Strengthen the resource advantage Which coating enterprises are most likely to embark on the road of merger?

China Coatings Network
News:
coatings
industry after years of development is becoming more and more mature, but due to the impact of the environment, the industry was once like a cold wave. Therefore, more and more enterprises began to find another way out, and merger and cooperation is the choice of many enterprises. For
coating enterprises
it is really difficult to cope with the vagaries of the market on their own, if through mergers can strengthen their own resource advantages, then it is also an effective crisis response, and the following three types of enterprises are most likely to embark on the road to mergers.
It takes a long time to get into a new or unfamiliar segment, starting from the beginning, but if the financial strength is sufficient, many paint companies are willing to choose the merger model to enter this segment, with the aim of quickly participating in the cake segment of this segment."
are usually in good shape, with terminals growing fast, and factories in short supply of terminals, so they need to buy and acquire smaller factories to quickly increase plant capacity. At present, some large brand factories in the industry are swallowing up some small factories, this annexation is characterized by the annexation of small funds, integration is not difficult, the annexation of small factories around large enterprises, production capacity and technology can meet the requirements of large factories, annexation and integration can be immediately added to production capacity.
This is a bit like outsourcing the business of large factories, when big factories perform well, you can network them up to integrate production, when big factories are not performing well, you can kick them out to reduce the burden, large factories can be very flexible capacity scaling. Of course, this is an unfair market competition for small factories, but they do not have the ability to turn things around.
From the end-market point of view, we live in product integration enterprises are more competitive, so some categories of relatively single enterprises in the existing capacity of the factory, want to expand the end product line, or mutual foundry cooperation, this is a low capital, relatively small risk integration model;
For coating enterprises, the appropriate merger and reorganization can help enterprises to obtain further development in the fierce competitive market, but on the other hand, in the market competition environment is particularly complex, mergers also have certain risks. Although mergers have become an irreversible trend under the survival of the industry, companies need to maintain a rational attitude before they can get involved. Faced with the new situation of merger and reorganization of the industry, coating enterprises should always do a "medical examination" for themselves, carefully examine the development of enterprises, and actively make strategic adjustments or through mergers and reorganizations to obtain the "new life" of enterprise development.