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