TenCate Advanced Armour: outlook
Attracted by the market, which until 2011 had been flourishing, the number of players in the armour market was until very recently somewhat higher. Now, however, several of them have merged or have seen their position weakening. The reason for this is tremendous price pressure and the development of other cost-effective materials and processes.
Measures have been implemented within TenCate Advanced Armour relating to both cost control and product development. The market group is well positioned in the international armour market and, although sales of armour products are heavily dependent on government projects, expectations remain fundamentally positive in the longer term. A relatively modest addition of armour to the overall weight represents a significant increase in the level of protection. Materials for aerospace are expected to produce a growing revenue contribution and there is a similar outlook for structural armour composite. In the short term, however, profitability is depressed.
There is a growing tendency for vehicle OEMs to make ever more stringent demands; their requirements are now coming close to those of aircraft manufacturers.
Thanks to the aerospace background of TenCate Advanced Composites, TenCate also has a strong base for aerospace armour. In the light of the specifications, a completely new production hall was built for this purpose in Primarette in 2011.
For customers spurred on by the economic tide, price too is becoming an ever more crucial factor. In addition, the lifecycle of the product and the total cost of ownership will play an ever more important role. In the light of this TenCate Advanced Armour is planning to develop even more cost-effective products, also factoring in growth in the Middle East, Asia and the Pacific.