coatings business based in Rio de Janeiro,”
said Jaap de Jong, the regional director of
Latin America and the Brazil country director, based in Sao Paulo for AkzoNobel.
“In Brazil in particular we are seeing that
the building and infrastructure segment will
be one of the drivers for growth – considering all projects that are under planning or
execution such as the stadiums and buildings for the World Cup and the Olympics.
We expect to grow around five to 10 percent
during the next years,” added de Jong.
Acquisitions in Brazil are expected to
rise, according to Abrafati, the national paint
manufacturers association, in Sao Paulo.
One year ago, RPM International, based in
Medina, Ohio, purchased diversified paint
and coatings maker Viapol Ltda. based in
Cacapava, Sao Paulo State. At the time of
the acquisition, RPM CEO Frank Sullivan,
said, “The acquisition of Viapol establishes a
substantial footprint for RPM and our many
industrial and consumer businesses in the
exciting Brazilian market, which is the largest economy in South America, and now the
sixth largest economy in the world.” Viapol
reported $85 million in annual revenues
prior to the purchase.
Among other recent acquisitions, powder coatings specialist WEG Tintas Brazil,
based in Jaraguá do Sul, in Santa Catarina
State, last year purchased Stardur Tintas
Especiales, an automotive coatings manufacturer based in Indaiatuba, State of São
Paulo. Stardur revenues amounted to
about $38 million in 2011.
Marketing in Brazil is competitive and
intense. Beyond media commercials, several major paint companies have adopted
colonial towns or urban slums in Rio de
Janeiro and elsewhere to show their colors. Sports advertising also is broad, but
has recently picked up pace as the clock
counts down to Brazil’s hosting of the
World Cup in Soccer in 2014. In anticipation of the event paint companies are
vying for stadium refurbishment deals,
like AkzoNobel, which will repaint part
of the Maracana stadium, in Rio.
“Today, for example, of total revenue
in the decorative paints business in Brazil,
between 30 percent and 40 percent are
from the high-tech products,” said Jaap
Kuiper, the president of AkzoNobel’s
decorative paints business unit in Latin
America, based in Sao Paulo.
Environmental sensitivity is strong in
Brazil, and paint and coatings manufacturers are focusing on zero VOC products
for that market. Renner Sayerlack, based
in Cajamar, Sao Paulo State, for example,
recently launched its Linha Verde, or Green
Line, brand, which features a logo adorned
with a large green leaf labeled “ecological.”
Among other green affiliations, Universo
Tintas, based in Diadema, Sao Paulo State,
recently joined Brazil’s Green Building
Council, which promotes sustainable
practices in construction. Universo Tintas
recently launched a high concentration
acrylic paint line for residential consumers.
Mexico Linked to U.S.
Volatility
Mexico’s $1.2 trillion economy was the
most affected in Latin America by the
U.S. recession. Nonetheless, Mexico’s
economy also will match the regional
growth projection this year, at 3. 5 percent, slowing from 3. 9 percent last year.
Manufacturing in Mexico is reported to
be rising faster than the national GDP,
notes Schineller. However, construction
slowed during the first few months of the
year, with February statistics showing a
2.9 percent drop in activity, according to
the national statistics agency INEGI.
The largest recent acquisition in Mexico
-- and the most important in the region of
late -- was Sherwin-Williams $2.3 billion
purchase of Comex, Mexico’s largest paint
company. The deal added about $1.2 billion in annual sales by Comex, along with
its 3,300 points of sale in the country. The
deal made S-W the leading paint company
in North America.
Among other recent acquisitions,
Mexichem, based in Mexico City, purchased
PolyOne’s specialty vinyl dispersion, blending and suspension resin facilities in Avon
Lake. Ohio, for $250 million. Permission
for the deal from the U.S. Federal Trade
Commission was secured in May.
Another larger joint venture was announced by Mexichem in January, a $550
million investment project with national oil
company Pemex, to produce 24,000 metric
tons of vinyl chloride in its first year of operation. Vinyl chloride is used as a binder in
specialty paints, among other uses.
Argentine Economic
Recovery Promising
Argentina’s estimated $450 billion economy is expected to grow at 3. 5 percent
this year, compared with 1.9 percent in
2012. However inflation of at least 10
percent limits real expansion of paint
and coating consumption.
Mergers and acquisitions continue in
Argentina, where WEG Tintas purchased
powder coatings maker Pulverlux S.A.
two years ago, adding some $7 million in
revenue to its bottom line from sales to the
automotive and white goods segments.
Among recent marketing campaigns
in Argentina, Sinteplast in May donated
paint for the refurbishment of the Ronald
McDonald House in Buenos Aires.
Sinteplast also was a founding member
of the Caminhando Juntos or “Walking
Together” foundation, an undertaking of the
United Way.
Colombia Grows on Andean
Trade
Colombia’s $330 billion economy is pegged
to grow at 4. 5 percent this year, ahead of
the region, up slightly from 4.0 percent
last year, according to ECLAC forecasts.
Colombia plays a key role in the Andes sub-
region of Latin America. PPG, for example,
established a new Andean base in Medellin
for its industrial coatings business two
years ago, to serve the area, “with emphasis
on Colombia, Ecuador and Venezuela.”
Among new investments in the in-
dustry, Grupo Mundial announced plans
to invest $25 million in re-tooling its
Colombian coatings factories. Mundial’s
Compania Global de Pinturas, or Pintuco,
paint unit bought H.B. Fuller’s paint busi-
ness in Central America for $120 million.
As a conglomerate, Mundial reported
a double-digit increase in profits last year
on sales of $1 billion. Its Pintuco unit
reported a nine percent volume increase
last year, coupled with an eight percent
export expansion.
Acquisitions in Colombia include
PPG’s 2012 purchase of the coatings
businesses of Colpisa Colombiana de
Pinturas, based in Itagüí, Colombia, and
its affiliates, including Colpisa Ecuador.
Colpisa has been a PPG automotive coatings licensee since 1996. CW
