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Swissmetal: 2006 sales 68% up year-on-year at CHF 334 million * Preliminary figures prior to completion of audit ** Busch-Jaeger Metallwerk GmbH was consolidated for 11 months (February-December 2006)
2006 also saw the first commercial delivery of CN8, an innovative new product. In this case, the alloy was used to make large-dimension precision pipes for the oil industry (tools for drilling oil). Involvement in this sector opens up a highly interesting market for Swissmetal, and one with considerable growth potential. CN8 is a high-strength alloy which combines first-rate mechanical properties, good corrosion resistance and excellent anti-friction properties, making it suitable for particularly demanding mechanical applications such as slide bearing bushes for the aviation industry or drilling tools for the oil industry.
Avins Industrial Products Inc. in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Warren, New Jersey, USA, whose takeover by Swissmetal was also agreed in the previous year, was likewise not yet consolidated in 2006. In the 2006 financial year, the American trading company lifted its gross sales by 5% to CHF 36.5 million, of which approximately 40% came from the sale of Swissmetal products. The company is planning to bundle its international trading activities under the Avins umbrella brand and intends to round out its core business of producing and distributing its own copper semi-finished goods with products from other companies. Swissmetal will thus be able to provide its customers with an even more comprehensive range of services and products, while gaining access to further growth markets.
In the meantime, parts of the new extrusion press have arrived in Dornach. This represents a significant milestone for Swissmetal. Once installation has been fully completed, the extrusion press will gradually commence operation in the course of 2007. This investment in excess of CHF 25 million is further testimony to the very important position accorded to Switzerland as a production location by the Swissmetal strategy. Swissmetal intends to go on producing its high-quality and world-renowned speciality products at Dornach and Reconvilier in Switzerland in the long term. These production activities will be rounded out by the consolidation of further locations within Europe, the US and Asia, with the aim of reinforcing and expanding Swissmetal's position as a world-leading manufacturer of high-quality products from copper and copper alloys.
Industry activity remained stable as the new year got underway. Furthermore, the restructuring of Swissmetal will dominate much of 2007, with the commissioning of the extrusion press, the launch of an investment in a new foundry, and further industrial and market-side measures on the way to making Swissmetal a growing provider of semi -finished copper products that enjoys sustainable profitability. |
