No. 11/e
January 2006


CERAMITEC 2006 Shows the Trends in the Powder Metallurgy Industry

� Extremely varied application areas for powder metallurgy (PM) components
� Two-figure growth in this innovative industry in 2005
� Substantial upward pressure on costs due to increased prices for raw
  materials and energy


Powder-metallurgical components are becoming increasingly popular in many areas
of technology, especially thanks to their cost effectiveness and functional
flexibility. PM components are characterized by a high degree of shape
preciseness � this can often be achieved without reworking for complex
geometric shapes � a large range of very different varieties of alloys as well
as a wide range of thicknesses from extremely porous to high density.

Numerous new PM components have been developed for industry branches such as
automobile, aerospace, mechanical engineering and electronics over the past
decade. This include, for example, high density and high-tensile sintered parts
made of iron and steel, oil-containing porous bearings, sintered filters,
friction materials, highly complex injection molded parts (MIM), sintered hard
metal for cutting tools and wear parts with additional hard material layers,
ultra-hard diamond tools as well as PM semifinished products such as high-speed
steel-heavy metals, super alloys and coated diamond tools for circuit paths.

Powdered metal injection molding has especially become more widespread over the
past years. Increase rates of more than 10 percent per year are realistic for
it. The
threshold of one billion euros in sales was surpassed long ago. Manufacturing
of high-performance components made of aluminum with PM technologies is also
increasing. Engineers value the good properties of this material and the
measurement and shape preciseness of PM parts on an aluminum basis.

The area of magnets produced using powder metallurgy (e.g., rare earth magnets
on the basis of neodymium-iron-boron [Nd-Fe-B]) also continues to grow.
Especially these materials have resulted in many improvements in the areas of
communication technology, control processes, drive technology, vehicle
manufacturing, metrology and medical diagnostics.

All of these applications have contributed to powder metallurgy�s growth
contrary to the trend in other technology sectors. Two-figure growth rates in
many areas speak in favor of this highly innovative industry with a future.
Annual global production of powder-metallurgical products (excluding ceramics)
exceeds 30 billion euros. Hard metals have the greatest share of this with
approx. 14 billion euros. PM parts on an iron basis are produced for more than
six billion euros worldwide, approximately one-fourth of which in Europe.
Germany has approximately a 29 percent share in the European market for
iron-base PM parts. Compared to the market leader USA (40 percent market
share), especially the Asian markets have grown strongly over the past three
years (approx. 33 percent market share).

The PM industry is facing substantial upward pressure on prices given the
drastic price increases for raw materials and energy since 2004. Based on the
level of the first quarter 2004, raw material prices increased by approx. 15
percent for low-alloy powder and up to 50 percent for high-alloy powder.
Further price increases for powder of up to 10 percent are expected in 2006.

Price increases for gas (plus 30 percent) and electricity (plus 25 percent) can
be expected in the area of energy costs for 2006. �The development in the
markets for raw materials and energy represents a real threat for companies
involved in powder metallurgy,� according to the Chairperson of the Powder
Metallurgy Trade Association, Mr. Heinz-Joachim Mäurer. �Our production methods
and workflows are already very efficient. We cannot cushion the impact of these
renewed cost increases as component suppliers anymore. We have to have
meaningful discussions with our customers about this. At the same time, we will
continue to remain a reliable partner

with high-quality, innovative solutions� �CERAMITEC 2006 provides an ideal
business platform to bring together decision-makers and customers for such a
dialog,� Eugen Egetenmeir, member of the Messe München Executive Board, stated.


The Powder Metallurgy Trade Association is going to exhibit the wide range of
parts produced using powder metallurgy on an iron-base and a hard metal base at
CERAMITEC 2006, 10th International Trade Fair for Machinery, Equipment, Plant,
Processes and Raw Materials for Ceramics and Powder Metallurgy. CERAMITEC 2006
will take place from May 16 to 19. Additional information and current press
releases are available at www.ceramitec.de.


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About CERAMITEC
CERAMITEC, 10th International Trade Fair for Machinery, Equipment, Plant,
Processes and Raw Materials for CERAMICS and POWDER METALLURGY, will take place
on the grounds of the New Munich Trade Fair Centre from May 16 to 19, 2006.
CERAMITEC has developed into the world�s leading trade fair for the ceramic
industry since its premier in 1974. The comprehensive supporting program
provides an ideal overview of current trends and innovations in the ceramic
market. Approximately 765 exhibitors from 41 countries and 25,000 visitors from
106 countries came in 2003. Exhibitor and visitor figures for CERAMITEC are
checked by an independent auditor contracted by the Gesellschaft zur
Freiwilligen Kontrolle von Messe- und Ausstellungszahlen (Society for Voluntary
Control of Fair and Exhibition Statistics).


About Messe München International (MMI)
Messe München International (MMI, Munich Trade Fairs International Group) is
one of the world´s leading trade-fair companies. It organises around 40 trade
fairs for capital and consumer goods, and key high-tech industries. Each year
over 30,000 exhibitors from more than 100 countries, and over two million
visitors from more than 200 countries take part in the events in Munich. In
addition, MMI organises trade fairs in Asia, Russia, the Middle East and South
America. With four subsidiaries abroad and with 62 foreign representatives
serving 86 countries, MMI has a truly global network.


Contact for journalists
Merle Hirsch, CERAMITEC 2006 Communications Manager
Tel. (+49 89) 9 49-2 02 47
Fax (+49 89) 9 49-2 02 49
Merle.hirsch@messe-muenchen.de
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