challenges when promoting UV coatings
in the market and try their best to provide
value based solutions to meet the needs of
their customers.
Large UV coatings
producers provide solutions
instead of merely products
The application of UV coatings normally demands a company to invest in
new coating machines and UV curing
machines, which could be worth of millions of RMB. To master the whole coating process, the operators need many
hours of comprehensive training. To cater to the needs of downstream customers, some UV coatings producers such as
Changrunfa, Huilong Paint and Carpoly
worked closely with their customers to
make sure the UV coating lines deliver
high quality products.
Changrunfa is one of the largest do-
mestic UV coatings manufacturers in
China. Right now the company has set
up coatings manufacturing bases which
cover all the regions of China, located re-
spectively in Chengdu, Shanghai, Beijing,
Tianjin and Guangdong. Their Tianjin
plant, the last production base put into
operation by Changrunfa has a total in-
vestment of 150 million RMB and can
produce approximately 30 thousand
coatings and 20 thousand coatings resins.
The company’s business not only include
UV and waterborne coatings but also in-
clude painting equipment and coatings
resins. In 2015 Changrunfa announced
that their first environmental painting
service center was officially opened in
Zhejiang province, and 30 painting ser-
vice centers are planned to be established
throughout China in the future.
Huilong Paint is a leader in providing
UV coating solutions for the wood door
market, with half of the top 30 wood
door producers using Huilong’s coatings
currently. Although Huilong is a pioneer
in developing UV coatings technology for
wood door applications, the company
is facing fierce competition from other
companies. The technological difference
between different UV coatings products
for wood door market segment is not big.
Furthermore, the growth of the Chinese
wood door market is slowing down.
Based on the information from the China
Timber & Wood Products Distribution
Association, the total production value
of China’s wood door industry was 120
billion RMB, increased by 4. 3 percent,
much slower than their growth speed in
2014, which was approximately 7 percent. The wood door industry is entering
a period of industry integration. Among
over 3000 wood door companies in
China, some of them will be eliminated
or merged into other companies because
of market competition. Entering 2016,
approximately 60 percent of the wood
door producers experienced a decrease of
output in February.
The market environment and the char-
acteristics of UV coatings lead to the fact
that the wood products customers need
more and more customized solutions
from UV coatings companies, a trend
which that challenges UV coatings com-
panies to provide both quality coatings
and efficient and quick services. Skill
trainings, production line adjustments
and improvements and technical support
are all expected after the customers de-
cide to invest into UV coating production
lines. Not a single UV coatings producer
can meet the needs of all the custom-
ers. Strategic partnership is needed more
than ever before. This pushed UV coat-
ings companies to develop more talents,
a reason that many UV coatings compa-
nies organized training classes and estab-
lished service center and schools in the
last two years.
Huge growth potential still
waiting to be tapped into
UV coatings can be used for anticorrosion
purposes, including oil pipes, food and
medicine packages, as well as food and beverage cans. And beverage and food industries are still experiencing quick growth in
China. Based on the statistics from China
National Food Industry Association, in
2015 China produced approximately 177
million tons of beverage drinks, increased
by 6. 23 percent over 2014. And the total
tea drink’s market value surpassed 50 billion RMB in 2015, increased by 10. 6 percent over 2014. Besides food and beverage
drinks, some other market segments also
provided growth potential for UV coatings in China.
Telecommunication market is growing
fast in China. Because of a high technical barrier for UV coatings in this market,
Shanghai PhiChem Material Co., Ltd,
who is the largest supplier of UV coatings
used on optical fiber in China, increased
both their revenue and profit in the last
two years. The company’s revenue was
increased to 432 million RMB in 2015
to 323 million from 2013, and their net
profit was increased by 60. 79 percent in
the same period of time to 105 million
RMB, leading to a high profitability of
24. 35 percent. Alos, the development of
broad band network and 4G(5G) construction provides growth potential for
PhiChem in the future.
In addition, continuous growth of the
automotive industry and new applications of UV coatings in 3D printing are
also offering new opportunities for UV
coatings. CW
“Not a single UV coatings producer can
meet the needs of all the customers.
Strategic partnership is needed more than
ever before. This has pushed UV coatings
companies to develop more talents, a
reason that many UV coatings companies
organized training classes...”
