Chapter 6.9: The Paints and Coatings Industry
Editorial Department, China Chemical News and China Chemical Industry Yearbook
Production
Upward trend for the total output of paints and coatings and prominence in coastal areas
According to data issued by the State Statistical Bureau, the domestic output of paints and coatings was 1.8394 million tons in 2000, up by 7.44 per cent on 1999 and an increase on the average growth of 2.09 per cent from 1997 to 2000. This excludes small producers with an annual output of of less than 5 million yuan, and if this amount was added, domestic output would top 2 million tons, ranking third in the world. Of the total, output of building coatings was 563,200 tons in 2000, an increase of of 9.25 per cent on 1999. These data show that the total domestic output of paints and coatings was basically stable and ascending year on year
In the coastal areas, total output was 1.3542 million tons in 2000, 73.62 per cent of the total domestic output and a rise of 16.08 per cent on 1999. Total output of building coatings was 97,700 tons, a gain of 48.06 per cent on 1999. It was evident that the coastal areas' increase in total output was much higher than the average domestic growth, and the growth of building coatings was unprecedented.
In the western regions , total output was 142,300 tons in 2000, constituting only 7.73 per cent of the total domestic output, and this total was 24.78 per cent less than in 1999, while the total output of building coatings was 34,200 tons, a fall of 61.36 per cent from 1999. This decrease in output was consistent with the economic gap between western and eastern regions.
Total output of paints and coatings in other regions (south-central, north-east, etc.) was 343,400 tons in 2000, accounting for 18.67 per cent of the total domestic output, which was a drop of 3.73 per cent from 1999. Total output of building coatings was 131,300 tons, a decrease of 11.11 per cent on 1999. Total output of paints and coatings and building coatings decreased compared with the previous year.
From the above analysis it is evident that the total domestic output of paints and coatings was effectively stable and increasing year on year, but development in various regions was uneven . The gap between western and eastern regions continued to widen, but the eastern regions' specialized production base for coatings and larger producers helped to accelerate its development so that the level of specialization in paint production rose constantly, raising the technical level of the paint industry and promoting product quality. From the market viewpoint, the strategic principle of developing the economy of the west central region and the implementation of state preferential policies, give the market in the west central region excellent prospects.
The shape of specialized paint production bases and the emergence of specialized paint producers
An analysis from the geographical point of view of the distribution of the total output of paints in 2000 would show that grouped paint production bases had taken shape and large-scale specialized paint producers are beginning to emerge.
In 2000 the production of paints and coatings was distributed mainly in the East China region, making up 41.56 per cent of the total domestic output, and the south central region (30.84 per cent of the total), with output concentrated in three places: Guangdong Province, Shanghai Municipality and Jiangsu Province . The total output of these three was 48.02 per cent, nearly half of the total.
| Total output | Of which total output of building coatings | |||||||
|---|---|---|---|---|---|---|---|---|
| 1999 | 2000 | 1999 | 2000 | |||||
| Region | Total (kt) | Share (%) | Total (kt) | Share (%) | Total (kt) | Share(%) | Total (kt) | Share(%) |
| Nationwide | 1,712.2 | 100 | 1,839.4 | 100 | 515.5 | 30.11 | 563.2 | 30.61 |
| coastal areas | 1,166.6 | 68.13 | 1,354.2 | 73.62 | 268.6 | 52.11 | 397.7 | 60.89 |
| Guangdong | 283.3 | 16.55 | 402.6 | 22.95 | 64.5 | 12.51 | 118.2 | 20.99 |
| Fujian | 25.4 | 1.48 | 25.5 | 1.39 | 7.2 | 1.40 | 7.1 | 1.26 |
| Shandong | 123.4 | 7.21 | 115.4 | 6.27 | 11.8 | 2.29 | 11.2 | 1.99 |
| Zhejiang | 96.1 | 5.62 | 114.1 | 6.20 | 7.8 | 1.51 | 18.9 | 3.36 |
| Shanghai | 217.9 | 12.73 | 255.6 | 13.90 | 89.8 | 17.42 | 114.3 | 20.30 |
| Jiangsu | 234.4 | 13.69 | 225.1 | 12.24 | 38.5 | 7.47 | 62.5 | 11.10 |
| Tianjin | 56.7 | 3.31 | 79.3 | 4.31 | 7.1 | 1.38 | 7.6 | 1.35 |
| Hebei | 87.4 | 5.11 | 108.3 | 5.89 | 25.7 | 4.99 | 47.7 | 8.47 |
| Liaoning | 42.0 | 2.45 | 28.3 | 1.54 | 16.2 | 3.14 | 10.2 | 1.81 |
| Western regions | 188.91 | 11.03 | 142.1 | 7.73 | 88.5 | 17.17 | 34.2 | 6.07 |
| Shaanxi | 27.1 | 1.58 | 28.9 | 1.57 | 0.3 | 0.05 | ||
| Sichuan | 14.0 | 0.82 | 15.0 | 0.82 | 0.7 | 0.14 | 0.9 | 0.16 |
| Chongqing | 50.0 | 2.92 | 49.1 | 2.67 | 16.8 | 3.26 | 16.8 | 2.93 |
| Gansu | 66.9 | 3.91 | 16.8 | 0.91 | 55.1 | 10.69 | 2.9 | 0.52 |
| Ningxia | 2.9 | 0.17 | 2.0 | 0.11 | 2.2 | 0.43 | 1.4 | 0.25 |
| Xinjiang | 20.3 | 11.86 | 25.2 | 1.37 | 10.0 | 1.94 | 10.2 | 1.81 |
| Inner Mongolia | 7.7 | 0.45 | 5.1 | 0.28 | 3.7 | 0.72 | 1.7 | 0.30 |
| Other regions | 356.7 | 20.83 | 343.4 | 18.67 | 158.4 | 30.73 | 131.3 | 23.31 |
The growth rate in the three regions of the Zhujiang delta, Changjiang (Yangzi River) delta and the neigh- bouring regions of Beijing, was 18.02 per cent in 2000, and further increases are likely. The development tendency was particularly strong in Zhujiang delta, whose growth rate was 42.11 per cent.
The analysis of Table 6.9.2, with reference to the data of major producers in the paint industry, shows the number of producers of more than 20 000 tons' output was on the increase in 2000, and some even reached over 50,000 tons. Large-scale paint producers were also mainly grouped in these three regions. According to the data from the State Statistical Bureau in 1999, more than 50 producers had proceeds from sale in excess of 100 million yuan, and 46 of these were distributed in these three major regions. It could be said that the three major domestic paint bases tentatively took shape (mainly grouped in a few provinces and cities), large specialized producers began to emerge, and an alliance of these producers could act as a counterweight to competition in the international paint market.
| Total output | Of which total output of building coatings | ||||||
|---|---|---|---|---|---|---|---|
| Region | 1999 | 2000 | 2000/1999 (%) | 1999 | 2000 | 2000/1999(%) | |
| Nationwide | 1,712.2 | 1,839.4 | 7.43 | 515.5 | 563.2 | 9.25 | |
| North | 278.6 | 303.2 | 8.83 | 146.3 | 143.3 | “2.05 | |
| North-east | 56.6 | 51.5 | “9.01 | 16.9 | 14.6 | “13.61 | |
| East | 723.3 | 764.5 | 5.70 | 157.9 | 217.0 | 37.43 | |
| South Central | 444.1 | 566.6 | 27.58 | 98.1 | 153.7 | 56.68 | |
| South-west | 91.6 | 81.3 | “11.24 | 28.9 | 19.8 | “21.49 | |
| North-west | 118.0 | 73.3 | “37.88 | 67.4 | 14.8 | “78.04 | |
| Total output | Of which total output of building coatings | |||||||
|---|---|---|---|---|---|---|---|---|
| 1999 | 2000 | 1999 | 2000 | |||||
| Region | Total (kt) | Share (%) | Total (kt) | Share (%) | Total (kt) | Share(%) | Total (kt) | Share(%) |
| Pearl River Delta | 283.3 | 16.55 | 402.6 | 21.89 | 64.5 | 12.51 | 118.2 | 20.99 |
| Guangdong | 283.3 | 16.55 | 402.6 | 21.89 | 64.5 | 12.51 | 118.2 | 20.99 |
| Yantze River Delta | 548.4 | 32.03 | 594.8 | 32.34 | 136.1 | 26.40 | 195.7 | 34.75 |
| Shanghai | 217.9 | 12.73 | 255.6 | 13.90 | 89.8 | 17.42 | 114.3 | 20.29 |
| Jiangsu | 234.4 | 13.69 | 225.1 | 12.24 | 38.5 | 7.47 | 62.5 | 11.10 |
| Zhejiang | 96.1 | 5.61 | 114.1 | 6.20 | 7.8 | 1.51 | 18.9 | 3.36 |
| Neighbouring | 257.6 | 15.05 | 288.2 | 15.67 | 136.5 | 26.48 | 140.8 | 25.00 |
| Beijing areas | ||||||||
| Beijing | 113.5 | 6.63 | 100.6 | 5.47 | 103.7 | 20.12 | 85.5 | 15.18 |
| Tianjin | 56.7 | 3.31 | 79.3 | 4.31 | 7.1 | 1.38 | 7.6 | 1.35 |
| Hebei | 87.4 | 5.15 | 108.3 | 5.89 | 25.7 | 4.99 | 47.7 | 8.47 |
The buoyant trend in developing building coatings and a bright outlook
Statistics show domestic output of building coatings totalled 427,400 tons in 1997, 447,600 tons in 1998, 515,500 tons in 1999, 563,200 tons in 2000, although the actual output was far higher than this. There has been an average annual growth of 9.72 per cent, and there seems to be a trend towards further development. Geographically, the producers of building coatings were principally distributed in eastern, south-central and northern China, accounting for 38.53 per cent, 27.29 per centand 25.44 per cent respectively of total domestic output. These producers are mostly grouped in Gangdong, Shanghai, Beijing, Jiangsu and Hebei, amounting to 20.99 per cent, 20.29 per cent, 15.18 per cent, 11.10 per cent and 8.47 per cent respectively of the total, and the five provinces and municipalities made up 76.03 per cent of the total domestic output. This was consistent with the pattern of regional policies and the development of the regional building trade.
| No | Company | Output (thousand tons) |
|---|---|---|
| 1 | Nippon (China) Co Ltd | 78.0 |
| 2 | China Huili Group Co Ltd | 53.7 |
| 3 | Guangzhou Zhuhua Group Co Ltd | 43.5 |
| 4 | Shandong Lehua Group Co Ltd | 41.8 |
| 5 | Shunde China Resouces Co Ltd | 41.8 |
| 6 | Shanghai Huasheng Co Ltd | 34.3 |
| 7 | Chongqing Sanxia Co | 30.0 |
| 8 | Langfang Nippon (China) Co Ltd | 24.7 |
| 9 | Tianjin Dengta Co Ltd | 24.7 |
| 10 | Shanghai Paint Co Ltd | 24.1 |
| 11 | Zhejiang Huanqiu Paint | 21.1 |
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Pages: 648