China has become the world's largest producer and consumer of coatings. According to recent reports, from January to November 2012, China's coating production reached 11.4 million tons, an increase of 12.09% compared to the previous year. This data is expected to grow at a rate of 10% to 15% per year. The global paint production market research report by Ibis points out that "paint production is in China", and the Chinese paint market is expected to grow by 11% in 2013, reaching $52.2 billion. According to the report, the strong performance of downstream industries in the past five years has led to a 13.4% growth in China's paint manufacturing industry.
With the development of China's paint, coatings, adhesives, and sealants industry, it has also attracted a large amount of investment to this region.
AkzoNobel recently announced plans to invest over 50 million euros in China to establish a new production base, further adding momentum to its powder coating and decorative coating businesses and realizing the company's strategic growth ambitions. Both new bases are located in Chengdu, with powder coating facilities planned to open in 2014 and decorative coating facilities scheduled to start production in 2015.
This is related to AkzoNobel's recent Bermocoll business in Ningbo, which is responsible for the commercial production of cellulose derivatives to serve customers with increasing demand throughout the region, as well as the company's own decorative coating business services. Cellulose derivatives are mainly used in water-based coatings and building additives applications.
AkzoNobel CEO B ü chner said, "The Chinese market is playing an increasingly important role in our growth strategy, and by increasing production capacity, we will further consolidate our position as a leading supplier in the Chinese market. We have established a strong manufacturing trajectory in eastern, central, and southern China, "he added." As demand continues to rise, we will expand our production network westward so that we can better serve our customers wherever and whenever they are
Chengdu is one of the fastest growing cities in the southern and western regions of China, with double-digit growth over the past two decades. As an important industrial center, Chengdu will continue to develop rapidly, and it is expected that the demand for powder coatings and decorative paints will remain strong.
AkzoNobel China Chairman Lin Liangqi said, "We want to emphasize our determination to invest in Chengdu, take advantage of the growing demand, further develop our business in China, and create business opportunities. AkzoNobel currently employs over 7700 people in China, including 500 working in research and development. What was the company's revenue in 2012? 700 million yuan, mostly benefiting from the local market.
China's car sales continue to rank on the premium car sales chart, with August having the highest sales in the past four months, which has also driven sales of sport utility vehicles.
According to a recent report by Bloomberg News, China, as the world's second-largest economy, is experiencing a slowdown in pace for two consecutive quarters. But the China Association of Automobile Manufacturers reported that the number of wholesale delivery vehicles, multi-purpose and sport utility vehicles increased by 11% last month, reaching 1.35 million (1.35 million), the largest increase since April.
The association stated that these vehicles for sale include buses and trucks, which also increased by 10% last month to 1.65 million (1.65 million), and it is expected that 139000 cars will be sold in the first eight months of this year, with sales expected to reach 20 million.
Sales of SUVs increased by 46% last month, reaching 240100 units, while deliveries of multi-purpose vehicles increased by 162%, reaching 105600 units. Sedan deliveries increased by 4% to 899100 units.
The constantly soaring automotive market has prompted automotive paint manufacturers to expand their development in China.
The Asia Business Development Department of LLC recently announced that its client, The Sherwin Williams Company, has fully acquired Changzhou Pulanna Coatings Co., Ltd. Pulanna is a leading manufacturer of automotive coatings in the Chinese aftermarket. This acquisition has increased Xuanwei's market share in China, where passenger car sales have been growing strongly in recent years, from 6.8 million units in 2008 to over 16 million units in 2012. In the next decade, car sales are expected to continue growing by approximately 10% annually.
This transaction demonstrates how BDA values cross-border M&A (corporate mergers and acquisitions) in countries and regions with specialized knowledge, and how it can help clients achieve their economic growth plans in Asia. We hope that as the new owner of Pulanna, Xuanwei can achieve success in the future, "said Mark Webster, Managing Director of BDA.
Axalta coating system will invest over $5 million to build new facilities for manufacturing, supplying up to 25000 tons of paint to car manufacturers in southern and central China. The factory will be committed to meeting the needs of manufacturers and producing water-based coatings that meet environmental requirements. After the government approves the construction, the new factory is expected to break the production record from the second half of 2013 to the first quarter of 2015.
The new factory is close to customers in the Shanghai area and also close to major transportation routes extending to western and southern China, "said Charles Shaver, Chairman and CEO of Axalta Coatings Systems. This additional factory will supplement Axalta OEM's flagship paint manufacturing capabilities and meet the growing automotive production industry in Changchun, China. The water-based coatings produced by the new factory facility will use Axalta's integrated manufacturing process to meet the needs of automobile manufacturers to improve productivity and save energy. At the same time, a specially designed Axalta3 Wet water-based system has been introduced in the new production base, replacing the traditional primers required for a complete oven baking step, allowing manufacturers to switch to larger ovens. This expensive application operating system can produce special formula primers. The new factory will also adopt Axalta's EcoConcept production system, which utilizes proprietary technology to combine primer and primer, allowing manufacturers to achieve multiple baking steps in one step.
The continuously expanding automobile production in China is a reflection of the country's economic growth, and Axalta is pleased to contribute to China's development Shaver said, "Our coating system is meaningful to both manufacturers and the environment. When excited car owners receive their cars, we never forget the contribution of our coatings to their color. Axalta is proud to have played multiple roles in the achievements made in China
Similarly, BASF has also expanded its production of automotive coatings in China, and BASF Shanghai Coatings Co., Ltd. is investing in a new primer factory in Shanghai Chemical Park. The new factory will increase the company's local production capacity by producing 13500 tons of primer annually. The investment company representative is an important step for BASF to strengthen its position as a leading coatings supplier in the automotive industry in China.
The new paint factory plans to start production in the first half of 2014, adopting the latest designed processes and the most environmentally friendly manufacturing technologies. BASF Shanghai Coatings Co., Ltd. is a joint venture between BASF and Shanghai Coatings Co., Ltd., with a successful partnership of 15 years, including a production base operating in Minhang District, Shanghai.
In China, BASF has been providing coatings to international and domestic automotive manufacturers for over 15 years. As a long-term partner, we have witnessed how China has become a world leader in automotive production, "said Peter Fischer, Senior Vice President of Coatings Solutions for BASF Asia Pacific." Our investment in coating production facilities elsewhere reflects our ability to meet the needs of current and future automotive customers in this dynamic market