Registration Document 2005 - Total.com

Specialties
TOTAL’s Specialties sector includes rubber processing (Hutchinson),
resins (Cray Valley, Sartomer and Cook Composites & Polymers),
adhesives (Bostik) and electroplating (Atotech). The sector covers
consumer and industrial markets for which customer-oriented
marketing and service are key drivers. The Group markets specialty
products in more than 55 countries. Its strategy is to continue its
international expansion by combining internal growth and targeted
acquisitions while concentrating on growing markets and focusing
on the distribution of new products with high added value.
In 2005, sales for the Specialties sector reached 6.52 B€, an 8%
increase compared with 2004 in spite of weak demand in Europe
after having increased by 5% in 2004 compared to 2003. The
adjusted operating income from the Specialties activities increased
by nearly 10% in 2005 compared to 2004.
Rubber processing
Hutchinson manufactures and markets products obtained from
rubber processing for the automotive and aerospace industries as
well as for consumer markets.
Sales increased by approximately 4% in 2005 compared to
2004 after increasing by approximately 3% in 2004 compared
to 2003. Industrial sales benefited from strong demand in the
defense as well as in the aerospace industry in 2005 and grew
by approximately 15% compared to 2004. Sales in the consumer
goods sector decreased by approximately 3% due to weaker
European consumer spending in 2005. In spite of weak demand in
the automotive industry in Europe and North America in 2005, sales
to the automotive industry remained stable at their 2004 levels.
Hutchinson strengthened its industrial division in July 2005 by
acquiring the French company Techlam, a former affiliate of Safran,
a manufacturer of mechanical parts for various industrial segments.
Hutchinson continued to pursue its strategy of seeking to develop
its positions in growing markets such as Central and Eastern
Europe, South America and China.
Resins
TOTAL produces and markets resins for adhesives, inks, paints,
coatings and structural materials through its three subsidiaries Cray
Valley, Sartomer and Cook Composites & Polymers.
Business overview
Specialties - Chemicals
In 2005, in spite of relatively weak demand, sales grew by
approximately 13% compared to 2004, after having increased
by 7% in 2004 compared to 2003.
TOTAL - Registration Document 2005
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In 2005, Cray Valley strengthened its position in the adhesive resins
market with the acquisition of Wingtak resins from Goodyear and
Sartomer acquired the Kaucuk plant in the Czech Republic. This
plant manufactures polybutadiene additives for which the market is
expanding.
Adhesives
TOTAL’s adhesives subsidiary, Bostik, is one of the worldwide
leaders in its sector on the basis of sales, with leading positions in
the industrial, hygiene, construction and consumer and professional
distribution markets.
In 2005, sales increased by 6% compared to 2004 after having
increased by 3% in 2004 compared to 2003. In 2005 demand
remained strong in the United States and Asia but declined in
Western Europe, particularly in the consumer sector, and the prices
of raw materials increased.
In 2005, Bostik began the construction of two new flooring adhesives
plants in Sainville, France and Sidney, Australia. Bostik also
acquired various companies in 2005 with positions in the construction,
industrial and distribution segments in Turkey (Cekomastik),
in the UK (Laybond and Biscem) and in the Philippines (Global
Brands). Bostik also acquired AV Syntec specialized in adhesives
for the lumber industry in Australia.
Electroplating
Atotech, which encompasses TOTAL’s electroplating activities, is the
second largest company in this market, based on worldwide sales.
In 2005, sales grew by 7% compared to 2004 and by nearly 6% in
2004 compared to 2003. Following a relatively weak first half of 2005,
conditions improved in the second half, driven by strong demand from
the Asian electronics industry.
In 2005, Atotech acquired KAM, a supplier of biochemical
solutions to the automotive industry, as well as two companies
that manufacture and market various plating products: Chemeta in
Lithuania and Russia and MAG in the Czech Republic and Slovakia.
Production capacities at the Guangzhou, China and Neuruppin,
Germany sites were expanded in 2005.
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