07.28.22
Osaka, Japan
www.kansai.com
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, including automotive, decorative, industrial and marine coatings. It divides its business into automotive (26%), automotive refinish (5%) industrial (28%), decorative (27%), marine and protective (6%) and others (8%).
By region, Japan comprises 35% of sales, India 20%, Asia 17%, Africa 9%, Europe 17% and others 2%.
Kansai Paint operates three 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.
The company employs 16,459 people.
The company reported sales of $3.11 billion. Sales increased due to recovery from the COVID-19 impact last year, volume increase and price increases.
Sales in the decorative coatings sector decreased slightly on a year-on-year basis due to a decline in demand for DIY paints. In the automotive coatings (for refinishing) and the protective coatings sectors, sales increased year on year.
India: The automotive coatings and decorative coatings sectors faced the impact of the stagnant economy amid the second wave of the spread of COVID-19.
Europe: In Turkey, while sales increased on a local currency basis, the impact of the depreciation of the currency on raw material prices put pressure on profits. In addition, equity in earnings of affiliates decreased due to the reaction to the reduction in tax burden applied to the preferential treatment for capital investment received in the previous year for equity method affiliated companies. Also in other European countries, mainly the industrial coatings and the automotive coatings (for refinishing) sectors saw a year-on-year increase in sales due to strong demand, resulting in year-on-year growth in net sales in Europe as a whole.
Asia: In China, sales in the automotive coatings sector increased year on year, reflecting a recovery of car production. Sales in the industrial coatings sector increased year on year on the back of robust sales of paints for industrial machinery.
Africa: While South Africa and neighboring countries continued to face a sluggish economy due to the rebound of COVID-19, the decorative coatings sector succeeded in absorbing demand, which led to growth of sales in the South African region.
Others: In North America, sales of paints for automotive components grew year on year, although automobile production remained flat compared with the previous fiscal period.
Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around €280 million. The transaction includes the Plascon brand, which has more than 100 years of heritage in South Africa.
Together with AkzoNobel's Dulux brand, they’re the longest-established paint brands in the region. The intended acquisition also includes automotive and protective coatings, and coatings for wood and coil.
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” said AkzoNobel CEO Thierry Vanlancker.
“Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”
Added Kunishi Mori, Kansai Paint’s president: “We are convinced that AkzoNobel is the best owner as AkzoNobel considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy."
For Prejay Lalla and Arvind Shekhawat, CEOs of KPAL and KPEA (the respective Africa entities being sold by Kansai Paint in this transaction), this agreement is an opportunity to further enhance growth. “We believe that AkzoNobel will be the owner who will elevate the business to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities as well as the long-term success of its paint businesses in Africa.”
www.kansai.com
PUBLIC COMPANY; YEAR ESTABLISHED: 1918
REVENUE: $3.11 billion t (2020: $3.77 billion)
MARKETS SERVED:
Automotive coatings; Decorative coatings; Industrial coatings; Marine and protective coatingsKEY EXECUTIVES:
Hiroshi Ishino, CEO; Kunishi Mori, president; board of directors: Masaru Tanaka, Koji Kamikado, Hidenori Furukawa, Jun Senoo, Shinji Asatsuma.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, including automotive, decorative, industrial and marine coatings. It divides its business into automotive (26%), automotive refinish (5%) industrial (28%), decorative (27%), marine and protective (6%) and others (8%).
By region, Japan comprises 35% of sales, India 20%, Asia 17%, Africa 9%, Europe 17% and others 2%.
Kansai Paint operates three 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.
The company employs 16,459 people.
The company reported sales of $3.11 billion. Sales increased due to recovery from the COVID-19 impact last year, volume increase and price increases.
Overview of financial results
Japan: In the automotive coatings sector, sales in the new car area and paints for automotive components remained unchanged year on year due to an increase in exports and a decline in domestic sales, reflecting a decrease in car production from the previous year. Sales in the industrial coatings sector recorded a year-on-year increase due to robust sales of paints for industrial machinery and other products.Sales in the decorative coatings sector decreased slightly on a year-on-year basis due to a decline in demand for DIY paints. In the automotive coatings (for refinishing) and the protective coatings sectors, sales increased year on year.
India: The automotive coatings and decorative coatings sectors faced the impact of the stagnant economy amid the second wave of the spread of COVID-19.
Europe: In Turkey, while sales increased on a local currency basis, the impact of the depreciation of the currency on raw material prices put pressure on profits. In addition, equity in earnings of affiliates decreased due to the reaction to the reduction in tax burden applied to the preferential treatment for capital investment received in the previous year for equity method affiliated companies. Also in other European countries, mainly the industrial coatings and the automotive coatings (for refinishing) sectors saw a year-on-year increase in sales due to strong demand, resulting in year-on-year growth in net sales in Europe as a whole.
Asia: In China, sales in the automotive coatings sector increased year on year, reflecting a recovery of car production. Sales in the industrial coatings sector increased year on year on the back of robust sales of paints for industrial machinery.
Africa: While South Africa and neighboring countries continued to face a sluggish economy due to the rebound of COVID-19, the decorative coatings sector succeeded in absorbing demand, which led to growth of sales in the South African region.
Others: In North America, sales of paints for automotive components grew year on year, although automobile production remained flat compared with the previous fiscal period.
AkzoNobel to Acquire African Paints and Coatings Activities from Kansai Paint
AkzoNobel is to further strengthen its African footprint after reaching an agreement with Kansai Paint to acquire its paints and coatings activities in the region. Completion, which is subject to regulatory approvals, is expected during the course of 2023.Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around €280 million. The transaction includes the Plascon brand, which has more than 100 years of heritage in South Africa.
Together with AkzoNobel's Dulux brand, they’re the longest-established paint brands in the region. The intended acquisition also includes automotive and protective coatings, and coatings for wood and coil.
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” said AkzoNobel CEO Thierry Vanlancker.
“Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”
Added Kunishi Mori, Kansai Paint’s president: “We are convinced that AkzoNobel is the best owner as AkzoNobel considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy."
For Prejay Lalla and Arvind Shekhawat, CEOs of KPAL and KPEA (the respective Africa entities being sold by Kansai Paint in this transaction), this agreement is an opportunity to further enhance growth. “We believe that AkzoNobel will be the owner who will elevate the business to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities as well as the long-term success of its paint businesses in Africa.”