Jotun Protective Coatings sells products to companies active in industries related to offshore, energy, infrastructure, hydrocarbon processing and storage tanks.
Jotun supplies protective coatings to companies active in a broad range of industries, from offshore to infrastructure, hydrocarbon processing to energy. These industries are subject to different global and local economic forces and like all segments, profits were impacted by rising costs of raw materials. In 2017, Jotun’s protective coatings business recorded growth in sales volume, but challenging conditions in some industries and markets in combination with increased costs of raw material impacted results.
Jotun’s activities in the Offshore concept were slowed in 2017 by continued weak demand for the construction of new offshore units. To offset this expected market development, Jotun has invested in new products and solutions to capture more of the maintenance market. In 2017, Jotun launched a new range of high-performance maintenance products and solutions. In the Hydrocarbon Processing Industry concept, Jotun has launched a series of products that enable customers to operate at higher temperatures. In the Infrastructure concept, Jotun has found success with its range of thin film passive fire protection products (the Steelmaster range) and Green Building Solutions, a concept developed to support project owners seeking environmental certification (LEED, BREEAM, etc.). Jotun’s performance in the Energy concept, which includes wind farms and thermal and hydroelectric power, also experienced satisfactory growth in 2017.
The Board does not anticipate a full recovery in the offshore industry for still some time. However, through growth in other concepts (Infrastructure and HPI), the company will be in a stronger position to build both sales volume and profitability in the years ahead. Keys to improving profitability will be new innovations and managing the rising cost of raw materials.