PDF Document 2.46 MB - Geveko

Industrial OperationsDropOnLine is an application system that has been developed to improve the visibility of road markings on both wet and dry drivingconditions.are subject to intense competition. In2007, Geveko maintained its leadingmarket position in Sweden, Denmarkand Norway. In Sweden Geveko’scompany Cleanosol lost its singlelargest materials customer, VägverketProduktion, which started productionon own account of thermoplasticmaterials. However, Cleanosolmanaged to compensate for the lossvolume in Sweden by increasing itsexports to Central Europe. In Den -mark the market for road markingcontracts declined by some 20% asa result of municipal reform that wasimplemented in 2007. The contractingmarket is expected to recover inDenmark in 2008. The Germanmarket remained under pressure asa result of limited public funds andexcess production system capacityand an overpopulated market forroad marketing contractors. InHungary, the market was subdued in2007 following the completion ofseveral large motorway projects in2006. Serious flooding affected GreatBritain during the summer, whichcaused problems for the road markingindustry. In 2007 the road markingindustry developed strongly inSlovakia and the Czech Republic.Conditions in Poland, Romania andSwitzerland were stable.Product development activitiesare carried on with a focus on environmentallyfriendly products. Newroad marking products and productsystems shall help to improve roadsafety and satisfy the highest demandsfor functionality, environmentalsecurity, delivery precision and technicaldevelopment. Electronicallycontrolled products, such as opticalwarning systems, are being developedin the ITS area – Intelligent TransportSystems. Geveko has developed systemssuch as Safer@work to improveroad safety for road workers. Thissystem will be tested in Sweden in2008.Acquisitions in 2007Extensive investments in road constructionin Central and EasternEurope, financed with state fundsand via EU financial organisations,are expected to continue until 2015,which will impact the growth ratewithin road marking. In 2007Geveko acquired three Polish contractors,Dartom, GiK and Technom.These Polish companies have a goodgeographical spread and cover areasin which large infrastructure projectsare taking place or being planned forthe coming years. Geveko also carriedout an acquisition in Slovakiaduring 2007. The company, Osfer,which is also involved in contractingactivities, is situated in easternSlovakia near the borders withPoland, the Ukraine and Hungary.The acquired companies have beenconsolidated into Geveko’s subsidiarycompany Cleanosol, whichalready has responsibility for thebusinesses in Poland and the CzechRepublic. The acquisitions in Polandand Slovakia will strengthen Geveko’sposition on Central Europeanmarkets.Geveko is a major user of glassbeads, and in 2007 it acquired 50%of the shares in Allglass, a glass beadmanufacturer with activities in GreatBritain. The acquisition ensuresaccess to one of the most importantraw materials used in the manufactureof road marking materials. Theacquisition also gives Geveko scopeto engage in development work inthis area.13