Dürr is one of the world's leading suppliers of systems, services and products mainly for the car making industry. We achieve more than 80% of our sales in the automotive business. We also supply equipment to the aviation industry, the machinery industry, and to the chemical, pharmaceutical and printing industries. About 55% of our activities are in plant engineering, 45% are in the machinery industry.
Dürr is represented in 23 countries at 52 business locations (thereof 33 with production facilities). The Dürr Group operates in the market with four divisions: Paint and Assembly Systems plans and builds paintshops and final assembly systems for the automobile and aircraft industries. Application Technology provides automated paint application, sealing, and glueing with its robot technologies. Machinery and systems from the Measuring and Process Systems division are used for balancing and cleaning in engine and transmission manufacturing as well as in final vehicle assembly, among other areas. The fourth division, Clean Technology Systems, specializes in processes to improve energy efficiency and exhaust air purification. Besides a few global competitors there are some competitors in local markets.
Production depth within the Dürr Group of about 25% altogether is relatively low. As a result, Dürr can react more flexibly in a economic downturn, and has a smaller business risk than companies with a high production depth. Dürr achieves typically high ROCE-margins due to its business model as an emerging company. Due to Dürr's global standing and the high share of added value in local markets, the influence of exchange rates is small.
Dürr depends on the long-term capital spending behavior of the automotive industry. In the longer term, the capital spending behavior of Dürr's customers follows the development of production and sales worldwide. The market environment in the automotive industry is currently assessed very positively, with long-term global rates of 5%. Growth is driven by the emerging markets; with China in the lead. The share of the emerging markets in Dürr's incoming orders of about 55% is very high.
We took our corporate strategy further forward in 2010 under the heading "Dürr 2015". Our strategy is centered on two overarching goals: profitable growth and the continuous optimization of our processes and structures. We are focusing on five drivers to achieve our growth targets: expansion in the emerging markets, innovation, development of our service business, open up new areas of business through acquisitions and developing the division Clean Technology Systems. We aim to increase sales revenues at an average rate of 5 to 10% in the coming years.
Further expansion in the emerging markets
We are systematically expanding our leading competitive position in the emerging markets. The number of employees is to be increased in these markets to about 35% by the year 2015, after it was 14% in 2005. We also intend to further increase local content in the areas of engineering, purchasing, and production. This will be driven both by local growth and by exports to established markets. Our continued target is for half of the Group’s incoming orders and sales to come from the emerging markets.
We will continue to increase our R&D spending going forward. Our innovation management remains focused on increasing the flexibility and optimizing the energy efficiency of our products and systems. We have higher R&D budgets than smaller competitors, and can bring new technologies to market faster and in greater numbers. Dürr’s strategy also includes selective acquisitions to round out our technology portfolio.
Development of new areas of business
We are leveraging our engineering and product know-how selectively in order to expand into new areas of business that are technologically related to our core business. Our competence in realizing energy-saving manufacturing processes is an increasingly important driver. We want to make acquisitions in the engineering business as well as in the environmental technology and in particular in the energy efficiency technology.