Jotun Protective Coatings delivers high quality protective coatings for on- and offshore oil and gas, energy and infrastructure projects including passive fire protection, metallic finishes, high temperature coatings and state-of-the-art anticorrosive protection.
In the Protective Coatings segment, Jotun interacts with multiple industries in different regions, allowing the company to offset weak demand in some markets with strong demand in others. This allowed the company to match last year’s top line sales growth and deliver good profitability, even as the coronavirus pandemic impacted different markets at different times. While Jotun’s results were supported by low raw material prices for most of the year, the company’s success was driven by the organisation’s ability to lower manageable costs, improve its product mix optimisation, and the extraordinary efforts of personnel to serve customers under challenging conditions.
Utilising our industrial footprint
Despite construction delays in some countries, Jotun continued to supply to infrastructure projects, especially in China and Turkey, where activity accelerated as markets reopened in the second half of the year. The company also found success serving the energy industry, especially in China, were the government has incentivised investments in renewable energy projects such as offshore and land-based wind farms.
Jotun also regained momentum in many markets supplying the Hydrocarbon Processing Industry (HPI), including securing an important maintenance contract with a leading US-based global energy company. The company’s success serving the infrastructure, energy and HPI industries helped to offset losses in the offshore industry, which was negatively impacted by declining investments in the construction of new units.
Keeping momentum despite COVID-19 restrictions
While challenging, 2020 has helped make Jotun a more professional and responsive company. By utilising digital technologies, the company was able to strengthen relationships with key stakeholders. This was done by organising digital launches of new products such as SteelMaster 1200 HPE, an exterior steel protection solution and Hardtop Design, an exterior coating with a metallic finish, among others. And by ensuring the safe and reliable supply of products to ongoing projects and providing best in class on-site technical support, Jotun helped customers stay on schedule.
Committed to growth
In anticipation of higher costs for raw materials in 2021, Jotun will need to take a more proactive approach to price alignment and continue to focus on efficiency. Internally, Jotun will accelerate investments in competence development and digital tools. While the company acknowledges that the impacts of the coronavirus pandemic may continue to create market uncertainties into the first half of 2021, Jotun is confident that demand for Jotun protective coatings will accelerate as conditions in more countries improve.