15 OUR BUSINESS Aligning our business with a growing market Jotun posted good results in 2014 in the Powder Coatings segment and took decisive action to position the company to meet rising global demand. Growing consumer spending on appliances, furniture and automobiles, especially in emerging economies, and investments in pipeline, housing and large-scale real estate and infrastructure projects, has created a growing global demand for powder coatings. In addition, powder coatings are increasingly recognised as a more environmentally friendly alternative to industrial liquid paints because they are solvent free and do not contain VOCs. As a result, many coatings analysts expect the growth rate in the Powder segment to exceed other segments in the Paints and Coatings industry. Developing concept-specific products To capitalise on this growth trend, Jotun has organised its business in the Powder Coatings segment into five concepts: Appliances, Furniture, Building Components, Pipelines and General Industries. The concept-specific approach has not only enabled the company to develop more products that are tailor-made for specific industries, but has also improved sales and technical service competence and processes geared for users in different industries. In 2014, Jotun launched a number of new products, specifically engineered for different concepts. For the Furniture concept, Jotun introduced Ultra Shine, a sustainable alternative to the chrome plating process, and has expanded the Guard Endure product line to meet higher, more stringent industry standards for scratch and marring resistance. For the Building Components concept, Jotun has introduced the new Aurora collection, designed as a sustainable alternative for obtaining high-end bright and metallic finishes. At the same time, Jotun has focused on helping customers in the Appliances concept improve efficiency through products such as Guard Miles +, which has been adapted for use for exterior applications to meet the needs of the air conditioning and ventilation industry. Product development is continuing for selected automotive components in the General Industries concept, and the company continues to offer improved, more cost-effective solutions for select user environments and applications. Serving an increasingly global market While a considerable share of powder coatings sales occur locally, an increasingly large portion of Jotun’s business is with global manufacturers of consumer goods, automotive components and internationally-specified real estate construction and pipeline projects. Jotun assigns Key Account Managers to oversee Jotun’s relationships with these global companies and builds strong, long-term relationships with global specifiers, who manage specifications for key customers. By continuing to work across borders and focusing on concept-specific product development, Jotun is in a strong position to capture a greater share of this highly dynamic segment. POWDER COATINGS JOTUN POWDER COATINGS Sales per region Sales in billion NOK 3% SCA 12% WE 17% EECA 41% MEIA 22% SEAP 2% NEA - AM 3% SCA 12% WE 17% EECA 41% MEIA 22% SEAP 2% NEA - AM 2014 2013 2012 2011 2010 0 1 2
Jotun Group Report 2014
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