PPG eyes double-digit growth in China packaging coatings sales

15 May 2012 12:38  [Source: ICIS news]

GUANGZHOU (ICIS)--PPG Industries is targeting more than 10% growth on sales of its packaging coatings in China this year and over 2.5% globally, an executive at the US chemicals, coatings and materials company said on Wednesday.

“We anticipate that global packaging coatings market will grow at 2.5% in average and China’s growth will be four times or bigger. Our goal is to grow faster than the market,” said Douglas Pegg, vice president of PPG packaging coatings.

Pegg believes that China has great potential in the can market and PPG will look at providing coatings solutions for that growth.

China, the world’s biggest consumer of beers, currently has only 5-6% of its beers packaged in aluminum cans, which has a big potential for expanding. The percentage is now 50% in the US, 25% in Vietnam and 35% in Brazil, according to Pegg.

“We’re looking for the 50% [for China],” he said, adding that PPG is also working to localise production and research in China.

Pegg was speaking on the sidelines of Cannex Asia Pacific 2012 at Guangzhou in China’s Guangdong province, which ends on 17 May.

The company currently has a research and development (R&D) centre in China’s Suzhou and is expanding that facility to include polymers and resins capabilities in the future, according to Pegg.

PPG is investing more than 4% of its sales revenue on R&D, in response to changing demand and opportunities.

The company is developing products that meet the market trend, including lower volatile organic compounds (VOC), non-bisphenol A (BPA) and waterborne products, he said. 

PPG posted $14.9bn sales in 2011 and packaging coatings accounts for around 5% of total businesses, according to Pegg.

By: Fanny Zhang
+65 6780 4359

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