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Jotun Group Report 2014

12 OUR BUSINESS A market leader in a troubled industry A weak newbuilding market had impact on Jotun’s Marine Coatings business in 2014. Signs of improvement suggest a modest recovery in 2015. 2014 was a mixed year for the shipping industry. Owners continued to adjust to weak growth in world trade, the implementation of new environmental regulations and persistent tonnage overcapacity issues contributing to low freight rates in most segments. These difficult conditions have resulted in a decline in newbuilding orders and forced the closure of many shipyards. Yet with a slight improvement in world trade recorded in the second half the year and incremental growth projected in 2015, the industry may experience a modest recovery. Focus on the maintenance market Jotun has adapted quickly to the new market reality. While the company has retained its leading market share by successfully competing for scarce newbuilding contracts Jotun has also focused more resources on the maintenance market. Jotun has launched Jotamastic Smart Pack and Hardtop Smart Pack, both coating systems that are specially designed for brush and roller application and can reduce paint consumption up to 50 per cent. And in response to growing demands for more environmentally friendly products, Jotun has developed a range of more sustainable topcoats, antifoulings and anticorrosives. 2104 was a break-out year for Jotun’s Hull Performance Solutions (HPS), an innovative concept that includes next-generation silyl methacrelate antifoulings, superior service and the tools to monitor hull performance over time. HPS has been embraced by dozens of owners and has been applied to more than 150 vessels since its launch in 2011. HPS has not only helped position Jotun in the industry as a pioneer in hull performance but has also helped lift sales of other Jotun antifouling products such as the SeaQuantum range and SeaMate – a highly effective affordable system re-launched this year. Strengthening offering in niche markets Jotun has also focused on other specialised marine coatings. After years of intensive product development and patient sales and marketing efforts, Jotun is now a recognised player in the tankcoatings market. Jotun continues to find success in the yachting market, developing long-term relationships with specialist yards producing both leisure boats and megayachts. While 2014 was a challenging year for the organisation, Jotun continues to invest in new segments, products and concepts, confident that the action taken now will place the company in a stronger position when the newbuilding market improves. MARINE COATINGS JOTUN MARINE COATINGS Sales per region Sales in billion NOK 7% SCA 20% WE 5% EECA 6% MEIA 13% SEAP 46% NEA 3% AM 7% SCA 20% WE 5% EECA 6% MEIA 13% SEAP 46% NEA 3% AM 2014 2013 2012 2011 2010 0 1 2 3 4 5 6


Jotun Group Report 2014
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