3/1/2013

Focus on PVC Specialities

Although performance fell short of the sales and earnings targets for 2012, important groundwork has been laid for the future with a sharpened focus on PVC specialties and substantial investments in this area.

Business Development 2012

Business on the European PVC market declined for the second year in succession in 2012. Demand was even lower than during the crisis year 2009, a consequence above all of the continuing slump in the European construction industry. The economy in the growth regions outside of Europe cooled off as well. Although the market is problematic, Vinnolit held its market shares and posted successes with PVC specialities on important export markets such as Brazil, China, and Turkey. Cooperation was established with the new distributor Dunwa Chemicals in China in 2012, substantially enhancing Vinnolit’s presence on the Chinese PVC market. Another cause for satisfaction was the high demand for thermoplastic specialties.

Nevertheless, the sales targets for PVC were not met because of the unfavourable market conditions. Sales of caustic soda rose slightly in comparison with the previous year. Turnover in 2012 at €905m was slightly below the level of the previous year. As a whole, fiscal year 2012 represented a substantial shortfall in comparison with the highly successful previous year.

Outlook 2013

Markets for PVC specialties offer significantly better opportunities for growth than can be found for standard PVC, so Vinnolit will continue to focus its strategy on specialty products, looking above all to the up and coming markets of Russia, Turkey, Brazil, India and China.

As worldwide demand will be rising in the middle term, Vinnolit will gradually expand capacities for PVC specialties in the coming years so that it will be prepared to handle the needs of the markets. The project for the expansion of the paste capacity at the Burghausen site was completed in 2012. Its operation has strengthened Vinnolit’s leading market position for PVC specialties even further.

The further development of the PVC market in 2013 will depend on general economic developments and continue to be uncertain. Important risk factors are the developments on the financial markets and the possible further cooling-off of the world economy.


Investments

In 2012, investments at Vinnolit amounted to about €25m, especially for the modernisation of production lines, safety and environmental protection. One important project was the expansion of the production facility for paste PVC in Burghausen, the largest of its kind in the world. Investments of another €25m are budgeted for 2013.

Thanks to the many ideas submitted by Vinnolit employees within the framework of the project VinSavE (Vinnolit Saves Energy), Vinnolit Group will continue to realise improvements in its energy efficiency in the coming years, limiting energy costs and protecting the climate. Nevertheless, substantial sums will still be required in this area and will be invested over the course of the coming years. In comparison with base year 2008, energy consumption per tonne of PVC produced was lowered by about 4% by 2012. In February, 2012, the Vinnolit energy management system was certified in accordance with the international standard DIN EN ISO 50001.


Editorial:
Dr Oliver Mieden, Head of Environmental Affairs & Corporate Communications
Vinnolit GmbH & Co. KG, Carl-Zeiss-Ring 25, 85737 Ismaning, Germany
Phone: +49 89 96103-240, Fax: -122, E-mail: oliver.mieden@vinnolit.com

Andrea Walter, Public Relations Officer
Vinnolit GmbH & Co. KG, Carl-Zeiss-Ring 25, 85737 Ismaning, Germany
Phone: +49 89 96103-240, Fax: -122, E-mail: andrea.walter@vinnolit.com