Business activity and strategy

The Adhesive Technologies business sector comprises five market- and customer-focused strategic business units. The shared use of structures, systems and technologies creates a strong base for exploiting synergies – in administration and materials management, for example – as well as for generating innovation potential across the business sector.

In the Adhesives for Consumers, Craftsmen and Building business, we market a wide range of brandname products for private and professional users. Based on our four international brand platforms, namely Loctite, Pritt, Pattex and Ceresit, we offer target group-aligned system solutions for applications in the household, schools and offices, for do-it-yourselfers and craftsmen, and also for the building industry.

Our Transport and Metal business serves major international customers in the automotive and metal-processing industries, offering tailored system solutions and specialized technical services that cover the entire value chain from steel strip coating to final vehicle assembly.

In the General Industry business, our customers comprise manufacturers from a multitude of industries, ranging from household appliance producers to the wind power industry. Our product portfolio here encompasses Loctite products for industrial maintenance, repair and overhaul, as well as a wide range of sealants and system solutions for surface treatment applications, and specialty adhesives. Through our high-quality solutions, we help our customers strengthen their own competitiveness.

The Packaging, Consumer Goods and Construction Adhesives business serves major international customers as well as medium- and small-sized manufacturers of the consumer goods and packaging industries. Our economies of scale allow us to offer attractive solutions for standard and volume applications. At the same time, our global technical customer service offers innovative product ideas and technical advice, enabling our customers to become more efficient and achieve more with less material input, and to benefit from the innovative strength of our business units.

Our Electronics business offers customers in the worldwide electronics industry a technology-spanning portfolio of innovative high-technology adhesives for the manufacture of electrical systems and semiconductor units. Continuously high investments in research and development and close cooperation with our customers help in developing solutions for future product generations.

The strategy of this business sector aims at being the preferred partner for our customers and offering them lasting competitive advantages through pronounced product and solution expertise and a global range of products. Active portfolio management is a key element in the design of our differentiated range of products and services. This includes targeted investments in profitable emerging markets and segments where we can build on existing strengths. In addition to investing in organic growth, we take advantage of selected acquisition opportunities to further develop our business. One example of this is the acquisition of the specialty high-performance pressure sensitive adhesives business, particularly for films and foils, from Cytec Industries Inc., USA, in 2012.

We are driving the globalization of our business by accelerating the expansion of our strong positions in emerging markets. Our focus in North America and Europe centers primarily on utilizing economies of scale together with established synergy structures, and on strengthening our leading market position. We are continuously increasing our innovation rate by systematically exploiting the technological application and development potential offered by megatrends. In 2012, we generated 32 percent of our sales from products successfully launched onto the market in the last five years. We are also supporting our innovative strength by further expanding our regional application centers where our specialists test, validate and demonstrate innovative products and solutions with our customers.

In order to offer industrial customers across all of our business areas an easier, systematic view of our entire product portfolio, we will divide our industrial business into five technology cluster brands in the future: Loctite, Bonderite, Technomelt, Teroson and Aquence. Each of these brands represents a group of specific technologies and applications. In the consumer business, we are further strengthening our four existing brand platforms: Loctite, Pritt, Pattex and Ceresit. Our top ten brands generated 57 percent of our total sales in 2012.

The business areas reach more than 100,000 direct customers of widely varying sizes in a large number of markets and market segments. Our superior chemical engineering and market-related expertise coupled with our global presence allows us to offer a differentiated range of products and services around the world for the benefit of our customers. We are continuing to expand our customer-oriented range of integrated solution systems. An example of this is our partnership with Nordson Corporation, a leading producer of precision dispensing equipment for adhesives in the USA. Together, we are developing new applications for the global packaging industry. We will further reduce the complexity of our business processes by introducing a new, globally harmonized information technology system, which includes, for example, a globally standardized model for optimal customer service.

32 %innovation rate.