Coatings World: How did the market for OEM auto coatings
fare in 2014?
Jean-Marie Greindl: For PPG overall, 2014 has been strong
through three quarters. The third quarter saw net global
sales of $3.94 billion for our entire business, up four percent
versus the previous year. PPG’s regional earnings expansion
was largest in Europe, which advanced 17 percent despite the
uneven regional economic performance. Automotive original
equipment manufacturer (OEM) coatings grew by high-sin-gle-digit percentages, with corresponding growth in all major regions and exceeding the global industry growth rate of
about 3. 5 percent.
CW: What regions offer the most opportunity for growth for
auto OEM coatings?
Greindl: Our results have shown significant growth in China,
which as the world’s largest market offers us the greatest opportunity for growth in the auto OEM coatings industry. Both
North American and European regions saw auto OEM coatings
production grow by low-to-mid single digit percentages.
CW: What specific technologies/products does PPG offer to the
auto OEM market that sets it apart from the competition?
Greindl: As automotive manufacturers incorporate lighter
metals into vehicles to make them more fuel efficient, PPG
is developing its ZIRCOBOND pre-treatment systems. The
product reduces the formation of sludge by-products by at
least 80 percent compared to conventional zinc-phosphate-
based pre-treatment systems. In the past three years, PPG
has installed 97 ZIRCOBOND pre-treatment lines around
the world, plus 12 additional lines in automotive plants.
The ZIRCOBOND pre-treatment system also consumes less
heat than zinc-phosphate lines, which can enhance energy
and cost savings. In addition to this, ZIRCOBOND can save
the average assembly plant 16 million gallons of water per
year. For general products, we launch 400 colors every year
with innovative properties
and effects.
CW: What new technolo-
gies is PPG working to
launch into the auto OEM
market (for example: self-
healing coatings, self-
cleaning coatings and other
smart coatings)?
Greindl: There are new
materials that PPG is us-
ing and developing in re-
sponse to developments
in vehicle manufacturing,
and that can help address
sustainability and cost
concerns in the manufacturing process.
PPG has also introduced new manufacturing processes to
enable increased cost efficiency for automotive manufacturers, as 65-70 percent of all energy used in the auto manufacturing process occurs in the paint shop. Our new waterborne
“B1:B2” process reduces both the manufacturing footprint
and energy consumption as it removes the baking phase of a
typical paint process.
CW: What is PPG’s plan for growth in 2015 and beyond?
Greindl: For EMEA, we will further strengthen our presence in Central Europe. The Middle East is also growing and
Africa and Turkey offer many growth opportunities for us.
The paint market is still very fragmented so there are growth
opportunities in developing regions, but also in acquiring
technological know-how.
The industry is constantly changing and it is being driven by
the manufacturers. As a result, PPG always needs to be a step
ahead because when the manufacturers want it, we need to have
it ready for them to use. CW
Coatings World recently had the opportunity to interview Jean-Marie Greindl, Vice
President, Automotive OEM Coatings, EMEA, and President, PPG EMEA.
PPG Reports on the
OEM Auto Market
