The Performance Materials division comprises Merck’s entire specialty chemicals business. It offers high-tech performance chemicals for applications in fields such as consumer electronics, lighting, coatings, printing technology, plastics applications, and cosmetics. In 2013, Performance Materials contributed 15% to Group sales and 23% to EBITDA pre (excluding Corporate and Other). The EBITDA pre margin was 47.5% of sales. This reflects the far above-average profitability of the business.
Performance Materials comprises three business units: Liquid Crystals, Pigments & Cosmetics, and Advanced Technologies.
Liquid Crystals generates more than 70% of divisional sales. With a market share of over 60%, Merck has established itself as the global market and technology leader in liquid crystal mixtures. The market is highly consolidated. In addition, there are high barriers to market entry due to the technological complexity of liquid crystals and the high quality requirements of customers and consumers. The seven largest LC display manufacturers are among the customers of the liquid crystals business. Performance Materials has the broadest product offering in the industry and also offers liquid crystals based on PS-VA and IPS technologies. This enables the division to meet individual customer needs and offers solutions for all display sizes, from smartphones and tablet computers to large-area television screens. The division also manufactures and markets materials for organic light-emitting diodes (OLEDs), which are used in innovative lighting applications and display technologies.
Pigments & Cosmetics develops and markets a comprehensive product portfolio of effect and functional pigments, spanning a variety of colors and shimmer effects. The pigments are primarily processed into automotive and industrial coatings, plastics, printing, materials used in installations for renewable energy production, cosmetics, and counterfeit prevention applications. The product portfolio also includes high-quality cosmetic products for use in skin, hair and oral care, including UV filters.
By providing innovative research and development, the Advanced Technologies business unit bolsters the growth of the Liquid Crystals and the Pigments & Cosmetics business units.
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