Yang Weihua, General Manager of Automotive Paint China, PPG Industry Corporation

Gasgoo.com: In addition to automotive coatings, what services does PPG have in the automotive industry? What type of vehicle does PPG provide paint for? What is the proportion of automotive-related business to total revenue?

Yang Weihua: PPG has the largest share of China's automotive coatings market, mainly involved in automotive OEM paint and aftermarket repair paint. In addition, we also have many automotive-related businesses such as body sealants and fiberglass. Taking glass fiber as an example, we are now focusing on the development of two products: chopped fiber and LFT (long fiber reinforced thermoplastic). They can be used to make a variety of different polymers and they are used in large quantities in the automotive market. In the United States and Europe have developed more mature, mainly from the government and auto manufacturers on the car's weight loss reduction needs. Since weight reduction must be achieved through composite materials, reinforcement products such as chopped fibers and LFT are the first choices for the manufacture of automotive parts. At present, China may still be in its infancy in this area, but it is believed that there will be much room for development in the future.

In the automotive coatings market, almost all automotive manufacturers are our customers, such as General Motors, Mercedes-Benz, Volkswagen, BMW, Hyundai, Shenlong and others. Most Chinese independent brands are also our customers. In addition, we also provide automotive coatings for the heavy truck market and agricultural vehicle market. PPG is also committed to providing green products for the Chinese market. In addition, we have also introduced new construction technologies to help automotive customers reduce emissions during the painting process and save costs.

Up to now, the original car paint and refinish paint are the main business of PPG in the automotive market, and it is also the fastest growing business unit. In 2010, relying on the rapid growth of China's auto market, PPG's automotive OEM coating business and refinishing business all have strong growth and sales are very impressive.

Gasgoo.com: How many foreign and independent brands account for PPG's Chinese customers? From purely serving foreign capital to expanding to independent brands, what are the strategies adopted by PPG to penetrate the Chinese market?

Yang Weihua: The development of PPG in China can be traced back to 1980. At that time, China's auto industry was still in its infancy. At that time, PPG looked forward to the broad prospects of development in the Chinese market and began to supply automotive coatings to Beijing Jeep at that time. .

Nowadays, PPG has not only established partnerships with world famous brands such as Volkswagen, GM, Mercedes-Benz, BMW and PSA Peugeot Citroen, but also established long-term cooperation with independent brands such as SAIC, Chery, Geely, BYD, and Great Wall. relationship. From ordinary paint to environmental paint, PPG has integrated into and penetrated into the Chinese market. In terms of the number of customers, local brands even exceed foreign brands.

The reason why PPG can quickly explore the Chinese market is thanks to PPG's outstanding corporate culture and advanced management system. In business management, everyone can openly discuss better solutions, and quickly reach a unified thinking and simple management procedures. Efficient. Moreover, there are almost no obstacles in the transfer of technology, and it is possible to transfer over the world, as long as China can use the technology.

In addition, PPG not only does automotive coatings, architectural coatings, but also industrial coatings, such as packaging, shipping, etc., to form a huge production volume, then its purchase volume is also very large. In this way, there will be good procurement costs and procurement cycles. At the same time, some qualified suppliers will also be found. In terms of management, the management is gradually localized, and it is very clear about the local culture and employee incentive mechanism, which is more conducive to the work.

Gasgoo.com: PPG's factories in China are located in Shanghai, Jiangsu, Anhui, Shandong, and Tianjin. How do you see the potential of China's Midwest? Will there be plans to build factories there?

Yang Weihua: Most of PPG's factories are built on their own, and some of them are acquired through mergers and acquisitions. As for the location of the factory, if it is new, there will be multiple considerations, such as whether it is convenient to communicate with the target customers and the service market, and whether the local industry has preferential policies.

Some developed regions and cities in China have been leading the market in recent years and are more eye-catching. However, with the introduction of some restrictive measures, the potential of the Midwest automobile market will become more prominent. It is believed that more and more automakers have already realized this. a little. With the shift of the automotive industry to the west, PPG will not rule out an investment plan at the right time and with the right opportunities.