Although water-based paint was the star product in the paint industry in 2016, with an unstoppable development momentum, it did not overshadow the brilliance of powder coatings. As a new type of solvent-free, 100% solid powder coating, powder coatings have the advantages of being solvent-free, pollution-free, recyclable, environmentally friendly, energy and resource-saving, labor-saving, and high mechanical strength of the coating film. China's powder coating industry started in 1965. In recent years, with the rapid development of the home appliance and furniture industries and the maturity of the powder coating-related industrial chain, powder coatings have achieved great development.

According to relevant statistics, in 2015, the cumulative production of coatings nationwide was 17.17 million tons, of which the total output of powder coatings was 1.85 million tons, accounting for 10.8% of the cumulative production of coatings nationwide. There were 2,385 enterprises, mainly distributed in East China and Central South China, accounting for 78% of the total. The Northwest region had the least distribution, accounting for only 1% of the total. According to data from the Coatings and Coating Application Professional Committee of the China Chemical Industry Society, in the first half of 2016, the sales volume of powder coatings from representative enterprises in China increased by 11.8% year-on-year. From the above data, it can be seen that as the environmental protection storm is sweeping across China with tremendous force, powder coatings, one of the environmentally friendly coatings, are gradually becoming a new gold mine for many coating enterprises. So in 2016, which coating enterprises have "entered the powder coating market"? Let's take a look.

January

Arkema launches new bio-based polyamide powder coating for outdoor furniture

French chemical manufacturer Arkema has recently launched its latest ultra-fine powder coatings, Rilsan® TGrey9102MAC and Rilsan® ES9132MAC, for the outdoor furniture market. Arkema's Rilsan ultra-fine powder coatings are made from 100% castor oil derived from plant-based renewable resources. They possess both high decorative and functional properties, offering excellent protective solutions for metals in harsh environments. These coatings are suitable for applications in the automotive industry, as well as in the oil, gas, and fluid transportation equipment sectors.

March

Swiss IGP Company invests in a new powder coating factory in Poland

Swiss IGP Pulvertechnik has announced an investment of approximately 15 million Swiss francs to build a new powder coating factory in Poland, aiming to strengthen its business support capabilities in Eastern Europe. It is understood that the new IGP factory in Poland is scheduled to commence production in the first half of 2017, primarily producing powder coatings and wood coatings, with an estimated workforce of around 100 employees.

April

AkzoNobel invests over 360 million to build a production base for powder coatings and decorative paints

On April 29, 2016, AkzoNobel's fourth and largest decorative paint production base in China officially commenced operations. Located in Qionglai, Chengdu, this brand-new production base marks a significant milestone in AkzoNobel's development towards the western Chinese market. Currently, AkzoNobel is investing over 360 million yuan to build a powder coating and decorative paint production base, and this new production base is one of them.

June

RPM's TCI Powder Coating Company signed a strategic cooperation agreement with BASF

TCI Powder Coatings, a subsidiary of RPM International, Inc., has signed an agreement with BASF, under which BASF grants TCI the right to sell BASF's Catho Guard electrocoat technology in designated market segments. In the future, TCI can leverage BASF's Catho Guard electrocoat technology in its market promotion based on this agreement. The market segments include off-road vehicles and heavy equipment, general decoration, office furniture, electrical appliances, etc. Additionally, TCI has also obtained application authorization in the automotive customized parts and components market.

August

The foundation stone for AkzoNobel's powder coating production base in Mumbai, India, has been officially laid

On August 29th, AkzoNobel announced the commencement of construction on its newly-built powder coating plant in Mumbai, India. With a total investment of EUR 9 million, this base will enhance the company's supply capacity in the region and is a crucial component of its organic growth plan. The Mumbai plant, with a planned production capacity of 7,000 tons per year, is scheduled to commence production by the end of 2017.

September

Hempel Coatings expands production capacity of Yantai company as its first foray into powder coatings industry

Recently, Haihong Laoren Paint (Yantai) Co., Ltd. announced a new plan to enhance its production capacity in the paint industry. According to the plan, Haihong Laoren Paint (Yantai) Co., Ltd. intends to invest USD 100 million (approximately RMB 667.7 million) to expand and renovate a project with an annual production capacity of 102,000 tons of paint. The project is located in the C-29 area of Yantai Economic and Technological Development Zone, on the south side of Chongqing Street and the west side of Xining Road. It is designed to produce 72,000 tons of solvent-based paint, 18,000 tons of water-based paint, and 12,000 tons of powder paint annually.

October

Arkema will produce polyester resins for powder coatings in India

Arkema, a French company, recently announced its plan to build a new advanced polyester powder resin production facility on the basis of its existing resin production line in Navi Mumbai, India. The new production project, with an investment of approximately $15 million, is scheduled to be completed in 2018. In addition to building a new production facility, the project will also construct a dedicated laboratory for providing application research and technical support. This project will help improve the company's service quality for powder coating users.

Sherwin-Williams Paint plans to establish Sherwin-Williams (Nantong) Paint Co., Ltd., with an annual production capacity of 3,000 tons of powder coatings

To further meet the domestic and international market demands for various high-performance coatings, Sherwin-Williams Coatings plans to establish Sherwin-Williams (Nantong) Coatings Co., Ltd. and invest in the construction of a new factory project on the plot north of Jianghe Road and west of Tongshun Road in Nantong Economic and Technological Development Zone. The total planned investment for this project is RMB 650 million, and the proposed project covers an area of approximately 53,361.31 square meters. The main works include the construction of a new liquid coating production workshop and a powder coating production workshop, as well as supporting auxiliary projects. The documents further indicate that this project plans to produce 79,000 tons of 21 types of coating products, including 29,032 tons/year of water-based coatings, 9,272 tons/year of UV coatings, 37,696 tons/year of solvent-based coatings, and 3,000 tons/year of powder coatings.

December

Axalta expands powder coating production capacity at its German factory

Recently, to meet the ever-growing market demand, Axalta Coating Systems invested in expanding its Alesta® brand powder coating production facility in Landshut, Germany, to increase and optimize production capacity. This investment bolsters Axalta's powder coating development strategy and keeps pace with the progress of powder coating business development in Europe, the Middle East, and Africa.

Summary: Powder coatings are categorized into thermosetting powder coatings and thermoplastic powder coatings. According to the powder coating data for 2015 released at the 2016 Annual Meeting of China Powder Coating and Coating Industry, in the field of thermosetting powder coatings, the market share of powder coatings for building materials (including heating and ventilation) was 26.1% in 2015, with general industrial powder coatings accounting for 20.3%, home appliance powder coatings for 19.5%, followed by furniture powder coatings at 15.1%; other application areas included 3C products at 6.3%, agricultural engineering machinery and automobiles at 6%, and functionality and corrosion resistance at 6.7%. Compared to 2014, the market share of furniture powder coatings has increased significantly. According to the latest research by Marketwired, the market size of powder coatings is expected to reach $12.48 billion in 2020.

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China is the world's largest producer of powder coatings and also the largest producer of powder coatings for automotive use. Although constrained by factors such as economic downturn and real estate regulation, the markets in East China and Central South China are gradually becoming saturated. However, benefiting from the escalating environmental pressure and the growth of industries such as automotive, electronics, and furniture, the Asia-Pacific region will become the largest consumer market for powder coatings. Powder coatings will have a significant role to play in the future, with an expected compound annual growth rate of 8.5% by 2020. The construction of China's "Belt and Road" initiative will accelerate the development of western cities, making the west a potential investment focus for coating companies. AkzoNobel's production base in Qionglai also confirms this point. In addition, apart from the continuously growing Chinese market, developing countries such as India, Russia, and Brazil are also expected to become major consumers of powder coatings in the future. Coating companies may increase their investment in these regions in 2017. The North American and European markets have already entered a mature stage, and are expected to grow slowly in the future