ScandAsia. Cambodia News
Jotun expanding rapidly across Asia
11.05.2004 | news Knud Brix
The Norwegian paint giant Jotun is developing rapidly in South East Asia at the moment. Apart from setting up dealers networks in both Laos and Cambodia, the paint manufacturer is doubling its capacity at their factory in Vietnam and building a new factory in both Jakarta, Shanghai and Dubai.
Furthermore the company yesterday launched their new anti-fungal premium paint “Jotun Majestic” supported by a Bt80 million TV commercial for the high quality paint.
The hectic activities are a part of the company’s “aggressive strategy” to expand the Norwegian paint empire across Asia, Per-Harald Engesaeth, managing director of Jotun Thailand, was quoted in the Thai newspaper The Nation.
But also in Thailand, where Jotun has its most modern factory in the world, Engesaeth is expecting growth.
“We grew close to 20 percent in the first quarter of this year and expect to grow more than the market for this year and to take market shares from competitors. We expect our share to reach 25 percent of the total paint market and between 30 percent and 35 percent in decorative paint,” Engesaeth told the newspaper, and added that he expects the total paint market in Thailand to grow 15 percent this year. Last year the paint market in Thailand was, according to Engesaeth, worth 10 billion Baht, of which decorative paints accounted for about 7 billion Baht.
“It is our strategy to focus in the upper-middle to premium paint segment, which represents about 40 percent of the total market in term of volume and 75 percent in terms of value,” Per-Harald Engesaeth said, when asked about the company’s strategy in Thailand, where the company currently employs 253 people.
Jotun’s Thai operation set up the first operation in Phnom Penh a year and a half ago, and it is also Jotun’s Thai operation being used as a gateway to start up the dealers network in Laos and Cambodia, while Jotun’s office in Malaysia is taking care of the company’s business in Burma.
“We believe in local market access and employing local people, Engesaeth told The Nation when asked about the company’s plans to consolidate its paint factories in the region to take advantage of the region’s free-trade agreements.
| “We grew close to 20 percent in the first quarter of this year and expect to grow more than the market for this year and to take market shares from competitors," Per-Harald Engesaeth, managing director of Jotun Thailand, told Thai newspaper The Nation.
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