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As in previous years, the consistent orientation towards niche applications in conjunction with innovative products has further boosted the development of sales. In the first 6 months of the current fiscal year 2011, the company posted a 16.1% increase in sales. The previous fiscal year of 2010 saw the company post sales of 61.5 million, up by 19%.
"Our sales and development processes have now attained a very efficient level, and are generating sustained growth potential, which we will be exploiting in a determined manner", according to Managing Director Jörg Siekmann. The value creation processes of the business have continuously improved and developed over recent years. A further factor here is the provision of sufficient investment resources. On the one hand these resources guarantee sustainable support for the growth course, and on the other ensure the development of new products and production methods. Over the last 5 years, more than 7.5 million euros have been invested in the German facility in Melle. In those 5 years the company's growth rate has stood at 11% (CAGR).
"We continue to see very favourable potential for growth in the export markets. We have significantly strengthened our presence in the US market in the area of granulates for the surfaces of sports and leisure facilities. We are also seeing similar developments in the markets of Asia, where we have been able to improve our competitiveness significantly. Customers are spreading the word about our quality", says Managing Director Jörg Siekmann. The best example of this success is the "Meydan Racecourse" project in Dubai. Here, more than 500 tonnes of granules were supplied and laid for a horse-racing track within the tightest of schedule, in what has been a landmark project for the region. The company is currently delivering a shipment of over 1,200 tonnes to Qatar, for another prestige project, which involves the laying of the world's largest continuous surface using elastic-plastic granules.
Shortages of raw materials driving price pressure
Because of the very difficult situation in the raw materials markets, characterized by continuous price corrections, Melos GmbH is being forced to check its cost base pricing on an almost weekly basis. Accordingly the current market situation must be viewed as extremely challenging and tricky, as there are no reliable forecasts about development in the medium term. "We have to readjust to the new operating conditions with ever greater urgency", says Managing Director Jörg Siekmann The company, which employs 150 people at the Melle site, is confident about the future and expects to post sales worth around 68 million euros for the current fiscal year.
Melle, August 2011
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