Paints: powder is better

by: María Cecilia Hernández

The paint market, in all its segments, has been forming an economic force in the Latin American region. Between 2008 and 2009 it had a worldwide increase of 5.4%, a situation in which the line of powder paints had enough prominence.

According to a trend report published by the Colombian company Proexport in the middle of the previous year, global paint sales were close to US $ 80,000 million, of which US $ 25,000 million correspond to Asia, US $ 26,000 million to Europe, US $ 22,000 million were borne by North America and US $ 3 . 000 million for Latin America.

The text indicates that this growth is influenced by the upward trend in the commercialization of powder coatings, "it is one of the industrial finishing segments that is growing the most in the world."

For his part, Hugo Hass, president of the company Pulverlux S.A. explains that "the total market in Argentina is estimated at about six thousand tons per year, of which about 30% is imported mainly from Brazil. However, the last quarter of 2008 saw a significant decline in demand for a number of reasons. This situation lasted until 2009."

One of the factors that caused the low dynamics of the powder coatings market in the period from mid-2008 to part of 2009 has to do with the rise in raw material and input costs.

"Raw materials are generally imported from various places and as they are derived from petrochemicals their prices are affected by the cost of oil. This marks an always upward trend and extremely inelastic marketing. In addition, certain inputs such as titanium dioxide, suffer a very large increase and it becomes difficult to acquire through the usual channels. Despite this, powder paint prices should remain stable, leading to a deterioration in profit margins. There's really no new break-trough in the raw material cast," Hass explains.

Latin America points to dust
Regarding the issue of exports, the president of Pulverlux S.A. affirms that if compared with domestic consumption, the export figure of powder coating in Argentina is lost in the panorama, it is minimal. However, he adds that at present the demand has been recomposing little by little and this suggests that 2010 will have a good balance.

Such is the rise of powder coatings in the American continent that the multinational DuPont, which has a plant in the Colombian Caribbean and is one of the most representative companies of the paint market in the world context, has stated in various media, including the Colombian newspaper El Heraldo, that serves exports in 20 countries between Central America, the Caribbean, Brazil, Argentina and Chile and that its sales for powder coating register US$22 million annually.

Without giving an exact data on the dynamics of this particular market, the deputy marketing manager of the Chilean company Industrias Ceresita S.A., Arturo Avendaño, explains that the per capita consumption of paint in that country is 1.3 liters. "It is a sector that moves US $ 200 million, of which 70% corresponds to decorative painting and the rest, to industrial painting. Compared to the rest of latin American countries, Chile is one of the most developed. Europe and the United States reach five liters per capita." Avendaño told Publimark, a Chilean marketing, communication and advertising publication.

Large-scale advantages
The explanation for this positive economic movement that is generating the line of powder paints in the global context can be assumed. This is suggested by Natalia Cossio, technical advisor of the powder coating line for the Compañía Global de Pinturas S.A.: "The costs are the biggest advantage, since the performance in square meters per gallon is higher than that offered by liquid paints. To this are added benefits such as production times, drying and a smaller number of stages".

An additional advantage has to do with the legal assurance of companies that make use of powder coatings in contrast to those that consume liquid paint, since the biological, environmental and chemical risks are greater for the latter. "The insurance paid by companies that consume liquid paints is much higher than those that consume dust. The most notorious disadvantage of those who opt for this second line is the initial investment. However, the issue is easily overcome thanks to the fact that it has a very high internal rate of return, which almost always justifies the cost of the projects," explains Cossio.

Narciso Moreira, general manager of Arpol Tintas in Brazil supports this argument, "the costs of powder coating are relatively higher in relation to the investment. You have to invest in equipment that must be compatible with the application system, but that investment becomes fully payable for the savings you get in this line."

The performance is part of the long list of benefits that are added to the use of this input, since with liquid paint more than 50% is used and the rest must be evaporated with solvent, "with this it hurts the environment, while with powder paint you can have a yield of 95% and with the best system up to 98" I think that's a big cost reduction," says Rocío Alvis, division chief of the Colombian company Oxyplast.

To this, Hugo Hass adds that "paints in general present problems derived from the formulation and the processes of elaboration and application. Technology is always evolving to find a solution to the relationships between different raw materials, find better machinery, improve processing processes and application systems."

Little by little, techniques and formulations are being implemented in which nanotechnology is used, however, in the powder coating market the subject is still strange, as Cossio confirms: "We have not yet seen it in Latin America, but its arrival is a reality. What we see most often on offer are new generation pigments."

This is how Hass explains another of the drawbacks in this segment: "The field of marine paints clashes with the need for powder paints to be baked for curing. That is why tank paints, "boot-toppinga", "anti-fowling", etc. need application systems that do not use oven for curing, but are applied with guns which project the powder on the substrates and a flame is curing them as they are applied, "explains Hass.

Undoubtedly, the biggest advantage of this type of pigments has to do with the environmental issue. In Argentina, for example, there is a law that deals with the lead content in paints, but it is basically aimed at household and construction products and not industrial ones. However, manufacturers considered serious have developed pigmentations free of chromium, lead, cadmium, molybdenum and barium, which perfectly reproduce the colors that formerly contained these materials, although at higher costs.

Seizing the opportunity
The Trend Report published by Proexport, indicates that if environmental regulations are more rigorous, the ground that the powder coating market will gain will be evident, since traditional products will have to migrate to this type of eco-friendly solutions and will pressure the creation of new
Technologies.

According to the document, "this migration will result in an opportunity for the national industry because Colombia already has experience in the production and sale of paints and coatings, ranking, after Brazil and Mexico,
as the third Latin American exporter. Anticipating a recovery of the world economy and of industries that demand this type of products (such as automotive), it is useful to examine the feasibility of expanding the range of products manufactured by the Colombian sector of paints and coatings, in order to include in it the participation of products such as powder coatings. "

BOX
Competitive advantages

According to The Powder Coating Institute and Coating's World, the advantages of using powder coatings are many, including:

1. Absence of Volatile Organic Compounds (VOCs).
2. It generates a low level of waste.
3. It does not need solvents for dilution.
4. They are not flammable.
5. It is a recyclable material. It generates a maximum of 5% loss in the process.
6. Reduces health risks.
7. Reduces the cost of insurance.
8. Reduces the deposit area.
9. Reduces waste deposition costs.
10. Reduces energy consumption
11. High physical-chemical resistance.
12. Increased productivity with reduced application time and required paint volume.
13. Reduction of the thickness of the applied layer, preserving the integrity of the painted product, since the number of layers are less.
14. It offers a wide range of products (color, brightness, texture and appearance), according to the customer's need.