Could you provide a brief introduction to HB Fuller?

H.B. Fuller is a leading global adhesive provider focusing on perfecting adhesives, sealants, and other specialty chemical products to improve products and lives. Founded in 1887 in the US, today H.B. Fuller serves customers in 140 countries. The company, with facilities in 34 countries, a network of 35 technology centers, and more than 7,000 employees globally, has reported net revenue of $3.75 billion in 2022.

What are the dominant trends shaping innovation in the adhesive market?

At H.B. Fuller, we diligently monitor and adjust our commercial approach when needed. Our strategy includes driving product and operational cost optimization, leading through difference-making innovation, diversifying our portfolio, and advancing sustainability. E-commerce and sustainability stand out as key megatrends impacting the packaging and personal care industries, and particularly prominent in China and the rest of Asia due to overpopulation and high levels of consumption.

For instance, adhesives play an essential role in enabling sustainable packaging solutions. They facilitate recycling, reduce food waste, and help replace non-recyclable materials with eco-friendly alternatives. When the PET or glass bottles are washed in readiness for reuse or sent to a recycler, the adhesive enables the paper or plastic label to be cleanly released from the bottle ensuring the recycled PET or glass material is cleaned well. Laminated adhesives facilitate the switch to recyclable mono materials or compostable laminates with no adverse impact on the mechanical recycling or composting process. Water-based coatings allow the switch from plastic courier bags to paper bags with no loss of protection during transit. There are countless examples where innovation in adhesives makes a real change in terms of supporting industry circularity.

What are your biggest markets in Asia?

Our Asia Pacific regional headquarters is based in Shanghai. In fact, China is currently the largest revenue generator for us in this region. Malaysia is more of a mature market for H.B. Fuller, whereas Indonesia and Vietnam bring greater possibilities for accelerated growth. Indonesia has a large population and a strong government push to accelerate foreign direct investment, while Vietnam has a growing export sector. We have manufacturing sites in Indonesia, Philippines, and Malaysia, as well as technical centers in Malaysia and China.

How has your business managed to mitigate inflation pressures?

We have built a highly diversified business in terms of both end markets and inputs and our range of adhesives with global formulations really proved their worth in providing manufacturing and sourcing flexibility. Collaborating with responsible global suppliers who have strong partnerships within their supply chains is a top priority for us. In fact, to manage inflationary pressures, we have relied on our robust supply approach to ensure the availability of raw materials. Our Strategic Sourcing and R&D teams work closely together to source new raw materials and develop innovative solutions to mitigate any shortfall. Consistent with our focus of continuously improving operational efficiency, we are implementing prudent and decisive actions to align our cost structure with lower volume expectations for 2023 globally. And we are targeting different segments where we believe we can add value and sustain year-on-year growth in Asia.

What are your key priorities and growth objectives moving forward?

At the corporate level, we aim to expand our presence as the biggest pure-play adhesive company in the world and reinforce our industry positioning in the markets we serve. Asia remains a key focus region for H.B. Fuller and we have recently invested in our capabilities and expanded our Guangzhou facility with an R&D center, additional production lines and extended warehouse capacity.

Our priorities include leveraging our global market expertise and talented people, understanding and staying ahead of global and regional market needs and megatrends, and providing innovative and sustainable solutions to customers in existing and new market segments. With a solid strategy and the above unique advantages, we are well-positioned to create value for shareholders, employees, and communities, and achieve our financial expectations for the year and beyond.

Our aim is to be seen as a global respected and responsible adhesive manufacturer, focusing on lifestyle freedom for a growing and aging population and ensuring customer affordability and accessibility to products that impact the quality of life of all people.