Coatings World - MAY 2017

China

by Arnold Wang China Columnist

According to a report released by the China National Coatings Industry Association, the entire coatings industry produced approximately 19 million tons coatings in 2016 and grew by 7.2 percent over 2015. It is also estimated that China’s total coatings output will for the first time surpass 20 million tons in 2017. Entrepreneurship spirit and continuous innovations enable Chinese coatings companies to embrace the fierce market competition and actively meet the challenges brought about by new regulations and government policies unprecedented in the past. As a result of this, many Chinese coatings companies, especially large companies, achieved positive financial results in 2016.

Government policies press
coatings companies with
necessary support

Chinese local governments are upgrading their environment regulations continuously. For example, starting on May 1st, the Shenzhen government will apply the second phase of their hazardous materials limitation regulation, meaning solvent-based coatings and adhesives will be banned for use in home furniture products in Shenzhen. This will have a huge impact to the home furniture industry in Shenzhen, a city which has many facilities of home furniture producers. Meanwhile, the Shenzhen government also provides financial support to the companies who will renovate their production line from using solvent-based coatings to using water-borne and UV coatings. The government financial support could be up to 40 percent of the production line’s total renovation cost.