Strong results in an unusual year
Jotun had sales of NOK 21,070 million in 2020, an increase of seven per cent from 2019. Operating profit was NOK 3,489 million despite affects of coronavirus pandemic.
Jotun announces price increases following sharp rise in raw material costs
In response to increasing costs of critical raw materials, including epoxies, copper, zinc, polyester, emulsions, and titanium dioxide, Jotun finds it necessary to raise prices.
The costs of raw materials used for the manufacturing of paints and coatings have increased significantly. Market reports, like the Independent Commodity Intelligence Services (ICIS) for epoxy, titanium dioxide and various resins, confirm this development.
On the London Metal Exchange (LME) copper and zinc prices have increased significantly, with copper reaching record high levels. Polyesters have also seen unprecedented cost increases on the back of various feedstock issues. In addition, the development for emulsions and titanium dioxide is significant, but varies somewhat from region to region.
Morten Fon, Jotun’s President & CEO, says price increases will apply to all relevant decorative paints, marine-, protective- and powder coatings products.
He comments: “In anticipation of rising costs, the company worked closely with key suppliers over the past year to manage the situation. However, the rapidly increasing cost of raw materials left the company with no choice but to adjust prices.
“While we will continue to work diligently to avoid placing any additional price pressure on our customers, the cost of our products and solutions reflect the market reality,” he says. “However, we remain confident that our service offering will help our customers offset higher costs with innovative, long-lasting products and solutions that help them gain a competitive business advantage”.
For further information:
Asne Vitterso Kvamme, Group Communications Director, +47 99244648, asne.vitterso.kvamme@jotun.no
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