Global
Expansion Opportunities.
Rising
consumer incomes and rebounding economies of Asian nations
have created an increase in demand for Ferro products, both
in local markets and from long-standing customers who are
setting up new operations in those countries. Tile, for example,
is a mature, profitable business in North America and Europe,
but it is a growth business in developing nations where housing
construction is booming.
To meet this demand, we continue to make strategic investments
in China, Indonesia and other Asian countries. We have begun
development of a new ceramic glaze plant in China, and we
have doubled the capacity of our coatings plant in China since
1998. We opened a new plant for plastic colorants in Indonesia
in May 2000, and we are expanding sites to serve the tile
markets in Thailand and Indonesia.
In
Europe, we are introducing an innovative new product based
on inkjet printing technology for the decoration of ceramic
tile. This initial product of our newly formed Ferro Applications
Systems business represents an exciting opportunity not
only to market a revolutionary new system to customers,
but also to support ongoing revenue streams through the
sale of Ferro-patented inks that are used with the printing
system. This new product introduction is consistent with
our plan to be a total solution provider to tile manufacturers.
Within
the United States, we have expanded capacity in Polymer
Additives to meet growing demand and reduce operating costs.
In Electronic Materials, we have a very significant expansion
under way to increase production at two facilities. Additionally,
we have installed a new plastic compounding line to meet
demand for a rapidly growing product line.
Personal
Thanks.
These
are exciting times to be an employee and/or shareholder
of Ferro. Our employees are the real heroes of Ferro's transformation
into a more dynamic company. I want to express my thanks
to all of our employees for their stellar contributions
to the progress we are making, and to our shareholders for
their continuing support.
My
sincere gratitude and appreciation go to Albert Bersticker,
our former Chairman and CEO, who is retiring from our Board
of Directors at the end of his current three-year term.
Al provided outstanding dedication and vision for Ferro,
and his influence will continue to be felt as we proceed
to build on the foundation he has left us. I also want to
welcome a new member of the
Board -Alberto Weisser. I'm sure Alberto's unique perspectives
and insights will prove to be of great value as we move
forward.
Creating
Value for the Future.
Throughout our
Company, we have identified opportunities and strategies
for strong overall growth. By executing these strategies
well, we are creating value, which we are confident will
be reflected in the stock price over the long term.
Each
of our businesses has important contributions to make as
we seek to achieve our goals
and build a stronger, more dynamic company. Guided by our
strategies, we are capitalizing on opportunities for profitable
growth in many of our businesses.
Indeed,
Ferro's future is primarily about opportunity.
Hector
R. Ortino
Chairman
and Chief Executive Officer |
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