BASF Wattyl Coatings - one year on

PROFILE basf



In April last year, leading international refinishing paint manufacturer BASF Coatings announced that it was to join forces with Wattyl Australia's automotive division to create BASF Wattyl Coatings Pty Ltd -- one of the largest distributors of automotive refinishing products in Australia. Michel Malik revisits, one year on.

The merger seemed ideal. Wattyl customers were asking for a relationship with a paint company which enjoyed major manufacturer approvals. BASF was looking to stake a major claim in the Australian market for its Glasurit brand through the joint venture with a company which had a strong customer base -- a company which would also benefit from a technology upgrade. The joint venture was formed in 1 July 1999.

But how has the joint venture gone and how is the new company tracking in the new millennium? To find out, I caught up with the man behind the merger, Glasurit managing director Andreas Riehemann.

APPJoint ventures can be judged on success of customer conversions. How would you rate the Glasurit and Wattyl marriage?

We have converted several hundred customers and managed to secure almost all of the accounts we targeted. The response represents the strength of the Glasurit brand, the need for the merger and the versatility of the bodyshops Glasurit had converted.
In terms of success it also suggests that Glasurit now has a stronger and more positive reputation than two years ago.
Glasurit's excellent reputation for quality made the conversion process easier. Customers were not worried about the performance of the product. Its performance is being proven by hundreds of bodyshops around Australia each day.
The feedback about the merger has also been very positive. I recently visited two of the larger Glasurit bodyshops. Both are finding the products easy to use. They have noticed an increase in quality and a decrease in 'reworks'.
Both owners said a major reason for their satisfaction was the time savings they made through using Glasurit colour matching tools, fast drying products like 55 Line and the new Glasurit Racing Clear 923-144.

APPHow is the joint venture tracking now?

ARWe now have what we didn't have before - and that is national coverage with regards to distribution. We have our own staff in all Australian regions. In Sydney the warehouse has been extended to accommodate the rapid expansion. It now holds up to five times more stock than before.
The colour matching of all new paint lines inherited under the joint venture has been completed, along with all formulas for locally manufactured vehicles. As part of the conversion process, hundreds of end-users attended training and demonstrations around Australia and in our training centres in Sydney, Melbourne and Adelaide.
These facilities and their teams are now poised to continue training and to promote a strong customer service drive this year.

APPWhat changes have been made to accommodate the joint venture?

AROur new state-of-the-art business centre is one of the most significant changes. It includes a warehouse, the colour laboratory and training centre. The extensive training programs and ongoing customer service initiative has provided us with the opportunity to invite former Glasurit Asia Pacific training manager Jim Tibbatts to move from Malaysia to run the Glasurit training program. He is one of the most knowledgeable Glasurit trainers in the business, having worked 16 years for Glasurit - for the last three in Asia -- and for Rolls Royce in the UK before that. He will prove to be a major asset to Glasurit and our customers.
The number of colourists assisting in the colour lab has doubled. Fast colour formulation turnaround once again will be a key focus of our customer service throughout 2000.
In each state we now also have designated Glasurit business managers. All of these additions mean that even though the business has expanded significantly, customer service has been able to increase in even greater proportion.

APPWhat impact has the joint venture had on the industry?

ARHigh Solids technology is now well and truly accepted in the local market. Australian bodyshops were initially sceptical of the technology and the benefits it offered. HS products are now used extensively and continue to present savings in time, throughput and materials. In fact it is now not only accepted -- it is becoming the product of choice for a growing number in the market place. Bodyshops using HS technology for the first time were also exposed to HVLP spray guns. The efficiencies gained by combining both played a major role in converting undecided customers.
The joint venture also provided a strong platform for us to release the first dedicated High Solid paint line for commercial vehicles -- 18 Line. We have only just started the sales and distribution of this line and already it is being widely accepted by progressive truck manufacturers like Mack Trucks.

APP18 Line was one of many products released in conjunction with the joint venture. How have the new products been received?

ARSince regaining control of the sales and marketing of Glasurit in Australia in 1998 we have changed the entire product range. This includes all base colours, all clears and the entire range of primers. During the joint venture we launched a number of new clearcoats, all with different properties and advantages.
The latest Glasurit clear to hit the market is the HS-UV 923-109 Clear which most of the prestige car manufacturers including BMW have approved. Its high UV protection characteristics make the clear ideal for the harsh Australian climate. We now have one of the most complete and competitive ranges of refinishing products available in the market today. We will continue to promote 18 Line and the warranty Clear HS-UV 923-109 in their respective markets until their level of recognition is as high as the rest of the product range. All of our products represent latest paint technology. Some of our competitors try to launch products which have been in the European market for more than 10 years, promoting them in Australia as the latest HS development.

APPYou hinted earlier that customer service will be the focus during 2000. How do you plan to do this?

ARNow that its product range is completely changed over, except for the water-based topcoat 90 Line which is due next year, Glasurit will concentrate on providing our customers with the right tools to increase their profitability. These 'tools' include the colour CD -- which provides fast and accurate colour retrieval using a computer, the ColorNet -- Glasurit's internet site which contains a user-friendly colour formulation facility for almost every colour available around the world, and other dedicated workshop profitability programs we are about to introduce.
Recently converted customers are familiar with the benefits of the products. However, it is now our role to demonstrate to them how those benefits can positively impact on profit.

@Cap1: Andreas Riehemann, managing director BASF Wattyl Coatings.
@Cap2: BASF Wattyl Coatings HQ in Sydney's Wetherill Park.

Australian bodyshops were initially sceptical of the High Solids technology and the benefits it offered.
Recently converted customers are familiar with the benefits of the products. However, it is now our role to demonstrate to them how those benefits can positively impact on profit.