In 2010, under the globality end, KCC is seeking to concentrate on the green growing concern. First of all, KCC is seeking to accomplish high value-added to their major merchandise lines which are pigments, architectural glass, and PVC window and natation ( i??i??e?… , 2010 ) . Particularly, over the domestic market, KCC program to develop environment friendly merchandises which cope with environment ordinance in developed states such as Europe and the U.S. KCC is about to travel their domestic leader place to the planetary market. However, the universe economic system downswing is still undergone. In add-on to the economic system recession, the universe pigments and surfacing market has already been statured. Those two issues can be the major challenges to KCC ‘s planetary enlargement.
Therefore, it will be discussed what KCC developed chemical engineering particularly pictures, and coatings, and how KCC exploits those engineerings to last in the planetary chemical industry after the analysis of KCC company, and the industry.
2. Company Overview
Since its foundation in 1958, KCC has provided industrial stuff and all right chemical industry, and achieved uninterrupted technological development. KCC has been a innovator in the development of edifice industry civilization through providing pigments, PVC window and cosmetic floorings. In add-on, KCC besides provides other industrial merchandises such as glass fibre, alumina metallizing which is a merchandise attaching alumina ceramic with high strength and high insulating belongings, epoxy molded compound which is an encapsulation stuff to protect semiconducting material bit, and sealers for building and car. Many of such concern lines have marked high degree market portion in the domestic market.
KCC ‘s vision is the best all right chemical industry company ” through passage and redevelopment based on engineering leading. Their strategic end is to be stable growing through creative activity of extra value and procuring fiscal soundness, to open up direction through uninterrupted redevelopment and efficient organisational direction, to concentrate on human resource cultivation through positive investing on instruction resource cultivation globality, and to progress technological leading through consistent research and development.
However, under the up-to-date invention environment, KCC has been found another growing engine to fix to leap up to the planetary company. Based on client trust, the company tries to accomplish globality through extension of the planetary web.
Now, KCC tries to be environment friendly, future oriented-company and value through research and development.
3. Industry overview ( All right chemicals industry )
3.1. Features of Fine Chemical
All right chemical industry is a material industry as a fabrication and interceding type of chemical industry which manufactures goods needed in other industries such as fabric, car and semiconducting material by synthesising and handling original resources or intermediate resources extracted from basal chemical merchandises from petrochemical. There are several typical characteristics in all right chemical industry.
First, the rate of value added is drastically different by the degree of engineering.
Second, as a taking industry, it affects a batch on merchandise quality, value added and new merchandise development of relevant industry because it deals with major natural or subordinate stuff ( e‚?iz?e·? , 2007 ) .
Third, in footings of merchandise equipment, it has typical product-oriented and average size with high flexibleness equipment which is good for bring forthing little but variable merchandises. It has a batch of batches and consists of a signifier that can be elastically operated in overall degree ( e‚?iz?e·? , 2007 ) .
Away, as a cognition and engineering condensed industry, it is a high value added industry which can be specialized even in a little and average size house. It contributes to do relevant industry become high skilled and value added by supplying assorted important merchandises such as dyes, pigments and gums. However, there is typical proficient distinction of single merchandises and it is difficult to copy since there ‘s small similarity and due to short merchandise life rhythm, and it is polar that uninterrupted put on proficient and research development and accumulate cognition. In add-on to that, the engineering of industrialised states tends to monopolise the planetary market ( e‚?iz?e·? , 2007 ) .
Fifth, it is characterized as a representative development industry. Recently, the scope of all right chemical industry is enlarging and diversifying with the coming of merger engineering by being connected with the so called freshly developing industries such as IT, BT, and NT. And its function becomes larger as a ‘bridging industry ‘ to recognize future hi-tech industry ( e‚?iz?e·? , 2007 )
The last feature of the all right chemical industry can be industrial location. It can roll up and pull off basic scientific discipline research consequence and cognition and bunch around universities or research institutes where proficient skill is comparatively easy ( e‚?iz?e·? , 2007 )
3.2. Categorization of the Fine chemical industry
All right chemical industry is a little and diversified value added industry matching trade goods chemical which is an industry of big, less assortments and low value added. There are assorted sectors such as medical specialty, dyes, pigments, cosmetics, gums, chemicals for images and agricultural chemicals. Many people become interested in specialty chemical as distributing constructs of high and specialised engineering and high value added and increasing demands of wellness and wellbeing.
3.3. Major tendency of the planetary all right chemical industry
Global all right chemical industry is late specialising in high value added field such as intermediates and new stuff and proficient specialisation is undergoing based on nucleus engineering of industrialised states
In peculiar, though it costs a batch for proficient development in all right chemical industry such as developing new stuffs, universe market can be obtained once it win. That is the ground that taking chemical corporations keep puting on research and international articulation surveies are besides facilitated. It is taking larger portions in environment and energy relevant industries which considered really of import field since 21st century.
3.4. The mentality of planetary all right chemical industry
The market size of the planetary all right chemical industry will be bigger an mean 5 % per twelvemonth and it is expected to make an about 1755billion dollars in 2013 [ see table1 ] .
As an increasing rate of demand and fight are weakening, taking corporations maintain puting on researches to develop new stuffs. Although it takes tonss of clip and money, investing and international articulation surveies keep continue for its influence and high value added.
4. Paints and coatings industry and market overview
In old twelvemonth, the planetary economic recession has influenced pigments and coatings industry. From twelvemonth 2002 to twelvemonth 2007, the planetary pigment and coatings market has steadily grown at an one-year rate of 5 % regarding volume and 7 % sing gross. The market has stayed flat in twelvemonth 2008 and 2009. In 2008, entire planetary grosss of pigment and coatings market were approximately $ 90 billion ( Detiveaux, 2009 ) .
The cardinal sections of pigments and coatings market are cosmetic coatings, automotive coatings, wood coatings, protective coatings, pulverization coatings, and other industrial coatings.
Among them, globally, the cosmetic coating section has been expanded at an one-year rate of about 6 % regarding volume and about 8 % sing value. Likewise, industrial coatings have expended more than 6 % at one-year rate. Powder coatings and protective coatings have pealed the highest one-year growing rates. Automotive refinish has undergone the lowest mean one-year growing rates. It is of import to observe that there has been important regional fluctuation in growing rates within the assorted major market sections ( Detiveaux, 2009 ) .
However, the coatings and pigment industry has statured in western states. As a consequence, many of the planetary companies begin to come in emerging markets such as Eastern Europe and Asia Pacific, and those part has become the largest geographic part for pigment and coatings industry with more than 55 % planetary market portion ( Anonymous, 2010 ) . Particularly in China and India, surfacing industry has quickly grown. In Asia Pacific part, protective coatings and pulverization coatings have attained comparatively high growing rate ( 2004-2010 ) , and the growing rate of automotive coatings and decorative is 9 % during those old ages [ see figure 2 ] . Most major pigments companies involved in those market and top 5 companies get about 40 % of market portions [ see table 2 ] . Europe is the following largest country with about 30 % of the planetary market portion. NAFTA follows Europe and history for about 20 % of the market portion ( Detiveaux, 2009 ) .
Paints and coatings industry is straight influenced by economic environment. That is, pigments and coatings demand is largely driven by the demands for the terminal usage merchandises. For case, in general, with economic system downswing, ab initio the demands of end-use merchandises, such as cars and furniture demands are declined. Simultaneously, it is damaging toward pigments and coatings maker. In add-on, the degree of building decreased, and it straight impacts on other industrial coatings.
5. KCC ‘s Technology invention scheme
5.1 Automotive pigments
KCC is the first domestic auto pictures supplier to KIA and Hyundai. Last 20years, with the rapid growing of the Korean automotive industry ( see table 3 ) , KCC ‘s auto picture concern has experienced stable growing. Particularly, auto painting procedure from the development colour to concluding feedback is closely related to car makers, and consequently maintaining concerted relationship between car house and pictures house is indispensable. As a consequence, KCC has enjoyed entirely functioning pictures and coatings to KIA and Hyundai which are the major car company in South Korea. However, the auto pigments market became intense under perfect competition, and it became Red Ocean market ( KCC CORPORATION, Feb, 2009 ) .
Korean automotive company, KIA and Hyundai, has expanded their concern in planetary market ; they progressively put their investing for constructing planetary web, and entirely owned fabricating installations in the worldwide market. KCC maintain provision auto pigments Hyundai motors foreign workss in China, Turkey, and India, and KIA motors in China. Not merely that, KCC besides provides auto pigments to other foreign automotive companies in Iran, Vietnam and Egypt.
Car pigments include three coatings which are electrodeposited coating, surface, and mule immune top coatings. Electrodeposited coating is for forestalling corrosion and surface mule immune top coatings is for bettering exterior. Their development normally consists of 5 stairss ( combination-dispersion-finishing-monitoring-packing ) ( KCC CORPORATION, Feb, 2009 ) . First, pigments are made of pulverization, rosin, dissolver and other additives, and those stuffs are combined in a armored combat vehicle utilizing solvent. Second, the factory base which is the completed combination is forced to be shocked to downsize the molecule in the combination. This is called dispersion measure. After that, the pigments are moved to other armored combat vehicle to command the quality to run into the proper criterions. Forth, monitoring of the pigments are conducted to look into nonvolatile, atom size, and viscousness. Finally, acceptable quality degree merchandises are packed in carryall, membranophone or can.
Car painting procedure normally comprises of 3coat system ( electrodeposited coating, surface, and mule immune top coatings ) . In general, auto picture processes has been barely changed, and it has been considered the most conservative procedure within auto fabrication. However, presents, many companies try to cut down cost by cutting the 2nd coating measure which is surface. In add-on, through passage from horizontal pigments procedure to perpendicular pigments procedure, the length of the line is reduced at 25 % ~50 % .
Another issue in auto pigments procedure is volatile organic compound ( VOC ) . It refers to organic chemical compounds which have important vapour force per unit areas and which can impact the environment and human wellness ” ( Wikipedia, VOCs ) . VOC emanation from auto pigments account for about 10 % of the entire VOC emanation ( KCC CORPORATION, Feb, 2009 ) . Thus, many states regulate VOC emanation, and program to cut down bound on VOCs emanation. Most of VOCs emanation arises from surface measure. A figure of companies try to develop waterbased pigment composing to avoid such environmental ordinance. In the hereafter, those engineerings are progressively of import to auto pigments development.
5.2 Building pictures
Building pigments used on interior and outside wall, and floor, are most friendly pigments to the clients. Nowadays, the cardinal concerns of edifice pigments are doing environmentally friendly merchandises. Therefore, the figure of clients who find high quality and environmentally friendly pigments increased over times. However, due to economic system recession, building companies prefer general pigments, while the client ‘s environmental and wellness perceptual experience addition. As consequences, KCC tries to supply low-cost edifice pigments merchandises, but increase the quality and develop environment friendly constructing pigments. Consequently, in 2003, KCC develop high quality pigment which is i??i??e?? ( to the wood ) ” . With environment friendly and comparatively low monetary value, it obtained Korean Standard, and since its development, it has extended the merchandise lines with 15 different types of i??i??e?? ” ( to the wood ) ( KCC CORPORATION, Mar, 2009 ) .
As mentioned above, the roll uping pigments market is conservative, since merchandises in the market is non diverse, and mediators or bureaus power is high so monetary value is comparatively low. Therefore, even the response to high quality merchandises from the market is slow. As a consequence, KCC innovate development procedure, In-can- system ” and CCM web system ” which is another important procedure of KCC pigments ( KCC CORPORATION, Mar, 2009 ) . In-can system is the ways of making a new pigment colour based on base pigment colour. By seting colorant to establish colour, a individual can get his/her ain colour. It is appropriate for little measure batch production and besides it is more likely to run into clients ‘ penchant than Co-Grinding Loding which is paint development procedure in a program. Now 2009, 216 bureaus are utilizing this system. What is more, CCM is besides aid to run into client demands. CCM refers to computing machine colour matching. It is an automotive pigment colour development system, and it complement In-can system. The ground why CCM is needed is because it can provide little measure volume to the client by bureaus. CCM plan does non utilize local Personal computer, but it is connected KCC waiter, and bureaus can utilize CCM. Now, 44 in-can bureaus are utilizing CCM, and they can utilize assortment of colour informations through the KCC waiter system ( KCC CORPORATION, Mar, 2009 ) .
5.3 Ship pictures
With the beginning of the Korean transportation industry, KCC provides transporting pigments in Ulsan, in 1974. In the earlier times, KCC conducted strategic confederation with Hempel and Carboline to obtain basic transportation pigments engineering. After that in 1979, KCC established chief research centre and attempts to develop ain pigments development engineering for ships. Subsequently, KCC develop a assortment of the new merchandises on their ain engineering during 1990 ‘s. Since its production, KCC supplies pigments to the 1925 new ships and the 3029 repaired ships ( KCC CORPORATION, JULY 2009 ) .
Transporting pigments is mostly consists of 3 classs which are rust defying pigment, antifouling pigment, and completing pigment. Generally life of a ship is about 25 old ages. It is easy to be corrosion by sea H2O. Rust defying pigment can heighten to protect salt which is Ph 8.1. Particularly H2O ballast armored combat vehicle of the ship can be protected by the pigment. KCC produces EH2350 Series and EH2030. Antifouling pigment aid cut down clash caused by H2O while in sailing. It is of import engineering, because by lessen H2O clash, it consequences in cut down cost of oil. KCC produces Seacare A/F795 series. Lastly, completing pigments are protected colour from the temperature or solar heat. It can maintain its colour and lustre longer. KCC produces Korepox popcoat series and Koreaxane ST1020. It got through the appraisal of EMMAQUA ( Equatorial Mount with Mirrors for Acceleration with Aqua ) in Arizona and Florida. It was proven high quality of completing pigment in a rough environment ( KCC CORPORATION, JULY 2009 ) .
KCC transportation pigment is applied to assorted ships such as FPSO which is a cutting border, higher value-added ship, LNG and LPG ship, container ship, car transporting ship, boring ship and sub-marine. With go oning research and development, KCC has focused on two engineerings which are antifouling pigment and rust resisting pigment. KCC develop ego smoothing copolymer pigments based on metal. In add-on, KCC maintain developing nano-technology which realizes better heat opposition, flexibleness, and ability of protection against corrosion. Besides, with rapid attending of environment saving issue, KCC is seeking to water-based pigment for ship to fulfill environmental ordinance.
6. Global enlargement and Challenges
KCC has been hold top place in a domestic all right chemicals industry with uninterrupted development and invention. Now, KCC is about to spread out their concern to the universe market. However, the things are non really positive to KCC. The planetary economic recession has been improved in 2010, yet it still influences planetary pigments and surfacing industry. Decreased in economic activity, disbursement of building and maker has declined, and it consequences in negative effects on pigments demand ( Detiveaux, 2009 ) . In add-on, western states such as US and Europe ‘s market already statured.
Another challenge is that environmental issue becomes progressively of import. Thus, merely low cost merchandises may non vouch the success of pigments and surfacing merchandises in the planetary market. However, production development which meets the environmental ordinance normally cost more. Particularly, VOCs emanating from pigments and coatings are ineluctable.
In amount, extenuating production costs, but developing environmental friendly merchandise can be the first concern to come in foreign market.
7. Managerial recommendation
KCC is successful chemical companies in a domestic market based on strict research and development. Particularly, pigments and coatings production is a cardinal concern to the companies. KCC entirely provides auto pictures to the major companies like Hyundai and Kia. Other pictures merchandise line is besides known to high quality and good monetary value. However, planetary market is much more intense. Customer can be more sensitive to the merchandise quality and monetary value. Thus I give three suggestions for KCC ‘s internationalisation.
First of all, cut downing production costs are indispensable. To achieve this, KCC now should develop a shorten procedure in auto pigments development. If KCC combine Surface procedure and coating procedure, they can bask cost leading through shorten development procedure.
Second, CCM system and in-can system should be applied to foreign market every bit good. Idea for CCM and in-can system is for little measure batch production. Through this, KCC will acquire more chances to run into antecedently unsatisfied client demands. In add-on, KCC will be able to capture the tendency in a foreign market via KCC system.
Last, it is the most of import affair to KCC. Particularly in a planetary market, KCC should bring forth pigments and coatings non merely run into client demands, but besides meet the host-countries ‘ ordinances, such as environmental ordinance. Nowadays, environmental issues are progressively of import. Sometimes, those sorts of limitation can be damaging barrier to the new merchandises based on advanced engineerings ( Hauschildt, 1999 ) . Particularly, VCCs are widely known to the market as harmful stuff. World ordinance on VOCs is expected to be more rigorous. Consequently, KCC will be continued to be concerned about environment friendly pigments and coatings, but high quality merchandises.
KCC has continuously strived to develop the colourss which to the full meet the client demands and society demands as good. Presents, KCC is seeking to accomplish high value-added to their major merchandise lines which are pigments, architectural glass, and PVC window and drifting. In add-on, under the globality end, KCC is seeking to concentrate on the green growing concern. KCC is ready to spread out their concern to the planetary market based on client ‘s assurance in the domestic market. However, KCC should maintain eyes on get the better ofing challenges in a planetary coatings and pigments market.
Under planetary downswing and pigments and surfacing markets saturated, KCC should develop a shorten procedure in pigments development to cut down costs. Besides, by working system and in-can system, KCC can be more likely to run into planetary clients ‘ demands. Most significantly, KCC should bring forth pigments and coatings non merely run into client demands, but besides meet the host-countries ‘ ordinances, such as environmental ordinance with environment friendly pigments and coatings.
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