A new report by Frost & Sullivan (F &S) has estimated that the offshore oil and gas paints and coatings market in Nigeria and Angola would hit $1.13 billion in 2019.
Founded in 1961, Frost & Sullivan has more than 40 global offices with more than 1,800 industry consultants, market research analysts, technology analysts and economists.
Titled: “Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola”, the report stated that the availability of raw material and local manufacturing capabilities play a vital role in driving the growth in the category.
Co-authored by Frost & Sullivan’s Chemicals and Materials Research Analyst, Abdul-Baasit Abdullah, the report provides an overview of the Nigerian and Angolan offshore oil and gas paints and coatings markets through 2019.
The report noted that more than 150 companies participate in the Nigerian market, including Berger Paints, Portland Paints and Products, CAP PLC, DN Meyer PLC, and International Paints.
In Angola the report stated that 25 companies participate, led by Hempel, Azko Nobel, Dekro, Sigma Coatings, and International Paints.
“At the total market level, this research outlines market drivers and restraints, forecasts and trends, and a market share with competitive analysis. Then, each country is examined separately in terms of volume forecasts and market share by segment (marine, industrial protective, and can and coil). The study concludes with strategic recommendations,” said Abdullah.
The report stated that Nigeria local offshore oil and gas paints and coatings production will exceed imported volumes by 2019, with partnerships between local and international companies playing a vital role in supporting the growth.
The report considered applications of paints and coatings in offshore oil and gas facilities, dry docks and fabrication yards.
Abdullah further stated that the subsidisation of manufacturing makes Nigeria and Angola vital to the production of offshore oil and gas paints and coatings in Africa, with the goal of African needs being fulfilled by African countries.
“The drop in crude oil prices has reduced the base costs of paint through a reduction in raw material cost of 8.3 per cent, driving competitive pricing and consumption,” he added.
According to the report, low transportation costs of raw materials will help ensure cost-competitiveness and facilitate construction of local production facilities.
Suppliers could opt to import raw materials and establish mixing plants to blend them, as import duties are lower for unfinished than for finished goods, the report said.
“While in-country manufacturing is a must-have, building a brand reputation will be essential for long-term, sustainable growth. Partnerships between local and international companies will speed up the development of high-quality products and assist offshore oil and gas paints and coatings manufacturers in meeting demand in the Nigerian and Angolan markets,” Abdullah added.
