Question-and-Answer Session
The first question will come from Ben Callow from the Stanford Group. Please proceed with your question.
Ben Callow- Stanford Group
Can you give us an estimate for the increase in demand for the UV systems? And then if you could give any color on what is driving the demand? And I think that in the past you have said that your market share is around 25%. Is that constant, or is it growing?
John Stanik
The question is becoming a little more complex to answer, Ben. What we have said in terms of Calgon Carbon results is that we expect our business to grow by at least 25% per year. That statement is not being changed at this point. The market for UV technology is growing. Primarily in the past it was one of drinking water disinfection and wastewater. Drinking water disinfection mostly being a North American market, and the wastewater being a global market. Over the past several quarters there are new developments that are opening up two additional markets. One we refer to as a ?taste and odor? market for drinking water that combines ultraviolet light technology with chemical oxidation to handle taste and odor. The second new one is of water re-use which is getting a lot of ink in the media. Those latter two are fairly new. Competition is limited for both of them, and we are rolling out and developing new products and new strategies to handle both of those.
Going back to the more established markets, we believe that we have a very solid market position in drinking water. I am not exactly sure what that percentage is. You mentioned 25%, and that may have been something mentioned in the past. We believe that we are not number one in the market, we believe that one of our competitors is, but we believe that we have a very solid position in that market. Regarding the glob al wastewater market we are gaining traction with our products, getting more contracts, we are becoming successful but we still hold on a global basis a very small market position.
The bottom line is I think that we still expect to grow that business by at least 25% per year. We grew it last year in 2007 by 35-37% . The company still has to make that commitment of developing new products for these other market opportunities that are opening up. That business potential is getting bigger and bigger and I think that is a very important characteristic to understand.
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