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OUR BUSINESS
MANAGING COMPLEXITY
Jotun’s protective coatings business recorded growth in sales volume, but challenging conditions in some
industries and markets, combined with increased raw material costs, impacted profitability.
Jotun supplies protective coatings to companies active in a
broad range of industries, from offshore to infrastructure,
hydrocarbon processing to energy. These industries are subject
to different global and local economic forces and, like all
segments, profits are impacted by rising costs of raw materials.
To manage these variables, Jotun has invested in product
innovations and sales force training to better meet the evolving
needs of different industry stakeholders. The company is also
expanding its dealer network to make products available to
more customers.
FOCUS ON MAINTENANCE
Jotun’s results in the Offshore concept, traditionally an area of
strength for the company, were impacted in 2017 by continued
weak demand for the construction of offshore units. To offset this
expected market development, Jotun has launched new products
and solutions to capture more of the maintenance market. In
2017, Jotun introduced a new range of maintenance products
and solutions, consisting of Barrier Smart Pack, Jotamastic Smart
Pack HB and Hardtop One, which represents the world’s first
NORSOK-approved solution for brush and roller application.
With the current weak demand in offshore new construction,
Jotun has developed the sales focus further in the other
concepts. In the Hydrocarbon Processing Industry concept, Jotun
has launched a series of products in the Thermosafe range,
enabling customers to operate at higher temperatures with
enhanced safety, efficiency and productivity. In the Infrastructure
concept, which includes residential buildings, stadiums and
airports (among other projects) Jotun has found success with
its range of thin film passive fire protection products (the
Steelmaster range) and Green Building Solutions, a concept
developed to support project owners seeking points toward
environmental certification (LEED, BREEAM, etc.). Jotun’s
performance in the Energy concept, which includes wind
farms and thermal and hydroelectric power, also experienced
satisfactory growth in 2017.
THE ROAD TO IMPROVED PROFITABILITY
While Jotun does not anticipate a full recovery in the offshore
industry for some time, the company remains confident that
through growth in other concepts it will be in a stronger
position to build both sales volume and profitability in the years
ahead. Keys to improving profitability will be new innovations
and managing the rising cost of raw materials that has occurred
over the past 18 months.
JOTUN PROTECTIVE COATINGS
PROTECTIVE COATINGS
3+4 %
3 %
AM SCA
7 %
WE
10 EECA
M 7+26+4+10+17+33+SALES IN BILLION NOK
%
2017
2016
2015
26 %
2014
MEIA
2013
0 1 2 3 4 5 6 33 %
NEA SALES
PER REGION
17 %
SEAP