Axalta, Kinlita enter JV partnership

MAJOR liquid and powder coatings supplier Axalta Coating Systems (NYSE: AXTA) and China industrial coatings industry key player Shanghai Kinlita Chemical (SZSE: 300225) have entered into a joint-venture agreement to successfully penetrate China’s burgeoning commercial truck market.

 

The JV hopes to leverage Axalta’s global leadership in advanced coating technologies and Kinlita’s position in China’s commercial truck market to establish a strong presence in China’s commercial truck industry.

 

The commercial truck industry plays a vital role in boosting China’s economic development, starting from the transport of goods to supporting the expansion of the nation’s infrastructure. Projections from LMC Automotive indicate China’s annual production of medium and heavy duty trucks will rise from 895,000 units this year to over 1 million by 2017.

 

Michael Cash, senior vice president of Axalta Coating Systems and president of Axalta’s Industrial Coatings business, noted the JV agreement signals deeper cooperation with Kinlita. He added that this is a win-win development not only for the companies but also for their customers.

 

Axalta's Industrial Coatings president Michael Cash and Kinlita chairman Wu Guozheng shake hands after signing joint venture agreement

 

“Our agreement brings together our leadership position in supplying the commercial vehicle market globally with advanced coating technologies, such as our environmentally responsible waterborne primer and basecoats that can help commercial truck manufacturers reduce their overall environmental footprint, and Kinlita’s rich history and strong market position,” Mr. Cash added.

 

Axalta marked its 30th year in China in 2014. Backed by more than 145 years of product innovation, the high-technology coatings company has maintained a leadership role in developing cutting-edge, environmentally responsible coating solutions for the transportation markets in China.

 

Kinlita chairman Wu Guozheng likewise acknowledges the value of the partnership. “With Kinlita’s supply positions and strong marketing capability in the commercial truck market and Axalta’s high-performance, low volatile organic compound paints, we have high expectations for the future of this venture. I am delighted to join hands with Axalta to develop the commercial truck market in China,” Mr. Guozheng added.