Sales volumes at Elementis Chromium remained approximately stable year-on-year, with volumes recovering strongly during the second half of 2004. The expected deregistration by the US Environmental Protection Agency of CCA products for timber treatment for residential use came into effect on 1 January 2004. It is estimated that the global market decreased by 5 per cent as a result of this ban. Strong market growth in China and healthy growth in Western Europe for other products helped balance the decline in the CCA market.

Market supply continued to decline during 2004, including kiln closures in Japan and China. Global industry capacity utilisation is now estimated to be in excess of 90 per cent and it is anticipated that this figure will continue to rise during 2005 due to ongoing market capacity rationalisation and market growth.

In January 2004 Elementis Chromium announced the first price increase in the chromium chemicals industry for over five years. By January 2005 the price of Elementis Chromium products was 25 per cent higher than the industry low of November 2003.

A new chrome oxide product, refractory grade Accrox E, was launched during 2004 and is estimated to have generated incremental sales of over $1 million.

Operating profit declined by £10.6 million during 2004 as a combination of variable cost increases, increased energy costs and sales mix combined to impact margins. Significant increases were experienced in the costs of freight, energy and raw materials, including the costs of a key raw material, sulphuric acid. The weakness of the US Dollar also impacted performance.

Cost saving and restructuring initiatives were initiated during 2004, with total headcount falling from 464 at the end of 2003 to 412 at the end of 2004. The benefits of these activities are expected to fully impact results during the course of 2005.

Elementis Chromium successfully went live with the Elementis ERP system in June 2004.

Elementis Chromium achieved its best-ever employee safety performance in 2004. In July 2004 the Chromium site at Eaglescliffe, UK, was presented with the UK Chemical Industry Association's Sustainable Development Award in recognition of the site's approach to product stewardship and community contacts.

26 products
products
as at December 2004


412 staff
as at December 2004



Management team

Greg McClatchy, Managing Director

Roger Perkins, Finance Director

Jon Dean, Commercial Director

Mark Kenrick, Manufacturing Director

David Raw, Technical Director

John McConnell, Human Resources Director