History and background
Hempel is a world leading supplier of paints and coating expertise within the maritime sector, both for new-builds and after-sales service. As of 2012, business units comprise of Protective (fixed installations, e.g. bridges and windmills), Marine (ship hulls), Decorative (buildings), Container and Yacht. Hempel was founded in 1915 in Denmark by J. C. Hempel, who pioneered the production of ready-mixed paints for the maritime industry, a novel product in times when shipowners most often mixed their own paints. Consistent quality in paints and coating services was the main selling point for J.C. Hempel’s business, which from the very beginning went under the motto “Quality and Service”.
Product and service portfolio
In addition to quality painting products the company provides in all its business units, Hempel also offers Technical Service (TS) in the Protective, Marine and Container units, which is delivered by coating advisers during new-build or as after-sales, in the operation phase of the ship or structure. Different levels of service agreements are available, depending on the extent to which Hempel is part of the coating project management. Hempel describes its activities as: “ … to produce and sell protective coatings that increase the long term value of customers’ investment”.
Business presence and service stations
Hempel is a global player with some 5,000 employees working in 80+ countries, based in 48 sales offices, 150+ stock points, 24 factories and 10 R&D centres. The three main R&D centres are located in Copenhagen/Denmark, Barcelona/Spain and Guangzhou/China. Additional regional R&D centres are located in USA, Bahrain, Singapore, South Korea, UK and Germany. Hempel has Technical Service stations all over the world. These service stations can consist of coating advisers alone or be a mix of sales-staff and coating advisers. With 670 coating advisers among the total of 5,000 staff, Technical Service is a considerable part of Hempel’s activities.
Business competitiveness
The market of maritime paints is dominated by a small number of companies, including Hempel. Hempel´s market position is attributed mainly to product quality, but increasingly on the selling of coating expertise, which the company is targeting to become a strengthened business area.
Motivation to participate in PROTEUS
Hempel’s interest in PSS is based on the challenges that the company has experienced, in ensuring profitably from selling TS. As the challenge is to convince its customers that there is extra value to be gained from paying for service/coating expertise; traditionally this expertise has been expected as an integral part of the coating product itself. The ambition is to considerably raise the share that TS has in revenue and profit.