• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Powder Coatings Market

    Exterior Architectural Coatings Market

    CHINACOAT 2019 Reaches New Heights

    Automotive Refinish Market

    Asia Pacific Coatings Market
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Beckers Group Announces Global Price Increase on Coil, Industrial Coatings

    Evonik, Wynca Celebrate Groundbreaking of New Fumed Silica Plant in Zhenjiang

    Personnel Changes in Corporate Communications, Government Relations at BASF

    Palmer Holland Expands Sales Team into Canada

    Axalta Reports 'Oustanding' Feedback on Award-Winning Voltatex 4224
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Beckers Group Announces Global Price Increase on Coil, Industrial Coatings

    Greenkote PLC Reports Upsurge in Powder Coatings Applications on Brake Calipers

    BASF Doubling Automotive Refinish Coatings Production Capacity at Jiangmen, China Site

    AkzoNobel’s Wanda Vehicle Refinishes Brand Celebrates 85th Anniversary

    Pursuit of Balance Inspires Pratt & Lambert’s 2020 Color of the Year
    Additives
    Binders
    Pigments
    Solvents

    Evonik, Wynca Celebrate Groundbreaking of New Fumed Silica Plant in Zhenjiang

    Archroma Announces CEO Transition Plan

    Pilot Chemical Corp. Acquires Órgano Síntesis

    Sun Chemical Releases 2018 Sustainability Report

    Brenntag Distributes Grupa Azoty ZAK S.A. Plasticizer Portfolio in DACH Region
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    ROSS Mixers

    Pilot Chemical Company

    Keim Additec Surface USA LLC

    Siltech Corporation

    EPS
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Polymers & Coatings Winter 2020 Short Course

    2020 Greenbuild India Conference

    The Waterborne Symposium

    Spray Finishing Training 2020

    Middle East Coatings Show 2020
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Keim Additec Surface USA LLC

    ROSS Mixers

    EPS

    Pilot Chemical Company

    Siltech Corporation
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Europe Reports

    Consolidations in the Coatings Industry to Accelerate Growth in Europe

    The competition should intensify, particularly as a result of expansion initiatives by U.S. companies in Europe.

    Related CONTENT
    • 28 Tikkurila Oyi
    • Jotun: EU Antifouling Copper Approval will Ensure Continued Efficiency, Savings, 'Eco' Performance
    • Coatings Summit 2017 Held in Shanghai
    • Egypt’s Coatings Market on Recovery Path
    • Jotun to Increase Prices for Marine, Protective, and Powder Coatings
    Sean Milmo, European Correspondent09.13.16
    Many European coatings companies have been reporting revenue increases in the first half of this year which have been lower than rises in volume sales of their products.

    The discrepancy is partly due to weak demand which has been putting downward pressure on prices, as well as currency effects. But a key factor is stronger competition as companies battle for greater market share through acquisitions and marketing and  sales investments.

    The competition should intensify, particularly as a result of expansion initiatives by U.S. companies in Europe and its peripheral markets.

    Sherwin-Williams has made clear that an objective behind its takeover of Valspar to make it the world’s largest coatings company is to accelerate its growth in both Europe and Asia.
    PPG and Axalta are also seeking a stronger presence in Europe by taking advantage of what they perceive as gaps in a regional market which continues to be fragmented.

    However  enlargement ambitions are not just confined to U.S.  companies.  Most of  the big coatings  and many medium-sized players in the European coatings sector have now adopted strategies of growth through acquisition.

    The exceptions are European companies which have been pursuing a  strategy of sales and profits growth through expansions into markets outside Europe without the need for takeovers.  “While we remain focused on controlling costs, Jotun remains committed to our organic growth strategy, which applies to both existing and new markets,” said Morten Fon, president and chief executive of  the Norwegian-based coatings producer.

    Jotun, which reported a 5 percent and 21 percent rise in sales and operating profit respectively in the first four months of this year,  has  been investing during the period 6 percent of  revenue in the Middle East and Asia, mainly in new factories. 

    Opportunities for takeovers in Europe, particularly of the bolt-on variety,  are thought likely to become more numerous as the less financially robust producers  are unable to benefit much more from low interest rates, static labour costs  and cheaper raw materials.

    Medium-sized and even small coatings companies are seeking openings to move into new national market and into niche segments in end-use sectors in industrial   and protective coatings.

    Organic growth has become more difficult to achieve in Europe at a time of continued  slow rises in  GDP.   In the 17-country euro currency area, GDP is forecast to go up by only 1.5 percent this year.  In countries like Italy growth is predicted to be below 1 percent, whereas it is forecast to be close to 3 percent  in Spain.

    In  some non-euro countries the picture is relatively bright  with the economies of Sweden expected to expand by 3.5 percent and Poland by 3.3 percent.  However a recession in Russia, stemming  from the fall in the prices for oil and gas, its main exports, is having a negative effect on some neighboring Eastern European economies.

    Much of the acquisition, divestment and marketing and sales strategies of coatings businesses  in Europe are being shaped by these  variations in the performances of national economies as well as different trends in end-use markets.

    Tikkurila, whose revenues declined by close to 1 percent in the  first  half of the year despite  a growth in volume sales in its main Scandinavian and Eastern European markets, is maintaining market and sales expenditure in its growing Scandinavian outlets.

    However it is pursuing a decentralizing policy in parts of Eastern Europe.  It concluded in June the sale of its Ukraine and Belarus operations to local management, which will continue to distribute Tikkurila’s products in the two countries.

    Tikkurila expects that the greater freedom given to local managers will help boost sales. “Based on the good experience from a similar type of change in our business model in the Czech Republic, Hungary, Romania and Slovakia in 2012, we have decided to develop and streamline our operations in Ukraine and Belarus with an entrepreneurial distributor- driven model,” said Erkki Järvinen, Tikkurila’s president and chief executive.

    The economic downturn in Russia has not deterred foreign coatings companies investing  in the country.  AkzoNoble has been increasing production capacity for protective coating at Lipetsk.

    The expansion, which will mean that production is concentrated on fewer, larger sites in Russia, will bolster  AkzoNobel’s supplies of  protective coatings to regional oil and gas, mining, power and infrastructure markets, as well as marine coatings for ship building, maintenance and repair.

    Teknos, the Finnish industrial and decorative coatings producer,  acquired last year the Russian metal  coatings business OOO Trading  Company Massco. In June this year it strengthened its position in the German industrial coatings sector with the takeover  of  Feidal Coatings’ industrial coatings operation.

    Feidal, based in Duisberg, Germany,  is effectively being broken up after its private owner revealed the business did not have the resources to keep the company “in its existing form.”

    Meffert AG, Bad Kreuznach, Germany, announced in August it was acquiring the German decorative paints business of Feidal.  Meffert, which has annual turnover of  around €330 million ( $373 million),  is an example of a company which is now putting more emphasis on growth by acquisition.  Klaus Meffert, the company’s chairman, told staff in July that he was optimistic about the second half of the year because of the  number of  consolidation initiatives currently being negotiated by Meffert.

    One strategy being followed by some companies is to extend the reach of distribution channels by expanding retail chains and other outlets like car body shops. 

    CIN Group, the Portuguese decorative, industrial and protective coatings  company, now  has around 120 decorative paints stores including six megastores and around 20 superstores after  new  openings in Spain, France  and Belgium.

    In the automotive refinish sector, Axalta announced in August it had taken over the Dutch distributor Geeraets Autolak.  The company has also opened in Germany a European technical support centre for vehicle refinishing.

    Axalta, formerly DuPont’s performance coatings business which after being sold to the equity fund  Carlyle Group in 2013 is now 95 percent owned by financial institutions, has centralized its European operations by establishing a European headquarters in Basle, Switzerland.

    Europe’s coatings sector will now be bracing itself  for the impact of the Sherwin-Williams / Valspar  merger on the region.  Just before Sherwin-Williams announced its planned takeover of  Valspar earlier this year, Valspar itself had acquired the Italian coil coatings operator ISVA Vernici to expand  its coil activities in southern Europe, North Africa and the Middle East.

    There could be similar moves in a variety of coatings sectors in Europe by the combined company once the Sherwin-Willams/Valspar  acquisition is wrapped up, due  early next year. 
    Related Searches
    • binders
    • protective coatings
    • adhesive
    • valspar
    Suggested For You
    RadTech Issues Call for Papers for 2018 Conference RadTech Issues Call for Papers for 2018 Conference
    Coatings Industry Grew Fast  Under New Market Pressure in 2016 Coatings Industry Grew Fast Under New Market Pressure in 2016
    Raw Material Suppliers Consolidate  to Become Single Source Suppliers Raw Material Suppliers Consolidate to Become Single Source Suppliers
    Evonik at Offers Solutions for Nearly Every Requirement in the Coatings Market at ECS 2017 Evonik at Offers Solutions for Nearly Every Requirement in the Coatings Market at ECS 2017
    Wacker Polymers to Raise Prices for Dispersions and Dispersible Powders in Europe Wacker Polymers to Raise Prices for Dispersions and Dispersible Powders in Europe
    Jotun Consolidates Passive Fire Protection Coatings Lead with GBP 4.5 Million Investment Jotun Consolidates Passive Fire Protection Coatings Lead with GBP 4.5 Million Investment
    China’s Coatings Industry is on the Brink of Extensive Price Hikes China’s Coatings Industry is on the Brink of Extensive Price Hikes
    Jotun to Increase Prices for Marine, Protective, and Powder Coatings Jotun to Increase Prices for Marine, Protective, and Powder Coatings
    Egypt’s Coatings Market on Recovery Path Egypt’s Coatings Market on Recovery Path
    Coatings Summit 2017 Held in Shanghai Coatings Summit 2017 Held in Shanghai
    Jotun: EU Antifouling Copper Approval will Ensure Continued Efficiency, Savings, Jotun: EU Antifouling Copper Approval will Ensure Continued Efficiency, Savings, 'Eco' Performance
    28 Tikkurila Oyi 28 Tikkurila Oyi

    Related Europe Reports

    • Customization, Digitalization in European Coatings Sector Growing

      Along the coatings value chain, companies are striving to satisfy the individual needs of customers.
      Sean Milmo, European Correspondent 12.11.19

    • Simplification Drives Innovation for Protective and Marine Coatings

      Innovation in protective and marine coatings is being driven by the need for greater simplification with fewer coatings layers and greater reliance on performance data. This was evident at press conferences by Hempel and PPG Industries on the late…
      Sean Milmo, European Correspondent 09.30.19

    • EU Coatings Market Half Year Report

      Europe’s economies are suffering from the impact of a global economic downturn. But for European coatings producers, it is an opportunity to show how well they have been reorganizing themselves to cope with economic pressures. Demand for…
      Sean Milmo, European Correspondent 09.03.19


    • More Europeans Move From DIY to Pros

      More Europeans Move From DIY to Pros

      Instead of opting for DIY, an increasing proportion of home improvers in many European countries are switching to do-it-for-me (DIFM).
      Sean Milmo, European Correspondent 08.09.19

    • AkzoNobel Fuels Innovation with  Paint the Future Competition

      AkzoNobel Fuels Innovation with Paint the Future Competition

      Pressure on coatings producers in Europe to generate a continuous flow of innovative technologies and products has never been more intense. In response to the needs of customers, coatings are becoming more complex with multipurpose functional prop…
      Sean Milmo, European Correspondent 07.03.19

    • European Coatings Show Focuses on Raw Materials

      Europe’s coatings producers are currently focusing on expanding their use of renewables and biological raw materials. But the objective is not just about the need to help tackle climate change. Coatings manufacturers and their suppliers are…
      Sean Milmo, European Correspondent 05.10.19


    • Pigment Business Divestments to Cause Shake-up for European Market

      The top end of Europe’s coatings raw materials sector is poised for a shake-up as a result of two of its leading players planning the divestment of their pigments businesses. BASF revealed in February that it is aiming to sell off its pigmen…
      Sean Milmo, European Correspondent 04.12.19

    • European Color Trends Remain  Uniform Across Sectors

      European Color Trends Remain Uniform Across Sectors

      European trends in color preferences tend eventually to become relatively uniform across different sectors. Colors or color combinations emerging as a favorite in one sector will become or are already prominent in most of the other major sectors &…
      Sean Milmo, European Correspondent 03.08.19

    • R&D in EU Focuses on Climate Change Issues

      R&D in EU Focuses on Climate Change Issues

      Climate change is at the moment setting the R&D priorities for many European producers of coatings and their raw material suppliers.
      Sean Milmo, European Correspondent 02.11.19


    • Outlook for 2019 European Coatings Market

      The one bright spot is that after a time of increasing costs, raw material prices should decline offering opportunities for improved margins.
      Sean Milmo, European Correspondent 01.07.19

    • Product Environmental Footprint Aims to Simplify Labeling of Environmental Performance of Products

      Coatings producers in Europe – and even their customers – have long been skeptical about the benefits of labeling schemes showing the green credentials of coatings and related products. The doubts stem from the profusion in Europe of l…
      Sean Milmo, European Correspondent 12.03.18

    • Nanoparticles Under Regulatory Scrutiny

      The demand for coatings with uniformly sized nanoparticle pigments has been increasing strongly in Europe because of their enhanced colors, resistance and durability. At the same time, however, the European Union has introduced rules to ensure tha…
      Sean Milmo, European Correspondent 11.05.18

    • PPG Hosts Innovation Summit

      The need for innovation in coatings, as well as in its main customer sectors, is more important than ever. Not only is competition in coatings become more intense, particularly in relatively slow growth but high-tech orientated regions like Europe…
      Sean Milmo, European Correspondent 10.03.18

    • First Half of 2018 Proves Challenging for European Coatings Companies

      Coatings companies are trying to offset raw material costs by pushing up thier product prices.
      Sean Milmo, European Correspondent 09.01.18

    • EU Coatings Industry Prepares for Brexit

      The UK’s departure from the European Union, which is expected to take place in March 2019, will pose big problems not only for the country’s sector but also for much of Europe’s coatings industry as well. Brexit could dismantle a…
      Sean Milmo , European Correspondent 08.10.18

    Breaking News
    • Beckers Group Announces Global Price Increase on Coil, Industrial Coatings
    • Evonik, Wynca Celebrate Groundbreaking of New Fumed Silica Plant in Zhenjiang
    • Personnel Changes in Corporate Communications, Government Relations at BASF
    • Palmer Holland Expands Sales Team into Canada
    • Axalta Reports 'Oustanding' Feedback on Award-Winning Voltatex 4224
    View Breaking News >
    CURRENT ISSUE

    December 2019

      View More >
    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Deerland Obtains Certification from Australia’s Therapeutic Goods Administration
    OptiMSM Shown to Improve Hair & Nail Appearance and Condition
    DCC Acquires Contract Manufacturer Ion Laboratories
    Coatings World

    Latest Breaking News From Coatings World

    Beckers Group Announces Global Price Increase on Coil, Industrial Coatings
    Evonik, Wynca Celebrate Groundbreaking of New Fumed Silica Plant in Zhenjiang
    Personnel Changes in Corporate Communications, Government Relations at BASF
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    15-Year Tele-Critical Care Collabration Yields Significant ICU Improvement Results
    Prellis Biologics' New Tool Simplifies Complex Tissue Engineering
    InspireMD's CEO Steps Down
    Contract Pharma

    Latest Breaking News From Contract Pharma

    CatSci Expands Capabilities with Lab Expansion
    Smart Tags on Pills Set to Improve Supply Chain Security and Patient Adherence
    PCI Pharma Services Invests in Tredegar, UK Site
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Time Features 5 Best Beauty Inventions
    CES 2020 Preview - Innovation Award Honorees in Health & Wellness
    Star of E!'s Botched Gets Line Leaping Bunny Certified
    Happi

    Latest Breaking News From Happi

    Birchbox Partners with Buzzfeed
    Coty Strengthens Its Leadership
    Jennifer Garner Joins Virtue Labs
    Ink World

    Latest Breaking News From Ink World

    Smurfit Kappa, Wings for Aid Create Disaster Relief Packaging Solution
    ePac Flexible Packaging Expands into Asia Pacific Market
    United Carton Industries Company Invests in EFI Nozomi Corrugated Printer
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Luminer promotes Heather Bookman to prepress manager
    Materials Exchange launches to solve excess inventory issue
    Mark Andy joins forces with UPM Raflatac
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Simavita Set to License Sensor Technology in EU
    NDC Appoints President
    AATC Adds Two Scholarships
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    TriMed Closes Out FDA Warning Letter
    FDA OKs Shoulder Innovations' Augmented Glenoids for Total Shoulder System
    OrthoGrid Systems Receives FDA 510(k) Clearance for New PhantomMSK Trauma Application
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    SEMI Releases Global Semiconductor Equipment Sales Forecast
    eMagin Corporation Announces Approximately $4.3 Million Order for Military Program
    CPI Supports Smart Food-labeling Project Set to Reduce Food Waste in 2020

    Copyright © 2019 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.