MediaInfo Linz-Leonding, may 20th 2010
Banner Batterien. The Power Company • • • •
The 2009/10 financial year sees Banner strengthen its market position Production capacity expansion Well-equipped for the future The contribution of lead-acid battery technology to hybrid vehicles
Banner Batteries looks back to a very successful financial year 2009/10 thanks to record sales of 3.8 million starter batteries. This year will see investments of EUR 15 million in additional plant and warehousing capacity. These innovations will add up to 20 per cent more production capacity, needed for AGM batteries for micro-hybrid drives. The European automotive industry is currently putting great faith in this technology helping to decrease fuel and CO2 emissions. The 2009/10 financial year sees Banner strengthen its market position Following twelve months of crisis-related stagnation, during the past financial year 2009/10 (April 1, 2009 – March 31, 2010) Banner was able to raise its sales to 3.8 million starter batteries, which represented an increase of 200,000 over the preceding year. Business with automotive manufacturers developed in an extremely positive manner and additional orders were obtained from both the VW Group and BMW, Banner’s two largest customers. Replacement batteries continue to provide the largest contribution to sales and after the generally low-key business trend in spring/summer, which derived from the economic crisis and the partially dramatic downturn in the commercial vehicle and leisure sectors, Banner was able to profit from the long, cold winter throughout Europe. Indeed, despite estimated market volume shrinkage of 10 per cent, or eight million starter batteries in Europe, Banner increased its sales and thus actually consolidated its no.4 market ranking. Partly massive devaluations of eastern European currencies against the euro had a negative effect on business development and during the past financial year, the drive and stationary battery business area was characterised by a marked 10 per cent downturn. The autumn of 2008 saw a huge slump in European investment, especially in the traction segment (stackers, lifting platforms, etc.), and a slow recovery has only commenced in recent months. Contact: Günther Lemmerer, Marketing and company spokesman Banner GmbH Banner Straße 1;4021 Linz-Leonding (A) Tel. +43/(0)732/38 88 – 21550; Fax DW 61550 Mobil +43/(0)676/873 81 550 E-Mail: guenther.lemmerer@bannerbatterien.com www.bannerbatterien.com
MediaInfo Total business area sales revenues in the 2009/10 financial year amounted to EUR 202 million, which meant that Banner was able to virtually repeat its result from the preceding year (EUR 201 million). The product mix had a positive effect on sales, due to a marked increase in the number of high-quality starter batteries sold in general and AGM batteries in particular. Conversely, the economies derived from lower costs for lead as opposed to the previous year were passed on to the customers in the form of reduced prices. As at the closing date of March 31, 2010, the Banner group employed a workforce of 710 (20 more than in the previous year), of which 460 are located at the production centre in Leonding. The recruitment of this additional personnel was possible due to an extended shift model and the start-up of a electrode production process. Andreas Bawart: “I am most satisfied with our performance during the 2009/10 financial year. In view of the crisis and the difficult general conditions in the European market, we planned on a conservative basis. We were then able to take advantage of the opportunities in the OEM area due to our flexible production. At the same time, throughout what was a severe and lengthy winter, we also managed to fully satisfy our retrofitting customers with regard to reliability and delivery capacity. Indeed, much praise is due to our employees, who stand out both due to their professional and personal qualities.” Production capacity expansion Alone the calendar year 2010 will see investments of EUR 15 million in additional plant and warehousing capacity. The extension to the finished products store for the accommodation of roughly another 3,500 pallets has already been virtually concluded and as a result, space will be available for up to 200,000 extra batteries. The summer will also see the installation of an additional battery assembly line and the simultaneous expansion of the existing finishing plant for AGM batteries. Moreover, a completely new finishing plant is also to be installed. These innovations mean that in the 2011 calendar year up to 20 per cent more production capacity should be available. Above all, this is needed for AGM batteries, as the 2010 output is virtually sold out. A confident Andreas Bawart: “This year we will sell around 300,000 AGM batteries and in 2011 we are optimistic that we can double the sales of this product line.” The late autumn of 2009 saw an increase in pre-production capacity as a result of the commissioning of a new, highly automated plate production line. The “ConCast” process employed is already in serial operation at our joint venture partner, East Penn/USA and allows the manufacture of negative electrodes with minimal defect toContact: Günther Lemmerer, Marketing and company spokesman Banner GmbH Banner Straße 1;4021 Linz-Leonding (A) Tel. +43/(0)732/38 88 – 21550; Fax DW 61550 Mobil +43/(0)676/873 81 550 E-Mail: guenther.lemmerer@bannerbatterien.com www.bannerbatterien.com
MediaInfo lerances and high productivity. These plates are currently used in standard car batteries and in future will also be employed for AGM batteries. Further investments in the pasting and oxide production areas are to follow in the course of the current financial year. Thomas Bawart: “We are very pleased that we have been able to complete this expansion step at the plant in Linz-Leonding. Here we have ideal production conditions and can dispose over a highly qualified workforce. We are also able to rely on the support of the local authorities and our neighbours.” The planned plant enlargements will also create employment for another 25-30 people at Banner by 2011. Well-equipped for the future The Banner Group’s main market is continental Europe where it attains over 95 per cent of its sales revenues. At present, Banner is not represented by its own sales partners in the major Ukrainian and Turkish markets and one task during the current year is to close this gap. The successful strategy of founding group sales companies in high potential markets used to date is about to be continued and the corresponding feasibility studies are currently being completed. However, the foundation of new sales companies is not planned for this year. As far as the market climate is concerned, Andreas Bawart is cautious: “We anticipate that following the massive downturns in the 2008-2009 period, this year the European starter battery market will remain stable at a low level. The scrap premiums on used cars, which were paid in many European states, have removed a large number of old vehicles from the roads and rejuvenated vehicle fleets with the result that the potential for replacement batteries has been reduced. In addition, the average life of vehicle starter batteries is rising from its present level of 48 months in the direction of an estimated 52 months. Nevertheless, the demand for truck batteries should improve slightly during the year and at present temporarily mothballed vehicles are being reactivated, which frequently involves a battery change.” Andreas Bawart: “This year our target must be to pass the 4 million starter battery mark. We are optimistic that in spite of the continuing tensions in the market, we can nonetheless capture the necessary additional sales.” At present, Banner is working on the design of a new starter battery for leading commercial vehicle manufacturers with the aim of providing a marked increase in customer advantages with regard to maintenance frequency and operational safety. This product is to make its public debut in September at Europe’s leading trade fair for automotive sub-suppliers, the Automechanika Frankfurt 2010, and will be available on the market in the spring of 2011. Contact: Günther Lemmerer, Marketing and company spokesman Banner GmbH Banner Straße 1;4021 Linz-Leonding (A) Tel. +43/(0)732/38 88 – 21550; Fax DW 61550 Mobil +43/(0)676/873 81 550 E-Mail: guenther.lemmerer@bannerbatterien.com www.bannerbatterien.com
MediaInfo In addition to its joint venture with the battery manufacturer East Penn/USA, in 2009 Banner entered into a technical cooperation with the Acumuladores Moura S.A./Brazil company, which is the market leader in the South American starter battery market and is also a family-owned enterprise. In addition to the joint solution of technical questions, this cooperation also strengthens Banner’s ties with the European vehicle manufacturers operating production capacity in Latin America. Moreover, from the summer of 2010, Banner is to assume the sales of Moura batteries in the UK. The contribution of lead-acid battery technology to hybrid vehicles From a current technical perspective lead-acid, nickel-metal hydride and lithium ion batteries are suitable for the supply of hybrid applications with energy on a serial production basis. The strengths of the lead-acid battery in the automotive sector lie in the areas of cost, reliability/safety, environment/recycling and industrial manufacture. By contrast, lithium-ion technology scores with regard to performance and energy density, but remains some distance away from economic, large-scale production. In the opinion of Banner’s R&D engineers, the lead-acid variant in combination with advanced AGM technology constitutes the most attractive solution for micro-hybrid concepts. By contrast, at present the nickel-metal hydride battery dominates in the full-hybrid vehicle area. Nevertheless, Banner’s experts see major potential for lithium-ion technology in this regard. Thomas Bawart: “In our estimation full-hybrid solutions are a transitional solution that will be superseded by entirely electrical vehicles. For certain types of mobility requirement, this will soon be an intelligent alternative, although the combustion engine will not be replaced in the coming decades.” The European automotive industry is currently putting great faith in micro-hybrid drives with start-stop systems. In 2009, some 2.5 million vehicles of this type were manufactured and fitted with AGM batteries. After BMW, VW and Mercedes are supplying an increasing number of vehicles as micro-hybrids and other European manufacturers are certain to follow. Banner anticipates that by 2015, approximately 50-70 per cent of all new vehicles will be equipped with an AGM battery. As Thomas Bawart concludes: “For the European automotive industry, AGM technology today represents the most attractive and cost-efficient energy solution to the problem of reducing CO2 emissions. A VW Polo BlueMotion TDI with 55kW has emissions of 87g/km, which are lower than those offered by a full-hybrid Toyota Prius, which has 89g/km.” At the moment, Banner has a number of development projects running, which are aimed at the further optimisation of the AGM battery. The goal is to use perfected cell design in order to improve the ratio of additives to active mass and to also enhance Contact: Günther Lemmerer, Marketing and company spokesman Banner GmbH Banner Straße 1;4021 Linz-Leonding (A) Tel. +43/(0)732/38 88 – 21550; Fax DW 61550 Mobil +43/(0)676/873 81 550 E-Mail: guenther.lemmerer@bannerbatterien.com www.bannerbatterien.com
MediaInfo performance intake and output by means of various design measures. Such a product will enable customers to recover even more brake energy and also employ the battery for torque support in a mild-hybrid application. Banner does not have its own development project in the lithium-ion technology field at present, but via its global competence network is participating in know-how transfers relating to alternative battery systems. Banner GmbH is an innovative, steadily expanding producer of top quality starter batteries. The company, which is based in Linz, Austria, has been manufacturing batteries for all types of vehicles since 1937. The family-owned firm, which is headed by Andreas Bawart and Thomas Bawart, employs a workforce of around 710 across Europe. Banner produces and sells over 3.8 million starter batteries annually. In other words, Banner numbers among the oldest, most experienced and important brands in the battery field. Banner batteries are used for the first fitting of numerous models from BMW, Chrysler, Mitsubishi, Volvo, VW, Scania, Liebherr, MAN, Dethleffs, Kässbohrer and Jungheinrich. In Austria, Germany, Switzerland, France, the Netherlands, the UK, Denmark, Poland, the Czech and Slovak Republics, Hungary, Russia, Romania and Bulgaria, sales take place via Group companies with a total of 29 branches. Moreover, Banner products are sold in a further 40 European, African and Asian states via direct importers. Future-oriented technology and outstanding quality underline the international reputation of these exemplary products with “buffalo power”, which are also characterised by the Banner logo. Further information and photos are available under: www.bannerbatterien.com
Contact: Günther Lemmerer, Marketing and company spokesman Banner GmbH Banner Straße 1;4021 Linz-Leonding (A) Tel. +43/(0)732/38 88 – 21550; Fax DW 61550 Mobil +43/(0)676/873 81 550 E-Mail: guenther.lemmerer@bannerbatterien.com www.bannerbatterien.com