Paint firms seek profits through sustainability

Focus article by Al Greenwood

MIAMI, Florida (ICIS)–Demand for sustainable and environmentally friendly products is providing the paints and coatings industry with one of the best opportunities for growth, the CEO of PPG Industries said.

The demand for such products is coming from governments, consumers and nongovernmental organisations (NGOs), said Charles Bunch, PPG CEO. He made his comments at The Coatings Summit.

“There is general support for all of these sustainable products,” he said.

Waterborne coatings illustrate these opportunities.

These are becoming more favoured because they emit fewer volatile organic compounds (VOCs), said Charles Shaver, CEO of Axalta Coating Systems.

For example, in China, new original equipment manufacturer (OEM) auto plants must use waterborne coatings.

Waterborne coatings also dry at lower temperatures and require less time for drying, Shaver said. These cut costs for customers.

At the same time, few producers are qualified to make these coatings, leading to high barriers of entry, he said. That provides those producers with advantages against potential competitors.  

The trend for sustainability also creates demand for new products. For example, a growing number of governments are banning food containers that have coatings made with bisphenol-A (BPA). These bans create demand for substitute products.

Sustainability, however, is tempered by what Bunch called commercial realities.

BPA coatings have been fully tested for a variety of uses, he said. The substitutes will also have to work in these applications. In addition, there is pressure to keep costs down.

Also, while there is support for sustainable products, it often takes new regulations before they are widely adopted in the market, Bunch said.

For BPA, the signature move happened when the French government prohibited BPA coatings from food-contact containers, Bunch said. This occurred after more than a decade of discussion.

The Coatings Summit is hosted by the International Paint and Printing Ink Council (IPPIC). It runs through Friday.