Jotun Group

Type Private

Industry Chemicals

Founded 1926

Headquarters Sandefjord, Norway

Morten Fon (President and CEO), Odd Gleditsch

Key people
d.y. (Chairman of the board)

Products Paint

Revenue NOK 11,703 million (2008)

Employees 7,200 (2007)

Website www.jotun.com

Jotun AS is one of the world's leading producers of paints, coatings and powder coatings. The
group has 71 companies and 40 production facilities on all continents. In addition, Jotun has
agents, branch offices and distributors in more than 70 countries. The Jotun Group has four
divisions, with its head office in Sandefjord[1], Norway.

Contents
[hide]

 1 Divisions
 2 History
o 2.1 Expansion
o 2.2 Merger
 o 2.3 Alf Bjercke A/S
o 2.4 Fleischers Kjemiske Fabrikker A/S
o 2.5 A/S De-No-Fa Lilleborg Fabrikker
o 2.6 A/S Jotun Odd Gleditsch
 3 Logo history
 4 Family ties
 5 Technology
 6 Overseas Expansion
 7 References

[edit] Divisions

Jotun Dekorativ is responsible for decorative paints, stains and varnish deliveries to the trade
and do it yourself, (DIY) markets in Scandinavia. This division comprises the decorative
operations of Jotun A/S, Jotun Danmark A/S, Jotun Sverige AB and Scanox AS.

Jotun decorative paints

Jotun Paints has responsibility for decorative paints for all markets outside Scandinavia. The
responsibility includes marine and protective coatings for markets in the Middle East and
Southeast Asia.

Jotun Coatings has global responsibility for marine and protective coatings. The responsibility
includes decorative paints in local markets in Europe and selected markets in Asia. Jotun is No. 2
in the world in marine coatings and No. 4 in protective coatings.

Jotun Powder Coatings has global responsibility for powder coatings. The product portfolio
caters to the architectural, functional and industrial market segments to protect metal surfaces
from corrosion and add style to their aesthetic appearance. Jotun is the world's fourth largest
supplier of powder coatings for the industrial surface treatment of metal.

[edit] History
The origins of Jotun can be traced back to a paint distributor's shop, opened by Odd Gleditsch in
1920. It was a good time for the whaling industry, and Gleditsch soon worked his way into the
business of supplier to the whaling fleets in Sandefjord, Tønsberg, and Larvik.

As sales to the whaling fleet increased, Gleditsch saw the potential in manufacturing the paint as
a solo trader. At Gimle, outside Sandefjord, there was an oil mill (Gimle Oljemølle A/S) which
was closed due to bankruptcy – an oil mill which produced antifoulings and marine paints sold
through the Gleditsch paint shop.

On 12 March 1926, Gleditsch invited shareholders to subscribe to the new company. With a
share capital of NOK 60,000, Jotun Kemiske Fabrik A/S was founded, and bought the plant of
Gimle Oljemølle A/S, with Odd Gleditsch as managing director. The production plant was
modernised and product quality improved, all of which lead to increased sales.

[edit] Expansion

In 1962, international activities were introduced with Jotun, as a supplier of marine coatings to
the Norwegian merchant fleet, establishing their first production plant outside Norway, in Libya.
Libya was a kingdom at the time, active in oil exploration, and the indications were that the
economy would develop fast. Odd Gleditsch junior was in the Jotun management, and on his
initiative Libyan Norwegian Industrial Company - Linoco - was established.

Although Jotun's shareholding in Linoco was gradually reduced over time and eventually ceased
in the mid-1980s, Linoco played an important role in the international development of Jotun, and
the experience gained became the platform for Jotun's later development as a major paints
manufacturer in the Middle East and South East Asia.

[edit] Merger

In the late 1960s, times were difficult for Norwegian paint manufacturers. The Norwegian
market was saturated with paint manufacturers, competing for a handful of customers. Paint
dealers and users may have benefited from this, but the manufacturers did not.

Overhead costs were spiraling, in large part due to excessive marketing costs related to trying to
maintain market share. Large sums of money were spent on marketing without any of the largest
manufacturers gaining market share or stabilizing the market, it soon became apparent that
domestic paint manufacturers were in danger of losing out to large foreign paint manufacturers.

Norway had, and still has, one of the highest levels of paint consumption per capita in the world,
and the price and quality level of the products is high. Even as a small market, Norway was
tempting to large international manufacturers. The four largest manufacturers in the Norwegian
market, Alf Bjercke A/S, Fleichers Kjemiske Fabrikker A/S, A/S De-No-Fa Lilleborg Fabrikker,
and A/S Jotun Odd Gleditsch, increasingly aware of the danger of foreign competition, agreed to
merge in August 1971.
Odd Gleditsch junior, then Managing Director of A/S Jotun, masterminded this plan, and the
corporation A/S Jotungruppen was created on 2 January 1972.

[edit] Alf Bjercke A/S

Head office in Oslo, a factory for unsaturated polyester outside Oslo, and factories in Sweden
and Ethiopia. Alf Bjercke A/S was the oldest company participating in the merger. Their
production went back to the 1880s - and the company's main production was paint for domestic
and industrial use as well as unsaturated polyester.

[edit] Fleischers Kjemiske Fabrikker A/S

Located in Bergen, and was established in 1923. In addition to the Bergen factory, Fleischer had
a production plant for alkyds as well as one for clear varnishes at Manger outside Bergen.
Fleischers Kjemiske Fabrikker A/S was particularly known for their paints for exterior timber as
well as paint systems for the fishing fleet.

[edit] A/S De-No-Fa Lilleborg Fabrikker

The activities in the business areas paint, varnish and synthetic resins were separated from their
other business areas and merged with three other companies. De-No-Fa Lilleborg had traditions
in the paint business as far back as 1830, when the company started production of linseed oil.
The company had a production plant for paint and synthetic resins in Fredrikstad, where they
manufactured house paints, marine coatings and synthetic resins as well as a large unit producing
unsaturated polyester.

[edit] A/S Jotun Odd Gleditsch

This was the youngest company of the four - but the largest at the time of the merger. The basis
for Jotun's rapid growth was mainly the sales of marine coatings to the Norwegian merchant
fleet, and at the time of the merge 50% of Jotun's production was marine coatings, which were
sold all over the world. A/S Jotun Odd Gleditsch had their production plant and head office in
Sandefjord, and subsidiaries and associated companies for production in Libya, Spain, Thailand,
Malaysia, and the United Kingdom.

[edit] Logo history

Jotun was named after the Jotuns, a kind of giant featured in Norse mythology, and the
Jotunheimen mountain range. The original logo was a hammer that Jotuns had stolen from Thor,
the god of thunder. During the 1930s, this was replaced by a giant carrying Thor's hammer over
his shoulder, as the hammer was now taken to be a political symbol of communism.

Later, it was decided that the giant looked too much like a troll and was for some time replaced
by a reindeer in flight with the Jotunheimen mountains in the background. This logo was in turn
replaced by a penguin, which suggested Gleditsch's history of whaling in the Antarctic.
The logo was updated in the 1970s to the current version by drawing a globe around the penguin
to emphasize Jotun's global holdings.

[edit] Family ties

The company's history has been shaped largely by the family that sits at Jotun's helm: first came
Odd Gleditsch senior, then Odd Gleditsch junior, and now Jotun is led by the third generation,
Odd Gleditsch the younger.

 1926: Jotun Kemiske Fabriker A/S was founded by Odd Gleditsch sr together with Ole
Aanderud Larsen and Jean B. Linaae. All three sat on the board, with Ole Aanderud
Larsen acting as chairman while Odd Gledisch was the company's first general manager.
 1930: Odd Gleditsch acquired Vera Fedtrafeneri, a vegetable oil refinery that had gone
into liquidation.
 1939: A pension fund was set up for all employees—a highly unusual move at the time.
 1951: A new factory, complete with a large new laboratory, was finished at Gimle
outside Sandefjord. Five engineers were taken on for the laboratory. Competitors thought
this was madness, but Gleditsch justified it as follows: "Our future success depends on an
investment in research and development."
 1968: Vera Fabrikker stopped producing vegetable oils and started manufacturing
pipelines and heating oil tanks from gass fibre-reinforced polyester.
 1968: Corro-Coat was founded in conjunction with Gunnar Myhre, who felt that powder
coatings, a new concept at the time, had real potential.
 1970: Odd Gleditsch jr was appointed chairman of the board in May.
 1972: The Merger of the largest paint manufacturers in Norway: Alf Bjercke, Fleischers
Kjemiske Fabrikker, DeNoFa-Lilleborg's paint and synthetic resin business, and Jotun
Odd Gleditsch. Odd Gleditsch jr played a major diplomatic role in bringing about and
implementing the merger.
 1976: The fire of 15 September] was the most dramatic event in Jotun's 75-year history.
Six people were killed instantly in a massive explosion and 11 were injured - two
seriously. The paint factory in Sandefjord was totally destroyed, as were the resin plants,
warehouses and laboratories. The company's R&D operation was hit extremely hard at
the same time as much of the group's production capacity was wiped out. The
management found itself facing the enormous challenge of coming up with new
production capacity, planning the rebuilding work, etc. The fire also put the company in
an extremely difficult financial position, a state of affairs that was to last for four years.
 1977: The rebuilt paint factory at Gimle started manufacturing paint once more in April.
Jotun factory at Vindal in Sandefjord

 1978: A new warehouse and distribution centre at Vindal came aboard and was Europe's
most modern, computer-controlled high-bay warehouse at the time.
 1985: Scandia Kjemiske in Oslo was taken over by Jotun.
 1990: Jotun's founder, Odd Gleditsch Sr, died in January.
 1991: A high-tech environmental factory opened at Vindal. This was the largest
investment to date, and a factory for the future. Nodest, a paint manufacturer in Lier near
Drammen, was taken over.
 1995: Scanox AS was formed through the merger of Nodest and Scandia Kjemiske
Fabrikker A/S.
 1997: The polymer division was sold.

[edit] Technology
1931: The Arcanol-patent was acquired and the product subsequently launched. This grey-
coloured red lead had particularly good rust-inhibiting properties and was a success.

1935: Femkronerslakken (the five-"kroner" varnish) was launched and claimed a special place in
the company's history. Jotun was still a small factory that supplied mainly the whaling fleet and
some of the shipping companies and yards along the coast from Oslo to Kristiansand. Gleditsch
wanted to break into the retail market, but this proved difficult. He felt that a good floor varnish
could be a real winner and asked his only chemist, Birger Lystad, to come up with the very best
varnish possible.

The result was a spectacular varnish, but the expensive raw materials involved meant that the
price would be high, at least NOK 4.40 per kg (other varnishes generally sold at around NOK
3.70). Although Gleditsch's colleagues thought that varnish costing NOK 4,40 would never sell,
Gleditsch was adamant that the price should be NOK 5. He even referred to the price in the
product's name and justified it as follows: "there will always be some people who are willing to
pay that little bit extra for excellent quality." He also added: "We will never be rich and we will
never be big by competing on price alone." This has been Jotun's philosophy ever since.

1953: Fenom, a matt thixotropic interior paint based on alkyd resin, was launched and proved a
major success, enabling Jotun to expand in the retail market. In many ways this product was a
breakthrough for the company on account of its application features, adhesion and attractive
finish. It enabled consumers to achieve almost professional results themselves.
1954: Fenolux, a gloss thixotropic interior paint, was launched.

1959: Fenomix, the semi-gloss variant, came onto the market, but not without its problems.
Although Odd Gleditsch sr opposed the semi-gloss variant, sales manager Rolf Ra felt that this
was the way to go. He defied the boss's orders and had the paint, packaging and advertising
material made up. He was right to do so—Fenomix was one of Jotun's biggest success stories
ever.

1973: Demidekk Dekkbeis, a wood protection product based on new technology and a new
concept, was launched. Neither a stain nor a paint, it was an enormous success. In 1983 alone it
sold 3,400,000 litres (750,000 imp gal; 900,000 US gal) and between 1973 and 1990 it clocked
up huge sales of 30,000,000 litres (6,600,000 imp gal; 7,900,000 US gal). however, it was
phased out in 1984 on account of plummeting sales triggered by extremely negative media
coverage.

1975: The Seamaster system, an innovation in antifoulings for large ships, was launched and
enabled ships to go for four years between dry-dockings. Although a sudden drop in freight rates
and the launch of self-polishing antifoulings meant that the product was phased out relatively
quickly, it played a key role as a door opener to the international shipping industry, which until
then had shown very little confidence in Jotun.

1976: Multicolor, the world's first electronically controlled paint mixing machine, was launched
in Norway. It was the result of a project between Finland's Tikkurila, which developed the tinter
technology, Jotun, which developed the electronic control system, and Americas Gray
Corporation, which developed the mechanical part for the system such as pumps, nozzles, etc.

1985: Multicolour Futura, the second generation—and the first computer-controlled mixing
machine—was launched.

1998: Colourmaster Futura, the third generation of Multicolor machines, was launched.

1999: The tin-free antifouling, SeaQuantum, was launched.

2009: The Jotun ColourAdvisor, an online colour visualisation tool developed by Australian
company Autech Software & Design that allows Jotun website users to upload digital photos of
their own homes and 'paint' them online, is launched.

[edit] Overseas Expansion

1962: Odd Gleditsch jr. makes an important decision to establish a paint factory in Libya. This
was Jotun's first overseas plant. Libya was chosen at the suggestion of the Norwegian Export
Council because oil had been found there in 1959. At the time Libya was a peaceful but
relatively poor kingdom; oil was expected to bring rapid growth to the country's economy, and
thus greater demand for paint. The new factory opened without problems and Jotun encountered
a new and unknown culture. Jotun also learned an important lesson: it is vital to understand and
respect the culture of the country you are moving into. This paved the way for future successes.
1968: A new paint factory opens in Thailand. This was the first of a series of successes in
Southeast Asia.

1970: Jotun acquires UK company Henry Clark & Sons Ltd. This was an extremely important
part of the company's strategy to become an international player in the marine coatings market.
British shipping companies were extremely traditional, and it had proved difficult to break into
the UK market. This would change with a well-known British company on board.

1974: Jotun acquired Baltimore Copper Paint Co, a US marine coatings factory.

Jotun factory in Dubai

1975: Jotun UAE in Dubai is founded. This was Jotun's second company in an Arab country.
The Dubai factory has probably played the greatest role in the internationalisation of Jotun. In
this year, Jotun also won the Norwegian Export prize.

1976: Jotun opens a paint factory in Singapore. Jotun had already been represented for some
years through a sales company in the country, which had gradually built up an extensive ship
repair business.

1977: Vera UAE in Dubai, a factory for the production of glass fibre-reinforced polyester
pipelines, opens.

1978: Corro-Coat Thailand becomes Jotun's first powder coatings company outside Norway.

1980s: The 1980s were an exciting time for the company, characterised not only by expansion
and innovation, but also by situations that called for tough decisions. Jotun had picked itself up
again after the fire and went flat out to make a name for itself in the international market. 1983
alone brought the opening of three new paint factories: Jotun Saudia Co Ltd, Jotun (Malaysia)
Sdn Bhd, El-Mohandes Jotun SAE in Egypt. Baltimore Copper Paint Co Ltd was closed in 1984.
Corro-Coat Sdn Bhd (Malaysia) was set up. Jotun Paints LLC in Oman was formed.

1985: Jotun Powder Coatings Ltd is set up in the UK. Jotun Toz Boya (powder coatings) in
Turkey was also taken over. A new marine coatings factory in Flixborough in the UK came
online.
1990s: Expansion continued - the Jotun group became increasingly international.

1990: Corro-Coat UAE was founded in Dubai; Torné-Jotun in Spain came about through the
acquisition of Spanish player Industrial Torné; Jotun started manufacturing paint in Australia as
a result of the acquisition of Denso Dimet.

1991: A marine coatings factory, Chokwang Jotun, was established in South Korea; the paint
factory Jotun Boya San ve Tic was established in Turkey.

Jotun factory in China

1993: Corro-Coat Saudi Arabia was set up. Jotun Brignola, a marine coatings factory in Italy,
was established. Jotun Ocean Paint Co Ltd in China was formed through the acquisition of a
51% stake in a factory run by the Chinese state shipping company Cosco. Regional laboratories
were set up in Dubai (for the Middle East) and Kuala Lumpur (for South-East Asia).

Jotun factory in Abu Dhabi

1995: Corro-Coat (CZ) in the Czech Republic opened. Jotun acquired a 25% stake in the Finnish
marine coatings factory Nor-Maali OY. The paint factory Jotun Abu Dhabi (LLC) was
established. Red Sea Paint and binder factory Ratinjat in Saudi Arabia became part of the Jotun
family.

1996: P T Jotun Indonesia opened and was the first company to manufacture both liquid and
powder coatings. It was Jotun's 33rd new factory outside Norway.

1997: Jotun moved into South Africa through the establishment of Jotun Paints South Africa
(Pty) Ltd. Jotun decided to build a paint factory in Vietnam.
1998: Jotun's international SHE standard was introduced at all group production plants.

1999: Jotun acquired Valspar's marine operation in the United States and Canada. A new paint
and powder coatings factory opened in Thailand and was Jotun's single largest investment to
date. A regional laboratory for marine coatings was set up in South Korea.

2000: Jotun acquired the marine coatings company PRS Inc in the United States. A new paint
factory opened in Spain.

Market Ratio

Targets 8% market share in 2 years

KOLKATA: Norway-based Jotun Paints, a recent entrant in the country, has set up its first plant in Ranjangaon near Pune with an
investment of around Rs125 crore.

The plant will manufacture its entire range of paints, including decorative, protective, marine and powder coatings.

Jotun’s greenfield project, along with the host of foreign players like Sherwin and Nippon who are fast expanding their footprint in
India, is expected to change the dynamics of the colour space in the country.

In spite of strong competition, both from domestic players and other global majors, the company has set an aggressive target of 8%
market share in the next two years.
The Pune plant has a capacity to produce up to 50 million litres in wet paint and 10,000 tonnes of powder coatings.

Claes Jansson, managing director, Jotun Paints India said, “We have closely assessed the Indian paint sector over the last two
years and are now set with a plant of our own to make our presence felt. While we will drive our dominance in industrial and marine
coatings, along with the decorative segment, we will look at capturing a market share of 8% by end of 2010.”

Jotun is said to be looking actively at Kerala, Karnataka, Tamil Nadu and Maharashtra and will move to northern markets like
Gujarat, Delhi and Haryana subsequently.

The company, which is very strong in the Gulf region, is focused on south India.
Sources said mergers and acquisitions are not Jotun’s style, and it might come up with another manufacturing unit after a few years.

It will be interesting to see how Jotun Paints makes a mark on the decorative market, which at present is dominated by Indian
biggies like Asian Paints, Berger, Kansai Nerolac and ICI.

Unlike Indian paint companies, Jotun is not exactly driven by dealers on the marketing front. Rather, it has a shop-in-shop concept
through which it sells paints. Industry sources hinted that the company is likely to expand to 300 outlets once its starts operations in
India.

Currently, almost 90% of its turnover is from project sales.

At present, Jotun Paints’ turnover is around Rs100 crore, contributed mainly by marine paints and protective coatings, apart from
decoratives, which it plans to increase to Rs110 crore next year.

[email protected]

Jotun Paints, one of the world’s leading producers and supplier of paints and coatings, has
successfully showcased its latest range of interior and exterior paint brands at the ‘Le Marche
2010’, Egypt’s Biggest home furnishings and accessories exhibition, which concluded yesterday
(December 20th, 2010) at the Cairo International Conference Centre (CICC) in Cairo, Egypt.
The company’s participation in the annual high-profile event was in line with Jotun’s strategic
move to further increase market share and reinforce its position in Egypt’s EGP 1.8 billion paint
market - leveraging its products among the country’s leading interior and exterior design
professionals and consultants.

Aside from targeting interior industry professionals, Jotun is also eyeing Egypt’s high-end
consumers like villa owner segments, building developers and small facilities owners. During the
five-day event, the company highlighted its recently launched interior paint product line, ‘Lady
Effects’, which offers better finish and new interior effects with four unique finishes – ‘Lady
Effects Pearl’, ‘Lady Effects Metallic’, ‘Lady Effects Glaze’, and ‘Lady Effects Stucco Antica’ -
allowing customers to have more options in selecting the paint effects that complement their
lifestyles and personalities. The company also featured its exterior product line, which includes
‘Jotashield Heritage Traditional Tex’, ‘Jotashield Heritage Antique Tex’ and ‘Jotashield Heritage
Classic Tex’. One of the key highlights of Jotun’s participation at ‘Le Marche 2010’ was the
promotion of the coming ‘Colour trends 2011’; a new line of paints that consists of four new
ranges such as the Earth, Princesses, Generations and Festival of Colours.

“Over the last 28 years, the ‘Le Marche’ exhibition has become a strategic platform for the
region’s interior and exterior design segment; an important venue to display the best and the
latest trendy products in the market and a venue to discuss and exchange ideas to help improve
the industry and expand into different target audiences,” said Tor Hatlo-Johansen, General
Manager, El- Mohandes Jotun Egypt. “Jotun Paints has always been the sole paint supplier to
participate in this annual exhibition. Attracting high-end consumers from all over Egypt and even
from different international areas, ‘Le Marche 2010’ has given Jotun the unique opportunity to
showcase our professional range of products to a high potential audience - from industry
professionals and consultants to high-end residential and facilities owners.”

This year’s Jotun booth carried a diverse set of themes designed by Dr. Mohamed Noaman, a
leading Egyptian interior designer. The booth showcased six different interior moods – Pub,
Deco, Loft, Lodge, Gold, and Elegance and three exterior moods – Traditional, Antique Tex and
Gold.  Jotun’s ‘Jotashield Super Durable’, which is under the Jotashield brand, is a low volatile
organic compound (VOC) coating with twice the life span of traditional coatings. It provides
superior durability, anti-concrete carbonation properties, and low chemical reactivity, thus
enabling it to offer superior concrete protection and help reduce maintenance costs. Furthermore,
the product offers superior durability to withstand the harsh climate in the region, among other
properties that prevent the degradation of structures. The ‘Lady Essentials’ range gives a
beautiful matt finish that is easy to clean, does not leave any trace of odor after 6 hours of
application and guarantees lasting colors for years. Aside from its exhibition booth, Jotun Paints
supplied the paints used for the event’s designer’s hall, which was also designed by Dr.
Mohamed Noaman and for the concept ideal home exhibit, which was designed by international
interior designer Karim Rashid.

“Recent international industrial reports have shown that decorative and protective coatings
account for almost half of the world’s total paint consumption. Aiming to capitalize on this,
Jotun Paints remains steadfast with its commitment to be a key trendsetter in the industry by
increasing awareness of the unique advantages and features that our products have to offer. In
Egypt alone, there is already a growing demand for quality paint products and services that are
safe to use and environment friendly – the products that we have exhibited in ‘Le Marche 2010’
not only aim to meet these growing demands but will also help position ourselves as industry
leaders,” concluded Tor Hatlo-Johansen.

Jotun Paints has a major presence in Egypt since 1987 and is considered a market leader in
providing fully-integrated protective and decorative. Jotun paints have been used in a number of
high profile and renowned projects, including luxury hotels, offices and residential developments
and landmarks such as Cataract Aswan Hotel, Marassi and Up Town Cairo by Emaar, and Al
Tahrir Museum

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