Focus on: Industrial Solutions

Industrial Solutions business area

Industrial Solution consists of nine strong specialist companies that develop and manufacture products and product systems in mainly polymer materials for a range of customer segments. These companies create business opportunities both individually and in cooperation with one another.

Industrial Solutions’ operations mainly focus on two customer sectors:

  • For the automotive sector, Industrial Solutions supplies advanced technical products.
  • For general industry, including segments such as hygiene, packaging, gardening/forestry and furniture, Nolato provides products such as components for chainsaws and a range of packaging solutions.
Customers in both of these sectors have continual and extensive purchasing operations, high volumes and long product runs.

 

A market with numerous customers and suppliers

Industrial Solutions is active on markets that are competitive, fragmented and constantly under significant pricing pressure. In addition, fluctuations in industrial activity have an impact on market performance.

The European market for the manufacture of polymer products consists of around 50,000 companies with combined sales of over SEK 500 billion. The majority are family-owned companies with a strong local connection and annual sales of SEK 20–35 million. Establishing a local presence is, in many respects, key for a global operator, both in building long-term, close customer relationships and because transporting  large volumes of bulky products is expensive.

The Nordic market is similarly fragmented and highly  competitive. In Sweden alone, where Industrial Solutions has its largest presence, there are over 700 manufacturers of polymer products, many of which are small with fewer than five employees. In view of Industrial Solutions’ capacity and expertise as an end-to-end provider and high-tech cooperation partner, however, there are only a small number on the Swedish market that can be regarded as competitors.

The main driver for the business area’s customers is being able to offer cost-effective high-quality products on their respective markets. There is a demand for end-to-end suppliers that offer capacity and expertise in integrated production processes, enabling higher added value for customers. Performance of the automotive industry on the Swedish market has been particularly favourable for Industrial Solutions, with customers like Scania and Volvo Cars, whose investment in new models is driving increased volumes.

 

Market position reflects customer needs and demands

Thanks to its in-depth expertise and experience, the business area has grown and adjusted its offering to the changing needs of the export industry. This means the market position reflects the needs and demands of customers, which Industrial Solutions encounters by being everything from a high-volume manufacturer of components to a high-tech solutions provider involved from development to delivery of a finished product to market.

Industrial Solutions has a leading position on the Swedish market. All eight of the business area’s units have strong and often leading positions on their respective markets. In Central Europe, Industrial Solutions also has a strong position as a quality supplier of products in the hygiene sector and precision components for domestic appliances. The establishment of production in the US during the year also provides good opportunities to start building a position on a new market for Industrial Solutions.

 

Strategy for sustained growth

Industrial Solutions’ objective is to be a leading high-tech supplier, providing development and production of products and product systems in polymer materials for customers in the automotive and general industry sectors. The business area’s strategic focus is based on growing faster than the market in all segments.

With the Nordic market as its base, Industrial Solutions aims to grow by developing existing customers and taking market share in these segments. Acquisition opportunities are continually considered as a complement to organic growth.

A key part of its strategy is also to establish Industrial Solutions as a high-tech partner to customers, which requires continued investment in advanced technology that contributes high added value and increased productivity for customers.

Lean manufacturing provides the basis for everything the Group does and helps it achieve its strategic objectives. For Industrial Solutions this involves ensuring things are well organised, that employees are enthusiastic and engaged, an increasingly high degree of integrated processes and automation, minimal warehousing and an aim to eliminate production defects.

Examples of products

 

motor fan

Automotive

Engine components, gaskets for engines and exhaust systems, interior details, battery casings, etc.

 

arm rest

General industry

Ball retainers and storage seals for ball bearings, armrests etc. for office chairs and fireproof cable ducts. Components for microwave ovens, components for strimmers and chainsaws (recoil housing, filler caps, air filter holders, etc.), flushing mechanisms for toilets and brew units for coffee machines.

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