PDF Document 2.46 MB - Geveko

Industrial Operations / Road Marking business areaBusiness area’s share ofIndustrial Operations’ salesAcquisitions in Central Europe generate growthBusiness area’s revenueby market areaCentralEurope 22.3%WesternEurope31.2%91%Nordicregion 46.5%Business area’s revenueby product groupOther 3.9%Glass beads 1.2%Road-markingpaint 11.5%Premark ®9.3%Thermoplastic14.1%Contracting60%OperationsGeveko produces some 55,000tonnes of road marking materials peryear and is the market leader withinhorizontal road markings in Europe.Horizontal road markings includetransverse and longitudinal lines,symbols, arrows and words on streets,roads, bicycle tracks, parking spaces,airport runways, and other suchareas of application. Around onethirdof Geveko’s output is used inits own contracting business, whilearound two-thirds are sold to outsideusers. The business is mainlycarried on in Scandinavia and CentralEurope. Geveko’s contracting businessis highly decentralised and operatesunder its own brand names on eachmarket. Cleanosol, Dartom, GiK,LKF Vejmarkering, Magyar Plasti -route, Osfer, Plastiroute, Plastidrum,Roadcare, Superco and Technom areall strong brand names on theirrespective European markets.Magyar Plastiroute manufacturesvertical road signs and othertraffic engineering products for theHungarian market. Vertical roadsigns are also manufactured, in thefirst instance for the Romanianmarket, by a joint-venture companyowned by Geveko’s subsidiaryPlasti drum and the French companySignaux Girod.Within the Intelligent TransportSystems (ITS) segment Gevekodevelops electronically controlledproducts that help to improve roadsafety, such as the Safer@workwarning system, which offers activeprotection to increase safety at roadworks.Allglass, an associated companythat was acquired in 2007, manufacturesglass beads, which are one ofthe most important raw materials inroad marking materials. Geveko’sinterest in Allglass is 50%. The acquisitionwill ensure Geveko’s access toglass beads and will also enable it toinfluence quality by means of itsown research and development inthis area.MarketsNordic countries and Western EuropeThe road marking industry in WesternEurope is highly fragmented andcharacterised by considerable excesscapacity and intensely competitivepricing. The market is estimated tobe worth around SKr 8,000 millionper year. Growth is weak, and severalcompanies on the market have notedpoor profitability. Restructuring ofthe industry is therefore necessary,and this process is underway in theform of acquisitions and mergers.Geveko has a strong position in theNordic region and its main strategyis to maintain its market share whilealso maintaining a close eye onopportunities for expansion via theacquisition of European players.Central and Eastern EuropeThe market for horizontal roadmarking products in Central andEastern Europe is worth about onequarterof the estimated value forWestern Europe, but it is growingfaster. The forces driving growthinclude a real need to improve roadsafety in combination with largeinfrastructure investments. Growth isestimated to amount to 5-10% overthe coming 3-5 years. In recentyears, Geveko has strengthened itsposition on the markets in CentralEurope via the acquisition of roadmarking contractors in Poland, theCzech Republic and Slovakia. In2007 Geveko acquired one Slovakianand three Polish contracting companiesactive in the road-markingsegment.The road-marking products thatare used in these countries mainlyconsist of road paints with a highcontent of solvents that represent ahazard to the environment and tohealth. There is considerable interestin the environmentally friendly roadmarking products produced byGeveko, which meet the perfor -mance requirements that have beenstandard in the Nordic region andWestern Europe.18