A soaring success in the paint industry

Sigma has been an iconic symbol of sustainable success for over 300 years. Founded in 1722, the company is a perfect model of enduring business success that incorporates much more than mere innovative concepts and smart strategies. Continuing success has been built on strong core foundations and it is evidently displayed through an inherent ability to anticipate customer demands and provide unique solutions in an ever-changing global market. Servicing the needs of the three main market segments – decorative, protective and marine – means that that are more than 40,000 product formulations, and these, when combined with the advanced coating technology and manufacturing expertise, effectively and economically meet the demands of the current global markets and the local customer base.

Being part of the PPG Group of Industries means that as a global company Sigma is big, in fact it is currently the second largest coatings manufacturer in the world. Yet it remains humble in its approach and accessible to all customers, whether they are the world's largest oil company or individuals looking to paint their majlis.

Sigma's goal is to remain the market leader and the reference in paints. It also wants to be looked upon as a pioneer and the favoured coatings company across the Middle East. Our vision of being a market leader is not reflected in terms of Dollars, Euros, Riyals or Dinars, as this can more easily be achieved through the production and sales of low-quality economy grade paints.

Colossal growth in 2007

Having achieved a sizeable 25 to 30 percent growth in business last year, Sigma Paints Saudi Arabia is not going to rest on its laurels. Sigma has set its goals to reach the highest pedestal in the regional paints market. The paint-manufacturing giant, which has portrayed itself as a multi-functional coatings solution provider, has a series of expansion programmes lined up to drive it towards its goals. "Sigma currently ranks among the top two companies in Saudi Arabia and is one of the leading multinational paint manufacturers in the Middle East market," says Mark van Diemen, Managing Director of Sigma Paints Middle East, who is confidently taking the firm to greater heights.

Sigma Paints Saudi Arabia has split production facilities in the Eastern Province with the bulk of the water-based decorative range produced in the second industrial city, Dammam. The solvent-based products are produced in the first industrial city, Dammam, the location of Sigma's headquarters. Saudi Arabia being Sigma's largest market in the Middle East, the company has an annual capacity of 70,000 tonnes per year in the kingdom and is on a continuous quest to set up new regional production facilities in order to improve the supply chain, according to Van Diemen. "It is vitally important to develop the supply-chain in order to have a point of supply close to the customers. This will ensure the highest level of service."

Heavy weight performer – outpacing market growth by 400 percent

Speaking with the voice of experience – van Diemen was successful in setting up manufacturing plants in China and India and spearheading their vertical growth – he says: "Sigma has been consistently outpacing the growth of the Saudi paint market, which has been witnessing an annual growth rate of seven percent. Saudi Arabia is the largest paint market in the GCC and worth about SR2.8 billion (US$747 million), with the decorative paint market accounting from more than 75 percent of it.

"Our gallant achievements throughout 2007 have inspired us to set a target of a further 15 to 20 percent growth for this coming year. During 2007, we invested the company's highest capital investment ever in production, logistics and warehousing. This investment in our production facilities in the Middle East has gone towards increasing our overall capacity, and enhancing the flexibility and diversity of our production," he adds.

Fighting spirit and positive vibes

Van Diemen also credits the company's success to its significantly increased research and development (R&D) facilities and continuous focus on customer needs. "Sigma's extensive R&D facilities are geared up to continually enhance the three sectors; decorative, marine and protective coatings. Sigma's field technical services department consists of a number of experienced coatings and inspection engineers with the function of providing onsite support to our PC and marine customers." Van Diemen equally points out the company's soft values; the company's internal ambience. "Lately we have experienced an abundance of positive vibes. My colleagues are highly motivated, and as a result they transfer the fruits of this dedication to our customers, whether they be professionals, distributors or end-users. These inspirational positive energies and their fighting spirit are highly contagious," van Diemen laughs warmly.

Soft praises from a strong leader

"We are transforming from a technology-focused to a market-driven company and are exerting every effort to turn Sigma into a multi-functional, multi-market company. All three sectors – decorative, marine and protective coatings – are key to the company's success and we aim to be the leaders in each and every sector. Our driving force is fuelled by innovation across the board, and this makes us a major creative force," says van Diemen. "Our goal is to become the leading paint company in the Middle East – and I believe we are the leaders. We are pioneers. Being a market leader does not necessarily have to be in terms of market share – because you can have the largest market share even though you supply cheap, low-quality paint. For us, leadership means being ahead of the market, offering new, innovative ideas and solving the problems of our customers."

Innovation, dedication and durable protection

To stay on top, Sigma is focusing on innovation, dedication and durable protection, which are the company's brand values. Van Diemen emphasises that apart from aesthetic values paint should also offer functional and technical advantages. Towards this end, Sigma has introduced a number of new and reformulated products that include:

• Sigmacryl Premium ABF, an innovative anti-bacterial and fungicidal coating. This environmentally friendly waterborne product affords vital additional protection in buildings by making ceiling and wall areas safer to touch. A perfect finish to protect the health of children. It also helps to keep rooms fresher by preventing bacteria that cause unpleasant odours from setting in, suggests Yanal Shekem, Middle East Marketing Manager for Sigma Paints Saudi Arabia. The product has been independently tested by Industrial Microbiological Services in the UK and is certified as 99.95 percent effective as per the rigorous test standard JIS Z 2801.
• The new Sigmaflex Premium, which has been developed to provide protection and decoration to cement exterior substrates that are prone to cracking and concrete carbonation.
• A new range of primers and fillers that have been developed and upgraded to provide the essential foundation for beautiful finish coats ensuring superior durable protection.

Unique solution and mind-boggling cost savings

Among the most striking new product developments in the protective coatings sector is a new innovative technology to coat buried pipelines, known as internal pipeline rehabilitation. "We are one of the few companies in the region that can provide a unique service which allows a pipeline to be coated while it is still buried," van Diemen explains proudly. "This in-situ cleaning and coating process provides a method to apply a coating to existing pipelines in order to stop corrosion processes and chemical attack. With this process, existing pipelines can be refurbished at a fraction of the cost of a new line."

The "internal pipeline rehabilitation' technology is already being employed in Sigma's first such project in the region, which involves a 16 to 20 km stretch of pipeline in Kuwait. Having achieved significant success with the first order, which it won a year ago, Sigma has also been appointed to undertake the second and third phases of this project.

New factories lined up

With all the current success in its hand, Sigma is now looking at further expansion of its production facilities as well as setting up new factories in the region. Two comprehensive feasibility studies have been finalised – and the projects are currently in the approval stage. The company has one of the largest sales networks covering all the GCC and Levant countries. It also has a production facility in Egypt, which began operations in 2004. Sigma currently employs a staff of about 500 qualified and motivated people throughout its Middle East operation and manufactures its paints and coatings in compliance with international standards. "We comply with the relevant American, European and other internationally-recognised standards," says van Diemen.

Paint academy for specifiers and applicators

Sigma's dedication towards its own employees and customers is evident in view of the company's continuous investments in education. The paint manufacturer provides a range of value-added services including a paint academy for applicator training and technical seminars. Last year, training sessions were organised for a total of 1200 third-party applicators. In addition, technical seminars for architects, consultants and engineers have been held frequently over the past four years. The technical seminars programme – which forms part of Sigma's ongoing strategy for technical education and product awareness – targets and exceeds a total audience of over 2000 every year. It includes six annual seminars for architects, consultants and contractors and 15 applicator seminars.

Females only

One other value-added service from Sigma Paints are showrooms dedicated to women in the Middle East, the first of which was opened in 2006 following market research that indicated the important role played by women in the decisions taken on paint colours and interior finishes. "These centres have been well-received by the market and have helped in promoting brand awareness. Our decorative and artistic finishes open the colourful door to a new inspirational world of design, much appreciated by Saudi female nationals," says Van Diemen.

"Sigma's motto is to deliver what we promise," he continues, "we are trustworthy and true to our heritage, not only in terms of supply but also in providing effective solutions and after-sales support to achieve the highest level of customer satisfaction, while a contented customer will spread the good word around and as such strengthen our brand awareness and our reputation as a reliable paint company."

Lifecycle cost = cost per sq metre per year

"We aim to identify the problems that the market is facing from the end-user's point of view, study the lifecycle cost of the paint and how we can reduce the customer's maintenance cost and translate this information into paint development. We are on a quest to continuously enhance our total concept, rather than just paint development," says van Diemen.

The market throughout the region has been affected by the rising cost of raw materials and passing on the increased cost to the client is unavoidable. Sigma has however not resorted to procuring raw materials that fall below its stringent quality standards in order to cut costs. "Sigma focuses on the lifecycle of a paint system. While the construction boom will continue, insufficient attention is paid to the quality. The market is too price-conscious. Rather than looking at initial cost of a paint drum, it needs to evaluate the long-term cost implications. Our philosophy on pricing is based on cost/per sq m/year – as it is important to know how long the paint will last before you need to repaint again."

Passion for speed and success

Van Diemen continues to steer Sigma forward with a passion that epitomises his character. Having stepped on board SigmaKalon/PPG more than two decades ago in 1987 at the R&D application centre in Amsterdam, Holland, he has accelerated the speed of development and success wherever he has piloted the paint operation in the Far and Middle East. His motto for success is 'passion' – and his passion is quality automotives and paints. The former ignites him to speed up Sigma's paint success in the span of yet another century.

About Sigma Paints

In January 2008 the world's second largest coatings manufacturer was formed as a result of PPG's acquisition of SigmaKalon (Sigma Paints), the company now having an annual turnover of $14 billion. Prior to this acquisition Sigma, was a global leader in the coatings industry in its own right, the second largest in Europe and employing over 12,000 people across 50 countries, having an annual turnover of $2.8 billion. The US-based PPG Industries, a global supplier of coatings, chemicals, glass and fiber glass, has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries worldwide. Consolidated sales of paints in 2007 were US$10.6 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG).

Innovative Leader

Sigma, founded in 1722, is universally acknowledged for its superlative quality and this has been the case for almost 3 centuries! Sigma Paints Saudi Arabia, established in 1981 in Dammam, is a consortium of eminent Saudi businessmen and PPG. While the Saudi industrialists are the major shareholders with a stake of 80 per cent, the company is managed by Sigma / PPG. Over the past quarter century Sigma Paints has grown to become one of the Middle East's paints and coatings leaders in the Decorative, Marine and Protective Coatings market segments. These 3-centuries of European heritage have contributed significantly to Sigma's present day leadership in innovation.

Our Mission

Sigma responds to society's need to decorate and protect its surroundings. By combining customer insight with superior production, logistics and distribution platforms, Sigma is continuously achieving sustainable competitive advantage. Through our dedication and professionalism, we aim to provide superior products and services from present to future.

We even go further to differentiate ourselves – adding value through ambition, expertise, innovation and commitment. Our business is a people business in which we strive to develop and maintain the very best relationships with all of our stakeholders.

Sigma Paints is committed to the highest standards of quality and protection of the environment while building an efficient organization that offers rewarding opportunities and a pleasant working environment for motivated staff.

Innovation

For Sigma, leadership means to be ahead of the market, offering new ideas, anticipating and providing sustainable solutions to the paint problems of our customers. In order to retain this elevated position, Sigma focuses on innovation, dedication and durable protection, the brand values of the company. By monitoring the industry and continuously enhancing not only the systems, but also the supply chain and after sales services, Sigma has a proficient and holistic business approach.

Towards this end, we invest continuously in research and development offering the most innovative coating solutions in the region. We provide complete and comprehensive paint solutions, as durability comes not only from the finish applied but from a well formulated, compatible, tried and tested full coating system. Sigma is the effective paint solutions provider.

Durable Protection

Sigma directs its focus on the lifecycle of an applied paint system, rather than looking at the initial price of the paint drum, the long-term implication for customers being much more relevant and important than the initial cost. Our philosophy on durability is based on cost /per sq m/year – as it is important to know how long the individual paint system will continue to function effectively. Thanks to a worldwide network of International Research & Development (R&D) facilities and color experts Sigma is at the cutting edge in the Decorative, Marine and Protective coatings market segments. Sigma is more than a high quality paints manufacturer.

Intelligent R & D

Sigma's commitment to quality was recognized in 1994 when it became the very first paints and coatings company in Saudi Arabia to be rewarded ISO 9001 accreditation. Our coating systems are specially designed to endure the most aggressive of climatic conditions prevalent throughout the Middle East, providing durability, reliability and protection. Before any new product is introduced to the market, our Research & Development laboratories do extensive product testing, including field testing and accelerated weathering – mimicking real life exposure conditions – to ensure that the performance of the products are equal to the challenge of the real life environment to which they will be exposed.

Dedication to People

The pivotal objective of Sigma Training Academy is sharing our extensive problem solving and coating solutions knowledge. We are dedicated to provide our partners a wide range of value-added services including applicator training and technical seminars. Training sessions are organised for hundreds of paint applicators every year. Technical seminars for architects, consultants and engineers are regular and frequent, passing on the vital information regarding paint specification and quality assurance. These programmes form only a part of Sigma's ongoing strategy and commitment to technical education.

Sigma's entire team strive to identify the current challenges that the market is facing and is, as ever, looking towards the challenges of the future. We are true to our heritage, not only in terms of technological innovation, product supply and training, but also in our dedication to provide cost effective solutions that are supported by unrivalled levels of after-sales service. This will strengthen not only public awareness of our brand but will also enhance our reputation as a reliable and progressive paint company.

Environment – our Precious Planet

Sigma takes great pride in the respect it shows to the environment. In line with our incessant quest to introduce new innovations and improve our current product range, equally important is the need to reduce the impact that these activities have on our planet and its people.

As the world's 2nd leading Coatings Company, Sigma / PPG honors its global responsibility in addressing two of the most critical issues facing the world today; climate change and energy security. Commitments include:

• Continue to conserve energy and increase our use of renewable energy and raw materials.
• Continue to implement GHG emissions reduction programs throughout our global operations and set more challenging goals to further limit these emissions.
• Work with other interested parties and authorities to develop fair and effective international policies regarding energy security and climate change.
• Advocate benefits derived from energy-saving products and products derived from renewable resources.
• Develop market leading-edge products that benefit the environment and conserve energy.

Core Values

We are business driven:

We have relevant experience and skills. We are fast and pragmatic. We adapt to new demands and we progress through new ideas and ways of doing things. We are proactive; anticipating opportunities and problems and subsequently taking initiative.

We are dedicated to people:

We believe in teamwork. We are empathic; we listen to other people's points of view. We manage conflicts constructively through dialogue. Our cultural diversity is enrichment. We gain the esteem of others through respect. We contribute to the community. We take social and environmental responsibility towards sustainability. We are equitable and honest and we always deliver on our promises.

We think positively:

We are open-minded and receptive to different views and new ideas. Long-term visions lead us further. We keep a constructive 'Can Do' attitude, we are energetic and we have an enthusiastic drive that boosts our actions. We are confident and we express ourselves through communication. We have always been, and will remain, a colorful and appealing company from present to future.

Ultimate goal

To enrich people's lives through dedication, decoration and durable protection and, as such, strengthen our position as the favored coatings company in the Middle East.

Sigma: The Innovative Leader.

Mark van Diemen, Managing Director, Sigma Paints Middle East