Jotun Protective Coatings are sold to companies active in industries related to offshore, energy, infrastructure and hydrocarbon processing.
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.
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.