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
Our business / Jotun Protective Coatings
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.
Improved profitability
While challenging, 2020 has helped make Jotun a
more professional and responsive company. Jotun
is confident that demand for protective coatings
will continue to accelerate as conditions in more
countries improve.
Jotun’s differentiated approach helped the company achieve improved results in 2020.
Jotun Group Report 2020 I 17