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PPG set up one of the largest glass fibre production bases in the world in Kunshan, Jiangsu Province. The base cost US$120 million and has an annual production capacity of 70,000 tons.

Chinese market

Last year, China's total coating output hit 3.82 million tons, a surge of 28.3 per cent from the previous year and an all time high.

Foreign companies account for 30 per cent of the market value.

Despite China's rapid development, domestic enterprises profits fell by more than 455 million yuan (US$56.9 million). A total of 13.9 per cent of domestic enterprises suffered a loss last year.

"The lack of technological innovation and intellectual property rights protection is one of the major factors in the loss sustained by domestic enterprises," said Wang Zhuo, executive director of the China Coating Industry Association.

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