Executive Q&A — Felipe Mellado, Sun Chemical

In our continuing series exploring the minds of the movers and shakers of our industry, this week Felipe Mellado, chief marketing officer of Sun Chemical Corp., agreed to answer our questions.

PN: Tell me a little about your company, the segment of the market it serves, and who you consider to be your “core” users.

FM: Sun Chemical, a member of the DIC group, is the world’s largest producer of printing inks and pigments and a leading provider of materials to packaging, publication, coatings, plastics, cosmetics and other industrial markets including electronic materials, functional and specialty coatings, brand protection and product authentication technologies.

Sun Chemical has more than 10,000 employees supporting customers around the world. With a network of more than 250 locations in 56 countries, Sun Chemical employees work everyday to meet the needs of customers by improving performance on the essentials of business, such as reliable, on-time delivery and consistent product quality. Sun Chemical tailors solutions to unique market needs and brings new ideas and the latest technology to market.

Sun Chemical’s unparalleled global presence allows for the delivery of local service and support that is customized to the geographic markets it serves. Recognized as a leading source of innovation, Sun Chemical has 10 research and development centers that are focused on creating solutions that improve productivity, create new revenue opportunities for our customers, and contribute to a more sustainable, environmentally-friendly future.

In addition to its leadership in inks, coatings and pigments, Sun Chemical introduces new solutions that enable marketers to better manage their brand colors, protect product integrity through improvements in packaging, and introduce security features that defend against counterfeiting. Sun Chemical also creates innovations for digital printing applications, including inkjet printing systems for narrow web and corrugated printing as well as inkjet inks specifically formulated for LED curing.

PN: How did you get involved with the company? What is your background?

FM: Most of my professional career has been in the ink industry, which I joined in 1979 as a research chemist in the research and development center of Coates in the UK. I joined Sun Chemical in 1988, when they bought Prisma, an Spanish ink company partially owned by Coates.

I am a chemist by education, but through the years I have occupied multiple positions in R&D, operations, general management and marketing. I hold a master’s degree of business administration by the IESE Business School in Madrid, Spain.

PN: What do you consider your greatest achievement in this market to be?

FM: Hard to say after so much time in the industry, however, I feel fortunate to have been one of the leading people in the growth and consolidation of Sun Chemical Europe as the industry leader.

PN: If there was anything you could change, either about your career in regards to the print industry, your company, or the market as a whole, what would it be and why?

FM: Being conscious of how much value we deliver, as a company or as an industry. Can you imagine life without color?

PN: What do you consider the greatest challenge to be for the industry right now? Why?

FM: From an industry standpoint, the instability in the raw material market combined with the global economic downturn are the biggest challenges the ink industry is facing right now.

Although crude oil prices have lowered significantly since last year’s peak in July, the pace of reductions in our raw materials has been significantly impacted by the high levels of older and more costly feedstocks and raw materials in our supply chain. The rapid decline in demand, starting in the fourth quarter of last year, eclipsed many of our pigments, intermediates and resin suppliers’ abilities to respond. True year-over-year improvement in average prices will not be achieved until all of the inventory effects completely work their way through our suppliers’ systems.