14-15 Nov, 2016 - Dubai, U A E
Radisson Blu Hotel, Dubai Deira Creek
Radisson Blu Hotel, Dubai Deira Creek
Kansai Paints is planning to expand into the emerging Saudi Arabian coatings market. It plans to acquire Saudi Industrial Paint Co., a supplier of protective coatings to Saudi Arabian Oil Co. The acquisition is expected to help Kansai tap the Persian Gulf countries’ energy and infrastructure industries.
The deal is being negotiated currently and a final outcome is expected around Q4 of this year.
Kansai mainly caters to the Japanese auto industry. But the paints major is also looking at decorative paints and industrial coatings markets outside of Japan.
Although fall in oil prices have affected the GCC, countries such as Qatar, Kuwait and the United Arab Emirates are still going ahead with its infrastructure upgrades, opening opportunities for coatings players like Kansai.
In fact, GCC along with India are said to be the fastest-growing regions for the next five years.
Kansai expects to expand 10 percent per year in these markets. The SIPCO acquisition will allow Kansai to have operational presence in the Middle East, particularly in Saudi Arabia, allowing it to tap the business opportunities for protective coatings in the oil and gas industry.
Besides the Middle East, Kansai is also looking at Iran – where it restarted a factory this year and is waiting to capture the market once the country has a better economic system. Also on its expansion agenda are markets in in Kenya and Tanzania – where Kansai is looking at potential acquisitions.
More on paints and coatings market trends will be discussed at 3rd Middle East & Africa Coatings on 14-15 November, 2016 in Dubai.
Contact Ms. Huiyan huiyan@cmtsp.com.sg or call +65 6346 9113 for more information.
