 The products of the Special Forgings Division are manufactured by Böhler Schmiedetechnik GmbH & Co KG in Kapfenberg (Austria) and Buderus Edelstahl Schmiedetechnik GmbH in Wetzlar (Germany). The aircraft and jet engine industries represent the most important single market. Other key customers are the producers of steam and gas turbines, utility vehicle manufacturers and selected niche segments in the machinery and plant construction sector. The division sells its forged products throughout the world, but records slightly more than one-half of its sales in Europe. Other key markets are found in North America and Asia. The aggregates used by the division produce technically demanding forged products in small batches to meet specific customer requirements and in accordance with a comprehensive ISO 9001-certified quality control system.
Aircraft Construction.
Aircraft manufacturers are the most important customer segment for the Special Forgings Division, and are responsible of roughly 40% of division sales. The major customers in this sector are Boeing, Airbus (EADS), Embraer and their component suppliers, as well as the jet engine manufacturers General Electric, Volvo Aero, Snecma, MTU and Rolls-Royce. BÖHLER-UDDEHOLM supplies these companies with structural components, forged disks made of titanium and nickel-based alloys and special aircraft steels. In 2006, the division profited above all from a significant rise in the volume of aircraft produced, which covered nearly all types of airplanes.
The delays in the delivery of the A380 did not have a significant impact on division sales for the reporting year. It should also be noted that the positive business climate provided a greater stimulus for sales of forged components for helicopters, business jets and regional jets than in prior years. However, the division was able to pass on higher raw material prices to customers only to a limited extent. Turbine Construction.
Precision forged blades for steam turbines and stationary gas turbines are the main products in this segment.
The most important customers are Siemens, Alstom, General Electric, Toshiba, Mitsubishi and Ansaldo. The sales of steam turbine blades rose by a substantial amount over the previous year, chiefly as a result of stronger demand for new power plants in Europe and China. An increase in the demand for gas turbine blades was noted during the second half of 2006, and was based primarily on higher demand for replacement parts in Europe and Asia.
Utility Vehicles.
In this segment the division produces closed die forgings for the engine and axle components of utility vehicles, whereby the most important customers are DaimlerChrysler, MAN, Scania and RVI (Renault). A favorable business climate supported the sound development of business during 2006. However, the increasing consolidation of utility vehicle producers has led to steady pressure on prices in this area.
Other Special Forgings.
The most important products in this segment are marine diesel valves and cutting rings for tunnel drilling machinery. The demand for freighters and oil tankers slowed as expected during the business year 2006, and triggered a decline in the demand for marine motors and valves. In contrast, demand remained stable at a good level for special forgings that are used in the construction of agricultural machinery as well as equipment for crude oil exploration and tunnel drilling.
Main markets:
Europe, North America and Asia
Further information is available in the Annual Report 2006 in chapter "Special Forgings Division" (as PDF file for download)
Companies of the division:
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BÖHLER Schmiedetechnik GmbH & Co KG