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Pulp and Performance Chemicals

Volumes for most product lines started slowly, but recovered substantially in all areas in the second half of the year The Bleaching Chemicals business saw somewhat lower volumes in North America, but this was offset by growing volumes in South America, while Europe was slightly higher than 2012 and Asia was stable Colloidal Silica continued its growth in high added value and differentiated segments, while Expancel, our expandable microspheres business, grew its revenue according to plan versus 2012. Paper Chemicals saw some volume pressure, but was able to increase its margins The Jupiá Chemical Island in Três Lagoas, Brazil, was inaugurated and a new Expancel [...]

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How Specialty Chemicals creates value

We are a major producer of specialty chemicals, supplying key products to business to business customers in all four of our end-user segments. We utilize inherently high energy processes and focus strongly on reducing carbon footprint and energy use, while saving costs in our own operations. Developing close relationships with our customers – and helping them to create value – is key to our ongoing success, along with efficient processes, an increased focus on eco-premium solutions and renewable energy and a high level of innovation. Input Our organization Output Energy Total energy use 92,000 TJ We continue to improve efficiency by reducing our energy use per [...]

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Market overview

End-user segment strategy context We supply specialty chemicals to all four of our end-user segments, based largely (80 percent of our revenues) on five main value chain platforms. These platforms are: salt/chlorine, surfactants, ethylene oxide, bleaching chemicals and organic peroxides. The outlook for the end-user segment relevant for our value chain platforms is described as follows. Industrial Accounting for nearly 60 percent of revenues, the Industrial end-user segment is by far the largest for our Specialty Chemicals Business Area. All five of our platforms supply this end-user segment, with our main revenue streams coming from: Sales from our surfactant and [...]

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How Performance Coatings creates value

Our Performance Coatings businesses are focused on all four of our end-user segments. Supplying high performance products and cutting-edge technologies primarily to business to business customers, we are increasingly incorporating low energy processes and working to reduce our carbon impact across the value chain. Innovation is also key to our cutting-edge product development, which is often highly technical in order to meet strict customer specifications. Particular emphasis is placed on supplying products that offer environmental benefits for our customers. Input Our organization Output Energy Total energy use 5,000 TJ We continue to improve efficiency by [...]

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Consumer Goods

This end-user segment covers durables such as consumer electronics, furniture and domestic appliances, as well as food and beverage, personal care and cleaning products. At 16 percent of revenue, it is one of our two smaller segments, to which we sell both coatings and chemicals. Trends There is a shift from mature to high growth regions. In some sectors (consumer electronics and domestic appliances), this has been so dramatic that production in high growth regions now outstrips the mature economies. In other sectors (furniture, food and beverage, personal care), while growth in production and demand is higher in high growth areas, the main global production base [...]

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Driving improvements for customers

Primers play an essential role in a wide variety of different coating applications, especially when striving for the perfect finish on a multi-layer coating system. This is particularly relevant in the automotive industry, where environmental considerations and cost efficiency are just as important as product quality. Our Powder Coatings business has long been a major supplier of products used on vehicles produced by many of the world’s biggest auto manufacturers, all of whom have strict specifications and are continually looking to make improvements in all parts of the production process. In an effort to help our customers increase productivity and cut energy [...]

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Strategy and targets

[...] our future hinges on our ability to do radically more while using less. So in order to secure our own business success – and that of our customers – we have to create more value from fewer resources. Some people think the planet won’t be able to support nine billion people by 2050. But we do. Which is why we’ve adopted a sustainability approach geared towards accelerating the pace of our commitment. We are looking to proactively engage with partners who fully support our Planet Possible strategy and want to better understand the changes that will be required in our market segments in order to open up infinite possibilities in a finite world. Because at [...]

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Strategy

This section provides an overview of our strategic priorities and gives details of the targets to which we aspire. You will also find the Chairman’s statement and learn about how we manage operational risks. Chairman’s statement Our businesses End-user segments Strategy and targets Risk management

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Note 4: Products and solutions

[...] In due course, these improvements will begin to impact the sustainable development of the market segments in which we operate. Our 2020 target is to achieve 20 percent of revenue from products and services which provide customers and consumers in our downstream value chain with a significant sustainability advantage, compared with the most commonly available equivalent commercial products or industrial processes. This is in addition to our target of increasing revenue share from eco-premium solutions (with benefits at any stage of the value chain) to 30 percent by 2015. Both are challenging goals because the assessments are made against equivalent mainstream or [...]

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