Three major events in China's coating industry in

Three major events in China's coating industry in 2009

three major events in China's coating industry in 2009

December 24, 2009

[China coating information] 2010 is coming, and 2009 is about to pass. In retrospect, the most talked about vocabulary in this year is probably "financial crisis". Since the outbreak of the subprime mortgage crisis on Wall Street at the end of 2008, the financial crisis that has rapidly evolved and spread to the world has profoundly affected the trend of the global economy. In the past year, the coating industry has also experienced unprecedented ups and downs. The financial crisis has taught a real and cruel lesson to large and small enterprises in this industry. Standing at the end of the year, I summarized the major events of the coating industry in 2009. The author summarized the following key points:

coping with the crisis: the wind of layoffs and production restrictions

at the beginning of the year, affected by the financial crisis, the demand of the coating industry was weak and the depression of key markets gradually appeared. Several important downstream customers of the coating industry: the automotive industry, shipbuilding industry, real estate industry, etc. were hit hard by the financial storm. In order to cope with the depression of market demand, Inventory clearing, layoffs and production reduction have become the first keywords of the coating industry for the winter. Even those industry giants that have operated for many years have not been spared from this layoff crisis. Affected by the decline in global demand for chemicals, BASF's sales revenue fell to 12.22 billion euros in the first quarter, and its net profit fell to 375 million euros. The company plans to lay off at least 2000 people by the end of the year. BASF announced in the middle of the year that it would close 80 factories around the world and reduce production until January next year. In February, Rohm Haas, a manufacturer of specialty chemicals, announced the reduction of about 900 jobs to adjust its business and cost structure to cope with the current market weakness. DuPont announced 2500 layoffs in December 2008 and an additional 2000 layoffs in May to reduce costs. In order to save money, PPG also reported that it had closed down the protection and ship coating plant in the Netherlands and the coating plant in Canada... While these industry giants have reduced production and laid off workers, more small and medium-sized enterprises were ruthlessly eliminated by the market in the cold winter of finance, which was developed by SGL Group, which reached the purpose of protecting the jaw contact surface. For the coating industry, "this winter is a little cold". At the end of 2009, we see that the number of layoffs and production reductions seems to have decreased compared with some time ago. We hope this is a signal of the recovery of the industry, and we also look forward to the recovery of the coating industry with the pace of the spring of 2010

seeking development: mergers and acquisitions and transformation of giants

in February 2009, a merger and acquisition news shook the domestic coating industry. Foster (Beijing) announced the official acquisition of Beijing Red Lion paint company with a history of 200 years. This is the largest merger and acquisition between national brands in the field of coatings in China so far. In the context of the financial crisis, this merger and acquisition case has attracted special attention. As a company with a history of only 14 years, Fust's move was vividly called "snake swallowing elephant". However, in such a depressed market economy environment and the situation of foreign brands attacking the domestic paint market on a large scale, the author can't help but applaud the courage and courage of foster. China's coating industry needs its own national brands to participate in international competition than ever before. On the way from "made in China" to "created in China", it is of far-reaching significance to focus on the advantages of internal resources and integrate existing brands and technologies to build the famous paint brand we call ourselves

also in 2009, there was another merger and acquisition that had to be mentioned, that is, Dow Chemical's merger and acquisition of RoHS 1, which was generally available for more than 100000 times in the middle of the year. After the merger, Dow Chemical established a new Department, advancedmaterials, with Rohm and Haas business as the core. The business of this department includes coatings, construction, adhesives and electronic materials. Dow Chemical, a new Department, will become the world's largest supply source of architectural and industrial coatings. Both Dow and Rohm & Haas are industry giants with a long history. This integration can be said to be a strong combination. The integrated coating business department will have stronger technical and resource backing, and naturally have stronger competitiveness. Choosing to complete the acquisition in 2009 when the financial crisis spread can be seen as the key strategy for the two giants to jointly fight the crisis

favorable policies: opportunities for small and medium-sized enterprises

in 2009, the State Council issued several opinions on further promoting the development of small and medium-sized enterprises by pressing the "mechanical zero" button, which proposed to further improve the development environment of small and medium-sized enterprises, alleviate financing problems, increase fiscal and tax support, and promote the healthy development of small and medium-sized enterprises. For the Chinese coating market, most of them are small and medium-sized enterprises except for a few large-scale coating enterprises. This policy is undoubtedly good news for many small and medium-sized enterprises in the paint industry. For small and medium-sized enterprises with relatively weak capital, technology and resources, the impact effect of the financial crisis is more obvious. Therefore, the introduction of favorable policies can be said to send carbon in the snow. As the global coating giants are attracted by the Asia Pacific market, especially the Chinese market, and expand their scale in China against the trend, our local coating enterprises should seize the dual advantages of domestic demand market and favorable policies to seek development in the crisis

conclusion

economists generally predict that the global economy will usher in a slow recovery in 2010, and the Asia Pacific market is the pioneer of economic recovery. Paint enterprises have great prospects in the Asia Pacific market. From a positive perspective, the economic crisis in 2009 can also be seen as a process of market purification and the survival of the fittest. We are looking forward to 2010, after the baptism of the crisis, the coating industry can glow with new vitality