We can take the heat Bodycote

WE CAN TAKE THE HEAT

As the world’s leading supplier of thermal processing services, UK-based Bodycote is proud to support a large number of multinational businesses and niche players across industry sectors. Emma-Jane Batey spoke to the central and northern Europe president, Jan Elwart, to see how the company is geared up for continued success.

Established in 1923 and based in Macclesfield in the north of England, Bodycote has steadily grown to become the world’s leading provider of thermal processing systems. Initially founded as a textile business in the heart of the UK’s flourishing textile industry, the Bodycote family utilised their entrepreneurial skills right from the start. Its strategic development toward the increasingly vital industrial requirements of the region and the country came in 1979 when the company decided to focus more on industrial applications, with tactical acquisitions including a heat treatment company and huge investment boosting its overall capabilities.

In the past 40-plus years, Bodycote has continued this dedication to industrial applications and indeed its appreciation of the necessity of investment in order to stay at the top of its game. central and northern Europe president, Jan Elwart pointed out, “We have grown to become a global business with more than 170 facilities in 27 countries worldwide, so there are very few territories where Bodycote does not have a strong presence. We have long seen the value of investment in order to maintain and enhance our impressive market-leading position, and we provide a vital link in the manufacturing process for virtually all sectors.”

Leading the way

Today, as the world’s leading supplier of heat treatments, metal joining, hot isostatic pressing and surface technology, Bodycote has extensive experience in supporting large multinational customers and their supply chains, as well as working closely with a number of niche local specialists. With a strong presence across a range of industrial sectors, the bulk of Bodycote’s activities (42 per cent) come from what it describes as ‘general industry’, which includes construction, mining and medical requirements such as implants, drills and tools. A further 26 per cent comes from the automotive industry, 20 per cent from aerospace and the remaining 12 per cent from the energy industry.

In terms of projected growth, both the automotive and energy sectors represent clear positive targets for the company. Mr Elwart explained, “We expect the growth rate for the automotive industry in 2012 to be tremendous and, as a valued supplier of heat treatments to the industry, we will be able to benefit from that growth. One key reason for this is that new technologies and new legislation regarding the reduction of CO2 emissions for new vehicles will continue to be a big task for the industry, but while the focus has perhaps been on developing and manufacturing small ecoefficient cars up until now, many factors are pointing towards a growing trend for larger, more practical family cars that are also meeting these strict rules on emissions. Heat treatment is an excellent tool for the required technological manufacturing on such models, so we are in the perfect position to utilise the boom.”

In terms of the expected growth in the energy sector, Bodycote will also use its experience and know-how to add value to this burgeoning industry. Mr Elwart added, “There is a continuing growing demand for cleaner, greener types of energy. Many countries, particularly in Europe, are seemingly moving away from nuclear energy towards other forms of renewable, sustainable energy, so our strong presence in the heat treatment

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Ready to benefit from growth

Stable growth is also achieved from the aerospace industry, particularly as it has such long lead times. With Bodycote’s sales benefiting from the fact that the aerospace industry orders new planes around three to five years in advance, this also represents a valuable stability for the company’s capacity.

Future growth for Bodycote will come from both organic expansion and strategic acquisitions. Some years ago it established a joint venture with a respected automotive heat treatment company in a former German city in Romania and recently this has become a wholly owned subsidiary; new facilities are planned for the USA and Asia in the coming months, joining a new location in Mexico which opened in 2011.

Mr Elwart is justifiably positive about 2012 and beyond. He concluded, “Bodycote is in a very healthy financial position and we have bounded out of the recession of 2008 with renewed vigour. Our client base includes some of the world’s leading multinational organisations in their fields and we know that our expertise and knowhow are second to none. Together with our strategic understanding of the growth markets and our valuable position within those markets, we are confident that 2012 will bring steady growth and a solid return on our investments.” n