Coatings World - July 2017

09. Kansai Paint Co., Ltd.
Osaka, Japan
www.kansai.com
PUBLIC COMPANY; YEAR ESTABLISHED: 1918
REVENUE: $2.911 billion s (2015: $2.906 billion)
MARKETS SERVED
Automotive coatings; Decorative coatings; Industrial coatings; Marine and protective coatings
KE Y EXECUTIVES

Hiroshi Ishino, president; board of directors: Kunishi Mouri, Masaru Tanaka, Koji Kamikado, Hidenori Furukawa, Jun Senoo. Shinji Asatsuma.

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 ( 38 percent), industrial ( 25 percent), decorative ( 25 percent), and marine and protective ( 7 percent) segments.

Kansai Paint operates three 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.

Kanai’s Business Overview by Segment – Japan: In the automo-
tive coatings market sector, although automobile production de-
clined year on year, sales were at the prior-year level due to coating
exports and other factors. Sales rose sharply in the marine coat-
ings sector as a result of recovery in the shipbuilding market and
sales expansion efforts. India: In the automotive coatings sector, the
Group worked to further increase market share amid continuously
rising automobile production. The Group engaged in sales promo-
tion activities in the decorative coatings sector as well, especially
during the demand season, at a time of continuing demand expan-
sion spurred by growth in the Indian economy. Asia: In Thailand,
automobile production showed no signs of a full-scale recovery, and
demand remained weak. Business results in Indonesia were affected
by a decrease in automobile production resulting from weakness in
the Indonesian economy. In China, overall sales decreased due to
factors such as weak demand for construction machinery, despite
signs of sales recovery in the automotive sector, partly as a result
of the introduction of tax incentives for compact cars in the second
half of the fiscal year. Equity in earnings of affiliates in China rose
on an increase in the share of sales to non-Japanese automakers.
The overall business results for Asia declined year on year, in part
because of the impact of currency conversion. Africa: Despite con-
tinuing sales promotion efforts, sales fell slightly on a local currency
basis at a time of weakness in the economies of South Africa and
neighboring countries. Investment in sales promotion and other fac-
tors put pressure on profits, and substantial currency conversion
effects contributed to weak business results. Other regions: In Tur-
key, although growth continued, the impact of depreciation of the
Turkish lira on raw materials prices and other factors put pressure
on profits, and currency conversion substantially affected the busi-
ness results. Whereas automobile production in North America in-
creased, growth in automobile production in Europe was sluggish,
and equity in earnings of affiliates decreased.