Europe OEM Coatings Market Sees Falling Sales
But Increased Investment in Paint Shops
One of the
attractions of
the European
automobile
sector to coatings
producers and
their raw material
suppliers is
that a strong
presence in the
region’s OEM
segment offers
opportunities for
sales stimulated
by demand
outside Europe.
by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
Cars sales have been falling in Western Europe as yet another economic down- turn confirms expectations that the region’s recovery from the 2008 financial crisis
will be a lengthy process.
However, while demand for cars declines,
large sums are being invested by automobile
manufacturers in the modernization of their
paint shops in the region to cut production
costs, particularly through reduced energy
consumption, and to make them more eco
efficient.
This means that OEM coatings producers
and their raw material suppliers have to find
ways of offsetting shrinking margins.
Squeezed profitability in the region’s car
sector over the last few years is thought to be
a major reason why DuPont decided to pull
out of the segment by recently selling DuPont
Performance Coatings (DPC), predominantly
an OEM and auto refinish coatings business,
to Carlyle Group, a Washington-based private
equity company.
28 | Coatings World
www.coatingsworld.com
March 2013
