28 November 2012 07:45 [Source: ICIS news]
GUANGZHOU (ICIS)--Overall demand of pigments are expected to recover from the current slump in the first quarter of 2013, driven by growths in China and other Asian countries, a company executive of Germany’s LANXESS said on Wednesday.
“We’re very hopeful for the first quarter [in 2013] when demand will pick up again,” said Joerg Hellwig, general manager of LANXESS’ inorganic pigments, in an interview with ICIS at the sidelines of the China Coat 2012 exhibition.
The company is hopeful for the Chinese market because the new government will come up with a lot of measures to boost the economy, which will bring growing sales opportunities, he added.
“In other regions, US and North American economies are both picking up. In the Europe, Germany is very strong, although [situations in] certain countries such as Italy, Spain and France are very difficult at the moment,” he said.
Hellwig added that the next year’s biggest challenges would be the ongoing crisis in eurozone and the uncertainties in China in credit and monetary policies.
Like other producers, LANXESS’ pigments business encountered difficulties in the second half of this year, partly because of the economic slowdown in China, according to Hellwig.
“The first six months were very good for us. In the third quarter, there was a decline in order income,” he said.
Moreover, many customers do not want to have too high inventories in their warehouses now because it is nearing the year-end, he said.
However, the overall in 2012 will again be “very successful” and very satisfactory, he added.
LANXESS does not publish figures of special business but its pigments sales will definitely be growing this year comparing with 2011, he said.
LANXESS has a pigment production capacity of 350,000 tonnes/year and has been running the plants at full load this year.
Hellwig said that commitment to the industry and service-driven are key elements for LANXESS’ success.
The company only focuses on producing inorganic pigments.
China Coat 2012 is held on 28-30 November.
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