Welcome Guest to Coatings World    Login || Register
Last Updated Saturday, August 29 2015

Costa Rica Augments Paint Exports

Costa Rico’s five million inhabitants enjoy a gross domestic product of approximately $45 billion, with a relatively high associated per capita income of $11,000. As such, the availability of disposable income for home paints is relatively strong.

By Charles Thurston, Latin America Correspondent

Published March 2, 2014
Costa Rica’s largest paint and coatings manufacturers have increased their exports to this hemisphere 61 percent over the last five years, thanks in part to increased foreign investments in the industry. The statistics, reported by El Financiero, cited the government’s La Promotora de Comercio Exterior (Procomer) export agency, which also indicates that the top ten manufacturers export $44 million worth of paint annually.
The largest exporting manufacturers in Costa Rica include: Colombia’s Pintuco, which owns the Kativo brand and manufacturers the Protecto, Glidden and Vastalux brands; Grupo Sur, which owns the Sur and Koral Brands; Comex and Lanco. Among non-exporting paint companies are: Sherwin-Williams, which markets its Excello acrylic latex line; Corporación BBG, which markets the BBG and Ultra Plus lines; and Fibrocentro, which markets the Pinturama brand.
Kativo operates three production facilities in the region, in Costa Rica, Honduras and Panama, and operates a technical center in Costa Rica serving its 68 stores in Central America. Kativo was purchased by Pintuco in August 2012. Lanco produces its Lanco brand at one production plant in the country at Alajuela. Mexico’s Comex distributes in Costa Rica and the rest of the region, with a total of some 90 points of sale. And in the pipe coatings segment, Lord Corp. recently forged a joint venture in Costa Rica with Terramix.

Costa Rica’s five million inhabitants enjoy a gross domestic product of approximately $45 billion, with a relatively high associated per capita income of  $11,000. This compares with approximately $8,000 for the region and $13,000 for Panama, according to one think tank. As such, the availability of disposable income for home paints is relatively strong.

Where domestic consumption levels finally fail, exports pick up. Among neighboring country importers of Costa Rican paint, Panama leads, taking one-third of the production, followed by Nicaragua, which takes approximately 20 percent of Costa Rican production. In 2012, market analyst IRL identified Honduras as an export destination for substandard paints from unidentified sources.

Costa Rica’s economy is expected to undergo a boost from the Presidential election on January 2, in which academic Luis Guillermo Solis, gained a slight lead over ruling party candidate Johnny Araya; a runoff vote is still expected. Despite a pro-growth platform, the outgoing government has suffered from corruption scandals.

Costa Rica has long been known as the business capital of Central America, and has played a pivotal role in regional development, as well. In June of last year, Costa Rica helped forge the Central America-Mexico Free Trade Agreement, and in 2006 it helped create the Dominican Republic-Central America–United States Free Trade Agreement (CAFTA-DR). Central America is comprised of seven countries: Belize; Costa Rica; El Salvador; Guatemala; Honduras; Nicaragua and Panama.

Last year when U.S. President Barack Obama visited Costa Rica, he vowed to shift U.S. focus on the region to economic development. U.S. trade with Central America was worth $61 billion in 2012.

blog comments powered by Disqus

Receive free Coatings World emails
Sign up now to receive the weekly newsletter, and more!

Enter your email address:
Company Spotlight
18F, No.85, Sec. 1, Chung-Shiao E. Rd.
Taipei, Taiwan, 100
View Profile
Siltech Corporation
225 Wicksteed Avenue
Toronto, ON, M4H 1G5
View Profile
Micro Powders, Inc.
580 White Plains Rd.
Tarrytown, NY, 10591
View Profile
BASF Corporation
100 Campus Drive
Florham Park, NJ, 07932
View Profile
Sunin Machine Co., Ltd.
No.96, Chiao Ho Rd ,Chungho Dist
New Taipei City, Taiwan , 235
Taiwan Roc
View Profile
Shamrock Technologies, Inc.
Foot of Pacific Street
Newark, NJ, 07114
View Profile
Houchi Chemical Co., Ltd
No.56, Fu Chow Street
Taipei, Taipei, 100
View Profile
AZ Electronic Materials Co., Ltd.
No. 458-6, Sinsing Road Hu Kou Township Hsinchu Country 303, Taiwan
Hsinchu Country, Taiwan, 303
View Profile
Follow Coatings World On