Adhesives & Sealants Headlines

China's Anti-Corrosion Coatings Industry Continues to Rise

The market for anti-corrosion coatings in China was valued at RMB 30 billion (~ $3.6 billion) at the end of 2010, according to a new report.

The market for anti-corrosion coatings in China was valued at RMB 30 billion (~ $3.6 billion) at the end of 2010, according to “Assessment of China's Market for Anti-corrosive Coatings,” a new report from Research and Markets. The industry is growing at 13% annually, but growth is expected to rise significantly due to economic recovery in downstream industries, a rise in domestic demand and awareness of quality issues.

Between 2010 and 2015, growth is forecasted at 19% on average. However, domestic coatings suppliers cannot compete with large multinational conglomerates on quality and scale, providing excellent opportunities for foreign coating manufacturers.

Domestic suppliers are mostly small manufacturers that are regionally active and benefit from longstanding customer relations. The market leaders are a handful of foreign suppliers that generate up to 100 times the revenue of their domestic competitors. The Chinese government aims to address this situation by stimulating market consolidation and eliminating outdated production capacity, according to the report. Strict quality and environmental regulations will force small domestic suppliers to innovate or close.

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