Addtech Components markets and sells components and subsystems in mechanics, electromechanics and hydraulics to customers in manufacturing. In 2010/2011 net revenues amounted to MSEK 1,128, which is equivalent to 26 percent of Addtech’s revenues.
Business
Addtech Components markets and sells components and sub-systems in mechanics, electromechanics and hydraulics to customers in the Nordic manufacturing industry.
Components focuses on traditional technology trading, based on suppliers’ range of components. Customisation is a major part of the business area’s operations and is conducted in close cooperation with customers and suppliers. Companies within the business area constantly aim to increase the value added by their offering. The subsidiaries provide solutions – which may consist of combinations of components and sub-systems– to meet customers’ more complex needs.
Long-term relationships with leading international suppliers are important for success and are thus a priority. The business area endeavours to further develop and broaden the sub-sidiaries’ agency operations, for example by acting as a distributor for the same supplier in as many Nordic countries as possible.
Examples of products in mechanics and electromechanics are linear units, ball screws, electric motors, switches, sensors and transducers. The hydraulics section – which also includes pneumatics, vacuum and compressed air products – sells components and solutions such as valves, pumps, installations and filters.
Country-based business units
Unlike Addtech’s other business areas, Components is organised in business units based on national markets. This is because Components’ agency companies are based in each country, which means that the solid local base and expertise are critical factors for success. These country-based business units give Addtech a better focus on the conditions and oppor-tunities of each geographical market, which in turn paves the way for cross-sales and other joint ventures between subsidiaries.
Customers and market
The Nordic countries constitute the business area’s main market. About 90 percent of sales go to Nordic OEM customers, mainly export-oriented manufacturing companies in the engi-neering, energy, medical technology and special vehicles industry.
Customers include manufacturers of forestry machinery, advanced medical equipment and wind turbines.
Subsidiaries’ sales are often based on standard components, but also include a significant proportion of customisation. Customised solutions currently account for more than half of the business area’s revenue.
Examples of customers
Tetra Pak, Danfoss, Metso, ABB , BT Products and Gambro.
Examples of competitors
Indutrade, OEM International and PMC Group.
Development
The year started with a substantial recovery in terms of demand for production components from Nordic manufacturing companies,primarily in the vehicle and engineering industry segments. Demand from other customer segments such as medical technology and manufacturers of special machinery remained at stable levels. Demand grew stronger in the second half of the year from the machinery manufacturers and mobile hydraulics customer segments. During the year, the operations in different countries have been in different phases of the economic cycle, resulting in wide variations from one country to the next.
The Swedish operations acted as the locomotive during the first three quarters, but demand subsequently levelled off slightly. In the third quarter, the business climate substantially improved in Finland – an improvement that lasted for the rest of the year. Throughout the year, the Danish market recovered slowly from the recession. In Norway the business
climate was very varied during the year: a very vigorous start was followed by clear stagnation and then stabilisation at the end of the year.