Elementis Specialties is a leading producer of rheological and surface chemistry additives that affect the feel, flow and finish of everyday products. The extensive Specialties product portfolio serves a variety of industries. Teams of Elementis Specialties experts work closely with customers to provide them with the solutions they need at each stage of their processes.

Business review for 2003
Elementis Specialties' strategic goal is to become a leading specialty chemicals business in rheology and surface chemistry and to achieve significant step change growth. In 2003, Specialties successfully increased sales revenue in US dollars, despite difficult economic conditions. Sales were marginally lower in constant currency terms as strong growth in the personal care and oil field sectors was partially offset by weak demand in the US coatings market. Overall market growth was low. The North American coatings market declined, while the markets in Europe and Asia grew by 3 and 6 per cent respectively. The markets for inks and consumer products were flat. Specialties outperformed the market in four key areas of focus: aqueous coatings, oil, consumer and Asia Pacific, with volume growth in consumer and oil markets in particular offsetting the weak demand for North American coatings.

Continued investment in the long-term growth drivers of the business has resulted in significant progress, including the introduction of the Elementis Specialties innovation model. The model is fully operational and has generated a pipeline of promising development projects, as well as facilitating the introduction of four new products to the marketplace in 2003.

Elementis Specialties celebrated the successful 'go live' of the new Elementis ERP system in late 2003. This system increases the ability of Elementis Specialties to share information, manage transactions and anticipate the needs of the customer base.

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