Annual Report 2010 - About Heraeus
Annual Report 2010 - About Heraeus
Annual Report 2010 - About Heraeus
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40 <strong>Heraeus</strong> <strong>2010</strong> ··· Group Management <strong>Report</strong> ··· Consolidated Financial Statements<br />
Precious Metals<br />
Precious Metals Business Group – <strong>Heraeus</strong> Precious Metals<br />
The precious metals business group (<strong>Heraeus</strong> Precious Metals) is a world leader in industrial precious metals and special<br />
metals, processing the precious metals gold, silver, and platinum group metals, primarily for use in the manufacture of<br />
industrial products for the automotive, semiconductor, electronics, and medical industries. In addition, <strong>Heraeus</strong> Precious<br />
Metals holds a leading international position in industrial precious metal trading. The principal purchasers of <strong>Heraeus</strong><br />
Precious Metals products operate in the environmental, mobility, communications, energy, and health care sectors.<br />
BUSINESS DEVElOPMENT<br />
Driven by clearly reinvigorated industrial demand and<br />
boosted by a weaker euro in comparison to the US dollar,<br />
product revenues adjusted for precious metal effects<br />
improved by 60.3% over the previous year. Very strong<br />
market demand and high prices throughout the year<br />
for metals for industrial use boosted product revenues<br />
to €1,447.2 million, up by 110.2% over the previous<br />
year. Precious metal trading revenue likewise climbed,<br />
mainly because of higher precious metal prices and<br />
expanded production capacity. At €17,946.0 million,<br />
revenues again exceeded the level of the previ ous year.<br />
Overall, the precious metals business group achieved<br />
record profits, far surpassing any corresponding period.<br />
ChEMICalS<br />
Fueled by high precious metals prices and a very strong<br />
global position, precious metals recycling posted very<br />
stable results. With the successful startup of production<br />
at the recycling facility in Taicang, China, local customers<br />
from the pharmaceuticals and chemicals industries<br />
now have access to state-of-the-art ashing technology<br />
for recovering precious metals from spent catalysts. In<br />
addition, the London Bullion Market Association has<br />
added our facilities in Hong Kong to the Good Delivery<br />
List, which represents the quality standard for precious<br />
metals.<br />
The catalyst business profited from strong market recovery<br />
compared to 2009, especially for small-engine<br />
catalysts. A joint venture established in China in 2009<br />
for the production of motorcycle catalytic converters provided<br />
entry into that market. Owing to stricter emissions<br />
standards recently introduced in China, however,<br />
production has not yet reached the volume originally<br />
planned. Significant increases are therefore anticipated<br />
for 2011. Likewise experiencing an upswing was the<br />
chemicals business, which saw a definite recovery in<br />
chemical compounds for process chemistry, exhaust<br />
gas treatment, and surface coatings. As the world’s largest<br />
manufacturer of platinum-based anti-cancer agents,<br />
the pharmaceuticals business held its own in the generics<br />
market despite declining margins. After a prolonged<br />
start-up phase for the production of rubicin group agents,<br />
the first products were sold. Over the long term, the use<br />
of biotechnology and extensive cultivation of markets for<br />
original pharmaceutical products are expected to make<br />
up for the declining generics business.<br />
MEDICal COMPONENTS<br />
After the successful integration of the Synovis medical<br />
components business in 2009, the medical components<br />
business group consolidated its market position as a<br />
strong runner-up. In <strong>2010</strong>, the focus turned to organic<br />
growth. A variety of organizational measures were implemented<br />
to further improve the market and earnings<br />
situation. Technological know-how was further integrated<br />
and customer support was expanded. Finally, lean<br />
management led to significant improvements and savings<br />
worldwide.<br />
ThICk FIlM MaTERIalS<br />
The thick film materials business gained a new dimension<br />
in <strong>2010</strong>, with very positive developments driven largely<br />
by the photovoltaics business. Because of the outstanding<br />
technical performance of silver pastes for solar cell<br />
metallization, <strong>Heraeus</strong> drew even with the market leader.<br />
The permanent expansion of production capacity for silver<br />
pastes at facilities in the United States, China, and<br />
Germany contributed notably to this gain.
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