Coatings World - March 2017

CEO Forum

Gläser: As a niche supplier we focus on specialties. Our R&D department makes up approximately 30 percent of our total workforce and this has ensured sustainable and profitable success for decades. At the same time, the continuous development of environmentally friendly coating systems is a top priority. Alongside water-based coatings, radiation curing coatings (UV and electron beam curing) are a focal point of our development work.

Gorella: Our R&D is always aiming to improve different aspects of the total cost of ownership for our clients. In addition, we are focusing on developing more sustainable coatings. We see a growing demand for environmentally friendly products and we have already developed innovations such as coil coating solutions based on renewable raw materials, which are currently in the trial stage.

In addition, functional coatings will also contribute to a more sustainable end product and are thus part of our R&D efforts.

Kamieth: In order to ensure highest quality for our customers and to help our customers become more successful, we continuously develop new products and processes. Sustainable and environmentally friendly solutions are of great importance. Therefore, we are increasing the share of R&D investment for sustainable solutions.

All of our R&D activities are not only limited to coatings, we also focus on solutions beyond paint and develop products and services to meet our customer’s needs. Digitalization is another key focus area. We are convinced that digitalization will enable us to identify new business models and to optimize costs for instance in the area of development, production, and logistics. Digitalization will clearly change almost all areas of our value chain within the next years.

McGarry: Our goal of 40 percent of total sales derived from sustainable products by 2020 has a strong influence on our R&D efforts. We’re focused on developing products and processes that help our customers reduce energy usage and emissions, protect their employees and minimize waste and water consumption.

Our innovative ice-release aircraft coating, which is still in testing, helps prevent buildup that can create drag on the aircraft surface. This facilitates a smooth flow of air over airplane wings, which studies by NASA have shown can reduce fuel consumption by as much as 6 percent.

A new rapid-performance clearcoat for automotive refinishing also reduces energy consumption without compromising the quality of the final appearance, ease of application or size of repair.

We have introduced an innovative powder liner for the inter-
nal protection of aluminum aerosol cans. The product contains
no solvent and helps brand owners and can makers reduce VOC
And we are looking to the future of functional paint, coat-
ings and materials that will help to enable autonomous driving
and even additive manufacturing capabilities across the markets
we serve. These are just a few recent examples of the sustainable
innovations coming out of our R&D centers.

Shaver: Our focus remains on new product development, enhancing exiting products and providing the service and support our customers want long after a sale is transacted to enhance their productivity. Thanks to a number of recent acquisitions our Technology organization will be collaborating with them to share technologies and leveraging our respective strengths. We’re also continuing to invest in R&D. We just opened our new 15,500 square meter Asia-Pacific Technology Center in Shanghai that’s going to be a key technology resource not only in the region but one of our four principal technology centers globally. We also expanded our European Technology facility which is on our Wuppertal operations campus in Germany. The construction of our new 175,000 square foot Global Innovation Center at The Navy Yard in Philadelphia is also on track with opening scheduled for 2018.

CW: What is your company’s long-term
plans?

Andersen: I have to repeat that we have one focus. Hempel has to execute and deliver on the objectives of our 2020 strategy Journey to Excellence.

We operate in a global market that is constantly changing. That is why making detailed plans beyond 2020 does not make sense. Having said that, our intention is of course that Hempel continues to be a company in steady growth well into the future. We have been around for nearly 102 years, and we will continue to stay around for a long time to come. But whatever happens, we will continue to focus on our employees’ well-being and development, and on our customers.

Büchner: Our vision remains: leading market positions delivering leading performance.

For the period 2016-2018, our guidance is:
• Return on sales between 9 and 11 percent
• Return on investment between 13 and 16. 5 percent
• Clear aim to build on the foundation we have created and
grow in line with, or faster than, our relevant market segments
Our strategic ambitions relating to sustainability perfor-
mance are as follows:
• Increase revenue from downstream eco-premium solutions
to 20 percent of our revenues by 2020