Annual Report 2008 English [PDF, 2.69 MB] - Tessenderlo Group

annual report 2008
Chemicals
The Chemicals business group is comprised of two business units:
Inorganics and Chlor-alkali/PVC. It is characterised by an integrated
production process in which the various end-products and by-products are
utilised internally in order to create maximum added value. The business
group’s products are used in industry and agriculture and have applications
in a large number of aspects of everyday life, from batteries and paper to
animal nutrition, speciality fertilisers and water treatment.
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2008 in a nutshell
2008 was a record year for the Chemicals business group following a very successful
year in 2007. The lower results in Chlor-alkali/PVC were amply compensated for by
Inorganics. Despite the high raw material prices, among other things due to rising
oil prices in the first three quarters, profitability was improved. The Inorganics
business unit in particular was able to improve margins for agricultural products.
For the Chlor-Alkali activity, the margins for caustic potash and caustic soda were
higher than in 2007. However, this could not compensate for the decline in the PVC
activity. The results of the latter were unsatisfactory in the last quarter. The new
strategy whereby Tessenderlo Group and the Chemicals business group focus more
on specialities and less on commodities, has resulted in excellent performance in the
United States with Tessenderlo Kerley Inc. (TKI) recording strong figures.