subject: Breakthrough Curve Of National Paint Companies Need To Cross The Threshold Of 3 [print this page] Throw out the last days of 2009, the topic was aroused by the Chinese Paint Industries such widespread concern, not for some trendy cause, but behind the serious economic issues. From China Paint The growth history in the last decade in China, when the paint had a chance to grow up, they ushered in the WTO, foreign investors rushed into making domestic paint company by surprise. Of course, the growth stage of immature face of the mature experienced international companies is not surprising. Resources have not been in the past, foreign investors holding Valspar paint giant has been working with well-known foreign brands of Dulux paint, Nippon Paint to start competition in the market, although the CRC was not in the contest they strive, 1 but only temporarily by the market opportunities, not to say that multinational companies have the same stage with the strength. Then rapidly grew up Jiabao, Big Treasure, Bauhinia, the United States Tu persons, and, most recently spending a lot of money on CCTV as Advertisement Standard king none of the three trees and other national paint companies on Dulux, Nippon and other foreign brands encirclement caused influential. Industry was pessimistic estimates of national paint companies in China face stiff foreign competition, the coatings industry will be the same as the camera industry, as there is no national brand globally recognized industry. Why become a national paint company
foreign acquisition target? Foreign-funded enterprises, a no shortage of funds, two no shortage of Management Three no shortage of technology, the only thing missing Sell Channels and networks. Valspar and Carpoly before we see Cooperation That wants to channel, but that seems to be ineffective. So there will be a later acquisition of China Resources, the Resources at that time just to have a network of health. October 2005, a World coatings giant Akzo Nobel Coatings Inc. has acquired more than Guangzhou Ted because of this willingness. Second, Financial Crisis once again raised the importance of reducing costs, "we intend to promote CRC paint products to the fast-growing global coatings market." Valspar President and Chief Executive Officer WilliamMansfield from this sentence analysis, the advantages of product oil paint Resources may With a worldwide network of Valspar exports, such advantage is that production costs can decrease processing CRC as a foreign production base.
From mergers and acquisitions itself, relative to the wisdom that the paint manufacturing companies over the past extensive use of land for investment-intensive factories, M & A native of China National Coatings business is characterized by a very few need to expand the land, as long as to renovate existing plants, upgrading of management, changes in product upgrades, one can achieve the investment objective. Therefore, under the current land shortage, foreign mergers and acquisitions the way the Chinese national enterprises, it becomes very feasible. In fact, M & A native of China's national paint companies have great potential.
National paint industry can not be optimistic about the situation
Statistics, the 2008 financial crisis, China's paint business profitability declined, losses were further expanded, paint industry, the majority of profits for foreign enterprises and joint paint all, local companies can not compete with them. The Chinese government encourages foreign investment in the form of acquisition, reorganization and transformation of domestic enterprises and participate in mergers and acquisitions news was announced, no doubt to the people in the eyes of the Chinese National Coatings cast a shadow over prospects for industrial development. Based on the situation worse, some industry insiders believe that national businesses to face recent years, prices of raw materials continued to pressure from multinational companies to face international pressure on technology and price competition, some of the domestic paint industry overwhelmed. Not yet mature in their own cases, local national paint company is very perilous.
According to incomplete statistics shows that even in 2009 the economic downturn, the Chinese paint production or up to 900 million tons, the enormous development of the Chinese paint market makes room for increased foreign investment in China. Akzo Nobel, Nippon of Japan have been firmly established in the China market status, a new U.S. plant in Zhaoqing Xuanwei has been put into operation in the north of Germany have opened Fang paint market in China currently, the largest of several house paint multinationals have entered the domestic market. At present, how strong survive and develop under the pressure of foreign capital is urgent need of national paint companies, a very serious issue.
Breakthrough Curve Of National Paint Companies Need To Cross The Threshold Of 3
