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24 Business performance Product revenue in the Materials Technology business group fell to €1,145.2 million in 2014, down by 12.7 per- cent on the previous year. Adjusted for the effects of changes in precious metal prices, the year-on-year decline in revenue was 6.2 percent. In addition to the persistently challenging economic conditions in a number of markets, this business group’s business and earnings performance was also negatively affected by relocation projects. The business with bonding wires for the semiconductor and automotive industries was shaped by the ongoing trend toward substituting precious metal products with cheaper products that contain no precious metals. In 2014, it became clear that there were overcapacities on the manufacturer side, which resulted in a signifi- cant fall in price. The Materials Technology business group responded to the recent market developments and strengthened its competitive position by opening a new production site in Malaysia. Revenue from sinter pastes and solder materials grew very positively in a sluggish market, mainly because of the optimization of factor inputs that has been carried out in recent years. Thanks to the new production site in Romania that was brought on stream last year, Heraeus now has the capacities that are required to make further advances in this business. The relocation to China of the manufacturing of refrac- tory metal products for the light industry – a project that started in 2013 – was successfully completed last year. This has laid the foundation for developing the business in a fiercely competitive market. The business with sputtering targets for the hard drive, display, photovoltaics, and semiconductor industries performed unevenly, in line with the sales markets, and overall fell short of expectations. Manufacturers of hard drives came under intense price pressure in 2014 because of the advancing substitution of hard drives. The business group responded to this development by moving produc- tion from the USA to Singapore. The relocation project had a negative impact on business and earnings in 2014, but had been brought to a successful conclusion by the end of the year. A substantial part of earnings last year was generated within the automotive industry from the business with platinum sensors. The upward trend continued, driven by the Euro 6 emissions standard for cars, resulting in record production volumes that greatly exceeded the forecast. Materials Technology business group Heraeus Materials Technology The Materials and Technologies business group (Heraeus Materials Technology) develops and manufactures high-tech industrial products using precious metals, such as gold, silver, and platinum-group metals, as well as high-melting-point, non-precious refractory metals. Based on a broad portfolio of technologies and deep added value, Heraeus Materials Technology is a skilled partner for processing these precious metals and other innovative materials. As a technology leader with decades of experience and facilities around the world, this business group is a leading provider in many key markets. Product revenue € million 2014 2013 2012 2011 2010 1,311.6 1,145.2 1,599.5 1,645.3 1,501.2