Kemira Annual Report 2005

More documents

Recommendations

Info

Paints & CoatingsLeading position bolstered bystrong consumer brandsOur paint business is number one in size and profitability in Northern and Eastern Europe. Weintend to maintain this position and to strengthen it further. Our strategy is based on growth inselected product groups within decorative paints and industrial coatings. With the acquisition ofKraski Teks, our paint business nailed down the leading position in the Russian market.Our main business area is decorativepaints, which make up about 75 percentof our operations. We offerpaints and related services to consumersand professional paintersthrough a distribution network comprisingsome 4,000 paint stores in 25countries in Europe and Central Asia.Within industrial coatings, we focuson customers in the metal andwoodworking industries, to whomwe make direct deliveries and alsoserve through 250 distributors. Thepaint brands Tikkurila, Alcro, Beckersand Vivacolor are market leaders intheir own areas. In the industrialcoatings segment, products are marketedunder the Tikkurila Coatingsbrand across our entire distributionchain.Operating profit ontrack and risingKemira Paints & Coatings performedwell in 2005. The year was characterizedby high raw material prices,which still pose a big challenge forour healthy level of profitability.Owing to the seasonality of the paintbusiness, the bulk of the year’s earningscomes in the second and thirdquarters. Over the last years, whenour revenue has remained fairly unchanged,we have done a great dealof work to build for the future. Wehave divested weakly profitable businessesand boosted the efficiency ofexisting ones. This can be seen in thetrend in our operating profit, whichfor years now has been on a goodand rising trend.Growth organically andthrough acquisitionsWe are seeking growth both organicallyand through acquisitions. Thegreatest growth potential lies in theEast, particularly in Russia, where therise in the standard of living will beaccompanied by growing paint consumption.For years now, paint consumptionin Northern Europe hasbeen on a plateau. Yet even in astabilized market, growth can beachieved by coming out with novelproducts. A recent example is thewater-borne UV-curing method thatTikkurila developed for the furnitureindustry, a method that won an innovationaward at a trade fair in October2005. Our product developmentalso encompasses the renewal ofIndustrial coatings in an outdoor stress test.Päivi Syrjälä measures paint fineness with a grindometer.14
existing products to make sure that they retain theircompetitiveness.been safety walks, safety training as well as continuousoccupational safety campaigns.Going after excellent profitabilityWe have reached our goals for improving operating profit,and now have set our sights on an even higher level ofoperating profit and return on capital employed. We areaiming for world-class internal efficiency. Our objective isto manage our brands cost-effectively, reliably and in fullcompliance with environmental standards, with an eyeunfailingly on providing the best possible service for ourcustomers.Prioritizing improved occupational safetyReducing accidents is our key safety target. The mainmeans we use in improving occupational safety havePaints & CoatingsCustomers: Consumers, professionals, the woodworkingand metal industries.Market position: #1 in Finland, Sweden, Russia and theBaltic countries.Products and services: Decorative paints, industrialcoatings, advisory services.Revenue: EUR 458 million.Personnel: 2,375Main market area: Northern and Eastern EuropeVantaa, Finland. The product testing laboratory at the Tikkurila Monicolor plant.Jouni Kankaanpää and Päivi Syrjälämake sure the product passes muster.15
Page 1 and 2: Annual Report 2005Annual Report 200
Page 3 and 4: Kemira is a chemical group that is
Page 5 and 6: In November, Kemira announcedit was
Page 7 and 8: Kemira’s way of workingWe are a r
Page 9 and 10: Kemira takes the leading positionDu
Page 11 and 12: secured a complete product palette
Page 13 and 14: started up in Stockholm, Sweden at
Page 15: achieve strong growth in the market
Page 19 and 20: EUR millionNet salesEUR millionCapi
Page 21 and 22: ship. About 100 Kemira employees pa
Page 23 and 24: Number of personnelaverage(Permanen
Page 25 and 26: For years now, Kemira’s titanium
Page 27 and 28: The importance of managingdata on r
Page 29 and 30: The first requirements of the VOCdi
Page 31 and 32: The Group also initiated an integra
Page 33 and 34: closed, partly as a result of damag
Page 35 and 36: (REACH deals with the registration,
Page 37 and 38: Environmental data for the Kemira g
Page 39 and 40: Corporate GovernanceThe corporate g
Page 41 and 42: with the procedures and principlesc
Page 43 and 44: President since 2001, Kemira’s Ch
Page 45 and 46: insiders and project-specific insid
Page 47 and 48: 60 million. For Kemira, the Uruguay
Page 49 and 50: Kemicond methodA Kemira-developed s
Page 51 and 52: CompanyKemiraGroup’sHolding %City
Page 53 and 54: Pulp & Paper ChemicalsKemwaterPerfo

Kemira Annual Report 2005

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?