Global Antifouling Paint

REPORT
BIOCIDES IN ANTIFOULING
PAINT
2017
Prepared by: Biocide Information Limited

Email: info@biocide-information.com
More about us on www.biocide-information.com
BIOCIDES IN ANTIFOULING PAINT – 2017
GLOBAL SUMMARY – BIOCIDES IN ANTIFOULING PAINT
Market Size 2017: Active Ingredient

$ 397 million
BIOCIDE SALES BY REGION:

Table 1: Biocide Sales by Region for Antifouling Paint
REGION SALES ($M)
AMERICAS 51.0
ASIA PACIFIC 270.0
EUROPE 76.0
BIOCIDE SALES BY LEADING ACTIVE INGREDIENT:

Table 2: Biocide Sales by Type
BIOCIDES SALES ($M)
Cuprous Oxide 287.0
Zinc Pyrithione 41.0
DCOIT 22.0
BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:

Table 3: Biocide Sales by Manufacturer
COMPANY SALES ($M)
Copper Suppliers 278.0
Lonza 24.0
DowDupont 12.0
Outlook for the future:

• The market for biocides in Antifouling Paint is expected to grow 2 % per year.
The market will grow due to biocide substitution and increased maintenance for
ships and boat throughout the globe. The leading biocide cuprous oxide will be
restricted in selected geographical regions.
Biocides to increase / decrease:

• Copper Pyrithione, DCOIT, Dichlofluanid, Dithiocarbamates, Selektope,
Tralopyril and Zinc Pyrithione will experience increased usage. Cuprous Oxide,
Cybutryne, Diuron, TBTO will experience decreased usage in Antifouling Paints.
New Copper free technology will be the main growth area.
CHAPTER 3 2 www.biocide-information.com
TABLE OF CONTENTS
1 INTRODUCTION & METHODOLGY .................................................................................5

1.1 OBJECTIVES............................................................................................................................................................5
1.2 METHODOLOGY....................................................................................................................................................5
1.3 SAMPLE QUESTIONAIRE ....................................................................................................................................5
1.4 ACCURACY OF THE INFORMATION ...............................................................................................................7
1.5 DEFINITIONS...........................................................................................................................................................7
2 END USER ANALYSIS .....................................................................................................9
2.1 TARGET MARKET .................................................................................................................................................9

2.1.1 How we estimate Biocide Demand.......................................................................................................................10
2.2 GLOBAL ANALYSIS.............................................................................................................................................11

2.2.1 Demand for Antifouling Paints by Sector.............................................................................................................11
2.2.2 Demand for Antifouling Paints by Segment .........................................................................................................12
2.2.3 Demand for Antifouling Paint by Geographical Region ......................................................................................13
2.2.4 Asia Pacific is Leading Geographical Region ......................................................................................................14
2.2.5 Suppliers of Antifouling Paints.............................................................................................................................16
2.2.6 Biocides used by Antifouling Paint Suppliers ......................................................................................................17
2.2.7 Average price for Antifouling Paint .....................................................................................................................19
3 BIOCIDE COMPARISON ................................................................................................21

3.1 APPLICATION RATES.........................................................................................................................................22
3.2 BIOCIDE PRICING ...............................................................................................................................................23

3.2.1 Biocide Pricing across Geographical Regions......................................................................................................24
3.3 BIOCIDE COSTS IN SYSTEM.............................................................................................................................25
4 BIOCIDE CONSUMPTION ..............................................................................................26
4.1 GLOBAL AND REGIONAL ANALYSIS.............................................................................................................26
4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL ........................................................................................29
5 BIOCIDE MANUFACTURERS ........................................................................................31

5.1 GLOBAL AND REGIONAL ANALYSIS.............................................................................................................31
6 DISTRIBUTION ...............................................................................................................34
6.1 OVERVIEW OF DISTRIBUTION CHANNELS ................................................................................................34
7 VALUE CHAIN ANALYSIS .............................................................................................36
8 REGULATORY ANALYSIS ............................................................................................38
9 TRENDS ..........................................................................................................................40
10 FUTURE ......................................................................................................................43
1 INTRODUCTION & METHODOLGY

1.1 OBJECTIVES
The key objectives of this study were:
1. To provide marketing data on biocides, major antifouling paint applications using

biocides, suppliers and customers.
2. To identify and analyse the trends taking place within the biocides industry.
3. To define the distribution channels in the industry.
1.2 METHODOLOGY
The report is based on over 20 interviews conducted throughout the globe. In each industry
analysis, BI contacted end-users, biocide manufacturers, suppliers, distributors and trade
associations by telephone and conducted unstructured interviews typical of the type used in
industrial market research. In addition to interviews, the report also summarises suppliers'
product literature, data from trade associations, BI databases and our monthly information
report. The following is an example of the questionnaire used.
1.3 SAMPLE QUESTIONAIRE

Good morning, My name is ________ and I am telephoning from Biocide Information. We are
carrying out a study where we are looking at the Antifoulants industry, in particular the type of
Antifouling agents that you use, trends occurring and the factors which will influence the type
of Antifoulant agents used in the future.
In this study we are talking to manufacturers of Antifoulants and the views of people such as
yourself are very important and will be of great value. As a “thank-you” for participating in the
study, we will gladly send you an overview of the Antifoulants industry when the study is
finished.
Could you help me with a few questions over the telephone. It won’t take long.
Why use Biocides as antifoulant agents ?
What % of your marine paint production is treated with an algacide / fungicide?
Which countries do you have manufacturing in for antifouling paints ?

What are the name of the most popular Biocides which you use in antifouling paints ?
Do you use combinations of Biocides agents ?.
What % of your antifouling paints use copper oxide ?.
What % of antifouling paints use Booster biocides for control of soft fouling ?
If yes, why do you use combinations of antifouling agents ?
What are the strengths and weaknesses of each active ?
Biocide Active 1 Strengths Weaknesses

Biocide Active 2
Are you looking for new Biocides in antifouling paints ?
With regard to antifouling agents, What are your unmet needs ?

How do you expect your usage of Biocides will change over the next 5 years ?
As you look to the future which Biocides do you expect to use more of or less of ?
As you look to the future, are their new Biocides which you expect to enter the market ?.
How satisfied are you with the current Biocides ?
What would make you more satisfied with your current Biocides in antifouling paint
Are their specific performance requirements for each of the segments which you sell
antifouling paint into ?
If yes, what are they ?
What changes are occurring that may affect the Biocides that you use in future ?
What changes have you made in the use of Biocides in the last few years?
ANTIFOULANT MARKET SIZES
What is the size of the market for antifouling coatings (in litres & in $ million) ?
Who are the main suppliers of Commercial Antifoulants ?

Who are the main suppliers of Leisure Antifoulants ?
ANTIFOULING REGULATORY REQUIREMENTS
What approvals are required before you can use an antifouling agent ?
In which regions of the world do you sell antifouling agents or paints containing antifouling
agents into ?
What regulatory or other approvals do you need for each region
What external organisations have an influence on antifouling agents used (prompts health &
safety organisation, customers, regulatory bodies, environmental group) ?
TESTING OF ANTIFOULING AGENTS (especially new ones)
Normally how long does it take to test, then actually start to use a new molecule ?
How do you evaluate algicide / fungicides?
What standard test methods do you use to evaluate?
How open is your company to testing new algacides / fungicides?

What kind of data would you like to see on a new algacide / fungicide in order to get excited
about testing it?
1.4 ACCURACY OF THE INFORMATION

BI believes our estimates to be within 20% of the actual value. The accuracy of the
information is dependent on many factors such as the number of interviews conducted per
application, industry concentration and industry usage patterns. In order to increase our
accuracy, BI increases the number of end-user interviews where an industry is fragmented
and continues to interview until there is similarity in responses. Also all conclusions and data
per industry were confirmed with the key manufacturers of biocides.
1.5 DEFINITIONS
Biocide manufacturers are defined as companies who manufacture biocide active ingredients
in-house. For example BASF, Cerexagri, Dalian Biochem, DowDupont, Hokko Chemical,
Janssen, Kumar for Cybutryne, Lanxess, Lonza, Thor, Zhejiang Zhongsham Chemical
(www.zschem.com) for Cybutryne, Diuron.
Biocide Blenders / Service Companies are defined as companies whose majority of sales
comes from purchasing biocides which they blend into their own products. For example Kop-
Coat etc.
Distributors act as agents for both active manufacturers and biocide blenders. They are the
most popular choice of supplier for small end-users. Distributors sell a range of industrial
additives and so will be making deliveries to end users and therefore biocides tend to be
combined with other products which allow the distributor to be competitive.
Prices are in U.S. dollars and are at active manufacturer level unless stated. The exchange
rates used are in the following table:
Table 4: Currency Conversion Rates

$ Currency
1 0.94 EUR
1 6.94 CNY
1 116.95 JPY
1 0.81 GBP
Source: www.xe.com
Volumes are reported in tonnes based on a 100% active biocide basis. In the case of
formulated products, the data is reported with a typical percentage of the formulated product.
2 END USER ANALYSIS
2.1 TARGET MARKET
Fouling occurs when algae, barnacles and other invertebrates adhere to submerged surfaces
such as boats. Fouling is classified as hard and soft. Soft fouling is the initial colonization by
algae, bacteria, fungi and seaweed. These organisms will attach to a ship hull and provide a
nutrient source for hard fouling organisms such as barnacles, mussels to attach onto and
feed. If one can minimise the amount of soft fouling, you’ll get a reduction in the amount of
hard fouling. The major impact of fouling is the increased drag on boats and more energy is
required to propel the boat. The use of antifouling agents will protect the paint film from soft
and hard fouling. The antifouling paint is comprised of two components: the binding system
and the biocide. The binding system’s purpose is to release a little biocide. The more effective
the binding system releases the biocide over time, the longer the antifouling paint will last.
Antifoulant Paints are a sector of the 700,000 tonnes Marine Paint market. An estimated 15 %
of Marine Paints are Antifouling type which requires the use of biocides to prevent the
attachment of Marine life onto the hulls and bottoms of boats and ships. The majority of
Antifouling Paints use copper biocides and approximately 70% use booster biocides. Copper
biocides are excellent against hard fouling but weak on soft fouling organisms which are
controlled via the use of booster biocides.
Copper compounds such as cuprous oxide and copper thiocyanate are applied at an average
of 40% in Antifouling Paints. Booster biocides are typically applied at 4 % of Antifouling Paint.
Examples of booster biocides include copper pyrithione, cybutryne, DCOIT, dithiocarbamates,
diuron, tolyfluanid, tralopyril and zinc pyrithione.
Biocides used in antifouling paint can be grouped into two major classes:
1. Commercial Vessels
2. Recreational boats and yachts
Asia is the largest market for Marine Paints as 75% of all ships are built there. International
Paints, part of Akzo Nobel is the leading producer of Marine Paints with a market share of
23%. International Paints is followed by Jotun, Hempel, Chugoku and PPG.
2.1.1 How we estimate Biocide Demand
Biocides are sold into all sectors of the Antifouling Coatings industry. The typical application
rates and total consumption of Biocides used within Antifouling Coatings is shown in the
following table:.
Table 5: Biocide Consumption on Antifoulant Paints

Average
Consumed Average Consumed
Component Application Rate
(Tonnes) ($/Kg) ($)
(%)
Antifouling Paint 105,000
CORE BIOCIDES *
Cuprous oxide 40 % 38,640 8.1 287 Million
BOOSTER BIOCIDES **
Booster Biocides used in 4% 2,940 38 112 Million
80% of Antifoulants
TOTAL BIOCIDES 41,580 Tonnes $ 397 M
* Core Biocides include cuprous oxide which is used in 92 % of Antifouling Paint
** Booster Biocides are used in 70 % of Antifouling Paints. They can be further divided into ‘modern
type’ which are used in 70% of antifouling coatings and includes cybutryne, DCOIT, tolyfluanid, zinc
pyrithione or ‘old type’ which are used in 30% of antifouling coatings and includes dithiocarbamates
(Zineb) and diuron.
From the production figures for Antifoulant Paints, we can estimate biocides consumption by
geographical region as follows:.
Table 6: Estimated Consumption of Biocides by Geographical Region

Antifoulant Copper Usage Booster Biocide Usage
Region Production (Volume in Tonnes) (Volume in Tonnes)
(Tonnes) (Value in $ M) (Value in $M)
Asia 73,000 26,864 ($ 195M) 2,044 ($ 71 M)
Europe 20,000 7,360 ($ 54M) 560 ($ 20 M)
America 12,000 4,416 ($ 34M) 336 ($ 12 M)
TOTAL 105,000 38,640 ($ 281M) 2,940 ($ 103M)
The Antifoulant industry in Asia produces 73,000 tonnes of Antifouling Paint and uses 26,864
tonnes of copper compounds of which the majority is Cuprous Oxide. In addition, Asia
consumes 2,044 Tonnes of booster biocides with a value of $ 71 million.
2.2 GLOBAL ANALYSIS
2.2.1 Demand for Antifouling Paints by Sector

Maintenance and repair of vessels in service is the leading application for antifouling coatings
accounting for an estimated 60,000 tonnes of Antifouling system valued at $ 1,575 million.
New ship buildings and coatings for stationary structures and other uses account for an
estimated 26,250 tonnes valued at $ 378 million as shown in the following table:.
Table 7: Estimated Demand for Antifouling Paint by End Use
Sector $ Million Tonnes $/KG

Maintenance & Repair 1,575 78,750 20
New Ship Building 378 26,250 14.4
TOTAL 1,953 105,000
As can be seen in the above table, Antifouling Coatings for the new ship building sector are
the cheapest coatings at an average $14.4 per KG whereas Antifouling Coatings for
maintenance & repair are the highest at $20 per KG. The main reason given for the difference
is due to the greater purchasing power of the new ship building sector which can negotiate
lower prices whereas the maintenance and repair sector is much more fragmented with a
lower purchasing power and therefore prices tend to be higher for this sector.
2.2.2 Demand for Antifouling Paints by Segment

The overall market for Antifouling Coatings is estimated at 105,000 Tonnes, valued at $1.953
billion in 2015. The Antifouling Coatings market is comprised of four segments;
Commercial vessels lead as a consuming segment for Marine Antifouling coatings,

accounting for an estimated 74,000 Tonnes valued at $ 1,110 million. The recreational boat
and yacht segment ranks second in volume with 15,000 Tonnes valued at $ 624 million.
Recreational boats account for a disproportionately higher share of the total value.
Naval vessels and stationary structures account for 9,000 Tonnes and 7,000 Tonnes
respectively. Stationary structures include buoys, channels markers, off-shore oil & gas
drilling platforms and minor end-uses such as finishing net paints. The overall market for
Marine Antifouling systems is presented in the following table:.
Table 8: Demand for antifouling coatings by market segment in $ Millions and Tonnes
AAG 2015-2020
Segment $M Tonnes $/KG
%
Commercial vessels 1,110 74,000 15 2%
Recreational boats and
624 15,000 41.6 3
yachts
Naval vessels 135 9,000 15 1
Stationary and other 84 7,000 12 2

TOTAL
1,953 105,000 2.0%
As can be seen in the above table, Antifouling Coatings for the recreational sector are the
most expensive coatings at an average $ 41.6 per KG whereas Antifouling Coatings for
stationary structures are the lowest at $12 per KG.
For 2017 the market is expected to grow at 2 %. Antifouling Coatings demand growth will be
led by recreational boats/yachts sector which are expected to increase at rates of 3%, through
the 2017 to 2022 time frame.
2.2.3 Demand for Antifouling Paint by Geographical Region
Asia is the largest market for Marine Paints as 70% of all ships are built in Japan, Singapore,
South Korea and China. Asia also leads as a demand region for the application of Antifouling
Coatings for ship maintenance and repair. The Middle East is also an important market for oil
tankers.
Europe is the number two consumer of Antifouling Coatings at 20,000 Tonnes consumed,
followed by America at 12,000 Tonnes as illustrated in the following table:.
Table 9: Estimated Demand for Antifouling Coatings by Geographical Region

ASIA EUROPE AMERICA TOTAL
Sector
(Tonnes) (Tonnes) (Tonnes)
Maintenance & Repair 52,000 16,000 10,000 78,000
New Ship Building 21,000 4,000 2,000 27,000
TOTAL 73,000 20,000 12,000 105,000
The increased global trade and higher freight has resulted in a lot of new ship building
particularly in Asia. In addition, the European market has also seen good growth in recent
years as the Asian shipyards are at full capacity and work has moved back to the shipyards of
Croatia, Germany, Poland, Turkey and the UK.
2.2.4 Asia Pacific is Leading Geographical Region

Japan adopted the IMO treaty in July 2003. This treaty bans the use of harmful organtoins
which act as biocides in paint products. In Japan, the antifouling systems are regulated by
The Japan paint manufacturers association (JPMA). The aim of the JPMA self regulatory
programme is to provide IMO convention compliance information and they have issued on
their website a list of registered paint products with and without biocides.
The following reviews the status of the antifouling industry in Japan based on the JPMA list of
registered paints products.
Table 10: Summary of Antifoulant Paints listed by JPMA
Type of Antifouling Paint Registered in Japan Number
Organotin free self polishing type 155
Organotin free self polishing hydrolysis type 85
Organotin free ablative 60
Organotin free self polishing hydration type 30
Organotin free conventional type 24
Biocide free silicon type 16
TBT free self polishing type 4
Foul release coating 2
Conventional antifouling 1
Hybrid TBT free self-polishing 1
TBT free controlled deletion polymer 1
TBT free soluble matrix 1
TOTAL NUMBER OF REGISTERED PRODUCTS 380
Of the 380 antifouling paints registered by the JWPA, 95.8 % or 364 antifouling paints contain
biocides.
Sixteen biocides are registered in 364 products. Single biocides are used in 60 products, as
two mixtures in 200 products, as three mixtures in 80 products and four mixtures in 19
products. Five biocides such as cuprous oxide, triphenylborane-pyridine, Sea-Nine 211,
copper thiocyanate and chlorothalonil are used as a single product. Combinations such as
cuprous oxide and copper pyrithione, zinc pyrithione and triphenylborane-pyridine, cuprous
oxide and diuron, and cuprous oxide and zinc pyrithione are mainly used in two biocide
systems to produce synergistic effects.
2.2.5 Suppliers of Antifouling Paints

Akzo is the global leading supplier of Antifouling Paint with a 23% share of the market. The
company is estimated to supply a total of 24,000 Tonnes of Antifouling Coatings.
Jotun ranks second with an estimated 12% share for Antifouling Paint. Hempel’s Marine
Paints and Chugoku have joint third place, with an estimated 12% each as shown in the
following table:.
Table 11: Estimated Sales of Antifouling Paints by Manufacturer
SUPPLIER ‘000 Tonnes PERCENT OF TOTAL
Akzo 24,000 23 %
Jotun 13,000 12 %
Hempel 12,000 12 %
Chugoku 12,000 12 %
PPG (Ameron, Sigma) 10,000 10 %
Others 34,000 31 %
TOTAL VOLUME 105,000 100%
Others include manufacturers of paints for recreational boats and yachts, naval vessels,
stationary structures and miscellaneous uses. They tend to be small on a global basis but
significant in their own geographical markets. This would include companies such as Altex
(New Zealand), Boero (Italy), Colorificio Baseggio (Italy), Epaint (USA), Jenson & Nicholson
(India), Kansai (Japan), KCC (Korea), Monopol (France), Nippon (Japan), RPM (USA),
Shalimar (India), WM Leigh (owned by Sherwin Williams).
2.2.6 Biocides used by Antifouling Paint Suppliers

The following table illustrates the biocides used in popular antifouling paints.
Table 12: Biocides used in popular Antifouling Paints

Product Name Biocide Actives
Chugoku’s Sea grand prix 500 paint Cuprous oxide, zinc pyrithione
Also use DCOIT and Diuron in combination
with cuprous oxide, Cuprous Thiocyanate &
DCOIT
Chugoku New Marine Gold DX White Pyridine-triphenylborane
Chugoku New Marine Gold DX Coloured Zinc Pyrithione, DCOIT, Pyridine-
triphenylborane
Chugoku New Marine Gold DX Alpha Econea, zinc pyrithione
EPaint DCOIT
Hempel Glide Speed and Glide Cruise Paint Copper oxide, zinc oxide, cybutryne
Hempel copper free self polishing antifouling Paint zinc oxide, zinc pyrithione
Hempel Also uses Tolyfluanid for Yacht Paints and
SeaNine for Commercial antifoulants
Hempel Antifouling Oceanic Range Dithiocarbamate, cuprous oxide, cybutryne
International Csc plus – blue paint, also International Cuprous oxide, cybutryne
Fiberglass bottomkote antifouling paint 779 paint
International Smooth 365 ecoloflex spc antifouling Cupprous oxide, zinc pyrithione
bea 363 paint
International bra740-red antifouling paint Cuprous oxide, dichloro-octyl-isothiazolone
International Pacifica Plus 3.9 % Econea (Tralopyril), 4.12 % Zinc
Pyrithione
International Interspeed Dithiocarbamates, Copper Oxide
Ishikawa Paint Company CleanCoat Cuprous Oxide, Chlorothalonil, Diuron
Ishikawa Paint Company Tin Free CleanCoat Chlorothalonil, Diuron
Ishikawa Paint Company Newsearon series * Cuprous oxide, Zinc Pyrithione
Jotun SeaForce Zineb, cuprous oxide
Jotun SeaQuantum Ultra Paint Zinc pyrithione, cuprous oxide

Jotun SeaQueen Copper pyrithione, cuprous oxide
Jotun Takata Quantum Classic Copper pyrithione, cuprous oxide
Kanae Paint Port A/F Clean Cuprous oxide, Copper Pyrithione
Kanae Paint SeaHawk Zinc Pyrithione, Dithiocarbamate, Irgarol 1051,
Pyridine-triphenylborane
KI Chemical Umikaze EX Cuprous Oxide, Copper Pyrithione, N-(2,4,6-
Trichlorophenyl) maleimide
Kobe Paint KP Ace Cuprous Oxide, DCOIT
Kobe Paint Ocean Premier 200 Cuprous Oxide, Copper Pyrithione, Irgarol
Kobe Paint Super A/F 2000 Cuprous Oxide, Copper Pyrithione, DCOIT
Pettit (RPM) Vivid Caribe Paint Cuprous Thiocyanate, Zinc Pyrithione
Nippon Paint A-LFC Cuprous Oxide, Copper Pyrithione

Nippon Paint Bioflex 800 Cuprous Oxide, Dithiocarbamate
Nippon Paint Ecoflex FRP Cuprous Oxide, Irgarol 1051, Zinc Pyrithione
NKM Coatings AF Sea Chest Cuprous Oxide, Copper Pyrithione
NKM Coatings SeaForce 30 Cuprous Oxide, Dithiocarbamates
NKM Coatings Super Dolphin Cuprous Oxide, Tolysulfamid
Pettit (RPM) Trinidad Pro Paint cuprous oxide, Irgarol
Pettit (RPM) Ultima Pro Paint cuprous oxide, Irgarol
Pettit Ultima Eco 6 % Econea, 4.8 % Zinc Pyrithione
PPG Crown Super 243 Cuprous oxide, DCOIT, Diuron
PPG Sigma Taikai Cuprous oxide, chlorothalonil, Diuron
PPG Sigma’s sigmaplane ecol ha antifouling Cuprous oxide, dichloro-octyl-isothiazolone.
redbrown 5294 paint Also uses zineb in other formulations
Sea Hawk Smart Solutions 2.9 % Econea
Tohpe SeaGull Alpha Cuprous Oxide, Zinc Pyrithione
Wako Eco Paint ECO AF-E Cuprous Oxide, DCOIT
Wako Eco Paint 2000-03 Cuprous oxide, dichloro-octyl-isothiazolone,
Diuron
* Most popular antifouling paint sold
PPG introduced a range of copper-free antifoulings for commercial vessels in December 2013
under the tradename of SIGMA NEXEON 710 (based on 4-Bromo-2-(4-chlorophenyl)-5-
(trifluoromethyl)-1H-Pyrrole-3-carbonitrile and zinc-2-pyridinethiol-1-oxide). For new-builds
where outfitting takes longer than six months, SIGMA NEXEON 750 (same biocides as in
Nexeon 710) high-activity copper-free topcoat antifouling is specified.
2.2.7 Average price for Antifouling Paint
The price for Antifouling coatings varies widely for each major market segment. In the case of
new ship buildings, the ship or boat manufacturer incurs the cost of the coating and includes it
in the price of the vessel. Antifouling paint for new boat building applications is $ 15 per KG
which is 12% less than for maintenance & repair applications. The main reason for the
difference in price is due to the superior purchasing power of the larger ship builders.
The lowest prices are coatings for stationary structures which would have an average price of
about $12 per KG. Coatings for the recreational boat and yacht market are highest valued
with an average price of $41 per KG, as shown in the following table:.
Table 13: Average Prices for Antifouling Paints at Retail Level
Segment Average price per KG
New ship building 15
Repair and maintenance 17
Stationary structures 12
Recreational boats and yachts 41.6
Retail prices for antifouling coatings within the recreational boat/yacht segment are at least
40% higher than the prices quoted for the commercial sector. One possible reason for this is
that antifoulant paints for the commercial sector tend to be sold in higher pack sizes such as 5
gallon drums. In addition, the price of all antifouling coatings at end user level is influenced by
the type of coating (leaching or ablative), technology used and longevity (single or multi-
season). The following table illustrates the wide variation in prices quoted for antifouling
paints at end user level (Prices is Litre which is 1.8 times the KG price).
Table 14: Range in Antifouling Paint Prices from Survey

Pack Size Retail Price
Product Name
(litre) ($/litre)
Copper Shield 45 Royal Blue Paint 4.5 $119.95 (27)
Copper Shield 45 Royal Blue Paint 1.12 $29.99 (27)
Copper Shield 45 for Commercial Boats 22.5 $324 (14)
Copper Pro Ablative with SCX 67 22.5 $549.75 (24)

International Cruiser Uno Antifouling Paint 2.5 $83.79 (33)
International Interspeed Ultra Antifouling Paint 2.5 $111.33 (44)
International Micron Extra Antifouling Paint 2.5 $107.74 (43)
International Micron Optima Antifouling Paint 2 $125.69 (63)
Interlux Ultra 4.5 $249 (55)
Pettit Trinidad SR 4.5 $249 (55)
Blakes Broads Freshwater Paint 2.5 $94 (38)
Blakes Cruising Performer 2.5 Paint 2.5 $100.99 (40)
PCA Gold Antifouling Paint with Irgarol, Black Paint 1.12 $129.98 (116)
3 BIOCIDE COMPARISON
The following table compares the prices of commonly used biocides in Antifouling Paint.
Table 15: Comparison of Biocides used in Antifouling Paints

% AI in Formulated Price
Chemistry Trade name Supplier
formulation $/kg
Cuprous Oxide Red Copp Chemet 8
95%
N’-(3,4-dichlorophenyl)- Diuron Many 6
96%
N,N-dimethyl urea suppliers
2-chloro-4,6- Irgarol 1051 BASF
35
bis(ethylamino)-s- 96%
triazine
Dichlofluanid Preventol Lanxess
N- A4-S
40
dichlorofluoromethylthio- 90%
N’,N’-dimethyl-N-
phenylsulphamide
Tolylfluanid Preventol Lanxess
N- A5-S
40
dichlorofluoromethylthio- 96%
N’,N’-dimethyl-N-p-toly-
sulphamide
* 4,5-Dichloro-2-n-octyl- Sea-Nine DOWDupont 16
30%
4-isothiazolin-3-one 211
Zinc Pyrithione Zinc Lonza
40
Omadine 95%
Copper Pyrithione Copper Lonza

40
Omadine 95%
Triphenylborane PK Hokko
10% 40
Pyridine (TPBP or PK) Chemical
TET Sanshin 99% 6
Tralopyril Econea Janssen 99 % 80
* All Biocides in the Antifoulant industry are supplied as technical material except Sea Nine
which is supplied as a formulation
3.1 APPLICATION RATES
Biocides are added as early in the production cycle as is practical. Good dispersion is again
of prime importance, so they are often incorporated into the pigment dispersion or grind step.
The application rate depends on the type of paint, the activity of the biocide, the
environmental conditions to which the dry film will be exposed and the desired properties of
the antifouling paint. Typical dosage rates are in the range of 2% to 50%. The high rates are
due to the fact that antifoulants must perform under severe conditions. For example, a five
year antifouling system will use 50 % copper and 5 % active ingredient whereas a 2 year
system such as a coastel vessel will use half the application rates. The following table
illustrates the application rates for biocides.
Table 16: Comparison of Application Rates for Antifouling Agents

Antifoulant agent Application Rate in %
Cuprous Oxide 20 % to 50 %
Booster Biocides such as Cybutryne, DCOIT,
Dichlofluanid, Diuron, Tralopyril, Zinc / 1.0 % to 8.0 %
Copper Pyrithione, Zinc Pyrithione
I-Tech’s biocide Selektope® (a.i.)
< 1 % (0.1 % to be precise)
Medetomidine)
3.2 BIOCIDE PRICING

The prices of biocides are governed by;
1) Geographical Region
2) Quantities purchased
3) Regulatory approval which can be further segmented into commercial and recreational
Antifouling Paints
4) Formulation of Biocide
5) Technical Support
Regulatory approval and quantities purchased are the most important factors in determining
Biocide pricing. If we take zinc pyrithione as an example, there is a 100% difference in the
price between a non regulatory approved Zinc Pyrithione active ingredient and a regulatory
approved Zinc Pyrithione formulation.
3.2.1 Biocide Pricing across Geographical Regions
As discussed in the previous page, the price of Biocides are determined by many factors and
may explain the wide variation in pricing which was observed in the field. The following table
compares prices observed in the field for the main biocides used within the Antifouling
industry for each of the main geographical regions.
Table 17: Comparison of Prices by Geographical Region in $/kg (% AI in brackets)

Chemistry AMERICAS ASIA PACIFIC * EUROPE
15 (30%) in China
DCOIT 20 (30%) and 21 (30%) in 20 (30%)
Japan
6 (98%) in China,
Copper Oxide 7 (97%) 7 (98%)
7 (98%) in Japan
Cybutryne 28 (96%) 24 (96%) in China 35 (96%)
30 in China, 50 (95%)
Copper Pyrithione 50 (99 %)
in Japan
Copper Thiocyanate 8 (99 %) 10 (99%)
Dichlofluanid 20 (99 %) 30 (99%)
Diuron 4 (97%) in China 6 (95%)
Organotins 18 (98%) in China
Triphenylborane
30 (10% ) in Japan
Pyridine (TPBP or PK)
Triethyltin (TET) 8 (99%) in Japan
29 (99%) in China,
Zinc Pyrithione 40 (99%) 38 (99%)
30 (97%) in India
* The average price in Asia is significantly lower than the Americas and Europe as it is a deregulated
market. For some Biocides, the Asian market is 50% lower.
3.3 BIOCIDE COSTS IN SYSTEM
The costs of treating Antifouling Paints with an Antifoulant agent can be up to $ 4,400 (using
40% cuprous oxide and 3% zinc pyrithione) per tonne of Antifouling Paint. As a result, the
addition of Antifoulant can have a significant effect on the raw material costs of the Antifouling
Paint. The following table compares the cost of treating Antifouling Paints with different
biocides.
Table 18: Cost of treating Antifouling Paints with a Biocide

BIOCIDES AS A PERCENTAGE OF PAINT RAW MATERIALS COSTS
Cost of Biocide Percentage
Sales
Dosage Rate per Tonne of of Selling
Biocide Price
(%) Antifouling Paint Price
($/Kg)
($) (%)
CORE BIOCIDES
Cuprous oxide 7 40 2,800 20
Econea 80 5 4,000 25
BOOSTER BIOCIDES
Cybutryne (96 % ai) 35 2.5 875 5
Diuron (96 % ai) 6 4.0 240 1.5
DCOIT (30 % ai) 16 4.0 640 4
Zinc Pyrithione (95 %) 40 4.0 1,600 10
CORE & BOOSTER BIOCIDES
Cuprous oxide and 7 40
4,400 27
zinc pyrithione 40 4
If we take the average price of Antifouling Paint at manufacture level to be $ 16,000 per
tonne, the cost of using Biocides can be a significant component with respect to the selling
price for Antifoulant Paint with the most popular combination (cuprous oxide and zinc
pyrithione) accounting for 27 % of the selling price of Antifouling Paints.
4 BIOCIDE CONSUMPTION
4.1 GLOBAL AND REGIONAL ANALYSIS

The market for Biocides used in the global Antifouling Paints market was estimated at $ 384
million. Asia Pacific is the leading user of Biocides with sales of $ 270 million. The leading
biocide consumed is Cuprous Oxide with sales of $ 287 million. The following table shows
sales by major active ingredients used in Antifouling Paints.
Table 19: Biocide Sales by Type within Antifouling Paints

AMERICAS ASIA PACIFIC EUROPE GLOBAL
BIOCIDE
($M) ($M) ($M) ($M)
Cuprous Oxide 35 200 52 287
Cybutryne 1 4 1 6
DCOIT 4 12 6 22
Dichlofluanid/Tolyfluanid 4 1 5
Dithiocarbamates 1 3 2 6.0
Diuron 1 6 2 9.0
Organotins (e.g. TBTO,
5 5.0
Triethyltin)
Triphenylborane
4 4.0
pyridine
Zinc Pyrithione 7 26 8 41.0
Other 2 10 4 16
TOTAL 51 270 76 397
*Other includes Chlorothalonil, Tralopyril (Econea)
Cuprous Oxide and cuprous thiocyanate are the leading biocide consumed with sales of $
287 million within the global Antifouling Paints industry. Cuprous oxide is very effective
against sessile sea animals like barnacles, tubeworms and serpulids, but some of the
common marine macroalgae such as Amphora species and Enteromorpha species are
tolerant towards copper and the copper must be “boosted” by the presence of one or more
organic biocides.
Cuprous oxide is particularly effective against hard fouling organisms. Cuprous oxide is used
in non white paints because it is red in color and taints the white color.
In white color paints, cuprous thiocyanate is used as it does not cause tainting. As a result,
traditionally light or bright coloured antifouling paints for pleasure craft have been formulated
using cuprous thiocyanate instead of cuprous oxide. In addition, aluminium ship and boat
hulls are susceptible to galvanic corrosion in presence of cuprous oxide and this can be
minimised by using cuprous thiocyanate.
Typically copper based biocides are used in conjunction with a booster biocide such as
cybutryne, dcoit, dichlofluanid, diuron, tralopyril and zinc pyrithione which are more effective
against soft fouling. A typical high performance antifouling paint will contain 40% Cuprous
Oxide and an average of 4% booster biocide. For lower performance antifouling paints such
as the one used for coastal vessels, the application rates for Biocides can be halved. Cuprous
oxide and copper thiocyanate are manufactured by a broad range of companies such as
American Chemet, Bardyke, Furukawa, Jaan Furukawakk, NC Tech, Nord deutsche Affinerie,
Nordox, Spiess-Urania Taixing Smelting and Wolstenholme etc.
Copper & Zinc Pyrithione has sales of $ 41 million and are primarily used with copper in
antifoulant paint. Copper and Zinc Pyrithione is growing in usage due to: (1) Good efficacy (2)
Excellent environmental profile (3) suitable for usage in commercial and recreational
antifouling paints. Zinc pyrithione is manufactured by Lonza, Janssen and API. The future for
copper and zinc pyrithione as a biocide in antifouling paints is good as they show a lower
environmental persistence compared to some of the other biocides.
4,5-Dichloro-2-(n-octyl)-4-isothiazolinone-3-one (DCOIT) is a popular booster biocide used

within the commercial sector of the Antifoulant Paint industry with sales of $ 22 million. DCOIT
is manufactured by DowDupont and sold to the Marine Antifoulant Paints sector under the
tradename of SeaNine. The future for DCOIT as a biocide in Antifouling Paints is good as it
shows a lower environmental persistence compared to some of the other biocides.
Ethylene(bis)dithiocarbamate is sold under the tradename of Zineb with sales of $ 7 million
within the global Antifouling Paints industry. The product is a broad-spectrum algicide, which
is stable to sunlight, nonmetallic and has a favourable tox profile. Zineb is manufactured by
Agria which is based in Bulgaria, United Phosphorus (Cerexagri) and a number of smaller
Asian manufacturers. The biocide is popular in Asia, Eastern Europe and South America.
Cybutryne (2-chloro-4,6-bis (ethylamino)-s-triazine) has sales of $ 6 million as a biocide

within Antifouling Paints. Traditionally cybutryne was mainly used in leisure antifouling paints
but now it is being targeted at the commercial sector. The product is a broad-spectrum
algicide, which is stable to sunlight, and nonmetallic. Cybutryne is manufactured by BASF and
sold under the tradename of Irgarol 1051 for Marine Paints. Irgarol is sold as a 96% active
ingredient white crystalline powder.
N’-(3,4-dichlorophenyl)-N,N-dimethyl urea is sold as Diuron with sales of $ 9 million within

the global Antifouling Paints industry. Diuron is a broad spectrum algicide which is highly
effective against both seawater and freshwater algae. Diuron is normally sold as part of a
blend with cuprous oxide. Diuron is mainly used in Asia, Eastern Europe and South America.
The future of Diuron is uncertain as it not strongly biodegradable in seawater and has been
detected in waters and sediments from marinas. This may be due to its widespread usage in
agrochemicals which is being reduced due to increased environmental concerns. As a result,

its usage in Antifouling Paint may not be affected.
Dichlofluanid (N-dichlorofluoromethylthio-N,N-dimethyl-N-phenyl-sulphamide) and

Tolyfluanid (N,N-dimethyl-N-tolyl-N-dichlorofluoromethylthio)-sulphamide) are sold under
the tradename of Preventol A4S and Preventol A5 with sales of $ 5.0 million within the global
antifouling Paints industry. Both products are used successfully within the leisure boat sector
of antifouling paints. They are used in combination with copper for leisure antifouling coatings
and small commercial vessels. The main benefits of dichlofluanid and tolyfluanid are that they
break down very fast. Both fungicides are manufactured and marketed by Lanxess and sold
as a 96% powder. The future for dichlofluanid and tolyfluanid are good as antifouling agents
as they show much lower environmental persistence compared to some of the other biocides.
Organotins has sales of $ 5.0 million in Antifouling Paints. Traditionally Organotins were the
most popular biocide used in Antifouling paints and the benchmark against which other
antifoulants were measured. Organotins include a number of biocides including TBTO
(bis(tributyltin) oxide) and TET (triethyltin). They are facing increased regulatory pressure and
are banned from use on ship hull coatings within all countries participating within the IMO.
Organotins are only used in Asia with the main supplies being Hongding Chemical and
Shandong Zhaoyuan fro TBTO and Sanshin and Ouchishinko for TET.
Tralopyril (2-(p-chlorophenyl)-3-cyano-bromo-5-trifluoromethyl pyrrole) is sold under the
tradename of econea. It is a metal free antifouling agent which can be used alone or be
combined with other biocides to reduce the copper level or enhance the antifouling
performance. Econea is effective at controlling a wide range of invertebrate fouling organisms
and should be used with an algaecide for complete antifouling protection. In copper free
systems, it is used at 4% to 6% weight on wet paint to give a performance similar to cuprous
oxide. Currently Econea has been introduced by Pettit, PPG, Interlux Pacifica Plus, Sea Hawk
Smart and West Marine. Janssen is the producer of Econea and will have worldwide
registration coverage for Econea in all markets.
PK or TPBP (Triphenylborane pyridine) has sales of $ 4 million and used solely in Asia as
it has no regulatory support elsewhere. PK is the leading copper free antifouling biocide in
Japan and Korea. It also has the added benefit in that it does not cause discolouration.
2,4,56-Tetrachloroisophthalonitrile or chlorothalonil has sales of $ 2 million and used by

Ishikawa paint along with diuron and cuprous oxide. Chlorothalonil is used by a small number
of Antifouling Paint manufacturers where it must be combined with other biocides.
Chlorothalonil is also limited to light coloured antifouling paints. The leading manufacturer is
Lanxess followed by Sostram, Caffaro and Makhteshim.
4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL
The global market for Biocides in Antifouling Paints at the end user level was estimated at $
491.12 million or 24% more than the value of the sales at the active level. The value added is
quite low in comparison to other applications of the Biocides industry and this can be
explained by the large percentage of copper based biocides and technical grade biocides
which are shipped directly from the manufacturers to antifouling manufacturers with a smaller
percentage of value added. The following table illustrates the mark ups at the different stages
of the supply chain.
Table 20: Consumption of Biocides within Antifouling Paints at Manufacturer and End User level
SALES OF BIOCIDES AT MANUFACTURE AND END USER LEVEL IN THE
ANTIFOULING PAINTS INDUSTRY IN $ M
Sales at Distribution % Mark-Up * Sales at end-
manufacture route to end- user level
level ($M) user in % ($M)
Active
397 22 60 140
Manufacturer
Biocide Formulator 5 80 36
Cuprous Oxide
73 20 348
Manufacturer
TOTAL 397 100 491
* includes mark-up for distributors
Cuprous oxide manufacturers have the highest percentage of sales at end-user level with $
339 million to the Antifouling Paint industry. Cuprous oxide is supplied via specialist copper
manufacturers such as formulators like American Chemet, Bardyke, Furukawa, Jaan
Furukawakk, NC Tech, Nord deutsche Affinerie, Nordox, Spiess-Urania Taixing Smelting and
Wolstenholme.
22% of Biocides are supplied via biocide active manufacturers such as DowDupont, Hokko
Chemical, Janssen, Lanxess and Lonza. The Biocide manufacturers supply technical material
or incorporate their own biocides into specialist formulations for Antifouling Paints and this
formulation is sold to leading Antifouling Paint manufacturers. The active ingredient
manufacturers expect to receive 60 % value added when they supply formulated biocides to
Antifouling Paint manufacturers.
5% of formulated biocides are supplied via specialist Formulators such as Kop-Coat who
purchase active ingredients from biocide manufacturers and expect to receive up to 80%
value added when they supply formulated biocides to Antifouling Paint manufacturers.
The mark-ups indicated above will include the mark-up for distributors who can expect to
receive up to 20% (10 % for Cuprous Oxide) value added when they supply Biocides to
Antifouling Paint manufacturers. Distributors tend to supply to smaller Antifouling Paint
manufacturers.
5 BIOCIDE MANUFACTURERS
5.1 GLOBAL AND REGIONAL ANALYSIS

The leading biocide manufacturers to the Marine Paint industry are the copper producers and
the booster biocide producers such as Lonza with copper and zinc pyrithione, BASF with
cybutryne, DowDupont with DCOIT, Lanxess with dichlofluanid and diuron, and United
Phosphorus with Dithiocarbamates.
The following table shows sales of biocides at active manufacturer level for the antifouling
paint industry at regional and global levels.
Table 21: Sales of Biocides at Manufacturer Level to the Antifouling Paint Industry in $ Million
AMERICAS ASIA PACIFIC EUROPE GLOBAL
MANUFACTURER SALES SALES SALES SALES
($M) ($M) ($M) ($M)
API 5.0 5.0
BASF 1.0 1.0 1.0 3.0
Biochem 3.0 3.0
Cuprous Oxide
32.0 194 52 278.0
Suppliers
DowDupont 3.0 5.0 4.0 12.0
Hokko Chemical 4.0 4.0
Janssen 3.0 3.0 4.0 10.0
Lanxess 1.0 1.0 1.0 3.0
Lonza 6.0 11.0 7.0 24.0
Ruihao 2.0 2.0
United Phosphorous 1.0 1.0 2.0
Zhongshan 3.0 3.0
Other 5.0 37.0 6.0 48.0
TOTAL 51.0 270.0 76.0 397.0
Cuprous oxide manufacturers are the leading manufacturers of biocides to the Antifouling
industry with combined sales of $ 278 million at active manufacture level. The leading
cuprous oxide manufacturers are American Chemet, Bardyke, Furukawa, Jaan Furukawakk,
NC Tech, Nord Deutsche Affinerie, Nordox, Spiess-Urania Taixing Smelting and
Wolstenholme. The leading manufacturer of booster biocides is Lonza with sales of $ 22
million. The company supplies directly and also via distributors.
API is headquartered in Japan and is a leading manufacturer of zinc pyrithione within Asia
Pacific. The company had sales of $ 5 million to the Antifouling industry.
BASF is based in Germany and has biocide sales to the Antifouling Paints industry of $ 3
million. BASF manufactures the algicide cybutryne which is sold under the tradename of
Irgarol. It was traditionally used in yacht paints but now is being targeted at commercial
paints.
Dalian Biochem is a Chinese manufacturer of isothiazolinones with sales of $ 3 million. The

company supplies DCOIT to the antifouling industry.
DowDupont is the second leading manufacturer of booster biocides to the Antifouling

industry with sales of $ 12 million. Dow manufactures 4,5-Dichloro-2-n-octyl-4-isothiazolin-3-
one (DCOIT) which is sold under the tradename of Sea-Nine. DowDupont is gaining sales in
the antifoulant sector due to the decline of tin based biocides. The company has
manufacturing and formulation capabilities across the globe.
Hokko Chemical has sales of $ 4 million with triphenylborane pyridine (TPBP) for the
Antifouling industry. The company has been actively engaged in agrochemicals business in
the Japanese market as a leading manufacturer/distributor. For Biocides, Hokko has
established success with triphenylborane pyridine (TPBP) which is the preferred choice of
copper free antifouling. They have established good success in Japan and Korea where it is
sold as PK and is the preferred choice of copper free antifouling in Korea. Another benefit is
that it does not cause discolouration. In addition it is used for fishnets.
Janssen has sales of $ 10 million to the antifouling industry. The company acquired the
sodium and zinc pyrithione line from Weyl in 2007. In 2009, Janssen introduced Econea
(tralopyril) as a new broad spectrum antifouling agent with a performance similar to cuprous
oxide and superior to cuprous thiocyanate. Econea can be used alone or combined with
cuprous oxide, cuprous thiocyanate and all major organic antifouling biocides which will either
reduce the copper level or enhance the antifouling performance. The product is metal free
and has favourable toxicological and ecological properties as it breaks down rapidly. Econea
will benefit from the reduction in copper usage due to legislation.
Lanxess biocide business is located at Leverkusen, Germany and is one of the leading
suppliers of booster biocides to the leisure sector of the antifouling paint industry with sales of
$ 3 million. Lanxess product line centres on its Preventol trade name which covers three
actives for antifouling paints;
1) Preventol A4S (N-dichlorofluoromethylthio-N,N-dimethyl-N-phenyl-sulphamide)
2) Preventol A5 (N,N-dimethyl-N-toly-N-dichlorofluoromethylthio-sulphamide)
3) Preventol N’-(3,4-dichlorophenyl)-N,N-dimethyl urea
Lonza is the leading manufacturer of booster biocides with sales of $ 24 million. Lonza
manufactures Copper Pyrithione and Zinc Pyrithione which are used in the antifouling
industry. The company is very proactive in the antifouling industry with significant technical
and regulatory resources.
United Phosphorus is a manufacturer of generic agrochemicals who acquired Cerexagri

(formerly Atochem). Cerexagri is a supplier of dithiocarbamates to the Antifouling industry
with sales of $ 2 million.
Zhejiang Zhongshan Chemical is a Chinese manufacturer of generic agrochemicals of
which some are also used as Biocides company. The company has three plants producing
Azoxystrobin, Carbendazim, Chlorothalonil, Cybutryne, Cyproconazole, Deltamethrin, Diuron,
Imidacloprid, Permethrin, Propiconazole, Tebuconazole, Terbutryn and Thiabendazole.
Zhejiang Zhongsham Chemical has estimated sales of $ 3 million to the Antifoulants industry.
More information at www.zschem.com.
The 'Other Suppliers' segment consists of many companies within this sector including small
generic suppliers who supply a narrow range of biocides Sanshin Chemical
(dithiocarbamates), Ouchi Shinko Chemical (dithiocarbamates) etc.
6 DISTRIBUTION
6.1 OVERVIEW OF DISTRIBUTION CHANNELS
Suppliers of biocides to the antifoulant paint industry can be classified into:
• Active Ingredient Suppliers
• Formulators
• Distributors
The following table shows how biocides are distributed to Antifoulant Paint Producers.
DISTRIBUTION OF BIOCIDES
Active Ingredient
Manufacturer
(1)
Biocide Formulator Distributor
(3) (2)
END- USER Antifouling Paint Manufacturer
Route 1 - 75 % of total sales

Figure 1: Distribution Channels for Biocides in Antifouling
As can be seen in the above chart, Active manufacturers are the most important route in the
distribution of Biocides to Antifoulant Paint manufacturers with a combined 75% of all
Biocides going to Antifoulant paint manufacturers via this route. The main active ingredient
manufacturers supplying directly include BASF, Chemet, DowDupont, Janssen, Lonza and
Spiess Urania.
Distributors are responsible for distributing 20% of all biocides to the antifouling industry in
America. Distributors are an important route for small antifoulant paint producers who
purchase biocides in small amounts.
Formulators account for 5% of all sales to antifouling manufacturers. The leading formulator in
America is Kop-Coat. The leading formulations sold by Kop-Coat are shown in the following
table:.
Table 22: Formulations sold by Kop-Coat

Product Name Formulation Application
Petit marine paint sr-21 fresh 2.0% Cybutryne Antifouling Coatings
water antifouling
Petit marine paint trinidad sr 70.0% Copper oxide, 2.0% Antifouling Coatings
antifouling Cybutryne
Petit marine paint ultima sr 60.0% Copper oxide, 2.0% Antifouling Coatings
biocide antifouling Cybutryne
7 VALUE CHAIN ANALYSIS
The following value chain illustrates the value added achieved for booster biocides used
within Antifouling Paints excluding Copper.
VALUE ADDED ANALYSIS – BIOCIDES

Active Manufacturer
Value Added 20 %
Booster Biocides Formulator

Value Added 40 % Value Added 60 %
Distributor
Value Added 10 %
ANTIFOULING PAINT MANUFACTURER
Value Added is selling price less cost price as a %
Figure 2: Value Added Analysis for Biocides in Antifouling
As can be seen in Figure 2 value added is 40 % for booster biocide manufacturers who
provide active ingredients with regulatory approval. Biocide manufacturers who supply
formulations such as SeaNine direct to Antifouling Paint producers, would expect to receive
total mark-ups in excess of 60% whereas the more commodity booster biocides would receive
less than 60 %.
Cuprous oxide manufacturers expect to receive average mark-ups of 20% when they supply
technical grade biocides to biocide distributors, biocide Formulators and Antifouling paint
manufacturers.
Biocide Formulators expect to receive mark-ups of 80% when they supply biocides to
Antifouling Paint manufacturers. The mark-ups are higher in comparison to manufacturers
own mark-ups and this reflects their customer base who tends to be small Antifoulant Paint
manufacturers and so will not be purchasing in truck load quantities.
Biocide Distributors receive a value added mark-up of 10% when they supply biocides to
Antifouling Paint manufacturer.
8 REGULATORY ANALYSIS
Regulations have a major impact on the biocides used in the Antifouling Paint industry. In
most developed countries, all the chemical components of an antifouling paint must be listed
on the relevant national “inventory” of chemical substances before it can be supplied. In
addition, the usage of biocides in antifouling applications is subject to additional legislation
such as the United Nations International Maritime Organisation which requires a specific
product registration. The use of biocides may also be governed by other directives such as
clean water directives as boat yards are regularly monitored.
The use of TBT which was previously the dominant biocide, was banned in September 2008
as a result of the ratification of the United Nations International Maritime Organization (IMO)
TBT convention (The International Convention on the Control of Harmful Antifouling Systems
on Ships) due to its persistence in seawater. When the treaty is ratified, it becomes
immediately effective. This means that on that date all ships with Organotin compounds on
the hull will be banned from waters of the ratifying countries. Currently 25 countries with 25
percent of the world’s tonnage have ratified it.
In Europe, The Biocidal Products Regulation (BPR) is responsible for Biocides regulation and
the European Chemicals Agency (ECHA) is responsible for coordinating the approval of
Biocides and the authorisation of products at EU level. A Biocidal Products Committee,
consisting of representatives from each of the EU Member States will give its opinion on
Biocidal products, supported by technical and scientific support from ECHA. A Biocidal
product cannot be supplied on the EU market after 1st September 2015 unless the Biocide is
included in the Article 95 list of the approved Biocides. See the list on
http://echa.europa.eu/information-on-chemicals/active-substance-suppliers
The regulation of Biocides used in Antifouling products is via Product Type 21. DCOIT was
the first biocide approved in Product Type 21 for which a positive recommendation for Annex
1 inclusion has be issued (December 2010). The examining member state for DCOIT was
Norway.
In Asia, regulation is continuing to expand. Japan registered antifouling paints in 2008 and
there is pressure to implement such systems in Korea, China and Singapore. In Japan, the
antifouling systems are regulated by The Japan paint manufacturers association (JPMA). The
aim of the JPMA self regulatory programme is to provide IMO convention compliance
information to ship owners, ship operators, government regulatory authorities and other
related bodies. To achieve their objectives, the JPMA has commenced a programme of self
control of antifouling systems and has issued on their website a list of registered paint
products with and without biocides.
In the USA, biocides are listed on the national inventory of chemical substances which is
called TSCA. Alongside the listing on TSCA, there are regulations governing the use of
biocides on both the federal (EPA) and state level. Industry bodies also try to influence the
adoption of regulations.
Recently there is legislation being introduced to limit copper in the USA. Coatings with copper
can leach and this has created investigations from water-quality regulators which has resulted
in regional ports along with their political representatives to publish proposals which is
resulting in legislation that would require most recreational boaters to gradually shift to new
paints that contain little copper. The legislation will result in permitting low-leach copper paints
starting January 2015. California, Maryland and Washington have passed such legislation.
9 TRENDS
The prevailing attitude among antifouling paint producers is the desire for more
environmentally friendly biocides due to stricter environmental demands. Also clean water
initiatives will have an effect on the type of biocides as boatyards are potential sources of
pollution. In addition, the antifouling paint manufacturers require an active ingredient with the
following features:
• Broad spectrum antimicrobial activity

• Good toxicity profile
• Biodegradable
• Colourless, odourless and low volatility

• Low water solubility for fungicides
• Unaffected by solar radiation
• Chemically stable in paint

• Stable over a broad temperature and pH range
• Compatible with paint ingredients
• Very low levels of impurities
There has been two new antifouling biocides recently introduced. Janssen developed
Econea (tralopyril). It is effective at controlling a wide range of invertebrate fouling organisms.
The product has favourable toxicological & ecological properties. To date the product has
being introduced by some antifouling coating manufacturers and continues to be evaluated by
other antifouling product manufacturers.
Another new Biocide is I-Tech’s biocide Selektope® (generic name Medetomidine). It

prevents barnacles from secreting a substance that allows them to stick to the bottom of
ships. Copper is currently the main anti-barnacle ingredient in marine paints. Some regions of
the World e.g. Washington have passed laws restricting copper paint on certain types of
ships. Selektope has proven effectiveness in low concentrations and is currently being
evaluated by the leading Antifouling Paint Producers. The company has approval to sell the
material to ship owners in Japan and South Korea with BPD approval being recommended by
the UK. Volvo Penta has acquired the commercial rights to the technology for the leisure boat
market.
In 2013, West Marine is the largest specialty retailer of boating supplies and accessories in
the USA, announced that ECONEA®-based CFA Eco antifouling paint is the winner of their
fourth annual Green Product of the Year Award. West Marine CFA Eco provides multi-season
protection in part due to the excellent antifouling activity of ECONEA®. CFA Eco is
manufactured by Kop-Coat Marine Group from Rockaway, New Jersey, USA
Manufacturers of antifouling paints will be able to use a new ASTM international standard to
evaluate the quality of their products by comparing biocide leach rates in one formulation
against a competitive product or their own products. The new standard, D6903, test Method
for Determination of Organic biocide Release Rate from Antifouling Coatings in Substitute
Ocean Water. Similar methods are being developed by the international organization for
Standardization (ISO TC35/SC9/WG27) for biocides not registered for use in the United
States
The growth of marine fouling on underwater hulls generally has a considerable impact on ship
speed and fuel consumption. This in combination with high fuel prices are resulting in a switch
to high efficiency, but also high price coating systems. This trend is having a positive effect on
the biocides industry.
Antifouling Paint manufacturers are continuing their efforts to find alternative non biocidal
antifouling systems. The most frequent technology is non-stick coatings but they have to be
scrubbed annually to remove algae and are still susceptible to damage. As an alternative, a
good biocidal, self polishing coating can offer the same kind of savings because the self-
polishing action improves the surface smoothness and scrubbing is not required.
It takes at least 5 years to launch a new biocide onto the Global antifouling paint market after
it has been developed. It takes 2 years to conduct the toxicological testing and another 2 to 3
years for country governments to grant registration. Antifouling Paint manufacturers will then
want to evaluate the biocide for up to a 5 years test period. Since the data necessary to
register an antifouling biocide can cost over $5 million, it is a big hurdle in trying to find and
develop new antifouling products.
There is a shift away from older generation booster biocides such as diuron and zineb to
more effective and more environmentally friendly, modern biocides such as cybutryne,
dichlofluanid, DCOIT, tolyfluanid and zinc pyrithione. Currently old generation booster
biocides are used in 80% of antifouling coatings. As the movement to modern booster
biocides occurs, this will positively benefit biocide consumption.
A trend which will impact all industry segments, are the increasingly stringent limits on VOC
emissions. As limits on volatile organic compounds (VOCs) continue to be tightened, research
efforts are focused on the development of water-based coatings that do not release solvents
into the air as they dry. Coatings with reduced VOCs are more expensive because of the
higher cost of such raw materials as resins and other components that take the place of
solvents. Efforts to reduce VOC levels have led coatings manufacturers to develop water-
based antifouling coatings. In this segment we expect to see a continued shift toward the use
of multi-season, ablative coatings and away from leaching type, single season coatings.
Currently all new water-based coatings are ablative types. This trend will have a positive
effect on specialist biocides as they can be used in lower VOC formulations.
The potential to incorporate naturally occurring bio-active substances into coatings is another
area of focus. This trend will gain a lot of resources as biocide free coatings do not have to be
registered and so there is a major incentive to use them. One major disadvantage to date is
their efficacy and longevity.
10 FUTURE
The consumption of Biocides in Antifouling Paints is forecasted to grow 2 % for the next five
years as outlined in the following table:.
Table 23: Projected sales of Biocides in Antifouling Paints

YEAR SALES ($ M)
2018 405
2019 413
2020 421
2021 429
2022 437
2023 446
The major developments expected to drive the Biocides market in the future include;
(1) An increase in global trade and consequently an increased demand for Antifouling paints
which will generate the need for greater quantities of biocides.
(2) The continuing shift away from tin based biocides and non biodegradable biocides.
(3) The increase in disposable income means a growth in the leisure sector such as yachts.
(4) The substitution of cheaper biocides such as copper, dithiocarbamates with more
expensive higher value biocides.
(5) In the future, cuprous oxide will still be the main biocide but the antifouling industry will try
to avoid high levels via a reduction in dosage and a switch away from cuprous oxide in
regulated areas.
All the above developments will have a positive effect on booster biocide consumption.

Global Antifouling Paint

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Global Antifouling Paint

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REPORT

Prepared by: Biocide Information Limited

GLOBAL SUMMARY – BIOCIDES IN ANTIFOULING PAINT

Market Size 2017: Active Ingredient

BIOCIDE SALES BY REGION:

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT:

BIOCIDE SALES BY LEADING ACTIVE INGREDIENT SUPPLIER:

Outlook for the future:

Biocides to increase / decrease:

1 INTRODUCTION & METHODOLGY .................................................................................5

1.3 SAMPLE QUESTIONAIRE ....................................................................................................................................5

1.4 ACCURACY OF THE INFORMATION ...............................................................................................................7

2 END USER ANALYSIS .....................................................................................................9

2.1 TARGET MARKET .................................................................................................................................................9

2.2 GLOBAL ANALYSIS.............................................................................................................................................11

3 BIOCIDE COMPARISON ................................................................................................21

3.2 BIOCIDE PRICING ...............................................................................................................................................23

3.3 BIOCIDE COSTS IN SYSTEM.............................................................................................................................25

4 BIOCIDE CONSUMPTION ..............................................................................................26

4.1 GLOBAL AND REGIONAL ANALYSIS.............................................................................................................26

4.2 BIOCIDE CONSUMPTION AT END-USER LEVEL ........................................................................................29

5 BIOCIDE MANUFACTURERS ........................................................................................31

6.1 OVERVIEW OF DISTRIBUTION CHANNELS ................................................................................................34

7 VALUE CHAIN ANALYSIS .............................................................................................36

8 REGULATORY ANALYSIS ............................................................................................38

1 INTRODUCTION & METHODOLGY

The key objectives of this study were:

1. To provide marketing data on biocides, major antifouling paint applications using

3. To define the distribution channels in the industry.

1.3 SAMPLE QUESTIONAIRE

What % of your marine paint production is treated with an algacide / fungicide?

Which countries do you have manufacturing in for antifouling paints ?

Do you use combinations of Biocides agents ?.

What % of your antifouling paints use copper oxide ?.

What are the strengths and weaknesses of each active ?

Biocide Active 1 Strengths Weaknesses

Are you looking for new Biocides in antifouling paints ?

With regard to antifouling agents, What are your unmet needs ?

Who are the main suppliers of Commercial Antifoulants ?

ANTIFOULING REGULATORY REQUIREMENTS

What regulatory or other approvals do you need for each region

TESTING OF ANTIFOULING AGENTS (especially new ones)

What standard test methods do you use to evaluate?

How open is your company to testing new algacides / fungicides?

1.4 ACCURACY OF THE INFORMATION

Table 4: Currency Conversion Rates

2 END USER ANALYSIS

2.1 TARGET MARKET

2. Recreational boats and yachts

2.1.1 How we estimate Biocide Demand

Table 5: Biocide Consumption on Antifoulant Paints

Table 6: Estimated Consumption of Biocides by Geographical Region

2.2 GLOBAL ANALYSIS

2.2.1 Demand for Antifouling Paints by Sector

Table 7: Estimated Demand for Antifouling Paint by End Use

Sector $ Million Tonnes $/KG

2.2.2 Demand for Antifouling Paints by Segment

Commercial vessels lead as a consuming segment for Marine Antifouling coatings,

Stationary and other 84 7,000 12 2

2.2.3 Demand for Antifouling Paint by Geographical Region

Table 9: Estimated Demand for Antifouling Coatings by Geographical Region

New Ship Building 21,000 4,000 2,000 27,000

TOTAL 73,000 20,000 12,000 105,000

2.2.4 Asia Pacific is Leading Geographical Region