“The water-borne coatings market will continue to grow“
You have expanded your capacities at your water-borne plant in Jiading/China. Why?
Robert Roop: Sustainable solutions are a growing trend and macro-growth driver, particularly in the Asia Pacific region. This is the second time in five years we’ve expanded our water-borne production capabilities in the Jiading plant. This latest expansion will more than double the plant’s production capacity enabling us to stay at the forefront as well as positioning us for future technology advancements.
How do you rate the current and future demand for water-borne systems in that region?
Roop: As emissions standards become stricter, there is a requirement for sustainable coating products to meet these requirements. According to a recent report, the global water-borne coatings market will reach EUR 73 billion by 2027, with China alone forecasted to reach a projected market size of EUR 15.5 billion by 2027. The advancement of water-borne coatings technology means customers are eager to convert and we are excited to provide them with solutions to make the transition as easy as possible. And the more the industry continues to upgrade to sustainable products driven by regulations such as the Green Deal in the EU, the more the water-borne coatings market will continue to grow. The growth is also in part down to the technology behind water-borne coatings, which is advancing and enabling customers to achieve equal – or improved – appearance properties compared to higher emission products.
The expansion will focus on automotive, commercial vehicle and industrial markets in China. How will these three segments develop in that region?
Roop: These segments in China are being driven by water-borne coating technologies, which, in turn, is also being impacted by two main trends. The first is policy and regulation. The second is the demand from automotive manufacturers and industrial OEMs. China is a rapidly growing market full of potential, not to mention it is the world’s largest automobile market, both in terms of supply and demand.