Lee Hong Leng, technical executive, for Hexion Specialty Chemicals discusses the groups’ drive to keep up with environmental trends and overcome the financial crisis

Q: How is the chemicals for coatings and inks’ market in Asia pacific?

A: The market in Asia has been badly affected by the economic downturn in the USA and Europe. Most of the industries have experienced lower sales in Q4 2008 and Q1 2009 but the market should rebound by Q2 2009. At the moment we are expecting the market to remain stable and possibly record positive growth, especially in the Asia region.

Q: Is your business mainly export or import driven? How is it divided?

A: The business unit that I am with is the Additive Technology Group (ATG). We are one of the pioneers in supplying additives for coatings and inks and are very much export driven. We export our chemicals to the USA, Europe, Oceania and Asia. We also have technical sales offices in Europe, USA, South America and Asia to cater for regional market demand.

Q: Which are your most important markets in: a) Europe b) Asia Pacific

A: Additives for paper laminating and wood panels are our main markets in both Europe and Asia Pacific.

Q: How does the Asian chemicals market compare to that of Europe and the USA? 

A: There’s no doubt that Europe and the USA still are the biggest markets for chemicals by a long way. But the Asian chemicals industries are slowly catching up. There are many business opportunities falling within the region.

Q: What trends are you seeing in the chemicals for coatings market in Asia?

A: Ecology and environmentally friendly chemicals are the future trends for the coatings market here. Our chemicals are all formulated with eco-friendliness in mind.

Q: How is Hexion responding to these trends?

A: While we continue to develop products, which respond to our customers’ feedback, we also ensure that our products strictly conform to the international and regional regulatory and compliance standards. Most of our products are water-based. Preserving the environment has proven to be a big challenge for Asia.

Q: Have you seen a growth in demand for environmental products in Malaysia / Asia?

A: Yes, the demand for ‘green’ products has been growing in Malaysia and Asia tremendously. Most of the chemical suppliers there are starting to show concern over the impact of their products on the environment and on human health.

Q: What is Hexion doing to promote environmental alternatives?

A: Hexion ATG has an independent division that looks after the product regulatory and compliance status. We have invested heavily in a compliance database which has a direct link to the compliance / regulation bodies by country. With support from the division, our research and development team will be able to formulate products that fully comply with international standards.

Q: Do you think the chemicals for coatings market in Asia will continue to grow?

A: I believe it will, as the market here is extensive. Many companies from the USA and Europe have started to move their production to Asia in view of the lower costs, especially to areas in Southeast Asia such as Vietnam.

Q: How are your chemistries affected by rising costs?

A: Some of our products are affected by rising fuel and raw material prices but we have managed to improve the efficiency of production to offset this threat.

Q: What is your future strategy for the Asia Pacific region?

A: To continue working closely with our customers to develop new ideas and applications. We are not solely a chemical supplier but a trustworthy business partner in providing chemicals solution. We are currently working on new products for coatings industry, mainly in wood coatings.