14
BOARD OF DIRECTORS
segments when needed, maintain a strong balance sheet and
adjust quickly to market changes in different regions.
Looking ahead, the Board will continue to consider and approve
plans to expand existing factories, build new production
facilities and warehouses, invest in new markets and in tools
and systems to improve efficiency.
To remain competitive, Jotun must continue to develop new
paints and coatings solutions and increase production capacity
in new and existing markets. In 2017, Jotun demonstrated
its ability to innovate through several new product launches.
During the year, new capacity was added in Myanmar, the
Philippines, Russia and Malaysia. Construction of Jotun’s new
headquarters and R&D centre in Sandefjord, the company’s
largest investment to date, is ongoing,
The Board notes that declines in newbuilding orders and
decreased investments in offshore projects installation
development will slow the company’s growth in the short
term. Furthermore, raw material prices, which saw a sharp
increase in 2017, are expected to continue to impact gross
margin short-term, but will be counteracted through increased
product prices. New and unforeseen events could also impact
the business going forward. However, the Board is confident
that Jotun’s strong balance sheet, flexible approach to different
markets and segments, and ability to respond quickly to market
changes will secure the company’s long-term development.
Odd Gleditsch d.y.
Chairman
Richard Arnesen
Einar Abrahamsen
Nicolai A. Eger
Birger Amundsen
Karl Otto Tveter
Terje Andersen
Per Kristian Aagaard Morten Fon
President and CEO
Sandefjord, Norway, 6 February 2018
The Board of Directors
Jotun A/S