As China’s economy slowed, chemical makers adjusted

Abstract

Early this year, China announced that its economy grew by slightly less than 7% in 2015. Economic growth is on track to be even lower in 2016. Compared with the 8-10% growth China enjoyed in the 15 years prior, the figures are low, but for the chemical industry, the country remains a land of opportunities. “If you are close to the customers, you can achieve growth in China,” says Stephan Kothrade, president of BASF Greater China (meaning China and Taiwan). At paints and coatings producer PPG Industries, Mike Horton, head of Asia-Pacific operations, points out that the Chinese economy is unevenly affected by the slowdown. “Of course, if you try to sell to the state-owned steel industry, that sector feels a big impact,” he says. Another struggling industry is shipbuilding, to which PPG sells marine coatings. A slowdown in international trade is the main cause, he says. But PPG, Horton