• 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
    The Buyers' Guide

    What Will the Coatings Industry Look Like in 2050?

    The 2023 Protective Additives Directory

    CHINACOAT2023 Heads To Shanghai

    Auto Refinish 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
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    Hempel A/S Celebrates 75-Year Anniversary of Its Owner, the Hempel Foundation

    ROSS Mixers Has Trial Rental Program for R&D Scale Equipment

    CCAI’s 2024 Industrial Finishing Safety Seminar Heads to Minnesota

    PPG Asian Paints Unveils Flagship Center of Cartisan in Pune

    AkzoNobel and Kansai Paint Mutually Agree Not to Proceed with African Transaction
    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

    ROSS Mixers Has Trial Rental Program for R&D Scale Equipment

    PPG Asian Paints Unveils Flagship Center of Cartisan in Pune

    Tnemec Announces Latest Innovation in Anti-Fouling Coatings for Marine Environments

    SRI’s New Paint Provides a Sustainable Passive Cooling Solution

    Miller Paint Selects Mushroom as Its 2024 Color of the Year
    Additives
    Binders
    Pigments
    Solvents

    Advancion Launches Multi-Functional Etheramie for Waterborne Industrial Coatings

    Vink Chemicals Constructs New Biocide Plant at Schwerin Site

    Peninsula Polymers and Westlake Epoxy Expand National Distribution Agreement into Mexico

    BASF Increases Defoamer Capacity at Dilovasi Plant in Turkey

    Lubrizol and Grasim Industries Break Ground on CPVC Resin Plant in India
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Arkema

    Siltech Corporation

    Shepherd Color Company, The

    WAB US Corp

    W. R. Grace & Co.
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    PAINTINDIA 2024

    PCI Powder Coating Week 2024

    Middle East Coatings Show 2024

    American Coatings Show

    RadTech 2024 UV+EB Technology Expo & Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Arkema

    Siltech Corporation

    Shepherd Color Company, The

    WAB US Corp

    W. R. Grace & Co.
    • 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
    • Glossary
    • 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
    China Reports

    Lower Profit Challenges China Coatings Industry

    ...

    Arnold Wang, China Correspondent12.04.17
    Following stable growth of the Chinese economy, the coatings industry in China also produced more coatings in the first half of 2017, with total output reaching 9.6 million tons, a 10.5 percent increase over the same period of 2016. This fast growth was led mainly by quick development in infrastructure, real estate, home furniture and home appliances.

    Total sales for home furniture and home appliances both enjoyed double digit growth in the first six months of 2017. Both export and domestic markets showed positive fast growth in these two industrial categories. However, fast growth in downstream markets did not bring profit increase to coatings producers. As the total coatings output keeps breaking historic records, the profitability of the whole industry is actually decreasing at the same time.

    Tailor made and environment friendly home furniture is the new market trend. The Chinese government has set up four pilot areas which bans new investments on constructing new solvent-based coatings capacities which are less than 10 thousand tons per year. The four areas are Tianjin, Shanghai, Fujian and Guangzhou. 

    For coatings producer, new investments are needed for waste management or VOC control so that they can meet the requirements of new environment regulations and standards. And for downstream customers, this means their coaters need to be renovated so that they can adapt to the use of waterborne coatings or solvent-free coatings. This cost increase is difficult to be transferred fully to end-users because of fierce competition in the market.

    Not only Chinese coatings producers, but also the whole coatings industry worldwide is under pressure from continuous price increase on raw materials. Asia Cuanon’s Q3 financial report shows that the company’s total sales increased by 30.53 percent over the same period of last year. The prices for emulsion, titanium dioxide and PS materials increased by 20.68 percent, 53.17 percent and 34.36 percent respectively in this period. On the contrary, the prices of their PS decoration panel and architecture coatings were either stable or even lower than before.  So their profit for the first three quarters only grew by 4.46 percent over the same period of 2016. Asia Cuanon, which has its stock listed in the market in September, 2017, is a major producer and insulation panels and architecture coatings. The company also recently put their 250 thousand tons per year water borne coatings capacity into production in Chuzhou, Anhui province.

    According to  report released by China National Coatings Industry Association, the whole coatings industry’s profit decreased by 15.1 percent in China in the first half of this year, and 303 coatings companies did not earn any profit, and the number of unprofitable companies increased by 29.5 percent over the first half year of 2016. Reshuffling in the coatings industry will continue and will not stop until most unprofitable coatings companies retreat from the market or merge into other larger companies. But from another angle, the market is witnessing a fast growing period for some large coatings companies because of their easy access to financing and successful market strategies.

    3Trees(SKSHU) achieved 40.68 percent sales increase, and 72.19 percent profit increase in the first night months of 2017. Both their engineering coatings and home decoration coatings segments grew quickly. But sales growth did not bring profitability increase for 3Tress, and their gross margin decreased by 5.4 percent to 40 percent in the first 9 months of 2017 comparing with the same period of 2016. The company signed strategic partnership agreement with Evergrande, with the latter promised to purchase no less than 1 billion yuan architecture coatings in three years. Evergrande is one of the largest real estate developers in China. 3Trees also has inked agreements for constructing new coatings plants in Anhui and Hebei, which, when completed, will create the largest domestic architecture coatings company in China. 

    The waste release fee will be changed to environment protection tax from next year. And the total tax charged for waste release in China is estimated to be 50 billion yuan per year. Each local government will decide their own tax ratio. This change will take the waste control out of administration system and put it into legal jurisdiction, and some provinces such as Guangdong and Guizhou are planning to raise the ratios charged on waste release. Generally speaking, the environmental pressure will be even challenging in the future for coatings companies. This, in another way, encourages merger and acquisitions between coatings companies and develops economy of scale, and pushes those technologies which are lagging behind the market trend to retreat from the market.

    The resolves for the government to tackle environment problems is clear because the public will keep a close eye on the PM2.5 index and the pressure felt by the government is enormous. And it provides both challenges and opportunities for businesses. For example, the electric car industry is booming in China, and in less than half a year hundreds of electric car companies have been established in China, so the market is not short of money, and investors just need good projects, sometime even just a good concept. So although the automotive industry as a whole is growing slower than before, but growth in certain segments like electric car and SUV is leaping forward. In the coatings industry, fast development can be seen in powder coatings and UV cure coatings, both enjoying double digit growth in 2016. 
    Related Searches
    • industrial
    • powder
    • voc
    • coatings
    Suggested For You
    European Coatings Show 2025 European Coatings Show 2025
    New Generation Of Antimicrobial Materials | GERM ARMOR<sup>®</sup> New Generation Of Antimicrobial Materials | GERM ARMOR®
    Asia Pacific Coatings Show 2022 Asia Pacific Coatings Show 2022
    Middle East Coatings Show 2022 Middle East Coatings Show 2022
    Wood Paints and Coatings Market to Surpass $12.3 Billion by 2027: CMI Wood Paints and Coatings Market to Surpass $12.3 Billion by 2027: CMI
    Axalta Updates Financial Guidance Axalta Updates Financial Guidance
    Nippon Paint Marine Registers Spike in Turkish Drydockings Amid Asia Capacity Concerns Nippon Paint Marine Registers Spike in Turkish Drydockings Amid Asia Capacity Concerns
    Protective Coatings Leader Hempel Brings Expertise to the Wind Industry Protective Coatings Leader Hempel Brings Expertise to the Wind Industry
    IFS Coatings Open Warehouse on Canada East Coast IFS Coatings Open Warehouse on Canada East Coast
    Green Seal Launches LEED®-Compliant Paint Certification Green Seal Launches LEED®-Compliant Paint Certification
    ICP Group Adds Chris Pappas to Its Board ICP Group Adds Chris Pappas to Its Board
    ProPhotonix Launches COBRA Cure FX4 UV LED Curing System ProPhotonix Launches COBRA Cure FX4 UV LED Curing System
    Henkel, Ford to Co-Present on Advanced Coatings at SURCAR 2021 Henkel, Ford to Co-Present on Advanced Coatings at SURCAR 2021
    Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates
    2022 Gulf Coatings Show 2022 Gulf Coatings Show

    Related Industry Events

    • European Coatings Show 2025

      European Coatings Show 2025

      ...
      David Savastano 04.06.23

    • New Generation Of Antimicrobial Materials | GERM ARMOR<sup>®</sup>

      New Generation Of Antimicrobial Materials | GERM ARMOR®

      The new generation of antimicrobial materials in GERM ARMOR® allow manufacturers to boost disinfecting properties of paint and coatings products.

    • Asia Pacific Coatings Show 2022

      Asia Pacific Coatings Show 2022

      ...
      12.09.21


    • Middle East Coatings Show 2022

      Middle East Coatings Show 2022

      ...
      12.09.21

    • Breaking News | Market Reports

      Wood Paints and Coatings Market to Surpass $12.3 Billion by 2027: CMI

      The solvent borne segment accounted for 49.2% of the revenue share in 2020.
      09.23.21

    Loading, Please Wait..
    Breaking News
    • Hempel A/S Celebrates 75-Year Anniversary of Its Owner, the Hempel Foundation
    • ROSS Mixers Has Trial Rental Program for R&D Scale Equipment
    • CCAI’s 2024 Industrial Finishing Safety Seminar Heads to Minnesota
    • PPG Asian Paints Unveils Flagship Center of Cartisan in Pune
    • AkzoNobel and Kansai Paint Mutually Agree Not to Proceed with African Transaction
    View Breaking News >
    CURRENT ISSUE

    November/December 2023

      View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Alkemist Announces New Participants in its Transparency Program
    One Hemp Coalition Forms to Advocate for CBD Regulatory Standards
    Earthlight Whole Food Vitamin D Receives Food, Beverage Approval in Brazil
    Coatings World

    Latest Breaking News From Coatings World

    Hempel A/S Celebrates 75-Year Anniversary of Its Owner, the Hempel Foundation
    ROSS Mixers Has Trial Rental Program for R&D Scale Equipment
    CCAI’s 2024 Industrial Finishing Safety Seminar Heads to Minnesota
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Millstone Medical Outsourcing Moves Testing Services into Expanded Facility
    Nordson Medical Expands Easton, PA Operations
    RSNA23: Ricoh & Materialise Partner to Broaden Access to 3D-Printed Patient-Specific Solutions
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Fujirebio, Sysmex Expand Neurodegenerative Diseases Partnership
    Levicept Names Eliot Forster CEO
    Alcanza Names Bob Kinard President and COO
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Anti-Aging Products Market to Hit $60 Billion by 2030
    Wella Company Marks 3 Years of Success—& Aims to Expand
    Most Popular Men’s and Women’s Fragrances of 2023
    Happi

    Latest Breaking News From Happi

    Mizani Miracle Cream Recalled
    Theraderm Unveils Night Cream With Retinol and Peptides
    Annual Candle Day Makes a Lit Return At Bath & Body Works
    Ink World

    Latest Breaking News From Ink World

    Flint Group Highlights EkoCure Dual Cure at Labelexpo Asia 2023
    ROSS Mixers Offers Trial Rental Program for R&D Scale Equipment
    Avient Develops New Black Colorants for Polyester Textiles
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Davis-Standard's headquarters attains ISO 14001 certification
    Abbott Label named AFFLINK preferred supplier
    Flint Group presents EkoCure Dual Cure at Labelexpo Asia 2023
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    ISSA Clean Advocacy Summit and Fly-In Set for April
    Unicharm to Use Recycled Pulp in Adult Pants
    Trützschler Card Clothing Offers Z-Wire
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Anika's Integrity Implant System Makes its O.R. Debut
    Study Shows How a Multimodal Feedback System Can Improve Laser Surgery
    ReWalk Robotics Shows Proof-of-Concept for AI-Powered Exoskeleton
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    GIANCE Project Starts Pioneering Sustainable Graphene-Based Solutions
    SBTi Confirms SCHOTT's Ambitious Carbon Reduction Plans
    HID to Provide Finland with New Driver’s License

    Copyright © 2023 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.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login