Albin George, Strategic Consultant, IndustryARC02.13.17
Regulations have a significant impact on the coatings industry. Potential changes in regulations always create a level of uncertainty throughout the entire value chain, and throughout the world today, raw material producers, formulators, channel partners, and ultimately end users can be affected by different regulatory changes occurring in different geographic regions.
In China, concerns about smog and outdoor air quality are driving the development of more stringent regulations on the emissions and VOC content in coatings and refinishes (automotive). Manufacturers are now subject to a 5% tax for VOCs in excess of approximately 400 g/l. Such regulations are expected to lead to a tremendous shift in technologies from low-solids, solvent-based coatings to high-solids solventborne and waterborne technologies and result in increased capital costs for equipment upgrades and ultimately higher-cost coatings. On the positive side, the switch to waterborne technology has created exciting innovation opportunities for manufacturers of resins, additives and pigments. For instance, Sun Chemical is focusing its research and development efforts on expanding its metallic pigments and ot
In China, concerns about smog and outdoor air quality are driving the development of more stringent regulations on the emissions and VOC content in coatings and refinishes (automotive). Manufacturers are now subject to a 5% tax for VOCs in excess of approximately 400 g/l. Such regulations are expected to lead to a tremendous shift in technologies from low-solids, solvent-based coatings to high-solids solventborne and waterborne technologies and result in increased capital costs for equipment upgrades and ultimately higher-cost coatings. On the positive side, the switch to waterborne technology has created exciting innovation opportunities for manufacturers of resins, additives and pigments. For instance, Sun Chemical is focusing its research and development efforts on expanding its metallic pigments and ot
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