Fadi Medlej, Managing Director of Axalta, MENA region

Fadi Medlej is Managing Director of the Middle East and North Africa region of Axalta Coating Systems based in Dubai. He brings over 15 years of experience in the Industrial area and over 10 years in the automotive industry. Prior to leading Axalta MENA in 2015 and establishing its headquarter for the Middle East and North Africa region in Dubai, he has been with the 3M Company since 1997, and has held a variety of positions in Middle East and Africa. Mr. Medlej is a member of the Lebanese Engineers Syndicate since 1996 and has earned his B.S in Mechanical Engineering from Georgia Institute of Technology, USA, and a Master in Mechanical Engineering from California State University, USA.

1. How important is the Middle East market for Axalta?

Our growing presence in the Middle East has been important. The wider Middle East car sales market is predicted to grow twice as fast as markets in North America and Western Europe between 2012 and 2022 according to Carmudi*, a regional automotive publication.

Elsewhere, forecasts of annual light vehicle sales among the member states of the Gulf Cooperation Council (GCC), the largest economic body in the Middle East, estimate a surge of 25 percent to nearly 1.75 million new car sales.

2. Can you tell us more about Axalta’s product range and individual brands?

Axalta develops, manufactures and sells a wide selection of performance and transportation coatings around the world. Our customers range from among the largest, global automobile manufacturers (OEMs) to small, family-owned automobile repair businesses.

Liquid Coatings

Axalta offers liquid coatings and a wide array of color matching tools to serve customers in all our markets from light vehicle and commercial vehicle manufacturers to body shop operators in the refinish aftermarket as well as many industrial customers.

Our products include the latest waterborne and low-VOC coatings – which meet emerging customer and regulatory requirements around the world – as well as high solids and traditional solventborne coatings. Some products fulfill a variety of customer application needs and can be used on more than one substrate. Our ongoing goal is to consistently develop formulations and application systems that will meet the changing needs of all of our customers.

Products and Technologies

• Harmonized Coating Technologies
• 2-Wet Monocoat
• 3-Wet System
• Eco-Concept
• Energy Solutions

All our key brands – Spies Hecker, Standox, Cromax, Duxon, Challenger and Nason ancillaries have been launched in 18 countries in MENA.

Powder Coatings

Axalta powder coatings offer a superb technology with benefits for many industrial applications. These products have earned a reputation for corrosion resistance and durability due to superior edge coverage, thick film build, and lack of a primer required.

Axalta powder coatings deliver superior coverage and transfer efficiency so more can be accomplished in less time. But higher yields are just the beginning. Available in a variety of technologies for a broad range of applications, Axalta powder coatings are easy to use and backed by the technical support of Axalta specialists.

Some powder Products and Technologies

• Abcite
• Alesta
• Nap-Gard
• ReplaShade

3. What took you so long to set up a regional office here?

In the Refinish market, we have been serving the needs of the Middle East customers through established distribution network, sales & technical teams since 1983. All our key brands – Spies Hecker, Standox, Cromax, Duxon, Challenger and Nason ancillaries have been launched in 18 countries. Axalta is the leading refinish coating supplier in UAE, Bahrain, Qatar, and Algeria. Axalta also present in this market through our powder systems and is also a strong powder coating supplier in Morocco, Tunisia, Lebanon, and Algeria.

Our strategy is to be leading coatings suppliers in the market we operate. Establishing an office and Refinish training center will help us serve regional customers with industry-leading coating solutions and earn the right to be a preferred partner of our customer.

Based on our experience in other markets we have found that we help our customers grow and succeed more effectively by being close to them and providing them the local training needed, which will eventually help us to grow and succeed. Being close to the customer and providing them with support services is a proven growth strategy for Axalta.

4. Why did you choose Dubai to set up your regional headquarters?

Multiple factors came into play when selecting Dubai as the site of our MENA Regional Office. One of the chief factors is that Dubai is the economic heartbeat and commercial capital of the wider region – there is strong economic growth, private sector activity, low interest rates and widespread government spending.

5. What makes this market different from other key markets? Do you feel there are any factors that make it easier or tougher to do business in the Middle East?

Please refer to question 2

6. You already have a significant market share. How do you propose to increase this in the short-term and long-term?

Our global business strategy is to support our customers’ long-term growth in all markets by providing customized, innovative coatings solutions with the best customer experience

We have strong presence in many countries & have leading global positions in end markets like Refinish, Light vehicles, commercial vehicles, and industrial.

7. There are many brands jostling for space in the UAE market. How will Axalta seek to differentiate itself from other brands, especially in a market where there are many branded and even unbranded products and which is so price sensitive?

MENA region is not completely unchartered territory to Axalta. In the Refinish market, we have been serving the needs of our Middle East customers through well-established distribution network, sales and technical teams that date back to 1983.

What differentiates us from other players in the region is a dedicated network of technology centers across the globe. We look for new products and processes to meet evolving customer needs while continually evaluating ways to improve existing products.

Our dynamic team of more than 1,400 research fellows, scientists, engineers and technicians at research centers in the Americas, Europe, and Asia-Pacific tailor research to develop and improve products that will withstand the rigors of regional climates, fulfill customer needs, and comply with local regulations. Our customers reap the benefits of our innovation

8. Will you be focusing mainly on any specific customer segment like the refinish segment?

We focus on the refinish segment and powder business in the region.

9. What kind of distribution strategy will you be having in the region? Will your strategy be different in different markets in the region?

We use an importer model to conduct our refinish business in the region; We also go through importers/agents for Powder in MENA (Morocco, Tunisia and Algeria. We serve all OEM customers in the region, such as Toyota, Nissan, VW, Audi, Honda, GM, Hyundai, Kia, PSA, Ford, etc. We have worked with more than 4000 bodyshops in the region. In powder business, we participate selectively in architectural and functional segments

10. Are there any marketing campaigns that you have developed specifically for this region?

We are in the process of finalizing our marketing strategy for the region.

11. Will you be having any significant marketing partnerships or spokespersons in the near future?

We will be working with some marketing partners which share our vision and values, to promote our corporate and product brand awareness in the region moving forward. Leveraging our partners’ expertise in the marketing arena we will develop and execute a marketing strategy that supports and contributes to our business growth in the region.

12. You have longstanding expertise in the automotive industry. In what ways has it changed over the years? Is technology advancing at a more rapid pace in recent years?

The world is increasingly interested in environmentally responsible coatings. This is in response to local and global demand for a cleaner auto industry. Therefore, we are investing in waterborne coatings and other environmentally responsible coatings such as powder coatings, to meet the future demand for sustainable coating solutions.

Regardless of the formulation of our coatings, we are committed to continue to deliver the colors that our customers – and their consumers – expect from us. Every year, designers from our OEM customers depend on our advanced forecasting to make critical decisions regarding color choices for their vehicle lineup two to four years in advance. Our annual Color Popularity Report, which we have published for more than 60 consecutive years, elicits interest around the world.  The data that go into the Report also provides insights into design preferences and helps us to forecast future trends.

In the coating industry, the pace of innovation is faster than many other industries. For example, in the cell phone industry, Apple releases only one new phone every year. However, in the coating industry, there is a new product every week and every day. For instance, a new color or a new coating thinner, and so on.

13. How important are environmental restrictions in the coatings industry? What kind of impact have they had on the industry?

The world is increasingly interested in environmentally responsible coatings. This is in response to local and global demand for a cleaner auto industry and adapt more environmentally responsible solutions.

Therefore, the coating market is moving towards increasingly sustainable coating products, which will provide significant opportunities for Axalta. Our coatings are and will be designed to meet sustainability goals of our customers, helping their products last longer, enabling their operations to run more efficiently, and providing ways for them to save energy, reduce waste and be more productive. We provide these intrinsic benefits with coatings, such as waterborne coatings and powder coatings,  that preserve and protect. The increasing use of lightweight materials by OEMs demands refinish products that will perform effectively on them.

Our waterborne coatings help customers reduce the environmentally harmful footprint and contribute to a more sustainable environment. Our systems employ fast-drying automotive finish, reducing drying times, applying fewer layers of coating, thus helping customers to be more productive, save money, reduce wastage, while giving customers a wide range of colors and enabling them to be more sustainable in the long term.

14. Do you have any long-term plans to establish a manufacturing presence in the region?

Not at this stage.

15. Can you tell us more about the proposed training center?

Our Dubai training center will be no different from any other Axalta refinish training centers in the world.  Many of our customers are global and they require a standard training program across the region.

All of our refinish training centers deliver a planned curriculum to ensure that our customers have comprehensive understanding of our products, brands, their applications and expected performance. The training is a combination of class room discussions and practical applications. Training encompasses all the steps starting with the surface preparation to the finished panel. In addition, the training center will also support customers in trouble shooting.

16. What would your advice be to young people who are interested in taking up a career in the automotive industry? What is the outlook for the industry in the near future?

The Automotive industry is filled with opportunities especially in this part of the world. The wider Middle East car sales market is predicted to grow twice as fast as markets in North America and Western Europe between 2012 and 2022 according to Carmudi*, a regional automotive publication.

Elsewhere, forecasts of annual light vehicle sales among the member states of the Gulf Cooperation Council (GCC), the largest economic body in the Middle East, estimate a surge of 25 percent to nearly 1.75 million new car sales due to strong economic growth, private sector activity, low interest rates and government spending.

17. What are your expectations for Axalta in the short-term and long-term in the MENA market?

 Our strategy is to be leading coatings suppliers in the market we operate. Establishing an office and Refinish training center will help us serve regional customers with industry-leading coating solutions and earn the right to be a preferred partner of our customer.

Based on our experience in other markets we have found that we help our customers grow and succeed more effectively by being close to them and providing them the local training needed, which will eventually help us to grow and succeed. Being close to the customer and providing them with support services is a proven growth strategy for Axalta.

18. Whom would you consider as your major competitors in the MENA region?

Our key competitors in refinish business include BASF, Akzo, PPG and several local competitors. Our competitors in powder business include Akzo, Jotun, and some local competitors.

19. What are the major challenges you would need to tackle in this region?

The challenge that we, and any thoughtful supplier, should consider is how to make the best choices and work with the customers that provide the most beneficial return for us and for them. The region is large and we will need to look for ways to reach our customers efficiently.

20. How would you sum up Axalta to our readers in just one sentence?

Built for Performance