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[July 2003]
JM Sees Profits Up for Colours & Coatings Division
For the year ended 31 March 2003, turnover for Johnson Matthey's Colours & Coatings Division was marginally up, from £253 million to £256 million. Operating profits jumped 12%, from £25.5 million to £28.5 million.
The Structural Ceramics sector of this division is focused on the production and marketing of frits, colours, glazes etc. Primarily located in the major tile producing areas of Italy and Spain, the business continues to expand in the key developing markets of Asia and South America.
Structural Ceramics achieved sales in line with 2001/2002, despite continued fragile conditions in its principal European markets. The first phase of the new frit manufacturing facility in Spain is now fully operational and a new frit manufacturing plant was completed in Brazil during the year. A new colours plant has been added in Spain (following the closure of Meir) and additional capacity has also been added in Italy.
Speciality Coatings serves two broad market segments: the surface coatings and plastics industries, to which it supplies pigments and pigment dispersions; and the tableware market, which takes pigments, glazes, decorative precious metals and decals.
The market for finished tableware has been relatively flat in recent years, says JM. However, the value of the market for decorative materials for tableware has been declining due to the continuing trend towards casual dining which has resulted in the predominance of less highly decorated, lower cost tableware.
JM says that the outlook for the tableware industry in Stoke-on-Trent, which remains the highest margin market for the business, continues to look particularly bleak and the decision to close the major UK site at Meir was taken last year in response to this.
The company says that, following the closure of Meir, the business is leaner and more focussed on the requirements of the industry and profits have improved as a result of the move.
The pigments and dispersions area achieved good growth in both sales and profits during the year. Further expansion is underway in pigments with investment in a new plant for Micraflo(r) products and further state-of-the-art production facilities for cadmium pigments.
ENDS