consumer products

HUTCHINSON 2005 Annual Report
Communication Department
HUTCHINSON S.A.
Head Office: 2 rue Balzac - 75008 Paris - FRANCE
Share Capital : Euros 42,411,960 - R.C.S. Paris B 542 051 826
www.hutchinsonrubber.com
[email protected]
2005
Annual Report
Contents
02 Message from the Chairman
03 Management committee
04 2005 Key Figures
06 PROFILE
08
09
10
12
13
A group with a worldwide dimension
Operations worldwide
Research and Development
Quality
Safety, Sustainable development
and Environment
14 People
15 $AV€ Purchasing Plan
16 AUTOMOTIVE
18
20
22
24
26
28
Profile
Fluid Transfer Systems
Body Sealing Systems
Antivibration
Precision Sealing Systems
Transmission Systems
30 AEROSPACE & INDUSTRY
32
34
36
38
40
41
41
42
42
43
Profile
Antivibration
Sealing Systems
Fluid Transfer Systems
Defense and Security
Sealants, Adhesives and Coatings
Profiles
Control and Display Systems
Body Parts
Tires
44 CONSUMER PRODUCTS
46
48
49
50
51
52
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Profile
Home Care
Professional Care
Baby Care
Personal Care
Health
>
Message from the Chairman
2
3
Towards Operational Excellence
Management committee
Other functional
departments
2
005 was a difficult year, marked by the considerable
tension on raw material costs, exacerbated competition
on all of our markets and a constant demand from
customers for lower prices. With a 5% increase to its sales
figure, however, Hutchinson’s growth continued.
Jean-Pierre Joubert
Senior Vice President
Purchasing
Dominique Mounier
Vice President Legal Affairs
The Automotive Activity had a contrasted year, due to
a certain lifelessness within the mature markets of Europe
and the United States, but it recently progressed thanks to
strong growth in new markets, notably South America.
Board
of Directors
The Aerospace & Industry Activity did well. It posted
a fine improvement, thanks to the clear rebound of
aeronautics after several difficult years of being marked by
the economic effects of September, 11.
As for the Consumer Products Activity, it had to deal with
Europe’s chronic lack of growth, stagnating consumption
and decreasing volumes.
Pierre-Christian Clout
Chairman, 2006
Robert Castaigne
2005
Pierre-Christian Clout,
Chairman and Chief Executive Officer
In 2005, to accompany its customers on the markets where
they are developing, Hutchinson’s investment policy
primarily targeted those countries with sharply climbing demand. The group also continued
its already powerful innovation policy while betting more than ever on R&D, an essential
factor for differentiation and a fundamental condition for lasting growth.
From left to right : Jacques Maigné, René-Jacques Quignard, Dominique Bonnet, Eric Perrot and Gilles Argy
General Management
Pierre-Christian Clout
Chairman and Chief Executive Officer
Thanks to everyone’s efforts, 2005 saw the implementation of our $AV€ Purchasing Plan,
a true 3-year corporate project with confirmed excellence in the areas of quality and safety.
Ready to meet the challenges of a constantly changing world, and relying on the major
advantage of the recognized expertise of its teams, Hutchinson is headed down a dynamic
and responsible road: sustainable development and operational excellence on all levels of the
group.
Management Committee
Gilles Argy
Corporate Vice President Research & Development
Dominique Bonnet
Corporate Vice President Finance
René-Jacques Quignard
Corporate Vice President Human Resources and Communication
Françoise Leroy
2007
Total Chimie S.A.
2007, represented
by Ian Howat
Auditor
Barbier-Frinault et Autres
2008
Replacement
auditor
Christian Chochon
2008
Jacques Maigné
Aerospace & Industry Senior Vice President
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Eric Perrot
Executive Vice President
The terms of the Board members
and Auditors end with the conclusion
of the Ordinary General Meeting called
in order to vote on the accounts of the
fiscal year indicated next to their names.
>
2005 Key Figures
4
5
3000
3000
2500
3000
2500
2000
2500
2000
1500
2000
1500
1000
1500
1000
500
1000
5000
500
0
1500
150
150
120
In 2005, the sales figure of the Hutchinson group increased
by 5% relative to 2004. Sustained growth in a difficult
overall context.
120
12090
90
6090
The Automotive sector posted an overall growth rate of 3%, with an
60
3060
American market characterized by the structural difficulties of its main
30
300
carmakers, a stable European market and strong growth in Latin America.
0
0
With an increase of 18.4%, the Aerospace & Industry activity posted a fine
150
150
150
120
120
12090
90
6090
60
6030
30
300
improvement, thanks to the good health of the aerospace sector and American
industry, as well as a European market showing positive trends.
100
100
10080
80
6080
Growth (in €M)
2001
2 675by 5%
For 2005, the sales figure increased
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
2 675
(3.8% with constant exchange and
perimeter).
2 675
2001
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
Investments (in €M)
2 709
2 575
2 709
2 575
2 575countries*
Other
2 667
2 667
In the various geographical zones:
2 709
2 667
Europe
NAFTA
+ 0.3%
+ 14.4%
2 800
22 800
800
+10.5%
* Asia and South America
136
136
In 2005, 114
the
115amount of tangible and intangible investments
115
118
€136
M, a clear increase relative to 2004.
stood at 114
136
136
136
118
They represent
1184.9% of the sales figure.
dropped slightly (-1.5%), primarily due to lifeless European consumption.
The group’s investment policy was maintained, with a significant increase
to €136 million.
The always sustained R&D expenditures
2001
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
<
20
200
S0
0
2003
2004
2003
2004
2005
2004
2005
2005
2 575 2 667
2 575
2 667
2 667
2 800
22 800
800
2003
114
2003
2004
2003
2004
2005
2004
2005
2005
114
118
114
118
118
136
136
136
€2,800 million
Sales figure
€136 million
Investments
124
124
With an increase of 6.7%
to 2004,
124 relative
124 129
124 for 5.1%
R&D expenditures account
of the
129 134
129
134
134
last year.
Finally, 2005 was marked by the acquisition
of the Techlam company, active in offshore,
defense, aerospace and railway.
sales figure.
143
143
143
climbed to €143 million, versus €134 million
“Sustained growth
in a difficult
overall context.”
2003
129
2003
2004
2003
2004
2005
2004
2005
2005
129
129
134
134
134
2001
24 169
2001
24 169
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
24 820
24 169
24 24
169564
24 820
24 25
820275
24 564
24 564
25 275
25 275
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
24 820
24 169
24 24
169564
24 820
24 25
820275
24 564
24 564
25 275
25 275
2001
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
€143 million
Research & Development
(in €M)
124
143
143
143
Research &
Development
expenditures
Distribution of the sales
figure
25 300
25 300
25
25 300
300
Aerospace & Industry
22%
96
94 96
96
9495
9495
95
95
95
95
95
95
95
60
4060
40
2040
2 575
136
115
114
2003
The Consumer Products activity did not see the expected growth, and even
0
300000
30000
25000
30000
25000
20000
25000
20000
15000
20000
15000
10000
15000
10000
5000
10000
50000
5000
0
0
Sustained growth, clear increase
in investment and R&D expenditures
Sustained growth
16%
Consumer Products
2001
2002
2001
2001
2003
2002
2002
2004
2003
2003
2005
2004
2004
2005
2005
Automotive
By business sector
25
25 300
300
Europe
67%
96
94 96
96
9495
9495
95
95
95
95
95
95
95
North America
26%
South America
4%
Asia and other country
62%
By geographical zone
>
3%
PROFILE
Judie, Chris,
Andrea and Sarah,
lovers of the ocean.
Distinctive mark:
attentive...
Judie and Chris are very attentive
to the notion of leaving the planet
in an acceptable condition for future
generations.
At Hutchinson, we are aware that
this requirement is incumbent upon
us as a priority, as it is on every
responsible company. Sustainable
development, respect for the
environment and for the women
and men who are the wealth
of this planet, these are some of
our long-standing commitments...
<
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>
9
Profile
8
A group with a worldwide dimension,
a leader in its activities
Operations worldwide
A company of the chemical branch of the Total Group,
Hutchinson is one of the world’s leaders in elastomer
transformation. Established in Europe, North and South
America and in the Far East, the group now has a staff of
25,764 professionals with recognized know-how, active in
119 operational units in 25 countries.
Europe
17,205 employees
78 Sites
North America
A partner of many industrial groups, both in aeronautics and in large-scale
consumer products, Hutchinson devotes its innovative skills to meet their needs,
and it is active in three major business sectors:
Automotive
The Automotive sector now represents 62% of the group’s sales figure. Developing
and marketing high technology products for car and equipment manufacturers, this
sector is divided into five activities: Fluid Transfer Systems; Body Sealing Systems;
Antivibration; Precision Sealing Systems; Transmission Systems.
4,962 employees
25 Sites
South America
Asia and other country
2,094 employees
7 Sites
1,503 employees
9 Sites
Automotive
Aerospace
& Industry
Consumer
Products
Czech Republic
France
Germany
Italy
Malta
Poland
Portugal
Spain
Switzerland
United Kingdom
Belgium
France
Germany
Italy
Poland
Spain
United Kingdom
Austria
Czech Republic
France
Germany
Hungary
Italy
Netherlands
Poland
Slovakia
Slovenia
Spain
United Kingdom
North America:
Mexico
USA
Mexico
USA
Mexico
USA
South America:
Argentina
Brazil
Brazil
Argentina
Brazil
Uruguay
China
Japan
China
Tunisia
China
Malaysia
Aerospace & Industry
The Aerospace & Industry activity accounts for 22% of the Hutchinson group’s
overall sales figure. Its actions are being developed around nine poles:
Antivibration; Sealing systems; Fluid Transfer Systems; Body Parts; Defense
and Security; Tires; Profiles; Control and Display Systems; Sealants, Adhesives
and Coatings.
Europe:
Consumer Products
The Consumer Products activity represents 16% of the group’s sales figure. Its
efforts are primarily devoted to large-scale consumer products, but also professional
and health-related products. It revolves around four poles: Home care; Professional
Care; Baby Care; Personal Care and Health.
Asia and other country:
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25,764
Employees…
and
119 Sites
in 25 Countries
>
Profile
10
11
Research and Development:
the mark of Hutchinson
In 2005, Hutchinson’s R&D investments amounted to
€143 million, versus €134 million the previous year. An eloquent
number that represents 5.1% of our sales figure.
The materials: a differentiation factor
Corporate Research Center Montargis (France)
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Multi-materials channel
At the heart of the Automotive activity,
Linkeo®, a hose for the exhaust line, offers
exceptional antivibration performances
and is sure to have a fine future.
Of note is the marketing of gloves for
medical purposes (G-Vir®), with an original
technique that combines a synthetic elastomer
material and an active disinfectant agent in the
central layer, which provides true protection against
virus contamination risks. This remarkable innovation was the subject of a
publication signed by Hutchinson employees and well-known researchers, in the
American reference magazine Nature.
Our materials are now a major differentiation factor and an important aspect of our
research activity. The creation of a new family of high-performance elastomer
thermoplastics, Végaprène® TPE, allows Hutchinson to manufacture products that
provide performances that are better suited to the expectations of customers.
In 2005, another important research project was silicone elastomers, which are
used in air intake mechanisms, an ever richer function in the automotive sector, as
well as in many parts for the aeronautics market.
Digital simulation: performance and innovation
Végaprène® bellow
The development of products:
more comfort and more safety
With its Calculation Center in Montargis, Hutchinson has a great performance tool:
a computer with more than 0.6 teraflops of power, capable of carrying out
600 billion operations per second. This installation, one of the first in France to have
carried out “massively parallel” calculations, remains one of the most powerful in
the industrial world. It allows Hutchinson to carry out cutting edge original research
work, such as taking into account the behavior laws of materials or their fatigue,
and predictions on the lifespan of components.
Bogie
Finally, in the railway domain, 2005
saw Hutchinson carry out complete
simulations of the dynamic behavior of a
train’s bogie, in collaboration with
Alstom. This is a complex simulation
effort that, in the future, will make it
possible to design and carry out the
production of better performing parts
that are better suited to our customer’s
needs.
Flexible
decoupler
Linkeo®
“Linkeo®
and G-Vir®:
ever more
comfort
and safety.”
The processes: a determining factor for lowering costs
Controlling the processes is a determining factor for reducing the cost of products.
Its primary virtues are a significant reduction in the materials used, ensuring that
automated processes are as efficient as possible, very
significantly reducing the quantity of waste, all the while
adhering strictly to the regulations regarding the environment.
>
12
Profile
13
Quality the other
path to operational
excellence
In keeping with the expectations of its customers, Hutchinson
continues to be committed to the high level of quality demands
in all of its units.
Its plants now all comply with the most recent international standards:
ISO 9001-2000, ISO/TS 16949-2002 for the automotive sector units and
EN 9100-2003 for the aeronautics industry units.
Production system Château Gontier (France)
Technical Skills Institute Sougé-le-Ganelon (France)
In 2005, we also saw the renewal and extension of the RECORD program. The
purpose of this program is to reduce the cost of scrap and defects. Under the name
of HEXO 7 the form of an active quality initiative, deployed in all of our businesses
and revolving around three axes:
- The management, must see to the best possible deployment of the Hutchinson
strategy in its various units (notably thanks to efficient tools: Balanced Score
Card, self-assessment of the management systems),
- Control of the production processes while providing the plants with specific tools
and initiatives: harmonized indicators (Material Transformation Rate and Synthetic
Yield Rate), progress projects, overall and structured production systems...,
- Supplier Quality Assurance which, in response to the issue of reducing scrap
and in collaboration with the $AV€ Purchasing Plan, calls for not only a stricter
control of the services and delivered products, but also for strengthening of the
technical relations with our suppliers.
The safety of persons
and goods:
a human imperative
Hutchinson has made excellent progress in this area,
resulting in:
- The number of occupational accidents were cut in
half (frequency rate of accidents with work
stoppage - Fr1 - dropping from 18 in 2001 to
8.5 in 2005). An Fr1 objective below 6 is targeted
Handling of VOC Vierzon (France)
within 3 years.
- A culture change regarding risk, the promotion of which is provided as
part of the “SAFERING” project carried out in partnership with Veritas.
- A specific action undertaken with the Apave, in order to systematically identify
“hidden risks”.
- A special effort to reduce the usage of dangerous products, notably focusing on
CMR products (Cancerous or Mutagenic Risks or Toxic for Reproduction), the
usage of which is now prohibited.
- A continuation of the efforts to adapt the protection of the sites to the risk of fire,
according to their vulnerability, by means of systematic audits.
“Hutchinson,
an active
company in
the protection
of the
environment.”
Sustainable development and Environment:
planetary stakes
Hutchinson very quickly got behind a responsible policy to bring its sites up to environmental
standards, resulting in:
- ISO 14001 certification of 50 sites, including all of the sites working for the Automotive sector.
- The systematic and optimized treatment of its wastewater.
- The commitment of significant investments for establishing conformity relative to the new air
Technical Skills Institute Sougé-le-Ganelon (France)
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“HEXO 7 :
a quality initiative deployed
on our 119 sites.”
directives, resulting in treatment units for Volatile Organic Compounds (VOC) operational in 2005
at Vierzon (France) and Columbia (USA), and in 2006 at Segré (France) and Châteaudun (France).
- Finally, the development of products based on Végaprène® significantly contributes to the reduction
of environmental nuisances on the level of the processes (discontinuation of the usage of solvents,
reduction of production waste and possibility of their recycling) and is an important avenue for
sustainable development.
>
14
Profile
15
The quality of the People:
a response to major
contemporary stakes
In a rapidly changing world, where the management of human
resources requires an ever greater sense of responsibilities and
balance, Hutchinson’s staff increased to 25,764 employees as
of the end of 2005.
2005 Paris Air Show - Paris (France)
Common roots, a sharing of cultures
Kevin Curtis, Operational Excellence
Manager - Grands Rapids (USA)
Hutchinson can legitimately claim a strong company culture, as demonstrated by
its low turnover rate, employees who are truly attached to the company and often
remain for their entire careers. Bringing all of the group’s components together
around a single spirit, that is the challenge that we have set for ourselves as part
of this often and loudly proclaimed choice: operational excellence on all company
levels. Some of the determining stakes for the group’s durability include ensuring
that this common culture, the basis of our development, can live on in contexts of
constantly increasing competition, while also making the very most of our
multicultural wealth.
Attentive career management, encouraged mobility
Techlam - Cernay (France)
Hutchinson is taking in full awareness of the new economic environments
brought about by globalization: through encouraging national and international
mobility, promoting the emergence of local management teams that have been trained
in the newest techniques, making sure that the group benefits from its multicultural
wealth. Attentive career management provides our employees with genuine
advancement possibilities.
An asserted training policy
Almost 4% of our payroll is now devoted to training, a voluntary policy that
speaks of the importance that Hutchinson ascribes to this fundamental aspect
of its development. Using internal tools with proven efficiency; such as our
Montargis Research Center, training programs, specifically applying to rubber
or new technologies, are provided for the company’s employees. For certain activities,
very specific training is provided on the production sites, for the best possible
situational training.
Finally, Hutchinson is now ready to take up two other major challenges:
- Dealing with the evolution of the company’s demographic structure;
- Developing the skills and abilities to deploy our human resources within new markets,
and to accompany our customers in the countries in which they are developing.
$AV€ Purchasing Plan:
A true cross-functional and
interactive corporate project
“Bringing all
of the group’s
components
around a
single spirit.”
Officially launched in March 2005 at the group directors’ seminar
in Toulouse, our Purchasing strategic plan ($AV€) has had an
exceptional first year of implementation. Objective: a significant
reduction of our purchasing expenses out to 2007.
The mobilization around the $AV€ plan resulted from a great awareness of the fact that
purchasing represents half of the Hutchinson group sales figure, and therefore has a
strong impact on the profitability. Thirteen (13) cross-functional working groups, each
sponsored by a member of the Operational Committee, were involved in the $AV€
plan: 8 “Quick Savings and Purchasing Actions” Initiatives - the mission of which was
to find avenues for immediate gains - and 5 “Maturity and Structure” Initiatives, which
focused more on the medium-term. As such, these working groups worked for a year
on a very precise diagnosis of the situation, but especially on concrete
recommendations. Clearly posted objectives: reduce the Hutchinson purchasing bill by
15% within 3 years; cut the number of our major suppliers in half; develop purchasing
in a broader geographical perimeter and make more systematic use of the Internet for
e-purchasing and e-procurement thanks to our available e-business tools.
This project, clearly cross-functional and very interactive, was not only very well
received by the teams, it has also borne fruit.
Team from Hutchinson Poland Bielsko-Biala (Poland)
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>
SEOUL
AUTOMOTIVE
Miki lives and
works in Seoul.
Distinctive mark:
serene...
Like millions of drivers
in Seoul, London, Paris,
Mexico or Los Angeles,
Miki is attentive to the feeling
of comfort and protection
provided to her by her car,
on the road that is becoming
safer every day.
At Hutchinson, we are
proud that our work
contributes to this...
<
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>
18
Markets/
19
Automotive
Comfort and Security:
new requirements in a changing market
100% of the sealing
equipment for
the HUMMER H3:
a Hutchinson exclusive
In a difficult overall context: higher raw
material costs, strong pressure on prices
and market stagnation in Europe, our
Automotive-related activities experienced
contrasting situations from one continent
to the next. Up 3%, they must deal with
profound changes. Quick overview.
Since March 2005, Hutchinson has
provided 100% of the sealing equipment
for the famous General Motors Hummer
H3, a vehicle that is now emblematic
both in the United States and in Europe.
One example of a major carmaker’s
recognition of our expertise. A fine
success in commercial terms and a
strong impact in image terms.
© Peugeot - Communication Department, Sautelet
Establishments (Sites)
Europe:
• Czech Republic (1)
• France (12)
• Germany (2)
• Italy (1)
• Malta (1)
• Poland (4)
• Portugal (3)
• Spain (7)
• Switzerland (1)
• United Kingdom (3)
North America:
To better meet the expectations of drivers, carmakers are extending their ranges.
Also, for differentiation purposes, they are offering more refined segmentations.
As such, the minivan now comes from three platforms, with the middle range
offering well-planned comfort and a profile suitable for family usage. On the
entry level, city vehicles that are easier to park, that have more limited equipment
but still ensure safety, and that are more fuel-efficient, are encouraging the
replacement of old vehicles with new ones. Comfort and Security: areas of
expertise in which Hutchinson is not short of assets. At the other end of the offer,
SUVs (Sport Utility Vehicle) are becoming increasingly important in Europe, as
confirmed by the successes of the Cayenne, Touareg, X5 and X3 from the
German carmakers already well-established on the high-end.
• Mexico (3)
• USA (13)
South America:
• Argentina (1)
• Brazil (2)
Asia:
• China (2)
• Japan (1)
<
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Caesar
The dynamics of emerging countries
In emerging countries, the carmarkers demand is obviously more dynamic and
often encouraged by governmental policies. The strong pressure on prices and
exacerbated competition often require our customers to be accompanied in the
countries in which they are developing. As such, Hutchinson has 4 production
units in Brazil, which alone represents 85% of the South American automotive
market.
A lifeless European market
With a low purchase rate amongst households, the European market
remains lifeless, characterized by a still aging automobile stock (8 years on
average). Unquestionably a mature market, the European market remained
balanced in 2005, but must deal with the growing competition from Asian
carmakers that are posting double-digit growth.
The United States: at the heart of the changes
With 16 million new vehicles sold each year, the American market remains
the world’s leading market by far. The Big Three (General Motors, Ford and
DaimlerChrysler), followed closely by Asian carmakers that are
unceasingly capturing market shares on all continents, are being forced to
renew their ranges and production tools. Equipment manufacturers are
accompanying them in these redeployments.
“Hutchinson’s
innovative
products:
a differentiation
criterion for
car makers.”
>
20
Markets/
Automotive
21
Fluid Transfer Systems
Establishments
Pro-activity and quality in
view of the market’s changes
A year of operational progress for the Fluid Transfer Systems
activity, 2005 led to significant quality improvements. This was
credited to the worldwide rationalization of the production
system through the involvement of the manufacturing teams.
The profitability of the high pressure segment of the Fluid
Transfer Systems also improved.
Hutchinson Poland - Zywiec 1 (Poland)
For the Fluid Transfer Systems activity, 2005 was notably marked by significant
quality improvements, resulting in the concrete realization of a very low rate of ppm
(lost parts per million), down to 38 (versus 148 the previous year), and while bearing
in mind that many manufacturers require a level below 50.
In the Low Pressure domain, several products helped to maintain the production
level:
• engine cooling systems (a segment where the competition remains stiff);
Hutchinson Poland - Zywiec 1 (Poland)
• air products, the development of which goes hand-in-hand with that of the direct
injection diesel engines that require more technical functions;
• fuel lines, now looked after by plastic tubes produced by Hutchinson at its Polish
unit, which experienced strong development. The Polish plant in Zywiec 1 now
has a new building that went into its operational phase in 2005.
Autoclip 3000
connector
Another function that provided for a good success was the particulate filters
(combustion of diesel engines soot), an area in which Hutchinson holds a large and
constantly growing market share in Europe and Asia. Also of note in the area of the
transfer of fuel fluids, is the partnership with an Iranian company.
“Allowing synergies to work
on the group level, speaking
a common language.”
Europe:
Czech Republic
France
Germany
Italy
Poland
Portugal
Spain
“Forming by hammering” technology
Two new operational units
Partial view of
air conditioning piping
For High Pressure, two units came on line:
• Bielsko-Biala, in southern Poland at the heart of a road network leading to the
Czech Republic and Slovakia, began its operations; it notably manufactures air
conditioning hoses for the Citroën C1, the Peugeot 107 and the Toyota Aygo,
produced in Czech Republic, barely 400 km away.
• The Mexican plant of Reynosa, located 13 km from the American border, looks
after the production of tubes and high pressure hoses.
Significant orders were received from Honda and Nissan in the United States, for
whom Hutchinson is a recognized supplier for the air conditioning of Japanese
vehicles. The group was also chosen by Valeo and PSA to develop the air
conditioning systems using CO2 (more expensive but less polluting) that European
manufacturers wish to use to gradually replace
the more conventional refrigerants; a significant
innovative axis. In response to the strong
demand from customers for braking systems,
Hutchinson has also developed new so-called
“hybrid” solutions, combining rubber tubes and
metallic tubes.
Additionally, in the air conditioning sector,
innovative solutions have been developed in
order to reduce the evaporation of liquid
refrigerants.
Finally, for the past year, we note the development of our plant in Porto (Portugal) and a
partnership agreement signed with a Turkish
company, now the leading local company in the
manufacturing of air conditioning hoses.
Hutchinson Poland Bielsko-Biala (Poland)
North America:
Mexico
USA
South America:
Argentina
Brazil
Asia and other countries:
China (Joint Venture)
Iran (Part Lastic)
Japan (Tokaï Rubber Industries)
Turkey (Bant Boru)
Markets
Air circuit
Air conditioning
Braking
Engine cooling
Filtration
Fuel circuit
Lubrication
Oil cooling
Power steering
Products
Air conditioning hoses
Air conditioning pipes
Air or water conduits (3D dual-material)
Air pipes
Breaking hoses
Canisters
Clutch hoses
Depollution pipes
Oil and engine cooling hoses
Oil pipes
Plastic and rubber fuel pipes
Power steering hoses
Water pipes
Hutchinson Transferencia de Fluidos Reynosa (Mexico)
Turbo exhaust
air line
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Markets/
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23
Body Sealing Systems
Establishments
Growth within
the economic situation
While the sector’s worldwide volumes were up, the markets in
which the Body Sealing Systems activity is established - such as
Europe and NAFTA - volumes were largely lifeless. However,
overall sales improved thanks to new business with major
American car manufactures.
Technical Skills Institute Sougé-le-Ganelon (France)
Hummer H3
In addition to this key phenomenon of the absence of volumes on our traditional
markets, the downward pressure on prices imposed by manufacturers remained
strong. The impact of higher raw material costs also weighed heavily during this
lackluster year, which was marked by a strong scissor effect.
In the NAFTA zone, while the overall context also suffered from these parameters,
2005 also saw a strong increase of our production for DaimlerChrysler
and the first deliveries for Ford - the CDX : Fusion, Zephyr and Milan. Since March
2005, Hutchinson has also provided all of the sealing systems for the famous
General Motors Hummer H3, a fine success in commercial terms and a major
impact in image terms.
In 2005 we also saw the “takeoff” of our Mexican production unit, which notably
manufactures parts for the “window sealing” of the Ford Fusion, the Lincoln Zephyr
and the Mercury Milan.
Hutchinson Poland - Lodz (Poland)
“Customer and product
diversification are
the priority.”
<
S New Picasso’s sliding joint
Europe:
France
Germany
Poland
Spain
United Kingdom
North America:
Mexico
USA
Lincoln Zephyr
South America:
Argentina
Brazil
Asia:
China (Joint Venture)
Europe on hold and
South America taking off
Nissan Pathfinder
In South America, growth resulted from the success of the Volkswagen Fox in
Brazil and of the Toyota Hilux in Argentina.
In Europe, the strong pressure on sale prices exerted by manufacturers was one
of the determining factors which Hutchinson had to deal with. The ramp-up of our
Polish plant is continuing. It started up in 2005. However, our business on the old
continent suffered primarily from the
chronic lack of volumes. Combined
with the higher raw material costs and
the pressure on prices, the expected
profitability level was reduced despite
the good start-up of new vehicles such
as the Clio 3, the Audi A3, the BMW
series 1 and 3 and the Nissan Pathfinder,
for which Hutchinson is providing TPE
Hutchinson Autopartes Mexico Celaya (Mexico)
glass run channels.
Markets
Bodywork, passenger compartment
Products
Dynamic Seals:
- Anti-fouling seals
- Door seals
- Double seals
- Hood seals
- Trunk / tailgate seals
- Water tank seals
Fixed window seals:
- Encapsulation
- Glued window bezels
- Quarter panel seals
Mobile glass seals:
- Casing run channels
- Glass run channels
- Interior & exterior sealing strips
In innovation terms, the year was marked by marketing of Végaprène® (TPE), in
both Europe and the United States, a high-performance solution that notably
reduces the weight of vehicles, while also making the product recyclable. Our highlevel expertise was maintained in the domain of the simulation and modeling of the
dynamics of door closings. All steps on the road to excellence, start with the
creation of the Technical Skills Institute in Sougé-le-Ganelon (France), where
employees are trained to the latest manufacturing techniques. This strategy will be
duplicated in 2006 at our Montargis (France) and Madrid (Spain) sites.
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Automotive
25
Antivibration
Rear suspension
hydraulic linkage
A rebound via technology
Europe:
France
Germany
Italy
Poland
Spain
United Kingdom
The Automotive Antivibration business used 2005 to make all of
the efforts needed to ensure its rebound. In stable or slightly
decreasing markets - Europe, United States - and in rapidly
growing markets such as South America and Asia, its sales figure
increased by 4%.
Enclave (Buick)
On a commercial level, many vehicles hit the road using Paulstra technology: The
Chevrolet Impala from General Motors and the Chrysler Dodge Caliber; the Toyota
Hilux, which is a fine commercial success; the new Clio, chosen as the 2006 car
of the year in Europe, the 107 and C1 from PSA or also the Toyota Aygo.
2005 also had its share of innovative products such as active and steerable
supports, notably for Ssangyong.
Hydraulic support
and its magnesium arm
The end of 2005 saw the creation of the position of Global Key Account Managers
- managers of worldwide accounts with broader skills to cover several continents -,
for certain customers such as Renault-Nissan, General Motors and PSA…. This
evolution fits right in with the operational excellence efforts, and responds to a
constant demand from automobile customers.
Strongly involved in the $AV€ project, the Activity also rationalized its purchasing
policy. The difficult economic situation - marked by the higher prices for raw
materials (steel, rubber, aluminum) - prompted the management to strongly
increase its efforts with the suppliers and to redirect its choices towards those
countries, often emerging ones, where its customers are developing. This effort
was in conjunction with a rigorous cost management and control policy.
Establishments
Front suspension
triangle linkage
North America:
USA
South America:
Argentina
Brazil
Alfa Romeo 159
Strong growth in South America
and Eastern Europe
Asia and other countries:
China (Joint Venture)
Front suspension
hydraulic linkage
On an operational level, the year was marked, in the United States, by the
reorganization of the production locations, not only with the transfer of the
Automotive Antivibration activity from the plant in Ithaca (USA), to the plants
in Grand Rapids (USA) and Cadillac (USA), but also to the Mercosur (Monte Alto
in Brazil).
In Europe, the Polish unit in Lodz doubled its production to look after our customers
established in Eastern Europe. Finally, the business saw its production increase
sharply in Argentina and Brazil.
Steering
support
for the
Kyron
Ssangyong
Iran (Part Lastic)
Japan (Bridgestone)
Korea (TSR)
Thailand (Bridgestone subsidiary)
Turkey (Teklas)
Markets
Bodywork, passenger compartment
Engine and exhaust
Ground connection
Steering
Products
Active and semi-active supports
Body shell, cradle/cross bracing
support
Drive torque rods
Elastic suspension linkages
Engine supports
Exhaust supports
Hydraulic engine supports
Hydraulic linkages
Inertial beaters
Shock absorbers seatings
Steering couplings
New Clio 3
Kyron
“A major orientation:
the creation of Global
Key Account Managers.”
<New Clio S
suspension
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Markets/
Automotive
27
Precision Sealing Systems
Industrial deployment
and new products
The Precision Sealing Systems business was active in a rapidly
evolving context: a clientele of manufacturers who are
continuing to pull out of components, and geographical
transfers of our customers, whom we must accompany in the
countries where they are developing.
Hutchinson Poland - Lodz (Poland)
The teams at our pilot plant of ChâteauGontier (France) were heavily involved in the set-up of “flagship projects” that
targeted the rationalization of systems. Building on its success, this experience
will be extended to other sites this year: a sharing of good practices that opens the
door to operational excellence. We also note the ramp-up of the Monte Alto 1 unit
in Brazil.
Boot
Despite a noticeable hike of raw material costs, the Precision Rubber business unit
once again posted strong growth in Brazil. Our operational organization in the
United States evolved, notably with the transfer of our production to Ensenada
(Mexico). Capitalizing on the general trend of carmakers to diversify into smaller
engines, Hutchinson secured several orders for new parts for the “Prince” engine
that will be used in the smaller displacement vehicles from BMW and PSA.
Magnetic field - Coder joint
In Dynamic Seals, we note a fine success with magnetic elastomer coders seals,
that provide for optimum operation of the ABS and ESP systems, but also GPS
system. A highly technical product with substantial growth margins, and an avenue
leading to the future of vehicles in which mechanical connections are replaced by
electrical connections (“By Wire”), and allows to continue growth in 2006.
“Accompanying our
customers wherever
they are developing.”
Engine
coder
seals
<
S
Establishments
The O-Rings business unit, for its part,
saw real growth, particularly in Eastern
Europe, primarily because of the plant
transfers of our equipment maker
customers. Our business progressed
strongly both in Poland and in the Czech
Republic.
Rear
windshield
wiper access
sealing nut
For its part, the Automotive Molded Parts business unit
capitalized on the performances of Végaprène®,
developing 40 new thermoplastic parts
for major customers such as Renault
or Volkswagen. In the years to come,
this new patented material will
account for a significant share of the
raw materials transformed in the
Caceres (Spain) plant.
North America:
Mexico
USA
South America:
Brazil
Asia:
China (Joint Venture)
Markets
Rear windshield
wiper access seal
Finally, the Foam and Converting business unit marketed several new products
such as thermoformed products, ultra-light sheets of foam that are heated and
shaped into the form of a sheath to ensure air circulation within the vehicle. This
innovative technique has, in particular, been adopted for the new Audi 4X4 Q7. With
the manufacturing of Triplex (barrier made
of association of rubber, aluminum and
fiber glass fabric) for methane tankers
(14 ships last year with a strong increase of
the sales figure per unit), the division also
had considerable success that should be
even greater this year.
Triplex
Europe:
Czech Republic
France
Germany
Malta
Poland
Portugal
Spain
Switzerland
United Kingdom
Automobile:
- Air conditioning
- Air intakes
- Bodywork, passenger compartment
- Braking
- Engine and engine suspension
- Engine cooling
- Filtration
- Fuel circuit
- Ground connection
- Ignition
- Lubrication
- Steering
- Transmission
Construction, public works
Food industry, agriculture, fishing
General industry
Sports & Leisure
Transport
Products
Automotive molded parts
Automobile precision parts
Bellows
BS rings
Cellular rubber sheets, blocks
Coder seals
Composite seals
Dynamic seals
Flat sales, cut
Membranes
O-rings
Quadrilobate seals
Thermal seals
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29
Transmission Systems
Innovation and control
of the processes
Innovation and control of the processes for a constant quality,
irrespective of the production zone, two imperatives brought
about by the performance of the teams. The Transmission
Activity has stayed the course.
Finishing workshop - Lodz (Poland)
Hutchinson Brasil Automotive Extrema (Brazil)
In 2005, the Activity was notably able to make the most of the significant
commercial success of the elastic belt. This major innovation, given shape by
products suited to the markets - such as the “Stretchy Belt” for the Automotive
sector, the “Module Adapté” for Household appliances and the Flexonic® for
Industry -, has attracted growing interest from manufacturers.
In the Automotive domain, the calculation, simulation and lifespan prediction
capabilities relative to the components available from Hutchinson are considered to
be the most powerful on the worldwide stage. These capabilities, developed over
many years, mean that we are the recognized transmission systems expert
channels for our customers and partners.
Our great strength in terms of products: in Europe, Hutchinson is the uncontested
leader of the Poly-V belt®, and it is now making its way to the United States with
carmakers such as General Motors or Ford, but also with Japan’s Mazda and
Korea’s Hyundai. We are one of the few companies on the market able to
produce tensioners and pulleys mainly with the hydraulic dampening tensioners.
This production intensified in 2005, primarily for GM in the United States, but also
for Suzuki in Japan and Audi in Germany.
Establishments
Europe:
France
Germany
Italy
Poland
United Kingdom
Diversification towards China
North America
USA
In Household appliances, Hutchinson confirmed its worldwide leading position on the
segment of drive belts for washing machines
and clothes dryers. Strong growth throughout
four continents: Europe, the Americas, Asia
and Oceania - due to the recognized reliability
of its recommendations and products. The
Poly-V belts® are now delivered from French
and Polish units for Europe, and from Brazil for
both North and South America. Hutchinson
also secured new markets in 2005, such as
Little Swann in China and Samsung in Korea.
South America:
Brazil
Asia:
China
Japan
South Korea
Markets
Clothes dryer
In the Industry sector, once again the Poly-V
belt® was widely adopted by our customers in
2005. Strong growth was notably seen in the
domain of portable electric equipment,
where the interest value of the Flexonic® elastic
belts - assembly cost gain and elimination
of the tensioner - is viewed as a fundamental
advantage.
Aerospace
Agriculture, fishing
Automotive
Food industry
General industry
Household appliances
Navy
Railway
Sports and leisure
Transport
Products
Bearings
Flexonic®
Poly-V belts®
Pulleys
Stretchy Belt
Tensioners
With regard to production, our units in Brazil
and Poland ramped up throughout 2005.
“The teams, at the heart
of operational excellence.”
Chinese advertisement
Engine façade
<
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NEW YORK
AEROSPACE & INDUSTRY
In under an hour:
New York. Jean has
wrapped up his
presentation.
Distinctive mark:
confident...
Like millions of travelers,
during each of his business
trips, Jean unknowingly benefits
from the quality of our R&D.
At Hutchinson, we design
innovative solutions for the
ever greater comfort and
safety of air transport...
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Markets/
33
Aerospace & Industry
Blue skies
after years of crisis
The art of accompanying
new markets:
Hutchinson know-how
After the lockdown imposed on
the air transport business the day
after September 11, 2001, aeronautics
rebounded strongly in 2005.
A year of remarkable growth for
our activity (+18.4%).
With the acquisition of Techlam,
Hutchinson is now in par ticular
positioned on the Offshore sector.
A ver y specific market in which
Techlam offers recognized exper tise
- notably in deep Offshore: drilling
at 1,000 meters or more -, for the
supply of complete systems that can
weight up to 45 tons.
Establishments (Sites)
Europe:
• Belgium (1)
• France (16)
• Germany (3)
• Italy (1)
• Poland (1)
• Spain (2)
• United Kingdom (3)
North America:
• Mexico (1)
• USA (6)
South America:
• Brazil (1)
Asia and other country:
• China (1)
• Tunisia (1)
<
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Caesar
A genuine barometer of the aeronautics markets, the 2005 Paris Air Show
was more optimistic this year than in previous years. Marked by the attacks
on September 11, and the conflict in Iraq, air transport experienced some
tough times, but the prospects are once again looking good. Both in terms
of traffic and aircraft passenger rates, the indicators all seem to be showing
green.
the American manufacturer Boeing chose a different development axis:
the B787, a medium-sized aircraft. In addition to this growth in civil
aviation, the Defense sector also contributed to last year’s good
performance.
The more lifeless Industry sector did not experience such clear progress
this year except in the United States where the economy has continued to
flourish.
Renewed growth
While traffic has returned to its 2000 level in the United States, this
evolution is taking more time in Europe. Nevertheless, the estimate is for
worldwide traffic to increase by an average of 4 or 5% in the coming years,
with a strong push in Asia. Very favorable growth with Airbus and Boeing,
for which 2005 was a particularly good year. After the first official flight of
the new A380, Airbus confirmed that its conquest strategy was based on
this giant of the skies for which the orders are already rolling in. For its part,
The irresistible rise of composites
With ever greater demands for thermal and acoustic products, for
innovative products that reduce weight while providing greater security
(fire resistance compliant with the new regulation imposed by the
worldwide aeronautics authorities), manufacturers are increasingly
turning to complex materials, a domain in which Hutchinson can claim
true expertise. An exponential push that offers fine prospects for the future.
“Lighter and
more resistant
complex materials,
the fruits
of Hutchinson’s
research.”
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Aerospace & Industry
35
Antivibration
A year of success
2005 was a success for antivibration, as it strengthened its
positions and made some fine conquests both in Aerospace and
in Industry. Another outstanding aspect: the acquisition of
Techlam, which will notably allow Hutchinson to broaden its
offshore offer.
The acoustic reduction products designed by Paulstra were a great success in
2005. The strengthening of the fire standards prompted the group to launch a new
range of insulation and dampening products. These have notably been adopted for
the Falcon range of business aircraft from Dassault Aviation, in particular the Falcon
F7X. Excellent progress was also made by the interior lining acoustic kits intended
for the VIP version of the Agusta 139 helicopter. Barry Controls Aerospace also
posted some fine successes: new parts for the Bell 429 M helicopter, and a whole
range of studies on noise reduction within the cabins of Business Jets. Barry
Controls also secured orders for the APU support for the A400M military aircraft,
the ARJ21 regional jet and engine supports for the Chinese XAC MA-60 airplane.
Finally, we note that the site in Burbank (USA) has begun producing racks for the
American market.
Agusta
Barry Controls - Hopkinton (USA)
Establishments
Laminated
EMU 200 km/h train. Still in China,
Paulstra has secured the order for
secondary suspensions for 20 8-car high-speed
trains produced by Bombardier. Another dynamic project
is the subways of major Chinese cities. Indeed, 2005 was marked
by Bombardier’s order for primary suspensions for 200 bogies for lines
4 and 5 of the Canton subway, and by the order for secondary suspensions
for the 128 cars produced by Alstom for the extension of line 1 of the Shanghai
subway. Their manufacturing was launched at our Suzhou (China) plant in 2005.
In the area of active supports, which was a true overall success, the year included
a first order from the German company MTU, the worldwide leader in marine diesel
engines. Two 12-cylinder engines equipped with Stractive® active supports will be
fitted to a large yacht.
Another major event in 2005, the acquisition of Techlam, an innovative company
located in Cernay (France), which specializes in mechanical systems based on
laminate technology. Active in the domains of defense, aerospace and railway, it
will also be strengthening Hutchinson’s
offer in offshore products.
Fine successes have been posted in the
railway sector, notably in China, where
Paulstra’s activities developed strongly.
Interesting prospects were opened by
the contract signed with Alstom and
the local train manufacturer CRC,
for the supply of secondary
suspensions for 60 8-car
trains for the Chinese
North America:
Mexico
USA
South America:
Brazil
Asia and other country:
China
Tunisia
Markets
Automotive
Aerospace
Construction, civil works
Defense and Security
Energy, chemical
General industry
Heavy Vehicles
Navy
Offshore
Railway
Sports and leisure
Products
Finally, we note the operational
reorganization of our Barry Controls
Industry units in the United States,
with a production transfer from
Brighton (USA) to Ithaca (USA) and
Hopkinton (USA).
Stractive®, a very active support...
Europe:
France
Germany
Italy
Poland
Spain
United Kingdom
FPSO Kuzomba A platform
Body parts
Control and display Systems
Couplings, antivibration linkages
Profiles
Passive and active suspensions
Pipes and hoses
Reduction of noise and vibrations
Run flat and security products
Sealants, adhesives and coatings
Seals produced for the aeronautics
industry
Special absorbent coverings and
EMI products
Tires for two-wheeled vehicles
EMU 200 km/h China Alstom CRC
“Techlam, new expertise
in the service of the group.”
Secondary suspension
for EMU Bombardier
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Aerospace & Industry
37
Sealing Systems
A market revitalized
by Aerospace
Encouraged by the excellent results in the Aerospace markets,
Sealing Systems had a good year in 2005. This particularly
favorable context can notably be explained by the excellent
steps taken by the world’s two major manufacturers, Airbus and
Boeing, but also by the new “fire regulation” that has been in
effect since September 2005.
Falcon F7X
Trent 900 engine – Rolls Royce
EMI shielding products
<
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Seal plates access panels
Just like in 2004 and despite the
strong pressure on prices, the past
year was one of strong growth
at JPR, located in Amiens (France).
This remarkable improvement,
higher than the market average,
owes a lot to two parameters: the
excellent health of Airbus and the
development of lighter products
Test fire
intended for its A380, and also the
new “fire regulation” brought in by the American aeronautical authorities. Since
September 2005, this new regulation requires all of the materials used in new
aircraft to provide greater fire resistance. To meet these new requirements for fire
resistance and lighter materials, the JPR plant has set up a composites pole.
This is a development that has already resulted in the production of parts for the
Dassault F7X and sealing systems for the Rolls-Royce T900 and T1000 engines
that will be used, in particular, on the Airbus 380 and the Boeing 787. It was a great
success for JPR in 2005 to have been chosen - thanks to the great resistance
of its fire barriers - as the preferred supplier for Rolls-Royce for the production
of its famous Trent engines. And finally, another first: JPR has been short-listed
by the American company Goodrich to supply all of the sealing systems for
the engine nacelles for the future Boeing 787.
Establishments
A good year for exports
The business of LJF Roubaix (France) and
LJF Stillman Bezons (France) was also, for
its part, revitalized by aeronautics, whereas
some stagnation was seen in the industrial
markets. 2005 was a good year for exports,
with the delivery of 80% of the needs of
CAF/Bombardier for the Mexico subway
(elastomer inter-car linkages). In 2005 we
also saw the development and convincing
presentation of the support parts for the
M51 missile carried by French nuclear
submarines. Finally, in March 2005, the
launch of a new production software
program at Bezons (Silverprod) was carried
out successfully, thanks to the strong
involvement of the teams.
Europe:
France
Germany
Italy
Poland
Spain
United Kingdom
North America:
Mexico
USA
South America:
Brazil
Asia and other country:
China
Tunisia
Markets
Inter-car linkages of the Mexico subway
(Mexico)
For Stillman Seal, finally, our production
unit based in Carlsbad (USA) moved to
Ensenada (Mexico), where all of the
operational certifications were obtained
(NADCAP and ISO 9001).
Automotive
Aerospace
Construction, civil works
Defense and Security
Energy, chemical
General industry
Heavy Vehicles
Navy
Offshore
Railway
Sports and leisure
Products
Molded seals
“Composites: products
of the future and
challenge for
Hutchinson.”
O-ring compression press – Ensenada (Mexico)
Body parts
Control and display Systems
Couplings, antivibration linkages
Profiles
Passive and active suspensions
Pipes and hoses
Reduction of noise and vibrations
Run flat and security products
Sealants, adhesives and coatings
Seals produced for the aeronautics
industry
Special absorbent coverings and
EMI products
Tires for two-wheeled vehicles
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39
Fluid Transfer Systems
Difference through
innovation
Metallic tube for Rolls Royce
Trent 900 engine
Europe:
France
Germany
Italy
Poland
Spain
United Kingdom
North America:
Mexico
USA
Once again, the good health of the various segments related to
Aerospace and the new anti-fire regulation helped Fluid
Transfer Systems to have a dynamic year in 2005 with a
promising future, thanks to the development of many new
products. Innovation and the development of technologies, an
absolute imperative when dealing with the constant changes to
the market.
South America:
Brazil
Asia and other country:
China
Tunisia
Markets
Air ducting
Trent 1000 engine (start-up) – Rolls Royce
At Hutchinson Industry Fluid Transfer Systems in Joué-lès-Tours (France), the year
was marked by the quick development of the automobile markets, together with
improved operational performances. The new line of silicone hoses, intended for
turbo diesel engines, experienced excellent growth. A good business level was
also seen in the production for the heavy vehicles market. We also note that the test
lab, the function of which is to internally test the many initiated product
developments, was enlarged in 2005.
Diesel turbo Engine
The business of ESPA - Fleury-les-Aubrais (France) -, got a significant
boost by the strong rebound of aeronautics after the difficult years that
followed on September, 11: increase of the production rhythms of Airbus
and signing of new contracts for the A380. As such, the unit began the
production of new definitions of light weight sheaths. New products, lighter
and more resistant to fire,
compliant with the new “fire
regulation” imposed by the
aeronautics authorities and
applicable as of September
2005.
Light sheath
Establishments
Dynamism in aeronautics, a slower industrial sector
Another important axis: the prototyping of the high temperature hose Linkeo®
for 17 customers around the world. Many tests were begun in 2005, by
manufacturers of trucks, buses and agricultural machinery. A very encouraging
preliminary phase that should lead to many applications.
Finally, in the railway domain, we note the signing of a significant contract for
the upgrading of the XTER. The enlargement of the ESPA site, begun in 2004, was
completed in 2005. It was in response to a requirement: the industrialization of a
high temperature flexible uncoupler for the aeronautics and industrial markets.
Still in the area of aeronautics, the year was marked by the development of air
intake systems intended for the heating of cabins. With leading-edge technologies
and new products, innovation is clearly the department’s bet for its future
development.
Automotive
Aerospace
Construction, civil works
Defense and Security
Energy, chemical
General industry
Heavy Vehicles
Navy
Offshore
Railway
Sports and leisure
Products
Body parts
Control and display Systems
Couplings, antivibration linkages
Profiles
Passive and active suspensions
Pipes and hoses
Reduction of noise and vibrations
Run flat and security products
Sealants, adhesives and coatings
Seals produced for the aeronautics
industry
Special absorbent coverings and
EMI products
Tires for two-wheeled vehicles
“Innovation and development
of leading-edge technologies.”
Silicon hoses
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41
Defense and Security
Strong growth in
the United States
A year of strong growth in the United States, 2005 was also a
good year in Europe. Under the sign of innovation and research,
there was considerable development in the activity of aluminum
wheels fitted on military or civilian vehicles, as well as the run
flat device and associated assembly service.
Run flat
In 2005, Hutchinson maintained a high level of production of its VFI run flat devices
intended for Hummer vehicles, and of the associated assembly services that
include wheels and tires. The production of the equipment for the Stryker infantry
vehicles, marked by the assembly of aluminum wheel/VFI was also sustained.
Strong growth also in the aluminum wheels activity, with a complete range of
products for military armored vehicles and civilian vehicles, as well as the Rock
Monster range for SUV (Sport Utility
Vehicle) cars. Rodgard’s (USA) industrial
activity of the transformation of polymers
and thermoplastic resins also increased
sharply. Lastly, in Europe, we note the
successful exports of the infantry vehicle
from the Finnish manufacture Patria equipped with our system - now in service
with the Polish army.
Rock Monster
“Active development
of the new generation MRF
run flat device.”
Sealants, Adhesives and Coatings
Strong development
in the East
In the aeronautics domain, 2005 saw the signing
of a 5-year contract between Airbus and LJF.
In the automotive sector, the key event was the
SealCap boots
series start-up of the Nuova Punto, for which
LFJ is providing the 22 hollow points made of inflating sealant that provide the
vehicle’s soundproofing. Also of note is the development of our adhesives range
for windshields on the after-sales market in the United States and Canada. Finally,
in terms of glass insulation, sales developed strongly to countries in the East
(Russia, Latvia), as well as to the major Chinese glass manufacturers. Lastly,
we note the first certification of the mercury-free polyurethane sealant in Japan,
for the double-glazing market.
Profiles
Good behavior thanks
to innovation
In a favorable context for its growth, the Fit Profiles Department set itself a
challenge for 2005: to become the European leader in sealing systems in its
strategic markets, particularly the construction market. A new organization was
added to back up this 5-year corporate project, and an initial step was taken in the
direction of operational excellence, with the doubling of the production capacity of
its Végaprène® mixtures workshop. As such, four
innovative products were presented at the 2005
Batimat Trade Fair: “PTS dynamique”, glass seal for
PVC window and door frames; “Surfit”, a sliding
seal for sliding doors (PVC and aluminum frames);
“Easy Fit”, glass seal for aluminum frames and
Végaprène® workshop “Spring effect” glass seal for wooden frames.
Establishments
Europe:
France
Germany
Italy
Poland
Spain
United Kingdom
North America:
Mexico
USA
South America:
Brazil
Asia and other country:
China
Tunisia
Markets
Automotive
Aerospace
Construction, civil works
Defense and Security
Energy, chemical
General industry
Heavy Vehicles
Navy
Offshore
Railway
Sports and leisure
Products
Body parts
Control and display Systems
Couplings, antivibration linkages
Profiles
Passive and active suspensions
Pipes and hoses
Reduction of noise and vibrations
Run flat and security products
Sealants, adhesives and coatings
Seals produced for the aeronautics
industry
Special absorbent coverings and
EMI products
Tires for two-wheeled vehicles
Moirans (France)
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Rock Monster wheel
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42
Markets/
Aerospace & Industry
Control and Display Systems
Accompanying
modernization
A340 cockpit
In 2005, Claropan - the Man/Machine
interface specialist that designs and
produces control panels and “around the
screen” keyboards - worked to develop a
certain number of priority axis: working
with Airbus to ramp up the rhythm of the
A330 and A340 programs, development of
business deals for aircraft conversion and
cockpit modernization programs (with
screens taking on an ever greater
Illuminated keyboard for avionics
equipment
importance). In the railway sector, the year
was marked by train modernization programs with the commissioning of traveler
information systems that include destination displays.
Body Parts
Business maintained
With a basically unchanged sales figure relative to last year, the business line
kept up its rhythm on a good level. The Hutchinson body parts plant in
Ingrandes (France) increased its production rhythm for the front and rear bumpers
for the Opel Tigra Twin Top (210 vehicles per day until July). Intended for the same
vehicle, the production of a 5-part kit also began in 2005. These parts are delivered
painted, in body tone. Also of note is the production of new parts for the
Magnum PNG vehicle from Renault Trucks. One of the specialties of the
Ingrandes plant is its ability to paint small and medium-sized parts, thanks
to a robotic paint line.
Magnum Renault
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Tires
Riding the wave
of new products
Establishments
Riding the wave of new sports - freeride -, Hutchinson
consolidated its brand image in 2005. An image and technical
aspect that are very popular in another arena: that of the Tour
de France.
North America:
Mexico
USA
Europe:
France
Germany
Italy
Poland
Spain
United Kingdom
South America:
Brazil
Asia and other country:
China
Tunisia
On a commercial level, the Asia/United States
development policy was continued with the setup of forward stocks, one in Taichung (Taiwan)
and the other in Trenton (USA), thereby
providing us with better responsiveness.
In 2005, thanks to the contest of Hutchinson’s
best Pro Teams partners, new product ranges
were developed in the promising area of
Freeride, such as the “Piranha” tire (ultra-light
with a very rolling profile) and “Barracuda”
(with raised studs for maximum adherence).
These much-appreciated innovations make
Hutchinson a reference brand in mountain biking, Cross Country and Freeride.
With the Team Series 2005 and the “Special
Edition Tour de France” tire, Hutchinson has also
scored a major victory. Officially accredited by the
Tour de France organizing company for the next
three years, this tire was immediately put into
production on the Montargis site, and it is now
used by the world’s most famous professional
racers.
“Piranha” tire
Markets
Automotive
Aerospace
Construction, civil works
Defense and Security
Energy, chemical
General industry
Heavy Vehicles
Navy
Offshore
Railway
Sports and leisure
Products
Body parts
Control and display Systems
Couplings, antivibration linkages
Profiles
Passive and active suspensions
Pipes and hoses
Reduction of noise and vibrations
Run flat and security products
Sealants, adhesives and coatings
Seals produced for the aeronautics
industry
Special absorbent coverings and
EMI products
Tires for two-wheeled vehicles
“The brand of the
Tour de France champions.”
“Tour de France” tire
>
SÃO PAULO
CONSUMER PRODUCTS
Gustavo and
his little Ronaldo.
Distinctive mark:
happy...
Every day, like millions of
parents around the world,
Gustavo devotes loving attention
to his child. In São Paulo,
like elsewhere, gentleness,
well-being and safety are
the important parameters.
At Hutchinson, we spare no
effort when it comes to creating
materials that are the best
suited and safest for happiness
at home...
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46
Markets/
47
Consumer Products
Innovation,
the answer to competition
G-Vir®, a true success
for Hutchinson and its
capacity for innovation
Relatively morose climate for large-scale
consumption in Europe. With ever greater
competition from Hard Discount, strong
pressure on prices and new cultural habits,
there have been many changes in this
sector that is sensitive to fluctuations
in the economy and household confidence.
Thanks to the disinfectant liquid in
its central layer, the high technology
G-Vir® surgical glove provides dynamic
protection against contamination by
viruses such as HIV or Hepatitis C.
Its excellent reception by healthcare
professionals and high order renewal
rate are proof of its quality.
Establishments (Sites)
Europe:
• Austria (1)
• Czech Republic (2)
• France (6)
• Germany (1)
• Hungary (1)
• Italy (1)
• Netherlands (1)
• Poland (1)
• Slovakia (1)
• Slovenia (1)
• Spain (3)
• United Kingdom (1)
North America:
• Mexico (2)
• USA (1)
South America:
• Argentina (1)
• Brazil (2)
• Uruguay (1)
Asia:
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• China (1)
• Malaysia (3)
Caesar
In 2005, the business saw its sales figure drop by 1.5%, even though its
market share showed an overall improvement.
In 2005, the Consumer Products market was marked by a trend of
decreasing consumption. With the competition from Hard Discount and
generic brands, new consumption methods continue to assert themselves:
a challenge for manufacturers and distributors who, more than ever, must
focus on innovation.
Contrasted demographics
In the Baby Care domain, while the birth rate remained satisfactory in
France and Ireland, the low birthrate in Germany is affecting the market,
even though some of our products have been very successful on that side
of the Rhine. Elsewhere in the world, such as Latin America and Asia, a
strong demography provides for greater visibility. Still in Baby Care, but also
in Home Care, 2005 was a difficult year for major French distributors,
which felt the full force of the Hard Discount wave.
International growth
While the French and European markets - deprived of economic growth are lacking in strong dynamism, new horizons have opened up, notably
in South America, where personal hygiene products - riding on the
growing cult of the body, notably in Brazil - developed strongly; this
was also the case in Asian countries, such as Thailand, and also in
Eastern Europe. Major cultural trends are also being traced out, such as
the return to breast-feeding, an area that Hutchinson knows well thanks
to its technological advance and the marketing of certain accessories
(breast-pump, soothing pillow...).
In the Health sector, even more than elsewhere, research and innovation
are fundamental factors in differentiation and capturing market share,
where Hutchinson has these assets in abundance.
“Added value
products within
reach of everyone,
a Hutchinson
challenge.”
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48
Markets/
Consumer Products
49
Establishments
Home Care
Professional Care
Products with a
high media impact
New products
and promising
markets
Building on the impact of its advertising campaigns in
Europe and on its commercial successes, the Home Care Activity
also continued its targeted development in Southeast Asia,
the Maghreb and the Middle East.
"Extra Strong" and "Double Use" sponges
(South East Asia range)
"Sensitive" glove
(Maghreb-Middle East range)
In 2005, the Home Care Activity was marked by the success of the Spontex®
campaign, which finished in 2nd place in the French Ipsos Awards, for the year’s
most efficient advertising commercials. Developed in 1999, the character of Ernie
- the hero and scouring hedgehog - has also been used on the packaging
and has had a good media impact in Europe. The award winning commercial was
launched as part of a large-scale media plan (750 TV commercials in France) that
once again uses this image. Its topic: A new product with exclusive technology,
“Gratte-Eponge Stop Graisse”. Its principle: An “oleophobic” treatment prevents
grease and dirt from becoming embedded, while also providing a commercial
success.
Another important axis, the improvement of the glove range with the successful
launch of a new product: the Mapa Spontex “Moove” glove. This glove, with its
excellent price-quality ratio, offers remarkable tactile sensitivity and great
resistance thanks to the “Flex Comfort” technology that makes it stand out from
ordinary household cleaning gloves.
The gloves and scouring market shares reached record levels in Europe,
particularly in France, Great Britain and Spain.
Topchem®
glove
With BioPro® and Topchem®, 2 new products launched on the
market, the Professional Care Activity had promising successes
in 2005. Also ongoing is a diversification of its efforts towards
countries in the East.
The Professional Care Activity was
marked by two major launches: the
BioPro® and Topchem® gloves. A
derivative of the G-Vir® medical
glove, the BioPro® glove is intended
to protect certain professions
against risks of viruses such as HIV
or Hepatitis C. Launched and
BioPro® glove
referenced with Mapa Professional
customers at the end of 2005, notably companies handling hospital waste, this
unique glove on the market was very favorably received, and it will now also be
used by Italian gendarmes and prison guards. The Topchem® glove, for its part,
offers genuine protection against possible injury from a dozen chemical products.
This glove, intended for intervention professions (firemen, security…), is also
resistant to radiolysis, and its sales developed strongly in 2005 for the company
Cogema.
Also of note, for the professional gloves (“cold gloves”) had a good start-up in
Eastern Europe, notably in Russia but also in the Czech Republic and Hungary.
“Ernie the hedgehog,
ambassador of added
value products.”
“Leading-edge technology
for professions at risk.”
Europe:
Austria
Czech Republic
France
Germany
Hungary
Italy
Netherlands
Poland
Slovakia
Slovenia
Spain
United Kingdom
North America:
Mexico
USA
South America:
Argentina
Brazil
Uruguay
Asia:
China
Malaysia
Brands:
Billy Boy®
Blausiegel
Calypso®
Frömms
G-Vir®
Mapa®
Mapa Professionnel
Mucambo®
Nuk®
Söke®
Spontex®
Spontex Professionnel
Tigex®
Virulana
Vitomit®
Markets:
Fabric protection
Floor cleaning
Hand protection
(general public and professional)
Health
Personal hygiene products
Scouring
Small infant care
Wiping
Products:
Condoms and lubricants
General public and professional
scouring products
General public and professional
wiping tools (textiles, non-woven,
microfibres, sponge cloths, sponges)
Gloves for household cleaning,
gardening and DIY
Infant toys, accessories for
early-learning, safety, hygiene
and well-being of the baby and
young mother
Linen care products
Medical and surgical gloves
Professional gloves
Sponges for the bath and body care
Teats, soothers, feeding bottles,
child feeding accessories, feeding kit
“Gratte-éponge Stop-graisse”
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"Moove" glove
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Markets/
Consumer Products
51
Establishments
Europe:
Austria
Czech Republic
France
Germany
Hungary
Italy
Netherlands
Poland
Slovakia
Slovenia
Spain
United Kingdom
Baby Care
A true “success story”
In 2005, the “First Choice” feeding bottle continued its
successful advance in Germany. It is now looking to other
markets, and is ready to make its mark on the rest of the world.
In 2005, the Baby Care business was marked by the success of the
“First Choice” feeding bottle in Germany. Launched two years ago,
it has secured a significant market share in that country since
then. More than one in two feeding bottles from the Nuk® brand,
sold in Germany, is now a “First Choice” feeding bottle.
Recommended by professionals, it is recognized as offering
the closest feeling to breast-feeding, and it has been very
popular with mothers. Successfully marketed in a certain
number of European countries, “First Choice” is now ready
to conquer other markets. Nuk® has also developed
strongly in Russia, China and South Africa, and had
a record year in the United States. For its part,
Allègre Puériculture significantly enlarged its plant in
Saint-Etienne (France) as part of its company project
and expansion. Thanks to the Tigex® brand, its
business increased sharply on the French markets,
and in Portugal, thereby confirming its place as the
leader on the small infant care segment.
Breast
pump
North America:
Mexico
USA
South America:
Argentina
Brazil
Uruguay
Asia:
China
Malaysia
Brands:
Calypso® range
Personal Care
“Flagship products”
with recognized quality
“Sisal”
sponge
Billy Boy®
Blausiegel
Calypso®
Frömms
G-Vir®
Mapa®
Mapa Professionnel
Mucambo®
Nuk®
Söke®
Spontex®
Spontex Professionnel
Tigex®
Virulana
Vitomit®
Markets:
Despite a generally sluggish context, especially in Europe,
2005 still saw the confirmation or blossoming of fine successes.
Namely: the Calypso® sponge, the Billy Boy® range of condoms
or the new G-Vir® glove, which is attracting major interest from
healthcare professionals.
Fabric protection
Floor cleaning
Hand protection
(general public and professional)
Health
Personal hygiene products
Scouring
Small infant care
Wiping
Products:
“First Choice” Nuk® baby's bottle
Disposable
teat
“A progressive
technology,
recognized as such.”
Robotic production line for disposable teats
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With significant market shares in Europe, the Calypso range has in recent years
imposed itself as a true reference in the area of natural sponges for the body.
Primarily made from cellulose, the manufacturing process has long been mastered
by Mapa Spontex, the range of sponges has broadened over time, with products
made of sisal hemp or polyurethane foam. Building on these already solid
positions, 2005 provided Hutchinson with very good developments in Brazil and
Southeast Asia, particularly in Thailand, with the referencing by the Watson
company, the world’s largest distributor of cosmetic products.
®
Condoms and lubricants
General public and professional
scouring products
General public and professional
wiping tools (textiles, non-woven,
microfibres, sponge cloths, sponges)
Gloves for household cleaning,
gardening and DIY
Infant toys, accessories for
early-learning, safety, hygiene
and well-being of the baby and
young mother
Linen care products
Medical and surgical gloves
Professional gloves
Sponges for the bath and body care
Teats, soothers, feeding bottles,
child feeding accessories, feeding kit
>
52
Markets/
Consumer Products
Health
For Hutchinson Health, the year was
marked by the sharp increase of the
sales, notably due to the marketing
of the revolutionary technical glove,
the G-Vir®. Launched in 2004, this
high-technology surgical glove provides
dynamic protection against contamination by viruses such as HIV or
Hepatitis C. Referenced in a hundred
or so establishments, including six
University Hospital centers, it has
been favorably received by
healthcare professionals, and
the high rate of repeat orders is
proof of the satisfaction of the users.
G-Vir® glove
“G-Vir®: a clear success
that should continue
internationally.”
On the Condoms market - in which a strong brand image is the true differentiating
criterion - the development has been continuous. Already the leader on the German
market, the Billy Boy® brand successfully extended its range by offering derivative
products. These products, sold in supermarkets, drugstores and perfume shops,
have already captured a market share of more than 25% in barely a few months.
Let us not forget that Mapa® dominates the German condoms market, with
3 brands: Billy Boy®, Fromms and Blausiegel.
"Fromms" range
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ARGENTINA: Hutchinson Argentina SA / Mapa Virulana SAIC. AUSTRIA: Söke Handels. GmbH. BELGIUM:
Paulstra Silentbloc SA. BRAZIL: Hutchinson do Brasil SA / HBA Hutchinson Brasil Automotive LTDA /
Mucambo SA. CHINA: Hutchinson DFEDC Auto Rubber Products Company LTD / Hutchinson DFEDC
Automotive Seals Company LTD / Hutchinson Industrial Rubber Products (Suzhou) Co., LTD / Mapa Baby
Care Company LTD. CZECH REPUBLIC: Hutchinson Sro / Mapa Spontex Sro / Söke Dobrovice spol Sro.
FRANCE: Allègre Puériculture SNC / Barry Controls Aerospace SNC / Le Carde SA / Caoutchoucs
Modernes SAS / Industrielle Desmarquoy SNC / Espa SARL / Facel SNC / Hutchinson Polymers SNC /
Hutchinson Santé SNC / Hutchinson SNC / Hutchinson Flexibles Automobile SNC / Hutchinson SA /
J P R SAS / Le Joint Français SNC / Mapa SNC / Paulstra SNC / Spontex SNC / Techlam SA.
GERMANY: Deutsche Hutchinson GmbH / Mapa Gummi-und Plastikwerke GmbH / Hutchinson GmbH
(Mannheim) / Hutchinson GmbH (Aachen) / Stop-Choc Schwingungstechnik GmbH & Co Kg / Stop-Choc
Schwingungstechnik GmbH. HUNGARY: Söke Hungaria. ITALY: Hutchinson SRL / Mapa Spontex Italia
SPA. MALAYSIA: Mapa (Malaysia) Sdn. Bhd. / Baltex (Malaysia) Sdn. Bhd. / Mapa (Penang) Sdn. Bhd. /
Mapa Gloves Sdn. Bhd. / Mapa Spontex Trading Sdn. Bhd. MALTA: Pamargan Products (Malta) Limited.
MEXICO: Mapa Spontex S.A. de C.V. / Nimex Saltillo SA. de CV. / Hutchinson Seal de Mexico S.A. de C.V. /
Hutchinson Autopartes Mexico SA de CV / Hutchinson Transferencia de Fluidos S.A. de C.V.
NETHERLANDS: Spontex Benelux BV. POLAND: Hutchinson Poland Sp z o.o. / Mapa Spontex
Polska Sp z o.o. PORTUGAL: Hutchinson Porto Tubos Flexiveis, Ltda. / Hutchinson Borrachas de
Portugal Ltda / Borrachas Portalegre Ltda. SLOVAKIA: Söke Slowakei Sro. SLOVENIA: Söke d.o.o.
SPAIN: Hutchinson Industrias del Caucho SA / Hutchinson Palamos SA / Manufacturas Guipuzcoanas
de Caucho y Latex SL - Catelsa / Catelsa-Parets SL / Catelsa-Caceres SA / Industrias Tecnicas de la
Espuma S.L. / Paulstra Iberica SA / LJF Iberica SA / Vibrachoc SA / Mapa Spontex Iberica SA.
SWITZERLAND: Hutchinson Suisse SA. TUNISIA: Compagnie Tunisienne du Caoutchouc SARL.
UNITED KINGDOM: Hutchinson (UK) Limited / Paulstra Limited / Pamargan Products Limited / Mapa UK
Limited / Spontex UK Limited / LJF (UK) Limited / Stop-Choc (UK) Limited / Barry Controls Limited / Barry
Wright (UK) Limited. URUGUAY: Virumetal. USA: Paulstra CRC Corporation / Hutchinson Industries Inc. /
Hutchinson FTS Inc. / Hutchinson Seal Corporation / Stillman Seal Corporation / National O-Ring
Corporation / Spontex Inc. / Advanced Barrier Technologies Inc.- ABT / Hutchinson Sealing Systems
Corporation / Barry Wright Corporation / Barry Controls Corporation / Barry Wright International Corporation.
This document, published by the Communication Department, is printed on environmentally friendly two-sided
coated paper that only contains 50% recycled wood (Freelife satin symbol, 170 gr and 350 gr).
Photo credits: Getty Images (Karen Moskowitz, Erik Dreyer, Toshiko Takahashi and Michel Tcherevkoff)
Corbis (Norbert Schaefer) - Hutchinson.
01 72 29 50 50
Design and production: