Frost & Sullivan: New Investments in Automotive and Construction Step up the Demand for Welding Consumables in Europe

LONDON, June 15, 2010 - The European welding consumables market has been on the road to recovery
this year, after the economic downturn. Increasing installations of wind
turbines in Spain, Germany, France, Italy and the United Kingdom will
continue, stepping-up the demand for wires and electrodes. There will be
greater investments in automotive and construction in the long term, boosting
the demand for welding consumables.

(Logo: photos.prnewswire.com/prnh/20081117/FSLOGO)

New analysis from Frost & Sullivan
(www.industrialautomation.frost.com), Strategic Analysis of European
Welding Consumables Market, finds that the market earned revenues of US$983.4
million in 2009 and estimates this to reach US$1,139.5 million in 2016. The
welding products covered in this research service are stick electrodes, solid
wires, flux-cored wires, and submerged arc welding (SAW) wires and fluxes.

"Consumption of steel is expected to rise due to the restocking of
depleted inventories along with the new demand spurred by the energy and
automotive sectors," says Frost & Sullivan Senior Research Analyst Archana
Chauhan. "This increase indicates a spurt in welding activities and thereby a
rise in the demand for the welding consumables."

However, the spectrum of competition in this market ranges from the
highly competitive markets, where there are many sellers and each has little
or no control over the product price, to fairly less competitive for niche
consumables. Therefore, there is a lack of product differentiation.
Additionally, increasing customer service requirements pose a major challenge
for European welding manufacturers. Customer satisfaction is essential in
building long-term, profitable relationships, which lead to customer loyalty
and repeat business.

"With escalating raw material prices, competition from Asian
manufacturers, and low profit margins, several manufacturers are unable to
provide effective customer services such as efficient packaging, after-sales
service, and expert guidance to their customers," explains Ms Chauhan.

Welding consumables manufacturers can differentiate themselves and
increase their profit margins by providing rapid and on-time delivery, higher
alloys of consumables that present higher productivity, better packaging and
marketing, and a reduced average production cost.

"A one-stop-shop for all the welding needs can be one of the key
strategies to drive the growth and penetration of welding companies,"
concludes Ms Chauhan.

If you are interested in receiving an Executive Summary of this study,
please send an e-mail to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title, and
contact details.

Strategic Analysis of European Welding Consumables Market is part of the
Industrial Automation & Process Control Growth Partnership Services
programme, which also includes research in the following markets: European
Welding Consumables Market, Indonesian Welding Equipment and Consumables
Market, Global Welding Market for Automotive Applications, Asian Resistance
Welding Equipment and Consumables Market, and Global Welding Automation
Market. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

    Strategic Analysis of European Welding Consumables Market
    M548-10

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

www.frost.com

Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com