Six questions for... Michael Herkommer

Michael Herkommer Vice President MDS and Managing Director Umicore Galvanotechnik GmbH

Interview: Robert Piterek

"Cost pressure and competition lead to thinner layers"

Which precious metal is currently deposited most frequently?

Silver, despite its relatively high price. In the case of gold, we are currently seeing a decline in the amount of gold deposited due to the high gold price, as a result of people switching to gold alternatives or saving gold, whether through higher selectivity or thinner layers.

What is your forecast for precious metal prices?

Precious metal prices for silver and gold have only risen over the course of the year and it is difficult to see an end in sight. In contrast, the price situation for platinum metals (Pt, Pd, Rh) has stabilized somewhat.

Are there currently any new developments in substitution layers?

Yes, nickel-phosphorus layers are increasingly being used as an alternative to palladium in technical applications. In addition, platinum is increasingly being used as a more cost-effective alternative to expensive rhodium layers in decorative applications such as jewelry and high-quality lifestyle articles. In addition, selectivity and the addition of non-precious metals in precious metal layers and the use of suitable intermediate layers are playing an increasingly important role in order to achieve the same or even better properties with a smaller amount of precious metal.

What are the prospects for precious metal electroplating?

Overall, the prospects remain good because we are active in several market segments and these are therefore balanced out. Of course, cost pressure and competition, particularly from Asia, are very high and are leading to precious metal layers being applied even more selectively and optimized and, where possible, even thinner. Continuous technical innovation, the highest quality standards and application expertise in order to offer our customers a lower "total cost of ownership" are therefore more necessary than ever in order to further expand our market position.

What purposes do precious metal coatings serve?

In the technical sector, the main applications for electroplated precious metal coatings are usually connectors and electronic contact surfaces. Here, the focus is particularly on high reliability of the final layer, i.e. the lowest possible wear, e.g. with high mating cycles with the lowest possible mating forces, low abrasion and low corrosion, in order to ensure long signal transmission with as little loss as possible. Precious metals also play an important role for bondable surfaces due to their high corrosion protection for the actual subsequent metal connection. Gold and silver surfaces continue to be used for reflective coatings, e.g. for laser components and LEDs.

There is talk of a decline in decorative electroplating. Can you confirm this?

Yes, the declining market for electroplated precious metal layers on jewelry is mainly visible in Germany and Europe. However, this is accompanied by a corresponding shift in jewelry production and finishing abroad, primarily to Asia, where we are also trying to serve these customers at important locations - together with our local specialist agencies. In addition, the decorative market is also becoming increasingly autonomous in terms of "Made in China", and Western fashion labels are conversely experiencing ever stronger headwinds in the Chinese market from local players who source exclusively from China. At the same time, the overall economic environment is currently rather conservative, resulting in a clear reluctance to buy. Historically, however, this market is also subject to cycles. We expect a recovery in the medium term.