Jotun Marine Coatings is the world's leading provider of marine coatings to shipowners and managers active in the newbuilding and dry-dock / maintenance markets.
Weak demand for ocean transportation, tonnage overcapacity and low freight rates continued to act as a drag on the shipbuilding industry in 2017, impacting Jotun’s marine coatings business. While a rise in newbuilding orders in China and South Korea in the second half of the year suggests a modest recovery, it will take some time for these vessels to be built. By contrast, yard activity in West Europe has picked up, thanks to growing demand for cruise vessels.
Jotun has moved quickly to adjust to the new market reality by focusing on the DryDock and SeaStock concepts. In 2017, the company recorded double-digit growth in the DryDock concept, driven in part by increased demand for Jotun Hull Performance Solutions. Jotun has also gained ground in the Tank Coating concept and is preparing to launch some specialised products in 2018.
Product quality remains vital to Jotun’s offering, but the company recognises that owners are increasingly looking to suppliers for solutions to improve their business. For example, some customers prefer to outsource the management of SeaStock to Jotun, for a fixed cost. By leveraging digital tools, sensor technologies and data analytics, Jotun can quantify results, customise services and provide better decision support. While uncertainty in the newbuilding market is likely to continue to impact sales short term, the company has retained its leading market share by responding to the evolving needs of shipowners.