According to the plan of Nippon Paint's parent company, Japan Coatings Holdings Co., Ltd., about 30 billion yen will be invested in the next three years, led by two large-scale coating factories in the inland, and another nine architectural coatings production factories. By 2020, China's annual production capacity (including automotive coatings) has increased to 3.6 million tons, a 70% increase from 2015.
On October 12, 2016, Nippon Paint (Kunming) Co., Ltd. and Nippon Waterborne Coatings Project with an annual output of 80,000 tons began to form the foundation. It is reported that the total investment of the project is 70.18 million yuan, covering an area of about 62 acres, mainly producing water-based architectural coatings. After the project is completed, the products will cover the entire province of Yunnan, western Guizhou and southern Sichuan.
In order to strategically lay out the Chinese market, Nippon established Chongqing Nippon Paint Co., Ltd. as early as 1995. In 2005, Singapore Lishi Group and Japan Paint Co., Ltd. (now Japan Paint Holdings Co., Ltd.) jointly invested 28 million US dollars (at that time, equivalent to RMB 220 million) established Nippon Paint Chengdu base.
Industry analysts said that to complete the market layout of nine provinces and one city in western China, it is obviously difficult to rely on Nippon Paint Chengdu alone. Even if Nippon Paint Kunming is put into production, it is difficult to satisfy the western region. High-speed market demand. Therefore, Nippon plans to invest in a new coatings production base in Chengdu's Luoyangan Industrial Park, which can well cooperate with another Chengdu factory to complete the market layout in the western region.
Nippon China has continuously invested in expanding production capacity in recent years. According to incomplete statistics, the cumulative new production capacity in the past two years has reached more than 2 million tons, which is equivalent to nearly one-ninth of the national output in 2015. Among them, Hubei and Henan have two coatings production capacities respectively. It has reached an annual output of 500,000 tons and an annual output of 600,000 tons.
It is understood that Nippon has five large factories in China that can produce various types of coatings, as well as small color mixing factories, with a total of 29 factories. First, 20 billion yen will be invested to build a large factory in each of Hubei and Henan provinces inland, and small factories in Hubei and Jiangsu provinces. The total number of factories will increase to 38 in three years.