REPORT OF THE EXECUTIVE BOARD > Advanced Textiles & CompositesThe European market for both safety and work clothing andprofessional wear came under pressure across the board during thereporting year. This had a negative impact on growth in production ofprotective fabrics in Thailand. There was a consequent decrease inrevenues as a result of the poor economic performance. TenCate firstfocused on cost control and streamlining of production. Attention wasalso devoted to logistics and the reduction of quality costs and thereject rate. After this improvement process, both the efficiency andquality of the product portfolio will rise. The strategy is focusedparticularly on growth in market share based on the high-qualityconcepts which have been developed. The new products and systemswere well received at the industrial European industrial trade fairs heldat the end of <strong>2009</strong>. The commercial approach will be further developedin 2010. The Xennia technology can generate new impetus in the longterm.In view of the success of flame-retardant fabrics in neighbouringmarkets, TenCate Outdoor Fabrics adapted them for products for theoutdoor market. At the end of <strong>2009</strong>, TenCate Outdoor Fabricsintroduced tent cloth fabric with inherent flame-retardantcharacteristics. As a result, it is resistant to scorching, annealing andsparking. There is interest in this product particularly in the marketfor group tents. In addition to scouting, international aid organisationsand tour operators are interested in TenCate Campshield cloth.TECHNOLOGICAL DEVELOPMENTSXennia Technology (see description on page 51), in which TenCateacquired a majority interest in 2008, developed a machine for digitaltextile finishing in <strong>2009</strong>. This provides an innovative means of efficientand high-quality finishing or printing of textiles. The project has beenrunning for a number of years, enabling technical bottlenecks to beovercome. The first trial products will be produced in the course of2010. On the one hand, this will enable new products to be producedwith new functionalities. On the other hand, substantial savings can bemade in water, energy and chemicals. This digital inkjet technologyprovides an important basis for future – sustainable – production.The European Commission considers this technology to be a veryvaluable development, having regard to its considerable environmentaladvantages. A subsidy was granted for this development in theframework of the European promotion of innovation.OUTLOOKHealthy growth is expected in the US defence market once again in2010. No rapid recovery is being assumed in the market for industrialapplications, in view of the economic developments. There isnevertheless some optimism in view of the good reception for newlydeveloped products.Good growth in protective fabrics is expected In Asia and SouthAmerica. These attractive markets are expected to develop further.TENCATE ARMOUR COMPOSITES ANDTENCATE SPACE & AEROSPACE COMPOSITESMARKET POSITION AND STRATEGYTenCate is one of the leading companies in the field of armourmaterials (armour composites) and space and aerospace composites.These can replace traditional materials such as steel and aluminiumand make a major contribution to weight saving and better functionalcharacteristics. The strategy is focused mainly on securing a leadingtechnological position, developing material science, knowledge ofproduction processes in the industrial chain and direct access to endmarketsand OEMs. Qualifications are of crucial importance in order tobe able to operate in future programmes in this market.36Royal Ten Cate
The largest proportion of sales and composites is related to ballisticprotection (armour composites). TenCate Advanced Armour is theglobal market leader in concepts for ballistic protection of personneland vehicles. The US market is by far the largest. In Europe, the UKis the dominant market. Customers are mainly the large industrialconglomerates in the defence industry, manufacturers of trucks,aircraft, helicopters etc. and the related suppliers. The specificationsare determined by government bodies (defence ministries).developed. The start-up of production for aerospace has requiredsubstantial investments in the last few years, particularly in theNetherlands. The TenCate Cetex ® material now occupies a strongposition. Among other products, the leading edge of the wing (J-nose)and the engine intakes are manufactured from this material. TenCateCetex ® is also being used in the Boeing 787. In many cases it is notpossible to provide specific information on these componentsmanufactured with TenCate materials, for reasons of confidentiality.Where permitted by the defence authorities, TenCate operates as asingle group for the exchange of knowledge and solutions. TenCateoccupies an important position as a (fibre-) independent producer ofcomposites. The company processes a range of fibres including aramid,glass, carbon and HPPE for third parties. TenCate offers a wide rangeof products in this market. It is nevertheless an advantage to havedesign capacities, which enable specific solutions to be developedfor certain projects.In the aviation market, the material is used in interior and structuralcomponents. The scope of application of aerospace composites is stillfairly limited overall. The new generations of aircraft, however, will beable to provide a substantial impetus for growth. As a result of theeconomic situation and delays in programmes, the current productionlevel is lower than planned. This was mostly related to deliveries forthe Airbus A380 and the Boeing 787. This market has enormouspotential for TenCate.In the United States, TenCate Space Composites has a leading role incomposites for satellite programmes. In the aviation industry, TenCateAerospace Composites operates in the field of civil aviation andbusiness jets, as well as in military aviation. The main civil aviationcustomers are Airbus and Boeing and their direct suppliers. These twoproducers have defined the basis on which the market is being furtherTenCate was involved as a technology partner in the development ofmaterials and their application in the design of new aircraft. TenCatehas taken an important step with the development of unidirectional(UD) tape technology for the aerospace sector. This UD technology iscomplementary to existing production processes for composites.This has further strengthened the position as a development partnerand supplier for the entire aviation sector.GENERAL PERFORMANCE OF TENCATE ADVANCED ARMOUR2008 was an exceptionally good year, dominated by substantial ‘urgentrequirement’ orders. Developments for armour composites in the USmarket fell short of expectations in <strong>2009</strong>. Large orders which hadbeen expected failed to materialise. One of the reasons was thepostponement or delay in projects, in both the US and Europe.The European armour market developed well in <strong>2009</strong> in general.Expectations for the US market remain positive, partly due to majorprojects that are planned. TenCate is maintaining close relationshipswith various OEMs (original equipment manufacturers) of militaryvehicles. The company is involved in protection solutions for highprofilevehicle programmes, such as the Humvee, the Stryker,the Mine Resistant Ambush Protected Vehicle (MRAP), the MediumTactical Vehicle (FMTV) series and the Joint Light Tactical VehicleFourth dimension in professional wearClothing company Bierbaum-Proenen (BP) in Cologne (Germany) has developed a new collection of professional wear on the basisof the Denim Look weave, which is part of the TenCate Tecastyle ® range. The name Workfashion4 stands for a combination ofrobust quality, comfort and trendy style. With the brand-new Workfashion4, BP is presenting a ‘fresh outfit’ that targets fashionawareworkers in particular. The clothes can be combined according to one’s taste, work location and purpose. The TenCateTecastyle ® Denim Look is an innovative dyeing treatment. Its structure and appearance differ tangibly from traditional fabrics.Annual Report <strong>2009</strong> 37