MechChem Africa February 2017

In early February 2017, Kansai Plascon Africa Limited (KPAL), headquartered in Johannesburg, South Africa and a subsidiary of Kansai Paint of Osaka, Japan, announced a binding agreement for the acquisition of 100% of Sadolin Paints’ operations in Kenya, Uganda, Tanzania, Zanzibar and Burundi – subject to regulatory approvals and other customary conditions. MechChem Africa reports this story and presents some of the companies industrial offerings. KPAL acquires Sadolin Paints

K ansai Paint is aglobal companywith major operations in: Japan, China andEastAsia; SouthAsiaandSouth EastAsia;theMiddleEast;andAfri- ca. It is oneof the toppaintmanufacturers and distributorsworldwidewithadiverseproduct offering covering the decorative, industrial, protective coatings and automotive space. It hasworld leadingResearchandDevelopment facilities catering for development across all products with major R&D facilities in Japan, India and South Africa, which continually driveinnovationandexcellenceinthemarkets these products serve. Sadolin Paints is the undisputed market leader in the East African paint industry with a history dating back to 1959. Sadolin Paints is the largest paint manufacturing group in East Africa and the only one with a footprint comprising presences in Kenya, Uganda, Tanzania, Zanzibar, Burundi andRwanda, with exports to several neighbouring countries in- cluding South Sudan, DRC, Ethiopia, Djibouti and Somalia. The acquisition of Sadolin Paints is part of Kansai Paint’s global expansion strategy.

management and staff to ensure the conti- nuity of the business and services offered to Sadolin Paints’ valued customers, and to maintain its position as amarket leader in the East African markets. As part of the transaction, the parties have also agreed to separately investigate the acquisition of Sadolin Paints’ operations in Rwanda. Kansai Plascon offers internal and external corrosion-protection systems for tank lining and other hazardous environments in the petrochemical and refinery industry. These coatings offer ideal protection against vari- ous fuel types. The specialist coatings manufacturer and supplier has been involved with the pet- rochemical and refinery industry since the mid-1970s, points out Mike Byrd, national protective coatings specification manager at Kansai Plascon. “We assess sights for asset owners in the petrochemical and related refinery sector, Corrosion-protection for petrochemical plant

This acquisition further proves Kansai Paint’s long-term commitment to the African conti- nent, will reinforce KPAL’s leading position in Africa and establish its presence in East Africa with a total population of circa 285 million people, representing around 24%and 9% of the total African population and GDP respectively. Farid Masood, KPAL CEO says: “We are extremely excited about the acquisition of Sadolin. Our 2020 vision is now being trans- lated into realityasweevolve fromaSouthern African focused company to becoming a Pan African company, embracing the challenges anddiversityof the continent. Kansai’s strong brandheritage,globaltechnicalcapability,and trusted performance coupled with Sadolin’s respected reputation and presence in East Africa, will definitely strengthen our position as the leading paint company in Africa, en- hancing our future growth and performance.” KPAL believes that the benefits of the transaction will extend to all stakeholders of KPAL and Sadolin Paints, including dis- tributors and other business partners. KPAL intends to work closely with Sadolin Paints’

The specialist coatings manufacturer and supplier has been involved with the petrochemical and refinery industry since the mid-1970s.

Kansai Plascon is the market leader in the supply of decorative coatings and aerosol marking paint to the mining industry.

Kansai Plascon offers internal and external corrosion protection systems for tank lining and other petrochemical and refinery plant equipment.

24 ¦ MechChem Africa • February 2017