Coatings industry
The coatings industry is a subsidiary of the larger chemicals industry; it manufactures a wide variety of products, including house paint, the dye for aluminum cans, rustproofing, fireproofing, waterproofing, and salt-water resistant coatings, automobile finishes, and products for almost all products, wood, metal, or plastic that need to be sealed and/or colored, whether retail or business-to-business products.
The world coatings industry today is not yet a real oligopoly. The top firm, Akzo Nobel, owns only about 8% of the market, and the top five companies own about 30%.The top 11 companies come from the US, Japan, and Europe. Most have extensive multinational operations. Many of these companies are involved in other manufacturing areas, most especially chemicals. Almost all are expanding operations into China, India, South America, and/or Eastern Europe.
The chart below shows the top eleven, as documented in the 2005 survey by Paint and Coating Industry magazine. The figures reflect coatings revenue only, when companies are in other businesses as well.
Coatings Industry Leaders
| Company |
HQ |
2004 rev. (billions) |
Notes |
| Akzo Nobel Coatings |
Netherlands |
$6.3 |
Parent company also owns chemical and pharmaceuticals divisions |
| PPG Industries |
USA |
$5.2 |
Formerly Pittsburg Paint; has joint venture with Kansai Paint |
| Sherwin-Williams |
USA |
$4.8 |
Mainly in architectual area; large retail chain in US |
| Dupont Coatings |
USA |
$4.0 |
Parent company is a leading chemical player |
| ICI Paints |
UK |
$3.9 |
Mainly in architectual area |
| BASF Coatings |
Germany |
$2.4 |
Parent company is the leading chemical player |
| Valspar |
USA |
$2.2 |
In both decorative and industrial areas |
| SigmaKalon Group |
Netehrlands |
$2.0 |
Owned by equity group Bain Capital |
| Nippon Paint |
Japan |
$1.9 |
Strong in Japanese market |
| Kansai Paint |
Japan |
$1.6 |
Owns a joint venure with PPG for automotive paints |
| RPM International |
USA |
$1.6 |
A holding company for varied manufacturers, many of them in coatings, most related to building, |
That coatings might be hard to do dominate overall is no surprise. The cost of entry into the market is relatively low compared with more complex manufacturing industries. On the other, increasingly strict environmental laws are requiring the companies to put more and more into R&D.
Nevertheless, there are signs that this sector may be in the next few years ready to become a loose oligopoly.
Most of the companies in the list have been buying smaller rivals over the past few years. In 2005 the buying slowed down somewhat in the US, thanks to an off year.
2004
SigmaKalon entered into a joint venture with South Korea's Samsung, which has a coatings division.
Valspar bought De Beer Lakfabrieken B.V., a Dutch maker of automotive coatings.
Valspar bought Samuel Cabot, a specialty paint manufacturer in the US.
DuPont bought Lakiery Proszkowe Sp., a Polish paint company.
Sherwin-Williams bought Duron, Inc and Paint Sundry Brands, both US companies.
Akzo Nobel bought ALTANA Chemie AG's Rhenacoat S.A., French manufacturer.
Akzo also acquired Swiss Lack, the leading Swiss paint manufacturer.
Akzo and BASF traded some assets in the coatings field.
2005
RPM acquired AD Fire Protection Systems, which makes fireproof coatings.
RPM acquired OKON, a water-sealing brand.
SigmaKalon bought Primalex Brasy, the largest Czech paint manufacturer.
PPG bought paint company Iowa Paint.
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