Abrasives Manufacturing

Abrasives Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture coated and bonded abrasive products, including grinding wheels, sandpaper, and abrasive grains. Major companies include 3M (US), Huanghe Whirlwind (China), Noritake (Japan), Robert Bosch (Germany), Saint-Gobain (France), and Tyrolit (Austria).

COMPETITIVE LANDSCAPE

Demand for manufactured industrial products is the major driver of sales for abrasives. The profitability of individual companies depends on efficient operations, as many products are considered commodities. Large companies enjoy economies of scale in purchasing. Small companies can compete effectively by specializing in products for particular manufacturing functions. The US industry is highly concentrated: the 50 largest companies generate about 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Abrasive products are made of hard mineral grains and are used to manufacture products including metal, plastics, glass, and wood. Abrasives are used to?shape?materials through grinding;?smooth?surfaces during manufacture;?remove?surface layers of paint or corrosion;?cut?hard materials like concrete or steel; and?polish, buff or "lap" finished products. The two major types of abrasive products are coated and bonded. Main revenue sources come from nonmetallic coated abrasive products (45%), followed by nonmetallic abrasives (about 20%). Other products include aluminum oxide (15%) and metal abrasives (more than 10%).