01 December 2007

Jotun Paints, a leading producer and supplier of paints and powder coatings, says it has recorded a 12 per cent increase in sales of its paints and coatings in Saudi Arabia for the first half of this year, compared to the corresponding period last year.

“Paint sales showed a growth of 10 per cent while protective/marine sales grew by 40 per cent over same period last year,” says a company spokesman.
The increase also gels well with Jotun’s recent announcement to increase manufacturing capacity from a current production of 50 million litres per year in Jeddah and Yanbu to satisfy the demand for paint in Saudi Arabia. “Through the setting up of this facility, we should be able to meet the demand for paint in Jeddah and Yanbu, which is growing at the rate of six per cent per annum,” says the spokesman.
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 SR2.7 billion ($720 million) and the demand for paint is growing at a rate of six 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 $200 billion in value or 20 per cent of the GCC regional value of $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 $80 billion,” says Gunnar Thoresen, managing director, Jotun Saudia. “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.”
Over a 22-year period the company has been involved with several prestigious projects in the kingdom that include: Kingdom Tower, Prince Bandar palace, Khobar Lakes, Red Sea Village Resort within King Abdullah Economic City and several Ministry of Education projects.
“Looking ahead, the company plans to have seven Inspiration Centers up and running in Saudi Arabia by the end of this year and 25 by 2010. Jotun also plans to increase the number of its tinting machines in the country from 174 at present to 236 in 2010,” he says.

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