According to a new report from Information Research, total demand for automotive coatings in Eastern Europe is expected to reach 478,000 metric tons in 2010, equivalent to an average growth of 12% per annum (pa). In fact, automotive OEM coatings, powder coatings and coatings for plastics will grow on average by about 12-14% pa, with refinish growth trailing slightly at about 9% pa. The total market for these coatings, including non-automotive applications, is currently estimated at 278,000 metric across the eight countries, with powder coatings capturing 32% of the market; automotive refinishes, 29%; automotive OEM coatings, 26%; and coatings for plastics, 13%.

The report notes that 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.