Albin George, Strategic Consultant, IndustryARC
Regulations have a significant impact on the coatings in- dustry. Potential changes in regulations always create a level of uncertainty throughout the entire value chain,
and throughout the world today, raw material producers, formulators, channel partners, and ultimately end users can be
affected by different regulatory changes occurring in different
geographic regions.
In China, concerns about smog and outdoor air quality are
driving the development of more stringent regulations on the
emissions and VOC content in coatings and refinishes (automo-
tive). Manufacturers are now subject to a 5% tax for VOCs in
excess of approximately 400 g/l. Such regulations are expected to
lead to a tremendous shift in technologies from low-solids, sol-
vent-based coatings to high-solids solventborne and waterborne
technologies and result in increased capital costs for equipment
upgrades and ultimately higher-cost coatings. On the positive
side, the switch to waterborne technology has created exciting in-
novation opportunities for manufacturers of resins, additives and
Regulatory Activity & Supplier Divestments
Impacting the Coatings
& Refinishing Industry
