ASCs need to be as close to clients as possible to reduce the lead-time for production and product delivery in the local market. "In the long run, we may consider the option of establishing local manufacturing facilities here to make aerospace-related products. For the time being, we can rely on ASCs to reduce the lead time by doing tailor-made processing jobs and offering customer-oriented services," Fang says.

The market shares for PPG Aerospace's major product portfolio in China, namely coatings, sealants and windscreens, are 85 per cent, 90 per cent and 60 per cent respectively. The Netherlands-based Akzo Noble is PPG Aerospace's major competitor in China for coating services.

To cement its market leadership, PPG is defending its current market share then tapping into new market sectors.

The company is launching new products, such as environmental protection pre-treatment chemicals, high-performance coatings, light-weight and fast-cure sealant to better meet clients' demands. It is also offering clients total service solutions (TSS), including product management and training. For Airbus's Tianjin A320 assembly line, PPG Aerospace is providing coating TSS.

"We are offering TSS for the Airbus ranging from application equipment, personal protective equipment and training services for the actual products. The business model will apply to our other product portfolios as well," Fang says.

(China Daily 11/20/2006 page2)

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