Adhesives Magazine

KUSUMGAR, NERLFI & GROWNEY: Asian Coating Additives Study

July 17, 2008

Dow Chemical’s recently announced acquisition of Rohm and Haas, and Ashland’s acquisition of Hercules, will further concentrate the supplier structure of coating additives in Asia, according to Kusumgar, Nerlfi & Growney, a West Caldwell, NJ-based consulting firm specializing in market research and business analysis for the polymer and chemical industries. These two acquisitions follow the purchase of Deuchem (Taiwan) earlier in the year by Elementis. Last year, the Asian coating industry consumed $1.25 billion of specialty additives.

The combination of Dow Chemical and Rohm and Haas had Asian coating additive sales of $75 MM in 2007, with 70% being rheology modifiers. Dow is the second-largest supplier of cellulosic rheology modifiers for coatings in Asia, and Rohm and Haas the largest supplier of water-based synthetic types. Rohm and Haas ranks among the top three suppliers of coating biocides, while Dow is a minor player. Rohm and Haas is also a larger supplier of acrylic dispersants for WB house paints in Asia.

Ashland and Hercules had combined coating additive sales of $55 MM in Asia. Hercules is the largest supplier of cellulosic thickeners for coatings with global sales of some $140 MM. Hercules captures 40-45% of the market for cellulosic rheology modifiers for coatings in Asia. Most of Ashland’s Asian coating additive sales are foam control products. Ashland also sells small amounts of waxes, biocides, and wetting agents in Asia.

Further information on Asian coating additives is available in Kusumgar, Nerlfi & Growney’s recently completed multiclient study, Asian Coating Additives, which is available through subscription. Interested parties are invited to contact the company by calling (973) 439-0030 or by e-mail at nerlfikng@cs.com. Further information can be obtained at www.kusumgar-nerlfi-growney.com.