China Coatings Online News: The paint giant
re-painting during a period of low growth. AkzoNobel, one of the world's top three paint giants, recently signed a memorandum of cooperation with the Jing'an District Government of Shanghai to renovate old buildings and replace old houses with new ones. According to
China Coatings Online
introduced, AkzoNobel will provide paint products, funds and technical support for four renovation and renovation projects in Jing'an District, including the historical and cultural buildings of The Park Road " Chung Quanfang", Jing'an District Cultural Hall, Jing'an Temple Street Shiming Sports and Jing'an District residents of the grass-roots cultural service points. This latest collaboration is also in line with AkzoNobel's secondary re-painting strategy, which has been deployed in recent years. Earlier, AkzoNobel has launched the augmented reality technology app Dolezal Rejuvenator and launched a new home-based service.
china's real estate market over the past decade of rapid growth has benefited many related industries, coating field is one of them. And in the future economic decline, real estate high-growth era of the end of the trend, the giants have begun to lay out a secondary re-painting of the market to deal with the crisis. According to AkzoNobel, revenue growth from its secondary repaint business has been rapid, though those efforts have not yet been clearly reflected in the earnings reports, which show a general decline in the company's decorative paint business, high-performance coatings business and specialty chemicals. According to the second-quarter report, AkzoNobel achieved net income attributable to shareholders of EUR 312 million in the second quarter of 2016, a decrease of 6% year-on-year. Sales in the decorative paint business reached EUR 1,055 million in the second quarter, a decrease of 7% YoY, while sales in the high-performance paint business amounted to RMB1,473 million in the second quarter, a decrease of 5% YoY.
's other specialty chemicals business reported sales of RMB1,206 million in the second quarter, down 7% YoY. In response, AkzoNobel said earnings and falling sales were adversely affected by currency factors. Specifically, in the decorative paint business, sales in Latin America continued to decline, and sales in Europe also declined slightly. In the high-performance coatings business, sales declined due to varying market demand in various regions and increased sales were adversely affected by exchange rate factors. Overall, physical sales remained largely unchanged in some markets, offset by a contraction in demand in oil-related markets due to divestment of the paper chemicals business in 2015, adverse effects of exchange rate factors and price tightening in some markets.