Clear growth opportunities have been identified in emerging markets where the use of sophisticated filters and feeding aids is less prevalent than in developed industrial economies. The Foseco Group remains committed to further investment in its early stage (but already profitable) operations in China, the Czech Republic, Poland and Turkey. The Group also has a developing presence in Russia where it foresees significant demand, as production of higher quality castings continues to increase.

Recent years have seen the reorganisation and upgrading of the Group’s sales force, resulting in a more efficient use of its resources and an improved conversion rate of sales projects. This will continue to be a focus for the Group which expect further resultant growth. Over the last three years, Foseco has entered into strategic alliance agreements to enable it to compete more effectively in product segments or territories where it is structurally disadvantaged by supply chain economics. These relationships have produced positive results and the Group will, where appropriate, pursue additional relationships and growth opportunities.

As well as specific actions taken by the Group, Foseco is well placed to benefit from expected changes in the dynamics of its market and the growth in the market generally. Global casting output is expected to increase by around 1-2 per cent. per annum over the next five years, driven by the increase in demand for consumer goods and investment in heavy industry and infrastructure in both key industrial and emerging markets. As a market leader, Foseco is well placed to benefit from this growth.

In addition, the automotive industry in particular is demanding increasingly complex, lighter, Thinner-Walled Castings (which use more consumables) and foundries have been placed under pressure to reduce costs. As Foseco’s products help improve yield and efficiency in the foundry process, this customer cost-down pressure is viewed to be positive for the Group’s prospects. Similarly, the increasing environmental pressures exerted on foundries and foundry customers are positive trends for the Group, with its products assisting customers in eliminating waste and improving efficiency through “right-first-time” production. The Group expect Foseco’s continued focus on product development to assist in this area.