the developing regions,” said Moncla. “Instead there is a higher
growth in these regions to meet the overall growing demand
for higher performance paint products as compared with the
developed regions of North America and Europe. Celanese
does expect to see continued growth in China and the rest of
Asia as well as South America.”
The respective economies of China and India are growing
rapidly and will continue to have an impact on the supply and
demand balance of the entire value chain including the raw ma-
terials used to produce resins and coatings. “There will be a need
to increase the manufacturing capacity in the regions that are ex-
periencing the growth,” said Hall. “However, in the future, the
focus will shift more towards regional supply due to an increase
in the cost to transport goods globally, and a reduction in the
relative cost to produce goods in each region.”
To capture anticipated growth in market demand for high qual-
ity coatings, BASF’s coatings division has set up its first resin labo-
ratory in China. The new resin laboratory in Shanghai forms part
of the Asia Pacific Innovation Campus scheduled to open in the
second half of this year at the Pudong site in Shanghai.
According to BASF, the coatings market in Asia Pacific was valued at € 19 billion in 2011 and is expected to increase in size and
importance at a steady pace. It is predicted to rise to € 45 billion by
2025. BASF’s new resin laboratory will initially focus on technical
service in resin manufacturing, including the qualification of raw
materials in the region. Later, it will also address new resin development locally, offering customized resins that can be employed in
various coating materials such as automotive OEM coatings and a
myriad of industrial coatings.
The new laboratory has been outfitted with state-of- the-art
technology that enables precise temperature and time control,
which ensures that the outcomes of resin qualification and development are of the highest standards. The resin laboratory is currently situated temporarily at Caohejing Hi-Tech Park in Shanghai
and will move to the Innovation Campus site in Pudong as soon as
the new premises are ready.
Celanese recently reported it received key government approvals necessary to proceed with plans to modify and enhance
its existing integrated acetyl facility at the Nanjing Chemical
Industrial Park to produce ethanol for industrial uses. The unit,
based on Celanese TCX ethanol process technology, is expected to startup in mid-2013.
Pricing is another issue that remains constant in the market.
“Implementing price increases is time consuming and costly,”
Reiser said. “With the constant increases in raw material costs over
the past several years, it’s been difficult just keeping up with pass-
ing them on to customers. This in turn, makes it a challenge to
maintain targeted margins. We’ve had several price increases over
the past year; these have gone smoother than in the past. It’s as if
everyone has become accustomed to the constant price increases
handed down from the major oil and chemical companies.”
“Our products are sensitive to the cost of raw materials,” said
Hall. “The information regarding the cost of raw materials, energy
and transportation is transparent. Our relationship with our cus-
tomers and clear communication help us to mutually understand
the economic issues facing our industry and the changes in cost
necessary to sustain it.”
Meeting customer requirements is a top concern for resin
makers.
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