Nabaltec_E_GB2016

DESCRIPTION OF THE BUSINESS ENTERPRISE 29 T R O P E R T N E M E G A N A M D E T A D I L O S N O C Product and process development are continuously optimized 2. STRATEGIC POSITIONING WITHIN GROWTH MARKETS Environmentally friendly, non-toxic and highly safe products and processing solutions are globally advancing forward encouraged particularly by regulatory requirements or self- imposed commitments from the industry. With an export share of around 70%, we already profit from these worldwide trends. The aim of being one of the world’s top three suppliers in our own target markets goes hand in hand with the aim of being equally well represented across all global markets. 3. OPTIMIZING CUSTOMER BENEFITS BY CONTINUOUSLY IMPROVING PRODUCTION PROCESSES AND PRODUCT QUALITY Through our constant exchange with our customers, the company’s product and process development activities are continuously optimized and directed toward specific customer requirements. This does not only result in processing advantages for the customer, such as a simpler and faster fabrication, but rather also in cost advantages for Nabaltec, due to lower production and development costs. Therefore, Nabaltec continuously invests in its own testing facility as well as in internal research and development departments, and the company has been collaborating with various research institutions for years. Optimizing processes includes efficient energy consumption as well as comprehensive envi- ronmental protection, both aspects of which represent major competitive factors. Nabaltec has taken extensive measures in order to minimize energy consumption as well as air and water pollution during operations. 4. SYSTEMATIC EXPANSION OF OUR PRODUCT RANGE Nabaltec develops its own product portfolio along three dimensions: ■ ■ ■ through development of new products, often in close collaboration with key customers; examples include boehmites and abrasive oxides through focused quality development of existent products that meet specific customer requirements through further development of existing products for entirely new applications Thanks to our own testing facility, Nabaltec is optimally equipped for development activities and sample production of up to several hundred tons and for new product launches. 5. FLEXIBLE AND QUICK ADAPTION OF CAPACITIES AND COST STRUCTURES THANKS TO HIGH-RESOLUTION CONTROLLING PROCESSES Nabaltec pursues a margin-oriented capacity policy. Fluctuations in demand and changes in batch size have to be taken into account as soon as possible if production processes are to remain profitable, since production processes in specialty chemistry cannot be varied with- out inherent delays. Therefore, Nabaltec has developed a fast-acting and highly differentiated controlling system, so that it has at its disposal the appropriate instruments so as to align costs to a large extent with fluctuations in demand and batch size. Nabaltec pursues a margin-oriented capacity policy 6. SECURING FUTURE INVESTMENTS THROUGH A STRONG FINANCIAL BASE In order to take full advantage of the market potential relating to both business divisions, further investments are necessary. This investment activity is at the same time a high mar- ket entry barrier for potential new suppliers. In order to ensure that the required investment capital will be available, Nabaltec relies on a financing base consisting of shareholders’ equity, loans against borrower’s notes and subsidies. Annual Report 2016 | Nabaltec AG ||||

Seitenübersicht