OUR BUSINESS
20
A challenging year
Growth in the Powder Coatings segment did not meet expectations in 2019. With a sharper focus on key
sub-segments and technologies, Jotun anticipates improved differentiation and profitability for the segment.
In 2019, Jotun’s performance in the Powder Coatings segment
was impacted by adverse market conditions in three of the
company’s most important markets: Turkey, the UAE, and Saudi
Arabia. At the same time, Jotun experienced declining industrial
activity in India, Thailand and some European markets. Jotun
maintained its leading market share in the mature Scandinavian
markets and recorded good growth in Russia and China.
Overall, the company recorded modest sales growth in 2019.
Differentiating from the competition
While the sale of medium range products remains important
to support volume, Jotun’s development is more on premium
products for the Building Components, Pipeline projects and
exterior applications for the General Industries concept. For
example, Jotun has launched products to improve anti-corrosion
and weathering properties of exterior industrial components
(such as Reveal Era and Primax Xtend) that have gained
increased acceptance by manufacturers.
Jotun has invested in internal and external systems to leverage
Jotun’s expertise in service quality. Jotun created client teams
that include sales, technical sales support and laboratory
personnel. Known as the “Troika approach”, these teams
work with industrial manufacturers and applicators to help
them optimise processes. Internally, Jotun has invested in an
ambitious competence development programme, supported by
seminars, web-based training tools and workshops to enable
sales and technical sales service personnel to understand and
identify challenges faced by customers. By strengthening
competence in all areas, Jotun’s offering extends beyond
product quality, placing the company in a better position to
develop long-term partnerships with key customers.
Repositioning for the future
Looking ahead, Jotun will focus more resources into
specifications management in the Building Components and
Pipeline concepts and continue the development of higher
durability solutions for exterior industrial applications. Two key
technologies will be development of metallics and low cure
coatings designed to coat non-metal substrates. The Powder
Coatings segment will also use Jotun’s regional management
structure more effectively to get closer to customers. While
the company’s results in Powder Coatings in 2019 fell short
of expectations, Jotun is confident that by taking steps to
differentiate from competitors and sharpening focus on key
sub-segments and the application of new technologies will
result in stronger growth and profitability in the coming years.
JOTUN POWDER COATINGS
5+5 %
K 5+21+18+12+39+Sales in NOK million
3
2
1
0
2019 1 682
2013
1 812
2014
2 143
2015
2 251
2016
2 253
2017
2 218
2018
2 313
SCA 12 %
WE
18 %
EECA
21 %
SEAP
39 %
MEIA
5 %
NEA
Sales
per region