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Paint Industry South Africa

The Paint Industry in South Africa 2023

Yasmin Mahomedy | South Africa | 24 July 2023

The Paint Industry in South Africa 2019

Ebhrahim Khalil | South Africa | 17 May 2019

The Paint Industry in South Africa 2017

Ebrahim-Khalil Hassen | South Africa | 13 February 2017

The Paint Industry in South Africa 2014

Gareth Barnard | South Africa | 17 March 2014

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Report Coverage

This report on the paint industry in South Africa includes information on architectural and decorative paints and coatings as well as industrial coatings used in the mining, agricultural and automotive sectors. There is information on the state of the sector, notable players, trade and influencing factors and profiles of 27 companies. These include major players such as Kansai Plascon, Dulux, Ferro and Prominent Paints, industrial coatings companies such as BASF and retailers including Jack’s Paint and Hardware .

Introduction

• The paint industry is dominated by internationally-owned companies.
• The two largest players are Amsterdam-based Dulux manufacturer AkzoNobel, and Japanese company Kansai Plascon Africa, which manufactures Plascon.
• Decorative/architectural paints, which are used for decorative purposes on roofs, floors, walls, facades and doors, account for almost 80% of coatings sales, and industrial/performance and automotive coatings the balance.
• Demand for decorative/architectural coatings has slowed in line with a slowdown in DIY projects.
• Manufacturers have been severely affected by power cuts.
• The industry imports raw materials such as titanium dioxide and other pigments that are not manufactured locally.

Trends

• Decline in the decorative/architectural sector.
• Growing demand for green products, which release almost no volatile organic compounds during manufacture.
• Strong demand for automotive coatings.

Opportunities

• Strong automotive sales offer growth opportunities for manufacturers of original equipment coatings.
• Sustainable and environmentally-friendly paints and coatings provide an opportunity for manufacturers to differentiate and tap into new markets.

Challenges

• Delays at ports.
• Fluctuation in prices of raw material can affect growth.
• High production costs.
• Increasing costs due to loadshedding.
• Lack of disposable income affects consumer spending.
• Rampant power outages.
• Shortage of skills.
• The industry is exposed to external macroeconomic factors.

Outlook

• Demand in the decorative/architectural paint and coatings segment is expected to be weak as consumer spending comes under pressure.
• Manufacturers are likely to continue to experience challenges such as loadshedding, high raw material prices due to a volatile rand and increasing operating costs.
• Pressure on margins is likely to result in higher paint prices.
• Manufacturers in the automotive coatings sector can expect strong growth due to increased vehicle production.

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The Paint Industry in South Africa
The Paint Industry in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1100.87 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 770.61 (USD)*

Historical Reports

The Paint Industry in South Africa 2019-05-17

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Paint Industry in South Africa 2017-02-13

R 1 900.00(ZAR) estimated $104.58 (USD)*

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The Paint Industry in South Africa 2014-03-17

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
2.3. Size of the Industry 4
3. LOCAL 4
3.1. State of the Industry 4
3.2. Key Trends 7
3.3. Key Issues 7
3.4. Notable Players 8
3.5. Trade 9
3.6. Corporate Actions 10
3.7. Regulations 11
3.8. Enterprise Development and Social Development 11
4. AFRICA 12
5. INTERNATIONAL 14
6. INFLUENCING FACTORS 17
6.1. Loadshedding 17
6.2. Economic Environment 17
6.3. Input Costs 18
6.4. Labour 19
6.5. Environmental Issues 20
6.6. Technology, R&D, Innovation 21
6.7. Cyclicality 22
7. COMPETITIVE ENVIRONMENT 22
7.1. Competition 22
7.2. Ownership Structure of the Industry 23
7.3. Barriers to Entry 24
8. INDUSTRY SUMMARY 24
9. OUTLOOK 24
10. INDUSTRY ASSOCIATIONS 25
11. REFERENCES 25
11.1. Publications 25
11.2. Websites 25
APPENDIX 1 27
Summary of Notable Players 27
COMPANY PROFILES 32
BASF Coatings Services (Pty) Ltd 32
BASF South Africa (Pty) Ltd 34
Chemfit (Pty) Ltd 36
Chromaflo Technologies South Africa (Pty) Ltd 38
Dekro Paints (Pty) Ltd 40
Delta Colours (Pty) Ltd 43
Duraklad (Pty) Ltd 45
Duram (Pty) Ltd 46
Eco Smart Essentials (Pty) Ltd 48
Ferro South Africa (Pty) Ltd 50
Harlequin Paint CC 53
ICI Dulux (Pty) Ltd 55
Jack's Paint and Hardware (Franchises) (Pty) Ltd 58
K and K Paint Manufacturers CC 60
Kansai Plascon Africa Ltd 62
Medal Paints (Pty) Ltd 65
Mylaw Chemical and Coatings (Pty) Ltd 68
Powder-Lak (Pty) Ltd 69
PPG Protective and Marine Coatings (Pty) Ltd 71
Pro Paint Manufacturing (Pty) Ltd 73
Promac Paints (Pty) Ltd 75
Prominent Paints (Pty) Ltd 77
Sika South Africa (Pty) Ltd 79
StonCor Africa (Pty) Ltd 82
Sun Chemical (South Africa) (Pty) Ltd 86
Universal Coatings (Pty) Ltd 88
Versus Paint Specialists (Pty) Ltd 91

Introduction

This report focuses on the paint industry in South Africa from 2017 to April 2019. The industry is valued at R13bn and employs approximately 15,000 people. The paint industry in South Africa has continued to adopt manufacturing strategies to meet environmental and other regulations. The most significant challenges facing the industry are skills shortages and competition from cheap imports.

Strengths

• Continued business relationships between local and international companies, ranging from acquisitions to distribution agreements.
• Good use of technology to create local inputs into the manufacturing of paints.
• Improvements in environmental aspects of legislation that reduces and potentially even eliminates lead in paints.
• Strong alignment between industrial policies and investment in the paint sector.

Weaknesses

• Reliance on imports for many raw materials.
• Shortage of skilled staff.
• Some manufacturers use cheap materials and produce inferior products.

Opportunities

• Adequate and accredited training is
• being provided by the South African Paint Training Institute and the Corrosion Institute.
• High rate of growth on the rest of the continent.
• Increasing demand for environmentally friendly and functional coatings.
• New investments to produce calcium carbonate.
• New investments to produce titanium dioxide.

Threats

• Delays to government infrastructure programme could negatively affect the industry.
• Further weakening of the rand could cause further cost increases.
• Increasing regulatory costs.
• Poor management of standard setting and approval of products.
• Slow growth of an already fragile economy.

Outlook

The outlook for the paint industry in South Africa is positive. New production facilities in titanium dioxide and calcium carbonate provide local supply for key inputs in manufacturing. However, these supplies will need to be competitive, given the options available for importing products. South African paint manufacturers continue to build relationships with larger international companies and seek export opportunities in Southern Africa and beyond. A central challenge facing manufacturers is whether there is a level playing field in terms of tariffs on inputs and final products between South African and other countries. The relationship between the paint industry and government is crucial to ensuring that the positive outlook for the paint industry is translated into reality.

The Paint Industry in South Africa
The Paint Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Paint Industry in South Africa 2023-07-24

R 20 000.00(ZAR) estimated $1100.87 (USD)*

View Report Add to Cart

The Paint Industry in South Africa 2017-02-13

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Paint Industry in South Africa 2014-03-17

R 1 900.00(ZAR) estimated $104.58 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Corporate Actions 5
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Economic Environment 10
5.2. Technology, Research and Development (R&D) and Innovation 11
5.3. Labour 12
5.4. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 16
7. SWOT ANALYSIS 16
8. OUTLOOK 17
9. INDUSTRY ASSOCIATIONS 18
10. REFERENCES 18
10.1. Publications 18
10.2. Websites 21
APPENDIX 1 22
Summary of Notable Players 22
COMPANY PROFILES 26
AKZO NOBEL POWDER COATINGS SOUTH AFRICA (PTY) LTD 26
BASF COATINGS SERVICES (PTY) LTD 28
BASF SOUTH AFRICA (PTY) LTD 30
CHEMFIT (PTY) LTD 32
DEKRO PAINTS (PTY) LTD 34
DURAM (PTY) LTD 37
FERRO SOUTH AFRICA (PTY) LTD 39
HARLEQUIN PAINT CC 42
ICI DULUX (PTY) LTD 44
JACK'S PAINT AND HARDWARE (FRANCHISES) CC 47
K AND K PAINT MANUFACTURERS CC 49
KANSAI PLASCON AFRICA LTD 51
MEDAL PAINTS (PTY) LTD 54
MYLAW CHEMICAL AND COATINGS (PTY) LTD 57
POWDER-LAK (PTY) LTD 58
PRO PAINT MANUFACTURING (PTY) LTD 60
PROMAC PAINTS (PTY) LTD 62
PROMINENT PAINTS (PTY) LTD 64
ROLFES COLOUR PIGMENTS INTERNATIONAL (PTY) LTD 66
SIGMA COATINGS (PTY) LTD 68
SIKA SOUTH AFRICA (PTY) LTD 70
STONCOR AFRICA (PTY) LTD 73
SUN CHEMICAL (SOUTH AFRICA) (PTY) LTD 77
SWARTLAND INVESTMENTS (PTY) LTD 79
ULTRALINE (PTY) LTD 81
UNIVERSAL COATINGS (PTY) LTD 83
VERSUS PAINT SPECIALISTS (PTY) LTD 86

Report Coverage

The South African Paint Industry examines current conditions, regulatory issues and factors influencing the success of the local manufacturing and retail sector. The report profiles 20 companies, including the three major manufacturers, Becker Industrial Coatings, a global industrial coatings company, ICI Dulux, a subsidiary of AkzoNobel which operates locally under the brand name Dulux, and Jotun Paints SA which produces and sells decorative paints and performance coatings. Also profiled is Kansai Plascon Africa which announced in February 2017 that it will acquire 100% of the operations of paint distributor, Sadolin Paint in Kenya, Uganda, Tanzania, Zanzibar and Burundi. The company currently exports paint from South Africa to ten other African countries, and has stated its intention of becoming Africa’s fastest growing coatings company.

Introduction

This report focuses on the paint industry in South Africa since 2013, a sector that is valued at an estimated R11.5bn per annum. The paint industry has undergone a shift towards increased usage of technology and mechanisation in the last five years, which has resulted in fewer jobs but a return to profitability. The most important challenges facing the industry are regulatory issues, especially those related to environmental protection and import tariffs.

Strengths

• Manufacturers have access to advanced technology through international partnerships.
• Many government incentives have been created to support and promote manufacturing.
• The industry is well represented by SAPMA which is continually growing and evolving.

Weaknesses

• Reliance on imports for many raw materials.
• Shortage of skilled staff.
• Some manufacturers use cheap materials and produce inferior products.

Opportunities

• Adequate and accredited training is now being provided by SAPITI.
• Development of agreement with government on environmental issues.
• High rate of growth on the rest of the continent.
• Increased government support for manufacturing activity and spending on infrastructure development.
• Increasing demand for environmentally friendly and functional coatings.

Threats

• Delays to government infrastructure programme could negatively affect the industry.
• Further weakening of the rand could cause further cost increases.
• Increasing regulatory costs.
• Lower cost imports and possible dumping of products.
• Slow growth of an already fragile economy.

Outlook

According to analysts, the paint industry has good reasons to be optimistic about its future growth. The last decade has seen significant restructuring in the industry, which should help grow the market and provide a basis for meeting the demands of environmental regulations. In addition, the continuing infrastructure investment programme by government will create opportunities across the paint value chain. Two key challenges will however need to be addressed. First, lower costs imports have the potential to reduce the market share of local companies. Responding to this will require amendments to tariffs, which is a difficult and complex process. Second, the industry and government will need to resolve a series of challenges, specifically on standard settings. Addressing these two issues will prove vital to the future growth of the paint industry.

Read More..
The Paint Industry in South Africa
The Paint Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Paint Industry in South Africa 2023-07-24

R 20 000.00(ZAR) estimated $1100.87 (USD)*

View Report Add to Cart

The Paint Industry in South Africa 2019-05-17

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Paint Industry in South Africa 2014-03-17

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 11
4.2. Continental 12
4.3. International 13
5. INFLUENCING FACTORS 14
5.1. Economic Environment 14
5.2. Government Initiatives 15
5.3. Private Sector Initiatives 16
5.4. Operating Costs and Imports 17
5.5. Technology, Research and Development (R&D) and Innovation 17
5.6. Labour 18
5.7. Environmental Concerns 20
6. COMPETITION 22
6.1. Barriers to Entry 22
7. SWOT ANALYSIS 23
8. OUTLOOK 24
9. INDUSTRY ASSOCIATIONS 24
10. REFERENCES 25
10.1. Publications 25
10.2. Websites 26
COMPANY PROFILES 27
AKZO NOBEL POWDER COATINGS SOUTH AFRICA (PTY) LTD 27
BASF COATINGS SERVICES (PTY) LTD 29
BASF SOUTH AFRICA (PTY) LTD 31
CHEMFIT (PTY) LTD 33
DEKRO PAINTS (PTY) LTD 35
DURAM (PTY) LTD 38
FERRO SOUTH AFRICA (PTY) LTD 40
HARLEQUIN PAINT CC 43
ICI DULUX (PTY) LTD 45
KANSAI PLASCON AFRICA LTD 48
MEDAL PAINTS (PTY) LTD 51
POWDER-LAK (PTY) LTD 53
PRO PAINT MANUFACTURING (PTY) LTD 55
PROMAC PAINTS (PTY) LTD 57
PROMINENT PAINTS (PTY) LTD 59
ROLFES COLOUR PIGMENTS INTERNATIONAL (PTY) LTD 62
SIGMA COATINGS (PTY) LTD 64
SIKA SOUTH AFRICA (PTY) LTD 66
STONCOR AFRICA (PTY) LTD 68
SUN CHEMICAL (SOUTH AFRICA) (PTY) LTD 71
ULTRALINE (PTY) LTD 73
UNIVERSAL COATINGS (PTY) LTD 75
VERSUS PAINT SPECIALISTS (PTY) LTD 77

Introduction

This report focuses on the manufacture of paint and coatings sector which was worth an estimated R8.88bn in 2013. There are more than 300 manufacturers although 80% of the market is dominated by the three largest companies. The market was stimulated by construction leading up to the 2010 FIFA World Cup but since then growth has slowed because of the global recession and margins have narrowed as a result of difficult trading conditions. Growth is expected to accelerate as the world economy improves but export markets promise higher rates of growth than the local market. There has been a strong focus on environmentally friendly practices and this is one of the most important drivers in the development of new products.

Strengths

• Manufacturers have access to advanced technology through international partnerships.
• Many government incentives have been created to support and promote manufacturing.
• The industry is well represented by SAPMA which is continually growing and evolving.
• Well established and indispensable industry.

Weaknesses

• Lack of effective regulation to prevent lead from being used in manufacture of paint.
• Reliance on imports for many raw materials.
• Shortage of skilled staff.
• Some manufacturers use cheap materials and produce inferior products.

Opportunities

• Adequate and accredited training is now being provided by SAPITI.
• High rate of growth on the rest of the continent.
• Increased government support for manufacturing activity and spending on infrastructure development.
• Increasing demand for environmentally friendly and functional coatings.

Threats

• Delays to government infrastructure programme could negatively affect growth.
• Fragile economic recovery which can be slowed by industrial action, especially in the mining sector.
• Further weakening of the rand could cause further cost increases.
• Growing international demand could also affect the cost of raw materials.

Outlook

As global economic conditions improve there is likely to be improving growth in both the industrial and decorative markets. According to SAPMA Executive Director Deryck Spence, "Government's Infrastructural development plan is planned to produce significant development in the construction industry to which coatings are intimately linked and should enjoy the benefits of the plan. The decorative sector could therefore show a slightly higher growth rate of maybe 3% or 4%. The industrial sector on the other hand will show some potential growth within the Five Point plan as well but will be heavily influenced by the Rand. This will also be influenced by union strike action within the mining sector." An increase in growth is likely to increase competition as more foreign companies seek to take advantage of opportunities throughout Africa. Many of these companies are seeking to use South Africa as a base for further expansion into Africa. The technology sharing agreements that South African companies have with some of the world’s largest paint producers means that the range and performance of products available will improve, especially as new companies seek to differentiate themselves in the market. According to Chemspec's 2013 integrated annual report, "The coatings market is due for realignment. Major world coatings players are attempting to enter the SA market… We believe this will continue. These disruptions and changes in the market present opportunities."

The Paint Industry in South Africa
The Paint Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Paint Industry in South Africa 2023-07-24

R 20 000.00(ZAR) estimated $1100.87 (USD)*

View Report Add to Cart

The Paint Industry in South Africa 2019-05-17

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

The Paint Industry in South Africa 2017-02-13

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
3. SIZE OF THE INDUSTRY 2
4. STATE OF THE INDUSTRY 4
4.1. Local 4
4.1.1. Corporate Actions 5
4.1.2. Regulations 6
4.1.3. Black Economic Empowerment 6
4.2. Continental 6
4.3. International 8
5. INFLUENCING FACTORS 8
5.1. Economic Environment 8
5.2. Government Support and Initiatives 9
5.3. Rising Input Costs 10
5.4. Information Technology 10
5.5. Technology 10
5.6. Labour Resources 11
5.7. Cyclicality 11
5.8. Environmental Concerns 11
6. COMPETITION 11
6.1. Barriers to Entry 12
6.2. Research and Development (R&D) 12
6.3. Innovation 12
7. SWOT ANALYSIS 13
8. OUTLOOK 14
9. INDUSTRY ASSOCIATIONS 14
10. REFERENCES 14
10.1. Publications 14
10.2. Websites 15
Appendix 1 16
Actual capital expenditure by public-sector institutions for the financial years ended in 2011 and 2012 and expected capital expenditure for the financial years ending in 2013, 2014 and 2015 16
ORGANGOGRAM 17
COMPANY PROFILES 19
AKZO NOBEL POWDER COATINGS SOUTH AFRICA (PTY) LTD 19
BASF COATINGS (PTY) LTD 21
BASF COATINGS SERVICES (PTY) LTD 22
CHEMICAL SPECIALITIES LTD 24
COMET COATINGS MANUFACTURERS CC 26
DEKRO PAINTS (PTY) LTD 27
DURAM (PTY) LTD 29
FERRO INDUSTRIAL PRODUCTS (PTY) LTD 30
HARLEQUIN PAINT CC 32
ICI DULUX (PTY) LTD 33
KANSAI PLASCON AFRICA LTD 35
MEDAL PAINTS (PTY) LTD 38
POWDER-LAK (PTY) LTD 40
PROMAC PAINTS (PTY) LTD 41
PROMINENT PAINTS (PTY) LTD 42
ROLFES HOLDINGS LTD 44
SIGMA COATING (PTY) LTD 46
STONCOR AFRICA (PTY) LTD 48
SUN CHEMICAL (SOUTH AFRICA) (PTY) LTD 50
VERSUS PAINT SPECIALISTS CC 52