Addtech Energy & Equipment markets and sells battery solutions, products for power transmission and equipment and materials for production processes in industry. Customers come from the commercial vehicle industry, the energy and tele-coms sectors and the engineering industry. In 2008/2009 net revenues amounted to MSEK 888, which is equivalent to 20 percent of Addtech’s revenues.
Business
Addtech Energy & Equipment markets and sells battery solutions, power transmission products, and equipment and material for industrial production processes. Its customers are mainly in the energy and telecom sectors, the commer-cial vehicle industry and in engineering.
Examples of products are industrial batteries, electrical power products, production machinery and consumables. In addition to trading, this area’s companies also manufacture niche products under their own brands.
In close collaboration with customers and suppliers, standard components and solutions are adapted to add value, mainly in niches for battery solutions and power transmission products. Certain companies also offer aftermarket services such as training, maintenance and support, which generate long-term customer relationships and recurring revenue streams.
Customers and market
The Nordic countries constitute the business area’s main market. Sales are evenly distributed between OEM customers and the end-user segment. Customers primarily operate in the energy sector, telecom and the automotive industry. Sales outside the Nordic region account for 13 percent of revenue, and the most important non-Nordic markets are Poland and the Baltic States.
In the areas of batteries, electrical power products and transformers, Energy & Equipment’s companies hold leading market positions in niches with a stable demand for new purchases and aftermarket services. Important applications for batteries include medical technology equipment, specialised vehicles and telecom facilities.
The energy market is in an interesting development phase, in part following investments in infrastructure for power grids. Addtech sees, above all, the Baltic region as a highly attrac-tive market. Economies like Poland, Estonia, Latvia and Lithuania have grown fast, which has spurred investments in the electricity market. All these economies have been hit by the global economic crisis to a greater or lesser extent, and only time will tell when investments in new major infra-structure projects can be carried out.
Development
Addtech Energy & Equipment recorded an increase in both turnover and earnings during the financial year. However, the earnings trend varied within the various business units. Demand for products for power transmission, battery solutions for medical devices and telecom installations was both robust and stable during the year. However, the same was not true of the market for industrial battery solutions for the automotive industry and equipment and consumables for industrial production processes, which slumped during the third and fourth quarters after the rapid slowdown in the Nordic manufacturing industry.
During the financial year, the business area acquired SABP, a company which offers materials and equipment for power transmission. The acquisition is part of the business area’s growing focus on Energy Supply, which began three years ago. The new business unit organisation has resulted in salesfocused cooperation between the subsidiaries. One example of this is the creation by the Energy Storage business unit of a joint competence centre for battery technology, resulting in a number of business-oriented lithium-ion technology development projects.
Customers
ABB , Ahlsell, Atlet, BT Products, Ericsson, Onninen and
Sandvik.
Examples of competitors
G&L Beijer, Indutrade and OEM International.