Innovative grinding system triggers spending and sales growth
The sia Group, a global player in the coated abrasives market, has acquired various patents that are setting the stage for future market development and expansion of surface expertise. sia Abrasives expects these rights to increase its sales by several million Swiss francs in three to five years time.
In October 2005, sia Abrasives acquired several tool patents for machine grinding (on portable power tools and automated machines) from SANDEX GmbH, a German grinding and sanding tool specialist based in Sögel. The patents feature an ingenious abrasive system that will point the way for sia Abrasives in surface preparation and finishing applications for the automotive paint and bodywork, electronics, food and chemical industries, and for mineral reinforced synthetic resin panels (e.g. kitchen and bathroom coverings).
Economical and efficient product…
Patents have been acquired for highly efficient grinding tools (abrasives and accessories) designed specifically for weld cleaning and demanding grinding tasks in metalworking applications. These tools used in combination with a new patented quick release mechanism developed for grinding machines can be changed by hand without a special tool. The universal quick release mechanism – the key element of the patent – fits all common grinding machines. This allows all kinds of grinding processes to be performed far more economically than using conventional systems. As the patent holder, sia Abrasives has the exclusive right to manufacture the quick release mechanism and grinding tools. With these components, which can only be used in combination, sia Abrasives will be the sole supplier of such grinding tools.
…triggers spending and sales growth
At present, SANDEX is still manufacturing the grinding tools itself, but it already uses abrasive elements (semifinished products) comprising (coated and nonwoven) abrasives made by sia Abrasives to suit the specific requirements. From mid-2006, the sia Group will produce all the tools for the patented system in-house. In this connection, the Group is investing in a new conversion line in Frauenfeld. sia Abrasives is also planning to adapt other abrasive products to the new system, thereby expanding its range of systems progressively. sia Abrasives expects the patents to increase its sales by several million Swiss francs in three to five years time.
Centralization of German facilities
Over the past two years, both the sia companies in Germany have focused more strongly on their traditional customer segments. sia Abrasives Deutschland GmbH (Cologne) concentrates on automotive paint and bodywork applications as well as the woodworking industry, while Weck Schleifmittel GmbH (Solingen) caters to the whole metalworking segment. To combine forces further and also to tap potential for synergy in their operating procedures, the two companies were centralized at a new site in Solingen in October 2005. While the companies will remain independent of each other, their close proximity will allow them to optimize their logistical and organizational procedures.
The sia Group based in Frauenfeld ranks among the world’s top three suppliers of coated and nonwoven abrasives. It develops, manufactures and markets complete abrasive systems tailored to specific requirements and applications for surface preparation and finishing of all kinds. This commitment has made sanding and grinding into true surface technologies. Employing some 1,000 people worldwide, sia Abrasives posted net sales of CHF 252.1 million and operating income (EBIT) of CHF 24.7 million for 2004. sia Abrasives Holding AG is listed on SWX Swiss Exchange and generates more than 90% of its sales outside Switzerland.
Financial calendar
March 24, 2006, 9 a.m.
Annual press conference at SWX Swiss Exchange in Zurich
March 24, 2006, 11 a.m.
Financial analysts’ conference at SWX Swiss Exchange in Zurich
April 19, 2006, 4 p.m.
Annual Meeting of Stockholders at Frauenfeld Stadtcasino
April 25, 2006
Dividend payment
For further information
Peter A. Schifferle, CEO and Executive Director Gerhard Mahrle, CFO and Investor Relations Phone: +41 52 724 45 75 Fax: +41 52 724 45 70 E-mail: ir@sia-abrasives.com Internet: http://www.sia-abrasives.com/
® Correct nomenclature for sia Abrasives Holding AG
As there are other companies and organizations that use the same abbreviation as our company, we would be grateful if you could help to avoid any misunderstandings by always writing our name as follows: sia Abrasives (never just sia by itself).
News 