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Frontpage | Column | News Archive | Forchem.com |
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News from the sales offices UK, Benelux and Export Sales Territory 2005 has proved to be our most interesting and challenging year so far. During the first quarter we saw steady growth in TOFA and DTO sales as demand from key market segments increased. We have also enjoyed some positive results from our activities in export markets, particularly in the Middle East, S.E. Asia and India. In the UK, traditionally Europe’s centre for oilfield chemical production, we enjoyed a significant increase in demand, due to high crude oil prices and increased crude oil exploration and production activities. Of course, there have been some difficult choices over recent months, due to the prolonged disruption of our business, caused by the paper industry strikes in Finland. However, we are pleased with the feedback from our customers, who acknowledge our decisive handling of allocations and timely communications. We look forward to maintaining these standards following the recent appointment of Ms Carolyn Siddall to our UK & Export customer service and wish her success in her career at Forchem. In recent months, the reduction in production capacity by our competition has created even more opportunities for Forchem. This is the case in the DTO market, where we have worked very closely with our customers to develop new products tailored to their specific needs and have received much praise for our speedy response. Southern Europe In spite of the prolonged shortage of products over the summer, sales volumes in Southern Europe have developed as planned. Customers have now finalised technical approvals with some interesting developments in new applications such as mineral production. The South European market is characterised by its diversity with customer formulations adapted to specific requirements of end users in the region. We have noticed a sustained increase in activity and rising demand from Turkey and North Africa due to their own economic growth and exports to other regions. The demand for all tall oil products during the first quarter of 2006 is still at a very high level and exceeding offered volume; the future looks very promising for sustained growth. Northern Europe The Northern European Sales Territory consists of many medium-sized German-based customers, operating in a wide range of markets plus a few very large Alkyd Resin producers in Scandinavia. The German economy is still down and growth is predicted at only 1.5% in 2005. There is also some uncertainty following the appointment of Angela Merkel, the first woman chancellor, with plans to reduce German industry’s costs and increase competitiveness. Last year 2005 we have seen unprecedented demand for all products but particularly rosin, which is now in very short supply following a reduction in capacity by one of our competitors. Also, all rosin users have been affected by the extremely high gum rosin prices which have further fuelled the demand for our tall oil derived material. The prolonged impact of strikes in Finland in summer 2005 and resulting shortage of tall oil products has created problems but also new opportunities. This is due in part to some adjustment in our customer base and also to the successful approval of existing products and the development of new tailor-made products for new and existing customers. This has been especially so in the fuel additive and lubricants markets where our DTO type products have been very well received.
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| Forchem Oy P.O. Box 16, FI-26101 RAUMA, FINLAND tel +358 2 478 4400 fax +358 2 478 4499 |
Visiting address: Maanpääntie 3, 26820 RAUMA, FINLAND |
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