China Coatings Industry Speeds Up Adjustment

Based on the report released by China National Coatings Industry Association, the total coatings output of China reached 13.03 million tons in 2013, an increase of 3.6 percent from 2012, but this is the lowest growth rate in the last ten years. It is estimated that the Chinese coatings industry is difficult to return to double digit growth in the next two years, and the adjustment of the structure of China’s coatings industry will continue and might even speed up with the government releasing more and more regulation policies.

China National Coatings Industry Association also disclosed that the Chinese government is planning to impose consuming tax on restricted solvent-based coatings so that the release of VOC can be reduced. If the policy is implemented, the profit of solvent-based coatings producers will be under more pressure, so a transition period of two to three years will be given to these coatings producers. In large cities such as Beijing, Shanghai, Guangzhou, Chengdu and Shenzhen, the producers of home furniture, decorating materials, automotive, refinishes and home appliances have been requested to produce environmental friendly products. On June