Oct 30 2007
Since the last "K" exhibition, the Coperion Group has gone through the most successful phase of its still young history. This applies to all three areas of Coperion's activity – Compounding systems, Bulk materials plants and components as well as Global Service. This success is clearly reflected in Coperion's incoming orders and turnover: the incoming orders of the Coperion Group will have doubled from € 300 million in 2004 (not counting Buss AG, which left the Coperion Group at the beginning of 2006) to an estimated € 600 million by the end of this year. The turnover will have risen by almost the same extent: from € 280 million in 2004 to the target of € 500 million by the end of 2007, perhaps even higher.
With its average growth of around 25% per year during the last three years, the Coperion Group clearly and sustainably rates above average, not only in the plastics industry but also in the much larger general mechanical engineering industry.
Going by the continuing rise in incoming orders, a healthy double-figure increase in turnover is also expected for the business year of 2008.
The financial situation of the Coperion Group is likewise very good: earnings before interest, taxes, depreciation and amortization (EBITDA) are at a very high single-figure percentage.
Coperion: technology and world market leader in all areas of activity
The Coperion Group holds an outstanding position in the world market, both in terms of its share in the market and in terms of its compounding and bulk materials handling technologies. Indeed, it is precisely this leadership in technology that is of central importance to the future corporate development and the continued growth of the Coperion Group.
Coperion is the most important supplier in the world market and is the No. 1 in all its areas of activity. For large-capacity compounding systems and bulk materials plants for the polyolefin industry, Coperion's share in the market is in each case in the region of 40 to 50%. The individual projects in this sector are relatively and manageably few in number, as they are extremely large in comparison with compounding systems for engineering plastics and masterbatches and have a contract value of up to € 50 million, with project lead times of between 15 and 24 months.
In the other fields – compounding systems for engineering plastics and masterbatches, as well as applications in the chemical and food industries, components for bulk materials plants and, last but not least, customer service – the Coperion Group's shares in the world markets are in the region of 25 to 35%. These outstanding positions in the world market will stand the Coperion Group in good stead for its future global growth.
DBAG: a new shareholder helps steer Coperion's course for growth
In July of this year, Deutsche Beteiligungs AG (DBAG) acquired the majority of shares in the Coperion Group from the British private equity firm Lyceum Capital. Since DBAG concentrates primarily on market-leading medium-sized companies in the mechanical engineering industry, the Coperion Group fits in well with its € 1 billion portfolio managed presently.
The Coperion Group is looking forward to further corporate development in collaboration with DBAG. The declared aim of DBAG is to give the Coperion Group its active support in the further internal and external expansion of its business.
Three Competence Centers with ambitious growth targets
For its future growth during the next 12 to 24 months, the Coperion Group has set itself several ambitious goals. In order to achieve these goals, the management has decided to orient itself on customer's demands and expectations to an even greater extent than was possible with the existing corporate structure. The two existing Competence Centers will now be supplemented by a third Competence Center. During the past period of almost two years, the
- Competence Center Compounding & Extrusion and the
- Competence Center Materials Handling have more than proven themselves in nearly two years of actual practice. The new
- Competence Center Service (from 1st January 2008) will meet the steadily growing specific need for after-sales service. Even today, after-sales service already accounts for a remarkably large part of the Coperion Group's turnover and earnings.
The technology basis and market position already achieved in each of the three fields of competence do in themselves offer considerable potential for long-term growth. Naturally, growth will be most noticeable in those areas of activity where Coperion's share in the market is still relatively small. Through the systematic and consistent development of its Global Service network, the Coperion Group will be able to reduce the distances to its customers worldwide, thus creating an even better basis for a fast and efficient service, a service which will of course be a not insignificant support for the other Competence Centers when it comes to the further development of their market potential.
The growth aims of the Coperion Group reach far beyond what can be achieved just through organic growth in the existing areas of business activity. In each of the three Competence Centers, acquisitions are planned with the aim of further market expansion. In this way, it will be possible to eliminate regional weaknesses much more quickly and efficiently than through Coperion's own corporate growth, a typical example being the acquisition of Coperion Keya about three years ago. Strategic acquisitions will enable Coperion to gain a fast foothold in regional markets, specific fields of business or specific product areas, thus further expanding its overall position in the market. The combination of strong internal growth and strategic external growth will be the key to a continuation of the Coperion success story that began three years ago.