Previous Statements by ASML
» ASML Holding's Management Present at the UBS Global Technology and Services Conference (Transcript)
» ASML Holdings Company Conference Presentation (Transcript)
» ASML Holding's Management Presents at Morgan Stanley 11th Annual Technology, Media & Telecoms Conference (Transcript)
We have seen some slight decrease in electronic demand in the third quarter I mentioned it in the fall and then we see continuation of that into the fourth quarter. But some recovery in that market already is certain segments like housing or connectors, printed wiring board continues to be relatively soft and we expect that they continue into Chinese New Year, which is relatively earlier this year into January and then expect in our discussions with the customers to see some improvement after that.With the growing demand especially for mercury removal and continued growth in electronics there is a need for additional capacity for bromine. And all three players have announced different stages of capacity expansion at different timing so really none coming before the later part of 2012. There are ways to add incremental capacity both Albemarle and Chemtura are located in Southern Arkansas their primary site. As we can drill more wells plenty of brine reserve and bromine in that brine reserve. In South Arkansas to add more capacity we may have to add additional towers to remove the bromine and columns other reactors to make the differentiated derivative. But that’s related to short-term when we can do that. The other opportunities are more strategic and for Albemarle talk about expanding the Jordanian venture for ICL pulling more out of the dead sea, if they can get agreement from Israeli government. And us with the announced Memorandum of Understanding around the joint venture and supply operation our alliance opportunity we’ve had in India. All are really pointed at trying to get lower cost sources of bromine just applied will be expected to be significantly growing demand due to mercury removal primarily. The second part of the question is around our markets and product lines what are we looking to grow is it organically, through M&A and what parts are more unappreciated market get to that talking about raw material price escalation, spread in financial question. I talked about the bromine demand pricing around bromine has been relatively strong certainly due to the tightness in the marketplace. Prices are probably at 50% since late 2008 and cost was probably up half that amount.
The price was 50 even in 2009 we saw in early 2009 we saw deterioration in the volume there really was not much to be gained by dropping price, there was no share to be achieved and so there is relatively strong discipline in the market, relatively sticky. We would expect that to be the bate, as we go through and we’ve seen it so far in this softening electronic market. So pricing is strong and sticky expectation of bromine in remaining tight as we chipped all well for pricing in the future of that market.Again mercury removal will be a big driver starting and as early as 2012 due to the tax credits in our mercury removal let’s say at the coal fired utility and then accelerating as the math rules that are put into place beginning 2014 theoretically unless delayed. We don’t expect delays in utility sector you may see delay because of the concern over jobs in the industrial segment but in the utility they will probably in act for the current schedule. I talked to you about expansion in the Great Lakes Solutions business through the Archean that’s the Indian joint venture. Businesses that we can grow they are really our key market areas that we are targeting transportation, electronic, energy and agriculture and a number of our businesses fit into that area. We are investing in additional capacity in those businesses and they will be a big part of our growth in 2012. These are areas where we are basically oversold at this point and the capacity needed just to be expected in current demand. Read the rest of this transcript for free on seekingalpha.com