Fail! These paint companies are out (attached list)

016 is arguably the most difficult year for
coatings companies
, on the one hand, some markets tend to saturate,
coatings
product sales are difficult to grow, on the other hand, the soaring prices of raw materials, so that many paint companies are threatened. In October, the Chinese government launched the most stringent real estate control policies, directly affecting more than 80 related industries, paint companies suffered. China's economic downturn, like the heavy handcuffs and chains that paint companies have put on, has struggled. It is understood that in 2016, the paint industry, nearly one-third of small and medium-sized enterprises in a loss-making state, the direct consequence of overcapacity is the enterprise capital turnover difficulties, and then a vicious circle, enterprises have been closed down.
"extensive development" buried the collapse of the boom pen
China's current paint industry, about 80% belong to small and medium-sized enterprises, and this part of the small and medium-sized paint enterprises occupy a large part of the domestic paint market share. Under the influence of environmental pressure, supply-side reform, raw material prices continue to soar and other factors, this 80% of paint enterprises, more than 50% of small paint enterprises will face the dilemma of closure, even if not closed down medium-sized paint enterprises, will also take the way of layoffs to reduce the operating costs of enterprises, to ensure the day-to-day operation of enterprises. In early 2016, international chemical giant DuPont took the lead in cutting 1,700 jobs worldwide, and the pressure on small and medium-sized enterprises to produce was all the more self-evident.
, in China's paint industry in the rapid development of the same time, for today's collapse of the tide laid the pen. Since the 21st century, domestic paint enterprises are busy throughout the country to expand new factories, copy each other imitation, fight price wars, seize the market, while ignoring new products, new technology research and development, resulting in low competitiveness between domestic paint enterprises, paint product homogenization problems are becoming increasingly serious, unfair competition between paint enterprises are also commonplace, this extensive development, and ultimately make products without competitiveness, so "created" a lot of small and medium-sized paint enterprises closed down.
environmental protection policy to increase the illegal cost
the chemical industry, has always been considered a high pollution industry, under the pressure of environmental protection policy, many chemical enterprises are facing enormous survival pressure. The paint industry is one of the most representative industries, of course, can not escape the blame. The new Environmental Protection Law, Paint Consumption Tax, Furniture Manufacturing Industry VOC Emission Standards and other environmental regulations have been issued, paint enterprises as the Ministry of Environmental Protection concerned about environmental protection issues "big households", when Renren does not let become a key implementation of enterprises. In May 2016, the State Council issued the Action Plan for the Prevention and Control of Soil Pollution, which requires that by 2020, the national trend of increasing soil pollution should be initially curbed. "Ten" will focus on the supervision of oil exploration, petroleum processing, chemical, coking and other industries, the paint industry is of course listed. At the end of May, Shandong Province became the 11th provincial region (including municipalities directly under the central government) to issue a formal document notifying the pilot VOCs sewage charges, following the introduction of VOCs sewage charges for volatile organic compounds in Beijing, Shanghai, Jiangsu, Anhui, Hunan, Sichuan, Tianjin, Liaoning, Zhejiang and Hebei provinces.
with the increasingly serious environmental pollution in China in recent years, the state began to add code to environmental protection policies, and from time to time to carry out surprise inspections of the chemical industry. The Ministry of Environmental Protection directly published the supervision and reporting telephone, reported enterprises once the environmental violations are true, will face closure and rectification and heavy fines. This is the environmental protection facilities are not up to standard part of the paint enterprises, but also a stick. Not only that, recently, some provincial and municipal environmental protection departments have issued a list of enterprises to eliminate backward production capacity, in order to eliminate the closure of these lists, paint enterprises also occupy a certain share.resonant rise and rise, high cost of products difficult to rise
since 2016, raw material prices have soared. Titanium dioxide, epoxy resin, polyester resin and additives, which are the main raw materials for coatings, all show a sharp upward stance, and transportation increases to add code to the cost of coatings. The depreciation of RMB exchange rate, so that most of Our country rely on import additives paint enterprise costs greatly increased, the cost of rising, paint prices are difficult to rise, paint enterprises survival pressure. Between the current situation of the paint industry, China Paint Procurement Network recently conducted a number of domestic paint enterprises to conduct an electric visit. Most paint company leaders said 2016 profit, turnover overall fell sharply, due to rising raw materials, weak market demand, the only growth this year is the corporate debt ratio. The head of a powder coatings company is deeply worried about the current paint industry: "In recent years, the high-end market for powder coatings has long been held by multinational chemical giants, duPont, Aksu, and other international brands in order to suppress national brands, the use of their own strong financial strength, dead to suppress market prices, in the raw material prices skyrocketed, and even further low prices of finished products, resulting in many domestic counterparts are struggling."
multi-factor resonance, forcing paint enterprises to stage a "failure" of the play code, part of the maintenance of a strong division is also heavily indebted, wave up, some bankruptcy, some debt stealth, some temporary shutdown, and some choice transformation, from the Pearl River Delta to the Yangtze River Delta, China's economy is the most active two sectors of the same encountered the economic cold tide, is said to be under the nest, the end of the egg. China has more than 15,000 paint factories, the dominican effect is gradually showing, the integration of the paint industry is also officially on the stage, those who are not competitive, backward production capacity, poor quality paint manufacturers, are facing a new round of "failure" robbery.