Jotun Paints achieves 12 per cent increase in sales for first half of 2007 in Saudi Arabia
Jotun Paints, one of the world’s leading producers and suppliers of paints and powder coatings, has announced that it has achieved a 12 per cent increase in sales of its paints and coatings in Saudi Arabia for the first half of 2007, compared to the corresponding period last year. Paint sales showed a growth of 10% while Protective / Marine sales grew by 40% over same period last year. The company has also recently announced plans to increase the capacity of its manufacturing plants from the current production of 50 million litres per year in Jeddah & Yanbu to satisfy the demand for paint in Saudi Arabia, which is growing at a rate of 6 per cent per annum.
The outstanding results can be attributed to the company’s increased focus on dealer support; the formation of a dedicated sales team to target Saudi Arabia’s booming construction industry and the ongoing expansion of its dealer network, which currently covers 160 major outlets across the Kingdom. The paint market in Saudi Arabia is currently valued at SAR 2.7 billion and the demand for paint is growing at a rate of 6 per cent per annum, due to the rapid developments in the construction industry.
“Saudi Arabia represents the single largest market in the Middle East as current active construction projects in the country have crossed USD 200 billion in value or 20 per cent of the GCC regional value of USD 1 trillion. Further, the number of development projects in the country has doubled in the past 12 months, and this year, the total value of new ventures is expected to reach USD 80 billion,” said Gunnar Thoresen, Managing Director, Jotun Saudia Co Ltd. “Jotun has been actively involved with a majority of the mega projects in Saudi Arabia and the formation of a dedicated sales team to address the specific requirements of such projects will certainly boost our sales in the coming months.”
Jotun has been operating in Saudi Arabia for the last 22 years, and has been involved with many prestigious projects including the Kingdom Tower, Prince Bandar palace, Kobar Lakes, Red Sea Village Resort within King Abdullah Economic City and several Ministry of Education projects. Looking ahead, Jotun plans to have seven Inspiration Centers up and running in Saudi Arabia by the end of 2007 and 25 by the year 2010. The company also plans to increase the number of its tinting machines in the country from 174 at present to 236 in 2010.
“We have charted an ambitious growth strategy that involves further expansion of our dealer network of single brand shops and the establishment of Inspiration Centers, which when combined with huge number of mega projects in the pipeline, gives us confidence that the positive sales trend will continue for all segments,” concluded Thoresen.
Jotun has been at the forefront of developing paint products that are specifically formulated to suit local weather conditions including a variety of conventional and specialized coatings that can withstand the extreme heat of the Middle East region. Utilizing the latest technological innovations in paint production, the company has offered a diverse range of solutions including decorative, protective, marine, floor/concrete protection and intumescent coatings, for high profile projects in the UAE, Bahrain, Kuwait, Qatar and KSA.
About Jotun Paints:
Founded in 1926 in Norway, Jotun - one of the world's leading paint manufacturers established its presence in the Middle East in 1974, with Jotun UAE Ltd. Ever since, Jotun has expanded dramatically throughout the region and is the first paint manufacturer to be awarded the ISO 9001 certification. Jotun has consistently invested in state of the art factories including the recently opened plant in the Al Quoz area of Dubai, UAE - the biggest worldwide for Jotun and the Middle East.
© 2007 Al Bawaba (www.albawaba.com)
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