Umicore in Greater China

Umicore in
Greater China
Klaus Ostgathe
Senior Vice-President
General Manager,
Umicore Greater China Region
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Umicore in Greater China
Umicore’s Chinese name is “优美科”
优 (“U”) implies 优质为本, means “excellence
or best quality as the principle”.
美 (“Mei”) implies 美化生活, means “to beautify
life”, as “materials for a better life”
科 (‘‘Ke”) implies 科技创新, means
“technological innovation”.
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Umicore in Greater China
Currently, some 3,100 people work for Umicore in Greater China in:
13 industrial operations
6 commercial offices
1 Greater China regional headquarter
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Umicore in Greater China
160
140
120
100
80
60
40
20
0
Accumulated Investments Headcount
Million USD Employees
96 98 00 02 04 06
3,200
2,800
2,400
2,000
1,600
1,200
800
400
0
96 02 03 04 05 06
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Activities in Greater China
Electro-Optic Materials
Engineered Metal Powders
Specialty Oxides & Chemicals
Zinc Alloys & Chemicals
Jewellery & Electroplating
Precious Metals Chemistry
Thin Film Products
Automotive Catalysts
Technical Materials
Element Six Abrasives
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Export
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Domestic
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Activities in Greater China
Beijing
Hong Kong
Shanghai
Taiwan
Umicore
JVs
Offices
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Umicore Marketing Services (UMS)
UMS Marketing and Services are fully owned subsidiaries (100% Umicore)
UMS (Hong Kong) 1982
UMS Taiwan 1989
UMS China 1996
• UMS SH Co., Ltd 1996 (Trading Company; Located
in WGQ FTZ)
• Shanghai 1996 (Branch Office)
• Beijing 1996 (Branch Office)
• Guangzhou 1996 (Branch Office)
UMS has 22-year history in China
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1995: Umicore Shanghai Co., Ltd. ,
(Songjiang)
75-25 % JV between Umicore
and Jiuling (CNNC Shanghai).
Cobalt powder production for
hard metals and diamond tools
Number 1 in China
Zinc powder production for
primary battery applications
Number 1 in China
Successful industrial JV with a state-owned company
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2002: Umicore Hunan Fuhong Zinc
Chemicals Co., Ltd. (Changsha)
Wholly owned foreign
(Taiwanese) company
purchased by Umicore.
Production of Fine zinc
powder for anti-corrosive
paint and chemicals
applications.
Number 1 in China
Number 1 in China
Successful market consolidation through a 100 %
acquisition of a Wholly Owned Foreign Enterprise
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2002: Umicore Materials Taiwan Co.,
Ltd. (Hsinchu)
Wholly owned foreign
(Taiwanese) company
purchased by Umicore.
Sales office and Bond Shop
for thin film products
(sputtering targets)
Successful market consolidation through a 100 %
acquisition of a Wholly Owned Foreign Enterprise
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2003: Ganzhou Yi Hao Umicore
(Ganzhou)
Since ‘98 long term agreement
between Umicore and Daxing (Yi
Hao). Successful partnership
resulted in JV.
40%-60% JV between Umicore
and Yi Hao, a local private
enterprise in Ganzhou.
Cobalt salts for supply to Umicore
plants and for sales to a world
wide customer base
Number 1 in China
Successful vertical integration with a private owned
local manufacturer (minority Joint Venture)
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2003: Umicore Autocat (China) Co.,
Ltd. (Suzhou)
Automotive catalyst
production mainly for
domestic market
Leading market share
3 global competitors for
automotive catalysts are in
China
Operations start in August 2005. 100% owned
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2004: Jiangmen Chancsun Umicore,
(Jiangmen)
40 - 60 % JV between Umicore
and JCCC
Production of different grades of
Nickel Hydroxide for Nickel-
Cadmium and Nickel Metal
Hydride rechargeable batteries.
Number 1 in China
Successful transfer of activities / know-how from
Umicore (Canada) to the JV (minority)
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2005: Element Six Industrial
Diamonds Ltd (Suzhou)
Manufacturer of industrial
diamond grits for world
markets in sawing, polishing
and grinding applications.
New site brought into
production in less that one
year using Chinese
production technology.
Potential to expand if first
phase successful.
Start of operations February 2006 (Umicore holds 40%
stake in Element Six Abrasives)
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2005: Föhl (China) Co., Ltd., (Tai Cang)
50 - 50% JV between
Umicore and Föhl GmbH
(Germany)
Production of zinc die
casting parts for
automotive, electronic and
building applications.
High-tech niche player in fast growing market. WOFE JV
(50:50)
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2006: Umicore Technical Materials
Co., Ltd., (Suzhou)
Leading contact materials
producer in China
Production of preciousmetals-containing
contact
material for low and
medium voltage
applications in electrical
and relay industries
Silver tin oxide containing
contact materials for hightech
applications
Successful market consolidation through a 100 %
acquisition of a privately owned local manufacturer
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2006: Umicore Technical Materials
Co., Ltd., (Yangzhong)
Leading brazing alloys
producer in China
Production of brazing alloys
for pastes and fluxes for
metal joining applications.
Successful market consolidation through a 100 %
acquisition of a privately owned local manufacturer
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2006: Umicore Yunnan Zinc Alloys
Co., Ltd., (Kunming)
60 - 40 % JV between
Umicore and YN Copper
Group.
Transformation of the JV
from a 100% base zinc
smelter into a 100%
producer of zinc specialty
alloys for die-casting and
general galvanizing
segments.
Industrial JV with a state-owned company
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Pending investments (2006)
60% JV for germanium refining in Dongchuan. Greenfield plant
expected to be operational Q1 2007
80% JV for manufacturing optical coating materials (Beijing Jubo
Photoelectric Technology Co.); Expected to be operational end
2006
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Umicore Greater China (RHQ)
(Shanghai)
Management company; Fully owned subsidiary (100% Umicore)
Platform for M&A transactions
Platform for Management services
• Finance and Cash Pooling
• HR Management
• Purchasing Setup
• Legal
• Consulting
Start of Operation, July 2005
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