Registration document 2007 - Total.com

Specialties
TOTAL’s Specialties sector includes rubber processing
(Hutchinson), resins (Cray Valley, Sartomer and Cook Composites
& Polymers), adhesives (Bostik) and electroplating (Atotech). The
sector serves consumer and industrial markets for which
customer-oriented marketing and service as well as innovation
are key drivers. The Group markets specialty products in more
than 55 countries. Its strategy is to continue its international
expansion by combining internal growth and targeted
acquisitions while concentrating on growing markets and
focusing on the distribution of new products with high added
value.
In 2006, the Specialties sector benefited from a generally
favorable environment and particularly from stronger demand in
Europe. In 2006, sales reached 7.10 B€, an increase by nearly
9% compared to 2005, after increasing by 8% in 2005 compared
to 2004. The adjusted net operating income from the Specialties
sector increased by 10% in 2006 compared to 2005, after
increasing by 14% in 2005 compared to 2004.
Rubber processing
Hutchinson manufactures and markets products derived from
rubber processing for the automotive and aerospace industries
as well as for consumer markets.
Sales increased by approximately 5% in 2006 compared to
2005, after increasing by approximately 4% in 2005 compared to
2004. In 2006, the automotive industry sales increased by 4%
compared to 2005 despite a difficult environment in Europe and
in the United States. In 2006, sales from the industrial division
increased by approximately 10% compared to 2005, weaker
demand from the defense industry in the United States was
offset by growth from other segments. Sales from the consumer
goods sector increased by approximately 2% due to higher
consumer demand in Europe.
Early in 2006, Hutchinson strengthened its industrial division by
acquiring the French company Jehier, a manufacturer of various
insulating components for the aerospace and defense industries.
Throughout 2006, Hutchinson continued to develop in growing
markets such as Central and Eastern Europe, South America and
China.
Resins
TOTAL produces and markets resins for adhesives, inks, paints,
coatings and structural materials through its three subsidiaries
Cray Valley, Sartomer and Cook Composites & Polymers.
In 2006, TOTAL’s resins activities improved its results, benefiting
from the favorable environment. Sales grew by approximately 8%
in 2006 compared to 2005, after increasing by 13% in 2005
compared to 2004.
In 2006, Cray-Valley decided to de-bottleneck its tackifying resins
plant in Beaumont, Texas, United States, acquired in 2005.
Sartomer started the expansion of its photocure plant in Villers-
Saint-Paul, France and pursued the construction of a new
monomers and oligomers plant near Guangzhou, China. Cray-
Valley pursued the streamlining of its resin coatings production in
Europe and closed its plant in Tönisworth (Germany), whose
production is being transferred to other Cray-Valley plants in
Zwickau (Germany) and Boretto (Italy).
Adhesives
Business overview
Specialties
2
TOTAL’s adhesives subsidiary, Bostik, is one of the worldwide
leaders in its sector, based on sales, with leading positions in the
industrial, hygiene, construction and consumer and professional
distribution markets.
In 2006, sales increased by 15% compared to 2005, after
increasing by 6% in 2005 compared to 2004. The increase in
sales recorded in 2006 stems partly from acquisitions made in
the second half of 2005 and early in 2006, and partly from
healthy global economic conditions. The activity was sustained in
the Asia-Pacific zone, remained well oriented in the United States
and improved significantly in Europe. Nevertheless, margins were
negatively affected by the increase in the prices of raw materials.
In 2006, Bostik strengthened its position in the construction and
distribution segments by acquiring Sealocrete and Wetherby (UK)
and Paso (Germany). Bostik also acquired Pegaso (Mexico) in the
industrial segment and the laminated adhesives activities of Du
Pont in Germany, as well as purchasing the minority
shareholders’ shares of ASA (Australia).
TOTAL – Registration Document 2006 53