A Profile of the Central and Eastern European Paint Industry, 2nd edition

Citation

(2005), "A Profile of the Central and Eastern European Paint Industry, 2nd edition", Pigment & Resin Technology, Vol. 34 No. 3. https://doi.org/10.1108/prt.2005.12934cac.011

A Profile of the Central and Eastern European Paint Industry, 2nd edition

A Profile of the Central and Eastern European Paint Industry, 2nd edition

Keywords: Paints, Coatings, Europe

Information Research (IRL) have announced the availability of a new edition of its title, A Profile of the Central and Eastern European Paint Industry.

The paint market in Central and Eastern Europe is estimated at 3,043,700 tonnes in 2004. Seven major markets account for over 80 percent of this demand, as shown in Figure 3

Figure 3

Typical growth rates expected over the next five years include Russia – 7 percent pa, Poland – 6 percent pa, Turkey – 10 percent pa, Ukraine – 10 percent pa, Hungary – 5 7 percent pa, –Czech Republic 4 percent pa and Uzbekistan – 2 percent pa.

Average growth in paint demand across the whole region is therefore expected at about 7.4 percent pa, which is expected to take paint demand to 4,341,500 tonnes by 2009. The major growth markets are Russia, Turkey, the Czech Republic and the Ukraine, although appreciable growth can expected in smaller markets such as Armenia and Azerbaijan.

Paint industries in Central and Eastern Europe are all at different stages in their growth and development now. The former planned economy of the USSR still has consequences for many; Russian paint production is dependent upon imports of raw materials for product diversification, while the virtual absence of any chemical sector in some states means that demand for paint imports is high and domestic production is low. Russia is continuing on its growth path, aided by private investment and Turkey has pulled clear of the effects of economic collapse in 2000-2001. For others, EU enlargement offers much scope for industry through foreign direct investment and free trade, with some companies already planning fresh exports to the west.

In many parts of Central and Eastern Europe there is a shortage of industrial coatings, which provide opportunities for imports and probable investment later on. The decorative coatings sector is strong in almost all countries, with vigorous competition characterising many markets as giants such as Tikkurila, RLKR, Empils, Meffert, Caparol, Sigma and Akzo Nobel turn up in several countries throughout the region. Technology-wise, these markets are now benefiting from more modern paint types, which is commensurate with the use of more modern building materials.

Dr Terry Knowles, Business Manager at IRL and author of the report said; “Raw material demand is often fulfilled through imports from western Europe, although China is proving very competitive with supplies to Central and Eastern Europe. Western raw materials may be ahead in terms of quality but as long as markets are ruled by pricing decisions and low affordability, cheaper Chinese materials will remain acceptable to paintmakers in this region. Chinese suppliers will keep Western raw materials producers on their toes for some time yet! Although Central and Eastern Europe is a good opportunity for those rooted in the mature markets of the west, they will need to be careful not to be squeezed out of the raw material supply market in the future”.

A Profile of the Central and Eastern European Paint Industry provides a general overview of decorative paint use and key industrial markets in 22 different countries, covering: Armenia, Azerbaijan, Belarus, Bulgaria, Croatia, Czech Rep, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Poland, Romania, Russia, Slovakia, Slovenia, Turkey, Ukraine, Uzbekistan

The full contents of the reports are as follows:

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  Introduction;

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  Executive Summary;

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  Background;

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  Industry Overview;

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  Major Market Review – Russia;

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  Major Market Review – Turkey;

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  Paint Markets in Central Europe;

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  Paint Markets in the Baltic States;

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  Paint Markets in Eastern Europe;

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  Paint Markets in the Caspian Region;

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  Statistical Summary and Forecast;

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  Paint Industry Associations; and

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  Directory of Paint Manufacturers.

A Profile of the Central and Eastern European Paint Industry (243 pp. and 167 tables), which includes a 64-page directory of paint companies and their contact details, is now available from IRL, priced 3,000 for a single hard- copy edition. Sections of the report, priced individually, will soon be available to purchase online at the web site: www.informationresearch.co.uk