Annual report
Follow the Sioen environmental friendly ‘green common thread’ throughout this annual report.
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CONTENT letter to the shareholders P. 4-5 our profile – our business P. 6
OUR MISSION, STRATEGIE AND FUTURE Our Business statement – Our Company slogan P. 8 Our Areas of expertise P. 9 Our Core values – Our Strengths P. 10 Our Commitments P. 11 Our Future focus P. 12
THE SIOEN GROUP Vertical Integration P. 14 Diversification P. 15 Innovation P. 16 Research and Development P. 16-22 Health and Safety P. 23 Environment P. 24 Quality P. 25 Human resources P. 26 Sioen in the world P. 27-28
THE SIOEN DIVISIONS Coating division P. 30-37 Chemicals division P. 38-42 Apparel division P. 43-49 Industrial applications division P. 50-54
SHAREHOLDERS Report of the Board of Directors GROUP STRUCTURE
part II P. 5 part II P. 9
share information
part II P. 10
CORPORATE GOVERNANCE
part II P. 12
General Information
part II P. 16
FINANCIAL OVERVIEW
part II P. 20
ADDRESSES
part II P. 78
DEFINITIONS
part II P. 80
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LETTER TO THE SHAREHOLDERS
Dear Shareholder,
markets - to pump up sales and production. Despite this, from the middle of last year we had to begin restructuring and introducing economic unemployment.
A year of extremes Total group sales in 2008 amounted to EUR 349.4 2008 was a year of extremes, of high peaks and deep
million, compared with EUR 380.3 million in 2007 (-8%).
troughs.
EBITDA and cash flow amounted to EUR 37.7 million (10.8% of sales) and EUR 24.2 million respectively.
The year started with top months, in which we beat all
After-tax profit was EUR 3.4 million, compared with EUR
records. Our spinning mill was never as productive, the
19.2 million in 2007.
weaving mills were running at full capacity, production could not keep up with sales of coated technical
innovating the future
textiles, the chemicals department continued to grow, technical protective clothing sales were climbing …
The results and explanations by division can be found in
everything was indicating to another top year.
the Report of the Board of Directors on page 5 of the financial part of this annual report.
No one could have predicted that a year that had got off to such a good start would end in a minor key. From
We cannot emphasize enough the importance of
the second half onwards, sales slackened, margins fell.
research and development. Today everybody uses the
Stock markets tumbled right across the world. Compa-
word innovation. It has become a fashionable word, at
nies were revising their growth forecasts daily. Slow-
times a magic word. Not so at Sioen. Since founding the
down turned into recession.
company in 1960 we have lived by the motto ‘to stand still is to go backwards’. This is innovation avant la lettre.
Sioen Industries has swum through many troubled waters in the past – the fire that decimated our
Introducing new ideas, products, services and proces-
company in the early 1990s, the slowing of growth
ses- approaching things in new ways, thinking out of the
in 2002, sharp Chinese competition in recent years.
box. This is our daily bread at Sioen, at every level of our
All these situations have left us extra-well armed for
company.
the future.
In this annual report we give a number of concrete examples of our recent research and development
Measures
results (see p. 16-22). These are always to a greater or lesser extent the outcome of good teamwork between
In this poor economic climate we continue to look for
sales, R&D, production, marketing, procurement and
alternatives - new applications, new products and new
senior management.
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Green
With confidence
In this annual report we would also like to introduce you
What will happen with the world economy in the
to our ‘green’ side. Ecological projects, products, plans
coming years is largely a matter of conjecture.
and developments form a red thread through the
Economists are assuming that the slowdown will, in
present report.
the most favourable of circumstances, last for 4 to 6 quarters. Sioen Industries is taking full account of these
Not because they are ‘in’, but because the environment
predictions and has already taken the necessary
and safety are close to our hearts. Our company slogan
decisions and measures.
for many years now has been ‘Protection through Innovation’. We produce products that protect human
Today we need to have confidence in our own strengths:
beings, their environment and their possessions and do
We are a flexible company, with state-of-the-art
so in an environmentally friendly way.
production equipment, unique cost-efficient vertically integrated processes, enthusiastic employees and solid
In our business statement (see p. 8) we say that “we wish
customer relations.
to develop environmentally friendly coating and processing technologies and in so doing set the
Our business statement is clear, our strategy well
standard for green safety and protective products, while
thought-through, our business slogan powerful.
creating sustainable, profitable growth.” The green ‘red thread’ in this annual report testifies that we are working hard at this.
Jean-Jacques Sioen
Michele Sioen
Chairman of the Board
CEO
of Directors
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OUR PROFILE
OUR BUSINESS
Sioen Industries is a diversified stock quoted group
Sioen Industries is:
with an extensive portfolio of products and
p The world leader in coated technical textiles
activities: spinning, weaving and coating, manu-
p Strong specialisation in high end technical apparel
facturing of clothing, production of fine chemicals
p Specialist in fine chemicals
and processing of technical textiles.
p Global player in the processing of technical textiles
Vertical and horizontal integration, diversification and permanent growth have driven us since 1960.
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SIOEN MISSION, STRATEGY AND FUTURE
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OUR BUSINESS STATEMENT We will continuously optimise the conversion of p chemicals p customised technical fabrics p foil sheets
through our unique and cost effective vertically integrated process capabilities, up to and including p the transformation into finished products.
We will focus on global B-to-B customers and professional users in order to assure continuity, risk-spreading and profitable growth for all our stakeholders. We will do the above in a dynamic environment, through flexible and quick response to the market, focussed R&D efforts and a global sales and production presence. In addition, we will develop environmental friendly coating and converting technologies to set a winning standard for primarily green safety and protective products to create sustainable profitable growth.
Our company slogan ‘Protection through innovation’
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Our areas of expertise R&D We must excel at R&D collaboration across the entire organisation in order to benefit from and optimise the knowledge/expertise and to develop new profitable growth products/solutions and process cost savings.
Production engineering We must excel at continuous improvement of our production processes and know-how to keep and make them state-of-the-art, cost effective and flexible and to achieve the right quality requirements.
Market intelligence We must excel at detecting and understanding current and future market needs in order to develop customised solutions and bring them timely (faster than competition) to the market.
Global growth coordination We must excel at integrating and coordinating our new sales force and production investments in order to maximise their effectiveness for the group and to avoid overlap or wasted resources.
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Our core values All Sioen companies have as their core values integrity, fairness, honesty and respect in all aspects of their business. Sioen Industries expects the same from all its business partners.
Our strengths p Vertical integration, making us independent of outside suppliers,
giving us a major technical advantage and better R&D. p Technical expertise. Sioen products predominate where techni-
cal specifications are decisive. p A “hands-on�, unbureaucratic corporate culture.
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Our commitments Commitment to our customers We have to provide our customers with high quality products and services at competitive prices. We have to meet our customers’ demands and win and maintain customers’ trust.
Commitment to our employees We have to offer our employees an attractive working environment where there is room for personal development, creativity, responsibility, and career opportunities.
Commitment to the company’s shareholders We have to protect their investment and every year provide them with an acceptable return.
Commitment to our business partners We have to build partnerships and mutual beneficial relationships with our suppliers and contractors.
Commitment to society Sioen companies work in a wide variety of changing social, political and economical environments. We have to conduct business responsibly by observing the laws, supporting human rights, respecting the environment and by creating additional jobs.
Sample of Sioen technical clothing
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Our Future focus If we want to realise our goals and live up to our business statement, we must decide what our focus will be regarding the products we offer, the customer and end-users and the geographic areas we want to cover.
Our future product offering
Our future geographic areas
We will focus on:
We will expand our sales to:
p customised products
p North America
p high end, specialised products
p STAN-countries
p recyclable/recycled products
p India
p integrated features
Our customer/end-user profiles We will focus on: p partnerships p new sales channels p niche specialists in technical markets p administration and tenders
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THE SIOEN GROUP
Part of the Sioen direct coating line
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Vertical integration As a fully integrated group, Sioen covers every stage of the production and conversion of coated textiles, from spinning to weaving to coating and on to specialist processing. This includes all five main coating processes, each with its own applications and markets.
Base material 1.
2.
3.
Spinning of polyester high-tenacity yarns
Weaving of the yarn into various base textiles
Preparation of colourings (pigment pastes, varnishes, inks and dyes) = Sioen Chemicals
COATING STAGE 4. Application of coatings, using five different technologies (direct coating, transfer coating, online coating, extrusion coating, calendering)
FINISHING 5.
6.
7.
Coated fabrics sold as semifinished products to external manufacturers
Apparel Division - Production of protective clothing for industrial and leisure use
Industrial Applications Division – Processing of heavy-duty coated textiles for specialist markets
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diversification Sioen products play an important part in our daily lives, protecting us and our goods and generally improving our quality of life. Throughout the years we have established a wide range of products through internal development of new products and markets, acquisitions and licensing of new technologies. This diversification allowed us to spread the risk, create growth, exploit our know-how and use the available resources and capacities more efficiently. Sioen provides, amongst others, filters to treat the water we drink, side curtains on trucks, publicity banners, mattress covers and protective clothing for medics, firefighters, police forces, soldiers and pilots. Sioen products strengthen our roads, improve the safety and comfort of the cars we drive, and allow us to enjoy outdoor sports in all weathers.
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Innovation Innovation starts from a constant desire to be out front, exploring new territories, striking out in new directions. It is spurred on by competition: if we don’t innovate, others will. It requires us to be entrepreneurial and take calculated risks. “Protection through Innovation” is Sioen’s corporate slogan. Innovation keeps us ahead of the market with new products, processes and applications based on our core expertise.
Research & Development Sioen has a concerted focus on knowledge, innovation and creativity: on new materials, new production processes, new services, new niches, new markets and new requirements. Knowledge is our fundamental principle and our real capital. Sioen organizes its research and development activities around three main areas: product development, process improvement and technological innovations. The products we develop must both meet customer expectations and create added value for the business. Process optimization made possible by technological innovation is making a substantial contribution to the group’s effectiveness.
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Recent R&D realisation: Membranes for biogas containers Sioen developed a range of technical membranes for silos containing non grease-holding products and grease-holding products (like slaughter waste, dung, orange scraps, peanut scraps, corn ‌). Anaerobic fermentation takes place and the technical membrane should resist methane, water, hydrogen, carbon monoxide, carbon dioxide, mercaptanes, sulphides and ammonia. Sioen offers a range of membranes, depending on size, structure, engineering and the type of waste that is kept in the silos.
Close up weaving loom
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A “spider’s web” R&D structure Keeping ahead of the market requires ongoing investment in research and development. At the group’s central R&D centre at its headquarters in Ardooie, professionals work on product development and innovation and on process improvement with state-of-the-art facilities. 55 people are involved in R&D and testing. Innovation is a state of mind in all departments of the group: production, sales, marketing, R&D, quality, management, ... Direct expenditure on R&D and testing amounted in 2008 to EUR 6.1 million (= 1.7% of turnover) including production time and related costs. As well as its central R&D unit, Sioen has other research teams at major production sites, conducting specific research and product testing in more restricted areas. Work done at the production sites is coordinated and managed from the central R&D unit in Ardooie. Sioen’s R&D team cooperates closely with national and international research institutions, universities and scientific institutes in Belgium and abroad. This includes a special working relationship with the Textile and Textile Engineering department of the University of Ghent, and IWT-projects.
Recent R&D realisation: Technical pastes In the second quarter of the year, we’ve increased the production of flame retardant pigment pastes. In addition, we’ve realised a breakthrough in the development of black water-based paste (aqua paste) for the colouring of seats. This is an extremely technical application with strict technical specs.
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Top flight test facilities Sioen’s R&D centres and labs are fully equipped with the latest testing equipment. Testing for tear and breaking strength, flame retardancy, thermal radiation, chemical resistance, bullet and knife impact, water column, colour fastness, ageing and so on are all performed in-house, and Sioen can stand comparison with the world’s top research institutes in this area.
p
Test for limited flame spread
p
A horizontal flame of 25 mm is pointed on a vertical fabric for 10 seconds.
p
Test of exposure to heat radiation The fabrics of the suit are exposed to an intense radiant heat.
Test for limited flame spread EN533
p
Ballistics laboratory
p
R&D lab for technical coated textiles
EN533 aims to prevent that the wearer gets extra injuries due to the burning of his clothing.
p
Test for convective heat This test simulates the fire fighter being entrapped by flames; he must fight his way through the flames.
Recent R&D realisation: body armour suits SAT offers a selection of the most sophisticated armours available on the market today. We specialise in Police, Military and Security markets offering our customers tailor made products. We use the best materials in both our armour and carriers and have developed wearing systems that enhance wearer comfort and actively control body heat. For the development of the SAT garments, we have an own ballistics laboratory, including a sophisticated shooting range.
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Recent R&D realisation: specialities yarn Through intensified process engineering and R&D, we can boast a very high efficiency and productivity at our spinning plant. Clever storage of the bobbins increases the quality and the efficiency of delivery to the various weaving plants and to external customers. We produce high tenacity polyester yarns for our own use and special custom made yarns for external customers.
Recent R&D realisation: Fire fighters clothing The ability to conduct flame tests (EN367), and thermal radiation tests (EN ISO 6942) in-house has led to Sioen being one of the first European producers certified for the new EN469:2005 standard for fire fighter clothing, and opens the way for Sioen to play a leading role in flame retardant garments. We have supplied fire-fighters’ clothing to the brigades of major cities in The Netherlands (some cities are situated in the Europoort zone; the largest harbour/industrial area in Europe). We have also supplied brigades in France, Belgium and one of the most important fire-fighters training centres (with about 20 000 trainees per year) equipped its instructors with Sioen fire-fighters’ suits.
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Recent R&D realisation: Membranes for textile architecture Sioen is world market leader in technical direct coated textiles for various applications. A very advanced and high tech type of technical textile is used for textile architecture. In a way, this is building with coated textiles. Strict European and international regulations define the technical characteristics of each type of technical textile (there are five types). The new range of Sioen- Sioline consists of a number of products for each textile architecture type. We offer lightweight and heavy weight coated textiles for rooftops, sides, tensioned structures, tents, halls, domes ‌
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Recent R&D realisation: mega dome At our workshop Saint-Frères Confection we’ve produced a very special inflatable “dome” (silo): 6.000 m² in one piece of almost 7 tons. Inflated, the dome has a diameter of 51 metres and is almost 28 metres high and is used for keeping 30.000 tons of grains. Again a smart proof of our ‘vertical integration’: We produce the yarn, weave the base cloth, produce the pigment pastes for coating and process the technical textile into a finished dome.
Recent R&D realisation: non woven for pipe renovation Sioen Nordifa has developed a new non-woven dedicated to the rehabilitation of large diameter pipes. One of our customers has installed a 420 metre long protective sleeve with a diameter of 1500 mm for the renovation of water pipes at one of the biggest construction sites in Europe.
The recent R&D projects given in this annual report serve as examples of the performance of our R&D team. Permanent support by our own research laboratories forms part of our active innovation policy. It helps us not only to anticipate the wishes of our customers, but also to retain and further consolidate our technological advances.
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Health and safety All our companies have a sustainable approach to health and safety. To this end, Sioen companies manage these matters as a critical business activity. Safety is a core value and safe behaviour is encouraged and respected in all Sioen companies.
PVC coated textiles for oil booms
Our goals are: p To eliminate work-related injury and illness. p To provide work environments that do not
compromise the health or safety of each individual. p To ensure that this politics is applied throug-
hout the whole organisation.
Oil boom inflated
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Environment As a responsible corporate citizen, the group complies with all legal requirements. As a market leader it also seeks to operate a proactive environmental policy, investing every year to protect people, nature and the environment, applying stricter standards than those required by law. For Sioen, care for the environment is a constant concern.
Recycling In our business statement we say: “We will develop environmental friendly coating and converting technologies to set a winning standard for primarily green safety and protective products to create sustainable profitable growth.� Therefore, in addition to developing new products, technologies and processes, the R&D team is also intensively engaged in researching and developing recycling options. Possibilities include the recycling of used technical textiles in bags, insulation materials, mud flaps and so on.
Environment-friendly production and energy recovery The group is making increasing use of recycling and energy recovery technologies. Coating sites are fitted with distillation and combustion towers, which minimize exhausts and recover hot air which can be used to pre-heat ovens. At Ardooie, contaminated solvents from cleaning paste tubs are distilled for re-use and we use heat exchangers.
Electricity generation The new extension at Ardooie (Veranneman production hall plus storage warehouse) is fitted with electricity generating solar panels.
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Quality At Sioen Industries the customer and customer satisfaction take centre stage. This calls for an approach in which the quality of the finished products and services provided must meet the customer’s highest demands. Sioen Industries therefore does not confine itself to just checking the end product, but implements an efficient quality policy to ensure appropriate monitoring throughout the entire production and sales process. We demand a constant level of quality from all our suppliers and employ the necessary specialists to carry out permanent monitoring on the shop floor and random sample checks. Here, Sioen Industries makes use of the latest communication and IT applications. However, Sioen Industries has not only been concerned with the quality of its products. Careful attention is also being given to superior working conditions. Creation of a stimulating working climate, in which everyone gets the chance to develop their abilities, is one of the keystones of the policy.
on all levels Quality means satisfying the customer‘s expectations in terms of products and delivered services. Quality is not confined to those departments which come into direct contact with the customer. It is a key principle for all employees of the Sioen Industries group as they perform their work, whether in production, sales, accounting, customer service, R&D or purchasing. Every employee contributes to quality in their own field.
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Certificates The Apparel Division has met ISO 9001 standards since 1996 and now complies with the most recent ISO 9001 version 2000 regulations. It also works according to the AQAP-120 standards for military tenders. Thanks to a constant concern for quality’ the Coating division was one of the first coaters to acquire the ISO 9001 certificate. The five areas of focus for the ISO 9001 standard – quality management system, management responsibility, management of resources, production of the product, and measurement, analysis and improvement – form the core of Sioen’s integrated quality assurance system.
Human resources The human capital at Sioen Industries is an important link in the expansion of the company. Our employees help make sure that promises are kept and that our products and services meet customers’ expectations and demands. Through many years of dedication, our employees have built up a huge fund of skills. They put their heart and soul into their work, constantly offering creative solutions and alternatives.
Personnel per country 2008 Total: 4 676 2222
2500
personnel per division 2008
13 %
4% 13 %
1%
chemicals coating
2000
Apparel 1500
899
26 16 21
25
27
15 6
291
500
338
757
69 %
33
1000
GROUP
Belgium China Germany France Ireland Indonesia Netherlands Poland Portugal Tunisia UK Ukraine USA
0
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industrial applications
Sioen in the world
1
2
7
3
6
4
5 1
ARDOOIE
Sioen Coating Division / Apparel Division / Veranneman TT
Sioen Coating Distribution
2
BORNEM
European Masterbatch (EMB)
Fillink Technologies
3
KERKSKEN
TIS 4
LIEGE
Sioen Nordifa
5
MESLIN - L’EVÊQUE
Inducolor 6
MOUSCRON
Sioen Fibres - distribution/spinning
Sioen Fabrics - weaving, coating and calendering
7
POPERINGE
Coatex
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8
Sioen Shanghai - SHANGHAI - CHINA
9
Saint Frères - Enduction & Confection - FLIXECOURT - FRANCE
8
10 Richard Colorants - LOMME - FRANCE 11 Sioen France - NARBONNE - FRANCE 12 Pennel Automotive - ROUBAIX - FRANCE 13 P.T. Sungintex - BEKASI BARAT MARUNDA - INDONESIA
13
14 P.T. Sioen Indonesia - JAKARTA - INDONESIA 15 Donegal Protective Clothing - DONEGAL - IRELAND
14
16 Roltrans Group Polska - KONIN - POLAND 17 Siofab - SANTO TIRSO - PORTUGAL 18 Roland International - TEGELEN - THE NEDERLANDS 19 Sioen Tunesie - CTS - Sioen Zaghouan - TUNIS - TUNISIA 20 Roland Ukraine - RIVNE - OEKRAINE 21 Roland Tilts UK - BRADFORD - UK
23
22 Mullion Manufacturing Ltd. - SCUNTHORPE - UK 23 Roltrans Group America - TEXAS - USA
15 21 22
9
18
10
16
12
20
17
11
19
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The Sioen divisions
Sioen Coating division p. 31
Spinning, weaving
p. 33
Coating: 5 coating techniques
p. 34 Main product markets p. 35
Competitive position
p. 36 Geographical markets, sales organisation
Sioen Chemicals division p. 38 Pigment pastes, inks, varnishes, colour powders
and dispersions
p. 41 Main product markets and competitive position p. 42 Geographical markets, sales organisation, R&D driven
Sioen Apparel division p. 43 Introduction p. 44 Main product markets p. 45 Niche markets p. 49 Production sites
Sioen Industrial Applications p. 50 Our activities p. 51 Our markets p. 54 Geographical markets and sales organisation
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Coating Division In this division, vertical integration takes centre-stage. This means that Sioen handles the entire production process of spinning, weaving, pigmenting and coating.
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Spinning Sioen has one of the most modern spinning mills in the world (MouscronBelgium), where every year approx. 16,000 tons of polyester granules are processed into high tenacity yarns. A portion of the yarns is twisted in the twisting plant; the rest goes directly to our weaving mills. In addition, we spin an increasing number of custom made yarns for external customers.
Weaving The yarn is supplied as raw material to the three weaving mills (Mouscron, Ardooie, Kerksken- Belgium). Each weaving mill has its own specialisation: sailcloth, open structure textiles, high tenacity textiles used as base material for coating, airbag textiles, protective fabrics for body armour and forestry, etc. The fabrics all meet high technical requirements for tensile strength and tear resistance, limited flame spread and light fastness.
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Preparation of coating layer/colouring The coating layer can consist of PVC, polyurethane, silicone or other polymers, which are sourced from major chemicals companies. Sioen produces its own pigment pastes for colouring the coating layer (See also Sioen Chemicals division p. 38-42). Pastes are mixed in fully automatic paste kitchens and then brought to the coating line by robots.
Coating Coating is covering (PVC, PU, silicone or other) a substrate (nylon, polypropylene, polyester, polyamide, cotton, wool, woven or non-woven fabrics or sheets), to enhance and alter the physical properties and appearance. The end result is a technical textile with properties such as chemical resistance, anti-stain, vapour and gas resistance, electrical conductivity, water resistance, abrasion resistance, anti-static, printability and fire resistance. Sioen Industries applies five main coating processes, on eight coating lines (5 in Belgium, 2 in France and 1 in Portugal).
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Direct coating: The PVC coating paste is directly applied to the fabric in four layers. Applications: curtains, tilts and tarpaulins for trucks, railway wagons and containers and other uses, sports mats, swimming pool covers, textile architecture, publicity banners, etc.
Transfer coating: The coating paste (PU, silicone, etc.) is applied to the fabric via a paper support. Applications: protective clothing, outdoor sports clothing, shoe protectors, mattress protectors, airbags, etc.
Online coating: Here the open weave fabric passes directly from the loom into a coating bath. Applications: geogrids, swimming pool covers, reinforcement nets, windbreak nets, filters, etc.
Extrusion coating: The granules (different polymers) are extruded and rolled on a carrier (textiles, non-woven, knitted fabrics, paper, etc.). Applications: ventilation tubes, pond liners, greenhouse foil, sewer renovation, etc.
Calendering (rolling): We make TPO (thermoplastic polyolefin) and PVC films that are embossed to give the required aspect (can be motife/texture). Applications: car dashboards, door panels, sun visors, wall coverings, pond liners, etc.
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Main product markets Part of the production of the coating division is used internally as base material in one of the other divisions. More than half of the total production of the coating division is sold as semi-finished products to external customers (distributors and manufacturers) for use in the areas given below. It is difficult to give meaningful figures in each sector as these can vary considerably from one year to the other.
Transportation- Tarpaulins and side curtains (direct and extrusion coating): The market for PVC coated tarpaulins and side curtains for trucks and railway wagons is the most important segment (accounting for around 40% of external turnover of the Coating division. The remaining 60% is divided amongst the other markets). Sioen is the market leader here with an estimated 50% market share. This market, for both new and replacement tarpaulins and side curtains, is mainly located in Western Europe, where the large trailer builders are situated. The use of coated fabrics has not yet become customary in the American market, where trailers are usually hard-bodied.
Geotextiles and roofing (online coating): Technical open structure textiles are used as reinforcement netting for roads, roofs and all types of plates. With approximately 60% of the market Sioen is the market leader in this segment.
Transportation- Automotive (direct coating, transfer coating, calendering): Around 8% of the Coating division’s production is for the automotive sector: TPO and PVC films and technical textiles for car interiors (dashboards, door panels, sun visors, gear lever protection, seat backs, trunk covers etc.) and airbags.
Flexible, breathable technical textiles (transfer coating): These are mainly used for protective clothing and mattress covers. With its modern production system, large runs, R&D and know-how and the advantages of vertical integration, Sioen can compete in this competition-sensitive market (Asia).
Swimming pool covers and liners (direct coating, extrusion coating): Sioen is by far the largest global supplier of technical textiles for this segment. The greater proportion of the turnover comes from France, where several swimming pool cover and liner producers are located.
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Competitive position 60% of the market is shared among one major German coater and various smaller and increasingly specialized (by product or by region) competitors in Austria, France, Germany, Italy, Scandinavia and Spain amongst others, certain of whom go opportunistically in and out of markets from one year to the next. Sioen accounts for over 40% of all European coating capacity.
Tarpaulins and truck covers are the largest application for heavy coated fabrics in Western Europe, with an estimated market volume of 90 million m² in 2006, expected to reach 122 Mm² by 2010. Sioen and one other German competitor dominate this market.
In 2008, there was a general decline in the transportation market. This had immediate effect on the Sioen turnover. Our market share was not affected.
Geotextiles (around 20 Mm² worldwide) is a steadily expanding market. Sioen is world market leader in this segment.
Automotive: The new calendering facility will enable Sioen to be more flexible and expand its geographical market. However, since mid 2008, this market is under enormous pressure.
In the market for flexible textiles , where there is strong competition from Asia, Sioen is competing through quality, vertical integration and by entering new markets.
The pool covers market, in which Sioen is the absolute market leader, is steady at around 20 Mm².
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Main product markets Sign (direct, extrusion and online coating): Sign is the collective name for printable technical textiles that are used for publicity banners. Although competition of low cost –lower quality laminates from Asia is high, Sioen has a solid brand name with high quality banner material. We sell a substantial part of products of this segment in Asia.
Textile architecture (direct, extrusion and online coating): Textile architecture covers technical textiles for tents and structures. As a fully integrated coater, we fine-tuned and dedicated our machinery in 2008 in such a way that we are now capable of producing high quality textile architecture membranes. We coat the back and front side in one run, immediately followed by a special lacquering treatment, providing a better overall tension of the membrane.
Niche markets (direct, extrusion, online, transfer and calendering coating): Apart from these 7 major markets, Sioen also produces technical textiles, films and sheets for biogas containers, rolling doors, bouncing castles, boat covers, machine protection, dung covers, oil booms, ventilation tubes, sewer liners, bird nets, roofing, bags, mattress covers, pond liners. Each product has its typical high technical requirements.
Geographical markets Over 80% of the Coating Division’s turnover comes from the traditional Western European countries, led by France, Germany, the Benelux and Great Britain. Eastern Europe and Asia are increasingly important markets. The geographical distribution reflects the location of final producers. Several large trailer manufacturers are based in Germany and the UK, Germany has a rich tradition of using geotextiles, France has a large number of swimming pool cover and mattress cover makers. The largest digital printing works are based in Western Europe and Pennel Automotive has a long history of contacts with French car producers. Technical textiles for digital printing, truck curtains and tarpaulins are also finding their way to Eastern European customers.
Sales organisation In addition to the permanent sales staff operating out of the Ardooie, Mouscron and Roubaix plants, and a number of local agents, the Coating division has its own sales offices in Germany, France and China.
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Competitive position Billboards (sign) is the second largest application in the Western European heavy coated fabrics market (estimate: 45 Mm²). Sioen has a market share of about 10%. With a lower level of technicality, this sector faces competition from Asia.
Textile architecture (20 Mm²) is one of the fastest-growing markets for coated textiles worldwide. Entry barriers are the high technical characteristics of the product and the stringent guarantee requirements. One competitor operates exclusively in this market and has a significant market share. Sioen now has capacity and capability to expand in this market in 2009 and the following years.
niche markets Depending on the type of product, Sioen dominates the market or is a smaller player. The volumes of these specific niche markets are small compared to the 7 principal segments. The complex technical nature and thus the high added value of these products allow bigger margins. We will continue to focus on these kinds of products.
geographical spread 2008 20 %
geographical spread 2007
12 %
11 % 30 % 16 %
15 % 4% 7% 7% 5% 7%
7%
4% 8%
21 %
11 % 5%
7%
Germany
Great Britain
Germany
Great Britain
France
Italy
France
Italy
Belgium
Scandinavia
Belgium
Scandinavia
Eastern Europe
Other
Eastern Europe
Other
Netherlands
Netherlands
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Sioen Chemicals division Sioen Chemicals produces pigment pastes, inks, varnishes, colour powders and colour dispersions at two locations in Belgium and one in France.
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The Product Pigment pastes are used for colouring polyurethane and PVC coatings, epoxies, acrylic resins and silicones. These find their way into a huge range of end products, including vinyl flooring, wall coverings, silicone kits used in construction and interior decoration, kitchen sponges, mattress and furniture liners, shoe soles, bathtubs, sanitary facilities and luxury yachts. Sioen Chemicals also produces specific flame retardant pastes. It is one of the only manufacturers in the world of high tech pastes that render textile invisible to military infrared cameras.
Inks. Sioen Chemicals produces water-based, solvent-based and UV inks for wide and super wide format digital printing and decorative inks.
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Varnishes. Sioen Chemicals offers a wide range of water and solvent borne and UV-curable varnishes and lacquers. Applications include liquid varnishes for printing inks, top coat varnishes protecting decorative surfaces, and specific technical products such as inhibitor varnish for special patterns in decorative applications.
Colour powders and colour dispersions. These are used to dye paint, plaster, wax, cement, etc.
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Main product markets About 85.5% of production is sold to external customers. The other 14.5% is used internally as base materials in the coating division. The Chemicals division is a niche specialist, focussing on very technical and special custom made products. There are 4 major groups for colour pastes (PVC, PU, Silicone, Aqua): p Transportation (tarpaulins) p Automotive p Sealants p Coating
There are 4 major application areas for our decorative
inks: p Wallpaper p Decorative flooring p Decoration paper p R&F PVC
The inks for wide and super-wide format digital printing are used mainly for banners and billboards. The colour powders and dispersions are bottled from 30 ml to 250 ml for colouring paints, clay, concrete, chalk, fillers, ‌ for do-it-yourselves and professional users. The market for colour pastes (both coatings and colour pigments for painting) has decreased under the influence of a lower demand from the (technical) textile sector. Decorative inks continue to perform well and we are seeing a rise in volume here.
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Competitive position Sioen Chemical’s organisation’ and the fact of having the Sioen group as its largest customer, gives a scale advantage over the relatively fragmented competition. In addition, the personalized service and close partnerships with the customers play an important role in the success of this division.
Cost advantage Vertical integration of production processes yields products that are used as raw materials in coating and varnishing. This allows effective management of costs and ensures regular supply, constant quality monitoring and volume.
Service and tailor made products More than any other pigment pastes, varnish or ink producer, we are able to provide solid quality products. Swift delivery of standard products and quick development of special tailor made products.
Geographical markets 14.5% of all Sioen Chemicals products are used within the Sioen group. The balance is sold to a wide variety of customers, mainly in Western Europe.
Sales organisation from the Bornem (Belgium) headquarters and the other subsidiaries.
R&D driven The Sioen Chemicals division boasts a well-working R&D centre with labs in all production plants and dedicated professionals each specialising in their main market. They focus on product development and innovation, but also on process improvement and product optimisation. Thanks to their efforts we have developed an extensive range of products suitable for use in a multitude of applications.
Our core actions of 2008 and of the future are: p Quality control and optimization of the existing productions & formulations p Finding substitutes for non-Reach compliant products p Growth projects in cooperation with strategic customers p Sourcing projects on alternative raw material suppliers
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Apparel DivisiON Sioen Apparel division is an innovative producer with a broad range of high end technical protective clothing. These comply with the most stringent European norms and regulations for amongst others rainwear, high visibility clothing, and flame retardant clothing, anti static and flame arc resistant clothing and chemical protection. Sioen is active in many different niches where people daily work in many different circumstances and where safety, comfort and security are major issues. Examples are: fire fighters clothing, chainsaw protection, flotation suits, bullet proof vests, clothes for operation theatres. Quality and flexibility go together with profitability and added value. Thanks to our constant innovation, we are European market leader.
I High Tech I High Visibility I Agriculture I Chemicals I Forestry I Flotation I
High quality technical PROTECTION CLOTHING
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HIGH TECH
Our high tech clothing offers maximum protection in changing working and weather environments. The high tech range is a combination of solid experience and interesting innovation.
HIGH VIS
The high visibility safety range of Sioen includes a broad selection of fluorescent workwear for summer as well as winter periods. Thanks to our high-vis range the wearer is seen and accidents can be avoided.
Chemical Arc
Protection and safety in the chemical and petrochemical industry is becoming more important every day, not least because of the stringent European regulations. Sioen offers a complete range of chemical and flame arc resistant clothing that complies with these norms and regulations.
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Agro
Clothing for agriculture and horticulture has to be practical, waterproof, breathable, friction resistant and supple. Farmers and growers have to be able to work comfortably in any condition.
Food
Flexothane Kleen ensures that our clothes comply with all hygienic and safety regulations in the food industry. The Nicewear range of Sioen offers protection up to -40째C. It combines two high tech tissues that are supple and water repellent on the outside and on the inside Iso-soft guarantees a high insulation.
Sio-Fit
In the Sio-fit range you will find T-shirts and polos in many colours and with many kinds of retroreflecting stripes and a high wearing comfort. The range includes our new Sio-cool concept, clothes made of multi-functional yarns with fast drying, anti bacterial and deodorising characteristics.
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OTHER MARKETS WE ARE ACTIVE IN! Siofire-Vidal develops protective clothing for fire fighters. SIP protection guarantees safety and chainsaw protection in forestry. Sioen Armour technology specializes in bullet- and stab proof solutions for police, defence and security companies. Mullion produces flotation suits, life jackets and survival suits. Baleno aims for outdoor, hunter and fishermen’s clothing. Siomed produces textiles for medical sector and Military produces uniforms and protective clothing for all kinds of military applications.
Sio-fire / vidal - fire fighters clothes
Belgian Fire fighter suit
French suit
Dutch suit
More and more fire fighter brigades chose the intervention clothing of Sioen. These top quality suits guarantee optimal protection against the many dangers this profession engenders. After an international tender, the Belgian ministry accorded the multiyear contract to Sioen. Satisfaction surveys show that the fire fighters clearly appreciate Sioen garments.
Sip® protection - chainsaw protection
Forestry
Governmental services
Tree surgeon
For more that 25 years, SIP protection has invested in the development, design and production of protective clothing for foresters and people using chainsaws. Due to this constant investment, we can commercialise products that comply with the stringent European EN381 norms and that are ‘at the same time’ light, comfortable and easy to clean.
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SAT - body armour
Police overt
Police tactical
Security
Sioen Armour Technology produces a range of body armour products for a large number of threats. Since its creation, the range has extended to a large product portfolio. SAT specialises in bullet and stab proof solutions for police, military and security.
mullion - flotation suits and life jackets
Harbour
Flotation suits
Buoyancy
Mullion specialises in life jackets, flotation suits and buoyancy suits for offshore, commercial navigation, governments and saving brigades.
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baleno - Outdoor, hunting and fishing
Outdoor
Hunting
Fishing
Baleno is the Sioen brand for modern, comfortable yet functional sports and leisure wear. This extensive range is specifically designed for the protection of outdoor sports and leisure and for hunters and fishermen. At the same time, the Baleno clothes are elegant and functional for daily use.
SiO速 med - Medical aprons and sheets
Surgeons aprons
Operation sheets
In 2005 Sioen started producing medical textiles for amongst others operating theatres. We offer a full range of surgery aprons and sheets for hospitals.
military - Uniforms, protective clothing and body armour
military Uniforms
Body Armour
Flotation suits
Military applications are a growing market for Sioen and we offer a variety of products. This extends to uniforms and protective clothing and many forms of ballistic protection. We are active in Belgium and abroad and have a very strong project approach.
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OUR PRODUCTION PLANTS ABROAD PT Sioen and PT Sungintex (Jakarta- Indonesia) are more than just production plants. We offer added value to all aspects of your project from conception of your clothes (design, fabrics selection and special techniques) to the eventual production, distribution and marketing. Thanks to our technological expertise and to the latest state-of-the art production techniques, we offer a competitive advantage to your clothing range. In addition to Jakarta, we are also situated in Tunisia (CTS), Ireland (Donegal Protective Clothing), France (Vidal) and the United Kingdom (Mullion Manufacturing Ltd. Scunthorpe).
Our characteristics are amongst others quality, comfort, price-quality relationship, speed, reliability, flexibility in combination with ethical business.
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industrial applicationS division This division focuses on finished products and as a result processes coated fabrics, PVC membranes and filters for industrial applications.
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The activities of the Industrial Applications Division are threefold and stand at the end of the Sioen Industries group’s value chain. p The processing of membranes (mainly in-house coated PVC technical
textiles and foils) into finished and semi finished products such as kadors, pond and dam liners, tents, silos, camouflage nets, ‌ p The production of felt and filters
p The production of truck curtains, roofs and tilts
Markets The division covers a wide range of markets, including automotive, leisure, the food industry, heavy industry and chemicals, transport and mining.
Kadors: Sioen processes in-house coated technical fabric into kadors (flexible tubes enclosed in a technically coated fabric, into which profiles can easily be inserted, for example for caravan awnings).
Sio-steel: Sio-steel is a patented composite consisting of a PVC coated steel net and double- sided PVC coated polyester fabric, used primarily for intrusion-resistant truck and train tarpaulins and side-curtains.
Carapax: Carapax is an alternative to traditional roof curtains, giving additional resistance to the trailer superstructure and meeting the requirements of EN 12642XL. Carapax is a combination of aramid and technical coated textile.
kadors
carapax
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lasercutting
Cutting: Cutting of technical textiles for the automotive industry (airbags, door panels, sun visors, etc.). Pond and dam liners: Cutting, splicing and packaging of sheeting for recreational ponds and industrial reservoirs, water basins and cultivating beds, for customers worldwide.
Filters and filter cloths: Sioen specializes in producing needle felt and derived products such as filter cloths and complete ready-to-use filter systems. These filters are used in the food industry (water and air treatment in sugar refineries, breweries, etc.), heavy industry and metallurgy, mining, petrol stations, paper processing, cement companies, the chemicals industry, municipal water purification and after-burning plants. Nordifa recently started producing acoustic and thermal insulation panels.
Tents, covering systems, roll-down shutter doors, separating walls, silos: A small percentage of our production of technical textiles is processed into finished and semi-finished products for high-tech applications for the army, the railways, the airline industry, and the construction sector.
felt samples
evacuation tent
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pond liner
Camouflage fabric: Sioen specializes in the design, production and sales of camouflage fabric and multi-spectral camouflage netting. Worldwide, there are only a few companies active in this high-tech market, that calls for extensive technical knowledge and research and development.
Truck curtains, roofs and tilts: Roland International (production units in Germany, Poland, Ukraine) is the world’s largest producer of truck curtains, roofs and tilts, with a 40%+ market share in curtains for new trucks. Acquired by Sioen in 2003, the company focuses on large volume, batch production.
side curtain
camouflage net
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side curtain
Geographical markets Over 34.9% of sales in this division are in Germany. This is because the largest trailer builders are in Germany. Other automotive applications (cut airbags, door panels, etc.) also find their way to Germany. The remaining 65.1% is divided between France, Belgium, the UK, the Netherlands, Eastern Europe and the USA. The two latter areas both offer considerable scope for growth.
Sales and distribution organization Sales and distribution channels differ from one product to another. We emphasise on cross-selling.
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