AnnuAl RepoRt 2010
AnnuAl RepoRt 2010
AnnuAl RepoRt 2010
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electrotechnIcs<br />
<strong>2010</strong> was a challenging year for the<br />
Electrotechnics Division. The major<br />
customers for low voltage die compacted<br />
contact tips saw a strong order<br />
book for photovoltaic applications;<br />
for many part numbers a doubling of<br />
the order book was seen. This rapid<br />
increase led to long lead times as<br />
stocks had been run down during<br />
2009. The complex integration of the<br />
German plant closed during 2009<br />
exacerbated production problems.<br />
Close customer interface and tight<br />
deliveries over the 2 nd and 3 rd quarters<br />
largely resolved bottlenecks. The<br />
North American operations acquired<br />
in January have been well integrated<br />
from an administrative standpoint and<br />
medium term production optimization<br />
plans are being developed. The<br />
Chinese assembly plant in Suzhou<br />
saw a near tripling of orders in <strong>2010</strong><br />
and is capacity restricted.<br />
prospects For the Future<br />
Most industry analysis predicts continued<br />
high precious metal prices due<br />
to investor sentiment towards risk<br />
and industrial demand for silver and<br />
platinum group metals. Base metal<br />
prices will reach new highs driven<br />
in part by Chinese demand and falling<br />
primary production. US monetary<br />
policy will continue USD weakness<br />
and an unbalanced world economy<br />
will continue to pressure China to<br />
appreciate the RMB. Inflation will be<br />
an issue in many parts of the world in<br />
particular China. The banking sector<br />
with the Basel 3 convention will see<br />
continued evolution. We expect some<br />
of our banking partners to rethink the<br />
precious metals sector and others<br />
to enter this market. On balance, we<br />
expect our banking partners to support<br />
the expansion programs underway.<br />
With the recovery of our revenue<br />
base, we are now focused on the<br />
three global Divisions and their growth<br />
strategies. A number of acquisition<br />
targets have been identified and<br />
several due diligence programs are<br />
underway. On February 17, 2011<br />
Metalor announced it had signed an<br />
agreement to acquire the Japan based<br />
Coatings Division of NE Chemcat, and<br />
the deal will complete during the first<br />
half of 2011.<br />
The Board of Directors and the<br />
Management would like to take this<br />
opportunity to thank the employees for<br />
all their hard work during the recovery<br />
period and shareholder transition. We<br />
appreciate all of our clients and their<br />
loyalty to Metalor during <strong>2010</strong>. We are<br />
also grateful for the continued strong<br />
support of our banking partners in a<br />
volatile period.<br />
Best Wishes for a successful 2011<br />
Joël Lacourte<br />
Chairman of the Board of Directors<br />
Dr. Scott Morrison<br />
Chief Executive Officer<br />
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