Industry chain development of coating industry

In the past year, under the complex external environment, China's economic development remained at a high level, and various social hot issues emerged one after another. The coatings industry is undergoing a profound transformation, with both development and success as well as stagnation and decline.

In the past year, various medium and long-term plans of our country have been issued one after another, with clear strategies, which means that "accelerating the transformation of development mode and taking the path of innovation-driven development" has become a top priority. The development of my country's emerging industries is in the ascendant with broad prospects. Energy and chemical industries are advancing steadily. New energy technology development and industrialization have become the focus of the chemical system. A large number of new materials such as engineering plastics have developed rapidly. The world's chemical industry feels that pressure and opportunities coexist.

The national coatings industry is working hard to change from "big" to "strong". "Water-based coatings" is still the focus of the industry. Although due to various reasons and environmental impacts, the development is slow, but the development direction of "water-based" is more important than before. 

As the coating industry is a branch of the petrochemical industry, in terms of economic data, my country’s total production of anti-corrosion coatings reached more than 4.5 million tons in 2018. By 2019, my country’s total production of anti-corrosion coatings has increased to 5.35 million tons, which is the same as the previous year. The ratio increased by nearly 18 percentage points, accounting for about 23% of the total domestic paint output. The development of my country's anti-corrosion coatings industry is still improving. Progress is optimizing, efficiency is improving, operation quality is also improving, and the market is basically stable.

Problems in the domestic coating industry chain

The concept of industrial chain has actually been carried out abroad many years ago. In order to achieve profit optimization, market monopoly, and regional hegemony, some medium and large enterprises in developed countries have begun to unite various industrial departments in the same industry to form one From raw material supply, original design to production preparation, sales operation to after-sales service, technological improvement, technological innovation and research and development integrated group. The purpose is to put all the keys in the industry together to form a strong capital-market-technology is closely linked in all directions, continuously improving and improving each other, giving full play to comprehensive advantages, and achieving industry development, protection and unification. There may be problems and difficulties in each link. 

In the entire paint industry chain, the upstream is the raw material market, the downstream is the product demand market, and the midstream is our paint industry.

The impact of upstream raw materials on the industry is mainly reflected in two aspects: first, the stability of the output scale affects the stability of the supply of raw materials in the coatings industry; second, the price of raw materials affects the production cost of coatings.

From the perspective of the downstream product market, coatings are mainly supporting products in industries such as real estate, automobiles, ships, and furniture. The influence of the product market on the coatings industry is mainly reflected in the market scale and development trend of the coatings.

Statistics show that the coating industry and upstream and downstream industries have seen overall growth in recent years. The data in 2019 show that in 2018, my country produced 1.76 million tons of thermosetting powder coatings, which was 1.605 million tons in 2017, an increase of 9.7%, and accounted for 10% of the total coatings of 17.598 million tons.

The upstream and downstream industrial chains of the coatings industry have a trend of integration. The upstream of the industrial chain is the raw material market, and the downstream is the application side and end consumers. As far as the current trend is concerned, the cooperation between coating companies and upstream raw material companies can obtain a stable supply of raw materials, and the cooperation with downstream companies can promote product applications and achieve a win-win situation. The trend of upstream and downstream industry integration is gradually strengthening.

The development and innovation of any link will bring hope, brightness and future to the entire chain, but any link (enterprise) playing a bad role in the chain will also affect the survival, reputation and future of the entire chain. A sense of common responsibility brings everyone together and can form a huge force that overwhelms the ocean!

Foreign paint trends

Most of the internationally renowned companies in the coating chain have entered China. Whether it is raw material suppliers and well-known coating manufacturers, various international brands, whether it is architectural coatings or marine coatings, can be seen in the Chinese market. A considerable part of them occupy more than 70% of the Chinese market, and a large amount of renminbi flows into the pockets of the bosses of these foreign manufacturers. A war called "economic aggression" is being carried out in the Chinese paint market without gunpowder. When will China National Chemical Industry become a "manufacturing power" Towards a real paint power?

These large foreign paint companies have tangible or intangible industrial chains behind them, supporting their products. They rely on advertisements, rely on Chinese people to worship foreign businessmen, and even blindly worship some individuals, step by step to eat up large Chinese companies. China Resources and Red Lion are the best examples. The Chinese have run a famous brand in recent decades and their huge market share was swallowed by a purchase contract overnight, and tens of thousands of old Chinese paint workers have become wage earners under foreign bosses.

The industrial chain of the foreign coatings industry has a foundation and experience, and its internal game rules are very strict and orderly after decades of tempering. The concept of common interest and the concept of equality before the law are much stronger than ours.

Therefore, it is necessary for us to clean up the collaboration relationship between the companies.

On the other hand, since a single foreign enterprise (company) has the strongest technology in the world, once the industrial chain is formed, its strength and competitiveness are also very strong. They will join forces to restrict Chinese enterprises for their common interests. The company’s unique products are not for sale, "confidential", "top secret", etc., to block China or to snatch Chinese money and wealth with high prices and high profits.

We must clearly see that the foreign coatings industry is paying attention to and investing in new technologies. In order to always be at the forefront of the world's industry, they also spend a lot of manpower and financial resources on the development of high-tech and high-tech products.

They pay attention to biology, genetics, pathology, and combine organic, inorganic, physicochemical, polymer, electrochemistry, and analysis in coating science with a variety of scientific disciplines, and spare no effort to prevent pollution and improve the service life of coatings and other new materials. Questions are developed and developed. In many military areas, special coatings are researched and developed very strictly and confidentially.

In short, we learn a lot from foreign coatings, the difficulty is also very large, and the gap between China and foreign countries is also very large. We recognize this fact, but we should work together to change the status quo. The Chinese are ambitious, and the Chinese painters are more ambitious. Aspiration will definitely stand among the world's paint industry.

Starting from economic analysis and combining the gaps between Chinese and foreign coatings, we should almost see our weaknesses and gaps. But this is not terrible. The terrible is the lack of a leadership core that can truly lead the industry in hard work, from big to strong, not controlled by money and private interests. To do a good job in China's coatings industry chain can only rely on the company itself, rely on long-term sincere cooperation, rely on the consistent goal of hard work, rely on uprightness, impartiality, and the world as one's own ambition. We believe that its prospects are brilliant, but at the same time it is full of difficulties. If there is aspiration, everything will come true. For the entire national chemical industry, for our beloved coating industry, let us work together to create the future and welcome the success and growth of the coating industry chain across the country!