Annual Report 2011 - Analist.be

Overview of the activities - ImerysMinerals for Ceramics, Refractories,Abrasives & Foundries(32% of group turnover in 2011)Demand for Refractories, Abrasives &Foundries was sustained overall, inspite of a growth deceleration in steelproduction during the second half ofthe year in China and Europe, partiallycompensated by an improvement inNorth America.Demand in Minerals for Ceramicsremained strong, sustained by thedynamism of emerging countries.Imerys increased capital spendingwith a USD 60 million investment in itsnew ceramic proppants plant (capacityof over 100,000 tonnes) based inAndersonville (Georgia, United States).Performance & Filtration Minerals(19% of group turnover in 2011)Markets for consumer staples andintermediate industries were driven bydynamic growth in emerging countries.On the other hand, the constructionmarket fared less well, improving onlyslightly in certain European countriesand remaining stable at a low activitylevel in the United States. The marketsserved by the talc business stood upwell overall.Investments continued to inversecompared to the previous year, witha focus on the development of newproducts and geographical expansion.Pigments for Paper & Packaging(21% of group turnover in 2011)In 2011, global paper production wascomparable to its level of 2010, withgrowth in emerging countries (+ 6%)compensating for an erosion in maturemarkets (- 4%). The Packaging segmentis still expanding and the branchallocates considerable meansto increasing its product offering andsales in the sector.Investments, up slightly over theprevious year, mainly concernedthe streamlining of Brazilian plantsfollowing PPSA’s acquisition and thereconstruction of the Miyagi Japaneseplant damaged by the tsunami.Materials & Monolithics(28% of group turnover in 2011)In France, new housing starts increasedby 10% and the renovation activityremained solid. In this context, volumesof clay products increased by 9.4%and 19% for roof tiles and bricks,respectively.Monolithic Refractories were drivenby the dynamism of the global steelmarket and internal development ofrefractory solutions for new plantsprojects. Investments by this branchfocused primarily on the maintenanceof industrial assets and the improvementof its energy efficiency.OutlookThe macro-economic environment hasbeen more uncertain since the endof last summer; visibility is reduced in2012 even though activity remainedsatisfactory in the early part of the year.Therefore, the group remains wary:it will invest selectively, with a focus ongrowth projects and fast paybacks,strict management of working capital,expenditures, variable costs evolutionand price/mix.In these circumstances, Imerys willcontinue its development strategy basedon the acceleration of organic growth –through innovation and expansion ofits portfolio in growth markets andgeographics – and on a selectiveacquisition policy.48 Annual Report 2011