During the first six months of 1998, Bakelite AG (D-58609 Iserlohn-Letmathe), which belongs to the Rütgers Group, increased its sales by some 19% over the same period of the previous year. The company thus claims to have further expanded its market leadership in thermosets in Europe. Its market share for phenolic resins in Europe stands at 26% and for epoxy resins, at 9%. As journalists were informed by Dr. Eberhard Freiherr von Perfall, Chairman of the Board of Rütgers AG (PO Box 103154, D-45031 Essen) and Dr. Thomas Leven, Board spokesman at Bakelite, one of the company's strategic aims is to become world market leader for phenolic resins and moulding compounds.

Bakelite is one of the investment fields in Rütgers' company portfolio: some DEM 320m has been earmarked for investment in the company over the next four years. "Bakelite is one of the key driving forces in the implementation of Rütgers' strategy. Our group aim is to attain gross sales of DEM 8 bn by 2002 and profits before earnings tax of DM 340m", explained Perfall. Bakelite AG is to contribute DEM 1.1 bn in gross sales and DEM 70m in profit towards this. The current payroll of some 1500 will rise both at the German plants and abroad.

"To achieve these growth targets, we have to secure our cost leadership, set up or acquire production capacity in Asia and the USA and expand the field of special moulding compounds", explained Leven. The acquisition of the Italian moulding compound producer, Taroplast SpA (Strada Diolo 57/A, I-43019 Soragna, PR) on 1 January 1998 marked a key strategic step in the further growth of the company (see Plasteurope.com 04, 1998). Taroplast achieved sales of some DEM 30m in 1997 and is active especially in the field of engineering thermoplastics. According to Bakelite, the market for these plastics holds high growth potential. Essential innovations in the plastics sector are to be expected with engineering plastics, in particular, in the years to come. Annual market growth of 5% is expected in Europe alone. The volume of the European market will grow from less than USD 6 bn at present to just under USD 9 bn by 2004.

Bakelite has been able to take over cost leadership in this field with the development of a new production process for phenolic moulding compounds. The six operations previously required have now been reduced to three. Energy outlay was reduced by 50%, and production costs as a whole have been halved. Bakelite is currently building a production plant for this process in Letmathe.

Over the first six months of 1998, group sales at Bakelite increased 19% to DEM 406m. Profits before earnings tax rose to DEM 25m (20m). Growth of DEM 70m in sales, to DEM 760m, is expected for the year as a whole.