Bodycote wins the ‘MEN’ Business of the Year Award

Manchester, 3.11.2006

Each year the North West’s regional daily newspaper – ‘The Manchester Evening News’ (MEN for short) organises an awards competition to find the most successful entrepreneurial companies in the region. The awards are sponsored by Barclays Bank, Greater Manchester Chamber of Commerce, law firm Hammonds and accountants PricewaterhouseCoopers and this year attracted a record entry.

Bodycote won the premier award in the large business category. “Entrepreneurial skills exhibited throughout Bodycote” was particularly remarked upon, as was our “highly regarded customer service”.

The award ceremony was held on 2nd November at the Midland Hotel in Manchester city centre and over 300 of the regions leading business people attended. In 1904 the hotel was the venue for the historic meeting between the Hon. Charles Rolls and Henry Royce, which resulted in the foundation of the world famous Rolls-Royce marque.

Jon Culshaw, the Dead Ringers star and ace impressionist hosted the evening with his unique style of wit and brought a humorous touch to the event.

We are proud to have been singled out for this award, which is an accolade to all 10,000 Bodycote employees, and well earned by all, as acknowledged by John Hubbard in his speech of thanks, following the presentation.

Expansion India

After a very extensive six months India market analysis, diligence and research coupled with major customer interviews and visits, Bodycote plc has announced the launch of Bodycote Metallurgical Services India Pte Ltd. domiciled in Pune, Maharashtra State.
Bodycote initial Pune investment will encompass green field production facility of 5,000 sq. m. with full Thermal Processing, Coatings and Material Testing capabilities. This will be the largest Commercial Heat Treat operation in the country in terms of production output , physical size and versatility in technology offering. The operation will be fully manned and managed by Indian nationals team and provide Bodycote’s Global upper quartile service and technology reputation.

Pune, which is located 175 km. south of Mumbai, is the ‘ Automotive Epicenter of India ’ with domiciled companies as TATA Motors, Bajaj Auto, Mercedes of DaimlerChrysler, Fiat, Peugeot, Cummins, Force Motors (MAN Trucks), John Deere and the just recent announcement of General Motors $300 mil investment. In addition, 160 of the 500 members of the Automotive Components Manufacturers Association (ACMA) of India are also domiciled in this region. In 2005, exports of auto components was US $1.4 billion and is expected to increase upwards of 30% annually to a projected US$8.0 billion.

Bodycote’s strategy of entering the Indian market was principally driven by existing Western customer portfolio in extending our “Total Thermal Processing Outsourcing Solution” to their Asian facilities base and also by the exploding economic growth of India running presently at 9.3% GDP resulting in Western Foreign Direct (WFD) investments escalating at unprecedented levels. In the past two months alone General Motors, BMW, Volkswagen, Toyota (small car and diesel powered passenger car production in Chennai), Honda, Hyundai and Nissan have announced establishment of new or additional automotive assembly facilities for domestic market growth expected to be in the 25% to 30% per annum (actual achievement of 21% over the past five years). Combined Investments from these Automotive Manufacturers will exceed US$ 2 billion.

The response from Western and Domestic Automotive suppliers to Bodycote establishing the Pune facility has been very positive and supportive, also due to the close proximity to their Pune operations.

India’s combination of highly technical skills availability (over ½ million engineer graduates per annum), low costs, 70 million young and willing workforce, and more liberalized democratic government policies will transform the global economy and make this emerging market the third largest in 2025 behind the USA and China. This scenario was evidenced this week as TATA Steel Group purchased the Anglo-Dutch Corus Steel Group for US$ 8 billion making TATA the world’s number 5 steel maker. In the previous quarter, Mittal acquired Arcelor and they hold number 1 position overtaking the Japanese (Nippon Steel) and Chinese (Baosteel).

Bodycote Group will continue its strategic market expansion into the Indian market by adding 5 facilities by 2011 to further support the automotive, aerospace, power generation, bearings, tool & die, agricultural and construction.