Operating in Japan, Europe, the U.S., Southeast Asia, India and China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets. It divides its business into automotive (39 percent), industrial (28 percent), decorative (25 percent), and marine and protective (8 percent) segments.
With $3.122 bn in sales revenue for 2012, Kansai Paint operates three state-of-the-art 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.
In Japan, which is Kansai’s largest operating segment, in the area of automotive OEM coatings, the company has been investing in developing new technologies which give improved appearance, and actively works to reduce emissions of carbon dioxide.
Kansai’s automotive OEM coatings saw a slight decrease in sales due to reduced exports. Industrial coatings recorded a slight increase in sales due to increased demand for coatings applied to construction machinery to be used in reconstruction projects following the earthquake of 2010. In the fields of auto refinishing, decorative and marine and protective coatings, sales decreased due to the effect of the sluggish domestic economy.
In India, the next largest operating segment, automotive coatings, sales of automobiles have slowed due to the tightening of the money market. However, sales of coatings have grown due to increased sales to local manufacturers. The company reported an increase in sales in decorative coatings as domestic demand has expanded and soaring raw materials costs have been transferred and are reflected in higher prices for products.
In Asia, automotive coatings sales were negatively impacted due to a dip in output from Japanese automobile manufacturers caused by disruptions to the supply chain following the Great East Japan Earthquake. In the latter half of the term, sales were also affected in Thailand and Malaysia due to the Thai floods and the subsequent drastic curtailments in production by industrial customers. In the industrial coatings field, Kansai has been able to increase sales, centered on construction machinery, in China and Thailand.
In Europe, customer manufacturing in the area of industrial coatings continued its steady progress. Despite a slow-down of economic growth in Turkey accompanied by a worsening of the debt crisis in Europe, Kansai’s business continued steadily and sales expanded in both the fields of automotive coatings and industrial coatings.
The business results of Freeworld Coatings Ltd., a company based in the Republic of South Africa that became a consolidated subsidiary of Kansai in April 2011, began to contribute to the company’s consolidated business results from the second quarter of the year.
YEAR ESTABLISHED: 1918
REVENUE: $3.122 billion t (2011: 3.250 bn)
• Automotive coatings • Decorative coatings
• Industrial coatings • Marine and protective coatings
Shoju Kobayashi, chairman; Yuzo Kawamori, president; Koichi Imada, executive vice president.