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    [title] => Boost of East African Market as Kansai, Sika Expand Footprint
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    [slug] => boost-of-east-african-market-as-kansai-sika-expand-footprint
    [body] => The Eastern Africa coatings and paints market has kicked off 2017 on a high note as two global names in the industry made good their plans to entrench their operations in Ethiopia and Kenya, two of the countries that are enjoying an urbanization and construction boom.

Global specialty chemicals firm Sika AG continued its expansion into growth markets that it started in earnest in 2015 with the opening in February of its concrete admixture production plant in Ethiopia.

“The new factory in Ethiopia is part of the systematic implementation of our Africa strategy,” said Paul Schuler, regional manager for Europe, Middle East and Africa.

“We are playing a pioneering role in setting up local production and this will bring us significant competitive advantage,” he said in a statement.

The opening of the Ethiopia concrete admixture production facility comes a year after the company expanded its production capacity in Africa by opening new factories in Nigeria and Ivory Coast in 2015.

The new admixture production plant precedes the 2015 establishment of a national subsidiary in Ethiopia, the same year a similar one was launched in Tanzania.

Schuler said Sika, which produces the Sika umbrella brand and some 838 Sika product trademarks such as Sikaflex, Sika viscocrete, Sikabond and Sikaflex would ensure the Ethiopian market benefits from “local product formulations that are perfectly adapted to the raw materials and local requirements, as well as from shorter delivery times.”

In its 2015 annual report, Sika, which develops and markets a wide range of admixtures and additives, predicted a rising demand for the products fuelled by a projected increase in “performance requirements placed on concrete and mortar, especially in urban areas and for infrastructure construction.”

In Ethiopia, the concrete admixtures market is likely to be driven in coming days by the increasing rate of urbanization and fast-growing construction sector.

Ethiopia, Sika said, has huge potential because of being “the second biggest economy in sub-Saharan Africa in population terms and fourth biggest in terms of economic output with construction sector set to grow more strongly than other countries in the sub-Saharan region.”

The World Bank estimates Ethiopia urban population will more than double from the 15.2 million in 2012 to 42.3 million in 2037, with analysts estimating the country’s urban population growth rate to be 5.4 percent.

The bank estimates that 70 to 80 percent of the urban population in Ethiopia lives in areas considered slums that lack “durability, adequate space, access to safe water and sanitation or security of tenure.” This has created opportunities for construction of housing to accommodate the growing urban population.

“Ethiopia could be 30 percent urban by as early as 2028 with a tripling of urban population to 42 million by 2032,” the bank said in its ‘Ethiopia Urbanisation Review’ report for 2013.

Opening of the Ethiopia plant is one of the major investment decisions by Sika in the African market after the January 2015, acquisition of the Mozambican company Duro-moza, which manufactures and sells mortar and tile adhesives. Sika said in a statement at the time the “transaction will accelerate Sika Mozambique’s development and market penetration.”

As part of its strategy to expand in Africa and the rest of the world, Sika says some of the businesses it plans to acquire “are usually unable to market their systems worldwide sooner or later proves a barrier to growth, and by acquiring such companies, the Sika Group, as a global player, is able to leverage their full potential.”

Separately, Kansai Plascon Africa Ltd. (KPAL), a subsidiary of Japanese giant Kansai Paints, has announced its acquisition of the entire stake in Sadolin Paints Company Ltd, a leading manufacturer and marketer in Kenya, Tanzania, Uganda, Zanzibar and Uganda.

“The completion of the transaction is subject to regulatory approvals and other customary conditions,” said KPAL in a statement.

“As part of the transaction, the parties have also agreed to separately to investigate the acquisition of Sadolin Paints’ operations in Rwanda,” said KPAL.

Despite Kansai Paints saying in its 2016 annual report that business in Africa deteriorated because of the economic slump in South Africa and neighbouring countries, its African subsidiary said the acquisition of Sadolin Paints “will reinforce KPAL’s leading position in Africa and its presence in East Africa.” The region has a population of about 285 million representing an estimated 24 percent and 9 percent of the total African population and GDP respectively.

Kansai Paints manufactures and markets a wide range of coatings including decorative, industrial, protective and automotive and has a research and development facility in South Africa.

The acquisition comes at a time when Kansai’s performance in the African market appeared sluggish according to the Japanese company’s 2016 annual report.

“Despite continuing sales promotion efforts, sales fell slightly on a local currency basis at a time of weakness in the economies of South Africa and neighboring countries,” the company said in February.

“Investment in sales promotion and other factors put pressure on profits, and substantial currency conversion effects contributed to weak business results,” Kansai said. The company’s sales in Africa for 2015 dropped by 26 percent compared to 2014, to slightly more than $257 million. Kansai estimates the ordinary loss, including goodwill amortization for 2015 at $5.2 million.

Despite Kansai’s decline in earnings in the African market, the company’s entry into East Africa seem to have been timed to coincide with an ongoing infrastructure construction boom in the region. With the recent oil and gas discoveries in Kenya, Uganda and Tanzania, analysts project investment in related infrastructure to be between $60 billion and $70 billion.

Kenya’s construction industry for example has reported good growth in recent times contributing an estimated $2.86 billion to the country’s gross domestic product in 2014, 13.1 percent higher than 2013 according to global research and consultancy firm Oxford Business Group.

“The construction industry’s substantial jump in 2014 made it the best-performing sector that year, owing primarily to an injection of funds for major road works, railway projects and road rehabilitation,” the group said early last year.

With the entry of Kansai Plascon Africa Ltd. into East Africa and the launch of a concrete admixture production plant in Ethiopia, consumers in the region are expected to access a variety of quality coatings and paints products to feed the increasing construction industry at competitive prices.  [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2017-03-21 12:57:00 [updated_at] => 2017-03-17 13:03:19 [last_updated_author] => 142098 [uploaded_by] => 142069 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["243233","240254","244467","235945","237279","248421","239646","235920","236222","247453","245535","246333","239345"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 [contentType] => ContentType Object ( [className] => ContentType [content] => Array ( ) [taxonomy] => Array ( ) [listURL] => [logoUrl] => https: [id] => 2748 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => content_types [tag] => Africa Report [short_tag] => Africa Report [class_name] => [display_view] => [list_view] => [slug] => Africa-Report [box_view] => [ignore_flag] => 0 [image_id] => 0 [layout_id] => 0 [formattedTag] => Africa Report ) [viewURL] => /issues/2017-03-01/view_Africa-Report/boost-of-east-african-market-as-kansai-sika-expand-footprint/ [relatedArticles] => Array ( [0] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 235920 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Automotive Announces Sponsorship at 2017 North American International Auto Show [short_title] => [summary] => [slug] => sika-automotive-announces-sponsorship-at-2017-north-american-international-auto-show [body] => Sika Automotive will be a sponsor of the 2017 North American International Auto show, January 9-22, at Cobo Center, in Detroit, Michigan.  As part of its involvement with NAIAS 2017 as a hospitality sponsor, Sika will also be holding an exclusive invitation-only customer event, concurrent with Industry Preview Day on January 11. “Sika Innovations 2017” will feature industry-leading technologies used for automotive sealing, bonding, damping and reinforcing applications, as well as overviews of current and future technology paths to vehicle lightweighting and mixed-material bonding. 

Sika products and expertise contribute to the assembly and performance of Lighter, Stronger, Safer, Quieter and Greener vehicles.

“Sika is excited to return to the North American International Auto Show  for the third consecutive year as a hospitality sponsor”,  says Greg Moran, Head of Global Automotive Marketing  for Sika.  “NAIAS is an excellent forum to launch our latest and greatest adhesive, sealant, acoustic and reinforcement performance enhancement contributions to the Automotive sector, alongside the many new vehicle model releases that benefit from Sika technologies”. [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2016-12-14 08:02:00 [updated_at] => 2016-12-15 08:03:54 [last_updated_author] => 147600 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["237219","239177","243233","240254","244467","235945","237279","248421","239646","241888","235684","236959","237208","246557"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [1] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 235945 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Acquires RMax Operating, LLC in US, Further Strengthens N. American Market Position [short_title] => [summary] => [slug] => sika-acquires-rmax-operating-llc-in-us-further-strengthens-n-american-market-position [body] => Sika has agreed to acquire Rmax Operating, LLC, a US-based market leader in the production of polyiso insulation products for complete Building Envelope solutions (roofing and wall systems). The acquisition brings technology and know-how that will accelerate Sika's growth and drive innovation in the North American market via the strong synergies between the companies. Rmax generated sales in excess of USD 75 million in 2016. The transaction is subject to clearance by anti-trust authorities.

With headquarters in Dallas, Texas, Rmax has been a market leader in polyisocyanurate insulation technology for over 37 years. At its three strategic production locations (Dallas, Texas; Greer, South Carolina; and Fernley, Nevada) Rmax produces insulation products and accessories that are highly regarded and widely specified for both commerical and residential wall and roof applications throughout the US. In particular, its innovations in continuous insulation for better Building Envelopes are at the forefront of the industry, and have many synergies with Sika technologies for walls and facades. Currently Sika USA purchases insulation products from third party suppliers to include in its solutions for Roofing and Building Envelopes. With this acquisition it will now be possible to benefit from in-house production.

Christoph Ganz, Regional Manager North America: "The acquisition of Rmax fits perfectly with Sika's growth strategy in North America, further strengthening our already fast-growing Building Systems in Roofing, Sealants and Waterproofing. Rmax brings us a proven industry leader, with strong innovations for  Building Envelope applications, along with manufacturing expertise for wall and roofing insulation. We proudly welcome the Rmax employees to the Sika team and are excited about growing our business together." [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2016-12-15 09:10:00 [updated_at] => 2016-12-15 09:12:03 [last_updated_author] => 147600 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["243233","240254","244467","237279","248421","239646","235920","241888","249129","236678","240736","238078","236962","248865","249127","239506","239796","239702","240740"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [2] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 236222 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => 2017-04-01 [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Opens Production Facility in Ethiopia [short_title] => [summary] => [slug] => sika-opens-production-facility-in-ethiopia [body] => Approximately one year after its national subsidiary was founded in Ethiopia, Sika is opening the first concrete admixture production plant in the country. Sika is the first-ever international company to manufacture its products locally, and the move creates a base from which to build up business activities in the growth market, which has a total population of approximately 100 million.

Paul Schuler, Regional Manager EMEA: "The new factory in Ethiopia is part of the systematic implementation of our Africa strategy. We are playing a pioneering role in setting up local production, and this will bring us significant competitive advantages. Customers will benefit from local product formulations that are perfectly adapted to the raw materials and local requirements, as well as from shorter delivery times. This step creates a foundation for further growth in this promising market."

By establishing its factory in Addis Ababa Sika is positioning itself in a megacity. Ethiopia is the second biggest economy in sub-Saharan Africa in population terms, and the fourth biggest in terms of economic output. One of the factors benefiting the construction sector is the government's Growth and Transformation Plan. According to forecasts, construction is set to grow by approximately 11% annually in the period up to 2025 and thus more strongly than other countries in the sub-Saharan region.  [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2016-12-20 12:16:00 [updated_at] => 2017-03-30 12:01:17 [last_updated_author] => 142069 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["248421","247453","241888","245535","237279","242226","239626"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [3] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 237279 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => 2017-05-01 [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Acquires Leading Austrian Manufacturer of Waterproofing Systems [short_title] => [summary] => [slug] => sika-acquires-leading-austrian-manufacturer-of-waterproofing-systems [body] => Sika is acquiring Bitbau Dörr, a leading waterproofing system manufacturer, headquartered in Innsbruck, Austria. The transaction is subject to approval by the Austrian competition authority. The product portfolio includes complete waterproofing systems for roofs, buildings and civil engineering applications. In the past business year, the company with its 85-strong staff recorded sales of CHF 50 million.

The acquisition of Bitbau Dörr GmbH will enable Sika to expand its product portfolio. Both companies will benefit from growth opportunities resulting from expanded distribution channels and a broader customer base. In future, Sika will be able to offer its customers a wider range of durable, high-grade waterproofing systems based on polymer-modified bitumen membranes.

Since the family-owned company was founded 150 years ago, Bitbau Dörr has evolved into a highly respected provider of waterproofing systems. Its quality products are used on flat and pitched roofs, bridges and parking decks, and in civil engineering works. The company's headquarters, with central warehouse and production facilities, is located in Innsbruck. With three further distribution sites in Vienna, Graz and Linz, Bitbau Dörr ensures nationwide coverage in Austria and also exports its high-class products to neighboring countries.

Paul Schuler, Regional Manager EMEA: "Thanks to our acquisition of the leading Austrian manufacturer of bitumen-based construction products and complete waterproofing solutions, Sika's customers will benefit from a broader choice of products. On account of its central location, highly skilled research and development unit, and expandable production capacity, Sika will establish the new site as its Central European center of excellence for bitumen waterproofing systems. We would like to welcome all Bitbau Dörr employees to Sika and look forward to working together in expanding our joint business operations." [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2017-01-11 08:42:00 [updated_at] => 2017-04-25 13:30:49 [last_updated_author] => 142069 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["243233","240254","244467","235945","248421","239646","235920","241888","236222","247453","245535","235936","235706","242027","241369","238668","247662","242919","243754","236425"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [4] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 239345 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2748 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => 2017-02-01 [author_name] => {"name":"Shem Oirere","title":"Africa Correspondent"} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => 0 [slider_image_id] => 141955 [banner_image] => 0 [title] => Egypt’s Coatings Market on Recovery Path [short_title] => [summary] => [slug] => egypts-coatings-market-on-recovery-path [body] => The growth prospects for Egypt’s paints and coatings market look promising in the short and medium term after the country steered itself out of the 2011 chaotic political revolution and managed to woo private sector investments in the real estate, industrial and general infrastructure segments.

The promulgation of a new constitution and successful 2014 and 2015 presidential and parliamentary elections respectively has helped restore some degree of confidence in the country’s economy and the largest manufacturer and consumer of paints and coatings in North Africa.

Despite the demand for paints and coatings having declined in 2011 and soon after because of what some analysts said was the estimated 7 percent decline in real estate investments to $4 billion, market experts say the industry is up and catching up fast.

“Domestic demand for paints and coatings is expected to grow from $142 million in 2013 to $552 million in 2018 at the compound annual growth rate (CAGR) of 4.5 percent,” said Richard Weissenberg, business unit leader for chemicals, materials and food at Frost & Sullivan in an interview with Coatings World.

He said Egypt’s growing population, now estimated at 93 million and growing at 2 million every year, and higher per capita income that is expected to be $2772 by the end of this year, are fuelling the expansion of the paints and coatings consuming sectors such as housing and other amenities.

Some investors have already expressed interest in tapping into the increasing demand for housing. For example, in 2014 Egypt signed an agreement with United Arab Emirates-based contractor Arabtec to build one million homes across the country over a 10-year period at a cost of $40 billion.

In addition, the government has approved a plan to build a new administrative city for Egypt over a seven-year period at a cost of $45 billion. The project will provide jobs to one million people and provide housing to at least five million others. These are examples of major projects that are expected to keep high the demand for paints and coatings in Egypt.

Weissenberg said although there is no confirmation of the value of the paints and coatings market for 2016, the market was valued at $435 million in 2013, dominated by decorative paints that held 74 percent of the market share. Other segments were wood coatings 10 percent, industrial protective paints 9 percent, automotive coatings 4 percent and marine coatings 3 percent. (See chart 1)

He said currently Egypt is the largest manufacture, consumer and exporter of decorative paints in North Africa. The decorative paints segment, Weissenberg said, has been influenced by the historical preferences of the Egyptians for things white and lighter.

“Historically, the Egyptian paints industry has been favorable towards whites and lighter shades although in recent years there has been a swift towards bright,” said Weissenberg.

The tinting segment of the decorative paints grew from $30 million in 2008 to $57 million in 2013 and the segment is “expected to continue strong growth in the coming years.”

There has also been a new trend in the Egyptian coatings market is the steady transition from alkyd paints towards emulsion paints.

“Alkyd paints were preferred by the applicators until 1990 due to their perceived protective strength and durability but with the emergence of acrylic emulsions, alkyds are losing their presence gradually,” he said.

A review of the decorative paints markets show that the emulsion paints take up 51 percent of Egypt’s decorative paints market share while tinting and alkyd (synthetic) paints take up 18 percent and 31 percent respectively.

A large share of raw materials for the making of paints and coatings, up to 55 percent according to some estimates, are imported mainly from Germany and South Korea although there is some local production for the materials such as linseed oil and solvents.
The importation and utilization of these raw materials for the decorative paints is done by many companies in the market, which is currently dominated by PACHIN, Jotun, Sipes and KAPCI Coatings. These companies supply their paints through distribution network to institutional projects and to retailers.

PACHIN has the largest share of Egypt’s decorative paints market according to 2013 statistics at 25.6 percent. Sipes and GLC had a 17.2 percent and 13.8 percent share respectively while SCIB & KAPCI coatings combined had 8.6 percent. Jotun and Mido Paints had 8.3 percent and 4.1 percent respectively while all other companies had a combined share of 22.4 percent. The other companies include A- Plus for Car Paints Factory, Alexandria Co. for Paints & Chemicals (Velvet Paints), Al-Haram Paints Factory, Al-Saad for Mixing Paints, Colorama for Paints & Modern Building Chemicals Co, Egypt Paints, Jordanian for Chemical Industries Co, Modern Chemical Industries Co, Modern Co. for Paints, Nile Co. for Paints & Coatings, Raghdan Paints Co and Technicolor Factory. (See chart 2)

Products manufactured by these companies are supplied to distributors, who sometimes meet the demand by coloring centers and also project customers.

“These distributors are further connected to sub-wholesalers that supply the products in a given area,” said Weissenberg.

A recent emerging trend is where paints and coatings for bulk projects such as housing, tourism and government infrastructure initiatives are being handled by “paint manufacturers directly, while many real estate projects are handled by regional distributors.”
However, the individual customers across the market are generally taken care of by retail stores or local paint shops.

“These are multi-brand stores with small quantum of sale,” explained Weissenberg.

“Only a few distributors and super stockists cover the market,” said Weissenberg, adding that the distributors “stock and distribute the products of two or three paint companies.”

Tinting/Coloring Centers is also a key segment in Egypt’s decorative paints market. The centers are exclusive outlets owned by franchisees of paint companies and which give customers opportunity to choose and create their own shades on site before they are formulated in-store using a tinting machine.

Although Egypt’s 2011 political turmoil is now history, the paints and coatings industry continue to face some challenges which have hampered the full exploitation of the country’s market potential.

The World Bank says the Egyptian economy is still reeling from the low international (cash) reserves, a not-so-good investment climate, and the unfavorable external conditions such as the sluggish economic recovery in Europe and lower international oil prices which have eaten into the Egyptian remittances especially from the Gulf region.

SCIB Paints regional head-Middle East and Egypt Manish Mehra said recently “the prospects in the medium term are not very attractive” for the paints and coatings industry in Egypt according to a report by MarcoPolis LLC, a Paris-based international online publishing company.

“There has been a crisis in terms of availability of U.S. dollars to purchase raw materials and most of the raw materials are imported,” he said. It is estimated that up to 55 percent of raw materials needed by Egypt’s paints and coatings industry are imported.

“All the companies have to import raw materials and in the last two years the availability of foreign currency has become an issue (leading) to pressure on the bottom line of all companies (and) that is why new investments which will be made by companies will be under pressure,” said Mehra.

With the progress made on the political front and which has had a positive infectious effect on the economy, Egypt is likely to remain the top paints and coatings market in North Africa in the near future.  [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2017-02-13 12:27:00 [updated_at] => 2017-02-08 12:30:03 [last_updated_author] => 142098 [uploaded_by] => 142069 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["236435","241411","235248","243424","241224","246333","241888","237566","237565","249359","238506","241685","243564","249383","240868","241961","237126"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) ) [relatedContent] => Array ( [0] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 235920 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Automotive Announces Sponsorship at 2017 North American International Auto Show [short_title] => [summary] => [slug] => sika-automotive-announces-sponsorship-at-2017-north-american-international-auto-show [body] => Sika Automotive will be a sponsor of the 2017 North American International Auto show, January 9-22, at Cobo Center, in Detroit, Michigan.  As part of its involvement with NAIAS 2017 as a hospitality sponsor, Sika will also be holding an exclusive invitation-only customer event, concurrent with Industry Preview Day on January 11. “Sika Innovations 2017” will feature industry-leading technologies used for automotive sealing, bonding, damping and reinforcing applications, as well as overviews of current and future technology paths to vehicle lightweighting and mixed-material bonding. 

Sika products and expertise contribute to the assembly and performance of Lighter, Stronger, Safer, Quieter and Greener vehicles.

“Sika is excited to return to the North American International Auto Show  for the third consecutive year as a hospitality sponsor”,  says Greg Moran, Head of Global Automotive Marketing  for Sika.  “NAIAS is an excellent forum to launch our latest and greatest adhesive, sealant, acoustic and reinforcement performance enhancement contributions to the Automotive sector, alongside the many new vehicle model releases that benefit from Sika technologies”. [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2016-12-14 08:02:00 [updated_at] => 2016-12-15 08:03:54 [last_updated_author] => 147600 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["237219","239177","243233","240254","244467","235945","237279","248421","239646","241888","235684","236959","237208","246557"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [1] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 235945 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Acquires RMax Operating, LLC in US, Further Strengthens N. American Market Position [short_title] => [summary] => [slug] => sika-acquires-rmax-operating-llc-in-us-further-strengthens-n-american-market-position [body] => Sika has agreed to acquire Rmax Operating, LLC, a US-based market leader in the production of polyiso insulation products for complete Building Envelope solutions (roofing and wall systems). The acquisition brings technology and know-how that will accelerate Sika's growth and drive innovation in the North American market via the strong synergies between the companies. Rmax generated sales in excess of USD 75 million in 2016. The transaction is subject to clearance by anti-trust authorities.

With headquarters in Dallas, Texas, Rmax has been a market leader in polyisocyanurate insulation technology for over 37 years. At its three strategic production locations (Dallas, Texas; Greer, South Carolina; and Fernley, Nevada) Rmax produces insulation products and accessories that are highly regarded and widely specified for both commerical and residential wall and roof applications throughout the US. In particular, its innovations in continuous insulation for better Building Envelopes are at the forefront of the industry, and have many synergies with Sika technologies for walls and facades. Currently Sika USA purchases insulation products from third party suppliers to include in its solutions for Roofing and Building Envelopes. With this acquisition it will now be possible to benefit from in-house production.

Christoph Ganz, Regional Manager North America: "The acquisition of Rmax fits perfectly with Sika's growth strategy in North America, further strengthening our already fast-growing Building Systems in Roofing, Sealants and Waterproofing. Rmax brings us a proven industry leader, with strong innovations for  Building Envelope applications, along with manufacturing expertise for wall and roofing insulation. We proudly welcome the Rmax employees to the Sika team and are excited about growing our business together." [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2016-12-15 09:10:00 [updated_at] => 2016-12-15 09:12:03 [last_updated_author] => 147600 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["243233","240254","244467","237279","248421","239646","235920","241888","249129","236678","240736","238078","236962","248865","249127","239506","239796","239702","240740"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [2] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 236222 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => 2017-04-01 [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Opens Production Facility in Ethiopia [short_title] => [summary] => [slug] => sika-opens-production-facility-in-ethiopia [body] => Approximately one year after its national subsidiary was founded in Ethiopia, Sika is opening the first concrete admixture production plant in the country. Sika is the first-ever international company to manufacture its products locally, and the move creates a base from which to build up business activities in the growth market, which has a total population of approximately 100 million.

Paul Schuler, Regional Manager EMEA: "The new factory in Ethiopia is part of the systematic implementation of our Africa strategy. We are playing a pioneering role in setting up local production, and this will bring us significant competitive advantages. Customers will benefit from local product formulations that are perfectly adapted to the raw materials and local requirements, as well as from shorter delivery times. This step creates a foundation for further growth in this promising market."

By establishing its factory in Addis Ababa Sika is positioning itself in a megacity. Ethiopia is the second biggest economy in sub-Saharan Africa in population terms, and the fourth biggest in terms of economic output. One of the factors benefiting the construction sector is the government's Growth and Transformation Plan. According to forecasts, construction is set to grow by approximately 11% annually in the period up to 2025 and thus more strongly than other countries in the sub-Saharan region.  [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2016-12-20 12:16:00 [updated_at] => 2017-03-30 12:01:17 [last_updated_author] => 142069 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["248421","247453","241888","245535","237279","242226","239626"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [3] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 237279 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2487 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => 2017-05-01 [author_name] => {"name":"","title":""} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => [slider_image_id] => [banner_image] => 0 [title] => Sika Acquires Leading Austrian Manufacturer of Waterproofing Systems [short_title] => [summary] => [slug] => sika-acquires-leading-austrian-manufacturer-of-waterproofing-systems [body] => Sika is acquiring Bitbau Dörr, a leading waterproofing system manufacturer, headquartered in Innsbruck, Austria. The transaction is subject to approval by the Austrian competition authority. The product portfolio includes complete waterproofing systems for roofs, buildings and civil engineering applications. In the past business year, the company with its 85-strong staff recorded sales of CHF 50 million.

The acquisition of Bitbau Dörr GmbH will enable Sika to expand its product portfolio. Both companies will benefit from growth opportunities resulting from expanded distribution channels and a broader customer base. In future, Sika will be able to offer its customers a wider range of durable, high-grade waterproofing systems based on polymer-modified bitumen membranes.

Since the family-owned company was founded 150 years ago, Bitbau Dörr has evolved into a highly respected provider of waterproofing systems. Its quality products are used on flat and pitched roofs, bridges and parking decks, and in civil engineering works. The company's headquarters, with central warehouse and production facilities, is located in Innsbruck. With three further distribution sites in Vienna, Graz and Linz, Bitbau Dörr ensures nationwide coverage in Austria and also exports its high-class products to neighboring countries.

Paul Schuler, Regional Manager EMEA: "Thanks to our acquisition of the leading Austrian manufacturer of bitumen-based construction products and complete waterproofing solutions, Sika's customers will benefit from a broader choice of products. On account of its central location, highly skilled research and development unit, and expandable production capacity, Sika will establish the new site as its Central European center of excellence for bitumen waterproofing systems. We would like to welcome all Bitbau Dörr employees to Sika and look forward to working together in expanding our joint business operations." [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2017-01-11 08:42:00 [updated_at] => 2017-04-25 13:30:49 [last_updated_author] => 142069 [uploaded_by] => 147600 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["243233","240254","244467","235945","248421","239646","235920","241888","236222","247453","245535","235936","235706","242027","241369","238668","247662","242919","243754","236425"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) [4] => Content Object ( [className] => Content [contentLinks] => Array ( ) [belongsTo] => [contentIssue] => [id] => 239345 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => contents [content_type_id] => 2748 [resource_id] => 0 [author_id] => 0 [primary_issue_slug] => 2017-02-01 [author_name] => {"name":"Shem Oirere","title":"Africa Correspondent"} [magazine_id] => 5 [layout_id] => 0 [primary_image] => 0 [primary_image_old] => 0 [slider_image_id] => 141955 [banner_image] => 0 [title] => Egypt’s Coatings Market on Recovery Path [short_title] => [summary] => [slug] => egypts-coatings-market-on-recovery-path [body] => The growth prospects for Egypt’s paints and coatings market look promising in the short and medium term after the country steered itself out of the 2011 chaotic political revolution and managed to woo private sector investments in the real estate, industrial and general infrastructure segments.

The promulgation of a new constitution and successful 2014 and 2015 presidential and parliamentary elections respectively has helped restore some degree of confidence in the country’s economy and the largest manufacturer and consumer of paints and coatings in North Africa.

Despite the demand for paints and coatings having declined in 2011 and soon after because of what some analysts said was the estimated 7 percent decline in real estate investments to $4 billion, market experts say the industry is up and catching up fast.

“Domestic demand for paints and coatings is expected to grow from $142 million in 2013 to $552 million in 2018 at the compound annual growth rate (CAGR) of 4.5 percent,” said Richard Weissenberg, business unit leader for chemicals, materials and food at Frost & Sullivan in an interview with Coatings World.

He said Egypt’s growing population, now estimated at 93 million and growing at 2 million every year, and higher per capita income that is expected to be $2772 by the end of this year, are fuelling the expansion of the paints and coatings consuming sectors such as housing and other amenities.

Some investors have already expressed interest in tapping into the increasing demand for housing. For example, in 2014 Egypt signed an agreement with United Arab Emirates-based contractor Arabtec to build one million homes across the country over a 10-year period at a cost of $40 billion.

In addition, the government has approved a plan to build a new administrative city for Egypt over a seven-year period at a cost of $45 billion. The project will provide jobs to one million people and provide housing to at least five million others. These are examples of major projects that are expected to keep high the demand for paints and coatings in Egypt.

Weissenberg said although there is no confirmation of the value of the paints and coatings market for 2016, the market was valued at $435 million in 2013, dominated by decorative paints that held 74 percent of the market share. Other segments were wood coatings 10 percent, industrial protective paints 9 percent, automotive coatings 4 percent and marine coatings 3 percent. (See chart 1)

He said currently Egypt is the largest manufacture, consumer and exporter of decorative paints in North Africa. The decorative paints segment, Weissenberg said, has been influenced by the historical preferences of the Egyptians for things white and lighter.

“Historically, the Egyptian paints industry has been favorable towards whites and lighter shades although in recent years there has been a swift towards bright,” said Weissenberg.

The tinting segment of the decorative paints grew from $30 million in 2008 to $57 million in 2013 and the segment is “expected to continue strong growth in the coming years.”

There has also been a new trend in the Egyptian coatings market is the steady transition from alkyd paints towards emulsion paints.

“Alkyd paints were preferred by the applicators until 1990 due to their perceived protective strength and durability but with the emergence of acrylic emulsions, alkyds are losing their presence gradually,” he said.

A review of the decorative paints markets show that the emulsion paints take up 51 percent of Egypt’s decorative paints market share while tinting and alkyd (synthetic) paints take up 18 percent and 31 percent respectively.

A large share of raw materials for the making of paints and coatings, up to 55 percent according to some estimates, are imported mainly from Germany and South Korea although there is some local production for the materials such as linseed oil and solvents.
The importation and utilization of these raw materials for the decorative paints is done by many companies in the market, which is currently dominated by PACHIN, Jotun, Sipes and KAPCI Coatings. These companies supply their paints through distribution network to institutional projects and to retailers.

PACHIN has the largest share of Egypt’s decorative paints market according to 2013 statistics at 25.6 percent. Sipes and GLC had a 17.2 percent and 13.8 percent share respectively while SCIB & KAPCI coatings combined had 8.6 percent. Jotun and Mido Paints had 8.3 percent and 4.1 percent respectively while all other companies had a combined share of 22.4 percent. The other companies include A- Plus for Car Paints Factory, Alexandria Co. for Paints & Chemicals (Velvet Paints), Al-Haram Paints Factory, Al-Saad for Mixing Paints, Colorama for Paints & Modern Building Chemicals Co, Egypt Paints, Jordanian for Chemical Industries Co, Modern Chemical Industries Co, Modern Co. for Paints, Nile Co. for Paints & Coatings, Raghdan Paints Co and Technicolor Factory. (See chart 2)

Products manufactured by these companies are supplied to distributors, who sometimes meet the demand by coloring centers and also project customers.

“These distributors are further connected to sub-wholesalers that supply the products in a given area,” said Weissenberg.

A recent emerging trend is where paints and coatings for bulk projects such as housing, tourism and government infrastructure initiatives are being handled by “paint manufacturers directly, while many real estate projects are handled by regional distributors.”
However, the individual customers across the market are generally taken care of by retail stores or local paint shops.

“These are multi-brand stores with small quantum of sale,” explained Weissenberg.

“Only a few distributors and super stockists cover the market,” said Weissenberg, adding that the distributors “stock and distribute the products of two or three paint companies.”

Tinting/Coloring Centers is also a key segment in Egypt’s decorative paints market. The centers are exclusive outlets owned by franchisees of paint companies and which give customers opportunity to choose and create their own shades on site before they are formulated in-store using a tinting machine.

Although Egypt’s 2011 political turmoil is now history, the paints and coatings industry continue to face some challenges which have hampered the full exploitation of the country’s market potential.

The World Bank says the Egyptian economy is still reeling from the low international (cash) reserves, a not-so-good investment climate, and the unfavorable external conditions such as the sluggish economic recovery in Europe and lower international oil prices which have eaten into the Egyptian remittances especially from the Gulf region.

SCIB Paints regional head-Middle East and Egypt Manish Mehra said recently “the prospects in the medium term are not very attractive” for the paints and coatings industry in Egypt according to a report by MarcoPolis LLC, a Paris-based international online publishing company.

“There has been a crisis in terms of availability of U.S. dollars to purchase raw materials and most of the raw materials are imported,” he said. It is estimated that up to 55 percent of raw materials needed by Egypt’s paints and coatings industry are imported.

“All the companies have to import raw materials and in the last two years the availability of foreign currency has become an issue (leading) to pressure on the bottom line of all companies (and) that is why new investments which will be made by companies will be under pressure,” said Mehra.

With the progress made on the political front and which has had a positive infectious effect on the economy, Egypt is likely to remain the top paints and coatings market in North Africa in the near future.  [views] => 0 [published] => 1 [status] => 3 [priority] => 0 [publish_date] => 2017-02-13 12:27:00 [updated_at] => 2017-02-08 12:30:03 [last_updated_author] => 142098 [uploaded_by] => 142069 [user_role_id] => 0 [custom_fields] => [] [custom_fields_old] => [splitcontent] => 1 [content_url] => [related_content_ids] => ["236435","241411","235248","243424","241224","246333","241888","237566","237565","249359","238506","241685","243564","249383","240868","241961","237126"] [is_show_company_name] => [created_at] => 2019-04-09 04:36:23 ) ) [contentTaxonomy_knowledge-center] => Array ( ) [relatedSearches] => Array ( [0] => Taxonomy Object ( [className] => Taxonomy [id] => 56044 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => taxonomy [taxonomy_tag] => industrial ) [1] => Taxonomy Object ( [className] => Taxonomy [id] => 56575 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => taxonomy [taxonomy_tag] => paints ) [2] => Taxonomy Object ( [className] => Taxonomy [id] => 56576 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => taxonomy [taxonomy_tag] => coatings ) ) [formattedTitle] => Boost Of East African Market As Kansai, Sika Expand Footprint [taxonomy_keywords] => Array ( [0] => Taxonomy Object ( [className] => Taxonomy [id] => 56044 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => taxonomy [tag] => industrial [slug] => industrial [child_of] => 54554 ) [1] => Taxonomy Object ( [className] => Taxonomy [id] => 56575 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => taxonomy [tag] => paints [slug] => paints [child_of] => 54554 ) [2] => Taxonomy Object ( [className] => Taxonomy [id] => 56576 [pageNumber] => [offset] => [totalPages] => [last_query] => [last_sql] => [show_errors] => 1 [databaseServer] => Array ( [key] => master [host] => 172.24.16.232 [user] => rodpub_beta [pass] => MvQQzhse92k58yA [db] => rodpub_beta ) [tableName] => taxonomy [tag] => coatings [slug] => coatings [child_of] => 54554 ) ) )