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State of the Brazil paint and coatings industry
FOCUS Rup 43.4 bn in FY 2015-2016. Net profits increased by over 25% but were not comparable year-on-year. Nevertheless, the figures came in at Rup 4.4 bn and Rup 3.5 bn in FY 2016-2017 and FY 2015-2016, respectively. Consolidated revenues/incomes jumped by 8.2% to Rup 51.0 bn from Rup 47.1 bn, while net profits expanded by 27.8% to Rup 4.7 bn from Rup 3.7 bn. Meanwhile, Kansai Nerolac recorded good top-line growth partially offset by tax and an exceptional profit registered in the comparable period. Gross sales/income rose to Rup 49.3 bn in 2016-2017 from Rup 46.0 bn in 2015-2016, whereas net profits declined to Rup 5.0 bn from Rup 8.9 bn.
Original Source: APCJ, Asia Pacific Coatings Journal, Aug-Sep 2017, 30 (4), 16,18 (Website: http://www. asiapacificcoatingsjournal.com/), Copyright dmg events 2017.
Automotive industry boom to fuel Africa’s paints and coatings market The African paints and coatings market is currently driven by the fast-expanding construction industry. The growth in the region’s automotive sector could contribute on the long-term increase of its decorative and industrial product volumes. Crown Paints, Sadolin Uganda, Goldstar and Insignia are some of the regional paints and coatings companies that led the African automotive market with various products such as primers, fast-dry synthetics and thinners. It is anticipated that demand for automotive paints and coatings will grow, driven by the expected increase in vehicle numbers in Kenya, Algeria, Nigeria and Ethiopia. The African automotive market is also forecast to move from solvent borne products to powder coatings to decrease emissions and encourage efficient fuel consumption. Decorative paints and coatings presently represent over 80% of the total market in Tanzania and Kenya. Tanzania is growing by 6.2% in the decorative paints and coatings segment, while Kenya is increasing by 7%. By 2020, the decorative paints and coatings market in Tanzania and Kenya is expected to post a CAGR of 6.7%. With $38.9 M share, Crown Paints led the East African decorative paints and coatings market. The other top market players are Basco Paints (with 19.8% market share), Insignia Ltd (15.4%), Sadolin Paints (12.5%) and Goldstar (7.9%). The region’s smaller suppliers hold a cumulative share of 5.4%. Production volumes of the decorative paints and coatings in Tanzania and Kenya are forecast to reach almost 60 M L and 91.5 M L in 2017 and 2020, respectively. In 2015, Kenya accounted for 69.1% and 30.9% of the water- and solvent-based paints markets, respectively. Tanzania represented 51.3% and 48.7% of the water- and solvent-based paints markets, respectively.
Original Source: Coatings World, Aug 2017, 22 (8), 27-28 (Website: http://www.coatingsworld. com), Copyright Rodman Media 2017.
October 2017
ON
POWDER
State of the Brazil paint and coatings industry The most recent report by ChemQuest Group, entitled “Global Paint and Coatings Industry Market Analysis (2015-2020)”, showed the countries of Latin America collectively account for around 8% of volume and 7% of value of the total global coatings market in 2015. Brazil, Argentina, Mexico and Colombia represent about 80% of the total coatings demand. In 2015, coatings sales in Latin America reached $9.9 bn, with volume of around 3.5 bn L. Over the last five years, volume and value have increased by an average rate of 2.4%/y and 2.5%/y, respectively. Brazil makes up 31% and 38% of its value and volume, respectively, for the total Latin American coatings market. The country’s volume is rising by just 0.1%/y, while its value is decreasing by 2.9%/y. Paint and coatings demand in Latin America slowed down in 2016 because the regional economy fell by 1.1%. However, it is predicted that the regional economy will post a 1.3% real growth in 2017. Investment and private consumption in South America declined by 9.9% and 2.3%, respectively. Private consumption and investment in Central America rose by 3.0% and 1.9%, respectively. BASF, AkzoNobel, PPG, Axalta, Sherwin-Williams, Valspar, Tri-Color, Iquine, Qroma, GrupoOrbis and Sinteplast are of the main players in Latin America. Gestamp will launch its new facility in Betim, Minas Gerais State, Brazil to supply the domestic needs of Fiat Chrysler. The new plant is the firm’s seventh project in the country. Axalta has launched new colours for the Cormax line at reasonable prices. In 2016, AkzoNobel introduced a new low-VOC wall paint, called Coralar. Sherwin-Williams has unveiled Design, SuperPaint, Classic and Spazio paint lines, which are marketed exclusively through its company-operated stores and dedicated dealers. Pie graphs show the share of Latin America in the global coatings value ($141 bn) and global coatings volume ($41 bn L) in 2015. A bar graph displays the region distribution by value and volume of Latin American coatings in 2015. The remaining two bar graphs present the Latin American coatings twoyear volume and value forecasted by country in 2010, 2015 and 2017.
Original Source: Coatings World, Aug 2017, 22 (8), 54-55, (Website: http://www. coatingsworld.com), Copyright Rodman Media 2017.
Recovery investment to boost Peruvian economy The Peruvian demand for architectural and industrial paints and coatingsis expected to increase due to the planned growth in the infrastructurespending for roads, bridges and housing, and other projects. It is forecastthat the country’s paint market will increase from $350 M in 2016 to $370 Min 2017. Sales of
COATINGS Sherwin-Williams, PinturasVencedor and PinturasCeresitaare anticipated to grow. The country’s Ministry of Economy and Finance aimsto invest 1.3% of the country’s $750 bn GDP for reconstruction and otherpublic projects. The International Finance Corp is aiming to grant a $2 bngreen bond to fund environment-linked projects in Peru. The EuropeanInvestment Bank plans to award a $150 M loan to Enel Green Power SpA for thedevelopment of a 330 MW of renewable energy projects.
Original Source: Coatings World, Aug 2017, 22 (8), 31, (Website: http://www.coatingsworld. com), Copyright Rodman Media 2017.
Malaysia’s paint sector eyes larger profits Despite facing political challenges, Malaysia maintains a sound economic growth amid healthy and increasing market for varnishes and paints. Malaysian paints and varnishes manufacturers will increase their turnovers by an average of 8% in 2015-2025, according to market researcher Euromonitor International. The country’s paints and varnishes market increased to Ringgit 5.24 bn ($1.2 bn) in 2016 from Ringgit 4.72 bn ($1.1 bn) in 2015. After sluggish economic expansion in 2016 and 2016, Malaysia’s economy is at a better position in 2017 with 5.6% year-on-year economic increase in 1Q 2017. The construction sector also jumped by 6.5% in 1Q 2017. These are positive signs for the paints and coatings players in the country. Non-residential construction poses the greatest opportunities. Euromonitor expects a 72% overall industry increase in 2015-2025 for a CAGR of 6.5%. Malaysia’s ports and airports will also rise at 4.7% CAGR in 2015-2025 to drive paint and coatings sales further. Producers of paint and coatings for plastic product producers will see largest opportunities with turnover anticipated to rise by 88% in 2015-2025 for a 6.5% CAGR. However, the country’s paint market is still dominated by foreign producers that make up over 60% of the market. Nippon Pain Malaysia Group has been leading since 2008, while other top manufacturers include Jotun and AkzoNobel. Malaysian firms Seamaster Paint Marketing and Colourland Paints follow the big three. The DIY home improvement market is a recent trend in Malaysia. The consumer home market for paints reached Ringgit 713.8 M ($166 M) in 2015 before increasing by 4.17% to Ringgit 744.2 M ($173 M) in 2016. This is expected to rise by 4.68% to Ringgit 779.9 M ($181 M) in 2017. This will mainly rely on a 5.02% anticipated increase in the decorative paint sector to Ringgit 648 M ($151 M) in 2017 from Ringgit 618.1 M ($144 M) in 2016.
Original Source: APCJ, Asia Pacific Coatings Journal, Aug-Sep 2017, 30 (4), 14,18 (Website: http://www.asiapacificcoatingsjournal. com/), Copyright dmg events 2017.
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Original Source: APCJ, Asia Pacific Coatings Journal, Aug-Sep 2017, 30 (4), 16,18 (Website: http://www. asiapacificcoatingsjournal.com/), Copyright dmg events 2017.
Automotive industry boom to fuel Africa’s paints and coatings market The African paints and coatings market is currently driven by the fast-expanding construction industry. The growth in the region’s automotive sector could contribute on the long-term increase of its decorative and industrial product volumes. Crown Paints, Sadolin Uganda, Goldstar and Insignia are some of the regional paints and coatings companies that led the African automotive market with various products such as primers, fast-dry synthetics and thinners. It is anticipated that demand for automotive paints and coatings will grow, driven by the expected increase in vehicle numbers in Kenya, Algeria, Nigeria and Ethiopia. The African automotive market is also forecast to move from solvent borne products to powder coatings to decrease emissions and encourage efficient fuel consumption. Decorative paints and coatings presently represent over 80% of the total market in Tanzania and Kenya. Tanzania is growing by 6.2% in the decorative paints and coatings segment, while Kenya is increasing by 7%. By 2020, the decorative paints and coatings market in Tanzania and Kenya is expected to post a CAGR of 6.7%. With $38.9 M share, Crown Paints led the East African decorative paints and coatings market. The other top market players are Basco Paints (with 19.8% market share), Insignia Ltd (15.4%), Sadolin Paints (12.5%) and Goldstar (7.9%). The region’s smaller suppliers hold a cumulative share of 5.4%. Production volumes of the decorative paints and coatings in Tanzania and Kenya are forecast to reach almost 60 M L and 91.5 M L in 2017 and 2020, respectively. In 2015, Kenya accounted for 69.1% and 30.9% of the water- and solvent-based paints markets, respectively. Tanzania represented 51.3% and 48.7% of the water- and solvent-based paints markets, respectively.
Original Source: Coatings World, Aug 2017, 22 (8), 27-28 (Website: http://www.coatingsworld. com), Copyright Rodman Media 2017.
October 2017
ON
POWDER
State of the Brazil paint and coatings industry The most recent report by ChemQuest Group, entitled “Global Paint and Coatings Industry Market Analysis (2015-2020)”, showed the countries of Latin America collectively account for around 8% of volume and 7% of value of the total global coatings market in 2015. Brazil, Argentina, Mexico and Colombia represent about 80% of the total coatings demand. In 2015, coatings sales in Latin America reached $9.9 bn, with volume of around 3.5 bn L. Over the last five years, volume and value have increased by an average rate of 2.4%/y and 2.5%/y, respectively. Brazil makes up 31% and 38% of its value and volume, respectively, for the total Latin American coatings market. The country’s volume is rising by just 0.1%/y, while its value is decreasing by 2.9%/y. Paint and coatings demand in Latin America slowed down in 2016 because the regional economy fell by 1.1%. However, it is predicted that the regional economy will post a 1.3% real growth in 2017. Investment and private consumption in South America declined by 9.9% and 2.3%, respectively. Private consumption and investment in Central America rose by 3.0% and 1.9%, respectively. BASF, AkzoNobel, PPG, Axalta, Sherwin-Williams, Valspar, Tri-Color, Iquine, Qroma, GrupoOrbis and Sinteplast are of the main players in Latin America. Gestamp will launch its new facility in Betim, Minas Gerais State, Brazil to supply the domestic needs of Fiat Chrysler. The new plant is the firm’s seventh project in the country. Axalta has launched new colours for the Cormax line at reasonable prices. In 2016, AkzoNobel introduced a new low-VOC wall paint, called Coralar. Sherwin-Williams has unveiled Design, SuperPaint, Classic and Spazio paint lines, which are marketed exclusively through its company-operated stores and dedicated dealers. Pie graphs show the share of Latin America in the global coatings value ($141 bn) and global coatings volume ($41 bn L) in 2015. A bar graph displays the region distribution by value and volume of Latin American coatings in 2015. The remaining two bar graphs present the Latin American coatings twoyear volume and value forecasted by country in 2010, 2015 and 2017.
Original Source: Coatings World, Aug 2017, 22 (8), 54-55, (Website: http://www. coatingsworld.com), Copyright Rodman Media 2017.
Recovery investment to boost Peruvian economy The Peruvian demand for architectural and industrial paints and coatingsis expected to increase due to the planned growth in the infrastructurespending for roads, bridges and housing, and other projects. It is forecastthat the country’s paint market will increase from $350 M in 2016 to $370 Min 2017. Sales of
COATINGS Sherwin-Williams, PinturasVencedor and PinturasCeresitaare anticipated to grow. The country’s Ministry of Economy and Finance aimsto invest 1.3% of the country’s $750 bn GDP for reconstruction and otherpublic projects. The International Finance Corp is aiming to grant a $2 bngreen bond to fund environment-linked projects in Peru. The EuropeanInvestment Bank plans to award a $150 M loan to Enel Green Power SpA for thedevelopment of a 330 MW of renewable energy projects.
Original Source: Coatings World, Aug 2017, 22 (8), 31, (Website: http://www.coatingsworld. com), Copyright Rodman Media 2017.
Malaysia’s paint sector eyes larger profits Despite facing political challenges, Malaysia maintains a sound economic growth amid healthy and increasing market for varnishes and paints. Malaysian paints and varnishes manufacturers will increase their turnovers by an average of 8% in 2015-2025, according to market researcher Euromonitor International. The country’s paints and varnishes market increased to Ringgit 5.24 bn ($1.2 bn) in 2016 from Ringgit 4.72 bn ($1.1 bn) in 2015. After sluggish economic expansion in 2016 and 2016, Malaysia’s economy is at a better position in 2017 with 5.6% year-on-year economic increase in 1Q 2017. The construction sector also jumped by 6.5% in 1Q 2017. These are positive signs for the paints and coatings players in the country. Non-residential construction poses the greatest opportunities. Euromonitor expects a 72% overall industry increase in 2015-2025 for a CAGR of 6.5%. Malaysia’s ports and airports will also rise at 4.7% CAGR in 2015-2025 to drive paint and coatings sales further. Producers of paint and coatings for plastic product producers will see largest opportunities with turnover anticipated to rise by 88% in 2015-2025 for a 6.5% CAGR. However, the country’s paint market is still dominated by foreign producers that make up over 60% of the market. Nippon Pain Malaysia Group has been leading since 2008, while other top manufacturers include Jotun and AkzoNobel. Malaysian firms Seamaster Paint Marketing and Colourland Paints follow the big three. The DIY home improvement market is a recent trend in Malaysia. The consumer home market for paints reached Ringgit 713.8 M ($166 M) in 2015 before increasing by 4.17% to Ringgit 744.2 M ($173 M) in 2016. This is expected to rise by 4.68% to Ringgit 779.9 M ($181 M) in 2017. This will mainly rely on a 5.02% anticipated increase in the decorative paint sector to Ringgit 648 M ($151 M) in 2017 from Ringgit 618.1 M ($144 M) in 2016.
Original Source: APCJ, Asia Pacific Coatings Journal, Aug-Sep 2017, 30 (4), 14,18 (Website: http://www.asiapacificcoatingsjournal. com/), Copyright dmg events 2017.
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