Global ACE coatings market
shows signs of recovery

Agricultural, construction and earthmov-ing (ACE) equipment is big business, one that generates a significant demand for coatings. Prior to the recession, the ACE equipment coatings market, was valued at €2.1 billion generating demand of over 500,000 tons.

The impact of the global recession was felt in all markets. The construction industry was worst affected and spending in real terms fell by almost 20 percent in 2009. This led to dramatic declines in both equipment orders and output. Dealers and leasing companies already held surplus stock, which placed additional pressures on the equipment manufacturers. Markets declined by as much as 60 percent in some markets, including Russia, leading to overall production output of machinery falling by around 40 percent in 2009. This resulted in considerable shrinkage in associated coatings demand.

Governments set aside considerable
sums of money for infrastructure and
construction projects as part of their fis-
cal stimulus packages, intended to inject
funds into key industries during the
downturn. These were more effective in
countries like China and contributed to
stronger performance in the Asia Pacific
region, which accounts for over 55
percent of the ACE equipment coatings
market.

Source: Grant Thornton LLP (see next page)

How the 9.0-magnitude earthquake in Japan will influence the TiO2 industry

By Chris Wu

CCM International Ltd.

At 2: 46 PM JST, March 11, 2011 a massive 9.0-magnitude earthquake occurred near the northeastern coast of Japan, creating extremely destructive tsunami waves which hit Japan just minutes after the earthquake. The earthquake and tsunami have caused extensive and severe damage in Northeastern Japan (Fukushima, Iwate, Miyagi, Ibaraki, Chiba, etc.), leading to a large number of chemical enterprises shutting down, and it will also influence China’s chemical industry.