International. Lanxess held its second symposium on pigments in Shanghai, China, a few days ago. This year's theme was: "The Global Pigment Industry in Transition – Turning Challenges into Sustainable Value Creation".
There, the Inorganic Pigments (IPG) business unit provided international experts and users on a discussion platform to learn more about current evolution and future challenges in the pigment industry.
Issues such as the continued application of progressive environmental standards in China, the simultaneous advancement of consolidation in the global pigment industry, and the new challenges facing the paints and coatings industry, were discussed.
China is the largest sales market and the largest production center of inorganic iron oxide pigments worldwide. The country's economy is in a phase of restructuring, which is also greatly affecting the pigment industry. "Increased environmental regulations are forcing numerous Chinese manufacturers to close their manufacturing plants. However, despite the temporary and localized crises, the global demand for inorganic pigments is increasing, due in part to the expansion of urbanization. This development has far-reaching consequences for the global paints and coatings industry," Rafael Suchan, head of Lanxess' Asia/Pacific pigments business, explained at the symposium.
Government representatives further discuss the impact of China's new environmental legislation: Companies will be subject to drastic penalties if they fail to comply with the new guidelines. In 2014 alone, the number of environmental crimes prosecuted tripled compared to the previous year. Moreover, the number of pigment manufacturers with an annual capacity of less than 10,000 metric tons will continue to decline as a result of the new legislation. The government's goal is to promote greater industrial consolidation. In the end, only a few iron oxide manufacturers with sustainable production facilities and growth capabilities will remain in the Chinese market.
Jörg Hellwig, head of Lanxess' Inorganic Pigments business unit, stressed that technological advances and optimized manufacturing processes are of fundamental importance for the achievement of this goal. Norbert Mahr, Global Head of Inorganics Purchasing at BASF, explained at the symposium how sustainable procurement management can help combine economic and ecological objectives.
