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THE PAINTS AND VERNISHES INDUSTRY IN JORDAN, STATUS AND OPPORTUNITEES

By

Dr. Ebrahim Khrais Dr. Ahmad Assaf

Assis. Prof. Chair.of Economics Assis. Prof.

Economics Department- Zarqa Private University - Zarqa – Jordan [email protected] [email protected]

15. Feb. 2008

INTRODUCTION Paint is defined as the group of emulsions, consisting of pigments

suspended in a liquid medium, for use as decorative or protective coatings. Today, contemporary paints and coatings consist of countless compounds uniquely formulated to fulfill the varied requirements of hundreds of thousands of applications. "Paint" ranges from the broad group of environmentally-sound latex paints that many consumers use to decorate and protect their homes and the translucent coatings that line the interior of food containers, to the chemically-complex, multi-component finishes that automobile manufacturers apply on the assembly line.1

Paint made its earliest appearance about 30,000 years ago. Cave dwellers used crude paints to leave behind the graphic representations of their lives that even today decorate the walls of their ancient rock dwellings.2 The paint industry became a thriving part of the Jordanian economy during sixteen's of the last century . The first recorded paint factory in Jordan was reportedly established in Amman in 1962 named JORDAN SIPES PAINTS CO. LTD.

Paints and varnishes in general is a small industry with a total number of 150 establishments and employing 1575.3 Although the number of establishments of this sector decreased during the study period, the sector has witnessed substantial growth in production since 2002 amounting to an increase of around 78%. The value added created by this sector has increased from JD (12.3) Million in 2001 to JD (21.0) Million in 2006 amounting to an increase of around 71%, indicating more sophisticated production processes in one hand, and meeting the higher demand on construction on another hand.

1 National Paints and Coatings Association, USA, 2006. 2 NBCA, 2006 3 Jordan Chamber of Industry ( www.aci.org.jo), 2007.

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While the exports of Paints and varnishes increased by 16.4% during the period (2002-2006), the imports have increased 182%. This could be explained by the gap of prices, quality, varieties of colures, and the image and mentality of the people. Thus, this small industry is experiencing gradual growth. 1-1 REVEW OF EMPIRICAL WORKS

Although a little empirical studies have been conducted with the aim of discerning the performance of the paint and varnishes industry either in Jordan or any other countries. These evidence can be divided in to tow over all categories: Those looking for an over all picture of the sector by including the performance, production, output, market characteristics, and industry conditions; and the second category are in shape of key factors reports for a specific country. But before summarizing the main conclusions of each of these literature, a few comments on their methodological framework are in place. Most of the studies suffer from exactly the same shortcoming as a general empirical literature on evaluating such sector. The second note on this regard is that most of the studies used reports as the only reference for the data, in such a way that most of the results belt on data not on a real facts about the real challenges, problem and constraints facing the sector. The results of these studies and reports are as following:

- IBIS World Industry Report, 2007, evaluate the performance of Paint Manufacturing in Australia in terms of revenue, value added, exports and imports, employment, and other trends like environment impact. The report used a descriptive method to analyses the sector depending on data produced by the Australian Paint Manufacturers Federation. The report classified the sector in to ten activities (products and services). The main conclusion of the report include a downward trend falling of the industry value added and employment throughout of the performance period, but a high level of industry concentration. The report also expected that in 2006-07 the Australian Paint Manufacturing Industry will generate revenues of $2,100 million, representing real growth of 2% on the previous year. The industry's contribution to the Australian economy is expected to be in the order of $560 million.

- Equitymaster's Research Reports, paints in India, 2007. according to this report the per capita consumption of paints in India stands at 0.5 kg per annum as compared to 1.6 kg in China and 22 kg in the developed economies. India's share in the world paints market is just



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0.6 per cent. The report studies the performance of the paint sector for the period (2002-2007) and concludes that the decorative paints account for over 75 per cent of the overall paints market in India. And the fact that the unorganized sector controls around 35 per cent of the paints market, wile the organized sector accounting for the balance. In the unorganized segment, there are about 2,000 units having small and medium sized paints manufacturing plants. The study assure that the reduction in excise duty rates over the years has led to an increase in the share of the organized sector players in the paints industry, as lower duties bring down the price advantage enjoyed by unorganized players. Also, infrastructure investment and thriving construction activity had helped the paints industry attain an average growth of 8-9 per cent in the last four years.

- John R. Holmes, Architectural Coatings and Aerosol Paints: Usage and Emissions. This study was performed to summarize the survey results of California sales of architectural coatings (house and building paints) in 1990 and aerosol paints in 1992 conducted by The ARB, and to determine to what extent emissions from solvent-borne architectural coatings and aerosol paints could be eliminated by implementing a control measure for architectural coatings proposed in 1989 by the ARB and the California Air Pollution Control Officers Association (CAPCOA). The researcher summarized the survey data and developed a computer program in which data from the architectural coatings survey were used to estimate the reductions from architectural coatings and aerosol paints that would result from implementation of the proposed control measure. The study fined that In 1990, 172 companies sold over 70 million gallons of architectural and industrial maintenance coatings. VOC emissions from these coatings for that year are estimated at 36,200 tons. The 24 largest companies were responsible for more than half of the sales. Sales were reported in 33 coatings categories; close to half the sales were in the flat paint category. Water-borne coatings contained mainly acrylic and vinyl resins as the base; solvent-borne coatings contained mainly alkyd resins as the base. Although water-borne coatings accounted for about three-quarters of all sales, VOC emissions from solvent-borne coatings totaled more than twice those from water-borne coatings.

- Asia Africa Intelligence Wire, "Paints Segment Glows Despite Clouds Over Economy", 31-AUG-02. This article shows that the Indian paint sector has reported 13 percent growth during Apr- Jun 2002. The article also shows that the increase in paint sales has been attributed to the positive growth in the steel and cement industry resulting in growth in the construction sector. Paint manufacturers are offering home painting solutions and are installing tinting systems to help the



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customer choose his choice of colour. The paint manufacturers are guarded about sustaining profits earned in Apr-Jun 2002 for the rest of 2002-2003.

- Canadian Paint and Coatings Association, Structure and performance

of the Canadian paints industry, The report conduct a Comparison between Canada and U.S.A in terms of paint industry and found that The value of shipments per employee (adjusted to constant Canadian dollars) has been consistently higher in the U.S. paint industry than in the Canadian industry. and this difference is widening. The report argued that Part of this difference can be attributed to the presence of larger-scale plants in the United States. A large portion of the Canadian industry is composed of subsidiary operations of multinational firms. these firms had originally established plants in Canada largely because of the high Canadian tariffs on imported paints and coatings, and thus were scaled to this market. With North American product rationalization resulting from the FTA, these multinational plants now tend to serve North American markets, but in most cases these are still constrained from producing commodity products by virtue of their lack of size, and tend instead to focus on niche markets.The report expected that the paint industry in Canada is projected to continue to grow in close relation to overall growth in the economy. Within the industry, there will of course be sub-sectors that grow much quicker. these higher growth sectors will tend to fall into the higher technology portion of the industry, where a new type of coating is developed in response to a performance or environmental shortcoming in a more traditional product.

- AMA Research company, Paint and Effects Market Study in UK,

2005. the study declared that the UK paint and effects market has witnessed healthy levels of growth with factors such as fashion trends and a heavy media influence, particularly from TV and magazine coverage, increasing consumer interest in areas such as garden and home makeovers. A general increase in consumer activity within the DIY market has also aided sales while the rapid increase in the housing market has encouraged many consumers to undertake DIY activity to gain the maximum potential from their property. In 2004 and 2005, increases in retail prices due to higher material costs is likely to affect sales performance. The study also illustrates the performance of the UK paint& effects and woodcare market from 1998, with forecasts of future performance of the market until 2008. The study believe that the outlook for 2005 and onwards is reasonable, although the continuing rise in raw materials prices is



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likely to affect the future performance of the overall market. Factors such as a fall in consumer confidence levels and a fall in consumer spending are also likely to dampen sales to some extent in the short to medium term future, with high street sales reported to be down in 2005. The housing market has also witnessed a significant slowdown in the last year with many consumers now holding back until future performance becomes clear, which is having an effect on the amount of RMI activity undertaken.

- Icon Group International, Inc. "Paints and Varnishes in Poland: A

Strategic Entry Report" 1997 , the report draws on a methodology developed by Professor Philip Parker at INSEAD in Fontainebleau, France. The methodology decomposes a country's strategic potential along two key dimensions: (1) latent demand, and (2) accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. The report first investigates the economic fundamentals affecting Poland. These fundamentals are the source for Poland's latent demand. Then, the subsequent chapters detail Poland's accessibility. This evaluation covers a number of entry alternatives, including export strategies, and local direct investment strategies. The primary audience for this report is managers involved with the highest levels of the strategic planning process, and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning in Poland. The conditions investigated in this report include local marketing (advertising, distribution, pricing issues) and entry strategies (opening an office, joint venturing, etc.), as well as human resources management (labor laws, costs, regulations).

- UNDP," Manufacture of paints, varnishes and similar coatings,

printing ink and mastics", MOROCCO,2002. the report has testing the performance of Centre Marocain de Production Plus companies in Marocco. The company has a SME and represents the paint industry producing 9000 tons per year. The study concludes that that the main environmental problems are coming from a bad management of solvents and water. This is, lot of COV and waste water are generated.



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1-2 PROBLEM OF THE STUDY

The problem of the study lies in the following questions: what is the real status of the paint sector in Jordan, and accordingly what is the opportunities for this sector ? 1-3 OBJECTIVE OF THE STUDY To assess the existing paints and varnishes industry in Jordan to identify different issues related to the competitiveness of the sector. While the limited timeframe of the present study hampered data collection, such data would be useful to both the public sector in formulating policies and the private sector in determining investment opportunities. Moreover, it would help to identify likely areas of FDI inflows into the country.

1-4 SCOPE OF THE STUDY The study is divided in to two phases: Phase I: The Most important characteristics of the paints and varnishes

sector: This phase covers a sector overview, analysis of the Jordanian paints and varnishes sector related to market, investments, exports and imports, and other trend for the period (2002-2006).

Phase II: SWOT analysis of paints and varnishes sector:

This phase covers an in-depth analysis of paints and varnishes industry to identify strengths, weaknesses, opportunities, and threats trends of the sector.

1-5 METHODOLOGY OF THE STUDY

To achieve the objective of the present study, the researchers adopted the descriptive methods and based on fieldwork that included extensive interviews with private and public sector officials in the country (see Annex A for a list of meetings conducted).



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CHABTER(2) MOST IMPORTANT CHARISTARISTCS OF THE SECTOR 2-1 LOCAL AND FORIFGN INVESTMENTS:

Table (2-1) Local and foreign investments in paint sector (2002-2006)

Year Capital Paid

(absolute value) Government

Share % Foreign Share %

2002 12.4 0 0 0.2 1.7

2003 11.6 0 0 0.2 1.8

2004 11.5 0 0 0 0

2005 13.2 0.5 3.6 0.1 1

2006 10.4 0 0 0.3 2.5

Source: Department of Statistics( different Issues) Diagram (2-1) Local and foreign investments in paint sector (2002-2006)



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Local & Foreign Investment

2.5

0

97.5

Local Private share Government share Foreign Share

Table (2-2) Type of investments in paint sector (2002-2006)

Year Number of projects

Total Investments

Nationality

1996

-200

6

27

21

Jordanian, British, Palestinian, Egyptian, Sweden, Iraqi

Source: Jordan Investment Board, 2007 report.

2-2 ESTABILISHMENTS AND EMPLOYEMENT Following a series of falls in the early 1990s in line with the poor performance of the industry, the paints industry employment was at all time low of 1000 in1990-2000. However according to the Department of



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Statistics data it then staged a recovery, boosted by a 23% rise in employment levels in 2000. By year end 2006 employment levels in paint sector reached 1575 only. The number of establishments has increased from (120) in 2002 to (150) in 2006, with a growth rate of (32%). The increasing number of establishments during this period was due to increasing demand by the Iraqi market.

Table (2-3) Establishments and Employees in paint sector (2002-2006)1

Year

2002 2003 2004 2005 2006

Establishments 120 128 145 146 150

Employees 1232 1250 1262 1472 1575

Source: Department of Statistics , ( different Issues)

Diagram (2-2) Establishments and Employees in paint sector (2002-2006)

1 see Annex B for a list of paints establishments.

Establishments

2002 2003 20042005

2006

40

45

50

55

60

Years

2002

2003

2004

2005

2006



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2-3 GROSS VALUE ADDED According to table (4) chain volume of value added for the Jordanian Paint Manufacturing Industry, industry value added experienced an upward trend growth throughout most of the study period. The gross value added created by this sector has increased from JD (12.3) Million in 2002 to JD (21.0) Million in 2006 amounting to an increase of around 71%.

Table (2-4) Value Added of the paint sector (2002-2006)

Source: Department of Statistics

Diagram (2-3) Value Added of the paint sector (2002-2006)

2002 Growth rate% 2003 Growth

rate% 2004 Growth rate% 2005 Growth

rate% 2006 Growth rate%

Value added 12.3 - 12.8 4% 13.3 4% 16 20.30% 21 31%

Employees

2002 2003 20042005 2006

0

500

1000

1500

2000

Years

2002 2003 2004 2005 2006



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2-4 GROSS OUTPUT The gross output data shows that it increased from JD (43.2) Million in 2002 to JD (77) Million in 2006 amounting to an increase of around 78%.

Table (2-5) Gross Output of paint sector (2002-2006)

2002 Growth



rate%

Output 43.2 - 49 1340% 50.3 2.6% 58.7 16.60% 77 31%


Diagram (2-4) Gross Output of paint sector (2002-2006)

Gross value added

2002 2003 20042005

2006

0

5

10

15

20

25

years

million (JD)

2002 2003 2004 2005 2006



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2-5 INTERMEDIAT CONSUMPTION OF GOODS The data shows that the total value of goods purchased for Intermediate use have increased from JD (28.2) Million in 2002 to JD (52.1) Million in 2006 amounting to an increase of around 85%.

Table (2-6) Intermediate consumption of goods of paint sector (2002-2006)

Source: Department of Statistics Diagram (2-5) Intermediate consumption of goods of paint sector (2002-2006)

Year 2002 Growth rate% 2003 Growth


rate% 2006 Growth rate%

Intermediate consumption

of goods 28.2 - 33.3 3 34.3 - 39.6 15.4 52.1 31.5

2002 2003 2004 20052006

0

20

40

60

years

2002 2003 2004 2005 2006

Gross output

2002 2003 2004 20052006

020406080

years

million(JD)

2002 2003 2004 2005 2006



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2-6 INTERMEDIAT CONSUMPTION (ELECTRICITY, FUEL AND WATER)

The data shows that the bill of electricity, fuel, and water has increased from JD (31) Million in 2002 to JD (55.7) Million in 2006 amounting to an increase of around 80%.

Table (2-7) Intermediate consumption ( Water, Elect. Fuel) ,(2002-2006) Source: Department of Statistics Diagram (2-6) Intermediate consumption ( Water, Elect. Fuel) ,(2002-2006)

2-7 DEMAND DETERMENENTS The demand for the Jordanian paint is determined by:

1. Activity levels in both the residential and non-residential trading sectors strongly influences the architectural and decorative segment.

Year 2002 Growth rate%

2003 Growth rate%

2004 Growth rate%

2005 Growth rate%

2006 Growth rate%

Intermediate consumption

( Water, Elect. Fuel)

31

- 36.1

16.4

37

2.5

42.8

15.6

55.7

30

2002 2003 2004 20052006

0

20

40

60

years

2002 2003 2004 2005 2006



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New commencements, additions and alterations in the construction of houses, residential buildings (including apartments, flats and home units), and non-residential buildings (such as hotels, motels and hospitals) are important factors in determining demand in this segment. As paint products are involved in one of the last stages of building construction, there can be a twelve month to two year lag before the effect of any expansion/contraction in building commencements is experienced by the industry.

2. Developments in the general economy influence the industrial segment. The industrial and automotive sectors generate demand for industrial coatings for vehicles, packaging and building products such as aluminium and sheet metals, and are generally determined by the level of economic activity.

3. Changing building styles and fashion trends. For example, the decline in demand for timber paints as a result of falling timber construction is being offset to some extent by increased consumer interest in decorative finishes. Fashion trends also influence the colour and finish of various paints.

4. Environmental concerns and pressures may also influence demand. 5. per capita income in Jordan is low, in which the purchasing power for

such product is not very high. 2-8 LIFE CYCLE In view of the very gradual pace at which the paint manufacturing industry changes, the paint industry has a very long life cycle. The industry is currently characterized by its mature stage in the cycle with clearly defined product segments, the continued rationalisation of products and brands and a slow rate of technological change prominent features of the industry. No major change to this status is expected in the near future. 2-9 SEGMENTATION

Diagram (2-7) Major Market Segment



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Major Market Segment

45%

55%

architecturaland decorativesegment

industrialsegment

There are two major market segments in the industry:

1. The architectural and decorative segment. This segment comprises retail sales to household consumers and trade sales to tradesmen and master painters. Thought to be the larger of the two, trade sales have also increased at a faster rate than retail sales in recent times. At the same time, sales made to the overall architectural & decorative segment have also tended to gradually increase over the past five years.

2. The industrial segment. This segment covers industrial coatings supplied to various industries usually formulated and produced for specific requirements. For example, coatings are produced for vehicles, packaging, and building products such as aluminium and sheet metals. Coatings supplied to the automotive industry for both original equipment and refinish on vehicles is the largest single sub-market within this segment.

2-10 INDUSTRY SPREAD BY LOCATION

Diagram (2-8) Industry Spread by Location

Industry Spreed By Location

90%

8% 2%Amman

Zarqa

Others

Paint production units are located in the most populous and industrialized governorates, Amman and Zarqa. Out of 150 establishments operating in manufacturing of paints in Jordan, 135 are established in Amman, were 12 in



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Zarqa, and only 3 in Irbid and south of Jordan. The main reason for such phenomena are the cost of transportation. 2-11 BASIS OF COMPETITION Industry participants face competitive pressures from various rivals who may operate on a national or international scale. Industry participants also compete at various stages along the supply chain; i.e. not just at the manufacturing stage but also in the distribution and retail of paints and coatings. Competition within the industry is essentially price based, particularly in the architectural and decorative segment, where product performance is perceived as relatively undifferentiated, though in recent times product quality, product range and product innovation have become increasingly important. This means industry operators must either become a major player in key product markets usually through cost advantage, or they must differentiate their product and become a market leader in a niche segment. Scale economies are difficult to achieve given that a substantial part of the market involves the production of small batches formulated according to customer requirements. Ease of product application and applicator cleaning are also increasingly becoming a new means of differentiating products, as is the production of "environmentally friendly" paints. In the industrial segment, the technical performance of the product is often the main competitive differentiator; in many instances this allows industry players to build niche businesses which command high margins. Factors such as product quality and customer service are also important in this segment. Thus in this segment, competition is not primarily price based. Cost advantage can be generated by operators from larger batch sizes and the application of automation. The (National Factory) is the leader in this segment. 2-12 REGULATION Companies operating in this industry are required to meet a set of environmental standards and various occupational health and safety regulations. The Jordanian Standards is the minimum requirement for the pain industry. Few establishments meets the international standards for export purpose. In relation to workplace safety, the regulation underpins occupational health and safety in relation to plant and equipment, hazardous substances, transport and storage and labelling of chemicals within the industry.



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There is no self regulated associations and schemes established to address health, safety and environmental issues, as well as technical, packaging, storage and distribution concerns. 2-13 COST STRUCTURE As can be seen the cost of goods sold is the single largest expense item (representing over half of revenues) reflecting the fact that the paint manufacturing process primarily consists of blending a wide range of raw materials by batch process. The second largest expense tends to be labour costs (representing an estimated 7% of sales in 2006 Distribution and advertising costs make up a significant proportion of overheads incurred by operators. These are included within "Other Costs", as are environmental costs which have also tended to increase in recent years.

Diagram (2-9) Cost Structure

Cost Structure

54%

7%

5%

3%

2%

1%

3%

25%

Cost of Goods Sold

Wages

Depreciation

Operating Expenses

Intrest Expenses

R&D Expendeture

Other

Profit

2-14 CAPITAL AND LABOUR INTENSITY The level of Capital Intensity in paint industry is medium. Although the Recent years have seen a continued increase in the number of employees, the industry move toward a more capital intensive production process in the face of intense industry competition. The industry is characterised by its medium level capital intensity, justified by the semi-automated production process operated by most industry participants. This has increased in recent years as companies have been forced to adopt various efficiency improving measures in the face of a highly competitive environment. However it is interesting to note that the most of small factories is currently in a "non capital intensive phase".



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2-15 MAJOR PLAYERS Diagram (2-10) Major Players

As can be seen, Deluxe company is the major player in paint sector1, accounting to 40% of the total market share. Followed by National Company (30%). Around 15% of the market is distributed by small establishments. CHABTER(3): COMPITITEVENESS OF THE SECTOR Jordan’s export competitiveness depends on its exchange rate competitiveness, labor and infrastructure costs, financial conditions, and trade policies. Unfortunately, Jordan’s exchange rate policies and a gradually widening differential between inflation rates in Jordan and the world markets dealing with dollar have driven up the real cross rate of the dinar (JD) against the dollar.2

1 As far as Industrial paint is concerned, National Company is concederd to be the first in range. It market share exceeds 75%. 2 The real cross rate is the nominal bilateral exchange rate adjusted for relative movements in the national prices of Jordan and a partner country. As such, an increase in the index reflects an appreciation or revaluation and a decline denotes a devaluation or depreciation.

Market Share Range

40%

30%

8%

7%15% Delux

National

Champion

SIPES

Others



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The loss of Jordan’s export competitiveness has been especially severe in Western Europe and Asia, since the Euro and most of the currencies in Asia have depreciated relative to the US dollar. In addition to the loss of export competitiveness, the appreciation of the JD has stimulated imports, and undermined a recovery in domestic production, employment and fiscal revenue because of the loss of domestic profitability of production. By the year 2006 Jordan has concluded several International and bilateral trade agreements, these agreements assess the paint industry to export its products to different countries around the world. These agreements are as following1:

1. The U.S.–Jordan Free Trade Agreement The U.S.-Jordan Free Trade Agreement (FTA), signed on October 24, 2000, will eliminate duties and commercial barriers to bilateral trade in goods and services between Jordan and the United States. The FTA also includes separate sets of substantive provisions addressing trade and the environment, trade and labor, and electronic commerce. Other provisions address intellectual property rights protection, balance of payments, rules of origin, safeguards and procedural matters such as consultations and dispute settlement. Under the FTA, tariffs will be eliminated on virtually all trade between the two countries within 10 years. Tariff reductions will occur in four stages: (i) current tariffs of less than 5 percent will be phased out in two years, (ii) those that are now between and 5 and 10 percent will be eliminated in four years, (iii) those between 10 and 20 percent will be gone in five years, and (iv) those that are now more than 20 percent will be eliminated in 10 years. Although there is no negative list, special arrangements exist for tariff reductions on sensitive products such as apples, poultry, tobacco and some tobacco categories, cars and alcohol.2

2. WTO Accession and Commitments Jordan became a member of the WTO in April 2000. In addition to liberalizing trade in goods and services, Jordan committed itself to comply with the WTO Multilateral

1 Economic Impact and Implications for Jordan of the Jordan-U.S. FTA, 2001, p.3 2 From the U.S.-Jordan FTA Fact Sheet at http://www.usembassy-amman.org



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Agreements on Trade Related Aspects of Intellectual Property Rights (TRIPS), Customs Valuation, Import Licensing Procedures, Technical Barriers to Trade, and Sanitary and Phytosanitary Measures.1 Tariffs are to be bound at a 20 percent ceiling by the year 2010, with the exception of certain items that are to be bound at 35 percent. Jordan’s tariff schedule has six advalorem rates: 0 percent, 5 percent, 10 percent, 20 percent, 30 percent and 35 percent. Tariff reductions will be implemented in March of every year. In services, Jordan’s commitments covered the majority of services sectors. From a total of 155 sub sectors, classified within 12 sectors, Jordan made commitments in 128 sub-sectors.

3. The Euro-Mediterranean Association Agreement

The Euro-Mediterranean Association Agreement aims to create a new climate for economic and cultural relations, in particular for the development of trade, investment and economic and technological cooperation. Under this agreement, free trade will be achieved in 12 years. The Agreement also covers services, social and cultural affairs, and financial co-operation. All industrial products and natural resources originating in Jordan would enter duty free in the European Union (EU) immediately, while EU industrial products benefit from annual duty reductions over the 12-year implementation period. Under this Association Agreement with the European Union (AAEU), products originating in the EU are excluded from preferential treatment, and specific import procedures and safeguards are made for trade in agricultural products. About 65 percent of the goods imported from the EU will receive preferential treatment, excluding those products in the negative list: cigarettes, used cars, tomato paste, used clothes, clothes and shoes, furniture and carpets. In services there is no schedule of specific commitments beyond those made under the WTO commitments.

4. Other Regional and Bilateral Agreements

Jordan has concluded bilateral trade agreements with many countries. These agreements are generally based on the MFN principle, although some agreements with Arab countries included trade preferences. Preferential treatment was accorded to specific goods included in protocols annexed to these agreements. However, Jordan has terminated all trade protocols, except that with Lebanon. Jordan had concluded bilateral investment promotion and protection agreements with Germany, France, Turkey, Switzerland, Malaysia, Romania, United Kingdom, Tunisia, Yemen, Egypt, Italy, Algeria,

1 Jordan is currently negotiating commitments in the Government Procurement Agreement.



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Indonesia, the United States, the Czech Republic, Poland, the Netherlands and Morocco. Jordan is a member of the Arab Common Market Agreement (ACM) together with Egypt, Iraq, Mauritania, Libya, Syria and Yemen. Jordan also signed the Arab Free Trade Area Agreement (AFTA) in January 1998. Tariffs between member countries are to be eliminated over a ten-year period. Under this agreement, Jordan will eliminate import duties on approximately 94 per cent of its tariff lines. The AFTA does not include provisions on the application of non-tariff measures, but the implementation program prohibits the use of non-tariff measures such as quantitative restrictions and import licensing for non-exempt and non-prohibited products. The analysis of trade compatibility and export performance of the paint sector will concentrates on the following types of products: (1) domestic exports of Jordan (excludes re-exports); (2) product aggregation at the 4-digit HS level including

I Paints & Varnishes (including enamels & lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in non-aqueous medium.

II Paints & Varnishes (including enamels & lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.

III Other paints & varnishes (including enamels, lacquers & distempers); prepared water pigments of a kind used for finishing leather.; and (3) data analysis based on the period 2002-2006.

3-1 EXPORTS

3-1-1 Exports classified by commodity The exports of the sector has increased from JD(7.3) million in 2001 to JD (8.5) million in 2006 amounting to an increase of around 16.4%.

Table (3-1) Exports classified by commodity

V= Value: Million JD Q= Quantity: KG

2006 2005 2004 2003 2002 2001

Q V Q V Q V Q V Q V Q V

Sub- sector

ISIC

Cod

e



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4.8 3.4 6.2 4.4 3.6 2.6 4.7 2.6 6 4 7.6 5

Paints & Varnishes (including enamels & lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in non-aqueous medium.

3208

1.8 2 1.6 1.5 3.5 2.8 2.5 2 3 2.1 2.4 1.7

Paints & Varnishes (including enamels & lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.

3209

3 3.1 3 2.7 1.9 1.7 2.1 1.9 1 0.8 0.7 0.6

Other paints & varnishes (including enamels, lacquers & distempers); prepared water pigments of a kind used for finishing leather.

3210

9.6 8.5 10.8 8.6 9 7.1 9.3 6.5 10 6.9 9.8 7.3

Total

Source: Department of Statistics and researchers calculation

Table (3-2) Exports classified by commodity (Growth)

Value: Million JD, Quantity: KG

Code Activity Year

Value of

Exports F.O.B

Growth %

Sub-sector

average growth

Overall sector

average growth

2001 5 2002 4 -25

3208 Paints & Varnishes (including enamels & lacquers) based on 2003 2.6 -53

-13%

7.1%



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2004 2.6 0 2005 4.4 41

synthetic polymers or chemically modified natural polymers, dispersed or dissolved in non-aqueous medium.

2006 3.4 -29

2001 1.7 2002 2.1 23 2003 2.0 -5 2004 2.8 40 2005 1.5 -86 3209


2006 2.0 33

1.0%

2000 0.6 2001 0.8 -33 2002 1.9 137 2003 1.7 -11 2004 2.7 59

3210

Other paints & varnishes (including enamels, lacquers & distempers); prepared water pigments of a kind used for finishing leather. 2005 3.1 15

33.4%

Source: Department of Statistics and researchers calculation Table (3-2) clearly shows that the most growth sub- sector of paints industry in terms of exports was in paints & varnishes prepared water pigments of a kind used for finishing leather, accounting for around (33%) for the period (2000-2005). This sub- sector shows a different trends of growth, were the year 2002 was the best year of exporting for this sector when the total export of this sub-sector reached JD (2) million.

Diagram (3-1) Total Value of Exports



24

Diagram (3-2) Share of Total Exports (2006)

3-1-2 Exports classified by region

Table (3-3) Total exports classified by region Region Year Total Export value

2002 2003 2004 20052006

0

5

10

Years

MillionJD

2002 2003 2004 2005 2006

8.5; 0%

3037.5; 100%

Paints &Varnishes (millionJD)

Total countryImports (millionJD)



25

F.O.B in million JD 2001 5.4

2002 5.3 2003 5.5 2004 5.9 2005 7.3

Asian Arab countries

2006 7.5 2001 0.4 2002 0.03 2003 0.21 2004 0.05

2005 0.02

Asian non-Arab countries

2006 0 2001 0.7 2002 0.6 2003 1.06 2004 1.03

2005 1.004

African Arab countries

2006 0.61 2003 0 2004 0

African Arab non- countries

2005 0.1 2001 0 2002 0 2003 0 2004 0

2005 0

Western Europe countries

2006 0 2002 0 Eastern Europe countries 2005 0 2001 0 2002 0 2003 0 2004 0

Scandinavian countries

2005 0 2001 0 2002 0 2003 0 2004 0

North American countries

2005 0



26

2006 0 South American countries 2001 0 Oceania countries 2002 0 Other countries 2000 0.8 Source: Department of Statistics and researchers authors calculation

Diagram (3-3) Exports classified by region (2006)

Exports value to Asian Arab countries

2000 2001 2002 20032004 2005

02

4

6

8

years

valu

e (m

illio

n J

D)

2000 2001 2002 2003 2004 2005

Exports value to Asian non-Arab contries

00.10.20.30.40.5

years

Val

ue

(mil

lio

n J

D)

2000 2001 2002 2003 2004 2005

Exports value to African Arab countries

00.20.40.60.8

11.2

years

Val

ue

(mil

lio

n JD

)

2000 2001 2002 2003 2004 2005

Exports value to African non-Arab countries

2000 2001 2002 2003 2004

2005

0

0.05

0.1

0.15

yearsvalu

e (m

illi

on

JD)

2000 2001 2002 2003 2004 2005

Exports value to Western Europe countries

2000 2001 2002 2003 2004 20050

0.5

1

yearsvalu

e (m

illio

n J

D)

2000 2001 2002 2003 2004 2005

Exports value to Estern Europe countries

2000 2001 2002 2003 2004 20050

0.5

1

yearsvalu

e (m

illio

n J

D)

2000 2001 2002 2003 2004 2005

Exports value to North American countries

2000 2001 2002 2003 2004

2005

0

0.02

0.04

0.06

yearsvalu

e (m

illio

n J

D)

Exports value to Scandinaivian countries

2000 2001 2002 2003 2004 20050

0.5

1

yearsvalu

e (m

illio

n J

D)



27

According to the department of Statistics data, Arab countries is the main importers of Jordanian pains industry. It is worth mentioning that Iraqi market was the major importer for the Jordanian industrial production especially during the year (2000-2005). Many of paints establishments take place during this period to serve Iraqi market, but the picture has been changed after 2005, when Iraqi government start looking for other markets. In addition some Arab African countries like Egypt, Lebia, Morocco and Sudan are importing paints from Jordan. The following diagram shows that during 2006 the sector exports to Palestine National Authority account for (36%), followed by Saudi Arabia.

Diagram (3-4) Market Share of Exports (2006)

Exports value to Oceanian countries

2000 2001 2002 2003 2004 20050

0.5

1

yearsvalu

e (m

illio

n J

D)

2000 2001 2002 2003 2004 2005

Exports value to South American countries

2000 2001 2002 2003 2004 20050

0.5

1

yearsvalu

e (m

illio

n J

D)

2000 2001 2002 2003 2004 2005



28

Diagram (3-5) Market Size and Trends (2000 & 2006) As far as market size and trends of the sector is concerned, diagram (3-5) shows that the local market is still consuming most of the sector production, only 8% of the production has been exported in the year 2000, increased to 10% in the year 2006. 3-1-3 Exports classified by country (2006)

Table (3-4) Total exports classified by country

Country Exports Market share %

Palestine N.A 3.1 36.5 Saudi Arabia 1.6 18.8

Iraq 1.4 16.5 Sudan 0.6 7

36%

19%17%

7%

6%

15%

Palestine N.A Saudi Arabia Iraq

Sudan Syria Other

Market Size & Trend (2000)Export

sales; 7.3; 8%

local sales; 86.5; 92%

Export sales local sales

Market Size & Trend (2005)Export

sales; 8.5; 10%


Export sales local sales



29

Syria 0.5 5.9 Other 1.3 15.3 Total 8.5 100

Source: Department of Statistics and researchers authors calculation

3-2 IMPORTS 3-2-1 Imports classified by commodity

Table (3-5) Total imports classified by commodity

Value: Million JD , Quantity: KG

2006 2005 2004 2003 2002 2001

Q V Q V Q V Q V Q V Q V Sub- sector Code

1.8 3.7 1.8 3.1 1.2 2.1 1.0 2.2 1.0 1.7 1.0 1.4


3208

0.7 1.0 0.6 1.0 0.8 1.1 0.5 0.7 0.7 0.8 0.5 0.5 Paints & Varnishes

3209



30

(including enamels & lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.

1.3 1.5 0.6 0.7 0.7 0.5 0.5 0.3 0.4 0.5 0.3 0.3


3210

3.8 6.2 3.0 4.8 2.7 3.7 2.0 3.2 2.1 3.0 1.8 2.2 Total


Table (3-6) Total imports classified by commodity (Growth)

Code Activity Year Value of

Growth %

Sub-sector

Overall sector



31

Imports C.I.F

average growth

average growth

2001 1.4 - 2002 1.7 21.4 2003 2.2 29.4 2004 2.1 -5 2005 3.1 47.5 3208


2006

3.7 19.5

22.5%

2001 0.5 - 2002 0.8 60 2003 0.7 14- 2004 1.1 57 2005 1.0 10

3209


2006 1.0 0

22.6%

2001 2.2 - 2002 3.0 36 2003 3.2 6.6 2004 3.7 15.6 2005 4.8 30

3210


2006 6.2 29

23.4%

22.8%


Table (3-6) clearly shows that the over all sub- sector import average growth during the study period was (22.8%). This means that we have a deficit trade balance in this sector equal to (15.7%) during the study period.

Diagram (3-6) Imports classified by commodity



32

Diagram (3-7) Share of Total Imports (2006)

Diagram (3-7) clearly indicates that (6.2%) of imports are paints and varnishes.

6.2; 0%

7412.3 ; 100%

Paints &Varnishes (millionJD)

Total countryImports (million

JD)

0

2

4

6

8

years

(million)

JD

2001 2002 2003 2004 2005 2006



33

3-2-2 Imports classified by region

Table (3-7) Imports classified by region

Region Year Total Imports value C.IF in

million JD 2001 0.37 2002 0.27 2003 0.17 2004 0.77 2005 0.77

Asian Arab countries

2006 1.32 2001 0.17 2002 0.25 2003 0.17 2004 0.27 2005 0.14

Asian non-Arab countries

2006 0.16 2001 0.02 2002 0.08 2003 0.07 2004 0.12 2005 0.25

African Arab countries

2006 0.22 2003 0 2004 0

African Arab non- countries

2005 0

Western Europe 2001 1.5

2002 2.1 2003 2.98 2004 2.4



34

Source: Department of Statistics and researchers calculation Diagram (3-8) Imports classified by region

2005 3.3 2006 3.2 2002 0 Eastern Europe

countries 2005 0 2001 0.2 2002 0.1 2003 0.05 2004 0.03

Scandinavian countries

2005 0.01 2001 0.2 2002 0.092 2003 0.061 2004 0.1 2005 0.121

North American countries

2006 0.3 South American

countries 2001 0

Oceania countries 2002 0 Other countries 2000 0

Imports value from Asian non-Arab

countries

0

0.1

0.2

0.3

years

Value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from Asian Arab

countries

0

0.5

1

1.5

years

value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from African Arab countries

00.05

0.10.15

0.20.25

0.3

years

Value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from African non-Arab countries

2000 2001 2002 2003 2004 20050

0.5

1

Years

value(million JD)

2000 2001 2002 2003 2004 2005



35

According to the department of Statistics data, the imports of paints and varnishes was verifying from year to year, but is clearly that Jordan imports from deferent regions, specially from Western Countries and Asian non Arab. The following diagram shows that during 2006 the sector imports (32%) of paints from Germany, followed by UK. It is interested that the

Imports value from North American

countries

00.1

0.20.3

0.4

years

value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from Easter Europe

countries

2000 2001 2002 2003 2004 20050

0.5

1

years

value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from Western Europe

countries

01

23

4

years

value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from Scandinavian

countries

0

0.1

0.2

0.3

years

value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from Oceanian

countries

2000 2001 2002 2003 2004 20050

0.5

1

years

value (million JD)

2000 2001 2002 2003 2004 2005

Imports value from South American

countries

2000 2001 2002 2003 2004 20050

0.5

1

years

value (million JD)

2000 2001 2002 2003 2004 2005



36

volume of imports of paints from china is not very high, this is due to the famous trademark of the European pains.

Diagram (3-9) Market Share of Imports (2006)

Diagram (3-10) Market Size and Trend (2000 & 2006)

32%

24%16%

13%

7%

8%

Germany U.K Italy U.A.E Egypt Other

Market Size & Trend (2000)Imports

sales; 2.2; 6%


Imports sales local sales

Market Size & Trend

Imports sales; 6.2;

6%


Imports saleslocal sales

2006



37

As far as market size and trends of the sector is concerned, diagram (3-10) shows that (6%) of paints needed has been imported in the year 2000, and this percentage keep the same in the year 2006.

3-2-3 Imports classified by country (2006)

Table (3-8) Imports classified by country (2006)

Country Imports Market share %

Germany 2.0 32.2 U.K 1.5 24.1 Italy 1.0 16.1

U.A.E 0.8 13.0 Egypt 0.4 6.5 Other 0.5 8.0 Total 6.2 100


FINDINGS There are four central findings, which can be classified as A SWOT analysis of the sector:

1. STREGTHS: � local industry provides good quality products. � Sector has created employment opportunities and developed other

related industries. � Aided the transfer of technology and provided the country with

substantial export revenue. � The sector employs high educated engineers. � The large companies in general are equipped with up-to-date

machinery and equipments.

2. WEAKNESSES:



38

� Arab countries is the main importers of Jordanian pains industry. � the local market is still consuming most of the sector production, only

8% of the production has been exported in the year 2000, increased to 10% in the year 2006.

� Production of low- quality products to meet demands of low- income markets.

� "Brain-drain" process, i.e. talents and experts in Jordan migrate to work in gulf and developed countries.

� The sector registered a deficit trade balance in equal to (15.7%) during the study period.

� Relatively low wage which is due to abundant supply of labor, level of labor skills and productivity.

3. OPPORTUNITIES: � Implementation of multinational and bilateral agreements will

encourage new investments and open new markets. � Exemption of all industrial inputs and supplies. � Comparative advantage of labor-intensive industry. � Foreign skilled workers who normally come with FDI and help ease

the shortage of skilled workers in the sector.

4. THREATS: � Lack of R&D and investments in unique technology. � Lack of technological, management and marketing skills. � Loss of sales due to competitiveness. � Regional trade barriers limited intra-regional trade. � High cost of fuel and electricity prices.

RECOMINDATIONS Based on the above findings of the study, the researchers recommended the

following:

1. The paint sector should got the benefits of deferent agreements done

by the government of Jordan. 2. most of the paint industry are a small and medium enterprises, and

there market share is very low. Thus it is highly recommended to attend merge in this sector.



39

3. the Jordanian market is very small, thus concentrating on the quality is very important in order to access to other markets.

4. the sector needs to meet the international standards regarding the paints products.

5. the paint sector should give more attention for R&D. 6. The present study has pointed to a number of areas that should be

examined in greater detail by different associations in order to develop the status frame of the paint sector.

7. Although the industrial inputs are exempted from costumes, this customs are still imposed on the Wholesaler . Thus when the establishment purchase some of these inputs from the wholesaler ( due to inability to import a large quantity) it will burden these costumes. Thus it recommended that the government should study the way to exempt the wholesaler also from these inputs.

8. industry participants should seek to develop new and different applications for various coatings products; provide an increasing range of value added services to customers and improve profitability via product reformulations, effective management of the supply chain and the simplification of the manufacturing process.

REFERENCES - Access to Microfinance and Improvement of Policy Reform ( AMIR Program),

February,2002. - AMA Research company, Paint and Effects Market Study in UK, 2005 - Amman Chamber of Industry, Annual Report, 2006. - Asia Africa Intelligence Wire, "Paints Segment Glows Despite Clouds Over

Economy", 31-AUG-02. - Canadian Paint and Coatings Association, Structure and performance of the

Canadian paints industry, 2006. - Department of Statistics, Industrial Survey, Minig, Quarying,

Manufacturing and Electricity, ( different Issues) - Economic Impact and Implications for Jordan of the Jordan-U.S. FTA Final

Report, February 2001. - Equitymaster's Research Reports, paints in India, 2007 - Faker Alsenaa Newsletter, National Industrial Support Commission, Issue No.

43, p9. - Ghesquiere, H. (1998), “Impact of European Union Association Agreements

on Mediterranean Countries”. Washington, DC. International Monetary Fund. IMF Working Paper WP/98/116.

- IBIS World Industry Report, 2007,p3. - Icon Group International, Inc. "Paints and Varnishes in Poland: A Strategic

Entry Report" 1997 - John R. Holmes, Architectural Coatings and Aerosol Paints: Usage and

Emissions, 2002. - Jordan Chamber of Industry ( www.aci.org.jo), 2007. - Lord, M. (1991), Imperfect Competition and International Commodity Trade:

Theory, Dynamics, and Policy Modelling. Oxford: Clarendon Press.



40

- National Family Opinion Research, Inc. (NFO),. Consumer Architectural Coatings Disposal Study. 1995

- National Paints and Coatings Institute, 2004. 2001 Sales of Architectural Paint. Accessed: http://www.paint.org/ind_info/ffarch.cfm

- National Paint and Coating Association, www.paint.org - Product Stewardship Institute (PPSI), 2004a. Paint Product Stewardship: A

Background Report for the National Dialogue on Paint Product Stewardship.Accessed: http://www.productstewardship.us/supportingdocs/DialoguePaintPS.doc

- REACH Initiative (2000), “Launching Jordan’s Software and IT Industry: A Strategy and Action Plan for H.M. King Abdullah II”. Amman, Jordan.

- UNDP," Manufacture of paints, varnishes and similar coatings, printing ink and mastics", MOROCCO,2002

- United States Census Bureau, Current Industrial Reports, Paint and Allied Products: 2003.. November 2004. Accessed:

http://www.census.gov/industry/1/ma325f03.pdf - Zarqa Chamber Newsletter, Issue No.2, January 2008.

Annex A : list of meetings conducted

Location Name position

Eng. Belal Humod IDD Manager Eng. Abeer Haj Hassan IDD Assistant Manager Dr. Jamal Mahasni Head of Economic

Research Unit Ministry of Industry and Trade

Eng. Mouhammad Nafe Head of SMEs Unit

Amman Chamber of Industry Muhareb Muhareb Head of Economic

Research Unit

Eng. Husain Shafa Amri General Manager Zarqa Chamber of Industry Ghadeer Al- Borini Information Technology

Unit

Rum Paints & Colo Soil Co. Mohammad Karkar General Manager Rum Paints & Colo Soil Co. Mohammad Dagash Sales Manager Kilani Paints Industrial Commercial Est. (Champion)

Bassam Kilani Vice President

Advanced Est. For Paints Technology

Eng. Mohammad Al- Aqtash

General Manager

Jehad Abu Baker Distributor Hassan Al amour Distributor Husam Megdadi Distributor Rami Assad Distributor Farouk Assaf Wholesaler Abdul Kareem Hana Wholesaler

Others

Fadi Alnono Wholesaler



41

Annex B: list of paints Manufacturing Industries in Jordan (2007)

BASE PAINTS & ENHANCEMENT PRODUCTS 1 . GREEN TECH. GROUP OF JORDAN MINING CO. 2 . ALQUDES FOR CHEMICAL IND. EST. 3. MAHER AL NSHASH EST OIL PAINTS 1 . THE INDUSTRIAL COMMERCIAL & AGR. CO. 2 . MODERN PAINTS & CHEMICAL IND. CO. 3 . NATIONAL PAINTS FAC. CO. 4 . JORDAN SIPES PAINTS CO. LTD. 5 . NOVA PAINT IND. CO. 6 . FRIENDLY CHEMICAL IND. & COMMERCIAL CO. 7 . UNITED CHEMICAL CO. LTD. 8 . PHILADELPHIA PAINTS FAC. 9 . JORDAN ENGLISH PAINTS CO. 10 . PAINTS & CHEMICALS CO. 11 . HEIDAN CAOTING TECHNOLOGIES 12 . REMALUX PAINTS FACTORIES CO. 13 . JORDAN PHALISTIN FOR CHIMICALS IND. 14 . AL HALABI PAINTS & CHEMICAL IND. EST. 15 . FATEH ALLH TRASHEH CO. 16 . SPECIALITY CONSTRUCTION CHEMICALS FAC. 17 . WAHI PAINTS IND. 18 . AMERICAN PAINTS IND. 19 . BASEL MORSI PAINTING FAC 20 . EGYPTION FOR MODERN ENGLISH PAINTS IND. 21 . HIGH QUALITY PAINTS IND CO. 22 . ARAB GEMSTONE EST. 23 . MAYS FOR PAINTS IND. 24 . NEW CHEMICALS FOR TRADE&INDUSTRY 25 . OSCAR CO.PAINTS INDUSTRY 26 . TOP PAINTS FAC. 27 . VISION PETROCHEMICAL IND CO 28 . ESAM EHMIDAN IND. EST. 29 . MODERN PAINTS FAC. 30 . AL AHRAM PAINTS FAC.



42

31 . MAGIC ROOM FOR PAINTS 32 . RAYAN & ABUSHAWESH CO. PLASTIC PAINTS 1 . NEAR EAST PETROCHEMICALS CO. 2 . AL HALABI PAINTS & CHEMICAL IND. EST. 3 . TAHER & ABDEEN CO. 4. AL AHRAM PAINTS FAC. INDUSTRIAL PAINTS 1 . THE INDUSTRIAL COMMERCIAL & AGR. CO. 2 . MODERN PAINTS & CHEMICAL IND. CO. 3 . NATIONAL PAINTS FAC. CO. 4 . JORDAN SIPES PAINTS CO. LTD. 5 . NOVA PAINT IND. CO. 6 . FRIENDLY CHEMICAL IND. & COMMERCIAL CO. 7 . FOSROC JORDAN 8 . UNITED CHEMICAL CO. LTD. 9 . PHILADELPHIA PAINTS FAC. 10 . DELTA BUILDING MATERIALS CO. 11 . JORDAN ENGLISH PAINTS CO. 12 . NEAR EAST PETROCHEMICALS CO. 13 . PAINTS & CHEMICALS CO. 14 . GLOBAL POLYMER CO. 15 . HEIDAN CAOTING TECHNOLOGIES 16 . REMALUX PAINTS FACTORIES CO. 17 . JORDAN PHALISTIN FOR CHIMICALS IND. 18 . FIRST ADVANCED CHEMICALS IND. 19 . TECHNICAL IND. PAINTS LTD. CO. 20 . RAJAE' & YUSRI & NASER TAHBOUB CO. 21 . EGYPTION INTERNATIONAL MFG FOR MODERN PAINTS 22 . HIGH QUALITY PAINTS IND CO. 23 . JALAL AHMED PAINTS IND. 24 . AL AMAN MODERN PAINTS IND.CO. 25 . FUTURE PAINTS FACTORIES CO. 26 . INTERNATIONAL COATINGS &SPECIALITIES CO. 27 . NOFAL PLASTIC & RUBBER INDUSTRIES 28 . SHER ALAQSA PAINTS IND. 29 . TAMEER PAINTS INDUSTRIES 30 . TECHNICAL PAINTS&PUTTIES INDUS.CO 31 . TECHNICAL TEAM FOR IND.& TRADING INVSTMENT CO. 32 . VISION PETROCHEMICAL IND CO 33 . MERA FOR PAINTS & PUTTY& MATERIALS FACTORIE EST 34 . MONVMENTS ARCHITECTURAL SYSTEMS 35 . ALSHARWIA FOR PAINTS INDUSTRY 36 . AMMAR ABO HEBEH FOR PAINTS FAC. 37 . MERA CHEMICAL IND. WATER PAINTS 1 . MODERN PAINTS & CHEMICAL IND. CO.



43

2 . NATIONAL PAINTS FAC. CO. 3 . JORDAN SIPES PAINTS CO. LTD. 4 . FOSROC JORDAN 5 . UNITED CHEMICAL CO. LTD. 6 . HEIDAN CAOTING TECHNOLOGIES 7 . FATEH ALLH TRASHEH CO. 8 . FATHI ABU ARJAH & PARTNERS IND. CO. 9 . HIGH QUALITY PAINTS IND CO. 10 . ACCOMPLISHMENTS CO.CONSTRUCTION CHEMICAL PRODUCTS 11 . SHER ALAQSA PAINTS IND. 12 . VISION PETROCHEMICAL IND CO 13 . MONVMENTS ARCHITECTURAL SYSTEMS GYMSTON PAINTS 1 . MODERN PAINTS & CHEMICAL IND. CO. 2 . JORDAN,SWEDISH POLYMERS IND. CO. 3 . JORDAN ENGLISH PAINTS CO. 4 . HEIDAN CAOTING TECHNOLOGIES 5 . JERUSALEM PAINTS IND. CO. 6 . SPECIALITY CONSTRUCTION CHEMICALS FAC. 7 . ARAB GEMSTONE EST. NITRO CELLULOSE PAINTS 1 . MODERN PAINTS & CHEMICAL IND. CO. 2 . NATIONAL PAINTS FAC. CO. 3. JORDAN SIPES PAINTS CO. LTD. WALL & CONSTRUCTION PAINTS 1 . AL-QARIA FOOD&VEGETABLE OIL IND.CO 2 . MODERN PAINTS & CHEMICAL IND. CO. 3 . NATIONAL PAINTS FAC. CO. 4 . NOVA PAINT IND. CO. 5 . FOSROC JORDAN 6 . JORDANIAN SWISS CO. FOR MFG. & MARKETING CONSTRUCT 7 . JORDAN,SWEDISH POLYMERS IND. CO. 8 . PHILADELPHIA PAINTS FAC. 9 . ARAB GROUP FOR CHEMICAL PRODUCTS 10 . UNIVERSAL PAINTING CO 11 . DELTA BUILDING MATERIALS CO. 12 . JORDAN ENGLISH PAINTS CO. 13 . NEAR EAST PETROCHEMICALS CO. 14 . PAINTS & CHEMICALS CO. 15 . JORDAN PHALISTIN FOR CHIMICALS IND. 16 . FIRST ADVANCED CHEMICALS IND. 17 . AL HALABI PAINTS & CHEMICAL IND. EST. 18 . JERUSALEM PAINTS IND. CO. 19 . TECHNICAL IND. PAINTS LTD. CO. 20 . WAHI PAINTS IND. 21 . EGYPTION FOR MODERN ENGLISH PAINTS IND. 22 . AL AMAN MODERN PAINTS IND.CO.



44

23 . ARAB GEMSTONE EST. 24 . AYLA CONSTRUCTION CHEMICAL CO. 25 . CENTRALIZATION FOR CONSTRUCTION MATERIALS IND. 26 . FUTURE PAINTS FACTORIES CO. 27 . TECHNICAL PAINTS&PUTTIES INDUS.CO 28 . TOP PAINTS FAC. 29 . VISION PETROCHEMICAL IND CO 30 . ESAM EHMIDAN IND. EST. 31 . GULF DYESTUFFES 32 . MERA FOR PAINTS & PUTTY& MATERIALS FACTORIE EST 33 . MODERN PAINTS FAC. 34 . MONVMENTS ARCHITECTURAL SYSTEMS 35 . AL AHRAM PAINTS FAC. 36 . ALANAS EST.FOR SHARPENING STONES & MARBLE STICKING 37 . BACO IND. PAINT / VARNISH REMOVERS 1 . DAWOOD IND. CO. 2.HABBOUB CHEMICAL IND. EST. METALLIC PAINTS 1 . KHLOUSI GALVANIED AND METAL PLATING 2 . DISTINCTIVE INDUSTRIAL AND TRADING CO. 3 . NATIONAL ALUMINIUM DECORATING AND COATING CO.LTD 4 . ARABIAN METAL COATING CO. 5 . MIX TECHNICAL COATING CO. 6 . RED SEA METAL INDUSTRIES CO. 7 . ZEAD ALBUN&AZUZE MOH,D 8 . FANOOS ELEC.FAC. 9 . JERASH ELECTROCHEMICAL IND. EST. 10 . ABU TARBOUSH IND. EST. 11 . AL-MADARIYYON FOR DIVERSITY INDUSTRAL CO. 12 . ALASTAL METAL PAINTING 13 . ABU AL HUSNA METAL&PLASTIC COATING EST. 14 . BABEL PLATING & METAL SHOPING EST. 15 . AL-SHAREF FOR METAL PLATING 16 . AYMAN DOHAL EST. 17 . MOH'D ABUTARBOSH OVEN 18 . NEW VISIONS BLACKSMITH&DYEING METALS 19 . MAJDI AYOB AND PARTNER CO 20 . MAGIC HANDS METAL PLATING


ebrahim assaf

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