The Umicore group, thanks to its specialisations in very specific sectors of activity, could find itself in a quasi-monopoly situation in the years to come. It is therefore important to study market share trends sector by sector.
It will also be important to keep a close eye on developments in the automotive market, particularly as regards autocatalysts, which offer strong potential for expansion.
Of course, as Umicore is first and foremost an innovation-based technology company, we will be keeping a close eye on all of the company's investments in R&D projects that will make it possible to create new, highly profitable products or improve existing products by making them more efficient, particularly in solar cells and semiconductors, which are currently among the group's priority projects.
It will also be important to keep a close eye on the raw materials market as rising raw material costs could have a negative impact on Umicore's profitability. The same applies to interest rates, any rise in which could also weigh heavily on the Group's profitability.
Also in the context of monitoring Umicore's profitability, the level of labour and technical costs will need to be monitored in the coming years.
Finally, the global economic situation will of course also have an undeniable influence on the level of demand.
The Belgium group Umicore is actually one of the great specialists in the sector of materials technology and their recycling. In fact, it is above all well known for its zinc based products but also concentrates its expertise in specialised areas such as materials science, the chemistry of materials, and metal working which of course distinguishes this company from its competitors. To better understand the group’s core activities it can be useful to know how its activities can be separated into the following three major sectors:
Of course and as you have undoubtedly noted, each of these three large segments can itself be divided into different sub-categories according to the related materials. These smaller categories enable Umicore to offer their clients highly technological solutions that are truly necessary for them and respond perfectly to their requirements.
However Umicore is also a group that has invested heavily in research and innovation, notably in the green technologies sector which is currently experiencing a surge in growth. It has notably concentrated its efforts in the catalyst sector for controlling emissions, materials for the production of rechargeable batteries, and the recycling of materials. Due to this strategy Umicore is endeavouring to position itself as leader in the development, production, and recycling of materials.
From a geographical point of view Umicore is particularly well developed internationally with its industrial activities that are spread over different continents and a clientele that also extends worldwide.
Photo credits: ©piter2121/123RF.COM
Umicore is currently the world market leader in its activity sector and notably that relating to the production and processing of zinc. But of course, it is not the only specialist in this sector and therefore faces stiff competition from other companies based around the world and especially those in Europe. To assist you in completing a comprehensive examination of the competition in this activity sector we offer you the opportunity now to learn about Umicore’s principal competitors in terms of turnover classified in order from the largest to the smallest:
To keep its place as leader and remain at the heart of its activity sector worldwide Umicore relies heavily on the implementation of partnerships and strategic alliances with other major companies. We will now provide details on a few of these more recent strategic alliances so you can better understand their significance.
In 2006 for example, the Umicore Group became associated with the chemicals giant Solvay through the creation of a joint company named SolviCore that has since formed a significant client portfolio. Through this joint venture the two companies combined their knowledge to create an innovative technology for the assembly of the membrane and electrodes that have been used ever since in the production of combustible batteries and membrane electrolysis. This joint venture, previously held 50/50 by Solvay and Umicore, has since been sold to the Japanese chemical group Toray.
In 2012 the Umicore Group signed a major partnership agreement with the Toyota automobile manufacturer. Through this collaboration Umicore entered into the specialised sector of recycling technologies relating to the Li-on batteries that were used in numerous hybrid Toyota vehicles.
To conclude, more recently, in 2017 to be precise, Umicore became associated with Mahindra Racing for a partnership of initially three years relating to the FIA Formula E Championship. The technologies from these two companies were highlighted by boosting the performances of the electric cars in this competition through alternative energy resources and the use of recycled materials with the batteries. It should be remembered that this type of racing is very popular as it promotes participating technological companies that benefit from a type of trampoline in the form of a significant showcase to enable them to become better known worldwide.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.
This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
