cent to $1.75 billion from $2.25 the
year before. The sales decline in
Western Europe was even more steep
at 28 percent to $1.66 billion from $2.3
billion in 2008. Japan’s auto OEM coatings market represented the largest
market in terms of dollars and managed to grow 1.2 percent in 2009 to
$2.23 billion.
In the emerging markets, China in
particular, the growing number of car
owners is driving sustained future
growth in the automotive coatings
industry there. According to Chemark,
in 2009 China’s auto OEM coatings
market grew 5.1 percent to $863 million. India is another emerging market
of note, whose market grew six percent
in 2009 to $292 million.
Leading multinational companies
are expected to continue to strengthen
their footholds in China through merger and acquisition as well as infrastructure expansion to improve distribution channels and to increase production capability.
In-line with this growth trend,
PPG has continued to expand its
presence in the country. In 2008, PPG
acquired Bonny Coating-Made Co.,
Ltd., a private automotive coatings
business in Guangzhou. PPG now
owns all brands, the customer list,
trademarks, technology and working
capital of Bonny. The acquisition
extends PPG’s distribution network
and customer base in China.
Furthering its commitment in
China, PPG also last year broke
ground on its first resin production
facility on main land China at the
Zhangjiagang Yangtze International
Chemical Industrial Park, Jiangsu
province. Resins are key raw materials for paints and coatings, and the
Zhangjiagang plant will supply other
PPG plants throughout China, as
well as automotive customers.
The Zhangjiagang plant will primarily produce water-based electrodeposition resins, which provide a more
environmentally responsible alternative to traditional resin products for
use in automotive and general industrial coatings. The plant will span
60,000 square meters and initial production capacity will be 27,000 metric
tons. The plant is scheduled to begin
operation in early 2011.
PPG said the facility will be “a
model plant in Asia” in terms of its
environmental features, and it will
incorporate many of PPG’s “green”
building materials, such as low-
