© Hempel
Opening photo: ipcm® had the opportunity to discuss with Hempel the latest market challenges and the company’s future projects and investments.
HIGHLIGHT OF THE MONTH
Hempel: Tackling the Coating Market Challenges While Investing in a Sustainable, State-Of-The-Art Future from an interview with Sara Stendevad Hempel A/S, Kongens Lyngby - Denmark
savst@hempel.com
D
uring Scandinavian Coating 2019, that took place on March 20-21 in Copenhagen (Denmark), ipcm® had the opportunity to interview Sara
Stendevad, Corporate Communication & Media Manager of Hempel A/S and discuss Hempel’s recently released Annual Report for 2018 and the company’s future projects (ref. Opening photo). Hempel started a journey of transformation back in 2016, with the goal of consolidating even further its position as a leading company within the coating market. Following this intent, in 2018 Hempel welcomed into the Group J.W. Ostendorf, a manufacturer of decorative coatings, which doubled Hempel’s decorative business in Europe and contributed
EUR 39 million in sales in 2018. Considering the market challenges, Hempel is satisfied with its performance in 2018: revenue grew by 1.5% in fixed currencies, driven by the acquisition of J.W. Ostendorf and a strong fourth quarter. When excluding J.W. Ostendorf, negative underlying organic growth was 1.4%. However, the year ended with positive organic growth of 4% in the final quarter: “Numbers are stable. We didn’t have any huge jump in turnover or profit per se, but we are very satisfied with how we closed the year, taking into consideration also the market challenges. For one, the marine and oil & gas markets remained in a recessional state and the political and macro-economic situation in the Middle East made business tougher. Moreover, the price for raw materials increased significantly and this affected the entire industry. For Hempel, it entailed an increase in price of our own products, which we have announced to our customers, keeping a very open and constant communication with them. We found this to be a very effective strategy: the feedback was positive and they understood Hempel’s reasons, while recognizing our commitment in satisfying our
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N. 29 - 2019 APRIL - ipcm® Protective Coatings