16 OUR BUSINESS POWDER COATINGS SUCCESS THROUGH TEAMWORK Jotun recorded strong growth in the Powder Coatings segment by increased focus on achieving a competitive edge in different market segments, better use of regional resources and improved coordination between local sales and technical personnel. JOTUN POWDER COATINGS 5+5% 23+42+4+M 10+16+SALES IN BILLION NOK 0 1 2 3 In 2016, Jotun achieved sales growth in all regions except for the Middle East, where the business was impacted by an economic slowdown in Saudi Arabia. Volumes were particularly strong in the Czech Republic, UAE, India, Pakistan, Vietnam, Indonesia and China. Excellent growth was also recorded in Turkey, despite uncertain political and economic conditions. SOLID PERFORMANCE In 2016, Jotun performed exceptionally well in the General Industries concept, supplying light industrial manufacturers of products such as electrical switchgear, shelving, interior lighting and automotive components like alloy wheels and coil springs. Jotun also had success in the Building Components concept, especially in the UAE, where the company is a recognised leader in premium powder coatings for architectural elements (e.g. aluminium curtain walling, louvres, window and door frames and steel rebar used to extend the life of concrete structures). Sales in the Pipeline concept were down, mostly due to the slowdown in the oil and gas industry. In the Appliances & Furniture concepts, Jotun saw modest growth, supported in part by partnering with multinational appliance manufacturers such as Electrolux and Panasonic and furniture manufacturers, such as IKEA. To serve customers in all concepts more effectively, Jotun has invested in concept-specific training and built client teams that include sales, technical service and laboratory personnel (the ‘TROIKA’ approach) who work with industrial manufacturers and applicators to help them achieve optimal results. GO FOR GROWTH Jotun’s differentiation strategy is built on a concept with clearly branded products to challenge the ‘commodity’ culture. To increase sales penetration in geographically larger countries (e.g. China, Russia, India, Turkey), Jotun launched an initiative in 2015 to expand its dealer and distributor network, which makes up 12 per cent of total sales. Jotun’s target is to increase its network from 75 to 102 dealers and distributors by 2018 and to increase their share to 15 per cent of total sales. While R&D in Jotun has high focus on core technologies, the company has taken steps to empower regional laboratories to customise and adapt products to meet local needs better and faster, helping to support the segment´s growth ambition. 2016 2015 2014 2013 2012 SCA 10% WE 16% EECA 42% MEIA 23% SEAP 4% NEA SALES PER REGION
Jotun Group Report 2016
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