€190 millionin saleswith more than 1,000product formulationsin 58countries40 minesand plantsin 12countriesBentoniteS&B’s worldwidenetwork of bentoniteprocessing facilitiesguarantees customerproximity28 S&B Industrial Minerals S.A.
<strong>2010</strong> Bentonite Salesby Segment<strong>2010</strong> Bentonite Salesby Geographical AreaFoundry 53%Iron OrePelletising 14%WesternEurope 72%Drilling 9%CivilEngineering 12%Pet Litter Absorbents 6%Specialty applications 6%Other 3%EasternEurope 6%NorthAmerica 19%The economic environmentimproved significantly during<strong>2010</strong>, and this had a positiveeffect on almost all the marketsegments served by the BentoniteDivision. For some segments in particular,such as foundry and iron-orepelletizing, business activity outpacedanticipated levels, requiringa swift reaction on our part in orderto satisfy the quickly reboundingdemand. Overall, the Division’sturnover reached €190.4 million,representing an increase of 23.9%over 2009. While not back to precrisislevels, our revenue performancewas profitable, as EBITDAincreased by 52.1% compared to2009, reaching €49.9 million.The global foundry industry, which isdirectly linked to the automotive sector,picked up considerably in <strong>2010</strong>.Foundry is the largest segment notonly of the division but of the Groupas well. Foundry revenue increasedsubstantially with German andFrench foundries enjoying thestrongest growth. In Europe, passengercar output remained stable,but production of light and heavy utilityvehicles increased significantly.This came as a result of the exportledrecovery in northern Europe (Germanyin particular), which wasfavored by a weaker euro on averageduring <strong>2010</strong>. In the U.S., the metalcastingindustry experienced a moderateupswing in production outputof nearly 10% compared to the previousyear, enabling us to drive revenuegrowth in U.S. foundries. Inparallel with responding to the recoveringdemand from traditionallyestablished geographies, we continuedto invest in foundry operations inhigher growth areas. Aiming at introducingEuropean technology standardsto Eastern Mediterraneanfoundries and establishing a strongermarket presence, we extended ouroperational capabilities in Turkeythrough the addition of a new blendingunit in <strong>2010</strong>.Global steel production, which isthe demand driver for iron-ore pellets,had a record year in <strong>2010</strong>,mainly attributed to double digitgrowth in Europe and North America,as well as in the Middle East.Hence, bentonite requirements foriron-ore pelletizing recoveredstrongly and swiftly.In the drilling segment, the upturn inOil and Gas production in the NorthSea had a positive impact on bentoniteand baryte demand for drillingfluids. We leveraged our strong positionin this segment through ourDutch joint-venture CEBO, which in<strong>2010</strong> extended its activities into theNorwegian oilfield market throughnew long-term contracts. In addition,the investment in new transportationmeans will support thedistribution of drilling materials tovarious customers around the NorthSea region. Furthermore, a new liquidmud plant in the northern part ofthe Netherlands was completed.Demand from the paper and cardboardsegment also recovered during<strong>2010</strong>, mainly due to the increaseddemand for packaging of goods. Asa result, the industry segment expandedby approximately 10% comparedto 2009.In Civil Engineering applications, thetrend up to the end of 2009 was relativelystrong. However, during <strong>2010</strong>,Civil Engineering and infrastructurerelatedprojects in particular, weresubdued, mainly as a result of the crisisthat extended to Eastern Europeanand CIS countries and thedeceleration in government stimulusprograms. The impact of these developmentshad an adverse effect onthe division’s sales to this segment.The pet litter market continued tobe weak in <strong>2010</strong>, driven by consumerpreference for price bargainsin private labels. Our efforts restedin promoting high value brandedproducts through close collaborationwith key customers.In the environmental segment, anew cooperation was establishedtogether with Adventus IntellectualProperty Inc., Canada. We formedAdventus Europe GmbH, in Germany,to provide in-situ bioremediationfor groundwater and soil,extending the know-how and servicecapabilities of the Bentonite Divisionin civil and environmentalengineering.Looking ahead, we will remain focusedon further strengthening anddiversifying our product portfolioand we will explore and invest in innovativeand eco-efficient industrialsolutions. In parallel, we will pursueprospects for regional or organicgrowth that build on our existingleadership positions.in € million2071901544750332008 2009 <strong>2010</strong>Sales EBITDA<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>29
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