Coatings World - October 2015

But this does not mean AkzoNobel will not further develop the China market, which is still important in its global roadmap. The company just implemented into China with a new strategy different than the one which focused on capacity growth and new investment before.

Although the real estate market
is slowing down in China, refurbish-
ing and redecoration markets are still
growing and taking over the market
space left by new real estate market
category, and non-residential construc-
tion market is also very active. For ex-
ample, Shanghai Disney project, which
will attract a total investment of 29. 5
billion yuan, will provide a huge paint-
ing demand. AkzoNobel still invests
in China but only in market areas that
still shhow potential. For example, on
March 1, 2015 AkzoNobel started con-
struction of its new powder coatings
plant in Chengdu, Sichuang province,
adjusting its business strategy toward
developing western China market,
which lags relatively behind the de-
velopment of the eastern coastal area.
Potential in western China is still big.

For example, Ford Motor, which has its main manufacturing base in Chongqing, grew by double digits in 2014 although entering China relatively late comparing with Valkswagon and GM.

In the top 30 powder coatings list for 2014, AkzoNobel is followed by Axalta Coating Systems, the former DuPont coatings branch, in China, with a total output of 42 thousand tons. Axalta Coating Systems at the end of last year renewed its strategic partnership with Huajia. With six powder coating operations across China, Axalta Huajia Coatings has increased manufacturing capacity and its product range to meet the growing demand for high quality powder coatings for its customers in China. The only Chinese domestic powder coatings producer ranked among the top three is Shandong Ai Ao Powder Coatings, which produced 33. 5 thousand tons of powder coatings in 2014, about half of the output of AkzoNobel.

After divesting from DuPont, Axalta seems to be putting more effort in raising the new brand’s awareness in the China market, and marketing promotions such as event sponsorship, new product launches and seminars. Although, we did not see Axalta add big new investments in the powder coatings category in 2015 in China.

Compared with the past, new investments from powder coatings producers are dwindling. But even with less than seven percent growth, a possibility of only ;ve percent for the automotive industry, China’s economic growth is still very impressive in the world compared with other developed countries such as Japan and Europe. But this will de;nitely lead to even ;ercer market competition, especially in the powder coatings market. Only continuously improving companies can still stand on the top. CW