The 'Technology-Oriented' Full-Chain Player: PPG’s Path in China’s Premium Industrial Coatings Market

The essence of this phase is shifting from 'point-specific manufacturing' to 'end-to-end value chain coverage', building a competitive moat through scale and breadth. Phase III: Strategic Upgrading and Localization 2.0 (2020–Present) Strategic Context: Chinese Enterprises Driving Reverse Innovation Since 2020, PPG’s strategy in China has entered a new stage. If the core objectives of the first two phases were 'taking root locally' and 'growing lush and vigorous', then the core objective of the third phase is 'bearing fruit'—re-exporting innovation achievements generated in China to global markets. This phase coincides with PPG’s strategic retrenchment worldwide: since 2024, PPG has divested its architectural coatings businesses in the U.S. and Canada, and reduced its global workforce by nearly 10,000 employees. Yet contraction does not equate to retreat; rather, PPG has intensified its strategic investment in China. Examples: In September 2023, PPG established its Global Coatings Innovation Institute in Tianjin Economic-Technological Development Area; since 2023, it has deepened color innovation collaboration with new-energy vehicle (NEV) manufacturers—including BYD and Chery; and PPG Architectural Coatings has pursued counter-cyclical expansion in China, operating three brands—Master Paint, Tikkurila, and Shenniuli Paint. Business Model of This Phase: 'Innovation from China, Serving the World'. By establishing its global-level Coatings Innovation Institute in China, PPG has fundamentally transformed its role—from a 'technology importer' into an 'innovation source'. Innovations developed in China no longer serve only the domestic market but are actively exported to global markets. On the customer side, PPG has forged deep partnerships with leading Chinese NEV makers—including BYD, Chery, and Xiaomi—evolving from a 'supplier' into a 'joint R&D partner', co-defining color and material standards for new-energy vehicles. Meanwhile, while PPG is streamlining non-core businesses globally, it continues to ramp up R&D investment in China. Its strategic logic is clear and resolute: upgrading China from a 'manufacturing base' to an 'innovation engine', leveraging China’s innovation velocity to fuel global business growth. Summary: PPG China has evolved—from 'taking root locally' to 'growing lush and vigorous', and finally to 'bearing fruit'; from 'importing technology' to 'exporting innovation'—re-exporting China-born innovations to global markets. As of 2025, PPG China’s revenue reached USD 1.587 billion (approx. RMB 11.34 billion), accounting for 10% of PPG’s global total revenue—making it one of PPG’s core markets. Challenges Faced: 1. External macroeconomic and industry pressures. Ongoing global macroeconomic volatility continues to pressure PPG, with weakening demand, inventory destocking pressure in the automotive refinish coatings segment, sluggish global industrial demand, and inflationary pressures on raw materials such as epoxy resins—all posing short-term operational challenges. PPG forecasts flat or low-single-digit earnings per share growth for the first half of 2026. 2. Domestic substitution. The Chinese automotive coatings market is undergoing profound transformation. Domestic players have already captured over 35% market share in commercial vehicle coatings and refinish coatings; companies like Huahui Coatings have entered supply chains of BYD and Avatr. Although foreign giants like PPG retain strong technological and production advantages in passenger car body coatings—advantages unlikely to be eroded in the short term—the trend toward domestic substitution is irreversible. 3. Internal transformation pains. PPG is undergoing large-scale strategic retrenchment.

2026 Global Top Ten Marine Coatings Brands List Released: Dominating 90% of the Global Market Share

Jotun states in its latest annual report that, looking ahead to 2026, newbuilding shipyard activity remains at peak levels, with major shipyards operating near full capacity. Benefiting from continuous capacity expansion at Chinese shipyards, marine coatings sales are expected to remain robust in 2026. Dry-docking business is projected to grow moderately, with docking volumes anticipated to increase in 2026. Newbuilding, dry-docking, and offshore engineering segments will continue facing pricing pressure. As more shipowners and fleet managers strive to reduce fuel consumption and associated emissions, demand for Jotun’s premium antifouling products and solutions is expected to sustain strong growth in the dry-docking market over the coming years. Kansai Paint reported sales of JPY 37.802 billion for the first quarter of FY2027, up 16.0% year-on-year; marine coatings sales totaled JPY 32.555 billion, up 13.92% year-on-year. Sales in Japan, China, South Korea, Southeast Asia, and Europe & the Americas rose by 32.0%, 34.0%, –13.5%, 16.2%, and –3.7%, respectively. Kansai notes that, within its core marine coatings business, newbuilding shipments showed steady growth, driven by rising shipbuilding output in China. In Japan, amid heightened uncertainty in raw material procurement and persistently rising raw material prices triggered by Middle East tensions, the company implemented price adjustments to secure stable raw material supplies and fulfill its supply obligations—contributing significantly to the sharp sales growth. In the vessel repair segment, demand for high-performance hull antifouling coatings continues to rise, propelled by IMO fuel-efficiency regulations and the global push to cut CO₂ emissions from ships. CMP Group not only actively promoted sales of high-value-added products but also adopted rational pricing strategies aligned with raw material costs—driving overall sales growth. Sherwin-Williams reported net sales of USD 3.89 billion for its Paint Stores Group in Q2 2026, up 5.1% year-on-year—driven primarily by higher selling prices and modest volume growth. Net sales rose across all professional end-market segments, with protective and marine coatings markets posting double-digit percentage growth. PPG Industrial Coatings reported 3% organic growth in its Performance Coatings segment in Q2 2026, fueled by strong demand for aerospace, protective, and marine coatings. Organic sales in protective and marine coatings grew double-digits year-on-year—marking the 13th consecutive quarter of volume growth, including above-market marine coatings volume growth in both the Asia-Pacific region and Europe. Nippon Paint’s Other Coatings business achieved sales of JPY 57.595 billion in H1 2026, up 13.31% year-on-year—with marine coatings showing particularly strong growth. Multiple industry leaders’ financial data mutually corroborate that the marine coatings market is currently in an upward, high-demand cycle. However, not all companies benefit equally—market divergence is already evident. According to financial reports, AkzoNobel’s Marine & Protective Coatings business recorded Q2 2026 sales of EUR 385 million, down 7% year-on-year, with organic sales declining 2%—primarily due to lower volumes, especially a sharp drop in marine coatings volumes versus the prior year. For H1 2026, sales totaled EUR 727 million, down 11% year-on-year.

PPG Industries Reports Q2 Sales Growth, Increases Dividend Despite Automotive Pressure

Jul 30, 2026

PPG Industries reported increased sales but slightly lower net income for Q2 2026, while raising its quarterly dividend and continuing share buybacks. Weaker automotive production remains a key risk despite the improved capital allocation narrative.

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