Road Marking business area / PlastiroutePlastirouteEco-friendly road-marking productsoffer advantages on highly competitive marketsHead office: Müllheim, GermanyMD: Karsten VeltmannTurnover 2007: SKr 124(118) million (excluding associatecompanies)Number of employees: 31 (31)Products: Paints and 2-componentproducts for road marking andaerosols sprays.Markets: Central EuropeCompetitors: Limburger Lack,Basler Lack, Rembrandtin,Signature, Veluvine, Color andTriflex.Share ofbusiness area’s turnover2-componentpaints 40%6%Revenue by productOther 10%Premark ® 1%Glassbeads7%Solventbasedpaints 31%Waterbasedpaints11%Nature of businessWith more than 50 years of experiencefrom the development, manufactureand sale of road-marking products,Plastiroute has an extensive exportbusiness and a strong market positionin Central Europe. Plastiroute GmbH,Germany, is the centre for productdevelopment, production andmarketing. Plastiroute SA, Switzer -land, is the sales organisation forSwitzerland and other export markets.Plastiroute manufactures andmarkets a complete range of waterandsolvent-based road-markingpaints, 2-component systems forhorizontal road marking and anextensive range of marking paints forairports. Plastiroute has no contractroad-marking activities of its own,but participates selectively in tendersin Germany and provides roadmarkingservices in association withpartners. Plastiroute’s own mechanicalequipment is mainly used fortesting new road-marking systems.MarketsThe German market continues to becharacterised by stiff competition,which has put pressure on the pricesof material suppliers. By contrast,growth rates have risen on exportmarkets. Synergies with other companiesin the <strong>Geveko</strong> Group havestrengthened Plastiroute’s positionon most of its markets in Europe.Two-component materials have continuedto sell well, and demand forsolvent-based paints has remainedstable. Despite further intensificationof marketing activities and regularproduct development of water-basedroad-marking systems, the Germanmarket remains unreceptive to ecofriendlyproducts.In Switzerland, on the otherhand, water-based road-markingsystems and 2-component systemshave replaced solvent-based paints,which benefits Plastiroute, which iswell to the fore in eco-friendly roadmarkingproducts and systems.Plastiroute is one of the leadingcompanies on the German market.Plastiroute’s customers primarilyconsist of contractors serving thepublic sector in the federal states inGermany and the cantons inSwitzerland.In recent years the Germaneconomy has been plagued by weakgrowth, whereas the market inSwitzerland has remained buoyant.Despite fierce price competition,Plastiroute has maintained its marketposition in Germany and strengthenedits position in Switzerland.On both the German and the Swissmarkets there are numerous suppliers,both large and small, among themLimburger Lack, Basler Lack,Rembrandtin and Triflex.Exports to Central Europe aregrowing steadily, and in 2007 theyaccounted for 50% of Plastiroute’sturnover. Plastiroute’s aim is to furtherstrengthen its position inHungary, Romania, the CzechRepublic, Poland and Turkey. Inseveral of these countries Plastirouteoperates in association with its associatecompany Cleanosol. In WesternEurope the markets in the Nether -lands, Belgium and France are ofparticular interest. In these countriesinterest in 2- and 3-componentpaints in particular is growing.Outlook for 2008The German market will remaintight on account of public spendingconstraints and excess capacity forproduct systems as well as amongroad-marking contractors. Contrac -tors are generally in a weak positionand the market is dominated by twolarge groups of companies. In 2007the leading company on the Germanmarket for road-marking productsacquired the largest German roadmarkingcontractor. This was the firsttime that a manufacturer becameshareholder in a large contractor.Plastiroute is ready to deal with theconsequences of this acquisition.Plastiroute intends to continue toparticipate in tenders in 2008 as ameans of enabling it to sell in itsnew product systems on the marketthereby avoiding becoming dependenton major customers.30
Road Marking business area / PlastiroutePlastiroute manufactures a comprehensive range of water-based and solvent-based road-marking paints as well as a complete range ofpaints for marking airport runways and taxiways. Plastiroute applied markings at Sofia airport in Bulgaria.In recent years, the Swiss sales companyhas strengthened its salesresources, which has resulted inencouraging market developments.Plastiroute will continue to extend itssales on new markets in Europe bystepping up its marketing and salesactivities. In 2007, Plastiroute benefitedfrom the cost and efficiencyprogramme that was launched in2006 and will continue with the programmewith the aim of becomingmarket leader in terms of costs.Product tests will be carried outwith the object of obtaining approvalfor Plastiroute’s road-marking systemson key markets. The patentedAquaflex TM Intermix road-markingsystem, which was launched in 2005,has aroused great interest both inGermany and on other markets. Thesystem, which provides high functionalityand visibility in dark andwet conditions as well as greater costefficiency for contractors, will begiven further marketing support in2008. The paint used for markings atairports will be tested in accordancewith the specific requirements of airportsand obtain certification fromindependent laboratories.Plastiroute will take active stepsto increase sales of its road-markingsystems based on 2-componentmaterials. Marketing activities forwater-based systems will continue inassociation with suppliers of bindingagents.A new 2-component paint,based on an epoxy binding agent,was developed in 2006 and launchedin 2007. This type of paint is used onroad surfaces where chemical impact(e.g. pryoligneous acid or petrol)requires high quality. The materialalso functions as the base for anumber of different indoor-markingproducts that were developed in 2007together with a new water-basedbase paint that improves the performanceof the marking material onnew surfaces or on coated surfaces inproduction workshops or storagepremises.Future prospectsPlastiroute provides high quality,eco-friendly road-marking productsthat already satisfy the latest EUrules. The need for improved functionalityand for road markings tobe visible in the dark and on wetsurfaces are still main focus areas.Plastiroute already has a comprehensiverange of products that satisfythese requirements, which will in thelonger range benefit the company.31