DIFFERENTIATED PRODUCTS
08
27.4
07
30.0
06
32.1
05
27.1
04
26.1
18
James Hardie Annual Report 2008
Research and Development
Expenditure1
(Millions of US dollars)
1
Research and development expenditure
includes US GAAP research and development
expenses and amounts classified as selling,
general and administrative expense under
US GAAP in the amounts of US$0.1 million,
US$4.1 million, US$3.4 million, US$5.5
million and US$3.5 million for the years
ended 31 March 2008, 2007, 2006, 2005,
and 2004, respectively.
We have Research and Development
Centres in Sydney, Australia and Fontana,
California, where we employ over one
hundred scientists, engineers and
technicians in Core Research and Product
& Process Development. Over 50% of our
scientists have advanced degrees and 45%
have worked for James Hardie for longer
than five years.
In North America, in fiscal year 2008:
+ We launched Artisan® Lap siding, a “next
generation” siding product in our Southern
and Western Divisions. This product is
already successful in Australia and New
Zealand where it is sold as Scyon™ Linea™
weatherboards and Linea™ weatherboards
respectively. Its combination of timberlike aesthetics and durable low density
has been well-received by homeowners,
architects, developers and builders who
work in the custom home segment.
+ We increased sales of our higher-priced,
differentiated ColorPlus® collection of
products increased, despite the falls in
the housing market, due to the superior
performance and durability which enable
continued substitution for vinyl. We now
offer our customers a choice of 20 colours
and an interactive on-line James Hardie
Design Centre where they can test colour
and product combinations on their style
of house.
In Asia Pacific, in fiscal year 2008:
+ We saw increasing enthusiasm in
Australia for our Scyon™ branded range of
differentiated products - Scyon™ Linea™
weatherboards, Scyon™ Secura™ wet
area flooring, a thick, easy-to-use flooring
for interior wet areas; Scyon™ Matrix™
cladding, contributing to contemporary
architectural design; Scyon™ Axon™
cladding, with a sleek vertical design; and
Scyon™ Axent™ trim, a finishing touch for
edges and corners. Scyon™ product sales
increased 150% on the prior fiscal year.
+ We also saw continued sales growth for
Axon™ panel for external cladding and
Linea™ weatherboards in New Zealand.
The differentiated products we create by
re-investing in products and processes,
allow our customers, in turn, to differentiate
their own products or homes.
James Hardie Annual Report 2008
In fiscal year 2008, we spent US$27.4
million – or approximately in 1.9% of total
net sales – in research and development
activities.
+ We introduced HardieWrap™ weather
barrier in Georgia and North and South
Carolina. HardieWrap weather barrier
uses a proprietary MicroTech™ coating to
prevent water from entering the home, while
allowing the home to dry out and breathe.
When used in conjunction with our fibre
cement siding products, the HardieWrap
weather barrier provides a complete,
more advanced weather-resistant building
envelope to maximise protection against
the elements.
19
Products
This year we again increased sales of
the differentiated products that are at the
core of our growth strategy. The success
of these products, and the cost-efficient
manufacturing capacity and proprietary
processes we use to create them, are the
result of our significant investments in
research and product, process and market
development.