Xin Lang Cai Jing·2025-12-26 12:21Core Viewpoint - The paint industry is experiencing a dual scenario of aggressive investment expansion alongside cost-cutting measures to survive the market downturn, presenting both challenges and opportunities for adaptable companies [2][21]. Industry Overview - The paint market is entering a deep adjustment phase, yet many leading companies are not slowing their expansion efforts; instead, they are investing in production facilities and capacity upgrades to ensure long-term growth [4][23]. - A significant influx of new entrants and capital into the paint industry is evident, indicating a stark differentiation within the sector [2][21]. Investment Trends - It is estimated that by 2025, the total investment in the paint industry will exceed 47 billion yuan, with over 11 million tons of new paint capacity being added [4][23]. - Major companies such as San Ke Shu, Mai Jia Xin Cai, and others are actively expanding their production capabilities, with investments in new facilities and capacity upgrades [6][25]. Company-Specific Developments - San Ke Shu is investing 780 million yuan in a comprehensive industrial park project, which will produce various types of industrial and automotive paints, expected to generate an annual output value of approximately 3.5 billion yuan [6][25]. - Mai Jia Xin Cai has opened a new production base in Zhuhai with a planned annual output of 70,000 tons of high-performance coatings, primarily targeting the South China and Southeast Asia markets [6][25]. - Other companies like Xinheng and Nippon Paint are also expanding their production lines significantly, with Nippon Paint investing in multiple facilities to increase its capacity for water-based and industrial coatings [8][27]. Market Dynamics - The current market downturn is seen as a necessary phase for the paint industry, leading to a reshuffling of market players and a rise in competitive barriers, favoring stronger companies [14][34]. - The industry is undergoing a significant transformation, with a focus on high-end products such as automotive, marine, and renewable energy coatings, which are rapidly expanding in capacity [10][32]. Future Outlook - The ongoing market challenges are expected to lead to a "big adjustment" and "cleaning" of the industry, resulting in a landscape dominated by strong brands like Nippon Paint, San Ke Shu, and others [36][38]. - Companies that adapt to market changes and focus on innovation, supply chain management, and brand building are likely to thrive during this period [37][38].