OUR BUSINESS
16
Jotun Protective Coatings
Regaining momentum
Following a period of slow growth, demand for Jotun’s protective coatings accelerated in the second half of
the year, suggesting a stronger performance in 2019.
Weak demand for construction of offshore units in 2017 and
the first quarter of 2018 impacted Jotun’s performance in the
Protective Coatings segment. Profitability was also affected
by high raw material prices and changing market conditions
in some markets, including Turkey (currency depreciation) and
certain countries in the Middle East (political unrest). However,
sales growth improved significantly in the second half of the
year thanks to strong performances in India, Russia, Singapore
and Vietnam.
Strengthening Jotun’s service offerings
Jotun has moved quickly to respond to these changing market
conditions. By combining products and services engineered to
help end users save money or solve critical challenges, Jotun has
developed a number of unique solutions. For example, Jotun
developed maintenance solutions for offshore units, putting
the company in a strong position to compete for newbuilding
contracts as the offshore industry recovery accelerates.
In 2018, Jotun launched a collection of products that provide
protection from fire, cryogenic spills, thermal exposure and
corrosion under insulation for owners, contractors and engineers
in the Hydrocarbon Processing Industry (HPI). In the Energy
concept, Jotun offers a suite of coatings systems for wind
towers, subsea foundations for offshore windfarms and in
China, wind blades. In the Infrastructure concept, Jotun offers
Green Building Solutions, a collection of waterborne products
supported by the necessary documentation to make it easier for
architects and designers to achieve green building certification.
Positive outlook
In preparation for improved market conditions, Jotun will
prioritise more profitable projects and leverage its ability
to deliver value added services combined with premium,
specialised products, especially within the passive fire protection
and intumescent steel protection product ranges. The company
is also working to grow its global network of dealers, which
are responsible for about 25 per cent of existing sales. With the
offshore industry’s recovery expected to gain strength in 2019,
Jotun is in an excellent position to regain momentum in the
Protective Coatings segment.
3+3 %
S 7+4+38+23+17+8+Sales in NOK million
6
5
4
3
2
1
0
2018 4.195
2013
4.608
2014
5.507
2015
5.362
2016
5.302
2017
5.932
4 %
AM SCA
7 %
WE
8 %
EECA
23 %
MEIA
17 %
SEAP
38 %
NEA
Sales
per region