07.01.14
09 Kansai Paint Co., Ltd.
Osaka, Japan
http://www.kansai.co.jp/global_site
PUBLIC COMPANY
YEAR ESTABLISHED: 1918
REVENUE: $3.126 billion s (2012: $3.122 billion)
MARKETS SERVED
• Automotive coatings • Decorative coatings • Industrial coatings • Marine and protective coatings
KEY EXECUTIVES
Hiroshi Ishino, president; board of directors: Mitsuhiro Fukuda, Masanobu Ota, Kunishi Mouri, Masaru Tanaka, Yoshikazu Takahashi, Koji Kamikado, Hidenori Furukawa, Shigeaki Nakahara.
Operating in Japan, Europe, the U.S., Southeast Asia, India and China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets. It divides its business into automotive (39 percent), industrial (27 percent), decorative (27 percent), and marine and protective (7 percent) segments.
With $3.126 billion in in sales revenue for 2013, Kansai Paint operates three state-of-the-art automotive paint plants from its headquarters in Osaka, Japan and is the leading supplier of automotive coatings to Toyota, Suzuki, Nissan, Honda, Peugeot and Renault worldwide.
Kansai’s Business Overview by Segment
Japan: In the field of automotive OEM coatings, in the first half of the year the government policy of subsidies for the purchase of so-called eco-cars seemed to bear fruit and as a result sales increased. The second half of the year saw a reduction in the number of automobiles manufactured due to the end of the subsidy system and a reduction in the number of automobiles exported, however looking at the entire period under review there was an overall growth in sales. In the field of industrial coatings Kansai recorded a slight decrease in sales, even with an increase in demand for coatings applied to automobile components. In the fields of auto refinishing, decorative and protective coatings, Kansai saw an increase in sales for the term under review due to its efforts to expand sales of new products. In the marine coatings, demand for new vessel construction continues to suffer and as a result registered a slight decrease in sales in this sector.
India: In the field of automotive coatings, the high cost of fuel and high interest rates have combined to blunt the growth of auto sales, however, sales of coatings for the entire period under review have continued to grow. Despite the slowdown in the growth of the Indian economy, Kansai saw continued growth in decorative coatings. However, the escalating cost of raw materials continues to put pressure on its profits.
Asia: In Thailand, solid exports combined with the effect of government policy has led to a significant increase in the number of automobiles sold during the period under review, and in Indonesia, domestic demand continued to grow steadily, both factors contributing to an increase in our revenue and profits. In China, the slowing pace of economic growth, coupled with a worsening in relations between Japan and China, led its main customers to reduce output for a short period, which caused a reduction in sales. PT.Kansai Prakarsa Coatings, a company that became a consolidated subsidiary in April 2012, now contributes to its consolidated business results.
Africa: Kansai Plascon Africa Ltd. (originally trading under the name Freeworld Coatings Ltd.), a company based in the Republic of South Africa, became a consolidated subsidiary in April 2011 and contributes to its consolidated business results for the entire period under review.
Other Regions: Despite a slow-down in economic growth in Turkey accompanied by a worsening of the sovereign debt crisis in Europe, Kansai’s revenue registered an increase, especially in the field of industrial coatings. Moreover, with the recovery in North American automotive sales, equity in earning of affiliates increased, which also contributed to this growth in revenue.
Africa’s number one coatings company, Kansai Plascon Africa Limited has partnered with Astra management and staff to acquire a 63.25 percent interest in the issued share capital in Astra Industries Limited, from the Finance Trust of Zimbabwe (Private) Limited. The deal, worth in the region of $5.5million, will place Kansai Plascon at the head of the coatings market in Zimbabwe. The acquisition shows Kansai Plascon’s faith in Zimbabwe, which is in the process of rebuilding its economy, as well as the confidence it places in the experienced management team that heads up Astra. Astra Paints, Astra’s major subsidiary, is Zimbabwe’s leading paint company. The other operating subsidiary is Astra Chemicals, which markets and distributes a diversified range of chemical products to industry. Astra Paints is currently the largest paint manufacturer in Zimbabwe and has two operating factories in Harare and Bulawayo. Astra Paints also enjoys 40 percent of the market share in Zimbabwe, with an especially strong footprint in Harare and Bulawayo. One of Kansai Plascon’s key strategies is to expand its leadership position into the rest of Africa. The inclusion of Astra Paints in Zimbabwe further strengthens Kansai’s presence in Southern Africa, as it already has factories and brand presence in Botswana, Namibia, Zambiaand Malawi. Where Kansai Plascon does not have a factory in a region, it exports out of South Africa into retail outlets and directly to contractors. It has been exporting to various countries in Africa since 2004 including: Mozambique, Seychelles, Mauritius, Kenya and Nigeria. Hiroshi Ishino, president of Kansai Paint, indicated that it has been Kansai’s intention to invest in Africa through its holding in Kansai Plascon. This investment, he said, is the first major acquisition since Kansai Paint acquired Freeworld in 2011. According to Kansai Plascon’s chief executive officer, Nauman Malik, the acquisition of Astra Paints, Zimbabwe, will further entrench Kansai Plascon’s leadership position as the number one coatings company in Africa. “The acquisition will allow the organization to focus further on its expansion plans and its aim to continue leading the industry.”
Osaka, Japan
http://www.kansai.co.jp/global_site
PUBLIC COMPANY
YEAR ESTABLISHED: 1918
REVENUE: $3.126 billion s (2012: $3.122 billion)
MARKETS SERVED
• Automotive coatings • Decorative coatings • Industrial coatings • Marine and protective coatings
KEY EXECUTIVES
Hiroshi Ishino, president; board of directors: Mitsuhiro Fukuda, Masanobu Ota, Kunishi Mouri, Masaru Tanaka, Yoshikazu Takahashi, Koji Kamikado, Hidenori Furukawa, Shigeaki Nakahara.
Operating in Japan, Europe, the U.S., Southeast Asia, India and China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets. It divides its business into automotive (39 percent), industrial (27 percent), decorative (27 percent), and marine and protective (7 percent) segments.
With $3.126 billion in in sales revenue for 2013, Kansai Paint operates three state-of-the-art automotive paint plants from its headquarters in Osaka, Japan and is the leading supplier of automotive coatings to Toyota, Suzuki, Nissan, Honda, Peugeot and Renault worldwide.
Kansai’s Business Overview by Segment
Japan: In the field of automotive OEM coatings, in the first half of the year the government policy of subsidies for the purchase of so-called eco-cars seemed to bear fruit and as a result sales increased. The second half of the year saw a reduction in the number of automobiles manufactured due to the end of the subsidy system and a reduction in the number of automobiles exported, however looking at the entire period under review there was an overall growth in sales. In the field of industrial coatings Kansai recorded a slight decrease in sales, even with an increase in demand for coatings applied to automobile components. In the fields of auto refinishing, decorative and protective coatings, Kansai saw an increase in sales for the term under review due to its efforts to expand sales of new products. In the marine coatings, demand for new vessel construction continues to suffer and as a result registered a slight decrease in sales in this sector.
India: In the field of automotive coatings, the high cost of fuel and high interest rates have combined to blunt the growth of auto sales, however, sales of coatings for the entire period under review have continued to grow. Despite the slowdown in the growth of the Indian economy, Kansai saw continued growth in decorative coatings. However, the escalating cost of raw materials continues to put pressure on its profits.
Asia: In Thailand, solid exports combined with the effect of government policy has led to a significant increase in the number of automobiles sold during the period under review, and in Indonesia, domestic demand continued to grow steadily, both factors contributing to an increase in our revenue and profits. In China, the slowing pace of economic growth, coupled with a worsening in relations between Japan and China, led its main customers to reduce output for a short period, which caused a reduction in sales. PT.Kansai Prakarsa Coatings, a company that became a consolidated subsidiary in April 2012, now contributes to its consolidated business results.
Africa: Kansai Plascon Africa Ltd. (originally trading under the name Freeworld Coatings Ltd.), a company based in the Republic of South Africa, became a consolidated subsidiary in April 2011 and contributes to its consolidated business results for the entire period under review.
Other Regions: Despite a slow-down in economic growth in Turkey accompanied by a worsening of the sovereign debt crisis in Europe, Kansai’s revenue registered an increase, especially in the field of industrial coatings. Moreover, with the recovery in North American automotive sales, equity in earning of affiliates increased, which also contributed to this growth in revenue.
Africa’s number one coatings company, Kansai Plascon Africa Limited has partnered with Astra management and staff to acquire a 63.25 percent interest in the issued share capital in Astra Industries Limited, from the Finance Trust of Zimbabwe (Private) Limited. The deal, worth in the region of $5.5million, will place Kansai Plascon at the head of the coatings market in Zimbabwe. The acquisition shows Kansai Plascon’s faith in Zimbabwe, which is in the process of rebuilding its economy, as well as the confidence it places in the experienced management team that heads up Astra. Astra Paints, Astra’s major subsidiary, is Zimbabwe’s leading paint company. The other operating subsidiary is Astra Chemicals, which markets and distributes a diversified range of chemical products to industry. Astra Paints is currently the largest paint manufacturer in Zimbabwe and has two operating factories in Harare and Bulawayo. Astra Paints also enjoys 40 percent of the market share in Zimbabwe, with an especially strong footprint in Harare and Bulawayo. One of Kansai Plascon’s key strategies is to expand its leadership position into the rest of Africa. The inclusion of Astra Paints in Zimbabwe further strengthens Kansai’s presence in Southern Africa, as it already has factories and brand presence in Botswana, Namibia, Zambiaand Malawi. Where Kansai Plascon does not have a factory in a region, it exports out of South Africa into retail outlets and directly to contractors. It has been exporting to various countries in Africa since 2004 including: Mozambique, Seychelles, Mauritius, Kenya and Nigeria. Hiroshi Ishino, president of Kansai Paint, indicated that it has been Kansai’s intention to invest in Africa through its holding in Kansai Plascon. This investment, he said, is the first major acquisition since Kansai Paint acquired Freeworld in 2011. According to Kansai Plascon’s chief executive officer, Nauman Malik, the acquisition of Astra Paints, Zimbabwe, will further entrench Kansai Plascon’s leadership position as the number one coatings company in Africa. “The acquisition will allow the organization to focus further on its expansion plans and its aim to continue leading the industry.”