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The market on which the FAM Group operates is currently experiencing extremely high prices of raw materials.
In order to diminish the influence of those factors, the Group is carrying out activities aimed at the Company’s expansion into new markets. Industrial diversification of consumers will enable to reduce the seasonal effect of production and mitigate the raw material risk, improve the operating margin achieved, as well as diminish the Group’s sensitivity to fluctuations in currency exchange rates.
The FAM Group’s major customers operate in the construction, hot-dip galvanizing, refrigeration, and technical textile industries. The Group is working towards embracing new industries with development potential, such as the automotive, electro-technical and white goods industries.
The construction industry is slowly starting to rebuild its pre-crisis pace of growth. Experts believe that after a period of stagnation and record low investments, industry has good prospects for the next few years. It is mostly due to improvement in the labor market, expected significant increase in incomes, remaining low interest rates and low level of market saturation. The number of completed houses has already reached its pre-crisis level. Representatives of the market expect the market growth of 3.4% and increase in sales of 3.5% in 2011.
Hot-dip galvanizing, which consists in coating steel with a thin zinc layer, is the most reliable and cost-effective means to prevent the corrosion of steel. It is used in cases of steel constructions and other steel parts. The corrosion resistance of steel that has been coated with a zinc layer is three times higher than that of steel, which has only been painted. As compared to the traditional painting, hot-dip galvanizing is also more economical. The zinc layer is more resistant to mechanical damage during transport.
Among the most often hot-dip galvanized products are fencing systems, parts of constructions, parts of mobile telephony base stations, parts of refrigeration and heating systems, and car trailer frames. Hot-dip galvanizing has become increasingly popular in such industries as the power, construction, bridges, road equipment-related and the refrigeration industry. The attractiveness of hot-dip galvanizing services and its good prospects for the following years are reflected in the consolidation of the industry, building of new plants and improvement of production capacities.