Domestic Powder Coatings Companies Speed Up Their Growth In A Positive Market Environment
Powder coatings are usually applied on metal surfaces because of powder coatings’ excellent protection properties and surface decoration performance. With footsteps all over China now, AkzoNobel is without a doubt the number one powder coatings company in the local market. Based on the company’s H1 financial statement, their industrial and powder coatings revenue was up 11 percent. Demand trends were positive for Asia and powder coatings continued to show strong growth momentum. The growth of AkzoNobel’s powder coatings division in Asia, especially China coincides with positive developments in several major downstream markets for powder coatings, including home use electric appliances, automotive and construction. For example, from January to May in 2017 China sold a total of 643 billion yuan of home use electric appliances, an increase of 15.9 percent over the same period of 2016.
With relatively low starting points in the market Chinese powder coatings companies are actively expanding their customer base and increasing their capacities so as to enlarge their competitiveness generated from economy of scale. Fujian Wanan Group is a major domestic powder coatings producer in south China. The company recently reported that their sales increased by 36.7 percent in the first half of 2017. And the company is constructing a new 20,000 tons per year powder coatings plant, and will put the new capacity into operation in 2019. Anhui Meijia New Materials Co., Ltd. increased their sales by 17.55 percent in the first six months of 2017 compared with the same period last year. Their net profit also increased 57.48 percent in the same period.
Meijia’s customers include some major electric appliance brands such as Midea, Aux and Changhong. Midea Group is the largest home use electric appliance producer in China, if not in the world.