Performance Materials is a specialty chemicals business that offers high-tech performance chemicals for applications in fields such as consumer electronics, lighting, coatings, printing, plastics, and cosmetics. The division comprises the two business units Liquid Crystals and Pigments & Cosmetics. In 2012, Performance Materials contributed 16% to Group sales and 23% to the Group’s EBITDA pre one-time items (excluding Corporate and Other), indicating the division’s healthy and sustainable profitability.
Liquid Crystals generates more than 70% of the division’s sales. Based on a market share of between 50% and 60%, this business has for many years commanded the number one market position for liquid crystal mixtures used in liquid crystal displays (LCDs). With the broadest offering in the industry, the business unit’s product portfolio comprises liquid crystals tailored to match the individual requirements of the full range of LCDs, from small displays in smartphones to ultra-large televisions. The portfolio includes liquid crystals based on polymer stabilized vertical alignment (PS-VA) technologies, primarily used in mid- and large-sized televisions, as well as liquid crystals based on in-plane switching (IPS) technology, which are also used in televisions as well as increasingly in mobile devices such as tablet PCs and smartphones. The Liquid Crystals business unit operates in a highly consolidated market with a total of only three suppliers, indicating the high barriers to entry as a result of the scientific complexity of liquid crystals and their high quality requirements. Liquid Crystals supplies all seven major LCD panel manufacturers that serve television manufacturers or other consumer electronics companies. The business unit also offers materials for organic light-emitting diodes (OLED) used for new lighting applications and display technologies.
The Pigments & Cosmetics business unit develops and markets a comprehensive product portfolio of decorative and functional pigments, spanning a variety of colors and shimmer effects. These pigments are primarily processed into automotive and industrial coatings, plastics, cosmetic products and security paints. The portfolio also includes high-quality cosmetic products especially for use in skin care, oral care and hair care products, including UV filters.
To secure and strengthen its position as innovation leader in its respective fields, ongoing investments in R&D, particularly in Liquid Crystals, are a cornerstone of the division’s business strategy.
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