TOKYO –
Japan will begin a new system on June 23 to sell paint and thinner directly from manufacturers to construction firms and other businesses, aiming to ease supply bottlenecks and curb price increases as worsening conditions in the Middle East make such materials harder to obtain.
The first batch of 720 cans of paint thinner was delivered to a logistics warehouse in Chiba Prefecture on June 22 for direct sale to businesses without going through wholesalers.
Under the system, only businesses that have consulted a Ministry of Land, Infrastructure, Transport and Tourism contact point in advance and been confirmed as needing supplies will be allowed to make purchases.
Once a shortage is confirmed through consultations submitted by businesses to the government, eligible firms will be able to buy the thinner through an online shopping site linked with manufacturers. Applications are scheduled to open on June 23.
The government hopes the new mechanism will help clear distribution bottlenecks by bypassing wholesalers and also help restrain price increases caused by tightening supply and demand.
The measure is a new response to what has been described as a naphtha shock, as shortages of materials derived from naphtha affect paints, thinners and related products.
According to a survey by Teikoku Databank, the number of bankruptcies among companies involved in painting and waterproofing work could reach a record annual high, underscoring the need for a swift response.
Source: テレ東BIZ
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