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

annual report 2008
Compounds
Like the other activities in the Plastics Converting business group, Compounds
also suffered in 2008 from the slowdown in the construction activity. Moreover, this
business unit also suffered the impact of lower car sales. PVC compounds were hit
the worst. The thermoplastic elastomers were also subject to the crisis. However,
sales to the construction sector and the automotive industry rose.
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Activities and products
The Compounds business unit produces a
variety of ready-to-use PVC mixtures and
mixtures of thermoplastic elastomers.
These are mainly intended for the injection
and extrusion markets, with applications
in the construction industry (roller
blinds, façade cladding, window fittings),
the automotive sector (airbag covers,
dashboard skins, interior trims and sealing
systems) and the market for consumer
goods (handles for household appliances,
pens and toothbrushes).
Trends and facts in 2008
With regard to PVC compounds, sales
volumes dropped by more than 10 %. A
first explanation is the slowdown in the
construction sector, but high raw material
prices also played a role. Furthermore,
demand fell as a result of consolidation
within the companies that process the
compounds.
Lower demand and
higher raw material
prices have an adverse
effect on margins for
PVC compounds
Lower sales volumes and increased
supply in the market resulted in narrower
margins. Efforts to restore them inevitably
had a negative impact on sales volumes.
Saplast (France) suffered the most from
this, both on the home market and in
export countries.
The margins for plasticised PVC
compounds were under even more