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Holland Colours establishes Indonesian joint venture, reports mixed annual results
STRATEGIES
June. The facility has doubled in size and added ‘new capabilities’ that will enable the company to better collaborate and develop customer-centred innovations, it says. Highlights of the new centre include a design showroom displaying how colour and special effects can impact different shapes, textures and materials; a state-of-the-art technology training facility; and new, advanced equipment to expand capabilities in textile/ fibre applications and molecular-level material analysis. These new additions further strengthen PolyOne’s ability to work with customers to enhance their products, enter new markets and help them accelerate growth, the company says. The expanded, state-of-the-art facility will improve PolyOne’s ability to work closely with customers during the design and development phase ‘to drive innovation and excellence in their end products’, comments John Van Hulle, president of PolyOne Global Color, Additives and Inks. In addition to the Shanghai facility, in Asia PolyOne also has innovation centres in Suzhou and Singapore and R&D facilities in Shenzhen, Tianjin, Dongguan and Thailand. Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
Holland Colours establishes Indonesian joint venture, reports mixed annual results
H
olland Colours NV of the Netherlands and Italian company Gaypa Srl have signed an agreement to establish a joint venture in Indonesia. P.T. Holco Indo Jaya will focus on the production, sales and marketing of Holland Colours’ Holcomer UHT product line [ADPO, November 2006]. Gaypa will contribute its production and process knowhow. Together with its Indonesian subsidiary – P.T. Holland Colours Asia – Holland Colours NV will have an 85% share in the joint venture and Gaypa the remaining 15%. The two companies have been working together since 2005. Holland Colours’ investment, which will be financed from the company’s operational cash flow, will start after all local approvals have been granted. The
August 2012
production facility will be in Surabaya and is expected to come on stream during the first half of 2013. Holcomer UHT protects monolayer PET bottles against light, which allows certain dairy products to be longer protected. The market for dairy products in Asia is growing fast and is expected to continue to grow, especially as a result of the expanding middle class. In particular, significant growth is predicted for the ultra-high temperature (UHT) dairy products segment. Holland Colours believes it will be able to meet this forecast growth as a result of the joint venture investment, which is supported by the Dutch government through its Private Sector Investment Programme (PSI). The investment comes despite a difficult 2011/2012 financial year (FY) for the company, with net profit almost halved at E1.7 million compared to E3.2 million in FY 2010/2011. The weakening economy and rising prices for raw materials placed pressure on margins, Holland Colours says. Sales rose slightly (+1%) to E61.2 million while volume growth was 2%. Currency effects had a negative impact of approximately 2%, mainly due to the lower US dollar in the first six months. After remaining steady during the first half of the year, sales rose in the second half to a higher level than in the same period the previous year due to positive developments in the last quarter. After falling 3% in the third quarter, sales rose 7% in the fourth quarter in comparison to 4Q 2010/2011. The development of the business varied between regions. Sales increased in Europe in the first months of the financial year, but declined after the summer due to the deteriorating economy. Sales also fell 2% in the Americas due to a difficult start to the year and also to currency effects. Excluding currency effects, sales rose in this region by 2%. Asia was the only region to generate an increase in sales in Euro terms compared to the previous financial year. The proportion of total sales realized in Asia increased further to 15%. The increase in sales in this region in FY 2011/2012 amounted to 18% after currency effects. Without currency effects the increase was 24%. Sales in the Building & Construction market fell 3% as a result of the decline in demand in Europe since the summer of 2011. This was partly offset by positive developments in North America, where sales rose slightly despite the lower US dollar. The fall in sales was less than the fall in volume due to higher sales prices. In the Packaging market, Holland Colours achieved lower sales on higher volume compared to 2010/2011. Although this market is less exposed to cyclical changes, it has become more
Additives for Polymers
7
STRATEGIES
competitive as a result of lower demand in other markets. Growth in the Europe and Asia divisions was cancelled out by a fall in sales in the Americas division. Sales in Silicones & Elastomers were up 12% compared to last year. Sales rose in all geographical divisions, with the highest growth in the Americas. Sales in Specialities increased by 10%. This was achieved mainly in Asia, and in Europe to a lesser extent. In Europe the increase was partly due to innovative products sold outside the company’s focus markets. In Asia, sales of Holland Colours’ new masterbatch product Holcomaster accounted for much of the growth. The sharp decline in net and operating profit was largely due to higher raw material prices. As a result of the difficult economic climate, especially in Europe, these higher costs could in many cases only be partially passed on to customers and after a delay. This led to a fall in the gross margin, in both absolute and relative terms, the company says. Changes in the product mix were another important constituent of the lower relative gross margin, in particular the increase in Specialities sales in Asia and the decline of the share of Packaging in overall sales, Holland Colours reports. Return on investment (ROI) declined over the year as a whole to 10.0% from 17.7% in 2010/2011. The company targets ROI growth of at least 15%, sales growth of 8% to 12 % per year, and growth in earnings per share, none of which were achieved in FY 2011/2012. For the year ahead, Holland Colours expects increased sales of new products such as Holcomer UHT (as mentioned above) and Holcosil HTV to contribute to the sales development. Recovery of the gross margin will continue to be a goal; higher raw material prices will continue to be passed on to customers and efforts designed to increase operational efficiency will continue unabated, the company says.
ther in the Turkish market. The company reports that its sales in the country have nearly tripled since 2009, reaching around E125 million in 2011. According to Lanxess, the move will also extend its hold in the global automotive industry. New entity Lanxess Kimya Ticaret Ltd ùti will manage the company’s business in Turkey’s growing markets in the future, focusing particularly on the automotive and tyre industries. The new company will initially employ 20 staff under the leadership of general manager Ömer Bakir. Lanxess previously organized its operations in the country via external distributors. ‘The establishment of our new subsidiary in Turkey represents another milestone on our global growth path. Turkey is tremendously important to Lanxess, not only because of its geographical location between East and West, but also as an engine for growth in the entire region’, remarks Axel C. Heitmann, chairman of Lanxess’ board of management. The company anticipates that the Turkish economy will grow between 4% and 5% per year between 2013 and 2016, significantly faster than Western Europe. Lanxess markets its entire range of products in Turkey, from high-performance polymers and speciality chemicals to chemical intermediates. Activities focus on high-performance rubber products, rubber chemicals (e.g. vulcanization aids and stabilizers) and high-tech plastics for the automotive sector, as well as colour pigments for the construction industry. The most important sectors in Turkey for Lanxess are the automotive and tyre industries; it expects the Turkish automotive industry to grow by 8.5% in 2013 and then 3.5%/year from 2014 to 2016. For the country’s construction industry, Lanxess says it foresees growth rates of between 4% and 5% in the next few years.
Contact: Holland Colours NV, Apeldoorn, The Netherlands. Tel: +31 55 366 3143, Web: www.hollandcolours.com Or contact: Gaypa Srl, Via Monte Grappa 33, 36050, Quinto Vicentino (Vi), Italy. Tel: +39 0444 584400, Fax: +39 0444 584401, Web: www.gaypa.com
Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com and www.lanxess.com.tr
New Lanxess subsidiary targets Turkey’s growing markets
AG Foundation of Essen, Germany, has indefinitely postponed plans for an initial public offering (IPO) for Evonik Industries, citing on-going volatility in financial markets caused by the Eurozone debt crisis. The decision comes barely a month after the company had said that
G
erman speciality chemicals company Lanxess AG has opened a new subsidiary in Turkey’s capital Istanbul as part of its plans to expand fur-
8
Additives for Polymers
Evonik Industries IPO shelved for the third time
R
August 2012
June. The facility has doubled in size and added ‘new capabilities’ that will enable the company to better collaborate and develop customer-centred innovations, it says. Highlights of the new centre include a design showroom displaying how colour and special effects can impact different shapes, textures and materials; a state-of-the-art technology training facility; and new, advanced equipment to expand capabilities in textile/ fibre applications and molecular-level material analysis. These new additions further strengthen PolyOne’s ability to work with customers to enhance their products, enter new markets and help them accelerate growth, the company says. The expanded, state-of-the-art facility will improve PolyOne’s ability to work closely with customers during the design and development phase ‘to drive innovation and excellence in their end products’, comments John Van Hulle, president of PolyOne Global Color, Additives and Inks. In addition to the Shanghai facility, in Asia PolyOne also has innovation centres in Suzhou and Singapore and R&D facilities in Shenzhen, Tianjin, Dongguan and Thailand. Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
Holland Colours establishes Indonesian joint venture, reports mixed annual results
H
olland Colours NV of the Netherlands and Italian company Gaypa Srl have signed an agreement to establish a joint venture in Indonesia. P.T. Holco Indo Jaya will focus on the production, sales and marketing of Holland Colours’ Holcomer UHT product line [ADPO, November 2006]. Gaypa will contribute its production and process knowhow. Together with its Indonesian subsidiary – P.T. Holland Colours Asia – Holland Colours NV will have an 85% share in the joint venture and Gaypa the remaining 15%. The two companies have been working together since 2005. Holland Colours’ investment, which will be financed from the company’s operational cash flow, will start after all local approvals have been granted. The
August 2012
production facility will be in Surabaya and is expected to come on stream during the first half of 2013. Holcomer UHT protects monolayer PET bottles against light, which allows certain dairy products to be longer protected. The market for dairy products in Asia is growing fast and is expected to continue to grow, especially as a result of the expanding middle class. In particular, significant growth is predicted for the ultra-high temperature (UHT) dairy products segment. Holland Colours believes it will be able to meet this forecast growth as a result of the joint venture investment, which is supported by the Dutch government through its Private Sector Investment Programme (PSI). The investment comes despite a difficult 2011/2012 financial year (FY) for the company, with net profit almost halved at E1.7 million compared to E3.2 million in FY 2010/2011. The weakening economy and rising prices for raw materials placed pressure on margins, Holland Colours says. Sales rose slightly (+1%) to E61.2 million while volume growth was 2%. Currency effects had a negative impact of approximately 2%, mainly due to the lower US dollar in the first six months. After remaining steady during the first half of the year, sales rose in the second half to a higher level than in the same period the previous year due to positive developments in the last quarter. After falling 3% in the third quarter, sales rose 7% in the fourth quarter in comparison to 4Q 2010/2011. The development of the business varied between regions. Sales increased in Europe in the first months of the financial year, but declined after the summer due to the deteriorating economy. Sales also fell 2% in the Americas due to a difficult start to the year and also to currency effects. Excluding currency effects, sales rose in this region by 2%. Asia was the only region to generate an increase in sales in Euro terms compared to the previous financial year. The proportion of total sales realized in Asia increased further to 15%. The increase in sales in this region in FY 2011/2012 amounted to 18% after currency effects. Without currency effects the increase was 24%. Sales in the Building & Construction market fell 3% as a result of the decline in demand in Europe since the summer of 2011. This was partly offset by positive developments in North America, where sales rose slightly despite the lower US dollar. The fall in sales was less than the fall in volume due to higher sales prices. In the Packaging market, Holland Colours achieved lower sales on higher volume compared to 2010/2011. Although this market is less exposed to cyclical changes, it has become more
Additives for Polymers
7
STRATEGIES
competitive as a result of lower demand in other markets. Growth in the Europe and Asia divisions was cancelled out by a fall in sales in the Americas division. Sales in Silicones & Elastomers were up 12% compared to last year. Sales rose in all geographical divisions, with the highest growth in the Americas. Sales in Specialities increased by 10%. This was achieved mainly in Asia, and in Europe to a lesser extent. In Europe the increase was partly due to innovative products sold outside the company’s focus markets. In Asia, sales of Holland Colours’ new masterbatch product Holcomaster accounted for much of the growth. The sharp decline in net and operating profit was largely due to higher raw material prices. As a result of the difficult economic climate, especially in Europe, these higher costs could in many cases only be partially passed on to customers and after a delay. This led to a fall in the gross margin, in both absolute and relative terms, the company says. Changes in the product mix were another important constituent of the lower relative gross margin, in particular the increase in Specialities sales in Asia and the decline of the share of Packaging in overall sales, Holland Colours reports. Return on investment (ROI) declined over the year as a whole to 10.0% from 17.7% in 2010/2011. The company targets ROI growth of at least 15%, sales growth of 8% to 12 % per year, and growth in earnings per share, none of which were achieved in FY 2011/2012. For the year ahead, Holland Colours expects increased sales of new products such as Holcomer UHT (as mentioned above) and Holcosil HTV to contribute to the sales development. Recovery of the gross margin will continue to be a goal; higher raw material prices will continue to be passed on to customers and efforts designed to increase operational efficiency will continue unabated, the company says.
ther in the Turkish market. The company reports that its sales in the country have nearly tripled since 2009, reaching around E125 million in 2011. According to Lanxess, the move will also extend its hold in the global automotive industry. New entity Lanxess Kimya Ticaret Ltd ùti will manage the company’s business in Turkey’s growing markets in the future, focusing particularly on the automotive and tyre industries. The new company will initially employ 20 staff under the leadership of general manager Ömer Bakir. Lanxess previously organized its operations in the country via external distributors. ‘The establishment of our new subsidiary in Turkey represents another milestone on our global growth path. Turkey is tremendously important to Lanxess, not only because of its geographical location between East and West, but also as an engine for growth in the entire region’, remarks Axel C. Heitmann, chairman of Lanxess’ board of management. The company anticipates that the Turkish economy will grow between 4% and 5% per year between 2013 and 2016, significantly faster than Western Europe. Lanxess markets its entire range of products in Turkey, from high-performance polymers and speciality chemicals to chemical intermediates. Activities focus on high-performance rubber products, rubber chemicals (e.g. vulcanization aids and stabilizers) and high-tech plastics for the automotive sector, as well as colour pigments for the construction industry. The most important sectors in Turkey for Lanxess are the automotive and tyre industries; it expects the Turkish automotive industry to grow by 8.5% in 2013 and then 3.5%/year from 2014 to 2016. For the country’s construction industry, Lanxess says it foresees growth rates of between 4% and 5% in the next few years.
Contact: Holland Colours NV, Apeldoorn, The Netherlands. Tel: +31 55 366 3143, Web: www.hollandcolours.com Or contact: Gaypa Srl, Via Monte Grappa 33, 36050, Quinto Vicentino (Vi), Italy. Tel: +39 0444 584400, Fax: +39 0444 584401, Web: www.gaypa.com
Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com and www.lanxess.com.tr
New Lanxess subsidiary targets Turkey’s growing markets
AG Foundation of Essen, Germany, has indefinitely postponed plans for an initial public offering (IPO) for Evonik Industries, citing on-going volatility in financial markets caused by the Eurozone debt crisis. The decision comes barely a month after the company had said that
G
erman speciality chemicals company Lanxess AG has opened a new subsidiary in Turkey’s capital Istanbul as part of its plans to expand fur-
8
Additives for Polymers
Evonik Industries IPO shelved for the third time
R
August 2012