The growing mid-market in China offers major investment opportunities in a key geographic region. Which is why our Car Refinishes business made a strategic move during 2010 to acquire Changzhou Prime Automotive Paint Co., Ltd.
Prime was one of China’s largest vehicle refinish suppliers and a leader in the fast-growing mid-market segment. This sector is estimated to double in size within the next five years, during which time AkzoNobel plans to double its revenue in China to $3 billion.
Acquiring Prime not only gives us strong representation in one of China’s most promising growth segments, but also gives Car Refinishes the opportunity to become the clear market leader in the attractive vehicle refinish mid-market.
The acquisition gives us access to superior products and new technologies – supported by strong brands and a loyal distributor base – enabling us to gain a competitive advantage in a market with sizeable potential where we previously had limited presence. Most of all, the addition of the new team in China underscores our commitment to serving our customers with the best people available.
Prior to the Prime acquisition, AkzoNobel was mainly active in China’s premium and commercial vehicle refinish sector, represented by our Sikkens, Lesonal and Miluz brands.