Operating in Japan, Europe, the U.S., Southeast Asia, India nd China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets. It divides its business into automotive ( 39 percent), industrial ( 27 percent), decorative
( 27 percent), and marine and protective ( 7 percent) segments.
With $3.126 billion in in sales revenue for 2013, Kansai Paint operates three state-of-the-art automotive paint plants from its headquarters
in Osaka, Japan and is the leading supplier of automotive coatings to
Toyota, Suzuki, Nissan, Honda, Peugeot and Renault worldwide.
Kansai’s Business Overview by Segment
Japan: In the field of automotive OEM coatings, in the first half of the year
the government policy of subsidies for the purchase of so-called eco-cars
seemed to bear fruit and as a result sales increased. The second half of the
year saw a reduction in the number of automobiles manufactured due to
the end of the subsidy system and a reduction in the number of automobiles exported, however looking at the entire period under review there
was an overall growth in sales. In the field of industrial coatings Kansai
recorded a slight decrease in sales, even with an increase in demand for
coatings applied to automobile components. In the fields of auto refinishing, decorative and protective coatings, Kansai saw an increase in sales for
the term under review due to its efforts to expand sales of new products.
In the marine coatings, demand for new vessel construction continues to
suffer and as a result registered a slight decrease in sales in this sector.
India: In the field of automotive coatings, the high cost of fuel and
high interest rates have combined to blunt the growth of auto sales, however, sales of coatings for the entire period under review have continued
to grow. Despite the slowdown in the growth of the Indian economy,
Kansai saw continued growth in decorative coatings. However, the escalating cost of raw materials continues to put pressure on its profits.
Asia: In Thailand, solid exports combined with the effect of government policy has led to a significant increase in the number of
automobiles sold during the period under review, and in Indonesia,
domestic demand continued to grow steadily, both factors contributing to an increase in our revenue and profits. In China, the slowing
pace of economic growth, coupled with a worsening in relations
between Japan and China, led its main customers to reduce output
for a short period, which caused a reduction in sales. PT.Kansai Pra-karsa Coatings, a company that became a consolidated subsidiary
in April 2012, now contributes to its consolidated business results.
Africa: Kansai Plascon Africa Ltd. (originally trading under the name
Freeworld Coatings Ltd.), a company based in the Republic of South
Africa, became a consolidated subsidiary in April 2011 and contributes
to its consolidated business results for the entire period under review.
Other Regions: Despite a slow-down in economic growth in
Turkey accompanied by a worsening of the sovereign debt crisis
in Europe, Kansai’s revenue registered an increase, especially in the
field of industrial coatings. Moreover, with the recovery in North
American automotive sales, equity in earning of affiliates increased,
which also contributed to this growth in revenue.
Kansai Plascon Announces African Acquisition
Africa’s number one coatings company, Kansai Plascon Africa Limited has
partnered with Astra management and staff to acquire a 63. 25 percent
interest in the issued share capital in Astra Industries Limited, from the
Finance Trust of Zimbabwe (Private) Limited. The deal, worth in the region of $5.5million, will place Kansai Plascon at the head of the coatings
market in Zimbabwe. The acquisition shows Kansai Plascon’s faith in Zimbabwe, which is in the process of rebuilding its economy, as well as the
confidence it places in the experienced management team that heads up
Astra. Astra Paints, Astra’s major subsidiary, is Zimbabwe’s leading paint
company. The other operating subsidiary is Astra Chemicals, which markets and distributes a diversified range of chemical products to industry.
Astra Paints is currently the largest paint manufacturer in Zimbabwe and
has two operating factories in Harare and Bulawayo. Astra Paints also
enjoys 40 percent of the market share in Zimbabwe, with an especially
strong footprint in Harare and Bulawayo. One of Kansai Plascon’s key
strategies is to expand its leadership position into the rest of Africa. The
inclusion of Astra Paints in Zimbabwe further strengthens Kansai’s presence in Southern Africa, as it already has factories and brand presence in
Botswana, Namibia, Zambiaand Malawi. Where Kansai Plascon does not
have a factory in a region, it exports out of South Africa into retail outlets
and directly to contractors. It has been exporting to various countries in
Africa since 2004 including: Mozambique, Seychelles, Mauritius, Kenya
and Nigeria. Hiroshi Ishino, president of Kansai Paint, indicated that it
has been Kansai’s intention to invest in Africa through its holding in Kansai Plascon. This investment, he said, is the first major acquisition since
Kansai Paint acquired Freeworld in 2011. According to Kansai Plascon’s
chief executive officer, Nauman Malik, the acquisition of Astra Paints,
Zimbabwe, will further entrench Kansai Plascon’s leadership position as
the number one coatings company in Africa. “The acquisition will allow
the organization to focus further on its expansion plans and its aim to
continue leading the industry.”
Kansai Paint Co., Ltd.
Osaka, Japan
http://www.kansai.co.jp/global_site
PUBLIC COMPANY
YEAR ESTABLISHED: 1918
REVENUE: $3.126 billion s (2012: $3.122 billion)
MARKETS SERVED
• Automotive coatings • Decorative coatings • Industrial
coatings • Marine and protective coatings
KEY EXECUTIVES
Hiroshi Ishino, president; board of directors: Mitsuhiro
Fukuda, Masanobu Ota, Kunishi Mouri, Masaru Tanaka,
Yoshikazu Takahashi, Koji Kamikado, Hidenori Furukawa,
Shigeaki Nakahara.
