http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.38Change: 0.05
R/$ = 11.57Change: -0.03
Au 1276.24 $/ozChange: -2.53
Pt 1262.50 $/ozChange: -7.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 07, 2007

Newly listed Chemspec seeks greater participation in global paint market

Back
Natal|Africa|Chemspec|Africa|Australia|Canada|China|India|Mexico|New Zealand|Poland|Russia|South Africa|United States|USD|Automotive|Automotive Paint Market|Coatings Manufacturer|Equipment|Equipment Manufacturers|Manufacturing|Paint|Paint Market|Product|Products|Bruce Mackinnon|Infrastructure|Caribbean
|Africa||Africa|||Automotive|Equipment|Manufacturing|Products|Infrastructure|
natal|africa-company|chemspec|africa|australia-country|canada|china|india|mexico|new-zealand|poland|russia|south-africa|united-states|usd|automotive|automotive-paint-market|coatings-manufacturer|equipment|equipment-manufacturers|manufacturing|paint|paint-market|product|products|bruce-mackinnon|infrastructure|caribbean
© Reuse this Newly listed paint and coatings manufacturer ChemSpec will be investigating opportunities to expand its stake in the international paint market, which is currently valued at some $150-billion, CE Strath Wood said on Wednesday.

The group has an aggressive export strategy, which it said was enabled by the fact that it did not manufacture under a licence.

Chemspec was looking to increase its foreign sales from 13% in 2006/7 to 24% in 2007/8.

Its South African sales accounted for 87% for 2006/7 and are forecast to contribute 76% for 2007/8.

FD Bruce Mackinnon explained that the company had established itself predominantly in the automotive paint market in the US, Australia and New Zealand, supplying paint for vehicle refurbishment rather than original equipment manufacturers.

ChemSpec acquired a well-established paint business in the US with its own infrastructure and an existing footprint to facilitate its entry into the market. It also runs a distribution operation in Australia to cater for the region, including New Zealand.

Mackinnon commented that the company's success in the foreign market's could be attributed to the fact that it was 30% to 40% less expensive than other products, because its manufacturing base in South Africa was cheaper and its margins were lower than other foreign companies.

ChemSpec products are also sold in Canada, the Caribbean, Mexico, Poland, China, Russia and India.

He said that the only potential problem going forward would be to fulfil this demand.

To deal with capacity constraints ChemSpec acquired some 200 000 m2 of land, valued at about R70-million, in the Canelands, KwaZulu-Natal, on which a new facility will be developed.

Mackinnon noted that the facility was expected to be completed in March next year and to be fully operation by mid-2008. The new facility, which is focused on "efficiency savings", will absorb the four factories that are currently operational.

Mackinnon commented that the facility provided more than enough capacity with significant room for future growth.

ChemSpec is also looking to increase its House of Paint franchise stores nationwide and has identified 160 sites, including previously disadvantaged areas, to be developed over the next five years.

On the research and development front, Wood pointed out that ChemSpec is currently linked with a US university for the development a nanotechnology- enhanced paint that is dirt-repellent. He added that Chemspec has the licence for the product and it is expected to be released early next year.



© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 1 minute ago A debate over the impact on the industry of the local content regulations governing solar water heaters (SWHs) has heated up as the Department of Trade and Industry (DTI) and industry body, the Sustainable Energy Society Southern Africa (Sessa) stand firm on their...
Updated 55 minutes ago State-owned power utility Eskom on Monday urged consumers to save electricity as it implemented stage one load shedding, owing to unforeseen technical problems at some of its power stations.
Updated 1 hour 34 minutes ago A strike is looming at commercial airline Comair, affiliate of Kulula and British Airways airlines, after salary negotiations with its cabin crew failed. Negotiations between Solidarity and Comair started in September 2014, and, in December, the union referred a...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks