Annual report 2011 - Trelleborg

GLOBAL CONDITIONS – THE INDUSTRY
SIZE AND COMPETITIVENESS TO
STRENGTHEN FUTURE POSITIONS
Innovation ensures leadership
Innovation is an important element of Trelleborg’s
strategy and one of the Group’s core values. Trelleborg
has a fi rmly established reputation for innovativeness
and creativity. It secures long-term customer relationships
and loyalty by continuously pioneering development.
The Group creates competitive advantages
through successful innovations. This, in turn, generates
market strength, which provides resources that
can be invested in innovations.
Globalization drives change
Trelleborg is one of the rubber industry’s most international
companies and has benefi ted from the globalization
that has taken place over the past decade.
Increased trade, investments and cross-border establishments
have generated a strong impetus for change
that will continue for many years to come. Being one of
the major players globally provides the resources to grow
and the power to play a part in shaping the development
of the industry.
Strong growth in many
markets and segments
Generally speaking, the industrial rubber industry is
relatively mature and grows roughly at the same rate
as global GDP. In some countries, the growth rate is
signifi cantly higher. New segments and niches emerge
in pace with the economic development of society.
Trelleborg has a tried and tested strategy for positioning
the company in profi table, growth segments, see page
24 for more information.
Industrial rubber companies, breakdown Top 10 global industrial
rubber companies in 2011
Others,
approx. 40%
Top ten,
approx. 30%
Top 11-50, approx. 30%
Total market size is about EUR 60 billion
annually.
18 Annual Report 2011 Trelleborg AB
Synergies generate cost
advantages
Effi ciency and low costs are a necessity. Companies
with a global presence, such as Trelleborg, are at an
advantage because they can manufacture long runs in
cost-effi cient countries, can use their size to exert pressure
when purchasing goods and have the resources to
complete structural changes and acquisitions that can
generate synergies.
Positioning to secure value
reduces risk
Positioning in the best niches is a crucial factor for
success in a market saturated by competition and
under severe pressure from globalization. It requires
global, regional and local market knowledge, strength
in innovation and development, and resources to
enable investments. Trelleborg has long experience
of strategies for growth in profi table niches to achieve
a balanced risk in the Group.
Valuable and critical solutions for
a small portion of the total cost
The requirements that polymer materials can satisfy
far better than any other product – namely sealing,
damping and protecting – continuously grow in pace
with welfare development, more rigorous demands on
product functionality and efforts to reduce environmental
impact. The rubber industry meets an entire
world’s increasing welfare demands for protection,
safety and comfort.
Net Percentage of
sales, company’s total
Company Country
EUR M
net sales
1. Hutchinson France 3,800 100
2. Continental Germany 2,851 11
3. Freudenberg Germany 2,667 49
4. Trelleborg Sweden 2,571 89
5. Bridgestone Japan 2,460 10
6. NOK Japan 2,358 54
7. Tokai Japan 2,283 95
8. Tomkins
9. Cooper Standard
UK 2,206 60
Automotive USA 1,823 100
10. Parker-Hannifi n USA 1,510 20
Total 24,529
Sources: Rubber & Plastics News, Freedonia and Trelleborg June 2011.