It's reported that the biggest news in the paint and coatings industry in the first half of this year was the vibrant advertising campaigns launched by major paint and coatings brands. However, the real pillar of China's paint and coatings industry lies in the relatively unknown industrial paint and coatings sector. It's understood that from January to June 2013, architectural paints and coatings accounted for only 29% of national paint and coatings production, while industrial paints and coatings, the mainstay of China's paint and coatings industry, accounted for a staggering 71%. However, many Chinese paint companies currently have profit margins below 10%, exceeding the industry's normal profit threshold.

Wide Applications

Industrial paints are used for the protection and decoration of industrial equipment, such as ships, containers, bridges, gas tanks, port machinery, chemical equipment, railroad tank cars, electrical machinery, storage tanks, pipeline linings, various steel structures, and concrete. Industrial paints include asphalt paints, alkyd paints, amino paints, epoxy paints, polyurethane paints, acrylic paints, silicone paints, fluorocarbon paints, and rubber paints.

Decorative and Protective

Industrial paints offer not only decorative but also protective properties, among other advantages:

1. Vibrant colors and excellent decorative effects;

2. Excellent performance, diverse functions, and excellent protective effects;

3. A wide range of application methods, including spraying, roller coating, and brushing.

Chinese industrial paint companies face pressure from both inside and outside.

A survey shows that global demand for industrial paints and coatings has been growing at an average annual rate of 3.5% in recent years. By 2011, the global coatings market had reached 27 million tons, representing over US$93 billion. Of this, demand for industrial paints in the Asia-Pacific region is expected to reach 8.9 million tons. Amidst this buoyant global industrial paint market, top international industrial coatings brands are intensifying mergers and acquisitions and accelerating their development in the Asian market, particularly in China. However, many Chinese coatings companies currently have profit margins below 10%, exceeding the industry's normal profit threshold. Normally, paint manufacturers should achieve a profit margin of 20%-30%, or at least above 10%.

The rapid development of global industry is placing new demands on the performance of industrial coatings. Today, the global chemical coatings industry faces new challenges. Therefore, industrial companies must keep abreast of the developments in the global coatings industry and keenly analyze market trends. Only by doing so can they develop new high-tech industrial coatings that keep pace with and promote the rapid development of my country's industry.