Top ten sensational events in the coatings industry in 2015

Event one country levied a consumption tax on paint VOC emissions

In accordance with the spirit of Caishui [2015] No.

Exemption from consumption tax for coatings with volatile organic compounds (Volatile Organic Compounds, VOC) content below 420 g/l (inclusive) under construction.

Comment: The national environmental protection policy promulgated in 2015 has caused great complaints from coating companies.

Event 2 The impact of the central bank’s release of interest rate cut standards on the coatings industry

At 5:00 pm on May 10, 2015, the Central Bank announced that the benchmark interest rate for one-year RMB loans will be reduced by 0.

Comments: The interest rate cut firstly indicates that the economy is under pressure to maintain 7% of GDP, and secondly, it is beneficial to alleviate the financing difficulties of capital-intensive enterprises and reduce financing costs.

Event 3 Shenzhen completely bans the use of solvent-based coatings

From July 1, Shenzhen will completely ban unqualified decoration materials such as solvent-based coatings (paints) and adhesives, becoming the first city in the country to restrict the sales and use of solvent-based coatings (paints).

Shenzhen City has promulgated the technical specifications for the Special Zone of "Limits of Harmful Substances in Building Decoration Coatings and Adhesives".

Comment: Shenzhen took the lead in banning architectural coatings that do not meet the limits of hazardous substances, and has played a leading role in other coatings industries.

Event 4 Tianjin exploded and many coating companies cut production

At around 23:20 in the evening on August 12, 2015, an explosion occurred at the Tianjin Port (11.

At present, there are 12 coating companies located in Tianjin Binhai New Area.

Comment: Coating companies are in the downstream link of the fine chemical product supply chain, and product manufacturing is closely related to chemical raw materials.

The Tianjin Lingang Industrial Zone, not far from the place where the incident occurred, is a national petrochemical base planned by the National Development and Reform Commission.

It is precisely because of the excellent market supply of raw materials and superior transportation conditions that attract these well-known paint manufacturers to set up factories here, but after the explosion, more stringent market management regulations will be ushered in, and the storage cost will be corresponding.

Event Wu Nippon accelerates business expansion and transforms into a full-service provider

Nippon has always been rooted in the Chinese market, radiating regional markets and expanding market share by investing in new production bases, thereby driving strategic cooperation between enterprises and localities and achieving win-win development.

　　Comment: Against the background of domestic and foreign difficulties in the coatings market , Nippon Paint is actively transforming from a paint manufacturer to a “full-service provider”.
Whether it is enriching the paint coating system, embracing the blue ocean of the recoating market, or expanding its territory, this is all for Nippon.
Provides a variety of possibilities to open up market space.
Similarly, this is also a good demonstration by Nippon for the transformation and upgrading of other coating companies in the industry.
Many coating companies in the country that are suffering from the market downturn should perhaps consider transforming to a service-oriented model, and take more care of the needs of consumers in terms of products and services.
.
As one of the top 100 companies, Nippon Development's advanced technology and transformational thinking are important reasons for Nippon's enduringness.

　　Event 6 The advertising law was revised, and celebrity endorsements and child endorsements were restricted

　　In September 2015, the new "Advertising Law" was revised, which had a great impact on coating companies.
The new "Advertising Law" added legal obligations and responsibilities for advertising spokespersons, which clearly stipulated that advertising spokespersons must not speak for false advertisements or be unused The endorsement of the goods and services of the past.
Do not use minors under the age of ten as advertising spokespersons; do not carry out advertising activities in primary and secondary schools and kindergartens, and do not use the teaching materials, teaching supplementary materials, etc.
of primary and secondary school students and children to publish or disguise advertisements.
Clarify and strengthen the duties and powers of industry and commerce agencies and relevant departments in the supervision of the advertising market, clarify the management system with industry and commerce agencies as the mainstay and the division of labor and cooperation among various departments, and improve the effectiveness of administrative law enforcement.

　　Comment: The new advertising law clarifies the responsibilities and obligations of celebrity endorsements.
For many years, companies have used the "celebrity effect" to promote the company's new products.
In this revision, enterprises and stars have "joint and several" responsibilities.
Therefore, celebrities tend to be particularly cautious when choosing corporate endorsements, and they will lose everything.
Children's endorsements do not need to bear legal responsibility, therefore, this amendment protects the legal rights of children.
The legislative provisions of advertising spokespersons have attracted attention from all walks of life.
The new law has a positive effect on regulating the behavior of advertising spokespersons, strengthening the sense of responsibility of spokespersons, punishing false endorsements, and maintaining the order of the advertising market.
Global Coatings.
com learned that the new advertising law protects consumers' rights and interests more strongly than the old advertising law.
Coating companies have to do everything in the production process, which to a certain extent also controls the production of counterfeit and shoddy products by coating companies.

　　Event 7 GDP growth rate fell below 7%, coating industry output in the fourth quarter or higher than expected

　　On October 19, the National Bureau of Statistics released quarterly economic data for the first time.
Data show that in the third quarter of this year, my country's GDP growth rate was 6.
9% year-on-year, and it fell below 7% for the first time since 2009.
Although it only fell by 0.
1%, it has caused a sensation at home and abroad.
As my country is still in a critical stage of structural adjustment, the coating industry, as a traditional industry with overcapacity, has seen a certain decline in its output growth rate this year.

　　Comment: At present, under the circumstances of high economic downward pressure, the GDP growth support mainly comes from consumption growth.
Although the coating industry has only occupied a small part in the large economic environment, as a relatively typical traditional industry, coatings have been integrated into people's daily life and are inseparable from the construction of any infrastructure.
The slowdown in GDP growth means that although the overall economic operation of the country has remained stable and the fundamentals have not changed, the greater concern of the Chinese economy lies in the weakness of the property market, and the correlation between real estate activities and the overall economy is about 20%.

　　China's per capita paint consumption is only 9.
6 kg, but in terms of architectural coatings, the per capita consumption is 3.
6 kg.
This data is far below the global average and also lower than the per capita consumption of Western countries.
This shows that there is a huge potential for development in the Chinese coatings market in the future.
Therefore, in the future paint market, whether it is paint companies or consumers, there will be a faster integration trend between distribution services.
GDP breaking 7% is not terrible.
The biggest threat to being eliminated is that coatings companies cannot seize the opportunity of economic development to achieve industrial upgrading and transformation!

　　Event 8 Mergers and reorganizations: Baililian (40.
43, 0.
03, 0.
07%) acquired Lomon for 9 billion yuan, Dow Chemical and DuPont M&A

　　In June 2015, Baililian plans to issue 380 million shares at a price of 27 yuan per share, raising 10.
26 billion yuan, of which 9 billion yuan will be used to acquire 100% equity of Lomon Titanium.
Lomon Titanium and Baililian rank first and second in terms of titanium dioxide production capacity in China.
After the merger, the combined production capacity of the two companies will reach 560,000 tons, ranking first in Asia and becoming the fourth largest titanium dioxide company in the world.

　　On December 11 of the same year, Dow Chemical and DuPont officially announced the decision to merge the two companies.
The combined company will be named Dow DuPont, each holding 50% of the shares.

　　The current market values ​​of Dow Chemical and DuPont are 63.
7 billion and 65.
3 billion U.
S.
dollars, respectively.
This means that a core chemical giant with a market value of about 130 billion U.
S.
dollars has been created.
This merger will also become the largest merger and reorganization in the history of global chemical industry.

　　Comment: Baililian's acquisition of Lomon can be described as "snake swallowing elephants".
Economic development is sluggish, and global mergers and acquisitions have become the safest and most powerful way to save the survival of enterprises.
At present, small and medium-sized enterprises account for a large market share.
The coatings industry is in low-end overcapacity, the market continues to shrink, and the environment is under greater environmental pressure.
The coatings industry is only a small part of the Chinese economy.
Mergers and reorganizations are not only possible.
After the economic crisis, the coatings industry’s market share has been expanded to a certain extent.
While Dow DuPont’s expansion is not the main purpose of the two companies.
To become bigger and stronger, through resource integration and synergy, to optimize the industry and capital structure, improve innovation capabilities, expand the market and reduce expenditures is the original intention of Dow DuPont.
.

　　Event 9 IPO: Three Trees became the first private listed company

　　On the evening of December 16, 2015, the official website of the China Securities Regulatory Commission (CSRC) issued the "Announcement on the Audit Results of the 206th Meeting of the Main Board Issuing Examination Committee in 2015", which showed that the IPO application (first issue) of Sankeshu Paint Co.
, Ltd.
was approved .
As a result, the 8-year IPO application has finally landed.
It is worth mentioning that with the successful entry of Sankeshu Coatings, the A-share main board market will usher in the first share of Chinese private coatings companies.
The successful listing of Shu Paint will speed up the capitalization of private coating companies.

　　According to incomplete statistics, there were three coating companies that were successfully listed on the NEEQ in 2015.
The main ones are: Anhui Linghu Paint Co.
, Ltd.
, Shanghai Excilon New Material Co.
, Ltd.
, and Huierming (Fujian) Chemical Industry Co.
, Ltd.
, Jiangsu Hailong Nuclear Technology Co.
, Ltd.
, Guangxi Qise Pearlescent Material Co.
, Ltd.
, Zhongshan Yonghui Chemical Co.
, Ltd.
, Jiangsu Runtai Chemical Co.
, Ltd.
The main raw material companies for the NEEQ include Jiangsu Lianrui New Materials Co.
, Ltd.
, Anhui Jiazhi Xinnuo Chemical Co.
, Ltd.
, and Shantou Jinsenyuan Chemical Co.
, Ltd.
.

　　Comment: This time, the IPO application (initial issue) of Sankeshu Coatings Co.
, Ltd.
was approved, and it has obtained the capital to develop toward the industry giant.
Through its role as a model, more private coating companies will grow up and change their business ideas.
Three Trees has been on the market for many years.
Among them, product environmental protection and environmental protection are the most important issues.
Therefore, it is worth noting that a company needs to have a keen sense of smell and the ability to perceive the direction of market development.
Supervise the production quality problems of enterprises, so that enterprises can enter the top 100 enterprises as soon as possible.
(Source: Global Coatings Network) (For more information, please log in: Global Coatings Network http:// )