Home > Business > Production and Sales of Coatings With a view to establishing a coatings industry platform, COSCO International has built a cross-regional coatings production and sales framework. The coating products included container coatings, marine coatings and industrial heavy-duty anti-corrosion coatings. COSCO International formed two joint ventures with Kansai Paint Co., Ltd. and Jotun A/S. The joint ventures have coatings manufacturing plants located in Shanghai, Tianjin, Zhuhai and Guangzhou. The total maximum production capacity of all coatings plants exceed 100,000 tonnes.              The Company’s non wholly-owned subsidiaries, COSCO Kansai Paint & Chemicals (Tianjin) Co., Ltd., COSCO Kansai Paint & Chemicals (Shanghai) Co.,Ltd., and COSCO Kansai Paint & Chemicals (Zhuhai) Co., Ltd., (collectively known as “COSCO Kansai Companies”) are responsible for the manufacturing and sales of container coatings and industrial heavy-duty anti-corrosion coatings. The three coating plants are strategically located in three of the areas with the highest economic growth in China, namely the Pearl River Delta, the Yangtze River Delta and the Pan-Bohai Rim Area, which facilitate provision of speedy and efficient services to customers of these regions. The coating products manufactured by COSCO Kansai Companies adopt the same standards as those of Kansai Paint Co., Ltd., the largest paint manufacturer in Japan, in the aspects including paint technology formulae, raw materials adoption, manufacturing arts, products index and customer service. In 2007, COSCO Kansai Companies were ranked among the top ones in the container coatings market in China, and have been awarded as the best foreign investment enterprises for years. In 2007, sales of container coatings by COSCO Kansai Companies maintained a growth rate of 15% when compared to 2006   Marine coatings are anti-corrosive and protective coatings for the vessels at sea, so as to enable efficient and sustained operation of vessels. Jotun COSCO Marine Coatings (HK) Limited. (“Jotun COSCO HK”), is a jointly controlled entity between the Company and the internationally renowned Norwegian coating manufacturer Jotun A/S, each owns 50% equity interests. Jotun COSCO HK is responsible for the production of marine coatings business, including production and sales of coatings for new ship building, dry docking and sea stock, in various regions in China. It has a manufacturing plant in Guangzhou and sales offices in places such as Shanghai, Tianjin, Dalian, Qingdao, Fuzhou and Hong Kong. Today, China is the third largest ship building countries in the world, following Korea and Japan. It is expected that the demand for marine coatings and container coatings will increase as the production volume of ship building and containers increases owing to a surging foreign trade volume in China. Through a strategic patnership with Jotun A/S, Jotun COSCO will actively develop marine coatings within COSCO Group so as to expand its market share within COSCO Group and become the leading marine coatings enterprise in China Mainland.   Industrial heavy-duty anti-corrosion coatings produced by COSCO Kansai Company are used mainly in nuclear stations, ports, power stations, oil, petrochemical, transportation and municipal government infrastructure. Following implementation of China's Eleventh "Five-year Plan", development of these industries are still at a fast growing pace. Market potential for industrial heavy-duty anti-corrosion coatings is, therefore, enormous. COSCO Kansai Companies will take full advantage of this demand, seek closer relations with major customers and focus on developing coatings for trailers. COSCO Kansai Companies will monitor China oil reserve base construction projects, expand its share of the nuclear power plants market; take advantage of the rapid development in the Pan-Bohai Rim area; seek more municipal government infrastructure coating projects and develop business with oil and port machinery companies. COSCO Kansai Companies will also seek business opportunities arising from the coming Shanghai World Expo 2010 regarding the demand for the accessories in relation to industrial heavy-duty anti-corrosion coatings.