2010-2011 Global and China Ocean Coatings Industry Development

Business Club March 22 The maritime coatings industry originated in Europe and mainly serves the shipbuilding, shipping and offshore projects. The Nordic and Western European countries have gained rich paint manufacturing experience in the development of the Beihai oil field, and their performance is first-class and they can also be constructed at extremely low temperatures, making the former USSR aircraft carriers have to use Norwegian Jotun paint.

The global ocean paint industry is very concentrated, with only six major manufacturers. They are Akzo Nobel's International Paints, PPG, Hempel, Jotun, Kansai and Chugoku. The latter two are Japanese and the rest are mainly European. Although PPG is a U.S. manufacturer, its marine coatings business is derived from SigmaKalon, which was acquired in January 2008. Sigma is a Dutch company that began providing protective coatings for the Dutch Navy in 1722.

International Paints is a British company founded in 1881 and acquired by Akzo Nobel in 1998. Jotun is a Norwegian company and the largest marine paint manufacturer in the world. Hempel is a Danish company. Kansai mainly makes automotive coatings, but its joint venture with COSCO, the world's largest container company, has become one of the largest container coatings companies in China.

China is the largest market for marine coatings. China not only has the world's largest shipbuilding volume, but also has the world's largest container production, port equipment production, and number of cross-sea bridges. However, China's marine paint market is completely occupied by foreign manufacturers or joint venture manufacturers, and local companies can only engage in the coating business of small military vessels, and their market share is less than 5%. The six largest marine paint manufacturers in the world have joint venture factories in China. Chinese companies provide cheap labor and foreign companies provide advanced technologies.

In 2010, China's shipbuilding industry became the world's largest. In 2010, China's shipbuilding industry received a new order amount (NewOrder) of US$36.3 billion, a global market share of 38%, and South Korea’s market share contracted to reach 37%. However, the recent shipbuilding market has reversed. As of the end of September 2011, the amount of new orders received by the Korean shipbuilding industry rose to US$4.36 billion. The new orders received by the Chinese shipbuilding industry dropped sharply to 1.35 billion U.S. dollars, less than 40% of the same period in 2010. Six of China's ten largest shipyards did not receive any grain in the third quarter of 2011. This also has an adverse effect on the Chinese marine paint industry.

The backwardness of China's marine paint industry stems from the weakness of basic industries. Epoxy resin, the raw material for the upstream coatings, cannot be produced.