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

annual report 2008
the continued increase of ethylene prices
that follow the evolution of oil prices.
Demand quickly slowed down after the
summer and the fourth quarter turned
out to be a catastrophe. Sales dropped by
an average of around 30 %, a reflection of
the crisis in the most cyclically sensitive
sectors, such as the construction and
automotive industries. In addition, the
plummeting of raw material prices at the
end of the year and scarce credit resulted
in a general reduction of stocks.
Outlook for 2009
has resulted in a sharp downturn of the
construction industry in Eastern Europe as
well.
In the long term, PVC will continue to
be a competitive commodity business.
Therefore, Tessenderlo Group is continuing
to focus on cost reduction, increased
productivity and the improvement of
quality and service. This is the only way
for Tessenderlo Group to strengthen its
position as a specialist in the field of
suspension PVC.
36
Forecasts remain unfavourable as long as
the general economic climate does not pick
up. This seems to be improbable for 2009.
Ethylene prices will probably be negotiated
on a monthly basis instead of every quarter.
This means PVC prices will fluctuate even
more. Furthermore, imports from the
United States and Asia, where production
costs are lower, also threaten prices.
Focus on low costs and
high productivity to
strengthen our market
position
Strategy for the PVC
activity
Forecasts for PVC
for 2009 are not
very bright
The European PVC market has become
a mature market with minimal growth
potential. The current financial crisis
• Keep costs throughout the value
chain as low as possible.
• Offer maximum added value
with existing products and
resources.
• Pursue maximum productivity.