricing flexibility and more pricing
agility in the industrial segment than in the consumer segment.
“That’s been true really throughout RPM’s history,” said Sulli-
van. “Our expectation for the balance of the year is that raw ma-
terial costs will be a volatile mix – with some declining and

Henkel’s Loctite health and safety range.

Henkel’s Aerodag Ceramishield.

others rising in price. However, our raw material costs in total
will remain flat from where they are today.”
Henkel anticipates that prices for raw materials and pack-
aging will continue to affect their bottom line. Limited capaci-
ties among some manufacturers could also lead to supply
shortages. “Henkel expects an increase in the overall price of
raw materials, packaging, contract manufacturing and traded
goods in the low teens percentage range this year,” the
spokesperson said. “Henkel intends to offset rising raw mate-
rial and energy costs by selling price increases. Further increases
in raw material and packaging prices, in some cases substantial,
also represent a risk, as do supply shortages with respect to cer-
tain raw materials, particularly those required by the adhesive
technologies business sector.”
“To deal with rising raw material and energy costs, Sika has
had to focus on new and more effective ways to take costs out
of our own operations and processes,” said Slappnig. “While we
have made good progress on our initiatives, we have also raised
prices in certain segments where appropriate.”
In addition to raw material prices, complying with environ-
mental regulations is a key issue for the adhesives and sealants
market. These regulations are constantly being amended and
consequently, manufacturers must develop new products that
meet both the environmental and consumer’s demands.

“Regulations such as REACH present challenges and add cost
for all chemical producers, and the impacts for adhesive manu-
facturers are no different,” said Magee. “In our view, other reg-
ulatory changes present challenges for H.B. Fuller and the
industry to innovate and develop solutions which address these
changes. There are many adhesive technology options which can
address VOC related and other changes; it’s a matter of using
these tools to meet the needs of the particular industry perform-
ance required.”
“VOC and environmental requirements are a major driver of
product innovations for the future,” said Slappnig. “California
sets the benchmark but other states follow quickly and the trends
are clear. While this can add cost in some products it can also
create opportunities for those who are fast and able to adapt well
to the evolving requirements.”

New Technology

H.B. Fuller has introduced a variety of innovative new products. Advantra Encore and Liquamelt adhesive platforms offer customers alternatives that provide environmental benefits such as lower energy and adhesive consumption and less waste, and are more readily available to the packaging market than traditional hot melt technologies.

For its flexible packaging customers, H.B. Fuller responded with its Flextra Fast and Flextra Quiet adhesive technologies that enable faster processing, lower work-in-process, use of bio-based films and improve consumer satisfaction with the end package.

Clean Melt LT hot melt adhesives for case and carton are formulated to provide high mileage, lower maintenance costs, reduce energy consumption and improve safety due to lower application temperatures.