The safety division develops, produces and markets products, system solutions and services for personal protection, gas detection technology and integrated hazard management. Its customers come from industry, mining and public sectors such as fire departments, police and disaster protection. The portfolio includes stationary and mobile gas detection systems, personal protective equipment, professional diving systems, alcohol and drug testing devices, a varied range of training and services and also projects such as entire fire training systems.

Of the 4,409 people employed by the division worldwide (December 31, 2010), 49 percent work in Sales, Marketing and Service, 37 percent in Production, Quality Assurance, Logistics and Purchasing, 6 percent in Research & Development, and 8 percent in Administration.

The safety division has production sites in Germany (Lübeck and Hagen), Great Britain (Blyth and Plymouth), the Czech Republic (Chomutov) and Sweden (Svenljunga) as well as Brazil (São Paulo), the US (Pittsburgh), China (Beijing) and South Africa (King William’s Town).

The division is represented in around 100 countries on all continents and has sales and service subsidiaries in over 30 countries.

Demand in the safety technology markets increased again after stagnating in the previous year. Strong growth of the German economy revived demand accordingly, among industrial customers and public authorities alike. In South Europe, on the other hand, the market continued to stagnate as a result of the financial crisis. The situation in the US leveled out again at pre-crisis levels after industry inventories were stockpiled during the course of 2010. Public authority customers started placing an increasing number of orders again. In Asia, especially China and India developed a lot of momentum and were the main drivers of a stable market development. The expansion of the industrial value added chain in the quickly growing emerging markets drove demand in industries such as the steel and chemical sectors. Globally, demand rose the most in countries with the strongest GDP growth, i.e. China, India and Brazil. Due to the economic development as well as rising living standards in these countries, investments were made in their infrastructures and their fire fighting services and police forces. The consolidation of suppliers, which has been going on for some years now, continued in 2010.

Dräger expects restrained positive developments in the safety technology markets for 2011. The cautious expectations are based on continued high and fluctuating raw material prices as well as the ongoing global economic and financial risks, among other factors. Since the current situation differs widely between regions, developments in the customer segments of the safety division are also expected to be inconsistent.

The steel trade association expects an increase in global demand for 2011, driven by consumption in the emerging Asian countries. Even though it is not expected to reach the pre-crisis level in 2011, the recovery of the steel industry in Germany and the US should continue. The umbrella association of the electrical engineering and electronics industry expects growth of 4 percent for the industrialized countries while the emerging and developing countries should grow by 10 percent and 8 percent respectively. The chemical industry association has expressed similar expectations. Due to the limited growth opportunities of the industrialized countries, it expects slower growth in Germany. The petrochemical industry is facing the possibility of consolidation. This is based on falling demand for oil products as more fuel-efficient engines and heating systems are implemented in the industrialized countries. Refinery capacities are no longer fully utilized so that closures appear likely if demand remains flat. The Financial Times Deutschland is predicting that refineries in Asia will supply the European market in the future. According to a statement released by Business Monitor International, this also applies to the US where a significant reduction in capacity is expected by 2015. A long-term market shift to the emerging and developing countries in Asia is therefore expected for Dräger in this customer segment.

Dräger expects global demand for fire fighting equipment to stagnate, although with regional differences. With a volume of USD 390 million in government subsidy programs for rescue organizations and fire departments up to the end of 2011, the US has reduced investments in 2010 compared to average spending over the previous years. The development and expansion of the fire fighting services in China continues, albeit at a lower level compared to the US. Stable demand is expected in the saturated environment of Germany.

The overall outlook for the markets in the industry mix is positive, with differences by customer segments.