Annual Report 2011 (5.07 MB, PDF-File) - Oerlikon

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the greater the opportunity for profitable export growth into other
emerging markets such as Turkey and Brazil.
Oerlikon Coating also continues to grow in India through its
support services to the expanding domestic automotive industry.
The regional headquartes in India cooperates with coating
centers in Thailand, Malaysia and Indonesia and in the rest of
South Asia.
Growth and Progress in Russia
Russia’s economy is forecast to grow at rates above 4 % per
annum, which is significantly higher than in the OECD countries.
Given the Russian economy’s sensitivity to export commodity
prices, the government is encouraging a rebalancing to
a more innovation-based economy. Russia has put technology
at the top of the agenda by introducing a variety of incentives
and initiatives – all of which make the country a very attractive
market for Oerlikon.
Letter Information for Investors Operational Review Sustainability Compliance Corporate Governance
Moscow: The Russian government is supporting the development to a more innovation oriented economy.
India
Oerlikon continues to expand in South Asia’s largest
growth market.
The major driver for growth in India is the growth of
domestic demand.
In 2011, Oerlikon had 17 locations with a total of
about 2 600 employees.
Group sales into India have increased steadily over
the last few years.
Sales were led by the Textile, Drive Systems and
Coating Segments.
Sales into Russia, led by Oerlikon Solar, have been a modest
up to 2 % of total Group sales over the past 3 years. Oerlikon
Textile, Coating, Vacuum and Drive Systems also sell into the
Russian market, but currently not at significant levels. The
Group will develop a comprehensive market penetration strategy
in 2012.
Brazil: new infrastructure and industrial expansion
Economists forecast long-term Brazil GDP growth of up to 5 %
per annum. Significant expansion in
the energy, infrastructure and transportation
sectors, along with very
large projects such as the 2014 FIFA
World Cup and 2016 Olympics, will
further drive growth.
The expansion of both the labor force
and middle class seen in the last 10
years is forecast to continue, which
should significantly increase domestic
demand and macroeconomic stability.
The country is not, however, without
near term challenges: Brazil’s
strong currency, high interest rates,
and skills shortage, combined with
weaker global export demand, could
have a material impact on the speed
of development. The stable long-term
growth outlook and rapid expansion of industries in which
Oerlikon has core competencies, make Brazil one of the most
interesting market development opportunities for the Group.
Today, Oerlikon is slightly represented in Brazil; recent sales
have been in the range of up to 3 % of the Group total, generated
primarily by the Textile, Drive Systems, and Coating Segments.
Oerlikon believes that Brazil offers significant growth
opportunities for the Group.