OUR BUSINESS
12
Jotun Marine Coatings
Adapting to a changing market
As the world’s number one provider of advanced marine coatings, Jotun is pioneering the use of digital
tools and solution-based services to meet the demands of an evolving industry.
The newbuilding market improved in 2018, gaining strength in
the second half of the year. While it is premature to assume this
modest recovery signals the beginning of a sustainable, long
term growth trend, Jotun anticipates improved results in the
newbuilding market by the end of 2019. In the drydock market,
activity slowed compared to last year, but Jotun recorded
a modest increase in sales for the SeaStock concept. Jotun
maintained its top market position in marine coatings, although
profits were slowed by high prices for raw materials.
Meeting customer demand
The effects of low freight rates over the past five years have
resulted in consolidation in all shipping segments, creating
fewer, larger owners. At the same time, the introduction of
strict regulations on emissions and ballast water treatment have
put pressure on both yards and owners to stay in compliance. To
help customers achieve their business goals, Jotun has realigned
its business to develop products, solutions and digital tools
to meet their challenges. For example, to help owners in the
chemical tanker segment avoid lengthy cleaning and ventilation
periods between loadings, Jotun launched Tankguard Flexline,
a cargo tank coating that allows owners greater flexibility, longterm
performance and improved vessel utilisation.
6+6 %
S 4+43+7+22+11+Sales in NOK million
7
6
5
4
3
2
1
0
2018 4.291
2013
4.721
2014
6.816
2015
6.097
2016
5.517
2017
5.660
SCA
4 %
AM
22 %
WE
7 %
EECA
7 %
MEIA 11 %
SEAP
43 %
NEA
Sales
per region
In the Drydock concept, Jotun utilises digital tools to collect data
on the specific trade, average speed, cargo and time between
scheduled vessel maintenance to recommend the best coating
solution. In the SeaStock concept, Jotun has launched the
SeaStock Management Solution, a service that includes strategic
planning, product recommendations, improved order processing
and logistics, training, and technical and business reviews.
Investing in data analytics
Looking ahead, Jotun will continue to meet demand for
solutions that help owners to improve operational efficiency
and comply with emerging regulations. While product
development will continue to play an important role in Jotun’s
offering, the company is investing in enhanced data analytics
and decision support tools to help owners reduce costs and
improve efficiency. Internally, Jotun will focus both on selling
valued-added premium products and implementing cost control
measures to improve profitability.