Online research website, Research and Markets has released a report titled “Assessment of China’s Market for Anti-corrosive Coatings”. According to the report, local anti-corrosion coating suppliers control 60% of the Chinese anti-corrosive coatings market which was valued at RMB 30 billion during the end of 2010.
While the industry has a current annual growth rate of 13% experts foresee a major growth in the market due to increasing awareness and demand in the market recovering downstream industries.
Local Chinese customers are beginning to become aware of the fact that a high quality coating can protect a structure for a period of 20 or more years. However, the anti-corrosive coating market in China is expected to achieve an average growth rate of 19%. Though local suppliers control the domestic market, they will not be able to compete with multinational companies in terms of scale of operations and quality.
The report states that international companies make 100 times more revenue than local companies. Domestic suppliers mainly benefit from their strong relationship with their customers and their regional activity. Some of the international companies that have been analysed are Akzonobel, China Paint, Euronavy, Hempel, BASF, Nippon, Dupont, 3M, Wuhan Linuo Chemical Group and Shandong Lunan Paint. The government of China aims to balance the situation by consolidating the market and enforcing strict regulations in terms of production capacity and quality.