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China Sees Protective Coatings Boom

Thursday, September 1, 2011

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China’s protective coatings market is booming, with double-digit growth, more than 650 current producers, and an expanding variety of multifunctional products, a new study reports.

China Anti-Corrosion Coating Industry Report, 2010-2011, a new report from Research and Markets, cites a whopping 25.3 percent increase in China's output of industrial anti-corrosion coatings, to 2.18 million tons, between 2009 and 2010.

 Hempel

 Hempel

Hempel is the top provider of protective coatings for China’s growing wind energy market.

“Recent years have seen fast-growing developments in China’s anti-corrosion coating industry,” the report says. Production of heavy anti-corrosion coating increased by 11.2 percent year-on-year in 2010 to 1.59 million tons, accounting for 72.9 percent of the total output of industrial anti-corrosion coating.

Multiple Sectors in Demand

Fueled by major investments in the railway, road, bridge, port, power plant and chemical industries, demand for concrete anti-corrosion coatings currently ranges from 50,000 to 100,000 tons per year, the report notes. Anti-corrosion coatings are also in demand in the automotive, marine, steel structure and wind power industries.

In 2010, China’s output of auto anti-corrosion coatings registered 882,000 tons—40.5 percent of the total anti-corrosion coating output. International brands dominate the domestic OEM coating and plastic parts coating markets, while home-grown brands dominate the refinish coating market.

Marine, Container Coatings

Shipping industry demand for coatings increased by 7.9 percent, to 410,000 tons, between 2009 and 2010. Consumption for ship construction reached 220,000 tons, while ship repair consumed about 190,000 tons. Both markets are expected to maintain their growth rates, the report said.

China’s production of container coatings in 2010 reached 100,000 tons, giving it 4.6 percent of the total industrial anti-corrosion coating market.

Longtime industrial heavyweights—including COSCO Kansai Paint & Chemicals, Hempel, KCC and Chugoku Marine Paints—have traditionally controlled more than 90 percent of China’s container coating market. However, their grip weakened, to just 77 percent of the market in 2009, due to the global economic chaos, the report said.

Construction Steel, Wind Power

China’s construction industry has been exploding since 2006, bringing skyrocketing demand for steel structure coatings. In 2009, China produced RMB 3 billion ($470 million US) of these coatings, up 12 percent year-on-year. Multinational coatings producers lead this market. In 2009, Jotun, COSCO Kansai Paint & Chemicals, AkzoNobel, PPG and Hempel together controlled 24.8 percent of the market.

Consumption of wind power coatings reached 26,000 tons in 2009. Hempel leads that market; Jotun, AkzoNobel and PPG are also major tower coating providers. Mankiewicz, PPG and BASF are leading manufacturers in the blade coating market.

Although Chinese equivalents are latecomers to the wind power coating market, Northwest Yongxin Chemical Industry and other enterprises, have taken the first step toward the industry.

   

Tagged categories: AkzoNobel; Corrosion control coatings; Hempel; Marine Coatings; Market research; Metal coatings; PPG; Protective coatings; Structural steel

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