Kansai Paint plans to launch the Chinese production of automotive paint resins, with a facility planned to open “around fiscal 2016”.
The Japanese company is looking to meet growing demand from Japanese and Western OEMs in China.
Kansei Paint's parner in China, Hunan Xiangjiang Kansai Coating. will set up the plant in Changsha, Hunan Province. The new plant will mean that resins now imported from Japan and India can be locally sourced, with lower transportation costs.
Kansai Paint's China business generates annual sales of about 20 billion yen, or about 6% of te group total. The company says it has a market share of 60% in paint used by Japanese automakers operating in China and has also started to supply other foreign makers with China JVs.
Other major suppliers of paint resins in China include PPG and BASF.