Industry News

Jotun opens one of the Largest Paint factories in China

Published on 2006-01-16. Author : SpecialChem

On Thursday 12th January, Jotun announced the opening of a new paint manufacturing plant in Zhangjiagang outside Shanghai in China. The plant, which is one of the largest and most advanced paint production sites in China, is an USD 30 million investment for Jotun.

General Manager Geir Bøe and Marketing Manager Christina Chen at the official opening.

There is fierce competition in securing talent in China, and recruitment, training and development of employees have been critical to our success, says division manager Esben Hersve. In this, a long-term strategy, first-class products and an international network of divisions that can cater for global customers, has been fundamental. In China, Jotun has almost 600 employees and an annual sales of NOK 500 million. – We believe demand for our paint will continue to increase in China, especially towards the Beijing Olympic Games in 2008 and The world's fair, EXPO, in 2010, adds Hersve.

Today, Jotun paints and protects 20 percent of the world’s merchant fleet, which means more than 10 000 vessels. China is one of the most important countries in the marine world market, and a continuous and strong growth for the next ten years is predicted. Despite increased competition the last couple of years, Jotun secures market shares, and has had an annual sales increase of 40 percent.

Behind from left: Morten Fon, Odd Gleditsch dy and Tor Christian Hildan.

The new manufacturing plant was necessary in order to serve an increasing number of customers. In China the Jotun Group now has two companies; Jotun COSCO Marine Coatings Co. Ltd. and Jotun Coatings (Zhangjiagang) Co. Ltd. The Head Office is situated in Shanghai, but Jotun is also represented in Hong Kong, Guangzhou, Chengdu, Wuhan, Tianijin, Beijing and Dalian. The two production plants are situated in Guangzhou and Zhangjiagang.

The Norwegian Ambassador in Beijing and the consul-general in Shanghai were present at the grand opening of the new plant in Zhangjiagang, together with representatives of the Chinese government, and the Red Cross. Supported by Jotun, the Red Cross organises first aid and safety training in Chinese mines.

With the Multicolor system, the Jotun Group is a leading provider of paint in most parts of Southeast Asia, and aims to further their success with this concept to the Chinese market. Airport, hotels and school projects will also contribute to further growth for Jotun.

In addition to investing in the manufacturing plant, which has a production capacity of 70 million litres a year, Jotun will set up a new research and development facility in China. In the beginning of March 2006, Bård Tonning will take over as Managing Director for Jotun (Zhangjiagang) Co. Ltd after Geir Bøe, and Mr Tonning is certain that the initiative will produce good results in the future. He is looking forward to develop Jotun’s operations in China.

The production area covers over 70.000 square meters, and the factory have a capacity of producing 70 million liters annually.

Jotun has been present in Asia for more than 40 years, and has been operating in the Chinese market for more than 20 years. Chairman Odd Gleditsch d.y. is very pleased with the new plant, and wishes his employees good luck in this exciting market.

Source: Jotun

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