Industry News, Adhesives & Sealants & Tackifiers
2016 ASI Top 25: Leading Worldwide Manufacturers Of Adhesives And Sealants
This issue of Adhesives & Sealants Industry magazine brings the ASI Top 25, exclusive ranking of the leading 25 worldwide manufacturers of adhesives and sealants. ASI combined reader survey information with details from company websites, annual reports and press releases to compile the rankings. Included with each company’s listing are contact information, estimated 2015 sales figures (if publishable), a company profile, and news highlights.
3M
Estimated 2015 revenue: $30.3 billion
3M applies science in collaborative ways to improve lives daily. While leading a broad range of markets—from health care and highway safety to office products, abrasives and adhesives, 3M’s 90,000 employees connect with customers all around the world.
“2015 was an important year as we prepared and positioned our company for long-term success,” said Inge G. Thulin, 3M’s chairman, president and CEO. “We strengthened and focused our portfolio, made significant investments in the business to support growth, and made good progress in moving toward a more efficient business model through business transformation and our corporate restructuring. We are building an even stronger and more competitive company for 2016 and beyond.”
In March 2015, 3M announced plans for a new West Region Technical Center in Chengdu, China, reportedly one of the largest growing cities for technology and innovation in western China. The West Region Technical Center will be strategically placed in a technology park in Chengdu, allowing 3M access to the city’s geographical advantages and market potential. The customer technical center is set to open in November.
“We will double-down on our investment in Chengdu,” said Thulin. “Our new technical center will strengthen our relationship with local customers and allow 3M science to continue solving problems and improving lives across China.”
Also in March, 3M announced that Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, named 3M a 2015 World’s Most Ethical Company® for the second time. The designation reportedly recognized 3M’s impact on the way business is conducted through its efforts of fostering a culture of ethics and transparency at every level of the company. In particular, Ethisphere recognized 3M’s compliance and ethics program and how effectively it is applied throughout the entire multinational company, creating strong social responsibility and corporate citizenship.
“At 3M, living by our Code of Conduct is a team effort and a responsibility we uphold for our customers, for our shareholders and for each other,” said Jim Zappa, chief compliance officer. “The commitment of our people to the highest ethical standard and to doing business the right way promotes trust with our customers and in the quality of our products. Furthermore, it gives us confidence to grow our business anywhere in the world.”
Henkel AG & Co. KGaA
Estimated 2015 revenue: $20.4 billion (€18.1 billion) | Adhesive Technologies sales: $10.169 billion (“8.992 billion), up 10.6% from last year
Henkel operates worldwide in three business areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies. Adhesives, sealants and surface treatments from Henkel serve the transportation, electronics, aerospace, metal, durable goods, consumer goods, maintenance, and repair and packaging industries, with a range of products for the craftsman and consumer.
In 2015, Henkel’s Adhesive Technologies business unit reportedly generated around 30% of its sales with products that were launched onto the market in the last five years. Loctite is the largest brand within the Adhesive Technologies business unit. Loctite products are used in more than 130 countries globally and in industries including aerospace, automotive, and industrial assembly and repair. It is also widely used in consumer applications. In 2015, Loctite products achieved sales of around @2.7 billion (~ $3 billion).
In April 2015, Novamelt announced it was acquired by Henkel. Novamelt has production locations in Wehr, Germany, and North Carolina. In 2014, the company reported a turnover of approximately @50 million (~ $54 million). It employs 100 people.
Huntsman
Estimated 2015 revenue: $10.29 billion
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
In July 2015, Huntsman announced that the Michigan Occupational Safety and Health Administration (MIOSHA) gave its Auburn Hills, Mich., site continued status as a “Star” participant in the Michigan Voluntary Protection Program (MVPP), reportedly keeping the status the site has maintained since 2004. The “Star” review process begins with a pre-audit outlining the site’s current safety program. MIOSHA then sends representatives to the site over a three-day period to review the pre-audit, tour the facility and conduct interviews with company employees.
“This recognition exemplifies the result of successful efforts by all associates, and government, in partnering for excellence in workplace safety and health,” said Pete Panourgias, Environmental, Health and Safety (EHS) manager at the site.
Avery Dennison
Estimated 2015 revenue: $5.97 billion
Avery Dennison develops innovative solutions for the global adhesives market. The company specializes in pressure-sensitive technology and self-adhesive office and consumer products. The company reported its net sales in fiscal 2015 declined approximately 6%.
“In 2015, we delivered strong organic sales growth and double-digit growth in adjusted earnings per share, in spite of challenging economic conditions in many parts of the world and significant headwinds from currency translation,” said Dean Scarborough, chairman and CEO.
“Pressure-Sensitive Materials delivered its fourth consecutive year of strong volume growth, while significantly improving its profitability and return on capital,” Scarborough said. “Retail Branding and Information Solutions began executing a new strategy in 2015 to accelerate growth in the core business through a more competitive, faster, and simpler business model, and made solid progress against its long-term financial goals during the back half of the year.
“In 2016, we expect to deliver solid organic sales growth and further expand our margins and return on capital, notwithstanding continued headwinds from currency translation and an uncertain economic climate, with continued return of cash to shareholders,” he said. “We remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline.”
Wacker Chemie AG
Estimated 2015 revenue: $5.94 billion (€5.3 billion)
Wacker is a globally active chemical company with some 16,000 employees. Spanning the globe with five business divisions, the company currently operates 25 production sites worldwide. Wacker has 21 subsidiaries and 48 sales offices in 29 countries worldwide.
Following a generally robust fourth quarter, Wacker Chemie AG reportedly achieved its sales target for full-year 2015 and slightly exceeded its earnings expectations. According to preliminary calculations, the company posted total sales of @5.3 billion in 2015, an increase of 9.7% compared to @4.83 billion (~ $ 5.48 billion) in 2014. This increase was chiefly the result of higher volumes and favorable exchange-rate effects. Every division generated year-over-year sales growth in 2015.
Dow Corning Corp.
Estimated 2015 revenue: $5.65 billion
Dow Corning provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, the company offers more than 7,000 products.
In December 2015, The Dow Chemical Co. announced it has signed agreements to restructure the ownership of Dow Corning Corp. Under the terms of the agreement, Dow will become the 100% owner of Dow Corning, currently a 50:50 joint venture between Dow and Corning. Dow and Corning will reportedly maintain their current equity stake in Hemlock Semiconductor Group.In December 2015, The Dow Chemical Co. announced it has signed agreements to restructure the ownership of Dow Corning Corp. Under the terms of the agreement, Dow will become the 100% owner of Dow Corning, currently a 50:50 joint venture between Dow and Corning. Dow and Corning will reportedly maintain their current equity stake in Hemlock Semiconductor Group.
Sika AG
Estimated 2015 revenue: $5.642 billion (5.489 billion CHF)
Sika AG supplies the building, construction and manufacturing industries with products for sealing, bonding, damping, reinforcing, and protecting load-bearing structures. In April 2015, Sika opened a new mortar manufacturing facility in Dubai and a concrete admixture plant on Réunion, United Arab Emirates. These openings reportedly help Sika react to the growing demand in the respective markets and strengthen its relationships with existing customers.
Also in April 2015, Sika founded a subsidiary company in Myanmar and opened a new production plant in Sri Lanka. These actions are intended to help the company to further utilize market potential and consolidate its position in one of the world’s most important growth regions.
The company also expanded its presence in Sri Lanka, where it has opened a new concrete admixture plant in Ekala. The factory will produce a range of high-end additives for the construction industry, allowing Sika to supply the local market directly and be part of the dynamic development of the construction activities in the country.
In May 2015, Sika Region NA Automotive announced that Webasto-Edscha Cabrio USA has honored it with the Quality Excellence Award. Sika reportedly received the quality award for meeting a stringent set of customer quality criteria.
“The Sika Automotive OES team has worked extremely hard to ensure quality products and great service to our OES customer, Webasto-Edscha Cabrio USA,” said Tom Fitzgerald, senior vice president. “We are truly grateful for this recognition. It is Sika Automotive’s continuing objective to help our customers to make vehicles lighter, stronger, safer, quieter and greener.”
RPM International Inc.
Estimated 2015 revenue: $4.59 billion
RPM International Inc. is a holding company with subsidiaries that are world leaders in specialty coatings, sealants, building materials, and related services that focus on both industrial and consumer markets. Companies in its industrial products group, which brought in 65% of sales in 2013, include Tremco and Universal Sealants, while DAP, Rust-Oleum and others serve the consumer sector and earned the remaining 35% of sales last year.
Fiscal 2015 consolidated net sales increased 5% to $4.59 billion from $4.38 billion in fiscal 2014. Sales for the industrial segment increased 8% to $2.99 billion, compared to $2.77 billion in fiscal 2014. Consumer segment sales for fiscal 2015 decreased slightly to $1.60 billion, vs. $1.61 billion in fiscal 2014.
“For fiscal 2016, we expect consumer segment sales to increase by 4-5%, with our core consumer businesses continuing to gain market share with new product innovations,” said Frank C. Sullivan, chairman and CEO. “Unfortunately, poor weather from the spring has continued into the summer months, dampening first-quarter sales. On a more positive note, we expect a return to both top- and bottom-line growth in our Synta and Kirker units, both of which faced significant headwinds in fiscal 2015.”
Dow Automotive Systems
Estimated 2015 revenue: $2.6 billion
Dow Automotive Systems is a technology-driven solutions provider offering products and technologies that bolster safety and health performance, improve energy efficiency, and enhance quality and appeal, while reducing manufacturing costs. In November 2015, Dow Automotive Systems announced that its BETAMATE™ structural adhesives appeared on the R&D 100 list of most significant technology innovations of the year. The adhesives are reportedly specified for use in multi-material lightweight applications in passenger cars, trucks/utility and commercial vehicles. The adhesives for aluminum bonding were also recognized as a 2015 Edison Award winner and a 2014 PACE Award winner for collaboration and product innovation.
MAPEI
Estimated 2015 revenue: $2.57 billion (€2.3 billion) | Adhesive Technologies sales: $2.6 billion
For more nearly 80 years, MAPEI has produced adhesives and sealants for the building industry. The company currently operates 68 production facilities in 31 countries around the world.
H.B. Fuller
Estimated 2015 revenue: $2.084 billion
H.B. Fuller provides adhesives, sealants and other specialty chemical products for markets and applications including packaging, building and construction, paper converting, woodworking adhesives, general assembly adhesives and laminates, person hygiene and nonwovens, tile and floor adhesive products, and polymers. In 2015, as a percentage of total net revenue by operating segment, Americas Adhesives was 42%, EIMEA comprised 29%, Asia-Pacific made up 18% and Construction Products represented 11%. Net revenue for the Americas Adhesives segment was $876.8 million in 2015. The Americas Adhesives operating segment includes a range of specialty adhesives such as thermoplastic, thermoset, reactive, and water- and solvent-based products. Sales are made primarily through a direct sales force, with a smaller portion of sales through distributors.
In February 2015, H.B. Fuller Co. finalized the previously announced purchase of Continental Products Ltd., a provider of industrial adhesives to the East and Central Africa markets, and TONSAN Adhesive Inc., reportedly the largest independent engineering adhesives provider in China.
Bostik SA
Estimated 2015 revenue: $1.79 billion (”1.6 billion)
Bostik manufactures and supplies adhesives and sealants for markets including personal care and hygiene, construction, transportation, packaging, and industrial assembly. On February 2, 2015, Arkema finalized the acquisition of Bostik, which reported @1.533 billion (~ $1.673 billion) in sales and @158 million (~ $177 million) EBITDA in 2014.
In July 2015, Bostik opened a new plant at its manufacturing facility in Bangalore, India, intended to extend its hot-melt pressure-sensitive adhesives (HMPSA) production capacities. In December, Bostik extended its production capacities with a new HMPSA plant in Monterrey, Mexico. The expansion is reportedly in line with the company’s plans to expand in high growth regions and will enhance its ability to serve customers in the disposable hygiene market.
Also in December, the company opened a new Production Facility and Training Center in Dallas, which would reportedly produce ceramic tile adhesives and floor preparation products.
Illinois Tool Works Inc.
Estimated 2015 revenue, Polymers & Fluids segment: $1.7 billion
Bostik manufactures and supplies adhesives and sealants for markets including personal care and hygiene, construction, transportation, packaging, and industrial assembly. On February 2, 2015, Arkema finalized the acquisition of Bostik, which reported @1.533 billion (~ $1.673 billion) in sales and @158 million (~ $177 million) EBITDA in 2014.
In July 2015, Bostik opened a new plant at its manufacturing facility in Bangalore, India, intended to extend its hot-melt pressure-sensitive adhesives (HMPSA) production capacities. In December, Bostik extended its production capacities with a new HMPSA plant in Monterrey, Mexico. The expansion is reportedly in line with the company’s plans to expand in high growth regions and will enhance its ability to serve customers in the disposable hygiene market.
Also in December, the company opened a new Production Facility and Training Center in Dallas, which would reportedly produce ceramic tile adhesives and floor preparation products.
LORD Corp.
LORD Corp. is a diversified technology and manufacturing company developing adhesives, coatings, motion-management devices, and sensing technologies that reduce risk and improve product performance. For more than 90 years, LORD has worked in collaboration with its customers to provide innovative oil and gas, aerospace, defense, automotive, and industrial solutions. With world headquarters in Cary, N.C., LORD has approximately 3,000 employees in 26 countries and operates 18 manufacturing facilities and nine R&D centers worldwide. LORD actively promotes STEM education and many other community engagement initiatives.
Royal Adhesives & Sealants
Royal Adhesives & Sealants is a manufacturer and marketer of high-performance adhesives, sealants, encapsulants, and specialty polymers used in a variety of markets, including aerospace and defense, automotive, recreational vehicle, bus, truck and trailer, marine, assembly, electrical/electronic, filter, printing, packaging and laminating, roofing, and flooring. In June 2015, Arsenal Capital Partners announced it had completed the sale of portfolio company Royal Adhesives and Sealants LLC to American Securities LLC.
“We are very pleased to have worked with CEO Ted Clark and his management,” said Tim Zappala, a partner who co-heads Arsenal’s Specialty Industrial group. “During our partnership, we successfully established Royal as a leading player in niche, high-growth end markets with a particular emphasis on the substitution of traditional mechanical fasteners toward adhesives and sealants technologies, which improve reliability and performance and provide a cost-effective solution to Royal’s global customers.”
“We greatly appreciate Arsenal’s significant support of the management team, employees and customers throughout the last five years in the execution of our organic growth and acquisition strategy,” said Ted Clark, Royal CEO. “Arsenal’s deep understanding of the industry and their commitment to the investment contributed to the remarkable outcome achieved by the company. The new partnership with American Securities will allow us to continue Royal’s growth trajectory and we look forward to the next phase of the company’s evolution.”
Last month, Grace Matthews Inc. and CASS Polymers, a Shoreview Industries portfolio company, announced that Bacon Adhesives has been acquired by Royal Adhesives & Sealants. Bacon previously operated as a division of CASS Polymers. Grace Matthews advised CASS Polymers and Shoreview Industries on this transaction.
Mactac® North America
Mactac North America is a leader in the manufacture and supply of pressure-sensitive adhesives (PSAs) and has been a trusted source of PSA tapes for over 50 years. The company serves industries including labeling, packaging, assembly engineering, automotive assembly, medical device assembly, graphic design, digital imaging, and more.
In March 2015, MACtac appointed Ed T. LaForge to the position of president for MACtac North and South America. He most recently served as the Americas vice president of Sales and Marketing, and has spent 23 years at the company leading a variety of functions. LaForge succeeded Jim Peruzzi, who decided to pursue other interests after MACtac’s divestiture from Bemis to Platinum Equity.
Jowat Corp.
Estimated 2015 revenue: $305 million
The Jowat Corp. was established in 1979 as a subsidiary of Jowat SE (established in 1919). The company manufactures adhesives used in industrial applications, including wood and furniture, paper and packaging, construction, structural wood, upholstery, mattress and foam converting, graphics and bookbinding, automotive, textile, and assembly.
In May 2015, Jowat SE announced it opened a new plant in Balakong, Malaysia. The new plant in the Industrial Park Bandar Enstek was built on an area of approximately 45,000 sq m that is reportedly a favorable location for logistic reasons, since it is located near the Kuala Lumpur airport. With a staff of 80 employees, the plant is intended to function as a regional center for manufacture, applications and R&D, covering substantial parts of the company’s entire production portfolio.
“Malaysia is not an extension of our workbench, but an independent location and bridgehead, where we are also undertaking product R&D in order to provide the highest level of satisfaction for the requirements of local customers,” said Ralf Schelbach, Ph.D., vice president, Asia-Pacific. “Being close to the customer in this respect means being able to to recognize his necessities as soon as possible and to convert these very fast into marketable adhesive systems.”
Franklin International
Franklin International manufactures adhesives for the domestic and global wood furniture, millwork, construction and engineered-lamination markets. It also provides pressure-sensitive adhesives for office products and food packaging, and specialty polymers to various companies to formulate or use them in fiberglass, filter fabrication, and nonwovens.
Wisdom Adhesives Worldwide
Wisdom Adhesives Worldwide is a global leader in the manufacture and formulation of hot-melt and water-based adhesives for the packaging, converting and graphic arts markets. Core products and technologies include: olefin and EVA hot melts, pressure-sensitive adhesives, PVAc and VAE water-based adhesives, and protein and dextrin adhesives, as well as custom adhesives for specific needs.
“We continue to experience sales growth and attribute much of this growth to our focused, laser-sharp market and product approach to customers’ needs,” said Jeff Wisdom, CEO and fifth generation owner of Wisdom. “We are seeing an ever-growing number of industrial users selecting us as their go-to source for adhesives solutions.”
Founded in 1875 by Philip Wisdom, Wisdom Adhesives Worldwide is reportedly the longest continuously operating adhesives manufacturer in the world, with company leadership headed by five consecutive generations of the Wisdom family. Today, Wisdom has production facilities and sales offices in the U.S. and Canada, Belgium, Turkey, India, Malaysia, China, Australia, Mexico, and many other markets.
The Reynolds Co.
The Reynolds Co. is a manufacturer of water-based, hot-melt and dry-blended adhesives. The company also performs customized, contract or “toll” blending, as well as private labeling.
DELO Industrial Adhesives
Estimated 2015 revenue: $88.5 million (90% adhesives, 10% sealants)
“After an outstanding 2014, in which the company grew 24%, 2015 shaped up to be a decent year as well,” said Robert Saller, director of sales international and management board member. “Although it appears that U.S. revenues were slightly under what we did in 2014, it is not an equal comparison due to exchange rate effects. When calculated in euros and taking into account that our headquarters and most employees are in Europe, DELO was able to grow an additional 8% over the year before. At an industry level, we had tremendous growth in the field of automotive electronics. We were able to increase our revenues in this sector by more than 20%. Other drivers of growth were aerospace and consumer electronics.
“As in recent years, we intend to achieve a triple-15,” he said. “We aim to increase our revenues by 15%, supported by a growth of our workforce at this rate as well. We also plan to re-invest a share of 15% of our revenues in R&D. After having opened an office in Japan and expanded our partner network in Mexico, Brazil and a few other countries recently, we are considering expanding our footprint into Southeast Asia with additional offices and distributors. We are also working toward hiring more sales engineers in the U.S.
“Over the past year we have increased our workforce by 10%,” Saller said. “With so many new and exciting ideas about adhesive applications, it is important for us to continue to hire knowledgeable and capable employees to help continue to move our vision forward.”
General Sealants Inc.
For over 50 years, General Sealants Inc. has specialized in the manufacture of unique sealants and adhesives for its customer base in the aerospace, telecommunication, automotive OEM, composites, HVAC, pipeline, highway, industrial manufacturing, construction, and RV/caravan industries. Headquartered in City of Industry, Calif., and with current product distribution in over 72 countries, General Sealants is one of the longest continuously operating, privately held extruded sealant manufacturers in the world. Company leadership has been headed by three consecutive generations.
Sashco
Since 1936, Sashco has provided high-performance sealants and stains for conventional and log structures.
Yokohama Industries Americas Inc.
In 1989, Yokohama Hydex established YH America to meet the ever-growing demands of U.S. automakers. YH America’s Sealant Division, located in Versailles, Ky., is a global supplier of high-performance glass bonding adhesive systems to the transportation industry.
Uniseal Inc.
Uniseal develops application-based adhesive and sealant solutions to meet the unique needs of its automotive OEM customers and customers in other industries. Products are supplied globally for use in the automotive, heavy truck and trailer, agricultural and heavy equipment, and general industrial markets.