Annual Report 2010 - About Heraeus

Materials and Technologies Business Group –
Heraeus Materials Technology
The materials and technologies business group (Heraeus Materials Technology) develops and manufactures high-tech industrial
products using precious metals, such as gold, silver, and platinum-group metals, as well as high-melting-point, nonprecious
refractory metals. Based on a broad portfolio of technologies and deep added value, Heraeus Materials Technology
is a skilled partner for processing these precious metals and other innovative materials. As a technology leader with decades
of experience and facilities around the world, this business group is a leading provider in many key markets.
BUSINESS DEVElOPMENT
Owing to significantly higher market demand, product revenues
adjusted for precious metal price effects rose by
40.1% over the previous year’s level. The strong demand
combined with high prices throughout the year for industrial
metals boosted product revenue by 53.4% to
€1,501.2 million. Overall, Heraeus Materials Technology
achieved record revenues, far surpassing any corresponding
period.
CONTaCT MaTERIalS
The Contact Materials Division, hard hit by the crisis in
the key semiconductor and automotive industries during
2009, profited to an equal degree from their recovery in
2010. In addition to taking advantage of the strong upswing
in these key markets, the division benefited from
the realignment of businesses as well as from consolidation
measures implemented at its locations during the
economic crisis.
The bonding wire business stood out with strong growth,
further expanding its market position. The division profited
from the trend toward copper bonding wires and the
solid expertise in these technologies gained through
the 2008 acquisition of the bonding wire business from
Kulicke & Soffa Industries, Inc.
The assembly materials segment achieved satisfactory
earnings through a variety of activities and measures.
The acquisition of the Microbond business from Umicore
S.A., Belgium, in 2009 contributed significantly to this
result. Pioneering projects – such as the start of production
for ultra-fine solder spheres and the successful conclusion
of a contract with a solder paste manufacturer for
delivery of solder powders – support the expansion of
business and further growth in the future.
2010
2009
PRODUCT REVENUE
in € million
ENGINEERED MaTERIalS
978.3
1,501.2
The Engineered Materials Division likewise did very good
business in 2010. This can be attributed both to strong
demand for contact materials from the automotive industry
and to gratifying developments in other markets.
Faced with the need to react promptly to extremely
short lead times, especially in the automobile and lighting
industries, the division rose to the challenge of
swiftly rebuilding personnel capacities that had been significantly
trimmed in 2009.
Business is expected to expand in the coming years with
more new applications for flexible substrates and other
materials.
ThIN FIlM MaTERIalS
Restructuring measures introduced in 2009 and continued
in 2010 to support technology changes helped to
boost performance within the magnetic data storage segment
and throughout the Thin Film Materials Division.
With new manufacturing technologies in mind, facilities
in Singapore and Chandler, USA, steadily pursued the
process improvements initiated in 2009. This made it
possible to significantly improve and strengthen the
technological situation for platinum oxide sputtering
targets.
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