1. Strategic mergers and acquisitions and strengthening their capabilities In recent years, the world's paint industry has a distinct feature: In order to achieve global rationalized business goals, world-class companies have adopted strategic mergers and acquisitions, cooperation and joint ventures to form a scale effect of market integration. Akzo Nobel, one of the world's largest paint companies, was formed by the merger of Akzo, the Netherlands, and Nobel, Sweden. After the United States Sherwin-Williards acquired Hutton for US$830 million, it has successively acquired two paint companies in Chile and Brazil. Aksu-Nobel company recently carried out business mergers and acquisitions, including the British company Plascon, including paint companies. It also plans to merge with SigmaKalon of the Netherlands. SigmaKalon is the coating business unit of Atofina, which is the second largest decorative paint manufacturer in Aksu behind Europe. Through mergers and acquisitions and enhancements, Aksu-Nobel will further expand its coatings business in the United States and Asia.
Recently, Aksu-Nobel and Rom-Haas also strengthened their competitive position in the global coatings business by acquiring the US$160 million powder coating business of Ferro, USA. Froe is the world's fifth-largest producer of powder coatings. Froe Co., Ltd. sold US and Asian powder coatings business to Aksu Nobel for US$73 million. The company’s 2001 sales in the United States and Asia were US$100 million. The business includes production facilities in Tennessee and Ohio, USA, and production facilities in Ningbo, China and Ulsan, Korea. Another 60 million U.S. dollars will transfer its European operations to ROHM-HAS. The European business will have annual sales of 80 million U.S. dollars, including production facilities in the United Kingdom, Germany, and Spain. This kind of acquisition, merger, and integration has become a trend and it has also spread to developing countries.
The direct result of these trends is that the dominant products of large companies are more monopolistic and competitive. According to statistics, the annual output of the largest 10 paint companies in the United States accounted for more than 70% of the total amount of paint in the United States. The annual output of the world's 10 largest paint companies accounts for 1/3 of the world's total paint, and the market share reaches 60%. Akzo Nobel is the largest paint manufacturer with annual sales of 5.6 billion euros. The company plans to double its paint sales over the next five years, including joint ventures with other paint companies.
2. Accelerating R&D, launching new products, accelerating research and development, and continuously introducing new products are the mainstream of the continuous development of the paint world today. The company's Morton Powder Coatings Division and Cyctics recently formed a research and development complex to develop a low-viscosity powder coating formulation that will use Cyctics' cyclobutylene terephthalate (CBT) resin to produce thin-layer thermoplastic coatings. CBT has a low viscosity and can be used for thinner thermoplastic coatings. In addition, CBT-based coatings have no emission pollution and have the toughness of engineering plastics. Morton will be committed to developing powder coating formulations with advanced functional features to push CBT resin into the powder coating market.
Wiener Company launched a new product of German shield ceramic thermal insulation in the Chinese market. This German shield thermal insulation coating (THERMO-SHIELD) consists of tiny vacuum ceramic microspheres and environmentally compatible emulsions that are compatible with it. It has a strong adhesion with the wall, metal, wood products and other substrates, directly smear 0.3 mm or so on the surface of the substrate, you can achieve the purpose of thermal insulation. The test results of the use of civil buildings by the American House Laboratory showed that the summer air-conditioning energy consumption can save at least 64%. This kind of paint has been applied to civilian buildings and industrial facilities by the aerospace field, and has market potential in chemical liquid storage tanks, tanker thermal insulation and surface corrosion protection of various equipment. The “Anshuute” high-tech new coating invented by Raymond-Brook, winner of the Australian Nobel Prize in Chemistry, is leading a major innovation in coating technology. (To be continued)

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