OUR BUSINESS
16
JOTUN PROTECTIVE COATINGS
Accelerating momentum
Jotun’s good performance in the Protective Coatings segment in 2019 has helped position the company
to fast-track future growth.
In 2019, Jotun achieved good results in the Protective Coatings
segment with solid growth in every region. Jotun benefitted
from increased activity in the oil and gas industry, which
created demand for Jotun products in both the Offshore and
Hydrocarbon Processing Industry (HPI) concepts. Rising demand
for renewable energy helped Jotun support growth in the
Energy concept and Jotun’s increased focus on intumescent and
high-performance steel protection products led to growth in the
Infrastructure concept.
Predictable growth
Jotun is confident that it will continue to retain a leading market
position supplying coatings to new construction projects in the
offshore industry. However, to achieve more predictable growth,
Jotun has invested resources to develop products targeting the
maintenance market for existing facilities. For example, over the
last five years, Jotun has introduced Smartpack Systems, which
include the industry’s only NORSOK compliant coating systems
that can extend maintenance intervals by 50 per cent.
In the HPI concept, where Jotun has recorded solid growth in
operating revenue and profitability over the past few years,
the company has launched a number of customer-focused
marketing concepts engineered to meet the critical business
needs of end users. For example, Jotun offers specialised
coatings for tank linings and a range of products engineered
for extreme environments. In the Infrastructure concept,
Jotun is a recognised leader in intumescent steel protection
coatings, which have been applied to some of the world’s most
iconic buildings. Working in cooperation with the Decorative
Paints and Powder Coatings segments, Jotun’s Green Building
Solutions offers coatings systems with reduced Volatile Organic
Compounds (VOCs) to help owners, architects, and consultants
achieve ‘green building’ certification.
Looking ahead, Jotun will increase focus on bridge and airport
projects, which represent a significant growth opportunity for
the company.
Expanding the distribution network
Today, about 25 per cent of Jotun’s protective coatings volume
goes through the company’s global network of dealers. While
Jotun will continue to pursue direct sales in all concepts, the
company is seeking to expand its dealer network to make
products available closer to where they are needed. Jotun’s
work to expand its distribution network, a more conceptspecific
approach to product innovation, and enchanced
marketing and sales has put the company in a strong position to
achieve higher, more predictable growth in the years ahead.
3+3 %
5+37+K 18+8+6+23+Sales in NOK million
7
6
5
4
3
2
1
0
2019 4 195
2013
4 608
2014
5 507
2015
5 362
2016
5 302
2017
5 932
2018
6 973
5 %
AM SCA
6 %
WE
8 %
EECA
24 %
MEIA
17 %
SEAP
37 %
NEA
Sales
per region