Turnover grows from DKK 0 to 100 million in five years
Nowocoat: Turnover grows from DKK 0 to 100 million in five years
Starting from literally nothing, the Kolding-based company Nowocoat Industrial A/S has achieved a turnover of DKK 100 million in just five years.
“It’s gone completely according to plan, and we’ll be growing a lot more in the coming years,” said Nina Reinert, chair of the board.
This year, the paint and coating factory on Stålvej in Kolding reached a financial milestone with an annual turnover surpassing DKK 100 million for the first time. The factory is owned by the Reinert family, who divested themselves of the majority of their business ventures five years ago, leaving them with passion, commitment, capital and a tax ID number in the Danish Central Business Register. Their goal was to invest all that into building the company of their dreams.
“We wanted to build a company with the best people in the industry and the best technology. We wanted to create a company where the customers’ demand for coating was the focal point of all our activities. Innovation, growth and flexible service would be our DNA, and that’s something we have invested heavily in,” said Nina Reinert, chair of the company’s board. She is very satisfied seeing the returns from that strategy now being reflected in the company’s turnover.
“We’re happy that we succeeded. It confirms that we have the right strategy, and we expect to grow a lot more in the coming years,” she added.
A strategy based on investments and growth
In 2018, Nowocoat inaugurated its 10,000 m2 factory on Stålvej in Kolding with state-of-the-art production and development facilities. There is still a long way to go before the factory’s maximum production capacity is reached, but there are also good growth opportunities in the area of functional coating, according to the company CEO, Ole E. Jensen.
“We are constantly developing new products with a view to optimising our customers’ production and businesses. There is a lot more focus on environmentally friendly solutions today, and this increases the demand for functional coating. We have a unique opportunity to adapt our products to our customers’ needs and production facilities and processes. For example, we have developed and supplied coating that is easier to apply and dries faster. This can amount to a big difference to our customers’ bottom line, which makes us a very attractive partner on the market,” he said.
In addition to the company’s production facilities and lab, its flexible and agile approach to the market is also based on skilled employees.
“We have put together the ‘national team’ for all the positions in the field of paints and coating, including the mixing department in the lab, accounting and sales. We started with a team of 10 employees, and we number about 35 today. And we still only hire the best of the best in the industry. This gives us a know-how and capacity for innovation that is singular in our industry,” explained Ole E. Jensen.
“It’s rare to see a patent on a paint, but we have already developed several patented products, such as Coolingpaint - a product we have just been issued a patent for in the United States, expiring in 2037 - which reflects heat and thereby not only reduces the global temperature increase but also reduces a building’s need for cooling, which is of course an energy-intensive process. Coolingpaint has been developed for wood, cladding and roofs, and there is no other coating like it on the market. We have also developed Denmark’s first environmentally approved algaecide,” he added.
In addition, Nowocoat’s production is ISO-certified and environmentally certified, ensuring that customers can be confident about receiving a uniform and environmentally friendly solution every time.
Goal: A turnover of DKK 300 million by 2025
The DKK 100 million turnover is a milestone for the company, but both the CEO and board agree that the company should grow much more in the coming years.
“Seen from the outside, Nowocoat’s rapid growth may look rather steep, but it’s been a controlled rise. We have had a unique opportunity to build a modern factory with a capacity to match our ambition. We have the key people we need for the foreseeable future - even if we continue growing up to the DKK 300 million target in the coming years,” said Ole E. Jensen, who expects that Nowocoat will round that milestone by 2025.
In addition to its organic growth, in 2019 Nowocoat also acquired Lurrell Industries A/S, a company known in particular for its surface treatments for garden furniture and wooden kitchen utensils.
Nowocoat Industrial A/S in strategic acquisition - future-proofing Danish niche business
The innovative paint and coating factory in Kolding, Nowocoat A/S, has acquired the niche company Lurrell Industries A/S. The acquisition will safeguard the future of Lurrell while giving Nowocoat an excellent addition to its existing client and product portfolio.
The time is right, these two companies are a great match, and it is a good deal for both parties: It is those three simple factors that explain Nowocoat A/S’ acquisition of Lurrell Industries A/S. Both companies will gain important strategic benefits through this cooperation, as well as the prospect of realising significant synergy effects once Lurrell becomes part of Nowocoat.
An acquisition that safeguards the future of the company
Lurrell, a 35-year-old company based in Roskilde and owned and managed by its founder Niels Christian Lund, is probably not a household name. The company is an unknown yet important sub-supplier of oil, lye, soap, etc., to some of the biggest furniture retailers in the industry such as IKEA, Jysk, WalMart and K-Markt.
For Niels Christian Lund, his need to future-proof the company has been the key motivator for selling right now. Nowocoat possesses the exact competences in terms of innovation and new product development, documentation and certification to ensure that in the future, Lurrell will remain the preferred supplier for the giants of the retail furniture industry. At the same time, the acquisition of the company by Nowocoat will mean that the company will remain in Danish hands.
“The production of Lurrell’s products has always been located in Denmark because it means that we are required to comply with the stringent Danish requirements for environmentally friendly solutions, and I’m glad that we can ensure this remains the case through our cooperation with Nowocoat. The requirements for environmentally friendly solutions and documentation are always being raised, and that’s where Nowocoat can contribute with valuable experience in the area of ISO certification of processes and products, among other things. This will become even more important for our customers in the future, so I see that as a clear strategic advantage. Finally, the company needs a generational changing of the guards
- not because I am retiring right now, but at my age, there’s a need to be able to tell the customers about future plans that extend beyond my time with the company. I can help make those plans thanks to this new cooperation,” said Niels Christian Lund, who has no plans to retire anytime soon.
“On the contrary. I am excited about this cooperation and to see what we can achieve with it together with Nowocoat in the coming years.”
Environmentally friendly products and industrial application are a perfect match for Nowocoat
CEO of Nowocoat, Ole Enevold Jensen, is quite candid about the fact that it is Lurrell’s environmentally friendly image and the company’s development potential that has made it an interesting acquisition.
“Their responsible and environmentally friendly focus lies in direct extension of our own image, and with this acquisition we will get access to employees, customers and products that are a perfect match for our other business areas, including DIY and the industrial markets in Europe and Asia. In addition to being thrilled to help ensure that Lurrell stays in Danish hands, we also see good opportunities to further develop the company in the coming years - not least thanks to our unique competences within innovation, process optimisation and customer approach,” said Ole Enevold Jensen. All of Lurrell’s employees will continue working at the company, and its production in Roskilde will continue after the acquisition.
For further information:
Contact Ole E. Jensen directly by telephone +45 30 30 32 34 or e-mail:
DANISH COMPANY TAKES ON THE BRITISH CONSTRUCTION INDUSTRY WITH NEW US PATENTED PAINT, THAT REDUCES ENERGY CONSUMPTION BY 15 %.
The Danish company Nowocoat has taken out US patent on three new types of paint, that can be used to cool down either roofs, facades or woodwork. The paint is called Coolingpaint and is developed from scratch at the company’s factory in Denmark. The company now enters the British market and offers private-label solutions to existing paint and coating manufacturers. “
We are very pleased and proud to have patented Coolingpaint in the United States. For me, this reinforces the fact that we here at Nowocoat are not just capable of developing the advanced technical and innovative products that the market needs from scratch, but it also shows that with the competences, R&D and production facilities that we possess, we can be at the forefront of the international league,” says CEO of Nowocoat A/S Ole E. Jensen and continues: “In many ways, Coolingpaint is a product with huge potential - not just here in Denmark, but also particularly abroad, and the technology behind it is interesting to many different segments. The need for cooling is increasing in most places around the world, but also here in our northern latitudes. Coolingpaint makes it possible to use the sun-reflecting paint to reduce the temperature on the treated surfaces significantly and in that way, among other things, reduce the energy consumption for cooling.”
A unique kind of protection
Nowocoat’s patent is called Solvent-free Infrared Reflective Surface Coating and covers both the structure and the process behind Coolingpaint. The technology is originally from the United States military’s stealth project which was to make planes less visible to radar. Nowocoat has further developed the technology with special equipment that homogenises the chemical composition of the paint’s pigments and additives. The pigments have microscopic mirrors added to them which reflect over 90% of the sun’s infrared rays. That reduces the amount of absorbed heat by up to 20%. Coolingpaint is based on HybridTechnology-System™ and includes the anti-fungal and algae-inhibiting additive SlowRelease-Protection™, which means that the additive is only activated in moist weather. This means that Coolingpaint provides the same protection that we know from common treatments for facades, woodwork and roofs and it also protects against the sun’s harmful infrared rays. “As always, we here at Nowocoat are focusing on making products that can both live up to strict quality requirements and meet the desire for a product that contains no harmful substances. As a result, Coolingpaint carries the EU Ecolabel which is a guarantee that the product meets strict environmental requirements throughout all phases of its lifecycle. This also means that Coolingpaint does not contain heavy metals, softening agents and harmful amounts of solvents. At the same time, it has been quality tested in accordance with international standards for coverage and opacity, UV-stability, adhesion, peeling, blistering, crack formation, high weather resistance, fungal and algal growth, gloss and colour change and the ability to reflect infrared rays,” Ole E. Jensen explains.
Large cities are struggling with a phenomenon called Urban Heat Islands. These are areas in cities where the temperature is significantly higher than in the surrounding natural areas due to people, buildings and machines absorbing and giving off heat. The phenomenon is harmful to both the environment and people’s health, as the rising temperatures once again increase the demand for cooling which results in air pollution and bad interior climates. “An untreated roof can reach surface temperatures of 90C, while the temperature on a roof treated with Coolingpaint Roof is reduced by up to 15%. In practice, this means that it is possible to reduce the Urban Heat Island effect and, not least, reduce the energy consumed by cooling units placed on the rooftop. The better that surfaces are able to reflect the sun’s rays, the more the temperature can be kept down - both on the surface and inside the building - and here Coolingpaint is a very financially and environmentally attractive solution,” Ole E. Jensen concludes.
COOLINGPAINT® is available in several types of woodwork, facades and roofs in common standard colours.
About Nowocoat A/S
Nowocoat A/S is an innovative and modern coating plant with roots that go back to 1861. We make innovative, functional and durable coatings for industry, production and professional use. In 2018, we opened our new factory in Denmark where we can produce up to 65,000 litres three times per day - with full traceability, environmental responsibility and optimal quality assurance. We are therefore double certified in accordance with the ISO 14001 environmental standard and the ISO 9001 quality standard. Through innovation and development, we create new standards for the effect that can be achieved via surface treatments while at the same time we are entering into close collaborations with our customers so that we can deliver solutions that are an optimal match for their production and needs.
This commercial film with Neutralon Alge remover is shown in periods on nationwide Danish TV, and can be purchased in all leading DIY markets in Denmark. See our website neutralon.dk
Fri for alger med ren samvittighed
Nowocoat kan stolt fortælle at Neutralon Algemiddel - klar til brug er godkendt af Miljøstyrelsen og gennemtestet og vurderet af Institut for Agroøkologi/ Aarhus Universitet som effektiv mod algevækst.
Godkendelsesnummer ved Miljøstyrelsen: Algemiddel reg. 777-9
Produktet vil blive massivt markedsført i TV2 og på sociale medier fra uge 12.