Axalta expands in Turkey
Axalta Coating Systems has recently acquired a manufacturing site in Çerkezköy, Turkey, for its powder coating business. What does that mean for the company? We took a closer look and spoke with Axaltas business director.
The new facility in Turkey will host the production of all Axalta’s premium powder product ranges including the matt, fine textured and semi-gloss collections designed for architectural applications. Klaus Gast, Business Director for Axalta’s powder coatings business in Europe, says, “This is an exciting opportunity for Axalta to grow its powder coatings business in the region. By purchasing an established powder manufacturing site, we will be able to service that market very quickly.”
Turkey is one of the largest markets in Europe
For Axalta’s business director for the powder coatings business in Europe, the Middle East and Africa Turkey is one of the larger powder coatings market in Europe. “Estimates are varying from year to year, but it can be expected the size of the market is between 50,000 to 80,000 tonnes. “It is crucial to recognise the importance of the Turkish powder coatings market, which is one of the largest in Europe, and which continues to grow”, says Gast. For more than 20 years Axalta has already been selling its powder coatings to the Turkish market. The focus will lie on the application areas aluminium, cladding and metal furniture.
To further demonstrate the company’s commitment, the coatings producer will also open a new Colour Experience Room in Istanbul in late 2019, where architects and designers can explore he extensive range of powder coatings for metal substrates, Gast explains.
“Overall, demand for high-performance powder coatings and sustainability is increasing”, says Klaus Georg Gast, Business Director for Axalta’s powder coatings.
The acquisition is A pure asset deal
Axalta has only acquired the production facility of Royal Powder Coatings, a family-owned enterprise. No business, customers or employees were involved in the transaction. “The purchase is a pure asset deal”, states Gast. The global coatings producer has now gained five production lines, which will support the company’s ambitions in Turkey and the surrounding region.
The site was built only a couple of years ago and is, according to Gast, a state-of-the-art production facility. All of Axalta’s powder coatings products manufactured in Turkey will meet the requirements of Qualicoat Classes I and II and will be free of heavy metal pigmentation and TGIC (Triglycidyl Isocyanurate) free, assures Axalta’s business director for the powder coatings Europe.
Attractive niche market
The size of the global powder coatings market is estimated to hit EUR 9 to 10 billion in 2018. It has seen a compound annual growth rate of about 5.5% for the last three to four years. That CAGR had been buoyed by the healthy growth rates in the Asia Pacific market and the slightly higher than GDP growth rates in the more mature markets in Western Europe and the Americas.
According to the latest estimates of CEPE, the European Council of the Paint, Printing Ink and Artists’ Colours Industry, the European market reached a volume of 350,000 tonnes last year and showed growth over the last couple of years.
Just a few powder coatings manufacturers left
Consolidation during the past decade has shrunk the overall number of players down significantly to the point that less than ten players represent over 80 % of the global power coatings market. This is especially true in the Western regions.
North America is dominated by five producers: Sherwin Williams, PPG, AkzoNobel, ProTech and Axalta. Top players in Europe include Akzo Nobel, Jotun, Sherwin Williams, Axalta, Tiger Drylac and Europolveri.
