2004 was a year of significant progress at Elementis Specialty Rubber, with sales increasing by over 20 per cent, when measured in our operating currency, the US Dollar.

All regions showed an increase in sales, with Asia Pacific and South Africa registering accelerated growth. This was primarily driven by Specialty Rubber sales initiatives, despite key application markets, such as mining, showing only moderate growth. The positive sales trend has been augmented by a series of price increases.

Operating profit increased to £0.2 million despite significant increases in the costs of latex and of steel. Increases in sales, together with increased selling prices, have primarily driven this improvement in profitability. Manufacturing efficiency has continued to improve at our Malaysian manufacturing site.

During the course of 2004 Specialty Rubber developed a joint venture in Santiago, Chile, which started trading in January 2005. In addition to the existing rubber lining operations, the joint venture will produce and sell moulded products and hoses to the mining industry. Specialty Rubber's presence in China was also strengthened during 2004.

Specialty Rubber is developing a new compound which addresses the needs of certain customers for abrasion-resistant rubber in oil-rich environments. Field trials began during 2004 and it is anticipated that this product will yield additional sales from 2005 onwards.

The Specialty Rubber organisation went live with
the Elementis ERP system in late 2004. Benefits
from this system are expected to accrue during
the course of 2005.

The safety performance at Specialty Rubber showed continued improvement in 2004, with no lost time accidents reported during the year and a 25 per cent improvement in recordable injury incidence.

Elementis Specialty Rubber has confirmed its performance potential and a process of considering the strategic options for this business is now under way.

15 facilities
worldwide
as at December 2004


665 staff
as at December 2004



Management team

Neil MacLeod, Acting Managing Director and Finance Director

John Hayes, Supply Chain Director

Bob Stewart, Strategic Development & Technology Director

Jon Woollins, New Business Development Manager

Dirk van den Berg, General Manager South Africa

Bruce Cooke, General Manager Europe

Greg Caddle, General Manager Americas

Henk van Kruining, General Manager Asia Pacific

MG Sekeran, General Manager Malaysia

Marc Steigenga, General Manager Bergmann