CHINA
finishes-related investment in China. It was designed with a
“lean manufacturing” layout, a comprehensive term referring
to manufacturing methods based on maximizing value and
minimizing waste while operating safely.
“This facility enables us to supply our customers quickly
and effectively with the most technologically advanced coatings in the world,” said John McCool, vice president and general manager, DuPont Refinish Systems. “In addition to collision repair products, this plant will supply the rapidly growing economies of the Asia Pacific region with coatings specially designed for trucks, heavy equipment and a variety of
industrial applications.”
In an interview with Forbes.com, PPG’s chairman and
CEO, Charles Bunch, discussed the company’s focus on trying to get better positioned in Asia. “There are smaller to
midsize companies in Asia that we would hope to be able to
look at in the coming years,” he said. “So I think you’re going
to see our focus shift a little more, in terms of our merger
and acquisition strategy, to Asia.”
In China in 2005 PPG acquired Crown Coatings and in
2006 it acquired Shanhai SunPool.
In addition, PPG boosted annual production capacity of
its factory in Tianjin, a municipality in North China, from
30,000 tons to 70,000 tons. Its new factory, which started
ASIAN ADDITIVES MARKET
Consumption of seven leading coating additives in Asia
was 655 million pounds worth $1.5 billion in 2008,
according to “Asian Coating Additives,” a report from
the consulting firm of Kusumgar, Nerlfi & Growney.
This compares to U.S. consumption of $800 million for
the same additive types, which include biocides, rheology modifiers, dispersants, foam control, wetting, and
slip and rub materials. Coating additive growth in Asia
is forecasted to be nine percent per year through 2012,
more than four times that of the U.S.
As shown in Figure 1, China is the largest consumer of coating additives in Asia, taking 37% of the
dollars. Continued growth in building and manufacturing activity will give coating additives a robust
13% annual rate of growth in China. Figure 2 shows
additive consumption by type in Asia. Biocides are the
largest type with 28% of the additive value. Most is
consumed in marine antifouling coatings, with architectural in-can preservatives and dry film fungicides
the other major outlet.
For more information on this report you can find
Kusumgar, Nerlfi & Growney on the web at
www.kusumgar-nerlfi-growney.com
operations October 30, 2007 covers an area of 60,000
square meters with total investment of $10 million.
In total, PPG has invested more than $60 million in
Tianjin and more than $300 million in China. It will
expand its Tianjin factory again in the next few years to
enable annual production capacity to surpass 100,000 tons.
PPG also made plans to open an athletic footwear coatings application center in southern China.
SigmaKalon and Shanghai IVY formed a joint venture
last year for the sale of decorative coatings in the Chinese
market. The joint venture company is called SigmaKalon
IVY (Shanghai) Paints Co. Ltd (SK IVY).
IVY has contributed its coatings business, run by
Shanghai IVY Chemical Co. Ltd, to the joint venture, while
SigmaKalon contributed its Chinese decorative business,
run by its affiliate SigmaKalon Shanghai Co. Ltd.
The SK IVY joint venture is 85% owned by SigmaKalon
and 15% by IVY.
Tikkurila, the company responsible for Kemira’s paint
and coatings business, increased its market position in
Asian paint markets by establishing a sales company in
China this year. Tikkurila (Beijing) Paints Co., Ltd began
operating on May 22, 2007 in Beijing. At the same time,
Tikkurila acquired the sales company CEIEC-Feelings
