Jotun Powder Coatings is a leading supplier to companies active in industries related to appliances, furniture, architecture, pipelines and general industries.
A challenging year
In 2019, Jotun’s performance in the Powder Coatings segment was impacted by adverse market conditions in three of the company’s most important markets: Turkey, the UAE, and Saudi Arabia. At the same time, Jotun experienced declining industrial activity in India, Thailand and some European markets. Jotun maintained its leading market share in the mature Scandinavian markets and recorded good growth in Russia and China. Overall, the company recorded modest sales growth in 2019.
Differentiating from the competition
While the sale of medium range products remains important to support volume, Jotun’s development is more on premium products for the Building Components, Pipeline projects and exterior applications for the General Industries concept. For example, Jotun has launched products to improve anti-corrosion and weathering properties of exterior industrial components (such as Reveal Era and Primax Xtend) that have gained increased acceptance by manufacturers.
Jotun has invested in internal and external systems to leverage Jotun’s expertise in service quality. Jotun created client teams that include sales, technical sales support and laboratory personnel. Known as the “Troika approach”, these teams work with industrial manufacturers and applicators to help them optimise processes. Internally, Jotun has invested in an ambitious competence development programme, supported by seminars, web-based training tools and workshops to enable sales and technical sales service personnel to understand and identify challenges faced by customers. By strengthening competence in all areas, Jotun’s offering extends beyond product quality, placing the company in a better position to develop long-term partnerships with key customers.
Repositioning for the future
Looking ahead, Jotun will focus more resources into specifications management in the Building Components and Pipeline concepts and continue the development of higher durability solutions for exterior industrial applications. Two key technologies will be development of metallics and low cure coatings designed to coat non-metal substrates. The Powder Coatings segment will also use Jotun’s regional management structure more effectively to get closer to customers. While the company’s results in Powder Coatings in 2019 fell short of expectations, Jotun is confident that by taking steps to differentiate from competitors and sharpening focus on key sub-segments and the application of new technologies will result in stronger growth and profitability in the coming years.