The total market for these coatings, including non-automotive applications, is estimated at 278,000 tons across the eight countries. Total demand in 2010 is expected to reach 478,000 tons, equivalent to average growth of 12% per year. In fact, automotive OEM coatings, powder coatings and coatings for plastics will grow on average by about 12-14% per year, with refinish growth trailing slightly at about 9% per year.

From the individual markets:

• The automotive OEM coatings market will show strong growth as a result of the automotive industry exporting output to Western Europe. Russia is by far the most attractive economy for this, but the location of the Czech and Slovak Republics also bodes well for the future.

• The automotive refinish market is highly competitive and in most countries quite fragmented, with a tendency to be dominated by "the big four." In some economies, segmentation between the medium- and low-quality markets is poor. EU legislation on solvent emissions is expected to reduce the consumption of low-quality refinishes by chasing small or illegal workshops out of the market.

• Powder coatings will demonstrate attractive growth, particularly in segments such as white goods and construction. Turkey is a particularly strong growth market while the Ukrainian powder segment is being driven by captive capacity investment by end-users. Many of the leading European powder coatings companies are competing for business in these markets.

• Coatings for plastics exhibit strong demand within the electrical goods and automotive industries, and Poland, Turkey and Russia will emerge as key markets. There is a strong German influence in the plastic-finishing segment in the more developed markets, while others will continue to seek better technology from the west.