The energy market served by Oerlikon is approximately CHF 2.5 billion, of which power generation contributes CHF 530 million and oil & gas & mining accounts for CHF 2 billion. Power generation has been stable in the near-term. Over the long term, it has good prospects driven largely by investments in distributed-power installations and the shift to alternative energy. The replacement of aging equipment with more energy efficient, environmentally compliant industrial gas turbine engines, and the gas turbine maintenance, repair and overhaul market, are especially promising factors for power generation. The oil & gas sector has been hurt by depressed energy prices, leading to reduced spending on exploration and production. The oil market saw the beginning of a slow recovery at the end of 2016, which is expected to continue in 2017, while prospects for long-term growth in natural gas as a fossil fuel remain strong. The mining sector was and is expected to stay under pressure.
In 2016, the energy sector contributed 7 % of sales in the Surface Solutions Segment, and 6 % of sales in the Drive Systems Segment.
Oerlikon’s innovative coatings enable turbines, hydroelectric plants and drilling equipment to withstand extreme temperature, pressure and friction. Oerlikon Balzers’ BALINIT coatings and heat treatment solutions help prevent wear in steam and wind turbine blades. Oerlikon Metco’s surface solutions are essential in turbine blades, and for valves, riser systems and blowout preventers used in oil and gas exploration. Oerlikon Metco is working closely with original equipment manufacturers in the power generation sector on tailored materials and advanced equipment technology (cascaded plasma) to achieve efficiency gains. The Drive Systems Segment technologies are mainly adopted in the oil & gas and mining sectors, such as gears and drives for mud and fracking pumps, marine winches, hoists and jack-up rigs.