E-Journal 3/2010Coatings Partner

InnovationsDr. Winfried Kreis and Dr. Ramkumar

Dhruva discussing the question: What are innovations and how do they arise?

Innovativ: Aktuelle Farbtrends

Content

  3   InterviewWhat is innovation, and how does it arise?

6   Greater efficiencyNew POLYCERAM® Plus topcoat system

  7   High in the sky High-tech coatings for wind turbines

  9   “Attractive and demanding”Interview: Thomas Leung, in charge of Industrial Coatings in China, about the dynamic wind power market

10   Staying coolNew COOL COLOURS technology reflects radiation off surfaces

11   Hitting the right toneInnovative color management

12   Few drips, more paintNew Suvinil® paint line in Brazil

13   Rising StarCooperation with the largest Chinese carmaker

14   Outstanding service GM Best Supplier Award in recognition of long- standing loyalty

15   Striking contrastMat clearcoats for a change of pace

16   BASF’s coatings business worldwideProducts, markets, locations

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Dear readers,

Innovation drives growth for a prosperous future. It requires invest-ment, skilled personnel, strong customer relationships and outstand-ing ideas. In short, it takes dedication. Regardless of the current eco-nomic situation, businesses geared for innovation create long-term added value. New coating systems lead to more efficient coating processes, further optimizing surface characteristics. Our numerous products thus offer long-lasting protection and retention of value.

Take wind turbines for example. Innovative highly resistant coating systems for rotor blades improve erosion resistance against rain- drops and sand. At the same time, they shorten the coating process (page 7). A modular topcoat system for the coil coating industry al-lows customized combinations of durability and weather protection characteristics (page 6). These two innovations help our industrial coating customers carry out their processes more effectively.

This e-journal chronicles developments in our four strategic business units – Automotive OEM Coatings, Automotive Refinish, Decorative Paints and Industrial Coatings. Read about BASF Coatings inno-vations of products, processes and services. To quote Thomas A. Edison, “There’s a way to do better … find it.”

I hope you enjoy this latest issue.

Peter FischerHead of Industrial Coatings Solutions Europe

2Coatings Partner

Interview

Politicians, scientists and managers – everyone is calling for innovation. But what is innovation, and how does it arise? We talked to Dr. Winfried Kreis, head of Global Technology and Product Development Manage-ment at BASF Coatings, and Dr. Ramkumar Dhruva, head of BASF Auto-motive OEM and Industrial Coatings, Asia-Pacific, to find the answers.

“When the market yells hurray …”

What does innovation mean to you?Kreis: Something new is only an innovation when customers tell us they prefer using our solution over a competitor’s. In short: innovation is when the market yells ‘hurray’! Dhruva: Innovation is also the ability to find new ways to add value.

Is BASF Coatings innovative?Dhruva: Yes, we are a pioneer in the coatings industry. In the Asia-Pacific region, for example, a number of innovations were launched in the market in 2009, such as short coating processes with solventborne and waterborne coating systems for Japanese car manufacturers, a new integrated high-solid wet finish system in India and a universal scratch-resistant clearcoat.Kreis: In the end, however, it is our customers of course who decide how innovative we are. Feedback is extremely important for us.

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How long does it take to go from a good idea to a marketable product?Kreis: There is no general rule of thumb. With deco-rative paints it often takes between six months and a year. Otherwise it usually takes much longer. With some innovations, the approval process alone for the finished product takes two to three years. That is particularly the case with innovations in industrial coating processes. A lot of customers want to be able to guarantee the products’ long-term durability, too.Dhruva: Product life cycles are getting shorter across the board, both in and outside our industry. Our cus-tomers are bringing out new products and models in much shorter intervals. Thus we have to launch our products rapidly, too.

How do you create a real corporate culture of inno-vation?Dhruva: Innovation always means taking risks. And with every risk there is a chance of failure. How many companies reward their managers for failure? No won-der innovation is so hard to come by. At BASF we have developed effective workflows over a period of

many years facilitating the attainment of our innova-tion goals. Phase Gate software is a key management tool, a program that breaks the innovation process down into discrete phases. At the end of each phase, processes are studied in relation to the established objective to make sure we are still on the right track. This makes it easier for staff members to take risks while simultaneously reducing the chance of failure. Optimal resource allocation, teamwork and rapid deci-sion-making are also important elements for achieving innovation.

Where do the ideas for innovations come from?Kreis: Ideas for innovations can come from anywhere, and they can come along at any time, and may be advanced by any employee, or even by customers on many occasions. Innovation is thus by no means some-thing reserved for research and development only.

What are the implications of internationalization with regard to innovation?Dhruva: There is strong international cooperation – at BASF Coatings between the three big research and de-

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Interview

4Coatings Partner

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velopment locations in Germany, Japan and the US. Strong partnership capabilities have led to an increase in BASF’s competitive competency. Kreis: International networks that interact ef-fectively enhance creativity. This increases the likelihood of finding the right solution within a short period of time.

Are there different requirements for innovation in different regions?Dhruva: To successfully innovate, businesses have to think globally and understand the differ-ences between cultures. Even small details may be decisive as to whether a product will suc-ceed in a regional market. For example, in the UK only one third of men’s shirts have pockets. Pockets are not really needed, as men usually have enough pocket room in their jackets. In India however, jackets are only worn on formal occasions because of the heat. So most men prefer to have shirt pockets. But a European manufacturer neglected this little detail for eight years before finally changing the design.

What challenges do you see ahead?Kreis: The challenges up ahead stem from regular market trends and corporate, social and industrial megatrends. By regular market trends I mean the pursuit of ever more economical so-lutions. These are products that meet quality requirements while exceeding current standards for reliability, or that expand the range of func-tionality of current systems and processes. Ex-amples include enhanced corrosion protection and scratch resistance, in addition to the longer durability of the coatings.Energy management is a megatrend with big implications for us. We are interested in coat-ing processes that consume substantially less energy. We are also developing coatings that improve home insulation.Dhruva: Speed is a big challenge as well, and it is important to recognize trends early on and rapidly implement corresponding innovations. We are quite confident in our ability to meet all challenges the future holds for us. n

Interview

5Coatings Partner

Coil coatings

Metal in motion. The coated strip of metal instan-taneously shapes itself into a square box. BASF lab technician Michaela Bünker examines the light gray coating on the shaped metal under a magnifying glass. A chemical engineer, she is inspecting the flexibility of the coating. In coil coating, metal bands are first coated before being further processed, for example into facade cladding or roofing. Among other things, the coating must exhibit the right elas-ticity, bonding and durability characteristics. Inspection passed: After two years of develop-ment, BASF has now launched POLYCERAM Plus, a new family of topcoats for coil coatings. Besides flexibility, weathering resistance is also an important positioning element for the various products com-

prising the new topcoat system. This system covers the entire spectrum of weathering resistance char-acteristics outlined as RUV classes under European norm EN 10169, part 2.

The new topcoat family consists of only eight product lines. They replace the over 20 different offerings previously available. “POLYCERAM Plus is not an arbitrary selection of coatings that has evolved over time. We carefully analyzed our product range on the basis of market data and our cus-tomers’ requirements before our specialists started with the actual development work,” explains Anne Heimes-Scheller, Industrial Coatings Marketing. With this well-structured range, nearly any customer preference can be met.

Dorothe Koberg, head of the coil coatings develop-ment lab, adds: “We have substantially improved our product lines. The new products exhibit significantly enhanced properties, including highly optimized weathering resistance and extreme robustness in processing.” Using carefully defined pigment pastes, the experts at BASF are able to come up with almost any color tone and gloss level. Specially developed converters give the product its particular properties in terms of UV resistance, flexibility, structure and hardness. The desired end product is arrived at by combining converters with pigment paste. Though already a big success, lab technician Michaela Bünker will still be working with POLY-CERAM Plus for some time to come: “You never know, maybe we can even improve it a little bit.” n

POLYCERAM Plus for greater efficiencyInnovation does not only mean developing new products and methods, it also means optimizing proven solutions: the POLYCERAM® Plus topcoat system provides BASF customers with tailored products for coil coating applications.

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High-tech coatings

Wind energy is becoming more and more important as an environ-mentally friendly energy source. At the end of 2009, installed wind turbine capacity worldwide totaled 159 gigawatts (GW) according to the World Wind Energy Association (WWEA). This represents more than 30 percent growth compared to the previous year. The wind turbines account for roughly 2 percent of global electrical power consumption. “What especially differentiates BASF’s RELIUS Industrial Coatings in the growing wind energy market are the company‘s many years of experience. We have been active in this field for a long time, investing in innovative products early on and gaining valuable experience,” explains Dr. Achim Gast, Business Management Industrial Coatings Solutions. BASF supplies coatings for many wind turbine components, including rotor blades, towers, bases and even banisters.

High in the skyWind energy is booming. BASF develops high-tech coatings for wind turbines. The formula for success: innovation and customer service.

Producing rotor blade coatings takes specialized know-how. The stresses a rotor blade has to withstand 90 meters up in the air are tremendous. At today’s top speeds of up to 300 kilometers per hour, the blade tips may bend by more than one meter under the incredible pressure. The weather, too, takes its toll on the blades – snow, rain, heat and UV radiation. BASF supports the manufacturers of these giant systems with innovative products to meet nearly every customer need from body filler to edge protection and topcoats.

Recently, two new products were developed: an environmentally friendly rain erosion topcoat and a thin-layer process coat, both based on polyurethane compounds. “At the high speeds, raindrops turn into tiny bullets. In some cases, considerable erosion damage occurs

7Coatings Partner

after only two years. But a rotor blade is supposed to last between ten and twenty years,” says Dr. Harald Müller, head of industrial coatings development at RELIUS. The new low-solvent rain erosion topcoat pro-tects rotor blades against damage even more effective-ly. BASF staff tested the product at wind speeds of 500 kilometers per hour. In what is known as the ‘helicopter test’, a machine sprays water under high pressure onto a test panel. The rain erosion topcoat performs 2.5 to 5 times better than conventional products.

The aerodynamic rotor blades are built in molds consisting of two heatable half-shells. A process coat layer can be applied as a substrate inside the form to reduce processing costs. This coating gives the ro-tor blade an almost entirely non-porous surface. This reduces the amount of body filler that has to be ap-plied to smooth the surface. “The new process coat

features an extremely short drying time. The product is solvent-free and can be applied in extremely thin layers,” Müller elaborates.

Besides innovative products, customer service is a top priority for the experts at BASF. That’s why the company has established regional units in China, South America and the US, for example. Customers around the world have access to technical support whenever they need it. It is important to go out and visit custom-ers, as there can be big differences between rotor blade producers. Just recently, BASF held an interna-tional workshop in China for discussing the needs of Asian customers and to visit customers’ production plants. n

High-tech coatings

8Coatings Partner

Thomas Leung,in charge of Industrial Coatings in China

Interview

Since 2009, China has led the world in new wind turbine installations. According to the World Wind Energy Association, the amount of new capacity totaled approximately 13,800 megawatts in 2009. This amounts to 36 percent of newly installed capacity worldwide. Coatings Partner talked with Thomas Leung, in charge of Industrial Coatings in China. He oversees the wind energy, coil and foil segments.

“Attractive and demanding”

What is the Chinese market for wind turbine coatings like?The Chinese market for wind turbine coatings is very large, fast developing, and highly competitive. China is one of the top three countries worldwide for installed wind turbine capacity, along with Germany and the US. The Chinese government is heavily promoting renewable energies, thus the wind energy market is extremely dynamic. Over the last four years the rate of growth has continuously doubled year by year. Just within a short period of time, a considerable and di-

verse market has arisen for coatings for onshore and offshore wind turbines. There is a lot of business po-tential for coatings manufacturers due to the size of the market. This has attracted even companies without experience to join the industry.The geographic and climatic variability of China make it a unique market. For coatings manufacturers, their challenge is to be able to solve an entire array of dif-ferent application-related problems.In sum, the Chinese wind turbine coatings market is both attractive and demanding.

9Coatings Partner

Thermal energy reflection

Anyone who has ever had to sit on a black car seat on a hot summer‘s day knows the problem of how dark colors absorb sunlight, converting it into heat. The same effect oc-curs with painted walls, posing a major chal-lenge for professional painters. Surfaces ex-pand when heated by the sun and contract once they have cooled down. This can give rise to unsightly cracks and greatly shorten the lifespan of very dark coatings. But even light-colored surfaces suffer from heat ab-sorption over the long term.

The RELIUS unit of BASF has solved this problem with COOL COLOURS, a technol-ogy that minimizes the thermal effects of sun-light absorption on walls by reflecting thermal radiation. With COOL COLOURS by RELIUS, even dark-colored coated surfaces will never heat up more than conventional light/white

paints. With identical colors, the temperature difference can amount to as much as 20 de-grees Celsius. “Our customers are thrilled,” says Frank Recknagel, head of Product Man-agement at RELIUS. “COOL COLOURS by RELIUS is an innovation that distinguishes us from the competitors,” he adds.

Insulation sheeting installed as part of composite thermal insulation systems sub-stantially increases heat-related expansion and contraction. The resulting elevated risk of cracking has been addressed by avoiding the use of darker colors. Now two coatings of COOL COLOURS paint are enough to eliminate the problem of too much movement causing warping and cracking.

In developing COOL COLOURS, the ex-perts at RELIUS drew upon the know-how

of the BASF Group. “The great cooperation within the BASF Group has led to many revo-lutionary product solutions, and will continue to do so,” declares RELIUS Managing Direc-tor Martin Wulle.

BASF has been using the cool pigments successfully for some time now in the coating of metal coils for roofs, façades and gates. The innovative technology is also used for helicopter coatings. Soon COOL COLOURS will be used with RELIUS wood lasur, archi-tectural coatings and roof coatings. n

The innovation edge: new COOL COLOURS technology by RELIUS reflects thermal radiation off surfaces.

Paint and heat: Darker colors absorb light, ligh-ter colors reflect it. COOL  COLOURS by RELIUS absorb less heat so they look good and resist  damage longer while allowing an unlimited variety of colors for heat insulated façades.

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Color management

“Green is not just green”: Michel Bodeson, head of Topcoats and Color Systems at BASF Coatings, sees differences in colors that seem to look exactly the same. These differences are often invisible to the human eye – but there are important nuances in car refinishes. That is why absolute precision is a must. The color may not differ from the original color; it has to be an exact match.

Coordinated processes and sophisticated technolo-gies are required to get the right mixing ratio in color formulas. BASF Coatings is already a leader in this field, yet its color expertise continues to grow. BASF is focused on “Integrated Computerized Color Manage-

ment” (ICCM). This software solu-tion offers multiple functionalities ranging from color identification to materials administration and cost con-trol. The software was originally developed by BASF in North America, where it is called Smart-Trak®. It has now been translated into 35 languages and is available under different product names.

In 2009, BASF employees further optimized the ICCM and a new generation of the spectrophotometer was launched. It is a portable measurement device capable of precisely identifying colors. The spectrophotom-eter is placed onto the body of the vehicle. It scans

the painted surface and measures the color at different angles. The measured

colorimetric data can then be evaluated by BASF’s ICCM applications. This is how paint-

ers get the right mixing ratio for the required paint. It significantly speeds up the color matching process, and is easy to use.

Bodeson is enthusiastic: “A new ICCM version is soon being released. Then all data can be updated online up to twelve times a year. That will make work a lot easier.” Until now, updates have only been possible using a CD or DVD. n

Tracking down colors using innovative software solutions

Hitting the right tone

11Coatings Partner

Suvinil Less Dripping

Paint drippings on clothes, floors and carpets are an annoying part of renovation. Suvinil®, a BASF Coat-ings brand, has introduced a new product line called Suvinil Less Dripping that reduces paint splattering by 70% compared to the former Suvinil products. These new acrylic paints make cleaning up after each coat-ing easier.

The products have been available for purchase since the start of May. The Less Dripping technology opti-mizes the Less Odor product line with Matt Acrylic Premium, Satin Acrylic Premium, Satin Easy Cleaning Acrylic Premium and SemiGloss Acrylic Premium. “This innovative solution comes as a result of major invest-ment in research and development,” explains Antonio Lacerda, head of the Coatings Business for BASF in South America.

Suvinil experts had 600 professional painters test out the products, comparing the new Suvinil paints with conventional products in blind trials. The finding: 88% of participants confirmed that Suvinil Less Dripping paints run and drip less than competitors’ products. The painters found that the new product line makes application easier, reducing dripping on the floor and paint waste.

“Our customers benefit from easier application while still enjoying outstanding product quality with Suvinil Less Dripping,” says Lacerda. “These paints provide excellent durability and spreading,” he adds. Now ev-ery apartment in Brazil can enjoy discreet whites and brilliant colors, with nearly no drops on the floor. n

Few drips, more paintConvenience for customers – Suvinil introduces a new paint line in Brazil: Suvinil Less Dripping.

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Partnership in China

SAIC launched the Roewe 350 at the 2010 Beijing Auto Show in late April. The Roewe 350 is a brand new car produced at SAIC’s Nanjing plant in the Jiangsu province. In 2005, SAIC acquired the rights to the MG brand and the Rover 25 and 75 models from the Brit-ish carmaker MG Rover. The 25 and 75 models have been marketed under the name of Roewe in China since 2007. In 2009 alone, SAIC sold around 75,000 mid-sized Roewe vehicles in China.For the Roewe 350 model, BASF is supplying two colors, while other colors are to be developed, also using the latest technologies, specifically for SAIC’s environmentally friendly concept cars.

SAIC is truly a “rising star” – a company that has grown substantially in recent years through joint ven-tures with foreign manufacturers. “We see an exciting future partnership with SAIC,” says Walter Liu, Sales Director at BASF Shanghai Coatings Company Limited.The relationship began in 1997, when BASF became the coatings partner of the joint venture between SAIC and Volkswagen (VW). Having recognized the quality and performance of BASF Coatings, SAIC, who has

been working on the launch of its own brands since 2005, decided to continue the partnership and tap into BASF’s vast experience and know-how in innovative automotive coating technologies.

Liu sees the use of BASF paints on the MG and Roewe models as evidence of a “new level of quality” in the cooperation with SAIC. “We are pleased to be the preferred partner in another milestone project in SAIC‘s success story.” The prerequisite was to come up with the winning bid. Supply reliability, efficient prob-

lem-solving ability and innovative solutions – along-side product quality – all added up to enable BASF to secure the contract. “Other key factors were our know-how in setting up paint lines and our outstanding technical service capabilities – both of which we had demonstrated in the earlier days at the SAIC and VW joint venture plants,” adds Liu.

SAIC has introduced waterborne primer and water-borne basecoats, thus bringing its coating facilities in China up to the latest state of technology. In addition, SAIC is planning to implement a new coating process for these two proprietary brands. Production at their new plant will be based on an integrated process – an innovative technology that makes it possible to skip the primer layer, reducing the coating process down to only two applications without compromising quality. This results in a shorter paint line and savings on energy and material consumption. BASF’s long experience in short processes will come as a valuable asset to SAIC in their brand new car manufacturing plant. n

For 13 years, BASF has been col-laborating with the Shanghai Auto-motive Industry Corporation (SAIC), the largest Chinese carmaker today.

Rising Star

13Coatings Partner

General Motors

The partnership between the two firms has a long his-tory, with the company R-M®, today one of BASF’s pre-mium refinish brands, supplying fillers to the carmaker all the way back to the early 1920s. This extensive relation-

ship owes its existence to a steady flow of innovative developments. BASF, for example, helped GM roll

out CathoGuard® 800, a new generation of the cathodic e-coating system, in St. Petersburg, Russia, Flint, Michigan, USA and in São José dos Campos, Brazil, South America in June, 2010.

CathoGuard 800 is lead-free according to US environmental regulations and does not

contain any hazardous air pollutants. BASF has also optimized the use of basecoats at GM’s

Lansing Grand River plant, in Michigan, USA, re-ducing material inventories at vehicle assembly plants

and assisting the car manufacturer with process optimi-zation at several locations.

The Supplier Award by no means represents a new experience for BASF Coatings. In fact, GM has honored BASF products and services six times within the last

eight years. For Juan Carlos Ordoñez, head of the BASF Coatings business in North America, this is no accident: “We work hard every day to strengthen the close partner-ship with General Motors through high-quality products and services.” This time BASF was the only paint supplier to receive an award.

The troubled economy made it one of the toughest years ever for the automobile industry, posing major chal-lenges for both manufacturers and suppliers. For General Motors, the award-winner’s performance under adverse circumstances was particularly worthy of recognition: “The suppliers receiving the award for 2009 substantially exceeded our expectations. They are among the best in the world,” said Bob Socia, Vice President, Global Purchasing and Supply Chain at General Motors.

GM has named a “supplier of the year” since 1992. The award candidates are evaluated as to their per-formance in the categories of quality, service, technol-ogy and price. n

Long-standing loyalty pays off – this becomes clear looking at the relationship between BASF Coatings and General Motors (GM). The carmaker awards the 2009 Best Supplier Award to BASF Coatings in recognition of outstanding performance.

Outstanding service

14Coatings Partner

Mat clearcoat

As the top layer of automotive coatings, clearcoats provide extra protection and scratch resistance. Glossy finishes have something untouchable about them, but mat clearcoat makes you want to run your hand over the silky, smooth surface. “Mat clearcoat changes the effect of the coating. The muted-looking fin-ish has something of a plastic look to it,” says BASF color designer Eva Höfli. “The resulting contrast between mat and glossy automobile add-on parts is particularly striking.”

The material used to produce the mat look has the consistence of a fine powder and is mixed with a standard clear. “Chemically it is like sand or

glass, but extremely fine and highly porous,” explains Dr. Holger Krumm, lab manager at the BASF automo-bile clearcoat competence center.

The more matting agents are stirred into the clear, the greater the effect. “It is thus possible to

have differing degrees of gloss in the hardened finish,” says Andrea Rump, BASF clearcoat product manager. Mat clearcoats are used in OEM coating and for coating add-on

parts, and they are available in a va-riety of clearcoat technologies. “The look of a mat clearcoat is also heavily influenced by the underlying layer of paint, i.e. the basecoat,” Rump em-

phasizes. The application of mat clearcoats is a so-phisticated procedure that differs from standard OEM coating. That is why in the past it has only been used in smaller circulation lines for individual series. “We are working steadily to further optimize mat clearcoat technologically, as we expect demand to rise,” remarks Holger Krumm.

Mat clearcoats occupy a significant place in the latest BASF color trend collection for 2010/2011. “They give silver colors in particular a cool high-tech feel,” says Eva Höfli, who believes the future is bright for mat clearcoats. n

They are a real eye-catcher at major automobile exhibitions. More and more carmakers are presenting models in a new visual style – with mat clearcoats. Previously only used with custom paint jobs, now they are increasingly being used in smaller production runs as well.

Striking contrast

Protection and scratch resis-tance: the left side of the speed-shape, an aluminium automotive 

form, is covered with mat, the right side with glossy clearcoat

15Coatings Partner

BASF is the world’s leading chemical company: The Chemical Company. Worldwide, we help our customers to be more success-ful through intelligent system solutions and high-quality products. BASF has significant market positions in the coatings sector in Europe, North America, South America and the Asia Pacific region.

We bring color to life

n  COATINGS SOLUTIONS

GlobalGlobal: BASF’s coatings business

16Coatings Partner