a) Business activity
In the Copper Segment, the Group had two key manufacturers: Hutmen S.A. and WM Dziedzice S.A., which operate in partially overlapping markets.
The main products in this segment include:
- Rods and wires made of copper and copper alloys - for the construction industry, electronics and the electrotechnical industry,
- Copper plumbing pipes - for construction, and general purpose pipes,
- Copper alloy pipes for the power engineering industry, shipbuilding and heat engineering,
- Brass and bronze strips - for the construction industry, electronics and the electrotechnical industry,
- Discs for the monetary industry.
The most important markets for the products in the copper segment is the construction industry, electronics, the electrotechnical industry, the metallurgical industry and mints.
b) Sales and markets
The volume and value of the Copper Segment in 2013 and 2012 are presented below:
|Company||Products||Volume [T]||Value [TPLN]|
|Copper wires, rods and profiles||4,196||3,848||117,755||118,329|
|Bronze rods and pipes||665||641||21,047||21,916|
|Discs and keys||2,802||2,357||86,402||66,963|
|Total Copper Segment||42,353||37,068||984,394||872,088|
The 2013 ended for the Copper Segment with a higher level of sales in terms of volume by 4% and in terms of value by 13%. The largest increase of the sales occurred in WM Dziedzice S.A., through which the Company achieved the highest volume in its history.
At Hutmen S.A., there has been a drop in sales volume, mainly in regard to copper plumbing pipes, which was the consequence of a decrease of demand among customers, mainly in the domestic market.
The main directions of sales in the Copper Segment in the years 2013 - 2012 are shown in the following table:
|Sales structure [%]||2013||2012|
|Exports as % of total sales||60%||48%|
In 2013, there was a change of the directions of sales in the Copper Segment. Exports become the main market. Export growth of 12% was mainly due to an increase by PLN 63.7 million of sales on the Czech market and by PLN 54.1 million on for the German market.
c) Market share
Market share in the Copper Segment should be analysed in division into product ranges, mainly because of their different applications and user groups.
In 2013, the Copper Segment companies occupied the position of a minor supplier on the European market. The largest share of the European market amounted to about 3% for copper rods and profiles. Share in global markets in the Copper Segment is negligible and does not exceed 1%.
In 2013, the share of products in the Copper Segment in the domestic market, broken down by product ranges, amounted to:
- Ms rods market - about 56%,
- Casting bronze market - about 48%,
- Copper plumbing pipes market - about 46%,
- Ms pipes market - about 46%,
- Market for copper rods and profiles - about 12%.
Foreign competition in the Copper Segment includes such global concerns as:
KM Europa Metal AG - the world's largest manufacturer in the non-ferrous metals industry. The annual output is over 600,000 tons of copper and copper alloys,
Wieland AG - a German company specialising in the manufacture of non-ferrous metals, which owns 9 production plants around the world, makes about 500,000 tons of copper and its alloys,
Eredi Gnutti S.p.A. - an Italian company that produces brass rods, rolled strips, sheets and discs made of copper and brass,
MKM - German manufacturer of semi-finished copper and copper alloy products (wires, pipes, flat bars, rods, strips, plates).
Domestic competition includes:
Walcownia Metali Nieżelaznych Gliwice – Łabędy - manufacturer of strips and plates made of copper, brass and bronze; casting brass and bronze. Production capacity of the company is 4,600 tons per year. On the domestic market, the company sells about 800 tons of brass sheets and strips.
Huta „Będzin” S.A. - the company is in liquidation. It manufactured general purpose copper drawn tubes, brass tubes and other products including brass rods. Part of the plant, which manufactures brass and copper pipes, was bought by Motor - Energy, which manufactures brass and copper pipes. In terms of brass pipes, annual production amounted to about 100 tons.
e) Raw materials and sources of supply
The main raw materials used in the Copper Segment include scrap copper, scrap brass and copper cathodes. These materials are purchased mainly on the domestic market and supplemented with imports.
f) Key parameters for the Segment
- Level of copper prices, due to the occurrence of substitution for copper plumbing pipes used in the construction industry,
- Repair policy in the power engineering sector, the main customer for condenser tubes