China has seen a rapid growth in powder coating output in recent years. However, foreign brands including Akzo Nobel, Dupont Huajia and Nippon Paint are dominating the Chinese market, leaving domestic investors to flounder to survive endless price wars.

Thanks to its good coating efficiency, protective value and decorative function, powder coating has drawn attention from the whole world.

With high performance and friendly relationship with environment, powder coating industry specializing in epoxide resin terrace has exploited new markets through technical progress. Powder coating manufacturers are putting more emphasis on eliminating coating film defect, reducing thickness, improving planeness and developing more colors.

For years, powder coating industry has enjoyed a double-digit demand growth.

However, negative growth occurred in 2008, a year of financial crisis. Powder coating industry’s volume of production and sales has decreased by 13% to less than 0.7 million tons under the influence of shrinking demand and overcapacity.

With global financial crisis’s influence continuing to impact European and American areas, foreign companies are casting their eyes over the Chinese market. Akzo Nobel’s sixth powder coating factory in China has already been established in Wuhan, capitol of Hubei province in central China.

Domestic companies have to turn to the middle and low-end markets of powder coating with products of relatively poor quality and low price, while foreign companies have already dominated the high-end ones with effective brand building and research-and-development capabilities.