Atlas Copco 2008 – tough ending to a record year Annual Report ...

administration reportThe Compressor Technique business area consists ofseven divisions in the following product areas: industrialcompressors, compressed air treatment products,portable compressors, generators, gas and processcompressors, service, and specialty rental.Business area managementOn February 2, 2009Business Area President: Ronnie Leten*Compressor Technique’s divisions are:• Oil-free Air, President Chris Lybaert• Industrial Air, President Ray Löfgren• Specialty Rental, President Horst Wasel• Portable Air, President Geert Follens• Gas and Process, President André Schmitz• Airtec, President Filip Vandenberghe• Compressor Technique Service, President Nico DelvauxRonnie Leten* Chris Lybaert Ray Löfgren Horst WaselGeert Follens André Schmitz Filip Vandenberghe Nico Delvaux* President and CEO of Atlas Copco AB from June 1, 2009Already in 2006, Atlas Copco set a new standard for compressedair purity when a range of oil-free compressors became the first inthe world to get the new ISO certification “Class 0”, assuring100% oil-free air. During 2008, a high-pressure Atlas Copco compressorrange, mainly used in the manufacturing of PET bottles,was certified with the “Class 0” standard.The portable compressor range was updated with two seriesof compressors featuring reduced canopy size and lighter weight.The compressors, offered to customers within the rental and constructionindustries, meet the latest exhaust emission and noisedirectives for off-highway vehicles.The operationsThe Compressor Technique business area develops, manufactures,markets, distributes, and services oil-free and oil-injected stationaryair compressors, portable air compressors, oil and gas boosters,gas and process compressors, turbo expanders, generators, airtreatment equipment (such as compressed air dryers, coolers, andfilters) and air management systems. The business area hasin-house resources for basic development of its core technologies.In addition, the business area offers specialty rental services ofmainly compressors and generators. Development, manufacturing,and assembly are concentrated in Belgium, with other unitssituated in Brazil, China, Czech Republic, France, Germany,India, Italy, New Zealand, Switzerland, and the United States.Vision and strategyThe vision is to be First in Mind—First in Choice® as a supplierof compressed air solutions, by being interactive, committed, andinnovative and offering customers the best value. The strategy isto further develop its leading position in the field of compressedair and grow the business profitably by capitalizing on its strongmarket presence worldwide, improving market penetration inAsia, North America, the Middle East, and Eastern Europe, andcontinuously developing improved products and solutions to satisfydemands from customers. The local presence is furtherenhanced by establishing the multibrand concept in more markets.The strategy encompasses giving a continuous focus to theaftermarket business as well as developing businesses withinfocused segments such as compressed and liquid natural gas, airtreatment equipment, and compressor solutions for trains, ships,and hospitals. The ambition is to continue to grow the aftermarketbusiness, to further strengthen the position in the specialtyrental business, to develop new businesses – such as low-pressureblowers, high-pressure natural gas and air compressors, and nitrogencompressors. Growth should primarily be organic, supportedby selective acquisitions.Strategic activities• Increase market coverage and invest in people in sales, serviceand support• Establish presence in new markets• Develop new products and solutions offering better value tocustomers• Extend the product offering, including new compressors, airtreatment equipment and services• Extend the offering, development, and marketing of aftermarketproducts and services• Focus through a specialist organization, providing uniformservice in all marketsThe marketThe global market for compressed air equipment and relatedaftermarket products and services is characterized by a diversifiedcustomer base. The products are used in a wide spectrum of applicationsin which compressed air is either used as a source ofpower, mainly in the manufacturing and construction industries,or as an integrated part of the industrial processes – active air. Animportant customer segment is assembly operations, where compressedair is used to power assembly tools. In industrial processes,clean, dry and oil-free air is needed for applications where thecompressed air comes into direct contact with the end product(e.g., in the food, pharmaceutical, electronics, and textile industries).Apart from the process and manufacturing industries,industrial compressors are used in applications as diversified assnow making, fish farming, on high-speed trains, and in hospitals.26 Atlas Copco 2008