Latin America
by Charles W. Thurston
Latin America Correspondent
thurstoncw@rodmanmedia.com
Buenos Aires-based Sinteplast is methodically increasing its foot- print in Latin America to further
develop its export market for paints and
coatings made in the region. With the latest purchase of a Sulan, a small manufacturer in Brazil, the company is solidifying
its export potential, which hit some $9
million in 2015, the company indicatesd.
While the Argentine market grew
about six percent in 2015 thanks to
strong architectural segment demand, the
devaluation of the peso — now in free
float – earlier this year is expected to diminish industry-wide growth. Sinteplast
increased production last year by about
13 percent, according to comments by
CFO Claudio Rodríguez made to Diario
de Mendoza, in November.
In February of this year, Sinteplast
acquired Tintas Sulan, based in Santo
André, in Sao Paulo State, for an estimated $3 million. With an estimated production capacity of 360,000 liters of paint
and coatings per month, Sulan has been
growing rapidly in Brazil, particularly in
the automotive space. To help combat frequent currency rate changes, the company indicated that it typically holds six to
eight months’ worth of raw materials to
avoid sudden cost escalation. Sinteplast
already had a Brazilian production facility in Rio de Janeiro.
Sinteplast also recently completed an
expansion of its Ezeiza plant lines, at an
estimated cost of $6 million along with
an estimated $1.6 million warehouse ex-
pansion for the $20 million just-in-time
facility. The company also has enamel
and resins production plant in San Luis,
and Córdoba is the third Argentine pro-
duction site. The company also manufac-
tures under license in Bolivia, Brazil and
Uruguay. Sinteplast manufactures under
Valspar and Debeer licenses for automo-
tive lines.
With all locations included, this year
the company expects to produce 80 mil-
lion liters per year, along with 4,300 tons
of powder coatings, according to a recent
company statement. Sinteplast also noted
that standard paint lines – like Vinilplast
– represent the bulk of sales growth,
while premium lines are expanding less
rapidly. Among new product launches
scheduled for 2016 are products within
the Casablanca architectural line, part
of the $100 million acquisition of some
BASF paint lines in 2013.
These and other investments are part
of a $46 million expansion campaign al-
ready in progress, according to comments
by Rodríguez. This investment was de-
signed to raise the company’s Argentine
market share of the paint and coatings
market from 16 percent to 21 percent,
the company indicated. One strategy
for expansion is the increasing number
of company paint stores, Colorshop,
some 200 of which are operated under
franchise in Argentina, Bolivia, Paraguay
and Uruguay. This store line offers ar-
chitectural, automotive and industrial
products.
Among international agreements and
licenses, Sinteplast in 2012 agreed to
market products from Chugoku Marine
Paints, based in Tokyo, in Bolivia, Brazil,
Paraguay, Peru and Uruguay, with the
then stated goal of increasing sales by
over 10 percent. Apart from these mar-
ket targets, Sinteplast also exports its
own lines to Chile, Costa Rica, Cuba,
the Dominican Republic, Ecuador, India,
Israel and Nigeria. CW
Sinteplast Increases Latin America Footprint
Sinteplast recently completed an expansion of its
Ezeiza plant lines at an estimated cost of $6 million
along with an estimated $1.6 million warehouse
expansion for the $20 million just-time facility.
