Management Changes at Jotun Group: Yu Lei Succeeds Chen Hui After Brief Tenure, Sparking Attention on China's Market Strategy

COSCO Jotun Marine Coatings (Qingdao) Co., Ltd., a leading domestic marine coatings company, recently announced a change in its chairman. According to information from the Tianyancha app, the position of chairman was transferred from Chen Hui to Yu Lei on December 27, 2024, while the company's legal representative also changed from Chen Hui to Yu Lei. Notably, Chen Hui's tenure as chairman, which began on October 30, 2023, lasted less than a year.

Meanwhile, Jotun Coatings (Zhangjiagang) Co., Ltd. has also undergone significant personnel adjustments. On December 28, 2024, Kazancioglu Ali Tunc succeeded Fernando Bueno Rodriguez as general manager, with the legal representative of the company also changing from Fernando Bueno Rodriguez to Kazancioglu Ali Tunc. Sherif Ahmed remains chairman of the board.

Founded in 1926, Jotun Group is a global manufacturer of high-performance coatings, specializing in four major business segments: decorative paints, marine coatings, protective coatings, and powder coatings. The group operates 40 production facilities in 23 countries and regions, owns 66 companies in 46 countries and regions, and conducts business in over 100 countries. As of the end of 2023, the group employed 10,349 people worldwide. According to the "2024 Global Top 10 Paint Manufacturers Ranking" released by Coatings World, Jotun ranked 10th globally with $3.024 billion in sales revenue.

China is a critical market for Jotun Group. Since entering the Hong Kong market in 1983 and the Chinese mainland in 1993, Jotun has established 6 subsidiaries, 2 factories (an independent factory in Qingdao and a joint venture in Zhangjiagang), 9 offices, 1 R&D center, and 1 training center in mainland China, covering six major regions. Currently, Jotun's business in China spans marine coatings, industrial protective coatings, powder coatings, and architectural coatings, with leading market shares in marine coatings, wind power coatings, and bridge protective coatings.

As Jotun Group's wholly-owned subsidiary in China, Jotun Coatings (Zhangjiagang) Co., Ltd., established in April 2004, has become the group's largest single production base. The company manufactures and sells marine coatings, industrial protective coatings, architectural coatings, and powder coatings, which are widely used in offshore engineering, petrochemical industries, power sectors, construction machinery, bridges, and infrastructure. The company has achieved a production capacity of 155,000 tons, with sales revenue growing steadily from 1.857 billion CNY in 2019 to 3.97 billion CNY in 2023. The company employs more than 1,700 people.

Jotun Group also partnered with COSCO International Holdings Co., Ltd. to establish COSCO Jotun Marine Coatings (Hong Kong) Co., Ltd., which subsequently founded COSCO Jotun Marine Coatings (Qingdao) Co., Ltd. This company specializes in producing and selling marine coatings, with Jotun Group holding a 50% equity stake. According to the annual report, COSCO Jotun Marine Coatings achieved a sales volume of 147,524 tons in 2023, representing a 19% year-on-year growth. The company's sales revenue reached 3.9078 billion Hong Kong dollars, a 9.83% increase year-on-year, with a net profit of 464.5 million Hong Kong dollars, a remarkable 117.67% year-on-year growth.

According to Coatings World's data, COSCO Jotun's sales revenue from 2018 to 2023 was 2.1599 billion HKD, 2.2139 billion HKD, 2.4802 billion HKD, 2.5932 billion HKD, 3.5579 billion HKD, and 3.9078 billion HKD (approximately 3.518 billion RMB, up 15.12% in RMB terms). Over the past six years, the company's sales revenue has consistently grown. Since 2009, Jotun has ranked first in production and sales volume of marine coatings in China, maintaining its position as the market leader for 15 consecutive years.

To meet market demand and expand marine coatings production capacity, COSCO Jotun Marine Coatings (Qingdao) Co., Ltd. plans to invest 25.2 million RMB in a marine coatings renovation project, which will increase production by 80 million liters (approximately 105,352 tons) annually, raising total plant capacity to 212,412 tons (approximately 160 million liters). The project will be implemented in two phases, with phase one commencing in December 2024 and phase two planned for July 2026 to November 2027.

According to Coatings World's "Top 100 Chinese Coating Companies Ranking," Jotun China's sales revenue from 2017 to 2023 was 3.8237 billion RMB, 4.1836 billion RMB, 4.5682 billion RMB, 4.7517 billion RMB, 5.0843 billion RMB, 6.1856 billion RMB, and 7.026 billion RMB, respectively, consistently ranking among the top 10. Over the past seven years, Jotun China's sales revenue has achieved continuous growth, with strong performance in marine and protective coatings and steady growth in powder and architectural coatings.