Buenos Aires-based Sinteplast is methodically increasing its footprint in Latin America to further develop its export market for paints and coatings made in the region. With the latest purchase of a Sulan, a small manufacturer in Brazil, the company is solidifying its export potential, which hit some $9 million in 2015, the company indicatesd.

While the Argentine market grew about six percent in 2015 thanks to strong architectural segment demand, the devaluation of the peso — now in free float – earlier this year is expected to diminish industry-wide growth. Sinteplast increased production last year by about 13 percent, according to comments by CFO Claudio Rodríguez made to Diario de Mendoza, in November.

In February of this year, Sinteplast acquired Tintas Sulan, based in Santo André, in Sao Paulo State, for an estimated $3 million. With an estimated production capacity of 360,000 liters of paint and coatings per month, Sulan has been growing rapidly in Brazil, particularly in the automotive space. To help combat frequent currency rate changes, the company indicated that it typically holds six to eight months’ worth of raw materials to avoid sudden cost escalation. Sinteplast already had a Brazilian production facility in Rio de Janeiro. 

Sinteplast also recently completed an expansion of its Ezeiza plant lines, at an estimated cost of $6 million along with an estimated $1.6 million warehouse expansion for the $20 million just-in-time facility. The company also has enamel and resins production plant in San Luis, and Córdoba is the third Argentine production site. The company also manufactures under license in Bolivia, Brazil and Uruguay. Sinteplast manufactures under Valspar and Debeer licenses for automotive lines.

With all locations included, this year the company expects to produce 80 million liters per year, along with 4,300 tons of powder coatings, according to a recent company statement. Sinteplast also noted that standard paint lines – like Vinilplast – represent the bulk of sales growth, while premium lines are expanding less rapidly. Among new product launches scheduled for 2016 are products within the Casablanca architectural line, part of the $100 million acquisition of some BASF paint lines in 2013.

These and other investments are part of a $46 million expansion campaign already in progress, according to comments by Rodríguez. This investment was designed to raise the company’s Argentine market share of the paint and coatings market from 16 percent to 21 percent, the company indicated. One strategy for expansion is the increasing number of company paint stores, Colorshop, some 200 of which are operated under franchise in Argentina, Bolivia, Paraguay and Uruguay. This store line offers architectural, automotive and industrial products.

Among international agreements and licenses, Sinteplast in 2012 agreed to market products from Chugoku Marine Paints, based in Tokyo, in Bolivia, Brazil, Paraguay, Peru and Uruguay, with the then stated goal of increasing sales by over 10 percent. Apart from these market targets, Sinteplast also exports its own lines to Chile, Costa Rica, Cuba, the Dominican Republic, Ecuador, India, Israel and Nigeria.