Japanese firm Kansai Paint on Wednesday entered the East African market through a deal of about 100 million U.S. dollars to acquire 90 percent of Kenya-based Sadolin Paints.

Kansai Plascon East Africa President Gary Van Der Merwe told a media briefing in Nairobi that through the deal, it will establish physical presence in Kenya, Uganda, Rwanda and Tanzania.

“Our entry into the East African paint market is part of our expansion plans to tap into the growing emerging markets,” he said.

“East Africa is one of the fastest growing regions on the continent with a rapidly emerging middle class, increased spending power and growing urbanization,” the president said.

Kansai Paint has already operated in Japan, China, the Middle East, Europe and Africa.

Der Merwe said that Kansai Paint will in the next two years decide whether they will acquire the remaining 10 percent of Sadolin Paints.

“The decision will depend on a number of things including how the paint industry performs,” he added.

The Japanese firm has been attracted to East Africa due to a growing number of vehicle assembly firms that have established presence in the region. “One of our best performing products is the automotive paints,” Der Merwe said.

In order to maintain its competitive advantage, Kansai Paints plans to invest over 1.5 million dollars to modernize its operations in East Africa.

The firm already has 14 manufacturing sites in Africa including in Malawi, Mozambique, Nigeria. Enditem

Source: Xinhua/NewsGhana.com.gh