Annual Report 2010 - Frauenthal Holding AG
Annual Report 2010 - Frauenthal Holding AG
Annual Report 2010 - Frauenthal Holding AG
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46 <strong>Annual</strong> <strong>Report</strong> <strong>2010</strong><br />
Strength through diversity<br />
industrial honeycombs<br />
in <strong>2010</strong> Porzellanfabrik <strong>Frauenthal</strong> again enjoyed<br />
healthy growth and improved its earnings by 70 %.<br />
What are the factors contributing to this success?<br />
Führer1 : In <strong>2010</strong> we had a very satisfactory year. Earnings<br />
rose more sharply than revenue mainly because of the 174 %<br />
growth in sales of diesel catalysts. The power station catalyst<br />
business was also excellent in all regions. We have won<br />
large orders for new projects both in Europe and in the USA.<br />
In addition to which, replacement business already constitutes<br />
around 50 % of the power station catalyst business.<br />
This is very satisfactory, because it makes us less dependent<br />
on volatile new project business. Heat exchangers also began<br />
to recover from the effects of the crisis. We are starting<br />
the new business year with an outstanding order book for<br />
power station catalysts and excellent market prospects for<br />
Euro 5 diesel catalysts.<br />
China is a market with great potential – how do you<br />
see the situation developing?<br />
Führer: In <strong>2010</strong> roughly 35 % of our power station business<br />
was with China, which is satisfactory. We did however<br />
register a significant decline in new orders from China in<br />
the second half of <strong>2010</strong>. This is the result of Chinese energy<br />
policies, which still do not make the use of SCR catalysts<br />
mandatory. It may be that the new five-year plan will throw<br />
some light on future developments. For the foreseeable<br />
future electricity consumption in China will grow by some<br />
10 % annually, and the additional requirements will largely<br />
„for the foreseeable future electricity consumption<br />
in China will grow by some 10 %<br />
annually“<br />
be supplied by coal-fired power stations. Sooner or later<br />
China will have to invest seriously in air quality. We shall be<br />
stepping up our involvement in this difficult but potentially<br />
most important market of the future.<br />
Mr Zhu, you joined Porzellanfabrik <strong>Frauenthal</strong>’s executive<br />
Board as of 1 January 2011. What are the goals<br />
you have set yourself?<br />
Zhu2 : I should like to help Porzellanfabrik <strong>Frauenthal</strong> realise<br />
its growth potential. As a German citizen born in China,<br />
1) Managing Director of Porzellanfabrik <strong>Frauenthal</strong> GmbH<br />
2) Managing Director of Porzellanfabrik <strong>Frauenthal</strong> GmbH since 1.1.2011<br />
3) Member of the <strong>Frauenthal</strong> <strong>Holding</strong> <strong>AG</strong> Executive Board responsible for the Industrial Honeycombs Division<br />
I am familiar with the market environment in Asia, and in<br />
particular in China, and I understand the difficulties European<br />
businesses experience in breaking into these markets<br />
and capturing the potential. I intend to put my many years<br />
of experience in the automobile industry to good use and<br />
continue to expand the sales network for industrial honeycombs.<br />
Our products are technically very sophisticated, and<br />
in China that is the best entrée to the market.<br />
environmental legislation is on the advance around<br />
the world. Where are the growth opportunities for<br />
<strong>Frauenthal</strong>?<br />
Sailer3 : There are growth opportunities in the markets<br />
for both stationary and mobile honeycombs, and both<br />
in our traditional markets and in new ones. The Euro<br />
5 standard is being introduced in Brazil for commercial<br />
vehicles in 2012. In the USA we have excellent market opportunities<br />
for our large-volume catalysts in the offroad<br />
segment, i.e., construction and agricultural machinery.<br />
For ships, we can expect a worldwide emission standard<br />
in a few years’ time. This application of SCR technology<br />
„We are one of only two manufacturers<br />
worldwide to offer all types of stationary and<br />
mobile catalysts.“<br />
is very similar to its use in small power stations, and<br />
our extensive engineering know-how means that we are<br />
especially well placed to supply the market. Our revenue<br />
in this area in <strong>2010</strong> was already EUR 700t. But the immediate<br />
growth potential is for a product that is a new<br />
one for us, the plate catalyst. As we expected, getting<br />
the initial orders was not easy, even though customers’<br />
endurance tests confirmed the technical excellence of<br />
the product. But now we have landed our first major<br />
orders. This type of catalyst is best suited to power stations<br />
fired with high-ash coal. We are one of only two<br />
manufacturers worldwide to offer all types of stationary<br />
and mobile catalysts.<br />
With all these market opportunities, where are you<br />
going to put the emphasis?<br />
Führer: We must first consolidate our existing market
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