Recovery from the drop in demand
The Pigments business recovered well from the weak global demand in 2009. Total revenues of the Pigments business unit in 2010 amounted to EUR 325 million, which is 37% more than in the 2009 crisis year. Total revenues were especially high in the third quarter. This upswing was due to the marked increase in demand in the automotive industry, which returned to, or even exceeded, pre-crisis levels. With effect pigments for automotive coatings, Merck is an important supplier to the industry.
Demand for consumer goods revived following a long period of consumer restraint. This favorably impacted the business with pigments for plastics, print products and cosmetic products, as did the generally positive consumer sentiment. Positive currency effects provided an additional boost to the business unit.
We also continue to focus our innovation efforts on profitable pigments such as Candurin® pigments for coating foods and pharmaceuticals, and on the Pyrisma™ line of products, which covers a wide color range and offers intense effects.
Full capacity utilization
The generally strong order situation resulted in a return to full production capacity utilization in March 2010. We shifted some of our standard pigment production from Onahama in Japan to Gernsheim in Germany so that we could expand capacities for Xyrallic® pigment production at the Japanese site. The reason for this is the strong demand for these pigments containing aluminum oxide flakes – particularly from the automotive industry.
Additionally, in October we laid the cornerstone for the construction of a new plant to produce Meoxal™ at the Onahama site in Japan. Commercial production of Meoxal™, an effect pigment based on aluminum flakes coated with metal oxide, is scheduled to start in 2012. The pigment is distinguished by high color saturation, good hiding power and superior corrosion resistance. High demand is expected particularly from the automotive and cosmetics industries.
By completing the integration of Suzhou Taizhu Technology Development, the leading supplier of effect pigments in China, we further expanded our position in the fast-growing Chinese market. The acquisition in 2009 gave us the possibility to more actively target the mid-range price segment with an expanded range of products.
New cosmetic applications
In 2010, Merck significantly expanded its portfolio in both cosmetic functional fillers and in the core pearl luster pigments business. With RonaCare® Cyclopeptide-5, Merck introduced the world’s first cyclic peptide for the cosmetics industry. Thanks to its cyclic molecular design, the active ingredient displays high stability and high selectivity for its biological target site in the skin. The peptide is capable of reactivating the decelerated repair processes of mature skin and stimulating its natural regeneration. The appearance of lines and wrinkles is reduced after just brief use. The skin becomes significantly more supple, elastic and firm.
Scratch-resistant automotive coatings based on nanotechnology
The innovative additive Tivida™ has provided additional impetus. Based on nanotechnology, this product improves the scratch resistance of automotive coatings. The additive can be perfectly incorporated into the composition of the binding agent, thus changing its structure. The nanoparticles make the solvent-based coating system harder and at the same time more elastic due to the cross-linking of the polymer shell with the binding agent. Tivida™ provides the desired protection against scratches long after a fresh coating is applied, lasting throughout the subsequent use of the coated item. Tivida™ AS 1010, the first product in the brand family, makes it possible to protect high-gloss surfaces, for example the majority of clear coatings used in the automotive industry, against minor everyday scratches much longer than previously possible.
For plastics laser marking, Merck offers Micabs®C 431 and Micabs®C 411, two new additives in granulate form. They are free from heavy metals and thus approved for laser marking of food packaging as well as for toy production.
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