Feature 1 | COATINGS


Cost hikes offset by long-term maintenance gains


Prices for coatings are on the increase, but a combination of increased maintenance awareness by offshore vessel operators, as well as increasingly high safety standards, means that the industry is generally swallowing the extra cost, writes Gavin van Marle.


to go up as a result of the increased costs of raw materials and production. Danish supplier Hempel said in an industry statement that, over the course of 2010, the average price of raw materials used in coating manufacturing increased by 10-60% for raw materials such as epoxy, titanium dioxide and industrial metals. “Looking ahead, we foresee continued raw


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material price inflation as well as shortage in availability of key raw materials,” said Klaus Møller, Hempel’s group vice president of marketing. “Tis is extremely unfortunate. However, we are going to great lengths to optimise our own processes so that we can continue to supply the same high-value coatings and services our customers have come to expect.” UK-based International Paint tells a


similar story, and Paul Westcott, marine and protective coatings commercial director, says: “We have attempted to minimise the impact on our customers for as long as possible by leveraging our buying power and driving internal cost-saving measures. Unfortunately the increase in costs shows no sign of abatement and therefore regrettably we now have little choice but to initiate a programme of product price rises.” He says that there is pressure on both


the supply and demand side of raw material supply, with general de-stocking in the supply chain, reduced raw material manufacturing capacity and supply outages compounding raw material


shortages.


Meanwhile, demand is high in emerging market economies, while prices are also being fuelled by commodity speculators. However, the increase in prices has


not had a material effect on owners and operators of offshore vessels. Lynda Speed,


ast year, two of the largest paint manufacturers announced that prices of their products would have


Drillship Leiv Eiriksson’s two pontoons were fitted with an ICCP system comprising a 24V thyristor control panel wired to six anodes and two reference electrodes.


technical consultant at marine coatings advisory firm Safinah, says that the hike in costs would not make any difference on choice of coatings.“Coatings are a protective measure – you have to have them; there’s very little choice in the matter,” she comments. Although Speed is unable to put a precise figure on the amount by which costs have risen, she says it is “quite significant” and that the challenge is being faced by everybody in the industry. Ultimately, she says, the pain will be felt most acutely by paint manufacturers, who will see “margins eroded” as the costs are not just related to raw materials and chemicals, but also to the rise of fuel costs associated with their own supply chains.


Durability is key Nonetheless, paint manufacturers agree that the advantages of applying adequate coatings far outweighed the increased cost


Offshore Marine Technology 1st Quarter 2012


of the coatings, due to the high value of the assets they protect. “Te selection of high performance coatings has been a benefit to the offshore industry,” a spokesperson for International Paint tells Offshore Marine Technology. “Paint suppliers have been able to identify technologies which give owners and operators confidence in a coating’s service life. For instance, it is accepted by many that the corrosion protection afforded by aluminium pure epoxies provides the best performance in water ballast tanks and crude oil tanks for floating production assets. “Coatings manufacturers have helped the


industry by repeatedly testing paint systems, allowing differentiation between the various technologies and binders used in paints. At the same time, owners interested in long term asset integrity have embraced the need for durable long term anticorrosion protection.” He


adds that the development of


aluminium pure epoxies coatings for 17


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