The current position:HYCAN HOLDINGS > PPG Industries promotes the continuous growth in its coating business in China
PPG Industries promotes the continuous growth in its coating business in China
News from Network for Domestic and Foreign Coatings: Despite the global economic outlook is bleak, China's economic growth has slacken, PPG Industries of the U.S. still undertakes two major projects in China marching its road of expansion: one project is on green water-based coatings and industrial coatings in Tianjin; the other project is about the production by the resin reacting device in Zhangjiagang soon to be realized in double. Both projects are to be completed in the next 12 to 18 months. China has become the most important market to PPG Industries whose marketing strategy in China has been revealed by a reporter via an exclusive interview with Mr. Michael Horton, the president of PPG Asia Pacific.

Growth momentum is still bullish.

According to Michael Horton’s frank opinions, in the past five to ten years, the demand in Chinese coating market has grown rapidly; although to some degree it declines impacted by the overall global economy this year, the Chinese market is still optimistically promising for the next three to five years. “In China’s ‘the Twelfth Five-Year Plan’, the focal point is the sustainable growth which is fully consistent with the marketing strategy and the working goal at the PPG Industries”, said Horton.

As for the prospect of the development of industrial protective and marine coatings, according to Horton’s analysis: "Industrial protective and marine coatings constitute a major business for PPG, presenting a lot of opportunities especially in China, particularly for the industrial protective coatings. As far as is known, the opportunities for industrial protective coatings exist everywhere in any newly built airports and factories in China, including construction, steel structures as well as some drilling platforms along the coast, etc. But as to the marine coatings, the business has declined slightly due to the influence of the decline in trade." However, Horton remains confident in making the coatings business in China reach 5% to 10% growth rate for the PPG Industries in the next 5 years.

Propelling on the course of investment 

Frankly speaking, China is such an important emerging market to PPG, as per Horton, that PPG shall continue to invest in China to ensure the fulfillment of PPG’s plan of continuous growth in China.

Currently two of PPG’s major expansion projects are underway in China: the Tianjin Project and the Zhangjiagang Project. In Tianjin, two production plants are built respectively under two different business sectors of PPG where one plant is indented for the production of water-based green coatings for the automotive industry while the other for the production of industrial coatings supporting the agricultural and construction equipment. In Zhangjiagang of Jiangsu, PPG adds two sets of resin reacting devices to the existing production facility such that the production capacity may end up in double. Michael Horton further indicates that the two projects are without doubt of the world class, whether in terms of production technology, production techniques, or in terms of environment protection. "These two reactors will be completed in the next 12 to 18 months." said Horton. 

Michael Horton hopefully points out that China is a very attractive market to PPG which mainly focus on the eastern coastal region, but is inspired by the opportunities, as shown in the China’s blueprint for the development of Central and Western China, for us to expand our business development there.

“Color” promotes the sustainable development

With respect to coating colors, Michael Horton offers his insightful interpretation: "Since we are in the coating business, color plays an important role in PPG’s strategy and R&D. We regularly discuss and analyze with our customers about the trend of color for three to five years to come, or about the change of color from the standpoint of fashion, or about the study of the change of color from the color preferences perspective in different regions."

According to Horton’s analysis, the user bases of mobile phones, computers and other electronic products in China are extremely huge. Other than product performance, color tends to directly affect consumers' decision on procurement such products. Color is also the key factor in the construction market and house decoration field.
Michael Horton points out: "China's market for consumer products in electronics, automotive and construction industries is way too attractive." To this end, PPG has developed a tool called "Sound of Color" which is available online free of charge for users to take advantage of the powerful color selection function that the tool offers. As a result, customers are able to give play to their creativity, design and collocate colors as they wish.
Furthermore, based on the "Proposal on the Core Market Brand Awareness", PPG has also launched the campaign Version 2.0 which focuses mainly on the values of the resolutions offered to each business sector. In order to distinguish itself from other competitors, PPG suitably presents three key factors: innovation, sustainability and color. Color has hence become a very important part of the PPG.

Finally, as Michael Horton concludes, he himself shall do his own very best to make PPG sustainably grow in Asia Pacific. Meanwhile, he is to continue to attach concerns and emphases to the importance of China to PPG development while increasing the representation of China in PPG’s overall business. 
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